— Executing toward 2022 plan, generating near 20% revenue
growth, with $885 million in
ending cash*, an annualized burn reduction of greater than
$100 million —
— Broad OPEX controls and portfolio optimization to decrease
spend, extend runway through 2023—
— Company lays out path for continued industry-leading growth
while achieving positive operating cash flow by end of 2025
—
— Technology Day investor forum to be held week of
July 11, roadmap for the creation of
a new category in healthcare —
— Conference call and webcast today at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time —
SAN
FRANCISCO, May 3, 2022 /PRNewswire/ -- Invitae
(NYSE: NVTA), a leading medical genetics company, today
announced financial and operating results for the first quarter
ended March 31, 2022.
"The power of personal health information, enabled by a new
breed of patient and clinician workflow tools, further combined
with real world data, is an immense opportunity to shape the future
of medicine. And while the proof points supporting our model of
enabling a new era in healthcare continue to materialize, we are in
an exceptionally volatile period in our economy, one that demands
that we as a company accelerate our drive for operational
efficiency and sustainable operating cash flows," said Sean George, Ph.D., co-founder and CEO of
Invitae. "The Invitae team is resolute across the organization to
execute and alter course where necessary. We communicated and
exceeded our plan to reverse the cash burn trend in the business in
the first quarter. Following that success, we are now taking more
aggressive steps to accelerate our pathway to capital independence
- continuing to drive revenue growth, stabilize operating expenses,
optimize our portfolio, and invest in the most important strategic
imperatives and near-term drivers of revenue and margin. We plan to
substantially decrease our burn throughout this year and next,
extending our cash runway through 2023. Invitae's broad portfolio
and scalable model enables us to begin driving further operating
leverage and we look forward to updating you on our progress along
the way."
First Quarter 2022 Highlights
- Generated revenue of $123.7
million in the quarter, a 19.4% increase compared to
$103.6 million in the first quarter
of 2021. Q1 exit revenue trajectory tracking to annual revenue
guidance.
- Cash, cash equivalents, restricted cash and marketable
securities were $885 million as
compared with $1.06 billion as of
December 31, 2021. Cash burn was
$169 million, achieving a
$26 million reduction for the first
quarter of 2022, or over $100 million
on an annualized basis.
- Total active healthcare provider accounts in the first quarter
of 2022 totaled 19,436, more than 31% growth over the first quarter
of 2021.
- Active pharma and commercial partnerships grew to 206, an
increase of approximately 72% over the first quarter of 2021,
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 2.8 million with nearly
62% available for data sharing.
- Gross profit was $26.6 million,
and non-GAAP gross profit was $45.2
million in the first quarter of this year.
*Includes cash, cash
equivalents, restricted cash and marketable securities.
|
Total operating expense, which excludes cost of revenue, for the
first quarter of 2022 was $239.8
million compared to $140.5
million in the prior year period. Compared to the fourth
quarter of 2021, operating expense in the first quarter of 2022
decreased by $4.8 million while
non-GAAP operating expense decreased by $6.7
million. Non-GAAP operating expense was $209.0 million in the first quarter of 2022
compared to $155.4 million in the
prior year period.
Net loss for this year's first quarter was $181.9 million, or a $0.80 net loss per share, compared to
$109.5 million, or a $0.56 net loss per share, for the first quarter
of 2021. Non-GAAP net loss for the first quarter of 2022 was
$177.4 million, or a $0.78 non-GAAP net loss per share.
At March 31, 2022, cash, cash equivalents, restricted cash
and marketable securities totaled $885
million as compared with $1.06
billion as of December 31, 2021. Cash burn in this
year's first quarter, including cash paid for acquisition related
activities, was $169.3 million, a
decrease of $26.3 million, or 13.5%
from the fourth quarter of 2021.
Accelerated burn reduction to extend cash
runway
Invitae is committed to reaching positive operating
cash flow by the end of 2025 while driving industry-leading growth
along the way. Building off of progress made to this year's target
of a $200+ million reduction in burn rate, the company will drive
for additional reductions of $600
million over the next three years with continued OPEX
controls, margin improvement, operating leverage and portfolio
optimization. The result of these improvements is expected to push
the current cash runway to the end of 2023 or beyond.
