Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA
and genetic testing, today reported its financial results for the
fourth quarter and full year ended December 31, 2024.
Recent Financial Highlights
- Generated total revenues of $476.1 million in the fourth
quarter of 2024, compared to $311.1 million in the fourth quarter
of 2023, an increase of 53.0%. Product revenues grew 53.9% over the
same period.
- Generated a gross margin of 62.9% in the fourth quarter of
2024, compared to a gross margin of 51.4% in the fourth quarter of
2023.
- Generated total revenues of $1,696.9 million in the full year
of 2024, compared to $1,082.6 million in the full year 2023, an
increase of 56.7%. Product revenues grew 57.7% over the same
period.
- Generated a gross margin of 60.3% in the full year of 2024,
compared to a gross margin of 45.5% in the full year of 2023.
- Processed approximately 792,800 tests in the fourth quarter of
2024, compared to approximately 626,800 tests in the fourth quarter
of 2023, an increase of 26.5%.
- Processed approximately 3,064,600 tests in the full year of
2024, compared to approximately 2,496,100 tests in the full year of
2023, an increase of 22.8%.
- Performed approximately 150,800 oncology tests in the fourth
quarter of 2024, compared to approximately 97,500 in the fourth
quarter of 2023, an increase of 54.7%.
- Performed approximately 528,200 oncology tests in the full year
2024, compared to approximately 341,000 in the full year 2023, an
increase of 54.9%.
- Achieved positive cash flow of approximately $45.7 million1 in
the fourth quarter of 2024.
“We had a strong finish to the year, with excellent performance
across the board,” said Steve Chapman, chief executive officer of
Natera. “Our ongoing success can be attributed to the
mission-driven mindset of our team and our focus on patients. We
have significant momentum, with several potential catalysts in 2025
and beyond.”
Fourth Quarter and Year Ended December 31, 2024 Financial
Results
Total revenues were $476.1 million in the fourth quarter of 2024
compared to $311.1 million in the fourth quarter of 2023, an
increase of 53.0%. The increase in total revenues was driven
primarily by a 53.9% increase in product revenues, which were
$472.9 million in the fourth quarter of 2024 compared to $307.3
million in the fourth quarter of 2023. The increase in product
revenues was primarily driven by an increase in volume and average
selling price improvements.
Natera processed approximately 792,800 tests in the fourth
quarter of 2024, including approximately 778,400 tests accessioned
in its laboratory, compared to approximately 626,800 tests
processed, including approximately 610,100 tests accessioned in its
laboratory, in the fourth quarter of 2023.
In the fourth quarter of 2024, Natera recognized revenue on
approximately 771,700 tests for which results were reported to
customers in the period (tests reported), including approximately
758,200 tests reported from its laboratory, compared to
approximately 619,800 tests reported, including approximately
604,200 tests reported from its laboratory, in the fourth quarter
of 2023, an increase of 24.5% from the prior period.
Total revenues were $1,696.9 million in the full year 2024
compared to $1,082.6 million in the full year 2023, an increase of
56.7%. The increase in total revenues was driven primarily by a
57.7% increase in product revenues, which were $1,685.1 million in
the full year 2024 compared to $1,068.5 million in the full year
2023. The increase in product revenues was primarily driven by an
increase in volume and average selling price improvements.
Natera processed approximately 3,064,600 tests in the full year
2024, including approximately 3,001,900 tests accessioned in its
laboratory, compared to approximately 2,496,100 tests processed,
including approximately 2,426,500 tests accessioned in its
laboratory, in the full year 2023.
In the full year 2024, Natera recognized revenue on
approximately 2,926,400 tests for which results were reported to
customers in the period (tests reported), including approximately
2,867,400 tests reported from its laboratory, compared to
approximately 2,388,200 tests reported, including approximately
2,323,400 tests reported from its laboratory, in the full year
2023, an increase of 22.5% from the prior period.
