SAN FRANCISCO, Feb. 19, 2019 /PRNewswire/ -- Invitae
Corporation (NYSE: NVTA), a leading genetics company, today
announced financial and operating results for the fourth quarter
and full year ended December 31,
2018.
"In just five years, we have provided more than half a million
people with high quality, comprehensive, affordable genetic
information to inform healthcare decisions across all stages of
life," said Sean George, co-founder
and chief executive officer of Invitae. "We believe we're on an
unprecedented growth trajectory that translates into better health
decisions informed by genetic information. Our seemingly audacious
mission to bring genetics into mainstream medicine and benefit
people through all stages of life, is coming into clear focus - not
only in diagnosing disease, but in helping people as they think
about starting a family or informing those who want to be proactive
about their health."
Full Year and Fourth Quarter 2018 Financial Results
- Increased test volume by 102% year-over-year:
-
- Accessioned approximately 303,000 samples in 2018, including
approximately 87,000 samples in the fourth quarter, which exceeded
the increased 2018 guidance of more than 285,000 samples expected
in 2018
- Increased revenue by 117% year-over-year:
-
- Generated revenue of $147.7
million in 2018, including $45.4
million in the fourth quarter, which exceeded the increased
2018 guidance range of $140-145
million expected in 2018
- Includes $1.9 million in payments
from Medicare for Lynch syndrome analysis
- Decreased cost of goods sold (COGS) per sample by 24%
year-over-year:
-
- Drove down COGS per sample to $243 in the fourth quarter
- Improved gross profit by 274% year-over-year:
-
- Achieved gross profit of $67.6
million in 2018, including $24.2
million in the fourth quarter
- Reported 46% gross margins in 2018, including 53% gross margins
in the fourth quarter
Total operating expenses, which excludes cost of revenue, for
the full year 2018 were $190.2
million compared to $139.4
million in 2017. Operating expenses for the fourth quarter
of 2018 were $50.1 million compared
to $43.2 million in the fourth
quarter of 2017. For the full year 2018, net loss was $129.4 million, or a $1.94 net loss per share compared to a net loss
of $123.4 million, or a $2.65 net loss per share, for the full year 2017.
For the fourth quarter of 2018, Invitae reported a net loss of
$29.8 million, or a $0.40 net loss per share, compared to a net loss
of $40.5 million in the fourth
quarter of 2017, or a $0.78 net loss
per share.
At December 31, 2018, cash, cash
equivalents, restricted cash, and marketable securities totaled
$131.9 million. Net increase in cash,
cash equivalents and restricted cash was $100.7 million in 2018 and $11.7 million for the fourth quarter, and cash
burn was $97.6 million in 2018 and
$17.0 million for the fourth
quarter.
Corporate and Scientific Highlights
- Published data in the in Journal of Clinical Oncology by
researchers from the TME Breast Care Network and Invitae showing
that current guidelines for genetic testing of breast cancer
patients miss as many patients with pathogenic variants as they
find.
- Partnered with researchers at Tulane Cancer Center on the
largest study to date on the genetics of prostate cancer. Published
in JAMA Oncology, the study found that guidelines for
genetic testing at the time of the study missed a substantial
number of patients, suggesting broader genetic testing for prostate
cancer is warranted.
- Announced plans to launch a new patient-initiated testing
channel in the second quarter of 2019, which will allow consumers
to initiate a comprehensive genetic test themselves, making it
easier than ever for patients to get medically actionable genetic
information that can inform health decisions.
- Announced the launch of non-invasive prenatal screening (NIPS)
as our most recent addition to Invitae's comprehensive women's
health genetic testing services, providing patients with easier
access to affordable genetic testing in early pregnancy.
- Continued the expansion of our network, signing 11 new
partnerships with biopharma companies, health systems, and major
cancer centers since the beginning of the fourth quarter.
Webcast and Conference Call Details
Management will
host a conference call and webcast today at 4:30 p.m. Eastern / 1:30 p.m. Pacific to
discuss financial results and recent developments. The dial-in
numbers for the conference call are (866) 393-4306 for domestic
callers and (734) 385-2616 for international callers, and the
reservation number for both is 6799673. Following prepared remarks,
management will respond to questions from investors and analysts,
subject to time limitations.
The live webcast of the call may be accessed by visiting the
investors section of the company's website at ir.invitae.com.
A replay of the webcast will be available shortly after the
conclusion of the call and will be archived on the company's
website.
About Invitae
Invitae Corporation (NYSE:
NVTA) is a leading genetics company, whose mission is to
bring comprehensive genetic information into mainstream
medicine to improve healthcare for billions of people. Invitae's
goal is to aggregate the world's genetic tests into a single
service with higher quality, faster turnaround time, and lower
prices. For more information, visit the company's website
at invitae.com.
