SAN FRANCISCO, Nov. 6, 2019 /PRNewswire/ -- Invitae
Corporation (NYSE: NVTA), a leading medical genetics company, today
announced financial and operating results for the third quarter
ended September 30, 2019.
"With our 26th consecutive quarter of dynamic growth,
we continue to demonstrate our ability to grow the business while
investing in the technologies necessary to drive the transformation
of genetics," said Sean George,
co-founder and chief executive officer of Invitae. "Based on how we
are tracking toward our guidance and our demonstrated ability to
take share and more importantly expand the market, we believe that
we are driving forward as the clear leader in offering
comprehensive, medical genetic information at affordable prices
access all stages of life."
Third Quarter 2019 Financial Results
- Accessioned more than 129,000 samples in the third quarter of
2019, representing a 65% increase over the 78,000 samples in the
third quarter of 2018. Billable volume was approximately 124,000 in
the third quarter of 2019
- Generated revenue of $56.5
million in the third quarter of 2019, representing a 51%
increase over the third quarter of 2018 revenue of $37.4 million
- Reported the average cost per sample at $249 in the third quarter of 2019, representing a
5% reduction from a $262 average cost
per sample in the third quarter of 2018
- Achieved gross profit of $24.4
million in the third quarter of 2019 compared to
$16.9 million of gross profit in the
third quarter of 2018
Total operating expense, which excludes cost of revenue, for the
third quarter of 2019 was $101.4
million (non-GAAP operating expense of $79.8 million) compared to $47.0 million for the third quarter of 2018.
For the third quarter of 2019, Invitae reported a net loss of
$78.7 million, or a $0.82 loss per share, compared to a net loss of
$31.7 million in the third quarter of
2018, or a $0.45 net loss per share.
Non-GAAP net loss was $65.8 million
in the third quarter of 2019, or a $0.69 non-GAAP net loss per share.
As of September 30, 2019, cash,
cash equivalents, restricted cash, and marketable securities
totaled $473.5 million. Net increase
in cash, cash equivalents and restricted cash for the quarter was
$220.0 million. Cash burn for the
quarter was $140.0 million
($40.3 million excluding financing
and acquisition-related items), and includes $85.6 million to repay Oberland (which includes
$1.3 million of accrued interest on
our third quarter 2019 quarterly interest payment) and $15.4 million in Jungla acquisition-related
payments.
Invitae's Corporate and Scientific Highlights
- Acquired Jungla Inc. and its cloud-based platform that further
enhances Invitae's genetic variant interpretation and ability to
deliver high-quality, more affordable genetic testing
- Signed contract with Cigna, effective December 1, 2019. Invitae is now in contract with
all national commercial health plans and has approximately 295
million covered lives in network
- Extended Invitae's genome network with the addition of nine new
biopharma partnerships and launched five Detect programs
-
- Expanded the Behind The Seizure program, which now offers
comprehensive epilepsy panel testing to any child up to 59 months
old who has one unprovoked seizure in the U.S. and Canada
- Signed Abeona as the first biopharma partner as part of the
Detect program for patients with lysosomal storage disorders
- Partnered with the University of
Vermont Health Network on a testing program to offer
proactive genetic screening as part of routine clinical care for
patients in Vermont
- Presented various studies and research at The American Society
of Human Genetics (ASHG) Annual Meeting:
-
- Presented a study on the limitations of a direct-to-consumer
genetic screening strategy for hereditary breast, ovarian, and
colorectal cancer risk which found the vast majority of individuals
with a disease-causing mutation in MUTYH and BRCA1/2 would have
been missed by direct-to-consumer testing, with actual
disease-causing mutations being missed in nearly 100% of people of
certain ancestries
- Highlighting research at the National Society of Genetic
Counselors (NSGC) 37th Annual Conference to help push forward the
science and practice of genetics in patient care
-
- Presenting studies highlighting the potential of genetic
testing to increase early diagnosis of pediatric epilepsy, along
with presentations underscoring the importance of high quality
medical genetic testing and genetic counseling services as consumer
use of genetic health screening continues to grow
- Partnering with NSGC to present the 4th annual Code Talker
award to honor excellence in genetic counseling patient care as
recognized by patients themselves at the conference
- Closed on $350.0 million in
convertible senior notes in an upsized offering and raised
$19.5 million of net proceeds under
our ATM
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 9085356. 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
the leading advanced 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 ended
September 30, 2019; the company's
beliefs regarding estimated guidance for 2019 and future financial
performance; the anticipated effective date of the Cigna contract;
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 ended September 30,
2019 and the year ending December 31,
2019; 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 Quarterly Report on Form 10-Q for
the quarter ended June 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 non-GAAP research and development expense, non-GAAP
general and administrative expense, non-GAAP operating expense,
non-GAAP net loss and net loss per share and cash burn, which are
non-GAAP financial measures. 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 evaluation the
company's ongoing operating results and trends.
