Invitae Reports $216.8 Million in Annual Revenue Driven by More Than 482,000 Samples in 2019
SAN FRANCISCO, Feb. 19, 2020 /PRNewswire/ -- Invitae Corporation (NYSE: NVTA), a leading medical genetics company, today announced financial and operating results for the fourth quarter and full year ended December 31, 2019.
"In 2019, we delivered another year of extraordinary growth, both in the U.S. and internationally. We expanded our customer base and saw strong re-order rates among new accounts. We also made it easier to access our testing, both through traditional payers and via unique partnership programs," said Sean George, co-founder and chief executive officer of Invitae. "We enter 2020 with momentum and a unique business model that we believe is well-positioned to deliver genetics-informed healthcare to patients. As we continue to scale our business, we are confident our approach and the investments we are making will further strengthen our ability to bring affordable, accessible genetic information to billions of people worldwide."
Full Year and Fourth Quarter 2019 Financial Results
-- Increased test volume by nearly 60% year-over-year, driven by an
expanding customer base with approximately 3,500 new accounts added to
previous base of 4,900 and strong re-order rates of 80% across new
accounts in 2019
-- Accessioned more than 482,000 samples in 2019, including
approximately 148,000 samples in the fourth quarter
-- Reported approximately 469,000 billable reports in 2019, including
147,000 billable reports in the fourth quarter
-- Increased revenue by approximately 47% year-over-year
-- Generated revenue of $216.8 million in 2019, including $66.3 million
in the fourth quarter
-- Decreased average cost per sample 7% year-over-year
-- Reported average cost per sample of $245 during 2019, and $248 in
the fourth quarter
-- Improved gross profit by 46% year-over-year
-- Achieved gross profit of $98.7 million in 2019, including $29.6
million in the fourth quarter
-- Reported 46% gross margins in 2019, including 45% gross margins in the
fourth quarter
Total operating expense, excluding cost of revenue, for the full year 2019 was $342.8 million compared to $190.2 million in 2018. Operating expense for the fourth quarter of 2019 was $108.6 million. Non-GAAP operating expense, which excludes amortization of acquired intangible assets and acquisition-related stock-based compensation and post-combination expense, was $293.6 million for the full year 2019 compared to $185.1 million in 2018, and $89.2 million in the fourth quarter of 2019.
For the full year 2019, net loss was $242.0 million, or a $2.66 net loss per share compared to a net loss of $129.4 million, or a $1.94 net loss per share, for the full year 2018. For the fourth quarter of 2019, Invitae reported a net loss of $76.9 million, or a $0.79 net loss per share, compared to a net loss of $29.8 million in the fourth quarter of 2018, or a $0.40 net loss per share.
At December 31, 2019, cash, cash equivalents, restricted cash, and marketable securities totaled $398.0 million. Net increase in cash, cash equivalents and restricted cash was $39.4 million in 2019 and $315.6 million for the fourth quarter. Cash burn, including various financing and acquisition-related expenses, was $278.3 million in 2019, including $75.5 million in the fourth quarter. The annual cash burn was approximately $153 million when various financing and acquisition-related expenses are excluded (such as $85.6 million cash paid to settle obligations under the 2018 Note Purchase Agreement (which includes $1.3 million of accrued interest on the third quarter 2019 quarterly interest payment) and $41 million in acquisition-related payments).
Looking ahead to 2020, Invitae has guided to more than 725,000 samples accessioned generating more than $330 million in revenue, reflecting a more than 50% annual growth rate in both volume and revenue.
This press release contains non-GAAP financial measures. Investors are encouraged to review the non-GAAP reconciliations provided in the tables below.
Corporate & Scientific Highlights
Invitae's network of biopharma partnerships continued to grow throughout the year and now includes more than 80 agreements with more than 45 companies:
-- Invitae's first sponsored testing partnership program, Behind the
Seizure(®), expanded access to testing for pediatric epilepsy to
children under eight who experience an unprovoked seizure. With eight
partners now supporting the program, it has been shown that participants
in the program were diagnosed one to two years sooner than historic
averages.