Safe Harbor Statement
This press release
contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including
statements relating to the company's financial results for 2018;
future financial performance and estimated guidance for 2019; and
the company's beliefs regarding the growth of its business, its
success in executing on its mission and the benefits of genetic
testing. Forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially,
and reported results should not be considered as an indication of
future performance. These risks and uncertainties include, but are
not limited to: the actual result for the fourth quarter and full
year 2018, the year-end close process and audit of the company's
financial statements; the company's ability to continue to grow its
business; the company's history of losses; the company's ability to
compete; the company's failure to manage growth effectively; the
company's need to scale its infrastructure in advance of demand for
its tests and to increase demand for its tests; the risk that the
company may not obtain or maintain sufficient levels of
reimbursement for its tests; the company's failure to successfully
integrate or fully realize the anticipated benefits of acquired
businesses; the company's ability to use rapidly changing genetic
data to interpret test results accurately and consistently;
security breaches, loss of data and other disruptions; laws and
regulations applicable to the company's business; and the other
risks set forth in the company's filings with the Securities and
Exchange Commission, including the risks set forth in the company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 2018. These forward-looking
statements speak only as of the date hereof, and Invitae
Corporation disclaims any obligation to update these
forward-looking statements.
Non-GAAP Financial Measures
To supplement Invitae's
consolidated financial statements prepared in accordance with
generally accepted accounting principles in the United States (GAAP), the company monitors
and considers cash burn, which is a non-GAAP financial measure.
This non-GAAP financial measure is not based on any standardized
methodology prescribed by GAAP and is not necessarily comparable to
similarly-titled measures presented by other companies. Cash burn
excludes (1) changes in marketable securities other than
investments made in privately held companies, (2) cash received
from equity financings, including proceeds received from a
Securities Purchase Agreement in November
2018, (3) cash received from loan proceeds and loan
payments, (4) cash paid for debt extinguishment and (5) cash
received from exercises of acquisition-related warrants. Management
believes cash burn is a liquidity measure that provides useful
information to management and investors about the amount of cash
consumed by the operations of the business. A limitation of using
this non-GAAP measure is that cash burn does not represent the
total change in cash, cash equivalents, and restricted cash for the
period because it excludes cash provided by or used for other
operating, investing or financing activities. Management accounts
for this limitation by providing information about its operating,
investing and financing activities in the statements of cash flows
in its consolidated financial statements in its most recent
Quarterly Report on Form 10-Q and Annual Report on Form 10-K and by
presenting net cash provided by (used in) operating, investing and
financing activities as well as the net increase in cash, cash
equivalents and restricted cash in its reconciliation of cash burn.
In addition, other companies, including companies in the same
industry, may not use cash burn, may calculate cash burn in a
different manner than management or may use other financial
measures to evaluate their performance, all of which could reduce
the usefulness of cash burn as a comparative measure.
Because of these limitations, cash burn should not be considered
in isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of net increase in cash, cash equivalents
and restricted cash to cash burn provided in the table below.
INVITAE
CORPORATION
|
|
Consolidated
Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
December 31,
2018
|
|
December 31,
2017
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
112,158
|
|
|
$
|
12,053
|
|
Marketable
securities
|
13,727
|
|
|
52,607
|
|
Accounts
receivable
|
26,296
|
|
|
10,422
|
|
Prepaid expenses and
other current assets
|
13,258
|
|
|
11,599
|
|
Total
current assets
|
165,439
|
|
|
86,681
|
|
Property and
equipment, net
|
27,886
|
|
|
30,341
|
|
Restricted
cash
|
6,006
|
|
|
5,406
|
|
Marketable
securities, non-current
|
—
|
|
|
5,983
|
|
Intangible assets,
net
|
30,469
|
|
|
35,516
|
|
Goodwill
|
50,095
|
|
|
46,575
|
|
Other
assets
|
3,064
|
|
|
576
|
|
Total
assets
|
$
|
282,959
|
|
|
$
|
211,078
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
7,812
|
|
|
$
|
8,606
|
|
Accrued
liabilities
|
26,563
|
|
|
22,742
|
|
Capital lease
obligation, current portion
|
1,937
|
|
|
2,039
|
|
Total current
liabilities
|
36,312
|
|
|
33,387
|
|
Capital lease
obligation, net of current portion
|
1,375
|
|
|
3,373
|
|
Debt
|
74,477
|
|
|
39,084
|
|
Other long-term
liabilities
|
8,956
|
|
|
13,440
|
|
Total
liabilities
|
121,120
|
|
|
89,284
|
|
Stockholders'
equity:
|
|
|
|
Common
stock
|
8
|
|
|
5
|
|
Accumulated other
comprehensive loss
|
(5)
|
|
|
(171)
|
|
Additional paid-in
capital
|
678,548
|
|
|
520,558
|
|
Accumulated
deficit
|
(516,712)
|
|
|
(398,598)
|
|
Total stockholders'
equity
|
161,839
|
|
|
121,794
|
|
Total
liabilities and stockholders' equity
|
$
|
282,959
|
|
|
$
|
211,078
|
|
INVITAE
CORPORATION
|
|
Consolidated
Statements of Operations
|
(in thousands, except
per share data)
|
(unaudited)
|
|
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Revenue:
|
|
|
|
|
|
|
|
|
Test
revenue
|
|
$
|
44,546
|
|
|
$
|
24,572
|
|
|
$
|
144,560
|
|
|
$
|
65,169
|
|
Other
revenue
|
|
810
|
|
|
827
|
|
|
3,139
|
|
|
3,052
|
|
Total
revenue
|
|
45,356
|
|
|
25,399
|
|
|
147,699
|
|
|
68,221
|
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
21,141
|
|
|
17,049
|
|
|
80,105
|
|
|
50,142
|
|
Research and
development
|
|
16,570
|
|
|
13,605
|
|
|
63,496
|
|
|
46,469
|
|
Selling and
marketing
|
|
19,206
|
|
|
16,079
|
|
|
74,428
|
|
|
53,417
|
|
General and
administrative
|
|
14,343
|
|
|
13,557
|
|
|
52,227
|
|
|
39,472
|
|
Total costs and
operating expenses
|
|
71,260
|
|
|
60,290
|
|
|
270,256
|
|
|
189,500
|
|
Loss from
operations
|
|
(25,904)
|
|
|
(34,891)
|
|
|
(122,557)
|
|
|
(121,279)
|
|
Other income
(expense), net
|
|
(4,634)
|
|
|
293
|
|
|
(2,568)
|
|
|
(303)
|
|
Interest
expense
|
|
(2,103)
|
|
|
(1,137)
|
|
|
(7,030)
|
|
|
(3,654)
|
|
Net loss before
taxes
|
|
(32,641)
|
|
|
(35,735)
|
|
|
(132,155)
|
|
|
(125,236)
|
|
Income tax
benefit
|
|
(2,800)
|
|
|
4,758
|
|
|
(2,800)
|
|
|
(1,856)
|
|
Net loss
|
|
$
|
(29,841)
|
|
|
$
|
(40,493)
|
|
|
$
|
(129,355)
|
|
|
$
|
(123,380)
|
|
Net loss per share,
basic and diluted
|
|
$
|
(0.40)
|
|
|
$
|
(0.78)
|
|
|
$
|
(1.94)
|
|
|
$
|
(2.65)
|
|
Shares used in
computing net loss per share, basic and diluted
|
|
75,092
|
|
|
52,018
|
|
|
66,747
|
|
|
46,512
|
|
INVITAE
CORPORATION
|
|
Consolidated
Statements of Cash Flows
|
(in
thousands)
|
(unaudited)
|
|
|
Year Ended
December 31,
|
|
2018
|
|
2017
|
|
2016
|
Cash flows from
operating activities:
|
|
|
|
|
|
Net loss
|
$
|
(129,355)
|
|
|
$
|
(123,380)
|
|
|
$
|
(100,256)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
Depreciation and
amortization
|
13,540
|
|
|
9,181
|
|
|
6,553
|
|
Stock-based
compensation
|
20,850
|
|
|
19,221
|
|
|
10,699
|
|
Impairment
losses
|
2,925
|
|
|
—
|
|
|
—
|
|
Remeasurements of
liabilities associated with business combinations
|
362
|
|
|
1,810
|
|
|
—
|
|
Benefit from income
taxes
|
(2,862)
|
|
|
(1,856)
|
|
|
—
|
|
Debt extinguishment
costs
|
5,266
|
|
|
—
|
|
|
—
|
|
Other
|
806
|
|
|
404
|
|
