Reported revenue of $121.2
million, a year-over-year decrease of 9%; on a pro forma
basis, taking into account exited businesses and geographies,
revenue increased approximately 4%
Gross margin of 32.2% and non-GAAP gross margin
of 52.4%; continued improvement in non-GAAP gross margin for nine
consecutive quarters
Reaffirming 2023 financial guidance
SAN
FRANCISCO, Nov. 8, 2023 /PRNewswire/ -- Invitae
(NYSE: NVTA), a leading medical genetics company, today announced
results for the third quarter ended September 30, 2023.
"The Company executed well on key operating and financial
metrics in the third quarter, and remains on track to meet or beat
annual guidance," said Ken Knight,
president and chief executive officer of Invitae. "On the
operational front, we added key executive talent and achieved a
number of clinical milestones that should strengthen the health of
our business, deliver continuing market expansion and further
differentiate our testing portfolio from competitors."
Third Quarter 2023 Financial Results
- Third quarter revenue decreased 9% to $121.2 million compared to $133.5 million in the same period in the prior
year, primarily reflecting the impact of exited businesses and
geographies completed in 2022. After adjusting for revenue of
$17.2 million in the prior year
period related to the discontinued businesses, third quarter
revenue increased approximately 4% on a pro forma basis, with U.S.
hereditary cancer testing volume achieving double-digit percentage
growth compared to the prior year period.
- Gross profit was $39.1 million in
the quarter, compared with $16.6
million in the same period of 2022, or 135.6% year-over-year
growth. Non-GAAP gross profit was $63.6
million in the quarter, compared with $61.2 million in the third quarter of 2022,
representing a year-over-year growth rate of 3.8%.
- Gross margin was 32.2% in the third quarter, compared with
12.4% a year ago. Non-GAAP gross margin was 52.4% compared with
45.9% in the third quarter of 2022. This represents Invitae's ninth
consecutive quarter of non-GAAP gross margin improvement.
- Operating expense for the third quarter of 2023 was
$1.0 billion, compared with
$306.5 million in the third quarter
of 2022. Operating expense in the third quarter includes
$877.3 million in restructuring,
impairment and other costs primarily related to an impairment
charge of the Company's long-lived assets, compared with
$125.2 million in the prior year
period. Non-GAAP operating expense was $122.1 million for the third quarter of 2023,
compared with $150.0 million for the
third quarter of 2022. Non-GAAP operating expense as a percentage
of revenue was 101%, compared with 112% in the third quarter of
2022.
- As of September 30, 2023, Invitae
had $264.7 million of cash, cash
equivalents, restricted cash and marketable securities compared to
$557.1 million as of December 31, 2022.
- Net decrease in cash, cash equivalents, restricted cash and net
changes in investments in the quarter was $72.2 million. Cash burn in the quarter was
$64.1 million.
- Total patients served as of September
30, 2023 was approximately 4.4 million with 64% available
for data sharing.
- Third quarter net loss per basic and diluted share of
($3.42) included impairment and
losses on disposals of long-lived assets, net, employee severance
and benefits and other restructuring costs of $877.3 million primarily related to fair market
value assessment of the Company's intangible assets. Third quarter
non-GAAP net loss per basic and diluted share of ($0.10) excludes this charge. Compared to a year
ago, net loss per basic and diluted share and non-GAAP net loss per
basic and diluted share were ($1.27)
and ($0.42), respectively.
Operational improvement efforts and expense control have
resulted in margin expansion and stronger financial performance. In
addition, the Company is engaging with stakeholders to strengthen
the balance sheet, and the Board of Directors has formed a special
committee focused on improving the Company's capital structure. The
Company is exploring a number of options, including, but not
limited to, raising capital, asset sales, business and R&D
refocusing efforts, capital expenditure and operating expense
reductions and addressing its debt obligations.
Reaffirming Fiscal 2023 Outlook
For the full year, Invitae is reaffirming its fiscal 2023
outlook. The Company expects revenue in the range of $480-$500 million
and non-GAAP gross margin in the range of 48-50%.
Ongoing cash burn includes cash, cash equivalents, marketable
securities and restricted cash and excludes certain items. The
Company continues to expect ongoing cash burn to be in the range of
$220-$245
million in 2023. In 2023, cash burn will be higher than
ongoing cash burn as a result of the Company's voluntary repayment
of its $135 million term loan in the
first quarter of 2023.