Gross profit2 for the three months ended December 31, 2024 and
2023 was $299.6 million and $159.9 million, respectively,
representing a gross margin of 62.9% and 51.4%, respectively. Gross
profit2 for the year ended December 31, 2024 and 2023 was $1,023.2
million and $492.7 million, respectively, representing a gross
margin of 60.3% and 45.5%, respectively. Natera had higher gross
margin in the fourth quarter of 2024 and for the full year 2024
primarily as a result of higher revenues and continued progress in
reducing cost of revenues associated with tests processed. Total
operating expenses, representing research and development expenses
and selling, general and administrative expenses, for the fourth
quarter of 2024 were $364.4 million, compared to $244.4 million in
the same period of the prior year, an increase of 49.1%. Total
operating expenses, representing research and development expenses
and selling, general and administrative expenses, for the full year
2024 were $1,245.5 million, compared to $939.0 million in the same
period of the prior year, an increase of 32.6%. The increases in
both periods were primarily driven by headcount growth to support
new product offerings as well as increases in consulting and legal
expenses.
Loss from operations for the fourth quarter of 2024 was $64.7
million compared to $84.5 million for the same period of the prior
year. Loss from operations for full year 2024 was $222.3 million
compared to $446.3 million for the same period of the prior
year.
Natera reported a net loss for the fourth quarter of 2024 of
$53.8 million, or ($0.41) per diluted share, compared to a net loss
of $78.0 million, or ($0.65) per diluted share, for the same period
in 2023. Weighted average shares outstanding were approximately
131.4 million in the fourth quarter of 2024 compared to 119.3
million in the fourth quarter of the prior year. Natera’s net loss
for the full year 2024 was $190.4 million, or ($1.53) per diluted
share, compared to a net loss of $434.8 million, or ($3.78) per
diluted share, in 2023. Weighted average shares outstanding were
124.7 million in the full year 2024 compared to 115.0 million for
the same period in the prior year.
At December 31, 2024, Natera held approximately $968.3 million
in cash, cash equivalents, short-term investments and restricted
cash, compared to $879.0 million as of December 31, 2023. As of
December 31, 2024, Natera had a total outstanding debt balance of
$80.4 million including accrued interest under its line of credit
with UBS at a variable interest rate of 30-day SOFR plus 50 bps.
The Company previously had convertible senior notes which were
redeemed or converted on October 11, 2024.
Financial Outlook
Natera anticipates 2025 total revenue of $1.87 billion to $1.95
billion; 2025 gross margin to be approximately 60% to 64% of
revenues; selling, general and administrative costs to be
approximately $950 million to $975 million; research and
development costs to be $525 million to $550 million; and net cash
inflow to be positive3.
Test Volume Summary
Unit
Q4 2024
Q4 2023
FY 2024
FY 2023
Definition
Tests processed
792,800
626,800
3,064,600
2,496,100
Tests accessioned in our laboratory plus
units processed outside of our laboratory
Tests accessioned
778,400
610,100
3,001,900
2,426,500
Test accessioned in our laboratory
Tests reported
771,700
619,800
2,926,400
2,388,200
Total tests reported
Tests reported in our laboratory
758,200
604,200
2,867,400
2,323,400
Total tests reported in our laboratory
less units reported outside of our laboratory
About Natera
Natera™ is a global leader in cell-free DNA and genetic testing,
dedicated to oncology, women’s health, and organ health. We aim to
make personalized genetic testing and diagnostics part of the
standard of care to protect health and enable earlier, more
targeted interventions that help lead to longer, healthier lives.
Natera’s tests are validated by more than 250 peer-reviewed
publications that demonstrate high accuracy. Natera operates ISO
13485-certified and CAP-accredited laboratories certified under the
Clinical Laboratory Improvement Amendments (CLIA) in Austin, Texas
and San Carlos, California. For more information, visit
www.natera.com.
Conference Call Information
Event:
Natera’s Fourth Quarter and Full
Year 2024 Financial Results Conference Call
Date:
Thursday, February 27, 2025
Time:
1:30 p.m. PT (4:30 p.m. ET)
Live Dial-In:
1-888-770-7321 (Domestic)
1-929-201-7107 (International)
Conference ID:
7684785
Webcast Link:
https://events.q4inc.com/attendee/538630796
Forward-Looking Statements
This press release contains forward-looking statements under the
meaning of the Private Securities Litigation Reform Act of 1995.