-- Five Invitae Detect programs were launched in 2019, creating
multi-partner programs that increase access to genetic testing in
therapeutic areas where it is under-utilized. The company announced
Amicus Therapeutics, Enzyvant and Orchard have joined as partners in the
Detect Lysosomal Disorders program in January 2020.
Invitae enhanced its technologies and services and advanced medical research to deepen understanding of the use of genetics in clinical care:
-- Acquired three companies that are intended to further enhance Invitae's
clinical variant interpretation capabilities, meaningfully reduce the
cost of testing and provide superior customer workflows and patient
support.
-- Presented and published clinical research demonstrating the frequency of
actionable genetic variants in large patient populations and supporting
the expansion of guidelines for patients with ovarian, breast,
pancreatic, prostate and colorectal cancer.
-- Launched Invitae Discover, a clinical research platform that leverages
biometric data available through Apple Watch to provide better
understanding of the genetic causes of disease, with the first study in
cardiovascular disease.
Invitae expanded access to its high-quality, in-depth medical genetic testing via insurers and health systems in the United States and internationally:
-- Supported the finalized National Coverage Determination (NCD) issued by
Centers for Medicare and Medicaid Services (CMS), which allows for more
flexible Medicare coverage for Next Generation Sequencing (NGS).
-- Partnered with the University of Vermont Health Network on a population
health testing program to offer proactive genetic screening as part of
routine clinical care for patients in Vermont.
-- Announced in-network status with Cigna. Invitae is now in contract with
all national commercial health plans and has approximately 295 million
covered lives in network.
-- Named one of seven labs in UnitedHealthcare's (UHC) Preferred Lab
Network (PLN), based on a rigorous quality and affordability review out
of a broader network of more than 300 labs.
-- Launched Invitae's direct channel to make it easier for consumers to
receive the same high-quality, affordable medical genetic testing from
Invitae that experts use and trust.
-- Established plans to increase international presence with local
laboratory and/or fulfillment infrastructure in five countries. Invitae
served customers in more than 95 ex-U.S. countries, accounting for more
than 10% of 2019 volume.
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 2782984. Following prepared remarks, management will respond to questions from investors and analysts, subject to time limitations.
The live webcast of the call and slide deck may be accessed by visiting the investors section of the company's website at ir.invitae.com. A replay of the webcast and conference call 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 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 the quarter and year ended December 31, 2019; the company's beliefs regarding estimated guidance for 2020 and future financial performance; the impact of the company's acquisitions, partnerships and product offerings; and the company's beliefs regarding the growth of its business, its position and impact on the genetic testing industry, its success in executing on its mission and achieving its goals, 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 results for the quarter and year ended December 31, 2019; 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 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 Quarterly Report on Form 10-Q for the quarter ended September 30, 2019. 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 cost of revenue, non-GAAP operating expense, including non-GAAP research and development, non-GAAP selling and marketing and non-GAAP general and administrative, as well as non-GAAP net loss and 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 related to inducement grants, (3) post-combination expense related to the acceleration of equity grants in connection with business combinations, and (4) 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 other than investments made in privately held companies, (2) cash received from equity financings, (3) net cash received from proceeds from term debt or convertible senior notes, and (4) 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 non-GAAP cost of revenue, non-GAAP research and development, non-GAAP selling and marketing, non-GAAP general and administrative expense, non-GAAP operating expense, non-GAAP net loss and net loss per share, or cash burn 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,