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=62d0dec5&confId=56925
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 company's future financial
and operating results; the company's focus, strategy, and roadmap;
the company's financial guidance for 2023; the company's belief
that the addition of executives and achievement of clinical
milestones will strengthen the health of the company's business,
deliver continuing market expansion and differentiate the company's
testing portfolio from competitors; the objectives of the special
committee; and the company's beliefs regarding engagement with
stakeholders and plans to explore various options. 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 availability
of and need for capital; the ability to service the company's debt
obligations; 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; risks related
to the various options the company is exploring, including the fact
that certain options may not be available to the company; 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 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 June 30, 2023.
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 and cash burn guidance, non-GAAP measures used to
describe the company's expected performance. The company has not
presented a reconciliation of these non-GAAP measures to the most
comparable GAAP financial measures, because the reconciliations
could not be prepared without unreasonable effort. The information
necessary to prepare the reconciliations are 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 measures.
Invitae Contacts:
Investor Relations
Hoki
Luk
ir@invitae.com
Public Relations
Amy
Hadsock
pr@invitae.com
|
INVITAE
CORPORATION
Condensed Consolidated Balance Sheets
(in
thousands)
(unaudited)
|
|
|
September 30,
2023
|
|
December 31,
2022
|
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
158,007
|
|
$
257,489
|
|
Marketable
securities
|
96,566
|
|
289,611
|
|
Accounts
receivable
|
82,507
|
|
96,148
|
|
Inventory
|
21,627
|
|
30,386
|
|
Prepaid expenses and
other current assets
|
19,692
|
|
19,496
|
|
Total current
assets
|
378,399
|
|
693,130
|
|
Property and equipment,
net
|
65,446
|
|
108,723
|
|
Operating lease
assets
|
61,639
|
|
106,563
|
|
Restricted
cash
|
10,100
|
|
10,030
|
|
Intangible assets,
net
|
—
|
|
1,012,549
|
|
Other assets
|
19,531
|
|
23,121
|
|
Total
assets
|
$
535,115
|
|
$ 1,954,116
|
|
Liabilities and
stockholders' (deficit) equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
25,185
|
|
$
13,984
|
|
Accrued
liabilities
|
84,729
|
|
74,388
|
|
Operating lease
obligations
|
17,650
|
|
14,600
|
|
Finance lease
obligations
|
3,948
|
|
5,121
|
|
Convertible senior
notes, net current portion
|
26,907
|
|
—
|
|
Total current
liabilities
|
158,419
|
|
108,093
|
|
Operating lease
obligations, net of current portion
|
134,945
|
|
134,386
|
|
Finance lease
obligations, net of current portion
|
855
|
|
3,780
|
|
Debt
|
—
|
|
122,333
|
|
Convertible senior
notes, net
|
1,127,830
|
|
1,470,783
|
|
Convertible senior
secured notes (at fair value)
|
196,244
|
|
—
|
|
Deferred tax
liability
|
—
|
|
8,130
|
|
Other long-term
liabilities
|
226
|
|
4,775
|
|
Total
liabilities
|
1,618,519
|
|
1,852,280
|
|
|
|
|
|
Stockholders' (deficit)
equity:
|
|
|
|
|
Common
stock
|
29
|
|
25
|
|
Accumulated other
comprehensive income (loss)
