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February 24, 2022

Invitae Reports $460.4 Million in Annual Revenue Driven by 1.17 Million in Billable Volume in 2021

-- Annual revenue grew by 65 percent and annual billable volume by 77 percent year over year --
-- Full-year 2022 revenue growth guidance of 40 percent to approximately $640 million --
-- Guiding to expansion of gross margin throughout 2022 and decreasing cash burn charting path to positive cash flows --
-- Conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time --

SAN FRANCISCO, Feb. 24, 2022 /PRNewswire/ -- Invitae (NYSE: NVTA), a leading medical genetics company, today announced financial and operating results for the fourth quarter and year ended December 31, 2021.

"2021 was another year of industry leading growth and the addition of almost 1 million patients onto the Invitae platform, providing further evidence that the Invitae vision and one-of-a-kind testing, digital health and data network are ushering in the era of genomic health management," said Sean George, Ph.D., co-founder and CEO of Invitae. "Looking into 2022, we intend to maintain our focus on driving that shift to a healthcare ecosystem underscored by genomic information and management, while demonstrating operational excellence and charting a clear path towards operating cash flows."

Full Year and Fourth Quarter 2021 Financial Results

  • Generated revenue of $460.4 million in 2021, including $126.1 million in the fourth quarter.
  • Reported billable volume of 1.17 million in 2021, including 327,000 in the fourth quarter.
  • Total active healthcare provider accounts in 2021 totaled 18,458, more than 50 percent growth since the beginning of 2020.
  • Active pharma and commercial partnerships grew to 178, an increase of approximately 170 percent since the beginning of 2020 driving continued revenue growth from Invitae's data and data services platform to pharma, health system and software and services partners.
  • Total patient population is more than 2.5 million with over 62 percent available for data sharing.
  • Achieved gross profit of $111.8 million in 2021, including $30.0 million in the fourth quarter. Non-GAAP gross profit was $168.4 million in 2021, and $46.0 million in the fourth quarter.

Total operating expense, which excludes cost of revenue, for the full year 2021 was $503.4 million. Operating expense for the fourth quarter of 2021 was $244.6 million. Non-GAAP operating expense was $771.1 million for the full year 2021, and $215.7 million in the fourth quarter.

Net loss for the full year 2021 was $379.0 million, or a $1.80 net loss per share. For the fourth quarter of 2021, Invitae reported a net loss of $205.1 million, or a $0.90 net loss per share. Non-GAAP net loss was $654.3 million, or a $3.10 non-GAAP net loss per share in 2021. For the fourth quarter of 2021, Invitae reported a non-GAAP net loss of $184.7 million, or a $0.81 non-GAAP net loss per share.

At December 31, 2021, cash, cash equivalents, restricted cash and marketable securities totaled $1.06 billion as compared with $1.25 billion as of September 30, 2021. Net increase in cash, cash equivalents, restricted cash, and marketable securities was $695 million in 2021, and a net decrease of $196.7 million for the fourth quarter. Cash burn was $195.6 million in the fourth quarter of 2021. Cash burn for the quarter would have been $186.1 million excluding the cash paid for acquisitions.

Guidance 
The company has issued 2022 annual revenue guidance of year-over-year revenue growth of 40 percent, or approximately $640 million. New guidance categories for 2022 include gross margin and cash burn measures. Gross margin for 2022 is expected to be between 42-45 percent with cash burn, including cash used for acquisition-related activities, expected to be in the range of $600-$650 million in 2022, a more than $200 million year-over-year reduction.

Webcast and Conference Call Details 
Management will host a conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial results and recent developments. To access the conference call, please register at the link below:

https://conferencingportals.com/event/DqFqYhVe 

Upon registering, each participant will be provided with call details and a conference ID.

The live webcast of the call and slide deck may be accessed here or by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the company's website.

About Invitae 
Invitae Corporation (NYSE: NVTA) is a leading medical genetics company whose mission is to bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people. Invitae's goal is to aggregate the world's genetic tests into a single service with higher quality, faster turnaround time, and lower prices. For more information, visit the company's website at invitae.com.