Non-GAAP research and development expense, non-GAAP general and
administrative expense, non-GAAP operating expense and non-GAAP net
loss exclude acquisition-related stock-based compensation related
to inducement grants, post-combination expense related to the
acceleration of equity grants in connection with the company's
business combinations, and 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, including proceeds from a public
offering of common stock in March
2019, (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 cash burn, non-GAAP research and development
and general and administrative expense, non-GAAP operating expense,
non-GAAP net loss, or non-GAAP net loss per share 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)
|
|
|
September 30, 2019
|
|
December 31, 2018
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
467,012
|
|
|
$
|
112,158
|
|
Marketable
securities
|
300
|
|
|
13,727
|
|
Accounts
receivable
|
26,740
|
|
|
26,296
|
|
Prepaid expenses and
other current assets
|
14,477
|
|
|
13,258
|
|
Total current
assets
|
508,529
|
|
|
165,439
|
|
Property and
equipment, net
|
32,177
|
|
|
27,886
|
|
Operating lease
assets
|
39,112
|
|
|
—
|
|
Restricted
cash
|
6,183
|
|
|
6,006
|
|
Intangible assets,
net
|
99,740
|
|
|
30,469
|
|
Goodwill
|
99,851
|
|
|
50,095
|
|
Other
assets
|
4,795
|
|
|
3,064
|
|
Total
assets
|
$
|
790,387
|
|
|
$
|
282,959
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
8,863
|
|
|
$
|
7,812
|
|
Accrued
liabilities
|
53,251
|
|
|
26,563
|
|
Operating lease
obligations
|
5,186
|
|
|
—
|
|
Finance lease
obligations
|
1,636
|
|
|
1,937
|
|
Total current
liabilities
|
68,936
|
|
|
36,312
|
|
Operating lease
obligations, net of current portion
|
44,408
|
|
|
—
|
|
Finance lease
obligations, net of current portion
|
168
|
|
|
1,375
|
|
Debt
|
—
|
|
|
74,477
|
|
Convertible senior
notes, net
|
265,194
|
|
|
—
|
|
Other long-term
liabilities
|
7,800
|
|
|
8,956
|
|
Total
liabilities
|
386,506
|
|
|
121,120
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
10
|
|
|
8
|
|
Accumulated other
comprehensive loss
|
—
|
|
|
(5)
|
|
Additional paid-in
capital
|
1,085,643
|
|
|
678,548
|
|
Accumulated
deficit
|
(681,772)
|
|
|
(516,712)
|
|
Total stockholders'
equity
|
403,881
|
|
|
161,839
|
|
Total liabilities and
stockholders' equity
|
$
|
790,387
|
|
|
$
|
282,959
|
|
INVITAE
CORPORATION
|
|
Consolidated
Statements of Operations
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
Test
revenue
|
$
|
55,502
|
|
|
$
|
36,611
|
|
|
$
|
147,423
|
|
|
$
|
100,014
|
|
Other
revenue
|
1,009
|
|
|
755
|
|
|
3,116
|
|
|
2,329
|
|
Total
revenue
|
56,511
|
|
|
37,366
|
|
|
150,539
|
|
|
102,343
|
|
Cost of
revenue
|
32,120
|
|
|
20,441
|
|
|
81,380
|
|
|
58,964
|
|
Research and
development
|
46,951
|
|
|
15,776
|
|
|
90,247
|
|
|
46,926
|
|
Selling and
marketing
|
32,690
|
|
|
17,591
|
|
|
87,662
|
|
|
55,222
|
|
General and
administrative
|
21,733
|
|
|
13,668
|
|
|
56,326
|
|
|
37,884
|
|
Loss from
operations
|
(76,983)
|
|
|
(30,110)
|
|
|
(165,076)
|
|
|
(96,653)
|
|
Other income
(expense), net
|
(7,591)
|
|
|
231
|
|
|
(5,572)
|
|
|
2,066
|
|
Interest
expense
|
(2,833)
|
|
|
(1,844)
|
|
|
(7,062)
|
|
|
(4,927)