|
25,378
|
|
(80)
|
|
Additional paid-in
capital
|
5,061,131
|
|
4,931,032
|
|
Accumulated
deficit
|
(6,169,942)
|
|
(4,829,141)
|
|
Total stockholders'
(deficit) equity
|
(1,083,404)
|
|
101,836
|
|
Total liabilities and
stockholders' (deficit) equity
|
$
535,115
|
|
$ 1,954,116
|
|
INVITAE
CORPORATION
Condensed Consolidated Statements of
Operations
(in thousands, except per share data)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Test
revenue
|
|
$
117,561
|
|
$
128,839
|
|
$
346,127
|
|
$
381,518
|
|
Other
revenue
|
|
3,680
|
|
4,697
|
|
13,002
|
|
12,331
|
|
Total
revenue
|
|
121,241
|
|
133,536
|
|
359,129
|
|
393,849
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
82,186
|
|
116,956
|
|
258,102
|
|
324,412
|
|
Research and
development
|
|
58,336
|
|
87,177
|
|
184,138
|
|
330,559
|
|
Selling and
marketing
|
|
37,999
|
|
49,193
|
|
127,241
|
|
172,086
|
|
General and
administrative
|
|
45,619
|
|
44,939
|
|
160,826
|
|
147,221
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
—
|
|
2,313,047
|
|
Restructuring,
impairment and other costs
|
|
877,289
|
|
125,222
|
|
1,010,843
|
|
130,039
|
|
Total operating
expenses
|
|
1,101,429
|
|
423,487
|
|
1,741,150
|
|
3,417,364
|
|
Loss from
operations
|
|
(980,188)
|
|
(289,951)
|
|
(1,382,021)
|
|
(3,023,515)
|
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
extinguishment of debt, net
|
|
229
|
|
—
|
|
(10,593)
|
|
—
|
|
Debt issuance
costs
|
|
(845)
|
|
—
|
|
(20,704)
|
|
—
|
|
Change in fair value
of convertible senior
secured notes
|
|
33,463
|
|
—
|
|
72,386
|
|
—
|
|
Change in fair value
of acquisition-related
liabilities
|
|
70
|
|
(527)
|
|
337
|
|
15,666
|
|
Other income,
net
|
|
4,843
|
|
2,399
|
|
15,105
|
|
3,971
|
|
Total other income,
net
|
|
37,760
|
|
1,872
|
|
56,531
|
|
19,637
|
|
Interest
expense
|
|
(5,850)
|
|
(14,145)
|
|
(23,366)
|
|
(42,149)
|
|
Net loss before
taxes
|
|
(948,278)
|
|
(302,224)
|
|
(1,348,856)
|
|
(3,046,027)
|
|
Income tax
benefit
|
|
6,171
|
|
1,068
|
|
8,055
|
|
39,551
|
|
Net loss
|
|
$ (942,107)
|
|
$ (301,156)
|
|
$
(1,340,801)
|
|
$
(3,006,476)
|
|
Net loss per share,
basic and diluted
|
|
$
(3.42)
|
|
$
(1.27)
|
|
$
(5.09)
|
|
$
(12.91)
|
|
Shares used in
computing net loss per share,
basic and diluted
|
|
275,604
|
|
237,974
|
|
263,210
|
|
232,889
|
|
INVITAE
CORPORATION
Condensed Consolidated Statements of Cash
Flows
(in thousands)
(unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
2023
|
|
2022
|
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss
|
$
(1,340,801)
|
|
$
(3,006,476)
|
|
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, net
|
1,012,360
|
|
60,317
|
|
Depreciation and
amortization
|
100,403
|
|
104,726
|
|
Stock-based
compensation
|
85,554
|
|
164,314
|
|
Amortization of debt
discount and issuance costs
|
5,483
|
|
11,676
|
|
Loss on extinguishment
of debt, net
|
10,593
|
|
—
|
|
Debt issuance
costs
|
20,704
|
|
—
|
|
Change in fair value
of convertible senior secured notes
|
(72,386)
|
|
—
|
|
Remeasurements of
liabilities associated with business combinations
|
(337)
|
|
(15,666)
|
|
Benefit from income
taxes
|
(8,055)
|
|
(39,551)
|
|
Post-combination
expense for acceleration of unvested equity and deferred stock
compensation
|
1,789
|
|
4,980
|
|
Amortization of
premiums and discounts on investment securities
|
(6,259)
|
|
603
|
|
Non-cash lease
