NEW YORK – Invitae said after the close of the market on Tuesday that its second quarter revenues increased 152 percent year over year, exceeding the consensus Wall Street estimate.
For the three months ended June 30, the San Francisco-based genetic testing company reported $116.3 million in revenues, up from $46.2 million a year ago. Analysts, on average, had projected revenues of $108.3 million.
The company's revenues from testing during Q2 2021 totaled $111.5 million, a sharp increase from $45.1 million in Q2 2020. Other revenues more than quadrupled during the quarter to $4.8 million from $1.1 million in the prior year.
Invitae's strong financial performance during the quarter was driven by a 154 percent increase in billable test volume; in Q2 2021, the company reported 287,000 billed tests compared to 113,000 tests during the year-ago period. The international market represented 19 percent of total billable test volume, Roxi Wen, Invitae's new CFO, said on a call to discuss the company's financial results
The company also signed 43 deals with biopharma partners during the quarter including several sponsored testing programs.
Its R&D expenses were $116.9 million, up 56 percent from $75.0 million in the year-ago quarter, while SG&A expenses were $114 million, a 74 percent increase from $65.5 million a year ago.
Invitae's net loss for the quarter totaled $129.0 million, or $.64 per share, compared to a net loss of $166.4 million, or $1.29 per share, in Q2 2020. Non-GAAP net loss for the quarter was $170.8 million, or $.85 per share. On average, analysts had estimated a $.65 per share loss.
Invitae acquired ArcherDx last year, accelerating its entry into somatic cancer testing and monitoring. The company noted that net loss and other results may change as it finalizes adjustments related to a milestone associated with the ArcherDx acquisition. The company expects to report any adjustments in its 10-Q filed with the US Securities and Exchange Commission on or before Aug. 9.
In addition to reporting revenue from its testing services for a variety of diseases, Invitae CEO Sean George said the company will begin reporting out the performance of a new segment, dubbed "platform and data services," which includes data management, analytics, and interpretation, as well as biopharma programs and patient identification programs. "We anticipate this part of the business will be the fastest growing elements over the next five years," George said, noting that such services comprised 2 percent of the company's total revenues three years ago, but in Q2 2021 comprised 8 percent of total revenues.
Invitae will add new products and services to bolster this part of its business. Toward this end, George said that Invitae acquired Medneon during the quarter, which has a platform that combines guidelines, real-world data, and patients' medical and family history to estimate their cancer risk and help doctors determine the need for genetic testing and imaging. Earlier this year, Invitae had said it had added Medneon's Predictive Risk Assessment platform to its clinical workflow.
In line with a focus on growing its data services business, George underscored that this business will still reflect the overall ethos on which Invitae was founded, which is that patients own and control their own data, and that data is most useful when shared.
Invitae ended the quarter with $1.11 billion in cash and cash equivalents, and $422.5 million in marketable securities.
Following the strong performance during the past quarter, the company increased its revenue guidance for FY 2021 to between $475 million and $500 million. The company had previously said it was expecting $450 million in annual revenues.