|
|
Net loss before
taxes
|
(87,407)
|
|
|
(31,723)
|
|
|
(177,710)
|
|
|
(99,514)
|
|
Income tax
benefit
|
(8,700)
|
|
|
—
|
|
|
(12,650)
|
|
|
—
|
|
Net loss
|
$
|
(78,707)
|
|
|
$
|
(31,723)
|
|
|
$
|
(165,060)
|
|
|
$
|
(99,514)
|
|
Net loss per share,
basic and diluted
|
$
|
(0.82)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.86)
|
|
|
$
|
(1.56)
|
|
Shares used in
computing net loss per share, basic and diluted
|
95,577
|
|
|
70,153
|
|
|
88,663
|
|
|
63,935
|
|
INVITAE
CORPORATION
|
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
|
(165,060)
|
|
|
$
|
(99,514)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Depreciation and
amortization
|
11,135
|
|
|
10,268
|
|
Stock-based
compensation
|
47,826
|
|
|
15,711
|
|
Amortization of debt
discount and issuance costs
|
855
|
|
|
681
|
|
Impairment
losses
|
—
|
|
|
1,883
|
|
Benefit from income
taxes
|
(12,650)
|
|
|
—
|
|
Debt extinguishment
costs
|
8,926
|
|
|
—
|
|
Other
|
901
|
|
|
626
|
|
Changes in operating
assets and liabilities, net of businesses acquired:
|
|
|
|
Accounts
receivable
|
(444)
|
|
|
(4,483)
|
|
Prepaid expenses and
other current assets
|
(1,424)
|
|
|
(1,060)
|
|
Other
assets
|
2,369
|
|
|
(555)
|
|
Accounts
payable
|
87
|
|
|
(1,226)
|
|
Accrued expenses and
other liabilities
|
9,692
|
|
|
922
|
|
Net cash used in
operating activities
|
(97,787)
|
|
|
(76,747)
|
|
Cash flows from
investing activities:
|
|
|
|
Purchases of
marketable securities
|
(20,781)
|
|
|
(1,575)
|
|
Proceeds from sales
of marketable securities
|
—
|
|
|
19,965
|
|
Proceeds from
maturities of marketable securities
|
34,500
|
|
|
10,957
|
|
Acquisition of
businesses, net of cash acquired
|
(9,801)
|
|
|
—
|
|
Purchases of property
and equipment
|
(13,530)
|
|
|
(4,258)
|
|
Other
|
—
|
|
|
(500)
|
|
Net cash provided by
(used in) investing activities
|
(9,612)
|
|
|
24,589
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from public
offerings of common stock, net
|
204,024
|
|
|
112,480
|
|
Proceeds from
issuance of common stock, net
|
5,734
|
|
|
10,732
|
|
Proceeds from
issuance of convertible senior notes, net
|
339,900
|
|
|
—
|
|
Proceeds from
issuance of debt, net
|
—
|
|
|
19,544
|
|
Payments of debt
extinguishment costs
|
(10,638)
|
|
|
—
|
|
Loan
payments
|
(75,000)
|
|
|
—
|
|
Finance lease
principal payments
|
(1,590)
|
|
|
(1,632)
|
|
Net cash provided by
financing activities
|
462,430
|
|
|
141,124
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
355,031
|
|
|
88,966
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
118,164
|
|
|
17,459
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
473,195
|
|
|
$
|
106,425
|
|
INVITAE
CORPORATION
|
|
Reconciliation of
GAAP to Non-GAAP Research and Development Expense
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Research and
development
|
$
|
46,951
|
|
|
$
|
15,776
|
|
|
$
|
90,247
|
|
|
$
|
46,926
|
|
Acquisition-related
stock-based compensation
|
(18,613)
|
|
|
—
|
|
|
(21,199)
|
|
|
—
|
|
Non-GAAP research and
development
|
$
|
28,338
|
|
|
$
|
15,776
|
|
|
$
|
69,048
|
|
|
$
|
46,926
|
|
|
|
Reconciliation of
GAAP to Non-GAAP General and Administrative Expense
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