expense
|
9,309
|
|
6,832
|
|
Other
|
2,211
|
|
(1,314)
|
|
Changes in operating
assets and liabilities, net of businesses acquired:
|
|
|
|
|
Accounts
receivable
|
13,641
|
|
(22,903)
|
|
Inventory
|
8,759
|
|
3,614
|
|
Prepaid expenses and
other current assets
|
(196)
|
|
9,012
|
|
Other
assets
|
(139)
|
|
2,740
|
|
Accounts
payable
|
8,135
|
|
(6,345)
|
|
Accrued expenses and
other long-term liabilities
|
(6,966)
|
|
(540)
|
|
Net cash used in
operating activities
|
(156,198)
|
|
(410,934)
|
|
Cash flows from
investing activities:
|
|
|
|
|
Purchases of marketable
securities
|
(231,044)
|
|
(789,622)
|
|
Proceeds from
maturities of marketable securities
|
430,440
|
|
541,313
|
|
Purchases of property
and equipment
|
(4,669)
|
|
(48,385)
|
|
Proceeds from sale of
property and equipment
|
332
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
195,059
|
|
(296,694)
|
|
Cash flows from
financing activities:
|
|
|
|
|
(Loss) proceeds from
public offerings of common stock, net of issuance costs
|
(55)
|
|
9,658
|
|
Proceeds from issuance
of common stock, net
|
2,170
|
|
6,267
|
|
Proceeds from issuance
of Series B convertible senior secured notes due 2028
|
30,001
|
|
—
|
|
Payments for debt
issuance costs and prepayment fees
|
(25,974)
|
|
—
|
|
Repayment of
debt
|
(135,000)
|
|
—
|
|
Finance lease principal
payments
|
(3,886)
|
|
(4,184)
|
|
Settlement of
acquisition obligations
|
(5,529)
|
|
(10,582)
|
|
Net cash (used in)
provided by financing activities
|
(138,273)
|
|
1,159
|
|
Net decrease in
cash, cash equivalents and restricted cash
|
(99,412)
|
|
(706,469)
|
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
267,519
|
|
933,525
|
|
Cash, cash
equivalents and restricted cash at end of period
|
$
168,107
|
|
$
227,056
|
|
Reconciliation of
GAAP to Non-GAAP Cost of Revenue
(in thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Cost of
revenue
|
|
$
82,186
|
|
$
116,956
|
|
$ 258,102
|
|
$ 324,412
|
|
Amortization of
acquired intangible assets
|
|
(24,082)
|
|
(27,711)
|
|
(77,122)
|
|
(73,618)
|
|
Acquisition-related
stock-based compensation
|
|
(44)
|
|
(146)
|
|
(146)
|
|
(425)
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
(162)
|
|
—
|
|
(1,053)
|
|
Restructuring-related
retention bonuses
|
|
(7)
|
|
(170)
|
|
(145)
|
|
(170)
|
|
Inventory and prepaid
write-offs
|
|
(388)
|
|
(16,467)
|
|
(1,362)
|
|
(16,467)
|
|
Non-GAAP cost of
revenue
|
|
$
57,665
|
|
$
72,300
|
|
$ 179,327
|
|
$ 232,679
|
|
Reconciliation of
GAAP to Non-GAAP Gross Profit
(in thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Revenue
|
|
$ 121,241
|
|
$ 133,536
|
|
$ 359,129
|
|
$ 393,849
|
|
Cost of
revenue
|
|
82,186
|
|
116,956
|
|
258,102
|
|
324,412
|
|
Gross profit
|
|
39,055
|
|
16,580
|
|
101,027
|
|
69,437
|
|
Amortization of
acquired intangible assets
|
|
24,082
|
|
27,711
|
|
77,122
|
|
73,618
|
|
Acquisition-related
stock-based compensation
|
|
44
|
|
146
|
|
146
|
|
425
|
|
Acquisition-related
post-combination expense
|
|
—
|
|
162
|
|
—
|
|
1,053
|
|
Restructuring-related
retention bonuses
|
|
7
|
|
170
|
|
145
|
|
170
|
|
Inventory and prepaid
write-offs
|
|
388
|
|
16,467
|
|
1,362
|
|
16,467
|
|
Non-GAAP gross
profit
|
|
$
63,576
|
|
$
61,236
|
|
$ 179,802
|
|
$ 161,170
|
|
Reconciliation of
GAAP to Non-GAAP Research and Development Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Research and
