– Entered into a ~$336
million transaction for the 2024 convertible notes,
effectively addressing ~96% of the amount outstanding (see separate
press release to follow) –
– Repaid its 2024 senior secured term loan in
full, improving its balance sheet –
– Company maintains cash runway through the end
of 2024 –
– Annual revenue grew by 12.1%; Continued to
improve on key financial metrics –
– Major initiatives under strategic realignment
largely completed –
– Guiding to low double digit pro forma revenue
growth and continued expansion of non-GAAP gross margin in 2023,
decreasing cash burn by over 45% from 2022 –
– Conference call and webcast today at
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time –
SAN
FRANCISCO, Feb. 28, 2023 /PRNewswire/ -- Invitae
(NYSE: NVTA), a leading medical genetics company, today announced
financial and operating results for the fourth quarter and year
ended December 31, 2022.
"2022 was a transformative year for Invitae as we shifted our
focus to drive more profitable growth, and we are pleased that the
major initiatives under our strategic realignment are now largely
completed," said Ken Knight,
president and chief executive officer of Invitae. "Our talented
teams made great progress, and continued their work in service
of patients and customers while delivering on the
financial objectives aligned to our new path. These continued
improvements in our financial metrics reflect our new priorities
and operating discipline. In light of that execution,
we separately announced today significant developments in
addressing approximately 96% of our near-term debt obligations. Our
investors have agreed to extend the maturities of our 2024
convertible notes into 2028, along with equitizing a portion
of the debt and adding capital, demonstrating their confidence in
Invitae's future. We have also repaid our term loan in full and
further improved our balance sheet. Overall, we are looking forward
to 2023, as we continue to drive operational excellence, along with
setting the stage for our long-term growth opportunities for years
to come."
Full Year and Fourth Quarter 2022 Financial Results
- Generated revenue of $516.3
million in 2022, a 12.1% increase from $460.4 million in 2021. Fourth quarter 2022
revenue of $122.5 million, versus
$126.1 million a year ago, reflecting
the impact of exited businesses and geographies announced earlier
in the year.
- GAAP gross profit was $99.1
million in 2022, including $29.6
million in the fourth quarter. Non-GAAP gross profit was
$219.7 million in 2022, including
$58.5 million in the fourth
quarter.
- GAAP gross margin was 19.2% in 2022, as compared with 24.3% in
2021, and 24.2% in the fourth quarter of 2022, versus 23.8% in the
fourth quarter of 2021. Non-GAAP gross margin was 42.5% in 2022, as
compared with 36.6% in 2021. Non-GAAP gross margin was 47.8% in the
fourth quarter of 2022, compared to 36.5% in the fourth quarter of
2021.
- Cash, cash equivalents, restricted cash and marketable
securities were $557.1 million as of
December 31, 2022, compared to
$596.0 million as of September 30, 2022 and $1.06 billion as of December 31, 2021.
- Cash burn in 2022 was $509.6
million, compared to a cash burn of $849.2 million in 2021. 2022 cash burn included
outflows of $53.3 million
($38.4 million related to realignment
and $14.9 million acquisition-related
payments), as well as an inflow of $44.5
million related to the selected assets sale of the RUO
kitted solutions.
- Cash burn in the fourth quarter was $41.8 million and included an outflow of
$9.3 million related to realignment
and $0.1 million of
acquisition-related payments, as well as an inflow of $44.5 million related to the selected assets sale
of the RUO kitted solutions. Excluding these items, cash burn would
have been $77.0 million. This
represents a continued improving trend since the fourth quarter of
2021 driven by our strategic realignment and cost reduction
plans.
- Total active healthcare provider accounts totaled 20,929 as of
December 31, 2022, an increase of
approximately 13% year-over-year.
- Active pharmaceutical and commercial partnerships grew to 238,
an increase of approximately 34% year-over-year, reflecting growing
adoption of our product and services to pharmaceutical, health
systems and other partners.
- Revenue per patient was $475 in
2022, a decrease of approximately 3% from $491 in 2021. Revenue per patient was
$511 in the fourth quarter of 2022,
compared to $505 in the third quarter
of 2022, and $476 in the fourth
quarter of 2021, primarily as a result of our realignment
efforts.