Safe Harbor Statements 
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company's beliefs regarding its vision and that its results evidence its belief that it is ushering in the era of genomic health management; the company's future financial and operating results, including guidance for 2022, and the drivers of future financial results; the company's beliefs regarding the momentum in its business and the drivers of that momentum; the company's expectations regarding future growth; the company's focus for 2022, and its expectations regarding charting a path toward future operating cash flows; expectations regarding future product introductions and expansions; and the impact and benefits of the company's acquisitions, partnerships and product offerings. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the impact of COVID-19 on the company, and the effectiveness of the efforts it has taken or may take in the future in response thereto; the impact of inflation; the company's ability to continue to grow its business, including internationally; the company's history of losses; the company's ability to compete; the company's failure to manage growth effectively; the company's need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the ability of the company to obtain regulatory approval for its tests; the applicability of clinical results to actual outcomes; the company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; risks associated with litigation; the company's ability to use rapidly changing genetic data to interpret test results accurately and consistently; security breaches, loss of data and other disruptions; laws and regulations applicable to the company's business; and the other risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021. These forward-looking statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.

Non-GAAP financial measures 
To supplement Invitae's consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP), the company is providing several non-GAAP measures, including non-GAAP gross profit, non-GAAP cost of revenue, non-GAAP operating expense, including non-GAAP research and development, non-GAAP selling and marketing, non-GAAP general and administrative and non-GAAP other income (expense), net, as well as non-GAAP net loss and non-GAAP net loss per share and non-GAAP cash burn. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies. Management believes these non-GAAP financial measures are useful to investors in evaluating the company's ongoing operating results and trends.

Management is excluding from some or all of its non-GAAP operating results (1) amortization of acquired intangible assets, (2) acquisition-related stock-based compensation, (3) post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's acquisitions, (4) adjustments to the fair value of acquisition-related assets and/or liabilities, including contingent consideration and (5) acquisition-related income tax benefits. These non-GAAP financial measures are limited in value because they exclude certain items that may have a material impact on the reported financial results. Management accounts for this limitation by analyzing results on a GAAP basis as well as a non-GAAP basis and also by providing GAAP measures in the company's public disclosures.

Cash burn excludes (1) changes in marketable securities, (2) cash received from equity or debt financings and (3) cash received from exercises of warrants. Management believes cash burn is a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business. A limitation of using this non-GAAP measure is that cash burn does not represent the total change in cash, cash equivalents, and restricted cash for the period because it excludes cash provided by or used for other operating, investing or financing activities. Management accounts for this limitation by providing information about the company's operating, investing and financing activities in the statements of cash flows in the consolidated financial statements in the company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by presenting net cash provided by (used in) operating, investing and financing activities as well as the net increase or decrease in cash, cash equivalents and restricted cash in its reconciliation of cash burn.

In addition, other companies, including companies in the same industry, may not use the same non-GAAP measures or may calculate these metrics in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP measures as comparative measures. Because of these limitations, the company's non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the non-GAAP reconciliations provided in the tables below.


 

INVITAE CORPORATION


Consolidated Balance Sheets

(in thousands)

(unaudited)



December 31,


2021


2020

Assets




Current assets:




Cash and cash equivalents

$         923,250


$         124,794

Marketable securities

122,121


229,186

Accounts receivable

66,227


47,722

Inventory

33,516


32,030

Prepaid expenses and other current assets

33,691


20,200

Total current assets

1,178,805


453,932

Property and equipment, net

114,714


66,102

Operating lease assets

121,169


45,109

Restricted cash

10,275


6,686

Intangible assets, net

1,187,994


981,845

Goodwill

2,283,059


1,863,623

Other assets

23,551


13,188

Total assets

$      4,919,567


$      3,430,485

Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$           21,127


$           25,203

Accrued liabilities

106,453


86,058

Operating lease obligation

12,359


8,789

Finance lease obligation

4,156


1,695

Total current liabilities

144,095


121,745

Operating lease obligation, net of current portion

124,369


48,357

Finance lease obligation, net of current portion

5,683


3,123

Debt

113,391


104,449

Convertible senior notes, net

1,464,138


283,724

Deferred tax liability

51,696


51,538

Other long-term liabilities

37,797


841,256

Total liabilities

1,941,169


1,454,192

Stockholders' equity:




Common stock

23


19

Accumulated other comprehensive (loss) income

(7)


1

Additional paid-in capital

4,701,230


3,337,120

Accumulated deficit

(1,722,848)


(1,360,847)

Total stockholders' equity

2,978,398


1,976,293

Total liabilities and stockholders' equity

$      4,919,567


$      3,430,485


 

 

INVITAE CORPORATION


Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Revenue:









Test revenue


$        121,624


$          96,807


$        444,072


$        272,310

Other revenue


4,497


3,624


16,377


7,288

Total revenue


126,121


100,431


460,449


279,598

Cost of revenue


96,106


68,258


348,669


198,275

Research and development


131,764


72,172


416,087


240,605

Selling and marketing


62,205


48,877


225,910


168,317

General and administrative


50,430


192,290


248,070


270,029

Change in fair value of contingent consideration


190


50,317


(386,646)


54,544

Total costs and operating expenses


340,695


431,914


852,090


931,770

Loss from operations


(214,574)


(331,483)


(391,641)


(652,172)

Other income (expense), net


15,832


167


25,678


(32,332)

Interest expense


(14,031)


(12,522)


(49,900)


(29,766)

Net loss before taxes


(212,773)


(343,838)


(415,863)


(714,270)

Income tax benefit


(7,649)


(109,500)


(36,857)


(112,100)

Net loss


$       (205,124)


$       (234,338)


$       (379,006)


$       (602,170)

Net loss per share, basic and diluted


$             (0.90)


$             (1.30)


$             (1.80)


$             (4.47)

Shares used in computing net loss per share,
basic and diluted


226,849


179,860


210,946


134,587

 

 

INVITAE CORPORATION


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Year Ended December 31,


2021


2020


2019

Cash flows from operating activities:






Net loss

$       (379,006)


$      (602,170)


$      (241,965)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

80,472


39,050


16,206

Stock-based compensation

180,075


158,747


75,948

Amortization of debt discount and issuance costs

14,226


17,204


4,416

Remeasurements of liabilities associated with business combinations

(411,842)


92,348


Benefit from income taxes

(36,857)


(112,100)


(18,450)

Debt extinguishment costs



8,926

Post-combination expense for acceleration of unvested equity and deferred stock compensation

9,530


91,021


Amortization of premiums and discounts on investment securities

6,221


1,236


(296)

Other

4,983


189


1,391

Changes in operating assets and liabilities, net of businesses acquired:

Accounts receivable

(16,696)


(2,814)


(6,131)

Inventory

(1,486)


(7,832)


1,645

Prepaid expenses and other current assets

(14,563)


(2,010)


(6,624)

Other assets

(3,274)


895


2,026

Accounts payable

(9,258)


10,186


1,558

Accrued expenses and other long-term liabilities

17,660


17,548


16,297

Net cash used in operating activities

(559,815)


(298,502)


(145,053)

Cash flows from investing activities:






Purchases of marketable securities

(325,957)


(280,258)


(260,917)

Proceeds from sales of marketable securities


12,832


Proceeds from maturities of marketable securities

425,293


277,487


34,500

Acquisition of businesses, net of cash acquired

(247,396)


(383,753)


(33,846)

Purchases of property and equipment

(54,720)


(22,865)


(20,047)

Other

(1,300)


(4,026)


Net cash used in investing activities

(204,080)


(400,583)


(280,310)

Cash flows from financing activities:






Proceeds from public offerings of common stock, net

434,263


263,688


204,024

Proceeds from issuance of common stock

23,767


284,203


9,470

Proceeds from issuance of convertible senior notes, net

1,116,427



339,900

Proceeds from issuance of debt, net


129,214


Payments of debt extinguishment costs



(10,638)