development
|
|
$
58,336
|
|
$
87,177
|
|
$ 184,138
|
|
$ 330,559
|
|
Amortization of
acquired intangible assets
|
|
—
|
|
(306)
|
|
(90)
|
|
(1,338)
|
|
Acquisition-related
stock-based compensation
|
|
(14,921)
|
|
(18,695)
|
|
(43,448)
|
|
(65,719)
|
|
Acquisition-related
post-combination expense
|
|
(141)
|
|
(1,962)
|
|
(1,825)
|
|
(7,186)
|
|
Restructuring-related
retention bonuses
|
|
(669)
|
|
(646)
|
|
(2,052)
|
|
(646)
|
|
Restructuring-related
accelerated depreciation
|
|
(125)
|
|
(3,311)
|
|
(341)
|
|
(3,311)
|
|
Non-GAAP research and
development
|
|
$
42,480
|
|
$
62,257
|
|
$ 136,382
|
|
$ 252,359
|
|
Reconciliation of
GAAP to Non-GAAP Selling and Marketing Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Selling and
marketing
|
|
$
37,999
|
|
$
49,193
|
|
$ 127,241
|
|
$ 172,086
|
|
Amortization of
acquired intangible assets
|
|
(1,569)
|
|
(1,610)
|
|
(4,707)
|
|
(4,856)
|
|
Acquisition-related
stock-based compensation
|
|
—
|
|
(806)
|
|
(750)
|
|
(2,374)
|
|
Restructuring-related
retention bonuses
|
|
(105)
|
|
(115)
|
|
(565)
|
|
(115)
|
|
Non-GAAP selling and
marketing
|
|
$
36,325
|
|
$
46,662
|
|
$ 121,219
|
|
$ 164,741
|
|
Reconciliation of
GAAP to Non-GAAP General and Administrative Expense
(in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
General and
administrative
|
|
$
45,619
|
|
$
44,939
|
|
$ 160,826
|
|
$ 147,221
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
—
|
|
—
|
|
1,850
|
|
Acquisition-related
stock-based compensation
|
|
(1,181)
|
|
(3,438)
|
|
(3,524)
|
|
(6,656)
|
|
Restructuring-related
retention bonuses
|
|
(1,149)
|
|
(300)
|
|
(2,402)
|
|
(300)
|
|
Restructuring-related
accelerated depreciation
|
|
—
|
|
(111)
|
|
—
|
|
(111)
|
|
Non-GAAP general and
administrative
|
|
$
43,289
|
|
$
41,090
|
|
$ 154,900
|
|
$ 142,004
|
|
Reconciliation of
Operating Expenses to Non-GAAP Operating Expenses
(in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Research and
development
|
|
$
58,336
|
|
$
87,177
|
|
$
184,138
|
|
$
330,559
|
|
Selling and
marketing
|
|
37,999
|
|
49,193
|
|
127,241
|
|
172,086
|
|
General and
administrative
|
|
45,619
|
|
44,939
|
|
160,826
|
|
147,221
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
—
|
|
2,313,047
|
|
Restructuring,
impairment and other costs
|
|
877,289
|
|
125,222
|
|
1,010,843
|
|
130,039
|
|
Operating
expenses
|
|
1,019,243
|
|
306,531
|
|
1,483,048
|
|
3,092,952
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
—
|
|
(2,313,047)
|
|
Restructuring,
impairment and other costs
|
|
(877,289)
|
|
(125,222)
|
|
(1,010,843)
|
|
(130,039)
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
—
|
|
—
|
|
1,850
|
|
Amortization of
acquired intangible assets
|
|
(1,569)
|
|
(1,916)
|
|
(4,797)
|
|
(6,194)
|
|
Acquisition-related
stock-based compensation
|
|
(16,102)
|
|
(22,939)
|
|
(47,722)
|
|
(74,749)
|
|
Acquisition-related
post-combination expense
|
|
(141)
|
|
(1,962)
|
|
(1,825)
|
|
(7,186)
|
|
Restructuring-related
retention bonuses
|
|
(1,923)
|
|
(1,061)
|
|
(5,019)
|
|
(1,061)
|
|
Restructuring-related
accelerated depreciation
|
|
(125)
|
|
(3,422)
|
|
(341)
|
|
(3,422)
|
|
Non-GAAP operating
expenses
|
|
$ 122,094
|
|
$ 150,009
|
|
$
412,501
|
|
$
559,104
|
|
Reconciliation of
Other Income, Net to Non-GAAP Other Income, Net
(in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Other income,
net
|