- Total patient population as of December
31, 2022 is more than 3.6 million with over 62% available
for data sharing.
Total GAAP operating expense, which excludes cost of revenue,
for the fourth quarter of 2022 was $124.5 million, which includes items related to
the strategic realignment. As a result, GAAP operating expense as a
percentage of revenue was 102%, compared to 194% in the fourth
quarter of 2021. Non-GAAP operating expense was $135.6 million for the fourth quarter of
2022. Non-GAAP operating expense as a percentage of revenue was
111%, compared to 171% in the fourth quarter of 2021.
Net loss for the fourth quarter of 2022 was $99.8 million, or a $0.41 net loss per share, compared to net loss of
$205.1 million, or net loss per share
of $0.90, for the fourth quarter of
2021. Non-GAAP net loss for the fourth quarter of 2022 was
$82.0 million, or a $0.34 non-GAAP net loss per share, compared to a
net loss of $184.7 million, or an
$0.81 non-GAAP net loss per share,
for the fourth quarter of 2021.
Financial Guidance
On a pro forma basis, the company exited fourth quarter 2022 at
an annualized revenue of approximately $450
million for its remaining business. Management is expecting
2023 revenue to be over $500 million,
representing low double-digit year-over-year growth compared to
2022 pro forma revenue.
Thanks to realignment initiatives, non-GAAP gross margin for
2023 is expected to be between 48-50%, compared to 42.5% in 2022.
Cash burn is expected to be in the range of $250-275 million in 2023, a more than 45%
reduction from 2022.
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://www.netroadshow.com/events/login?show=d75171b5&confId=46549
Upon registering, each participant will be provided with call
details and access codes.
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 (NYSE: NVTA) is a leading medical genetics company
trusted by millions of patients and their providers to deliver
timely genetic information using digital technology. We aim to
provide accurate and actionable answers to strengthen medical
decision-making for individuals and their families. Invitae's
genetics experts apply a rigorous approach to data and research,
serving as the foundation of their mission to bring comprehensive
genetic information into mainstream medicine to improve healthcare
for billions of people.
To learn more, visit invitae.com and follow for
updates on Twitter, Instagram, Facebook and LinkedIn
@Invitae.
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 mission; the
expected impact, benefits, and timing of the company's strategic
business realignment or various aspects thereof; the company's
expectations regarding future financial and operating results, and
the drivers of future financial results; the company's roadmap for
2023 and long-term growth; and the company's expectations regarding
the exchange and equitization of existing notes, extension of debt
maturity and repayment of senior secured loans. 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 ability of
the company to successfully execute its strategic business
realignment and achieve the intended benefits thereof on the
expected timeframe or at all; unforeseen or greater than expected
costs associated with the strategic business realignment; the risk
that the disruption that may result from the realignment may harm
the company's business, market share or its relationship with
customers or potential customers; satisfaction of closing
conditions related to the debt exchange and equitization
transaction; 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 and the current
economic environment on the company's business; the company's
ability to grow its business in a cost-efficient manner; the
company's history of losses; the company's ability to maintain
important customer relationships; 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 applicability of clinical results to actual outcomes;
risks associated with litigation; the company's ability to use
rapidly changing genetic data to interpret test results accurately
and consistently; laws and regulations applicable to the company's
business; and the other risks set forth in the reports filed by the
company with the SEC, including its Quarterly Report on Form 10-Q
for the quarter ended September 30,
2022. 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 the company'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. These
non-GAAP financial measures exclude certain items that are required
by GAAP. In addition, these non-GAAP 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 uses such non-GAAP
information to manage the company's business and monitor its
performance.
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 and on the company's
website.
In addition, this press release includes the company's non-GAAP
gross margin guidance, a non-GAAP measure used to describe the
company's expected performance. The company has not presented a
reconciliation of this non-GAAP measure to the company's gross
margin, the most comparable GAAP financial measure, because the
reconciliation could not be prepared without unreasonable effort.
