– Reported revenue of $120.5 million, a 12% year-over-year decrease due
to exited businesses and geographies; pro forma revenue up slightly
year-over-year –
– GAAP gross margin was 27.4% and non-GAAP
gross margin was 49.8%; continued improvement in non-GAAP gross
margin for eight consecutive quarters –
– Company improves ongoing cash burn annual
guidance to $220-$245 million; adjusts 2023 revenue guidance to
$480-$500
million from over $500 million
previously –
– Conference call and webcast today at
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time –
SAN
FRANCISCO, Aug. 8, 2023 /PRNewswire/ -- Invitae
(NYSE: NVTA), a leading medical genetics company, today announced
financial and operating results for the second quarter ended
June 30, 2023.
"In the second quarter, we continued our steady march toward
becoming a profitable business while continuing to serve our
patients and clients. We performed well in non-GAAP gross margin
and cash burn trajectory as both continued to show meaningful
improvements. On a pro forma basis, total revenue was up
approximately 1% year-over-year. Rare disease, women's health and
our data business all posted strong double-digit revenue growth
during the same period. Despite solid volume growth in our
hereditary cancer tests, oncology sales were impacted by
lower-than-expected insurance payments and lower fee-for-service
revenue," said Ken Knight, president
and chief executive officer of Invitae.
Mr. Knight continued, "Looking ahead to the second half, our
efforts are focused on expanding our hereditary cancer customer
base, improving overall customer experience, expanding adoption of
our product offerings and continuing our push to improve payment
rates and average payment per test. We are committed to
establishing durable paths for profitable growth and creating the
capacity to pursue innovation and investment in our future. These
tenets will inform our efforts to position us for future
success."
Second Quarter 2023 Financial Results
- Generated revenue of $120.5
million in the second quarter of 2023 versus $136.6 million in the second quarter of 2022,
reflecting the impact of exited businesses and geographies
announced in 2022. On a pro forma basis, or after removing
approximately $17.5 million of
revenue from second quarter 2022 relating to exited businesses and
geographies, the second quarter 2023 revenue grew approximately 1%
year-over-year on lower than expected average payments from
hereditary cancer tests and weaker fee-for-service revenue.
- GAAP gross profit was $33.1
million in the quarter, compared with $26.3 million over the same period of 2022, or
25.8% year-over-year growth. Non-GAAP gross profit was $60.0 million in the quarter, compared with
$54.7 million in the second quarter
of 2022, representing a year-over-year growth rate of 9.7%.
- GAAP gross margin was 27.4% in the quarter, as compared with
19.2% in the second quarter of 2022. Non-GAAP gross margin was
49.8% in the quarter, as compared with 40.1% in the second quarter
of 2022. This represents continued improvement for the eighth
consecutive quarter.
- Cash, cash equivalents, restricted cash and marketable
securities were $335.6 million as of
June 30, 2023, compared to
$557.1 million as of December 31, 2022.
- Net decrease in cash, cash equivalents, restricted cash and net
changes in investments in the quarter was $55.1 million. Cash burn in the quarter was
$53.3 million. Total patient
population as of June 30, 2023 is
approximately 4.1 million with over 63% available for data
sharing.
Total GAAP operating expenses, which excludes cost of revenue,
for the second quarter of 2023 were $259.5
million, compared to $2.5
billion in the second quarter of 2022, which included
significant goodwill and IPR&D impairment charges of
$2.3 billion. GAAP operating expense
as a percentage of revenue was 215%, compared to 1,864% in the
second quarter of 2022. Non-GAAP operating expenses were
$157.7 million for the second quarter
of 2023, compared to $200.1 million
for the second quarter of 2022. Non-GAAP operating expense as a
percentage of revenue was 131%, compared to 146% in the second
quarter of 2022.
Net loss for the second quarter of 2023 was $206.5 million, or a $0.78 net loss per share, compared to net loss of
$2.5 billion, or net loss per share
of $10.87, for the second quarter of
2022. The second quarter 2022 net loss included the $2.3 billion goodwill charge as mentioned above.
Non-GAAP net loss for the second quarter of 2023 was $78.2 million, or a non-GAAP net loss of
$0.30 per share, compared to a
non-GAAP net loss of $158.5 million,
or an $0.68 non-GAAP net loss per
share, for the second quarter of 2022.