All statements other than statements of historical facts, including
statements regarding its market opportunity, anticipated products
and launch schedules, reimbursement coverage and product costs,
commercial and strategic partnerships and acquisitions, user
experience, clinical trials and studies, and its strategies, goals
and general business and market conditions, are forward-looking
statements. Any forward-looking statements contained in this press
release are based upon Natera’s current plans, estimates, and
expectations, as of the date of this release, and are not a
representation that such plans, estimates, or expectations will be
achieved.
These forward-looking statements are subject to known and
unknown risks and uncertainties that may cause actual results to
differ materially, including: we face numerous uncertainties and
challenges in achieving our financial projections and goals; we may
be unable to further increase the use and adoption of our products
through our direct sales efforts or through our laboratory
partners; we have incurred net losses since our inception and we
anticipate that we will continue to incur net losses for the
foreseeable future; our quarterly results may fluctuate from period
to period; our estimates of market opportunity and forecasts of
market growth may prove to be inaccurate; we may be unable to
compete successfully with existing or future products or services
offered by our competitors; we may engage in acquisitions,
dispositions or other strategic transactions that may not achieve
our anticipated benefits and could otherwise disrupt our business,
cause dilution to our stockholders or reduce our financial
resources; our products may not perform as expected; the results of
our clinical studies may not support the use and reimbursement of
our tests, particularly for microdeletions screening, and may not
be able to be replicated in later studies required for regulatory
approvals or clearances; if either of our primary CLIA-certified
laboratories becomes inoperable, we will be unable to perform our
tests and our business will be harmed; we rely on a limited number
of suppliers or, in some cases, single suppliers, for some of our
laboratory instruments and materials and may not be able to find
replacements or immediately transition to alternative suppliers; if
we are unable to successfully scale our operations, our business
could suffer; the marketing, sale, and use of Panorama and our
other products could result in substantial damages arising from
product liability or professional liability claims that exceed our
resources; we may be unable to expand, obtain or maintain
third-party payer coverage and reimbursement for our tests, and we
may be required to refund reimbursements already received;
third-party payers may withdraw coverage or provide lower levels of
reimbursement due to changing policies, billing complexities or
other factors; we could incur substantial costs and delays
complying with governmental regulations, including recently enacted
FDA regulations regarding LDTs; litigation and other regulatory or
governmental proceedings, related to our intellectual property or
the commercialization of our tests, are costly, time- consuming,
could result in our obligation to pay material judgments or incur
material settlement costs, and could limit our ability to
commercialize our tests; and any inability to effectively protect
our proprietary technology could harm our competitive position or
our brand.
We discuss these and other risks and uncertainties in greater
detail in the sections entitled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our periodic reports on Forms 10-K and 10-Q and in
other filings that we make with the SEC from time to time. These
documents are available on our website at www.natera.com under the
Investor Relations section and on the SEC’s website at
www.sec.gov.
We operate in a very competitive and rapidly changing
environment. New risks emerge from time to time. It is not possible
for our management to predict all risks, nor can we assess the
impact of all factors on our business or the extent to which any
factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statement. In light of these risks, uncertainties and assumptions,
you should not place undue reliance on our forward-looking
statements. Except as required by law, we undertake no obligation
to update publicly any forward-looking statements for any reason
after the date of this presentation to conform these statements to
actual results or to changes in our expectations.
References
- Positive cash inflow for the quarter ended December 31, 2024,
is derived from the GAAP Statement of Cash Flows as follows: net
cash provided by operating activities of $52.9 million, net cash
provided by financing activities of $10.9 million, offset by net
cash used in investing activities for purchases of property and
equipment, investment in related party and cash paid for
acquisition of intangible assets of $18.1 million.