The information necessary to prepare the reconciliation is not
available on a forward-looking basis and cannot be accurately
predicted. The unavailable information could have a significant
impact on the calculation of the comparable GAAP financial
measure.
|
INVITAE CORPORATION
Consolidated
Balance Sheets
(in thousands)
|
|
|
December
31,
|
|
2022
|
|
2021
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
257,489
|
|
$
923,250
|
|
Marketable
securities
|
289,611
|
|
122,121
|
|
Accounts
receivable
|
96,148
|
|
66,227
|
|
Inventory
|
30,386
|
|
33,516
|
|
Prepaid expenses and
other current assets
|
19,496
|
|
33,691
|
|
Total current
assets
|
693,130
|
|
1,178,805
|
|
Property and equipment,
net
|
108,723
|
|
114,714
|
|
Operating lease
assets
|
106,563
|
|
121,169
|
|
Restricted
cash
|
10,030
|
|
10,275
|
|
Intangible assets,
net
|
1,012,549
|
|
1,187,994
|
|
Goodwill
|
—
|
|
2,283,059
|
|
Other assets
|
23,121
|
|
23,551
|
|
Total
assets
|
$ 1,954,116
|
|
$ 4,919,567
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
13,984
|
|
$
21,127
|
|
Accrued
liabilities
|
74,388
|
|
106,453
|
|
Operating lease
obligations
|
14,600
|
|
12,359
|
|
Finance lease
obligations
|
5,121
|
|
4,156
|
|
Total current
liabilities
|
108,093
|
|
144,095
|
|
Operating lease
obligations, net of current portion
|
134,386
|
|
124,369
|
|
Finance lease
obligations, net of current portion
|
3,780
|
|
5,683
|
|
Debt
|
122,333
|
|
113,391
|
|
Convertible senior
notes, net
|
1,470,783
|
|
1,464,138
|
|
Deferred tax
liability
|
8,130
|
|
51,696
|
|
Other long-term
liabilities
|
4,775
|
|
37,797
|
|
Total
liabilities
|
1,852,280
|
|
1,941,169
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
25
|
|
23
|
|
Accumulated other
comprehensive loss
|
(80)
|
|
(7)
|
|
Additional paid-in
capital
|
4,931,032
|
|
4,701,230
|
|
Accumulated
deficit
|
(4,829,141)
|
|
(1,722,848)
|
|
Total stockholders'
equity
|
101,836
|
|
2,978,398
|
|
Total liabilities and
stockholders' equity
|
$ 1,954,116
|
|
$ 4,919,567
|
|
INVITAE CORPORATION
Consolidated Statements
of Operations
(in thousands, except per share
data)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Test
revenue
|
|
$
119,042
|
|
$
121,624
|
|
$
500,560
|
|
$
444,072
|
|
Other
revenue
|
|
3,412
|
|
4,497
|
|
15,743
|
|
16,377
|
|
Total
revenue
|
|
122,454
|
|
126,121
|
|
516,303
|
|
460,449
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
92,844
|
|
96,106
|
|
417,256
|
|
348,669
|
|
Research and
development
|
|
71,529
|
|
131,764
|
|
402,088
|
|
416,087
|
|
Selling and
marketing
|
|
46,795
|
|
62,205
|
|
218,881
|
|
225,910
|
|
General and
administrative
|
|
43,243
|
|
50,430
|
|
192,314
|
|
248,070
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
2,313,047
|
|
—
|
|
Restructuring and
other costs
|
|
10,292
|
|
—
|
|
140,331
|
|
—
|
|
Gain on sale of RUO
kit assets
|
|
(47,354)
|
|
—
|
|
(47,354)
|
|
—
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
190
|
|
(1,850)
|
|
(386,646)
|
|
Total operating
expenses
|
|
217,349
|
|
340,695
|
|
3,634,713
|
|
852,090
|
|
Loss from
operations
|
|
(94,895)
|
|
(214,574)
|
|
(3,118,410)
|
|
(391,641)
|
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
|
|
Change in fair value
of acquisition-related liabilities