Financial Guidance
Management is adjusting 2023 revenue guidance to $480-$500 million
compared to its previous guidance of over $500 million.
The company continues to expect its non-GAAP gross margin for
2023 to be between 48%-50%.
Ongoing cash burn, which includes cash, cash equivalents,
marketable securities, and restricted cash and excludes certain
items, is now expected to improve to the range of $220-$245 million
in 2023 from the company's previous guidance range of $250-$275 million.
In 2023, cash burn will be higher than ongoing cash burn as a
result of the company's voluntary repayment of its $135 million term loan in the first quarter of
2023.
Webcast and Conference Call Details
Management will host a conference call and webcast today at
4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time to discuss financial
results and recent developments. To access the conference call,
please register at the link below:
https://www.netroadshow.com/events/login?show=53f2c7d8&confId=53596
Upon registering, each participant will be provided with call
details and access codes.
The live webcast of the call and slide deck may be accessed
here or by visiting the investors section of the company's
website at ir.invitae.com. A replay of the webcast will be
available shortly after the conclusion of the call and will be
archived on the company's website.
About Invitae
Invitae (NYSE: NVTA) is a leading
medical genetics company trusted by millions of patients and their
providers to deliver timely genetic information using digital
technology. We aim to provide accurate and actionable answers to
strengthen medical decision-making for individuals and their
families. Invitae's genetics experts apply a rigorous approach to
data and research, serving as the foundation of their mission to
bring comprehensive genetic information into mainstream medicine to
improve healthcare for billions of people.
To learn more, visit invitae.com and follow for updates on
Twitter, Instagram, Facebook and LinkedIn @Invitae.
Safe Harbor Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
relating to the company's mission; the company's beliefs regarding
the potential of its business, and its business priorities and
initiatives and the potential benefits thereof; the company's
future financial and operating results, and the drivers of future
financial results; the company's focus, strategy, roadmap and
product pipeline; and the company's financial guidance for 2023.
Forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially and reported
results should not be considered as an indication of future
performance. These risks and uncertainties include, but are not
limited to: the availability of and need for capital; the ability
to service the company's debt obligations; the ability of the
company to successfully execute its strategic business realignment
and achieve the intended benefits thereof on the expected timeframe
or at all; unforeseen or greater than expected costs associated
with the strategic business realignment; the risk that the
disruption that may result from the realignment may harm the
company's business, market share or its relationship with customers
or potential customers; the impact of inflation and the current
economic environment on the company's business; the company's
ability to grow its business in a cost-efficient manner; the
company's history of losses; the company's ability to maintain
important customer relationships; the company's ability to compete;
the company's need to scale its infrastructure in advance of demand
for its tests and to increase demand for its tests; the risk that
the company may not obtain or maintain sufficient levels of
reimbursement for its tests; the applicability of clinical results
to actual outcomes; risks associated with litigation; the company's
ability to use rapidly changing genetic data to interpret test
results accurately and consistently; laws and regulations
applicable to the company's business; and the other risks set forth
in the reports filed by the company with the SEC, including its
Quarterly Report on Form 10-Q for the quarter ended March 31, 2023. These forward-looking statements
speak only as of the date hereof, and Invitae Corporation disclaims
any obligation to update these forward-looking statements.
Non-GAAP Financial Measures
To supplement the
company's consolidated financial statements prepared in accordance
with generally accepted accounting principles in the United States (GAAP), the company is
providing several non-GAAP measures. These non-GAAP financial
measures exclude certain items that are required by GAAP. In
addition, these non-GAAP measures are not based on any standardized
methodology prescribed by GAAP and are not necessarily comparable
to similarly-titled measures presented by other companies.
Management believes these non-GAAP financial measures are useful to
investors in evaluating the company's ongoing operating results and
trends. Management uses such non-GAAP information to manage the
company's business and monitor its performance.
