On May 3, 2022 Invitae (NYSE: NVTA), a leading medical genetics company, reported financial and operating results for the first quarter ended March 31, 2022 (Press release, Invitae, MAY 3, 2022, View Source [SID1234613396]).
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Invitae’s (NVTA) mission is to bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people. www.invitae.com (PRNewsFoto/Invitae Corporation)
"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:
View Source
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.