Invitae More Than Doubles Annual Volume and Revenue Year-Over-Year, Delivering 117% in Revenue Growth Driven by 102% Growth in Volume in 2018

Invitae More Than Doubles Annual Volume and Revenue Year-Over-Year, Delivering 117% in Revenue Growth Driven by 102% Growth in Volume in 2018

-- Annual volume, revenue exceed increased guidance for full-year 2018 --

-- Guided to more than 500,000 test samples, $220 million in revenue expected in 2019 --

-- Management hosting conference call and webcast today at 4:30pm Eastern/1:30pm Pacific --

PR Newswire

SAN FRANCISCO, Feb. 19, 2019 /PRNewswire/ -- Invitae Corporation (NYSE: NVTA), a leading genetics company, today announced financial and operating results for the fourth quarter and full year ended December 31, 2018. 

Data supports the utility of genetic testing amongst broader patient populations

"In just five years, we have provided more than half a million people with high quality, comprehensive, affordable genetic information to inform healthcare decisions across all stages of life," said Sean George, co-founder and chief executive officer of Invitae. "We believe we're on an unprecedented growth trajectory that translates into better health decisions informed by genetic information. Our seemingly audacious mission to bring genetics into mainstream medicine and benefit people through all stages of life, is coming into clear focus - not only in diagnosing disease, but in helping people as they think about starting a family or informing those who want to be proactive about their health."

Full Year and Fourth Quarter 2018 Financial Results

  • Increased test volume by 102% year-over-year:
    • Accessioned approximately 303,000 samples in 2018, including approximately 87,000 samples in the fourth quarter, which exceeded the increased 2018 guidance of more than 285,000 samples expected in 2018
  • Increased revenue by 117% year-over-year:
    • Generated revenue of $147.7 million in 2018, including $45.4 million in the fourth quarter, which exceeded the increased 2018 guidance range of $140-145 million expected in 2018
    • Includes $1.9 million in payments from Medicare for Lynch syndrome analysis
  • Decreased cost of goods sold (COGS) per sample by 24% year-over-year:
    • Drove down COGS per sample to $243 in the fourth quarter
  • Improved gross profit by 274% year-over-year:
    • Achieved gross profit of $67.6 million in 2018, including $24.2 million in the fourth quarter
    • Reported 46% gross margins in 2018, including 53% gross margins in the fourth quarter

Total operating expenses, which excludes cost of revenue, for the full year 2018 were $190.2 million compared to $139.4 million in 2017. Operating expenses for the fourth quarter of 2018 were $50.1 million compared to $43.2 million in the fourth quarter of 2017. For the full year 2018, net loss was $129.4 million, or a $1.94 net loss per share compared to a net loss of $123.4 million, or a $2.65 net loss per share, for the full year 2017. For the fourth quarter of 2018, Invitae reported a net loss of $29.8 million, or a $0.40 net loss per share, compared to a net loss of $40.5 million in the fourth quarter of 2017, or a $0.78 net loss per share.

At December 31, 2018, cash, cash equivalents, restricted cash, and marketable securities totaled $131.9 million. Net increase in cash, cash equivalents and restricted cash was $100.7 million in 2018 and $11.7 million for the fourth quarter, and cash burn was $97.6 million in 2018 and $17.0 million for the fourth quarter. 

Corporate and Scientific Highlights

  • Published data in the in Journal of Clinical Oncology by researchers from the TME Breast Care Network and Invitae showing that current guidelines for genetic testing of breast cancer patients miss as many patients with pathogenic variants as they find.
  • Partnered with researchers at Tulane Cancer Center on the largest study to date on the genetics of prostate cancer. Published in JAMA Oncology, the study found that guidelines for genetic testing at the time of the study missed a substantial number of patients, suggesting broader genetic testing for prostate cancer is warranted.
  • Announced plans to launch a new patient-initiated testing channel in the second quarter of 2019, which will allow consumers to initiate a comprehensive genetic test themselves, making it easier than ever for patients to get medically actionable genetic information that can inform health decisions.
  • Announced the launch of non-invasive prenatal screening (NIPS) as our most recent addition to Invitae's comprehensive women's health genetic testing services, providing patients with easier access to affordable genetic testing in early pregnancy.
  • Continued the expansion of our network, signing 11 new partnerships with biopharma companies, health systems, and major cancer centers since the beginning of the fourth quarter.