- Gross profit is calculated as GAAP total revenues less GAAP
cost of revenues. Gross margin is calculated as gross profit
divided by GAAP total revenues.
- Cash (outflow) inflow is calculated as the sum of GAAP net cash
provided by (used in) operating activities, GAAP net cash provided
by (used in) financing activities, and GAAP net cash provided by
(used in) investing activities for purchases of property and
equipment, investment in related party, and acquisition of
intangible assets.
Natera, Inc.
Consolidated Balance
Sheets
(Unaudited)
(in thousands, except shares)
December 31,
December 31,
2024
2023
(1)
Assets
Current assets:
Cash, cash equivalents and restricted
cash
$
945,587
$
642,095
Short-term investments
22,689
236,882
Accounts receivable, net of allowance of
$7,259 in 2024 and $6,481 in 2023
314,165
278,289
Inventory
44,744
40,759
Prepaid expenses and other current
assets
48,635
60,524
Total current assets
1,375,820
1,258,549
Property and equipment, net
162,046
111,210
Operating lease right-of-use assets
86,149
56,537
Other assets
36,720
15,403
Total assets
$
1,660,735
$
1,441,699
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
34,922
$
14,998
Accrued compensation
62,114
45,857
Other accrued liabilities
146,893
149,405
Deferred revenue, current portion
19,754
16,612
Short-term debt financing
80,362
80,402
Total current liabilities
344,045
307,274
Long-term debt financing
—
282,945
Deferred revenue, long-term portion and
other liabilities
24,682
19,128
Operating lease liabilities, long-term
portion
96,588
67,025
Total liabilities
465,315
676,372
Commitments and contingencies
Stockholders’ equity:
Common stock (2)
12
11
Additional paid in capital
3,763,614
3,145,837
Accumulated deficit
(2,567,862
)
(2,377,436
)
Accumulated other comprehensive loss
(344
)
(3,085
)
Total stockholders’ equity
1,195,420
765,327
Total liabilities and stockholders’
equity
$
1,660,735
$
1,441,699
(1)
The consolidated balance sheet at December
31, 2023 has been derived from the audited consolidated financial
statements at that date included in the Company’s Annual Report on
Form 10-K for the year ended December 31, 2023.
(2)
As of December 31, 2024 and December 31,
2023, there were approximately 132,646,000 and 119,581,000 shares
of common stock issued and outstanding, respectively.
Natera, Inc.
Consolidated Statements of
Operations and Comprehensive Loss
(Unaudited)
(in thousands, except per share
data)
Year ended December
31,
2024
2023
2022
Revenues
Product revenues
$
1,685,074
$
1,068,522
$
797,307
Licensing and other revenues
11,837
14,049
22,915
Total revenues
1,696,911
1,082,571
820,222
Cost and expenses
Cost of product revenues
672,304
588,564
453,632
Cost of licensing and other revenues
1,449
1,267
2,624
Research and development
404,138
320,678
316,415
Selling, general and administrative
841,314
618,307
588,591
Total cost and expenses
1,919,205
1,528,816
1,361,262
Loss from operations
(222,294
)
(446,245
)
(541,040
)
Interest expense
(10,685
)
(12,638
)
(9,319
)
Interest and other income, net
43,248
24,353
3,538
Loss before income taxes
(189,731
)
(434,530
)
(546,821
)
Income tax expense
(695
)
(271
)
(978
)
Net loss
$
(190,426
)
$
(434,801
)
$
(547,799
)
Unrealized gain (loss) on
available-for-sale securities, net of tax
2,741
13,277
(14,075
)
Comprehensive loss
$
(187,685
)
$
(421,524
)
$
(561,874
)
Net loss per share:
Basic and diluted
$
(1.53
)
$
(3.78
)
$
(5.57
)
Weighted-average number of shares used in
computing basic and diluted net loss per share:
Basic and diluted
124,718
114,997
98,408
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227586173/en/
Investor Relations Mike Brophy,
CFO, Natera, Inc., 510-826-2350
Media Lesley Bogdanow, VP of
Corporate Communications, Natera, Inc., pr@natera.com
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