Other companies, including companies in the same industry, may
not use the same non-GAAP measures or may calculate these metrics
in a different manner than management or may use other financial
measures to evaluate their performance, all of which could reduce
the usefulness of these non-GAAP measures as comparative measures.
Because of these limitations, the company's non-GAAP financial
measures should not be considered in isolation from, or as a
substitute for, financial information prepared in accordance with
GAAP. Investors are encouraged to review the non-GAAP
reconciliations provided in the tables below and on the company's
website.
In addition, this press release includes the company's non-GAAP
gross margin and cash burn guidance, non-GAAP measures used to
describe the company's expected performance. The company has not
presented a reconciliation of these non-GAAP measures to the most
comparable GAAP financial measures, because the reconciliations
could not be prepared without unreasonable effort. The information
necessary to prepare the reconciliations are not available on a
forward-looking basis and cannot be accurately predicted. The
unavailable information could have a significant impact on the
calculation of the comparable GAAP financial measures.
Invitae Contacts:
Investor Relations
Hoki
Luk
ir@invitae.com
Public Relations
Amy
Hadsock
pr@invitae.com
INVITAE
CORPORATION Condensed Consolidated Balance
Sheets (in thousands)
(unaudited)
|
|
|
June 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
222,758
|
|
$
257,489
|
Marketable
securities
|
102,379
|
|
289,611
|
Accounts
receivable
|
85,610
|
|
96,148
|
Inventory
|
20,814
|
|
30,386
|
Prepaid expenses and
other current assets
|
19,664
|
|
19,496
|
Total current
assets
|
451,225
|
|
693,130
|
Property and equipment,
net
|
92,091
|
|
108,723
|
Operating lease
assets
|
74,718
|
|
106,563
|
Restricted
cash
|
10,508
|
|
10,030
|
Intangible assets,
net
|
873,924
|
|
1,012,549
|
Other assets
|
20,573
|
|
23,121
|
Total
assets
|
$ 1,523,039
|
|
$ 1,954,116
|
Liabilities and
stockholders' (deficit) equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
23,067
|
|
$
13,984
|
Accrued
liabilities
|
107,951
|
|
74,388
|
Operating lease
obligations
|
16,436
|
|
14,600
|
Finance lease
obligations
|
4,514
|
|
5,121
|
Total current
liabilities
|
151,968
|
|
108,093
|
Operating lease
obligations, net of current portion
|
139,630
|
|
134,386
|
Finance lease
obligations, net of current portion
|
1,604
|
|
3,780
|
Debt
|
—
|
|
122,333
|
Convertible senior
notes, net
|
1,170,611
|
|
1,470,783
|
Convertible senior
secured notes (at fair value)
|
249,571
|
|
—
|
Deferred tax
liability
|
6,200
|
|
8,130
|
Other long-term
liabilities
|
4,241
|
|
4,775
|
Total
liabilities
|
1,723,825
|
|
1,852,280
|
|
|
|
|
Stockholders' (deficit)
equity:
|
|
|
|
Common
stock
|
27
|
|
25
|
Accumulated other
comprehensive income (loss)
|
8,910
|
|
(80)
|
Additional paid-in
capital
|
5,018,112
|
|
4,931,032
|
Accumulated
deficit
|
(5,227,835)
|
|
(4,829,141)
|
Total stockholders'
(deficit) equity
|
(200,786)
|
|
101,836
|
Total liabilities and