|
|
240
|
|
16,017
|
|
15,906
|
|
25,196
|
|
Other income
(expense), net
|
|
4,083
|
|
(185)
|
|
8,054
|
|
482
|
|
Total other income,
net
|
|
4,323
|
|
15,832
|
|
23,960
|
|
25,678
|
|
Interest
expense
|
|
(14,598)
|
|
(14,031)
|
|
(56,747)
|
|
(49,900)
|
|
Net loss before
taxes
|
|
(105,170)
|
|
(212,773)
|
|
(3,151,197)
|
|
(415,863)
|
|
Income tax
benefit
|
|
5,353
|
|
7,649
|
|
44,904
|
|
36,857
|
|
Net loss
|
|
$
(99,817)
|
|
$
(205,124)
|
|
$
(3,106,293)
|
|
$
(379,006)
|
|
Net loss per share,
basic and diluted
|
|
$
(0.41)
|
|
$
(0.90)
|
|
$
(13.18)
|
|
$
(1.80)
|
|
Shares used in
computing net loss per share, basic and diluted
|
|
243,948
|
|
226,849
|
|
235,676
|
|
210,946
|
|
INVITAE CORPORATION
Consolidated Statements
of Cash Flows
(in thousands)
|
|
|
Year Ended December
31,
|
|
2022
|
|
2021
|
|
2020
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net loss
|
$
(3,106,293)
|
|
$ (379,006)
|
|
$ (602,170)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
Goodwill and IPR&D
impairment
|
2,313,047
|
|
—
|
|
—
|
|
Impairments and losses
on disposals of long-lived assets
|
60,507
|
|
—
|
|
—
|
|
Gain on sale of RUO
kit assets
|
(47,354)
|
|
—
|
|
—
|
|
Depreciation and
amortization
|
142,071
|
|
80,472
|
|
39,050
|
|
Stock-based
compensation
|
199,304
|
|
180,075
|
|
158,747
|
|
Amortization of debt
discount and issuance costs
|
15,587
|
|
14,226
|
|
17,204
|
|
Remeasurements of
liabilities associated with business combinations
|
(17,756)
|
|
(411,842)
|
|
92,348
|
|
Benefit from income
taxes
|
(44,904)
|
|
(36,857)
|
|
(112,100)
|
|
Post-combination
expense for acceleration of unvested equity and deferred stock
compensation
|
8,428
|
|
9,530
|
|
91,021
|
|
Amortization of
premiums and discounts on investment securities
|
(1,515)
|
|
6,221
|
|
1,236
|
|
Non-cash lease
expense
|
10,240
|
|
3,496
|
|
777
|
|
Other
|
1,018
|
|
1,487
|
|
(588)
|
|
Changes in operating
assets and liabilities, net of businesses acquired:
|
|
Accounts
receivable
|
(29,921)
|
|
(16,696)
|
|
(2,814)
|
|
Inventory
|
3,130
|
|
(1,486)
|
|
(7,832)
|
|
Prepaid expenses and
other current assets
|
14,195
|
|
(14,563)
|
|
(2,010)
|
|
Other
assets
|
3,124
|
|
(3,274)
|
|
895
|
|
Accounts
payable
|
(2,465)
|
|
(9,258)
|
|
10,186
|
|
Accrued expenses and
other long-term liabilities
|
(13,404)
|
|
17,660
|
|
17,548
|
|
Net cash used in
operating activities
|
(492,961)
|
|
(559,815)
|
|
(298,502)
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Purchases of marketable
securities
|
(892,361)
|
|
(325,957)
|
|
(280,258)
|
|
Proceeds from sales of
marketable securities
|
—
|
|
—
|
|
12,832
|
|
Proceeds from
maturities of marketable securities
|
726,313
|
|
425,293
|
|
277,487
|
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
(247,396)
|
|
(383,753)
|
|
Proceeds from sale of
RUO kit assets
|
44,554
|
|
—
|
|
—
|
|
Purchases of property
and equipment
|
(53,309)
|
|
(54,720)
|
|
(22,865)
|
|
Other
|
—
|
|
(1,300)
|
|
(4,026)
|
|
Net cash used in
investing activities
|
(174,803)
|
|
(204,080)
|
|
(400,583)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from public
offerings of common stock, net
|
9,658
|
|
434,263
|
|
263,688
|
|
Proceeds from issuance
of common stock
|
8,157