General and
administrative
|
$
|
21,733
|
|
|
$
|
13,668
|
|
|
$
|
56,326
|
|
|
$
|
37,884
|
|
Acquisition-related
post-combination expense
|
(2,946)
|
|
|
—
|
|
|
(6,158)
|
|
|
—
|
|
Non-GAAP general and
administrative
|
$
|
18,787
|
|
|
$
|
13,668
|
|
|
$
|
50,168
|
|
|
$
|
37,884
|
|
|
|
Reconciliation of
Operating Expense to Non-GAAP Operating Expense
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Research and
development
|
$
|
46,951
|
|
|
$
|
15,776
|
|
|
$
|
90,247
|
|
|
$
|
46,926
|
|
Selling and
marketing
|
32,690
|
|
|
17,591
|
|
|
87,662
|
|
|
55,222
|
|
General and
administrative
|
21,733
|
|
|
13,668
|
|
|
56,326
|
|
|
37,884
|
|
Operating
expense
|
101,374
|
|
|
47,035
|
|
|
234,235
|
|
|
140,032
|
|
Acquisition-related
stock-based compensation
|
(18,613)
|
|
|
—
|
|
|
(21,199)
|
|
|
—
|
|
Acquisition-related
post-combination expense
|
(2,946)
|
|
|
—
|
|
|
(6,158)
|
|
|
—
|
|
Non-GAAP operating
expense
|
$
|
79,815
|
|
|
$
|
47,035
|
|
|
$
|
206,878
|
|
|
$
|
140,032
|
|
|
|
Reconciliation of
Net Loss to Non-GAAP Net Loss Per Share
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net loss
|
$
|
(78,707)
|
|
|
$
|
(31,723)
|
|
|
$
|
(165,060)
|
|
|
$
|
(99,514)
|
|
Acquisition-related
stock-based compensation
|
18,613
|
|
|
—
|
|
|
21,199
|
|
|
—
|
|
Acquisition-related
post-combination expense
|
2,946
|
|
|
—
|
|
|
6,158
|
|
|
—
|
|
Acquisition-related
income tax benefit
|
(8,700)
|
|
|
—
|
|
|
(12,650)
|
|
|
—
|
|
Non-GAAP net
loss
|
$
|
(65,848)
|
|
|
$
|
(31,723)
|
|
|
$
|
(150,353)
|
|
|
$
|
(99,514)
|
|
|
|
|
|
|
|
|
|
Non-GAAP net loss per
share, basic and diluted
|
$
|
(0.69)
|
|
|
$
|
(0.45)
|
|
|
$
|
(1.70)
|
|
|
$
|
(1.56)
|
|
Shares used in
computing net loss per share, basic and diluted
|
95,577
|
|
|
70,153
|
|
|
88,663
|
|
|
63,935
|
|
INVITAE
CORPORATION
|
|
Reconciliation of
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted
Cash to Cash Burn
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended March
31, 2019
|
|
Three Months
Ended June 30,
2019
|
|
Three Months
Ended
September 30,
2019
|
|
Nine Months
Ended
September 30,
2019
|
Net cash used in
operating activities
|
$
|
(28,366)
|
|
|
$
|
(32,725)
|
|
|
$
|
(36,696)
|
|
|
$
|
(97,787)
|
|
Net cash provided by
(used in) investing activities
|
(17,545)
|
|
|
25,133
|
|
|
(17,200)
|
|
|
(9,612)
|
|
Net cash provided by
financing activities
|
186,120
|
|
|
2,462
|
|
|
273,848
|
|
|
462,430
|
|
Net increase
(decrease) in cash, cash equivalents and restricted cash
|
140,209
|
|
|
(5,130)
|
|
|
219,952
|
|
|
355,031
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
Purchases of
investments
|
20,781
|
|
|
—
|
|
|
—
|
|
|
20,781
|
|
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)
|
|
|
(171)
|
|
Cash burn
|
$
|
(29,588)
|
|
|
$
|
(33,155)
|
|
|
$
|
(140,040)
|
|
|
$
|
(202,783)
|
|
|
|
•
|
Cash burn for the
three and nine months ended September 30, 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 $15.4
million paid in connection with the acquisition of Jungla
Inc.
|
Contact:
Laura
D'Angelo
ir@invitae.com
(628) 213-3369
View original content to download
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SOURCE Invitae Corporation