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.incommglobalevents.com/registration/q4inc/10749/invitae/#39s-first-quarter-2022-financial-results-conference-call/
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 vision and business model; the company's
future financial and operating results; the company's expectations
regarding future growth, reduction in
burn rate and cash runway; and the company's expectations regarding
being operating cash flow positive, including steps to achieve the
goal and the timing thereof. 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 company's ability to
successfully alter its course in response to events; the success of
company's efforts to achieve operational efficiency and sustainable
operating cash flows, and decrease cash burn; 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 Annual Report on Form 10-K for the
year ended December 31, 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
company's 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 changes in marketable securities. 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)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash equivalents
|
$ 325,331
|
|
$ 923,250
|
Marketable securities
|
549,381
|
|
122,121
|
Accounts receivable
|
80,399
|
|
66,227
|
Inventory
|
43,457
|
|
33,516
|
Prepaid expenses and other current assets
|
32,037
|
|
33,691
|
Total current assets
|
1,030,605
|
|
1,178,805
|
Property and equipment,
net
|
129,959
|
|
114,714
|
Operating lease
assets
|
117,333
|
|
121,169
|
Restricted
cash
|
10,275
|
|
10,275
|
Intangible assets,
net
|
1,167,841
|
|
1,187,994
|
Goodwill
|
2,283,059
|
|
2,283,059
|
Other assets
|
28,693
|
|
23,551
|
Total assets
|
$
4,767,765
|
|
$
4,919,567
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts payable
|
$
41,701
|
|
$
21,127
|
Accrued liabilities
|
108,498
|
|
106,453
|
Operating lease obligations
|
12,301
|
|
12,359
|
Finance lease obligations
|
5,400
|
|
4,156
|
Total current
liabilities
|
167,900
|
|
144,095
|
Operating lease
obligations, net of current portion
|
121,849
|
|
124,369
|
Finance lease
obligations, net of current portion
|
7,609
|
|
5,683
|
Debt
|
115,626
|
|
113,391
|
Convertible senior
notes, net
|
1,465,786
|
|
1,464,138
|
Deferred tax
liability
|
15,796
|
|
51,696
|
Other long-term
liabilities
|
29,266
|
|
37,797
|
Total liabilities
|
1,923,832
|
|
1,941,169
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common stock
|
23
|
|
23
|
Accumulated other comprehensive loss
|
(785)
|
|
(7)
|
Additional paid-in capital
|
4,749,402
|
|
4,701,230
|
Accumulated deficit
|
(1,904,707)
|
|
(1,722,848)
|
Total stockholders'
equity
|
2,843,933
|
|
2,978,398
|
Total liabilities and
stockholders' equity
|
$
4,767,765
|
|
$
4,919,567
|
INVITAE CORPORATION
|
|
Consolidated
Statements of Operations
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Revenue:
|
|
|
|
|
Test revenue
|
|
$
119,497
|
|
$ 99,276
|
Other revenue
|
|
4,194
|
|
4,345
|
Total revenue
|
|
123,691
|
|
103,621
|
Cost of
revenue
|
|
97,116
|
|
75,491
|
Research and
development
|
|
128,236
|
|
80,358
|
Selling and
marketing
|
|
60,144
|
|
51,240
|
General and
administrative
|
|
51,274
|
|
72,517
|
Change in fair value of
contingent consideration
|
|
154
|
|
(63,621)
|
Total costs and operating
expenses
|
|
336,924
|
|
215,985
|
Loss from operations
|
|
(213,233)
|
|
(112,364)
|
Other income,
net
|
|
10,439
|
|
4,465
|
Interest
expense
|
|
(13,985)
|
|
(8,393)
|
Net loss before
taxes
|
|
(216,779)
|
|
(116,292)
|
Income tax
benefit
|
|
(34,920)
|
|
(6,800)
|
Net loss
|
|
$
(181,859)
|
|
$
(109,492)
|
