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Invitae More Than Doubles Revenue in Q1

NEW YORK (GenomeWeb) – Invitae reported after the close of the market Wednesday a 169 percent increase in first quarter revenues driven by 150 percent growth in testing volume.

"We are poised to become the leading provider of inherited genetic testing services in the next 12 to 18 months," said CEO Sean George in a conference call to discuss the financial results.

For the three months ended March 31, the company booked $27.7 million in revenue, up 169 percent from $10.3 million in Q1 of 2017, and beating the consensus Wall Street estimate of $26.9 million. Average revenue per test was $460 in the quarter, including all categories of payors and tests.

The company accessioned more than 64,000 samples in Q1, up 150 percent from the year-ago quarter, when it accessioned 26,000 samples. Approximately 59,000 samples in Q1 were billable.

According to CFO Shelly Guyer, testing volume increased across all clinical areas, including reproductive health. The increase largely happened in March, she said, whereas testing volume was "muted" during the first two months of the year due to seasonal effects and ongoing training efforts for the company's sales team.

The average cost per sample decreased to $279 in the first quarter, a 22 percent reduction from $360 in Q1 of 2017. Most of these savings came from laboratory materials and labor costs, Guyer said, and resulted from the increased sample volume. Reducing cost of goods sold will remain the company's focus throughout the year, she said, and will partly be achieved by integrating its reproductive health technologies into its product lab in San Francisco by the middle of the year.

The company's net loss for the quarter widened to $36.1 million, or $.66 per share, from $26.9 million, or $.64 per share, in Q1 of 2017. Analysts, on average, had expected a net loss of $.61 per share.

R&D spending for the quarter increased 54 percent to $15.4 million from $10.0 million, while SG&A expenses climbed 68 percent to $30.7 million from $18.3 million.

Invitae ended the quarter with $18.4 million in cash and cash equivalents and $36.5 million in marketable securities.

Following the end of Q1, the company raised $53.5 million in net proceeds from an equity offering and has access to $20 million in additional debt.

George said that the company expects to lower its cash burn by 40 to 50 percent by the end of the year.

Based on the growth in test volume and revenue, the company increased its guidance for the year. It now predicts to accession more than 275,000 samples and to have more than $130 million in revenues in 2018, having previously provided guidance of 250,000 samples and $120 million in revenues.

Invitae's shares were up 6 percent, at $6.17, in morning trading on the New York Stock Exchange.