|
|
23,767
|
|
284,203
|
|
Proceeds from issuance
of convertible senior notes, net
|
—
|
|
1,116,427
|
|
—
|
|
Proceeds from issuance
of debt, net
|
—
|
|
—
|
|
129,214
|
|
Finance lease principal
payments
|
(5,410)
|
|
(3,759)
|
|
(2,655)
|
|
Settlement of
acquisition obligations
|
(10,647)
|
|
(4,758)
|
|
(1,457)
|
|
Net cash provided by
financing activities
|
1,758
|
|
1,565,940
|
|
672,993
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(666,006)
|
|
802,045
|
|
(26,092)
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
933,525
|
|
131,480
|
|
157,572
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
267,519
|
|
$
933,525
|
|
$
131,480
|
|
Reconciliation of
GAAP to Non-GAAP Cost of Revenue
(in thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Cost of
revenue
|
|
$
92,844
|
|
$
96,106
|
|
$
417,256
|
|
$
348,669
|
|
Amortization of
acquired intangible assets
|
|
(26,950)
|
|
(15,392)
|
|
(100,568)
|
|
(49,970)
|
|
Acquisition-related
stock-based compensation
|
|
(156)
|
|
(141)
|
|
(581)
|
|
(2,461)
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
(479)
|
|
(1,053)
|
|
(1,058)
|
|
Change in fair value
of acquisition-related assets
|
|
—
|
|
—
|
|
—
|
|
(3,148)
|
|
Restructuring-related
retention bonuses
|
|
(82)
|
|
—
|
|
(252)
|
|
—
|
|
Inventory and prepaid
write-offs
|
|
(1,712)
|
|
—
|
|
(18,179)
|
|
—
|
|
Non-GAAP cost of
revenue
|
|
$
63,944
|
|
$
80,094
|
|
$
296,623
|
|
$
292,032
|
|
Reconciliation of
GAAP to Non-GAAP Gross Profit
(in thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Revenue
|
|
$
122,454
|
|
$
126,121
|
|
$
516,303
|
|
$
460,449
|
|
Cost of
revenue
|
|
92,844
|
|
96,106
|
|
417,256
|
|
348,669
|
|
Gross profit
|
|
29,610
|
|
30,015
|
|
99,047
|
|
111,780
|
|
Amortization of
acquired intangible assets
|
|
26,950
|
|
15,392
|
|
100,568
|
|
49,970
|
|
Acquisition-related
stock-based compensation
|
|
156
|
|
141
|
|
581
|
|
2,461
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
479
|
|
1,053
|
|
1,058
|
|
Change in fair value
of acquisition-related assets
|
|
—
|
|
—
|
|
—
|
|
3,148
|
|
Restructuring-related
retention bonuses
|
|
82
|
|
—
|
|
252
|
|
—
|
|
Inventory and prepaid
write-offs
|
|
1,712
|
|
—
|
|
18,179
|
|
—
|
|
Non-GAAP gross
profit
|
|
$
58,510
|
|
$
46,027
|
|
$
219,680
|
|
$
168,417
|
|
Reconciliation of
GAAP to Non-GAAP Research and Development Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Research and
development
|
|
$
71,529
|
|
$
131,764
|
|
$
402,088
|
|
$
416,087
|
|
Amortization of
acquired intangible assets
|
|
(91)
|
|
(529)
|
|
(1,429)
|
|
(2,117)
|
|
Acquisition-related
stock-based compensation
|
|
(14,367)
|
|
(23,703)
|
|
(80,086)
|
|
(44,406)
|
|
Acquisition-related
post-combination expense
|
|
(3,460)
|
|
(2,607)
|
|
(10,646)
|
|
(6,056)
|
|
Restructuring-related
retention bonuses
|
|
(1,339)
|
|
—
|
|
(1,985)
|
|
—
|
|
Restructuring-related
accelerated depreciation
|
|
(2,607)
|
|
—
|
|
(5,918)
|
|
—
|
|
Non-GAAP research and
development
|
|
$
49,665
|
|
$
104,925
|
|
$
302,024
|
|
$
363,508
|
|
Reconciliation of
GAAP to Non-GAAP Selling and Marketing Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Selling and
marketing
|
|
$
46,795
|
|
$
62,205
|
|
$
218,881
|
|
$
225,910
|