stockholders' (deficit) equity
|
$ 1,523,039
|
|
$ 1,954,116
|
INVITAE
CORPORATION Condensed Consolidated Statements of
Operations (in thousands, except per share data)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
Test
revenue
|
|
$
115,943
|
|
$
133,182
|
|
$
228,566
|
|
$
252,679
|
Other
revenue
|
|
4,589
|
|
3,440
|
|
9,322
|
|
7,634
|
Total
revenue
|
|
120,532
|
|
136,622
|
|
237,888
|
|
260,313
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
87,474
|
|
110,340
|
|
175,916
|
|
207,456
|
Research and
development
|
|
63,824
|
|
115,146
|
|
125,802
|
|
243,382
|
Selling and
marketing
|
|
44,732
|
|
62,749
|
|
89,242
|
|
122,893
|
General and
administrative
|
|
69,966
|
|
50,854
|
|
115,207
|
|
102,282
|
Goodwill and IPR&D
impairment
|
|
—
|
|
2,313,047
|
|
—
|
|
2,313,047
|
Restructuring and
other costs
|
|
80,998
|
|
4,817
|
|
133,554
|
|
4,817
|
Total operating
expenses
|
|
346,994
|
|
2,656,953
|
|
639,721
|
|
2,993,877
|
Loss from
operations
|
|
(226,462)
|
|
(2,520,331)
|
|
(401,833)
|
|
(2,733,564)
|
Other income (expense),
net:
|
|
|
|
|
|
|
|
|
Loss on extinguishment
of debt, net
|
|
—
|
|
—
|
|
(10,822)
|
|
—
|
Debt issuance
costs
|
|
—
|
|
—
|
|
(19,859)
|
|
—
|
Change in fair value
of convertible
senior secured notes
|
|
20,619
|
|
—
|
|
38,923
|
|
—
|
Change in fair value
of acquisition-
related liabilities
|
|
49
|
|
6,190
|
|
267
|
|
16,193
|
Other income,
net
|
|
4,379
|
|
1,136
|
|
10,262
|
|
1,572
|
Total other income,
net
|
|
25,047
|
|
7,326
|
|
18,771
|
|
17,765
|
Interest
expense
|
|
(6,020)
|
|
(14,019)
|
|
(17,516)
|
|
(28,004)
|
Net loss before
taxes
|
|
(207,435)
|
|
(2,527,024)
|
|
(400,578)
|
|
(2,743,803)
|
Income tax
benefit
|
|
924
|
|
3,563
|
|
1,884
|
|
38,483
|
Net loss
|
|
$
(206,511)
|
|
$
(2,523,461)
|
|
$
(398,694)
|
|
$ (2,705,320)
|
Net loss per share,
basic and diluted
|
|
$
(0.78)
|
|
$
(10.87)
|
|
$
(1.55)
|
|
$
(11.75)
|
Shares used in
computing net loss per
share, basic and diluted
|
|
263,836
|
|
232,117
|
|
256,910
|
|
230,304
|
INVITAE
CORPORATION Condensed Consolidated Statements of Cash
Flows (in thousands)
(unaudited)
|
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
Net loss
|
$
(398,694)
|
|
$
(2,705,320)
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
Goodwill and IPR&D
impairment
|
—
|
|
2,313,047
|
Impairments and losses
on disposals of long-lived assets, net
|
131,195
|
|
4,817
|
Depreciation and
amortization
|
68,662
|
|
64,247
|
Stock-based
compensation
|
59,557
|
|
103,901
|
Amortization of debt
discount and issuance costs
|
4,259
|
|
7,776
|
Loss on extinguishment
of debt, net
|
10,822
|
|
—
|
Debt issuance
costs
|
19,859
|
|
—
|
Change in fair value
of convertible senior secured notes
|
(38,923)
|
|
—
|
Remeasurements of
liabilities associated with business combinations
|
(267)
|
|
(16,193)
|
Benefit from income
taxes
|
(1,884)
|
|
(38,483)
|
Post-combination
expense for acceleration of unvested equity and
deferred stock compensation
|
1,660
|
|
3,320
|
Amortization of
premiums and discounts on investment securities
|
(4,966)
|
|
1,178
|
Non-cash lease
expense
|
6,681
|
|
3,192
|
Other
|
824