Loan payments



(75,000)

Finance lease principal payments

(3,759)


(2,655)


(2,075)

Other

(4,758)


(1,457)


(910)

Net cash provided by financing activities

1,565,940


672,993


464,771

Net increase (decrease) in cash, cash equivalents and restricted cash

802,045


(26,092)


39,408

Cash, cash equivalents and restricted cash at beginning of period

131,480


157,572


118,164

Cash, cash equivalents and restricted cash at end of period

$        933,525


$        131,480


$        157,572

 

 

INVITAE CORPORATION


Reconciliation of GAAP to Non-GAAP Cost of Revenue

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Cost of revenue


$         96,106


$         68,258


$      348,669


$      198,275

Amortization of acquired intangible assets


(15,392)


(9,805)


(49,970)


(21,943)

Acquisition-related stock-based compensation


(141)


(1,954)


(2,461)


(1,954)

Acquisition-related post-combination expense


(479)



(1,058)


Fair value adjustments to acquisition-related
assets



(1,574)


(3,148)


(1,574)

Non-GAAP cost of revenue


$         80,094


$         54,925


$      292,032


$      172,804

 

Reconciliation of GAAP to Non-GAAP Gross Profit

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Revenue


$       126,121


$       100,431


$       460,449


$       279,598

Cost of revenue


96,106


68,258


348,669


198,275

Gross profit


30,015


32,173


111,780


81,323

Amortization of acquired intangible assets - cost of revenue


15,392


9,805


49,970


21,943

Acquisition-related stock-based compensation


141


1,954


2,461


1,954

Acquisition-related post-combination expense


479



1,058


Fair value adjustments to acquisition-related
assets



1,574


3,148


1,574

Non-GAAP gross profit


$         46,027


$         45,506


$       168,417


$       106,794

 

Reconciliation of GAAP to Non-GAAP Research and Development Expense

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Research and development


$       131,764


$         72,172


$      416,087


$      240,605

Amortization of acquired intangible assets


(529)


(470)


(2,117)


(820)

Acquisition-related stock-based compensation


(23,703)


(16,204)


(44,406)


(68,215)

Acquisition-related post-combination expense


(2,607)


(60)


(6,056)


(120)

Non-GAAP research and development


$       104,925


$         55,438


$      363,508


$      171,450

 

 

INVITAE CORPORATION


Reconciliation of GAAP to Non-GAAP Selling and Marketing Expense

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Selling and marketing


$         62,205


$         48,877


$      225,910


$      168,317

Amortization of acquired intangible assets


(1,686)


(1,536)


(6,748)


(3,868)

Acquisition-related stock-based compensation



(3,155)


(2,696)


(3,155)

Acquisition-related post-combination expense



(40)


(38)


(80)

Non-GAAP selling and marketing


$         60,519


$         44,146


$      216,428


$      161,214

 

Reconciliation of GAAP to Non-GAAP General and Administrative Expense

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

General and administrative


$         50,430


$       192,290


$      248,070


$      270,029

Amortization of acquired intangible assets





(10)

Acquisition-related stock-based compensation


(32)


(20,147)


(21,293)


(20,147)

Acquisition-related post-combination expense


(165)


(125,842)


(35,628)


(126,342)

Non-GAAP general and administrative


$         50,233


$         46,301


$      191,149


$      123,530

 

Reconciliation of Operating Expense to Non-GAAP Operating Expense

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Research and development


$       131,764


$         72,172


$      416,087


$      240,605

Selling and marketing


62,205


48,877


225,910


168,317

General and administrative


50,430


192,290


248,070


270,029

Change in fair value of contingent consideration


190


50,317


(386,646)


54,544

Operating expense


244,589


363,656


503,421


733,495

Amortization of acquired intangible assets


(2,215)


(2,006)


(8,865)


(4,698)

Acquisition-related stock-based compensation


(23,735)


(39,506)


(68,395)