Net loss per share,
basic and diluted
|
|
$
(0.80)
|
|
$
(0.56)
|
Shares used in
computing net loss per share, basic and diluted
|
|
228,470
|
|
194,000
|
INVITAE CORPORATION
|
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
Three Months Ended March 31,
|
|
2022
|
|
2021
|
Cash flows from operating
activities:
|
|
|
|
Net loss
|
$
(181,859)
|
|
$
(109,492)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and amortization
|
27,100
|
|
16,574
|
Stock-based compensation
|
46,822
|
|
58,775
|
Amortization of debt discount and issuance costs
|
3,883
|
|
2,735
|
Remeasurements of liabilities associated with business
combinations
|
(9,849)
|
|
(66,999)
|
Benefit from income taxes
|
(34,920)
|
|
(6,800)
|
Post-combination expense for acceleration of unvested equity
and deferred
stock compensation
|
1,660
|
|
2,959
|
Amortization of premiums and discounts on investment
securities
|
570
|
|
1,549
|
Other
|
1,806
|
|
2,241
|
Changes in operating
assets and liabilities, net of businesses acquired:
|
|
|
|
Accounts receivable
|
(14,172)
|
|
2,814
|
Inventory
|
(9,941)
|
|
1,374
|
Prepaid expenses and other current assets
|
1,654
|
|
(11,237)
|
Other assets
|
(1,984)
|
|
811
|
Accounts payable
|
22,863
|
|
10,232
|
Accrued expenses and other long-term liabilities
|
(1,176)
|
|
4,944
|
Net cash used in operating
activities
|
(147,543)
|
|
(89,520)
|
Cash flows from investing
activities:
|
|
|
|
Purchases of marketable
securities
|
(550,541)
|
|
(325,956)
|
Proceeds from
maturities of marketable securities
|
121,933
|
|
74,763
|
Acquisition of
businesses, net of cash acquired
|
—
|
|
(14,954)
|
Purchases of property
and equipment
|
(20,848)
|
|
(6,431)
|
Other
|
—
|
|
(980)
|
Net cash used in investing activities
|
(449,456)
|
|
(273,558)
|
Cash flows from financing
activities:
|
|
|
|
Proceeds from public
offerings of common stock, net
|
—
|
|
434,263
|
Proceeds from issuance
of common stock
|
425
|
|
2,551
|
Finance lease principal
payments
|
(1,330)
|
|
(723)
|
Other
|
(15)
|
|
—
|
Net cash (used in) provided by financing
activities
|
(920)
|
|
436,091
|
Net (decrease) increase in cash, cash equivalents and
restricted cash
|
(597,919)
|
|
73,013
|
Cash, cash equivalents and restricted cash at
beginning of period
|
933,525
|
|
131,480
|
Cash, cash equivalents and restricted cash at end of
period
|
$
335,606
|
|
$
204,493
|
Reconciliation of
GAAP to Non-GAAP Cost of Revenue
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Cost of
revenue
|
|
$ 97,116
|
|
$ 75,491
|
Amortization of acquired intangible assets
|
|
(18,000)
|
|
(9,833)
|
Acquisition-related stock-based compensation
|
|
(132)
|
|
(934)
|
Acquisition-related post-combination expense
|
|
(504)
|
|
—
|
Fair value adjustments to acquisition-related
assets
|
|
—
|
|
(1,574)
|
Non-GAAP cost of
revenue
|
|
$ 78,480
|
|
$ 63,150
|
Reconciliation of
GAAP to Non-GAAP Gross Profit
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Revenue
|
|
$
123,691
|
|
$
103,621
|
Cost of
revenue
|
|
97,116
|
|
75,491
|
Gross profit
|
|
26,575
|
|
28,130
|
Amortization of acquired intangible assets
|
|
18,000
|
|
9,833
|
Acquisition-related stock-based compensation
|
|
132
|
|
934
|
Acquisition-related post-combination expense
|
|
504
|
|
—
|
Fair value adjustments to acquisition-related
assets
|
|
—
|
|
1,574
|
Non-GAAP gross
profit
|
|
$ 45,211
|
|
$ 40,471
|
Reconciliation of
GAAP to Non-GAAP Research and Development
Expense
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Research and
development
|
|
$
128,236
|
|
$ 80,358
|
Amortization of acquired intangible assets
|
|
(530)
|
|
(530)
|
Acquisition-related stock-based compensation