|
|
(1,321)
|
Changes in operating
assets and liabilities, net of businesses acquired:
|
|
|
|
Accounts
receivable
|
10,538
|
|
(16,359)
|
Inventory
|
9,572
|
|
(15,557)
|
Prepaid expenses and
other current assets
|
(168)
|
|
(2,134)
|
Other
assets
|
587
|
|
(2,104)
|
Accounts
payable
|
9,092
|
|
6,575
|
Accrued expenses and
other long-term liabilities
|
22,291
|
|
7,186
|
Net cash used in
operating activities
|
(89,303)
|
|
(282,232)
|
Cash flows from
investing activities:
|
|
|
|
Purchases of marketable
securities
|
(228,092)
|
|
(605,454)
|
Proceeds from
maturities of marketable securities
|
420,440
|
|
301,933
|
Purchases of property
and equipment
|
(2,741)
|
|
(36,970)
|
Proceeds from sale of
property and equipment
|
332
|
|
—
|
Other
|
3
|
|
—
|
Net cash provided by
(used in) investing activities
|
189,942
|
|
(340,491)
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuance
of common stock, net
|
2,170
|
|
6,234
|
Proceeds from issuance
of Series B convertible senior secured notes due
2028
|
30,000
|
|
—
|
Payments for debt
issuance costs and prepayment fees
|
(28,014)
|
|
—
|
Repayment of
debt
|
(135,000)
|
|
—
|
Finance lease principal
payments
|
(2,576)
|
|
(2,677)
|
Settlement of
acquisition obligations
|
(1,472)
|
|
(707)
|
Net cash (used in)
provided by financing activities
|
(134,892)
|
|
2,850
|
Net decrease in
cash, cash equivalents and restricted cash
|
(34,253)
|
|
(619,873)
|
Cash, cash
equivalents and restricted cash at beginning of
period
|
267,519
|
|
933,525
|
Cash, cash
equivalents and restricted cash at end of period
|
$
233,266
|
|
$
313,652
|
Reconciliation of
GAAP to Non-GAAP Cost of Revenue (in thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cost of
revenue
|
|
$
87,474
|
|
$
110,340
|
|
$ 175,916
|
|
$
207,456
|
Amortization of
acquired intangible assets
|
|
(26,090)
|
|
(27,907)
|
|
(53,040)
|
|
(45,907)
|
Acquisition-related
stock-based compensation
|
|
(22)
|
|
(147)
|
|
(102)
|
|
(279)
|
Acquisition-related
post-combination expense
|
|
—
|
|
(387)
|
|
—
|
|
(891)
|
Restructuring-related
retention bonuses
|
|
(50)
|
|
—
|
|
(138)
|
|
—
|
Inventory and prepaid
write-offs
|
|
(825)
|
|
—
|
|
(974)
|
|
—
|
Non-GAAP cost of
revenue
|
|
$
60,487
|
|
$
81,899
|
|
$
121,662
|
|
$
160,379
|
Reconciliation of
GAAP to Non-GAAP Gross Profit (in thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
$
120,532
|
|
$
136,622
|
|
$
237,888
|
|
$
260,313
|
Cost of
revenue
|
|
87,474
|
|
110,340
|
|
175,916
|
|
207,456
|
Gross profit
|
|
33,058
|
|
26,282
|
|
61,972
|
|
52,857
|
Amortization of
acquired intangible assets
|
|
26,090
|
|
27,907
|
|
53,040
|
|
45,907
|
Acquisition-related
stock-based compensation
|
|
22
|
|
147
|
|
102
|
|
279
|
Acquisition-related
post-combination expense
|
|
—
|
|
387
|
|
—
|
|
891
|
Restructuring-related
retention bonuses
|
|
50
|
|
—
|
|
138
|
|
—
|
Inventory and prepaid
write-offs
|
|
825
|
|
—
|
|
974
|
|
—
|
Non-GAAP gross
profit
|
|
$
60,045
|
|
$
54,723
|
|
$
116,226
|
|
$
99,934
|
Reconciliation of
GAAP to Non-GAAP Research and Development Expense (in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Research and