(91,517)

Acquisition-related post-combination expense


(2,772)


(125,942)


(41,722)


(126,542)

Fair value adjustments to acquisition-related
liabilities


(190)


(50,317)


386,646


(54,645)

Non-GAAP operating expense


$       215,677


$       145,885


$      771,085


$      456,093

 

 

INVITAE CORPORATION


Reconciliation of Other Income (Expense), Net to Non-GAAP Other Income (Expense), Net

(in thousands)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Other income (expense), net


$         15,832


$              167


$        25,678


$       (32,332)

Fair value adjustments to acquisition-related
liabilities


(16,017)


(410)


(25,196)


37,527

Non-GAAP other (expense) income, net


$            (185)


$            (243)


$            482


$          5,195

 

Reconciliation of Net Loss to Non-GAAP Net Loss And Non-GAAP Net Loss Per Share

(in thousands, except per share data)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2021


2020


2021


2020

Net loss


$      (205,124)


$      (234,338)


$     (379,006)


$     (602,170)

Amortization of acquired intangible assets


17,607


11,811


58,835


26,641

Acquisition-related stock-based compensation


23,876


41,460


70,856


93,471

Acquisition-related post-combination expense


3,251


125,942


42,780


126,542

Fair value adjustments to acquisition-related
assets and liabilities


(15,827)


51,481


(408,694)


93,746

Acquisition-related income tax benefit


(8,480)


(109,500)


(39,087)


(112,100)

Non-GAAP net loss


$      (184,697)


$      (113,144)


$     (654,316)


$     (373,870)










Net loss per share, basic and diluted


$            (0.90)


$            (1.30)


$          (1.80)


$          (4.47)

Non-GAAP net loss per share, basic and diluted


$            (0.81)


$            (0.63)


$          (3.10)


$          (2.78)

Shares used in computing net loss per share, basic and diluted


226,849


179,860


210,946


134,587

 

 

INVITAE CORPORATION


Reconciliation of Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash to Cash Burn

(in thousands)

(unaudited)



Three Months Ended


Year Ended


March 31,
2021


June 30,
2021


September 30,
2021


December 31,
2021


December 31,
2021

Net cash used in operating activities

$    (89,520)


$    (129,325)


$    (165,052)


$    (175,918)


$          (559,815)

Net cash (used in) provided by investing activities

(273,558)


(80,701)


(20,324)


170,503


(204,080)

Net cash provided by (used in) financing activities

436,091


1,123,553


(735)


7,031


1,565,940

Net increase (decrease) in cash, cash equivalents and
restricted cash

73,013


913,527


(186,111)


1,616


802,045

Adjustments:










Net changes in investments

249,694


(51,475)


(100,305)


(197,250)


(99,336)

Proceeds from public offering of common stock, net of
issuance costs

(434,263)





(434,263)

Proceeds from issuance of convertible senior notes, net


(1,116,850)


423



(1,116,427)

Proceeds from exercises of warrants

(790)


(452)




(1,242)

Cash burn

$  (112,346)


$    (255,250)


$    (285,993)


$    (195,634)


$          (849,223)











• Cash burn for the three months ended December 31, 2021 includes $9.5 million cash paid for acquisitions, primarily related to the cash paid to acquire Stratify Genomics, Inc.

• Cash burn for the three months ended September 30, 2021 includes $134.6 million of cash paid for acquisitions, primarily related to the cash paid to acquire Medneon and Ciitizen, and $3.3 million in acquisition-related transaction costs.

• Cash burn for the three months ended June 30, 2021 includes $120.1 million of cash paid for acquisitions, primarily related to the cash paid to acquire Genosity.

• Cash burn for the three months ended March 31, 2021 includes $17.7 million of cash paid for acquisitions, primarily related to the cash paid to acquire One Codex.

Contact for Invitae: 
Jack Finks 
ir@invitae.com

 

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SOURCE Invitae Corporation

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San Francisco, CA, 94103
Email: ir@invitae.com
Telephone: (628)-213-3369