|
$
37,760
|
|
$
1,872
|
|
$
56,531
|
|
$
19,637
|
|
Change in fair value
of acquisition-related liabilities
|
|
(70)
|
|
527
|
|
(337)
|
|
(15,666)
|
|
Non-GAAP other income,
net
|
|
$
37,690
|
|
$
2,399
|
|
$
56,194
|
|
$
3,971
|
|
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
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Net loss
|
|
$ (942,107)
|
|
$ (301,156)
|
|
$
(1,340,801)
|
|
$
(3,006,476)
|
|
Goodwill and IPR&D
impairment
|
|
—
|
|
—
|
|
—
|
|
2,313,047
|
|
Restructuring,
impairment and other costs
|
|
877,289
|
|
125,222
|
|
1,010,843
|
|
130,039
|
|
Change in fair value
of contingent consideration
|
|
—
|
|
—
|
|
—
|
|
(1,850)
|
|
Change in fair value
of acquisition-related assets
and liabilities
|
|
(70)
|
|
527
|
|
(337)
|
|
(15,666)
|
|
Amortization of
acquired intangible assets
|
|
25,651
|
|
29,627
|
|
81,919
|
|
79,812
|
|
Acquisition-related
stock-based compensation
|
|
16,146
|
|
23,085
|
|
47,868
|
|
75,174
|
|
Acquisition-related
post-combination expense
|
|
141
|
|
2,124
|
|
1,825
|
|
8,239
|
|
Restructuring-related
retention bonuses
|
|
1,930
|
|
1,231
|
|
5,164
|
|
1,231
|
|
Restructuring-related
accelerated depreciation
|
|
125
|
|
3,422
|
|
341
|
|
3,422
|
|
Inventory and prepaid
write-offs
|
|
388
|
|
16,467
|
|
1,362
|
|
16,467
|
|
Acquisition-related
income tax benefit
|
|
(6,180)
|
|
(1,390)
|
|
(6,810)
|
|
(40,195)
|
|
Non-GAAP net
loss
|
|
$
(26,687)
|
|
$ (100,841)
|
|
$ (198,626)
|
|
$ (436,756)
|
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
(3.42)
|
|
$
(1.27)
|
|
$
(5.09)
|
|
$
(12.91)
|
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
(0.10)
|
|
$
(0.42)
|
|
$
(0.75)
|
|
$
(1.88)
|
|
Shares used in
computing net loss per share, basic
and diluted
|
|
275,604
|
|
237,974
|
|
263,210
|
|
232,889
|
|
Reconciliation of
Net (Decrease) Increase in Cash, Cash Equivalents and Restricted
Cash to Cash Burn
(in thousands)
(unaudited)
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
March 31,
2023
|
|
June 30,
2023
|
|
September 30,
2023
|
|
September 30,
2023
|
|
Net cash used in
operating activities
|
$ (34,398)
|
|
$ (54,905)
|
|
$
(66,895)
|
|
$
(156,198)
|
|
Net cash provided by
investing activities
|
73,878
|
|
116,064
|
|
5,117
|
|
195,059
|
|
Net cash (used in)
provided by financing activities
|
(135,768)
|
|
876
|
|
(3,381)
|
|
(138,273)
|
|
Net (decrease) increase
in cash, cash equivalents
and restricted cash
|
(96,288)
|
|
62,035
|
|
(65,159)
|
|
(99,412)
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
Net changes in
investments
|
(75,202)
|
|
(117,146)
|
|
(7,048)
|
|
(199,396)
|
|
Loss from public
offerings of common stock, net
of issuance costs
|
—
|
|
—
|
|
55
|
|
55
|
|
Proceeds from issuance
of Series B convertible
senior secured notes due 2028, net of issuance
costs
|
(22,435)
|
|
1,763
|
|
8,016
|
|
(12,656)
|
|
Cash burn
|
$
(193,925)
|
|
$ (53,348)
|
|
$
(64,136)
|
|
$
(311,409)
|
|
|
|
|
|
|
|
|
|
• Cash burn for the
three months ended March 31, 2023 includes $135.0 million repayment
of debt, $8.1 million
of prepayment fees, $3.7 million in restructuring-related cash
payments, and $1.5 million of acquisition-related
payments.
|
|
• Cash burn for the
three months ended September 30, 2023 includes $4.1 million of
acquisition-related
payments.
|
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SOURCE Invitae Corporation