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 6799673. 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.

About Invitae
Invitae Corporation (NYSE: NVTA) is a leading 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 Statement 
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 financial results for 2018; future financial performance and estimated guidance for 2019; and the company's beliefs regarding the growth of its business, its success in executing on its mission and the benefits of genetic testing. 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 actual result for the fourth quarter and full year 2018, the year-end close process and audit of the company's financial statements; the company's ability to continue to grow its business; 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 company's failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; 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 filings with the Securities and Exchange Commission, including the risks set forth in the company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. 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 monitors and considers cash burn, which is a non-GAAP financial measure. This non-GAAP financial measure is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly-titled measures presented by other companies. Cash burn excludes (1) changes in marketable securities other than investments made in privately held companies, (2) cash received from equity financings, including proceeds received from a Securities Purchase Agreement in November 2018, (3) cash received from loan proceeds and loan payments, (4) cash paid for debt extinguishment and (5) cash received from exercises of acquisition-related 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 its operating, investing and financing activities in the statements of cash flows in its consolidated financial statements in its 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 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 cash burn, may calculate cash burn in a different manner than management or may use other financial measures to evaluate their performance, all of which could reduce the usefulness of cash burn as a comparative measure.

Because of these limitations, cash burn 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 reconciliation of net increase in cash, cash equivalents and restricted cash to cash burn provided in the table below.

INVITAE CORPORATION


Consolidated Balance Sheets

(in thousands)

(unaudited)



December 31,
2018


December 31,
2017

Assets




Current assets:




Cash and cash equivalents

$

112,158



$

12,053


Marketable securities

13,727



52,607


Accounts receivable

26,296



10,422


Prepaid expenses and other current assets

13,258



11,599


   Total current assets

165,439



86,681


Property and equipment, net

27,886



30,341


Restricted cash

6,006



5,406


Marketable securities, non-current



5,983


Intangible assets, net

30,469



35,516


Goodwill

50,095



46,575


Other assets

3,064



576


   Total assets

$

282,959



$

211,078


Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$

7,812



$

8,606


Accrued liabilities

26,563



22,742


Capital lease obligation, current portion

1,937



2,039


Total current liabilities

36,312



33,387


Capital lease obligation, net of current portion

1,375



3,373


Debt

74,477



39,084


Other long-term liabilities

8,956



13,440


Total liabilities

121,120



89,284


Stockholders' equity:




Common stock

8



5


Accumulated other comprehensive loss

(5)



(171)


Additional paid-in capital

678,548



520,558


Accumulated deficit

(516,712)



(398,598)


Total stockholders' equity

161,839



121,794


   Total liabilities and stockholders' equity

$

282,959



$

211,078


 

INVITAE CORPORATION


Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)




Three Months Ended December 31,


Year Ended December 31,



2018


2017


2018


2017

Revenue:









Test revenue


$

44,546



$

24,572



$

144,560



$

65,169


Other revenue


810



827



3,139



3,052


Total revenue


45,356



25,399



147,699



68,221


Costs and operating expenses:









Cost of revenue


21,141



17,049



80,105



50,142


Research and development


16,570



13,605



63,496



46,469


Selling and marketing


19,206



16,079



74,428



53,417


General and administrative


14,343



13,557



52,227



39,472


Total costs and operating expenses


71,260



60,290



270,256



189,500


Loss from operations


(25,904)



(34,891)



(122,557)



(121,279)


Other income (expense), net


(4,634)



293



(2,568)



(303)


Interest expense


(2,103)



(1,137)



(7,030)



(3,654)


Net loss before taxes


(32,641)



(35,735)



(132,155)



(125,236)


Income tax benefit


(2,800)



4,758



(2,800)



(1,856)


Net loss


$

(29,841)



