NEW YORK – Invitae reported after the market closed on Wednesday a 9 percent decrease in third quarter revenues year over year, citing exited businesses and geographies in the preceding year.
The San Francisco-based genetic testing firm generated revenues of $121.2 million for the three months ended Sept. 30 compared to $133.5 million for the third quarter of 2022. Despite the decline, it narrowly beat analysts' average estimate of $120.8 million.
The firm noted that on a pro forma basis, taking into account the exited businesses, its sales were up 4 percent year over year. It noted that hereditary cancer testing volume in the US achieved double-digit percentage growth compared to the prior-year Q3.
Test revenue was $117.6 million for the quarter versus $128.8 million for Q3 2022 while other revenue slipped to $3.7 million from $4.7 million.
Invitae took a massive restructuring and impairment charge of $877.3 million for the quarter compared to $125.2 million for such charges a year ago. The charges were related to impairment and losses on the disposal of long-lived assets, payment of employee severance and benefits, and other restructuring costs.
That restructuring, announced in July 2022, included around 1,000 job cuts, consolidation of lab and office space, and reduction of its global footprint to under a dozen international geographies where its testing business shows the potential for short-term positive cash flow. Invitae said at the time that it plans to focus its resources on higher-margin and higher-growth businesses in its portfolio including oncology, women's health, rare disease, and pharmacogenomics.
As a result of the charges, the firm's net loss for the quarter was $942.1 million, or $3.42 per share, compared to a loss of $301.2 million, or $1.27 per share, for Q3 2022. On an adjusted basis, its loss per share was $.10, besting Wall Street's consensus estimate for a loss of $.31 per share.
Invitae's R&D spending declined to $58.3 million in Q3 from $87.2 million in Q3 2022, and its SG&A expenses dropped to $83.6 million from $94.1 million year over year.
The firm finished the quarter with cash and cash equivalents of $158 million, marketable securities of $96.6 million, and restricted cash of $10.1 million.
Invitae reaffirmed its FY 2023 outlook for revenue in the range of $480 million to $500 million.