NEW YORK – Natera reported after the close of the market on Thursday a 53 percent year-over-year revenue gain for the fourth quarter of 2024 and a 57 percent rise for the full year.
The Austin, Texas-based genetic testing company finished the three months ended Dec. 31 with $476.1 million in revenues compared to $311.1 million for the same quarter in 2023, exceeding analysts' average estimate of $447.9 million.
Product revenues were the main revenue driver, rising approximately 54 percent to $472.9 million for the fourth quarter compared to $307.3 million. It processed approximately 792,800 tests in the fourth quarter of 2024 compared to 626,800 tests in Q4 2023, a 26 percent increase year over year.
Natera's Q4 total operating expenses, including R&D and SG&A costs, rose approximately 49 percent to $364.4 million from $244.4 million a year ago. The company said that hiring to support new product offerings, as well as consulting and legal fees, primarily drove the increase.
The firm's fourth quarter net loss fell to $53.8 million, or $.41 per share, from $78 million, or $.65 per share, in the same quarter a year ago. Analysts, on average, had expected a loss of $.35 per share.
Natera reported approximately $1.70 billion in total revenues for 2024, up roughly 57 percent from $1.08 billion in 2023, also driven by strong product sales and above analysts' average estimate of $1.63 billion.
In a call with investors after the financials were released, Natera CEO Steve Chapman said that its Signatera cell-free DNA-based test for minimal residual disease in particular has had a "transformational year," with strong clinical trial data presented at several conferences held over the year proving to be "critical catalysts" in driving broader adoption.
"We're once again tracking towards one of our strongest volume quarters ever for Signatera total revenue growth," Chapman said, referring to Q1 of the current year, while also pointing to coverage and reimbursement as other factors driving growth.
"We think we have the potential to double the revenue from the volumes we are already running today as we expand coverage and reimbursement," Chapman said.
The company processed approximately 3,064,600 tests throughout 2024 compared to approximately 2,496,100 tests in 2023, an increase of nearly 23 percent.
The company's full-year R&D spending rose approximately 26 percent to $404.1 million from $320.7 million in 2023, and its SG&A expenses rose approximately 36 percent to $841.3 million from $618.3 million a year earlier.
On the call, company officials noted that much of the R&D spending is being used to support clinical trials, and that Natera feels confident about the data they're seeing so far. Chapman noted that based on promising data in colorectal cancer and advanced adenomas coming out of studies such as PROCEED-CRC, the firm plans to launch the pivotal FIND-CRC study, which will be used for clinical validation and submission to the US Food and Drug Administration and is scheduled to begin enrolling over the next 18 months.
"We will seek FDA approval for this test," Chapman said.
Its full-year net loss fell to $190.4 million, or $1.53 per share, from $434.8 million, or $3.78 per share, in 2023. Analysts' average estimate was a loss per share of $1.55.
Natera finished the year with $945.6 million in cash, cash equivalents, and restricted cash and $22.7 million in short-term investments.
The company said it anticipates full-year 2025 revenue within the range of $1.87 billion to $1.95 billion.