|
Amortization of
acquired intangible assets
|
|
(1,595)
|
|
(1,686)
|
|
(6,451)
|
|
(6,748)
|
|
Acquisition-related
stock-based compensation
|
|
(511)
|
|
—
|
|
(2,885)
|
|
(2,696)
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
—
|
|
—
|
|
(38)
|
|
Restructuring-related
retention bonuses
|
|
(243)
|
|
—
|
|
(358)
|
|
—
|
|
Non-GAAP selling and
marketing
|
|
$
44,446
|
|
$
60,519
|
|
$
209,187
|
|
$
216,428
|
|
Reconciliation of
GAAP to Non-GAAP General and Administrative Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
General and
administrative
|
|
$
43,243
|
|
$
50,430
|
|
$
192,314
|
|
$
248,070
|
|
Acquisition-related
stock-based compensation
|
|
(1,119)
|
|
(32)
|
|
(7,775)
|
|
(21,293)
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
(165)
|
|
—
|
|
(35,628)
|
|
Restructuring-related
retention bonuses
|
|
(595)
|
|
—
|
|
(895)
|
|
—
|
|
Restructuring-related
accelerated depreciation
|
|
(71)
|
|
—
|
|
(182)
|
|
—
|
|
Non-GAAP general and
administrative
|
|
$
41,458
|
|
$
50,233
|
|
$
183,462
|
|
$
191,149
|
|
|
Reconciliation of
Operating Expenses to Non-GAAP Operating Expenses
(in
thousands)
(unaudited)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Research and
development
|
|
$
71,529
|
|
$
131,764
|
|
$
402,088
|
|
$
416,087
|
|
Selling and
marketing
|
|
46,795
|
|
62,205
|
|
218,881
|
|
225,910
|
|
General and
administrative
|
|
43,243
|
|
50,430
|
|
192,314
|
|
248,070
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
2,313,047
|
|
—
|
|
Restructuring and other
costs
|
|
10,292
|
|
—
|
|
140,331
|
|
—
|
|
Gain on sale of RUO kit
assets
|
|
(47,354)
|
|
—
|
|
(47,354)
|
|
—
|
|
Change in fair value of
contingent consideration
|
|
—
|
|
190
|
|
(1,850)
|
|
(386,646)
|
|
Operating
expenses
|
|
124,505
|
|
244,589
|
|
3,217,457
|
|
503,421
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
(2,313,047)
|
|
—
|
|
Restructuring and
other costs
|
|
(10,292)
|
|
—
|
|
(140,331)
|
|
—
|
|
Gain on sale of RUO
kit assets
|
|
47,354
|
|
—
|
|
47,354
|
|
—
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
(190)
|
|
1,850
|
|
386,646
|
|
Amortization of
acquired intangible assets
|
|
(1,686)
|
|
(2,215)
|
|
(7,880)
|
|
(8,865)
|
|
Acquisition-related
stock-based compensation
|
|
(15,997)
|
|
(23,735)
|
|
(90,746)
|
|
(68,395)
|
|
Acquisition-related
post-combination expense
|
|
(3,460)
|
|
(2,772)
|
|
(10,646)
|
|
(41,722)
|
|
Restructuring-related
retention bonuses
|
|
(2,177)
|
|
—
|
|
(3,238)
|
|
—
|
|
Restructuring-related
accelerated depreciation
|
|
(2,678)
|
|
—
|
|
(6,100)
|
|
—
|
|
Non-GAAP operating
expenses
|
|
$
135,569
|
|
$
215,677
|
|
$
694,673
|
|
$
771,085
|
|
Reconciliation of
Other Income, Net to Non-GAAP Other Income (Expense),
Net
(in thousands)
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Other income,
net
|
|
$
4,323
|
|
$
15,832
|
|
$
23,960
|
|
$
25,678
|
|
Change in fair value
of acquisition-related liabilities
|
|
(240)
|
|
(16,017)
|
|
(15,906)
|
|
(25,196)
|
|
Non-GAAP other income
(expense), net
|
|
$
4,083
|
|
$
(185)
|
|
$
8,054
|
|
$
482
|
|
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,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Net loss
|
|
$
(99,817)
|
|
$ (205,124)
|
|
$
(3,106,293)
|