$

(40,493)



$

(129,355)



$

(123,380)


Net loss per share, basic and diluted


$

(0.40)



$

(0.78)



$

(1.94)



$

(2.65)


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


75,092



52,018



66,747



46,512


 

INVITAE CORPORATION


Consolidated Statements of Cash Flows

(in thousands)

(unaudited)



Year Ended December 31,


2018


2017


2016

Cash flows from operating activities:






Net loss

$

(129,355)



$

(123,380)



$

(100,256)


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






Depreciation and amortization

13,540



9,181



6,553


Stock-based compensation

20,850



19,221



10,699


Impairment losses

2,925






Remeasurements of liabilities associated with business combinations

362



1,810




Benefit from income taxes

(2,862)



(1,856)




Debt extinguishment costs

5,266






Other

806



404



1,341


Changes in operating assets and liabilities, net of effects of business combination:






Accounts receivable

(5,291)



(1,963)



(843)


Prepaid expenses and other current assets

(1,445)



(641)



(1,149)


Other assets

(163)



(185)



1,465


Accounts payable

(417)



(535)



(111)


Accrued expenses and other liabilities

3,564



(37)



5,984


Net cash used in operating activities

(92,220)



(97,981)



(76,317)








Cash flows from investing activities:






Purchases of marketable securities

(9,680)



(101,867)



(90,236)


Proceeds from sales of marketable securities

19,965






Proceeds from maturities of marketable securities

32,458



68,768



117,922


Acquisition of businesses, acquired cash



2,821




Purchases of property and equipment

(5,970)



(6,675)



(11,625)


Other

(1,000)






Net cash provided by (used in) investing activities

35,773



(36,953)



16,061








Cash flows from financing activities:






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

112,441





47,102


Proceeds from issuance of common stock

17,511



74,619



3,134


Net proceeds from issuance of debt

93,909



39,661



7,500


Payments for debt extinguishment costs

(4,609)






Loan payments

(60,000)



(30,457)



(2,438)


Capital lease principal payments

(2,100)



(2,952)



(1,589)


Net cash provided by financing activities

157,152



80,871



53,709








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

100,705



(54,063)



(6,547)


Cash, cash equivalents and restricted cash at beginning of period

17,459



71,522



78,069


Cash, cash equivalents and restricted cash at end of period

$

118,164



$

17,459



$

71,522


 

INVITAE CORPORATION


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

(in thousands)

(unaudited)



Three Months Ended


March 31,
2018


June 30,
2018


September 30,
2018


December 31,
2018

Net cash used in operating activities

$

(32,902)



$

(25,765)



$

(18,080)



$

(15,473)


Net cash provided by (used in) investing activities

19,947



(1,888)



6,530



11,184


Net cash provided by financing activities

19,345



57,679



64,100



16,028


Net increase in cash, cash equivalents and restricted cash

6,390



30,026



52,550



11,739


Adjustments:








Purchases of investments

225



675



675



8,105


Sales of investments

(19,965)








Maturities of investments

(2,078)





(8,879)



(21,501)


Purchases of investments in privately held companies

(225)



(675)



(675)



(675)


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



(53,480)



(59,000)



39


Proceeds from issuance of common stock - Securities Purchase Agreement







(5,000)


Net proceeds from issuance of debt

(19,792)



11



237



(74,365)


Payments for debt extinguishment costs







4,609


Loan payments







60,000


Proceeds from exercises of acquisition-related warrants

(191)



(3,083)



(3,277)



12


Cash burn

$

(35,636)



$

(26,526)



$

(18,369)



$

(17,037)


 

Contact:
Laura D'Angelo
ir@invitae.com
(628) 213-3369

Consistent execution across key indicators

Invitae's (NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people.  www.invitae.com (PRNewsFoto/Invitae Corporation)

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/invitae-more-than-doubles-annual-volume-and-revenue-year-over-year-delivering-117-in-revenue-growth-driven-by-102-growth-in-volume-in-2018-300798245.html

SOURCE Invitae Corporation

Copyright CNW Group 2019