|
1,341
|
|
Changes in operating
assets and liabilities, net of effects of business
combination:
|
|
|
|
|
|
Accounts
receivable
|
(5,291)
|
|
|
(1,963)
|
|
|
(843)
|
|
Prepaid expenses and
other current assets
|
(1,445)
|
|
|
(641)
|
|
|
(1,149)
|
|
Other
assets
|
(163)
|
|
|
(185)
|
|
|
1,465
|
|
Accounts
payable
|
(417)
|
|
|
(535)
|
|
|
(111)
|
|
Accrued expenses and
other liabilities
|
3,564
|
|
|
(37)
|
|
|
5,984
|
|
Net cash used in
operating activities
|
(92,220)
|
|
|
(97,981)
|
|
|
(76,317)
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Purchases of
marketable securities
|
(9,680)
|
|
|
(101,867)
|
|
|
(90,236)
|
|
Proceeds from sales
of marketable securities
|
19,965
|
|
|
—
|
|
|
—
|
|
Proceeds from
maturities of marketable securities
|
32,458
|
|
|
68,768
|
|
|
117,922
|
|
Acquisition of
businesses, acquired cash
|
—
|
|
|
2,821
|
|
|
—
|
|
Purchases of property
and equipment
|
(5,970)
|
|
|
(6,675)
|
|
|
(11,625)
|
|
Other
|
(1,000)
|
|
|
—
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
35,773
|
|
|
(36,953)
|
|
|
16,061
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Proceeds from public
offering of common stock, net of issuance costs
|
112,441
|
|
|
—
|
|
|
47,102
|
|
Proceeds from
issuance of common stock
|
17,511
|
|
|
74,619
|
|
|
3,134
|
|
Net proceeds from
issuance of debt
|
93,909
|
|
|
39,661
|
|
|
7,500
|
|
Payments for debt
extinguishment costs
|
(4,609)
|
|
|
—
|
|
|
—
|
|
Loan
payments
|
(60,000)
|
|
|
(30,457)
|
|
|
(2,438)
|
|
Capital lease
principal payments
|
(2,100)
|
|
|
(2,952)
|
|
|
(1,589)
|
|
Net cash provided by
financing activities
|
157,152
|
|
|
80,871
|
|
|
53,709
|
|
|
|
|
|
|
|
Net increase
(decrease) in cash, cash equivalents and restricted
cash
|
100,705
|
|
|
(54,063)
|
|
|
(6,547)
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
17,459
|
|
|
71,522
|
|
|
78,069
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
|
118,164
|
|
|
$
|
17,459
|
|
|
$
|
71,522
|
|
INVITAE
CORPORATION
|
|
Reconciliation of
Net Increase in Cash, Cash Equivalents and Restricted Cash to Cash
Burn
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ended
|
|
March 31,
2018
|
|
June 30,
2018
|
|
September 30,
2018
|
|
December 31,
2018
|
Net cash used in
operating activities
|
$
|
(32,902)
|
|
|
$
|
(25,765)
|
|
|
$
|
(18,080)
|
|
|
$
|
(15,473)
|
|
Net cash provided by
(used in) investing activities
|
19,947
|
|
|
(1,888)
|
|
|
6,530
|
|
|
11,184
|
|
Net cash provided by
financing activities
|
19,345
|
|
|
57,679
|
|
|
64,100
|
|
|
16,028
|
|
Net increase in cash,
cash equivalents and restricted cash
|
6,390
|
|
|
30,026
|
|
|
52,550
|
|
|
11,739
|
|
Adjustments:
|
|
|
|
|
|
|
|
Purchases of
investments
|
225
|
|
|
675
|
|
|
675
|
|
|
8,105
|
|
Sales of
investments
|
(19,965)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Maturities of
investments
|
(2,078)
|
|
|
—
|
|
|
(8,879)
|
|
|
(21,501)
|
|
Purchases of
investments in privately held companies
|
(225)
|
|
|
(675)
|
|
|
(675)
|
|
|
(675)
|
|
Proceeds from public
offering of common stock, net of issuance costs
|
—
|
|
|
(53,480)
|
|
|
(59,000)
|
|
|
39
|
|
Proceeds from
issuance of common stock - Securities Purchase Agreement
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,000)
|
|
Net proceeds from
issuance of debt
|
(19,792)
|
|
|
11
|
|
|
237
|
|
|
(74,365)
|
|
Payments for debt
extinguishment costs
|
—
|
|
|
—
|
|
|
—
|
|
|
4,609
|
|
Loan
payments
|
—
|
|
|
—
|
|
|
—
|
|
|
60,000
|
|
Proceeds from
exercises of acquisition-related warrants
|
(191)
|
|
|
(3,083)
|
|
|
(3,277)
|
|
|
12
|
|
Cash burn
|
$
|
(35,636)
|
|
|
$
|
(26,526)
|
|
|
$
|
(18,369)
|
|
|
$
|
(17,037)
|
|
Contact:
Laura
D'Angelo
ir@invitae.com
(628) 213-3369
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multimedia:http://www.prnewswire.com/news-releases/invitae-more-than-doubles-annual-volume-and-revenue-year-over-year-delivering-117-in-revenue-growth-driven-by-102-growth-in-volume-in-2018-300798245.html
SOURCE Invitae Corporation