development
|
|
$
63,824
|
|
$ 115,146
|
|
$ 125,802
|
|
$ 243,382
|
Amortization of
acquired intangible assets
|
|
—
|
|
(502)
|
|
(90)
|
|
(1,032)
|
Acquisition-related
stock-based compensation
|
|
(15,190)
|
|
(23,255)
|
|
(28,527)
|
|
(47,024)
|
Acquisition-related
post-combination expense
|
|
(842)
|
|
(2,643)
|
|
(1,684)
|
|
(5,224)
|
Restructuring-related
retention bonuses
|
|
(613)
|
|
—
|
|
(1,383)
|
|
—
|
Restructuring-related
accelerated depreciation
|
|
(32)
|
|
—
|
|
(216)
|
|
—
|
Non-GAAP research and
development
|
|
$
47,147
|
|
$ 88,746
|
|
$
93,902
|
|
$ 190,102
|
Reconciliation of
GAAP to Non-GAAP Selling and Marketing Expense (in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Selling and
marketing
|
|
$ 44,732
|
|
$
62,749
|
|
$ 89,242
|
|
$ 122,893
|
Amortization of
acquired intangible assets
|
|
(1,569)
|
|
(1,622)
|
|
(3,138)
|
|
(3,246)
|
Acquisition-related
stock-based compensation
|
|
(201)
|
|
(985)
|
|
(750)
|
|
(1,568)
|
Restructuring-related
retention bonuses
|
|
(230)
|
|
—
|
|
(460)
|
|
—
|
Non-GAAP selling and
marketing
|
|
$ 42,732
|
|
$
60,142
|
|
$ 84,894
|
|
$
118,079
|
Reconciliation of
GAAP to Non-GAAP General and Administrative Expense (in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
General and
administrative
|
|
$
69,966
|
|
$
50,854
|
|
$
115,207
|
|
$ 102,282
|
Change in fair value
of contingent
consideration
|
|
—
|
|
2,004
|
|
—
|
|
1,850
|
Acquisition-related
stock-based compensation
|
|
(1,243)
|
|
(1,646)
|
|
(2,343)
|
|
(3,218)
|
Restructuring-related
retention bonuses
|
|
(874)
|
|
—
|
|
(1,253)
|
|
—
|
Non-GAAP general and
administrative
|
|
$
67,849
|
|
$
51,212
|
|
$
111,611
|
|
$ 100,914
|
Reconciliation of
Operating Expenses to Non-GAAP Operating Expenses (in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Research and
development
|
|
$ 63,824
|
|
$ 115,146
|
|
$
125,802
|
|
$
243,382
|
Selling and
marketing
|
|
44,732
|
|
62,749
|
|
89,242
|
|
122,893
|
General and
administrative
|
|
69,966
|
|
50,854
|
|
115,207
|
|
102,282
|
Goodwill and IPR&D
impairment
|
|
—
|
|
2,313,047
|
|
—
|
|
2,313,047
|
Restructuring and other
costs
|
|
80,998
|
|
4,817
|
|
133,554
|
|
4,817
|
Operating
expenses
|
|
259,520
|
|
2,546,613
|
|
463,805
|
|
2,786,421
|
Goodwill and IPR&D
impairment
|
|
—
|
|
(2,313,047)
|
|
—
|
|
(2,313,047)
|
Restructuring and
other costs
|
|
(80,998)
|
|
(4,817)
|
|
(133,554)
|
|
(4,817)
|
Change in fair value
of contingent
consideration
|
|
—
|
|
2,004
|
|
—
|
|
1,850
|
Amortization of
acquired intangible assets
|
|
(1,569)
|
|
(2,124)
|
|
(3,228)
|
|
(4,278)
|
Acquisition-related
stock-based
compensation
|
|
(16,634)
|
|
(25,886)
|
|
(31,620)
|
|
(51,810)
|
Acquisition-related
post-combination expense
|
|
(842)
|
|
(2,643)
|
|
(1,684)
|
|
(5,224)
|
Restructuring-related
retention bonuses
|
|
(1,717)
|
|
—
|
|
(3,096)
|
|
—
|
Restructuring-related
accelerated
depreciation
|
|
(32)
|
|
—
|
|
(216)
|
|
—
|
Non-GAAP operating
expenses
|
|
$
157,728
|
|
$ 200,100
|
|
$
290,407
|
|
$
409,095
|
Reconciliation of
Other Income, Net to Non-GAAP Other Income, Net (in