2019 2018
Assets
Current assets:
Cash and cash equivalents $
151,389 $
112,158
Marketable securities 240,436 13,727
Accounts receivable 32,541 26,296
Prepaid expenses and other
current assets 18,032 13,258
Total current assets 442,398 165,439
Property and equipment, net 37,747 27,886
Operating lease assets 36,640
Restricted cash 6,183 6,006
Intangible assets, net 125,175 30,469
Goodwill 126,777 50,095
Other assets 6,681 3,064
Total assets $
781,601 $
282,959
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $
10,321 $
7,812
Accrued liabilities 64,814 26,563
Operating lease obligation 4,870
Finance lease obligation 1,855 1,937
Total current liabilities 81,860 36,312
Operating lease obligation, net
of current portion 42,191
Finance lease obligation, net
of current portion 1,155 1,375
Debt - 74,477
Convertible senior notes, net 268,755
Other long-term liabilities 8,000 8,956
Total liabilities 401,961 121,120
Stockholders' equity:
Preferred stock -
Common stock 10 8
Accumulated other comprehensive
loss (9) (5)
Additional paid-in capital 1,138,316 678,548
Accumulated deficit (758,677) (516,712)
Total stockholders' equity 379,640 161,839
Total liabilities and
stockholders' equity $
781,601 $
282,959
INVITAE CORPORATION
Consolidated Statements of Operations
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Revenue:
Test revenue $
65,050 $
44,546 $
212,473 $
144,560
Other revenue 1,235 810 4,351 3,139
Total revenue 66,285 45,356 216,824 147,699
Costs and operating expenses:
Cost of revenue 36,723 21,141 118,103 80,105
Research and development 51,279 16,570 141,526 63,496
Selling and marketing 34,575 19,206 122,237 74,428
General and administrative 22,744 14,343 79,070 52,227
Total costs and operating
expenses 145,321 71,260 460,936 270,256
Loss from operations (79,036) (25,904) (244,112) (122,557)
Other expense, net 1,681 (4,634) (3,891) (2,568)
Interest expense (5,350) (2,103) (12,412) (7,030)
Net loss before taxes (82,705) (32,641) (260,415) (132,155)
Income tax benefit (5,800) (2,800) (18,450) (2,800)
Net loss $
(76,905) $
(29,841) $
(241,965) $
(129,355)
Net loss per share, basic and
diluted $
(0.79) $
(0.40) $
(2.66) $
(1.94)
Shares used in computing net loss
per share, basic and diluted 97,374 75,092 90,859 66,747
INVITAE CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Year Ended December 31,
2019 2018 2017
Cash flows from operating activities:
Net loss $
(241,965) $
(129,355) $
(123,380)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and
amortization 16,206 13,540 9,181
Stock-based compensation 75,948 20,850 19,221
Amortization of debt
discount and issuance costs 4,416
Impairment losses - 2,925
Benefit from income taxes (18,450) (2,862) (1,856)
Debt extinguishment costs 8,926 5,266
Other 1,095 1,168 2,214
Changes in operating assets and liabilities, net of businesses acquired:
Accounts receivable (6,131) (5,291) (1,963)
Prepaid expenses and other
current assets (4,979) (1,445) (641)
Other assets 2,026 (163) (185)
Accounts payable 1,558 (417) (535)
Accrued expenses and other
liabilities 16,297 3,564 (37)
Net cash used in operating
activities (145,053) (92,220) (97,981)
Cash flows from investing activities:
Purchases of marketable
securities (260,917) (9,680) (101,867)
Proceeds from sales of
marketable securities - 19,965
Proceeds from maturities of
marketable securities 34,500 32,458 68,768
Acquisition of businesses,
net of cash acquired (33,846) 2,821
Purchases of property and
equipment (20,047) (5,970) (6,675)
Other - (1,000)
Net cash provided by (used
in) investing activities (280,310) 35,773 (36,953)
Cash flows from financing activities:
Proceeds from public
offerings of common stock,
net of issuance costs 204,024 112,441
Proceeds from issuance of
common stock, net 9,470 17,511 74,619
Proceeds from issuance of
convertible senior notes,
net 339,900
Proceeds from issuance of
debt, net - 93,909 39,661
Payments of debt
extinguishment costs (10,638) (4,609)
Loan payments (75,000) (60,000) (30,457)
Finance lease principal
payments (2,075) (2,100) (2,952)
Other (910)
Net cash provided by
financing activities 464,771 157,152 80,871