|
$ (379,006)
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
2,313,047
|
|
—
|
|
Restructuring and
other costs
|
|
10,292
|
|
—
|
|
140,331
|
|
—
|
|
Gain on sale of RUO
kit assets
|
|
(47,354)
|
|
—
|
|
(47,354)
|
|
—
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
190
|
|
(1,850)
|
|
(386,646)
|
|
Amortization of
acquired intangible assets
|
|
28,636
|
|
17,607
|
|
108,448
|
|
58,835
|
|
Acquisition-related
stock-based compensation
|
|
16,153
|
|
23,876
|
|
91,327
|
|
70,856
|
|
Acquisition-related
post-combination expense
|
|
3,460
|
|
3,251
|
|
11,699
|
|
42,780
|
|
Change in fair value
of acquisition-related
assets and liabilities
|
|
(240)
|
|
(16,017)
|
|
(15,906)
|
|
(22,048)
|
|
Restructuring-related
retention bonuses
|
|
2,259
|
|
—
|
|
3,490
|
|
—
|
|
Restructuring-related
accelerated depreciation
|
|
2,678
|
|
—
|
|
6,100
|
|
—
|
|
Inventory and prepaid
write-offs
|
|
1,712
|
|
—
|
|
18,179
|
|
—
|
|
Acquisition-related
income tax benefit
|
|
235
|
|
(8,480)
|
|
(39,960)
|
|
(39,087)
|
|
Non-GAAP net
loss
|
|
$
(81,986)
|
|
$ (184,697)
|
|
$ (518,742)
|
|
$ (654,316)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
(0.41)
|
|
$
(0.90)
|
|
$
(13.18)
|
|
$
(1.80)
|
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
(0.34)
|
|
$
(0.81)
|
|
$
(2.20)
|
|
$
(3.10)
|
|
Shares used in
computing net loss per share, basic and diluted
|
|
243,948
|
|
226,849
|
|
235,676
|
|
210,946
|
|
Reconciliation of
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted
Cash to Cash Burn
(in thousands)
(unaudited)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March 31,
2022
|
|
June 30,
2022
|
|
September 30,
2022
|
|
December 31,
2022
|
|
December 31,
2022
|
|
Net cash used in
operating activities
|
$
(147,543)
|
|
$
(134,689)
|
|
$
(128,702)
|
|
$ (82,027)
|
|
$
(492,961)
|
|
Net cash (used in)
provided by investing activities
|
(449,456)
|
|
108,965
|
|
43,797
|
|
121,891
|
|
(174,803)
|
|
Net cash (used in)
provided by financing activities
|
(920)
|
|
3,770
|
|
(1,691)
|
|
599
|
|
1,758
|
|
Net (decrease) increase
in cash, cash equivalents and restricted
cash
|
(597,919)
|
|
(21,954)
|
|
(86,596)
|
|
40,463
|
|
(666,006)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
Net changes in
investments
|
428,608
|
|
(125,087)
|
|
(55,212)
|
|
(82,261)
|
|
166,048
|
|
Proceeds from public
offering of common stock, net
|
—
|
|
—
|
|
(9,658)
|
|
—
|
|
(9,658)
|
|
Cash burn
|
$
(169,311)
|
|
$
(147,041)
|
|
$
(151,466)
|
|
$ (41,798)
|
|
$
(509,616)
|
|
|
|
|
|
|
|
|
|
|
|
• Cash burn for the
three months ended June 30, 2022 includes $0.7 million of
acquisition-related payments.
|
|
• Cash burn for the
three months ended September 30, 2022 includes $29.1 million of
restructuring-related cash payments and $14.1 million
of acquisition-related payments.
|
|
• Cash burn for the
three months ended December 31, 2022 includes $44.5 million of
proceeds from the sale of RUO kit assets, $9.3 million
of restructuring-related cash payments and $0.1 million of
acquisition-related payments.
|
Contacts for Invitae:
Investor Relations
Hoki
Luk
ir@invitae.com
Public Relations
Amy
Hadsock
pr@invitae.com
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SOURCE Invitae Corporation