thousands)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Other income,
net
|
|
$
25,047
|
|
$
7,326
|
|
$
18,771
|
|
$
17,765
|
Change in fair value
of acquisition-related
liabilities
|
|
(49)
|
|
(6,190)
|
|
(267)
|
|
(16,193)
|
Non-GAAP other income,
net
|
|
$
24,998
|
|
$
1,136
|
|
$
18,504
|
|
$
1,572
|
Reconciliation of
Net Loss to Non-GAAP Net Loss and Non-GAAP Net Loss Per
Share (in thousands, except per share data)
(unaudited)
|
|
|
|
Three Months
Ended June
30,
|
|
Six Months
Ended June
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net loss
|
|
$
(206,511)
|
|
$
(2,523,461)
|
|
$
(398,694)
|
|
$
(2,705,320)
|
Goodwill and IPR&D
impairment
|
|
—
|
|
2,313,047
|
|
—
|
|
2,313,047
|
Restructuring and
other costs
|
|
80,998
|
|
4,817
|
|
133,554
|
|
4,817
|
Change in fair value
of contingent
consideration
|
|
—
|
|
(2,004)
|
|
—
|
|
(1,850)
|
Change in fair value
of acquisition-related
assets and liabilities
|
|
(49)
|
|
(6,190)
|
|
(267)
|
|
(16,193)
|
Amortization of
acquired intangible assets
|
|
27,659
|
|
30,031
|
|
56,268
|
|
50,185
|
Acquisition-related
stock-based compensation
|
|
16,656
|
|
26,033
|
|
31,722
|
|
52,089
|
Acquisition-related
post-combination expense
|
|
842
|
|
3,030
|
|
1,684
|
|
6,115
|
Restructuring-related
retention bonuses
|
|
1,767
|
|
—
|
|
3,234
|
|
—
|
Restructuring-related
accelerated depreciation
|
|
32
|
|
—
|
|
216
|
|
—
|
Inventory and prepaid
write-offs
|
|
825
|
|
—
|
|
974
|
|
—
|
Acquisition-related
income tax benefit
|
|
(460)
|
|
(3,805)
|
|
(630)
|
|
(38,805)
|
Non-GAAP net
loss
|
|
$ (78,241)
|
|
$
(158,502)
|
|
$
(171,939)
|
|
$
(335,915)
|
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
|
$
(0.78)
|
|
$
(10.87)
|
|
$
(1.55)
|
|
$
(11.75)
|
Non-GAAP net loss per
share, basic and diluted
|
|
$
(0.30)
|
|
$
(0.68)
|
|
$
(0.67)
|
|
$
(1.46)
|
Shares used in
computing net loss per share,
basic and diluted
|
|
263,836
|
|
232,117
|
|
256,910
|
|
230,304
|
Reconciliation of
Net Decrease (Increase) in Cash, Cash Equivalents and Restricted
Cash to Cash Burn (in thousands)
(unaudited)
|
|
|
Three Months
Ended
|
Six Months
Ended
|
|
March 31,
2023
|
|
June 30,
2023
|
|
June 30,
2023
|
Net cash used in
operating activities
|
$
(34,398)
|
|
$
(54,905)
|
|
$
(89,303)
|
Net cash provided by
investing activities
|
73,878
|
|
116,064
|
|
189,942
|
Net cash (used in)
provided by financing activities
|
(135,768)
|
|
876
|
|
(134,892)
|
Net (decrease) increase
in cash, cash equivalents and
restricted cash
|
(96,288)
|
|
62,035
|
|
(34,253)
|
Adjustments:
|
|
|
|
|
|
Net changes in
investments
|
(75,202)
|
|
(117,146)
|
|
(192,348)
|
Proceeds from issuance
of Series B convertible senior
secured notes due 2028, net of issuance costs
|
(22,435)
|
|
1,763
|
|
(20,672)
|
Cash burn
|
$
(193,925)
|
|
$
(53,348)
|
|
$
(247,273)
|
|
|
|
|
|
|
• Cash burn for the
three months ended March 31, 2023 includes $135.0 million repayment
of debt, $8.1 million of
prepayment fees, $3.7 million in restructuring-related cash
payments, and $1.5 million of acquisition-related
payments.
|
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SOURCE Invitae Corporation