Net increase (decrease) in
cash, cash equivalents and
restricted cash 39,408 100,705 (54,063)
Cash, cash equivalents and
restricted cash at
beginning of period 118,164 17,459 71,522
Cash, cash equivalents and
restricted cash at end of
period $
157,572 $
118,164 $
17,459
INVITAE CORPORATION
Reconciliation of GAAP to Non-GAAP Cost of Revenue
(in thousands)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Cost of revenue $
36,723 $
21,141 $
118,103 $
80,105
Amortization of acquired
intangible assets (2,038) (4,435)
Non-GAAP cost of revenue $
34,685 $
21,141 $
113,668 $
80,105
Reconciliation of GAAP to Non-GAAP Research and Development Expense
(in thousands)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Research and development $
51,279 $
16,570 $
141,526 $
63,496
Amortization of acquired
intangible assets (117) (609) (467) (2,437)
Acquisition-related stock-based
compensation (17,907) (39,106)
Non-GAAP research and development $
33,255 $
15,961 $
101,953 $
61,059
Reconciliation of GAAP to Non-GAAP Selling and Marketing Expense
(in thousands)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Selling and marketing $
34,575 $
19,206 $
122,237 $
74,428
Amortization of acquired
intangible assets (675) (619) (2,699) (2,496)
Non-GAAP selling and marketing $
33,900 $
18,587 $
119,538 $
71,932
Reconciliation of GAAP to Non-GAAP General and Administrative Expense
(in thousands)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
General and administrative $
22,744 $
14,343 $
79,070 $
52,227
Amortization of acquired
intangible assets (29) (29) (114) (114)
Acquisition-related post-
combination expense (640) (6,798)
Non-GAAP general and
administrative $
22,075 $
14,314 $
72,158 $
52,113
Reconciliation of Operating Expense to Non-GAAP Operating Expense
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Research and development $
51,279 $
16,570 $
141,526 $
63,496
Selling and marketing 34,575 19,206 122,237 74,428
General and administrative 22,744 14,343 79,070 52,227
Operating expense 108,598 50,119 342,833 190,151
Amortization of acquired
intangible assets (821) (1,257) (3,280) (5,047)
Acquisition-related stock-based
compensation (17,907) (39,106)
Acquisition-related post-
combination expense (640) (6,798)
Non-GAAP operating expense $
89,230 $
48,862 $
293,649 $
185,104
Reconciliation of Net Loss to Non-GAAP Net Loss Per Share
(in thousands, except per share data)
(unaudited)
Three Months Ended December 31, Year Ended December 31,
2019 2018 2019 2018
Net loss $
(76,905) $
(29,841) $
(241,965) $
(129,355)
Amortization of acquired
intangible assets 2,859 1,257 7,715 5,047
Acquisition-related stock-based
compensation 17,907 39,106
Acquisition-related post-
combination expense 640 6,798
Acquisition-related income tax
benefit (5,800) (2,800) (18,450) (2,800)
Non-GAAP net loss $
(61,299) $
(31,384) $
(206,796) $
(127,108)
Non-GAAP net loss per share,
basic and diluted $
(0.63) $
(0.42) $
(2.28) $
(1.90)
Shares used in computing net loss
per share, basic and diluted 97,374 75,092 90,859 66,747
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, June 30, September 30, December 31, December 31,
2019 2019 2019 2019 2019
Net cash used in
operating
activities $
(28,366) $
(32,725) $
(36,696) $
(47,266) $
(145,053)
Net cash provided
by (used in)
investing
activities (17,545) 25,133 (17,200) (270,698) (280,310)
Net cash provided
by financing
activities 186,120 2,462 273,848 2,341 464,771
Net increase
(decrease) in
cash, cash
equivalents and
restricted cash 140,209 (5,130) 219,952 (315,623) 39,408
Adjustments:
Purchases of
investments 20,781 240,136 260,917
Maturities of
investments (6,000) (28,000) (500) (34,500)
Proceeds from
public offering of
common stock, net
of issuance costs (184,490) (19,534) (204,024)
Proceeds from
issuance of
convertible senior
notes, net - (339,900) (339,900)
Proceeds from
exercises of
warrants (88) (25) (58) (10) (181)
Cash burn $
(29,588) $
(33,155) $
(140,040) $
(75,497) $
(278,280)
-Cash burn for the year ended December 31, 2019 includes $85.6
million of cash paid to settle our obligations under the 2018
Note Purchase Agreement (which includes $1.3 million of accrued
interest on the third quarter 2019 quarterly interest payment)
and $41 million paid in connection with acquisitions during 2019.
Contact:
Laura D'Angelo
ir@invitae.com
(628) 213-3369
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