Skip to main content
Premium Trial:

Request an Annual Quote

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 exited businesses and geographies, 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, it's 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.

"We are pleased with the recent clinical developments in our PCM assay for minimal residual disease, as we continue to take steps to advance a continuum of precision oncology," Invitae President and CEO Ken Knight said in a statement. "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.

The Scan

Machine Learning Helps ID Molecular Mechanisms of Pancreatic Islet Beta Cell Subtypes in Type 2 Diabetes

The approach helps overcome limitations of previous studies that had investigated the molecular mechanisms of pancreatic islet beta cells, the authors write in their Nature Genetics paper.

Culture-Based Methods, Shotgun Sequencing Reveal Transmission of Bifidobacterium Strains From Mothers to Infants

In a Nature Communications study, culture-based approaches along with shotgun sequencing give a better picture of the microbial strains transmitted from mothers to infants.

Microbial Communities Can Help Trees Adapt to Changing Climates

Tree seedlings that were inoculated with microbes from dry, warm, or cold sites could better survive drought, heat, and cold stress, according to a study in Science.

A Combination of Genetics and Environment Causes Cleft Lip

In a study published in Nature Communications, researchers investigate what combination of genetic and environmental factors come into play to cause cleft lip/palate.