Invitae Reports 106% Annual Revenue Growth Driven by 95% Annual Growth in Volume in Third Quarter 2018
Raising annual volume and revenue guidance amid strong performance Q3 2018 gross profit of $16.9M up from nearly $5.0M in Q3 2017
November 7, 2018 – Invitae Corporation (NYSE: NVTA), one of the fastest growing genetics companies, today announced financial and operating results for the third quarter ended September 30, 2018. Based on progress in the quarter, Invitae is raising its volume guidance from more than 275,000 samples to more than 285,000 samples and raising its revenue guidance from between $135 and $140 million to between $140 and $145 million in 2018.
“We have had another strong quarter of growth and execution, building momentum among our expanding base of customers,” said Sean George, co-founder and chief executive officer of Invitae. “In addition to the volume and revenue growth, we achieved our goal of reducing cash burn by nearly 50% from the first quarter of this year. With access to more than $250 million in capital, we are well positioned to continue to grow the business as we emerge as a leading provider and partner of choice in genetics.”
Third Quarter 2018 Results
- – Accessioned approximately 78,000 samples in the third quarter of 2018, representing a 95% increase over the 40,000 samples in the third quarter of 2017
- – Generated revenue of $37.4 million in the third quarter of 2018, representing a 106% increase over the third quarter of 2017 revenue of $18.1 million
- – Reduced the average cost per sample to approximately $260 in the third quarter of 2018, representing a 21% reduction from an approximate $330 average cost per sample in the third quarter of 2017
- – Achieved positive gross profit of $16.9 million in the third quarter of 2018 compared to nearly $5.0 million gross profit in the third quarter of 2017
Total operating expenses for the third quarter of 2018, excluding cost of goods sold, were $47.0 million compared to $35.9 million in the third quarter of 2017. For the third quarter of 2018, Invitae reported a net loss of $31.7 million, or a $0.45 loss per share, compared to a net loss of $27.4 million in the third quarter of 2017, or a $0.57 loss per share.
At September 30, 2018, cash, cash equivalents, restricted cash and marketable securities totaled $134.6 million. Net increase in cash, cash equivalents and restricted cash for the quarter was $52.6 million, with cash burn for the quarter at $18.4 million.
Corporate & Scientific Highlights
- – Closed equity financing of $59.0 million in net proceeds in the quarter
- – Subsequent to the quarter close, we entered into new financing arrangements for up to $200 million in debt and $5 million in equity from funds managed by Oberland Capital
- – Notified of agreement to receive payments from Medicare for Lynch syndrome analysis (CPT code 81436)
- – Continued growing our biopharma and patient advocacy network with the expansion of the company’s partnership with Alnylam Pharmaceuticals to provide genetic testing at no cost to patients through the Alnylam Act® program for individuals who may carry gene mutations associated with primary hyperoxaluria, an ultra-rare genetic disorder affecting the kidneys that most often presents in childhood
- – Presented findings at annual American Society of Human Genetics meeting, showing proactive genetic testing identifies medically significant findings for 16.5% of healthy individuals, adding to a growing body of evidence showing expanding clinical genetic testing to people without identified risks could be beneficial
- – Announced the appointment of Chitra Nayak to the company’s Board of Directors, noting her considerable track record of helping companies achieve transformational growth to scale and innovate globally
Webcast and Conference Call Details
Management will host a conference call and webcast today at 4:30 p.m. Eastern / 1:30 p.m. Pacific to discuss financial results and recent developments. The dial-in numbers for the conference call are (866) 393-4306 for domestic callers and (734) 385-2616 for international callers, and the reservation number for both is 9887569. Following prepared remarks, management will respond to questions from investors and analysts, subject to time limitations.
The live webcast of the call may be accessed 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.
Invitae Corporation (NYSE: NVTA) is a 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 most of the world’s genetic tests into a single service with higher quality, faster turnaround time and lower prices.