|
|
(23,769)
|
|
(10,473)
|
Acquisition-related post-combination expense
|
|
(2,581)
|
|
(60)
|
Non-GAAP research and
development
|
|
$
101,356
|
|
$ 69,295
|
Reconciliation of
GAAP to Non-GAAP Selling and Marketing
Expense
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Selling and
marketing
|
|
$ 60,144
|
|
$ 51,240
|
Amortization of acquired intangible assets
|
|
(1,624)
|
|
(1,692)
|
Acquisition-related stock-based compensation
|
|
(583)
|
|
(1,233)
|
Acquisition-related post-combination expense
|
|
—
|
|
(40)
|
Non-GAAP selling and
marketing
|
|
$ 57,937
|
|
$ 48,275
|
Reconciliation of
GAAP to Non-GAAP General and Administrative
Expense
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
General and
administrative
|
|
$ 51,274
|
|
$ 72,517
|
Acquisition-related stock-based compensation
|
|
(1,572)
|
|
(30,974)
|
Acquisition-related post-combination expense
|
|
—
|
|
(3,742)
|
Non-GAAP general and
administrative
|
|
$ 49,702
|
|
$ 37,801
|
Reconciliation of
Operating Expense to Non-GAAP Operating
Expense
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Research and
development
|
|
$
128,236
|
|
$ 80,358
|
Selling and
marketing
|
|
60,144
|
|
51,240
|
General and
administrative
|
|
51,274
|
|
72,517
|
Change in fair value of
contingent consideration
|
|
154
|
|
(63,621)
|
Operating
expense
|
|
239,808
|
|
140,494
|
Amortization of acquired intangible assets
|
|
(2,154)
|
|
(2,222)
|
Acquisition-related stock-based compensation
|
|
(25,924)
|
|
(42,680)
|
Acquisition-related post-combination expense
|
|
(2,581)
|
|
(3,842)
|
Fair value adjustments to acquisition-related
liabilities
|
|
(154)
|
|
63,621
|
Non-GAAP operating
expense
|
|
$
208,995
|
|
$
155,371
|
Reconciliation of
Other Income, Net to Non-GAAP Other Income,
Net
|
(in
thousands)
|
(unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Other income,
net
|
|
$ 10,439
|
|
$
4,465
|
Fair value adjustments to acquisition-related
liabilities
|
|
(10,003)
|
|
(3,378)
|
Non-GAAP other income,
net
|
|
$
436
|
|
$
1,087
|
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
March 31,
|
|
|
2022
|
|
2021
|
Net loss
|
|
$
(181,859)
|
|
$
(109,492)
|
Amortization of acquired intangible assets
|
|
20,154
|
|
12,055
|
Acquisition-related stock-based compensation
|
|
26,056
|
|
43,614
|
Acquisition-related post-combination expense
|
|
3,085
|
|
3,842
|
Fair value adjustments to acquisition-related assets and
liabilities
|
|
(9,849)
|
|
(65,425)
|
Acquisition-related income tax benefit
|
|
(35,000)
|
|
(6,800)
|
Non-GAAP net
loss
|
|
$
(177,413)
|
|
$
(122,206)
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
(0.80)
|
|
$
(0.56)
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
(0.78)
|
|
$
(0.63)
|
Shares used in
computing net loss per share, basic and diluted
|
|
228,470
|
|
194,000
|
Reconciliation of
Net Decrease in Cash, Cash Equivalents and Restricted Cash to Cash
Burn
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months Ended
|
|
March 31, 2022
|
|
Net cash used in
operating activities
|
$
(147,543)
|
|
Net cash used in in
investing activities
|
(449,456)
|
|
Net cash used in
financing activities
|
(920)
|
|
Net decrease in cash,
cash equivalents and restricted cash
|
(597,919)
|
|
Adjustments:
|
|
|
Net
changes in investments
|
428,608
|
|
Cash burn
|
$
(169,311)
|
|
|
|
|
Contact for Invitae:
Jack Finks
ir@invitae.com
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multimedia:https://www.prnewswire.com/news-releases/invitae-reports-123-7-million-in-revenue-in-first-quarter-of-2022-and-extends-cash-runway-301538922.html
SOURCE Invitae Corporation