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Invitae Revenues Decline 5 Percent in Q1 After Company Exits Businesses, Geographies

NEW YORK – Invitae reported after the close of the market on Tuesday a year-over-year revenue decline of 5 percent for the first quarter of 2023.

The San Francisco-based genetic testing company finished the three months ended March 31 with $117.4 million in sales compared to $123.7 million for the same quarter in 2022. Despite the downward trend, it still beat analysts' average estimate of $116.6 million.

The firm attributed the decrease to exited business and geographies. It noted that excluding revenues related to this, its first quarter 2023 revenue grew approximately 10 percent year over year.

Last year it embarked on a restructuring, which included laying off more than a thousand employees, eliminating non-core operations and geographies, and focusing on business lines that deliver sustainable margins and returns needed to fuel further investment. Part of that restructuring included the sale of its portfolio of Archer next-generation sequencing research-use assays to Integrated DNA Technologies for $48 million.

Invitae's net loss was $192.2 million, or $.77 per share, compared to a loss of $181.9 million, or $.80 per share, in the same quarter a year ago. On a non-GAAP basis, its loss per share was $.37 for Q2 2023, besting analysts' average estimate for a loss of $.39 per share.

Invitae's R&D spending fell approximately 52 percent year over year to $62 million from $128.2 million, while its SG& A expenses fell nearly 20 percent to $89.8 million from $111.6 million a year ago. It also took a $52.6 million restructuring charge in the quarter compared to no such charges in the prior year's first quarter.

Invitae President and CEO Ken Knight said in a statement that the company is pleased with recent clinical developments for its personalized cancer monitoring assay for minimal residual disease, "as we continue to take steps to advance a continuum of precision oncology. Furthermore, we are working opportunistically to improve our performance through revenue cycle management and working capital improvements." 

Invitae ended the quarter with approximately $161.2 million in cash and cash equivalents and $217.5 million in marketable securities.

The firm reiterated revenue guidance for 2023 of over $500 million.