NEW YORK – Invitae said on Tuesday that its first quarter revenues increased 19 percent in Q1 2022, below the consensus Wall Street estimate.
For the period ended March 31, the San Francisco-based genetic testing company reported $123.7 million in revenues, up from $103.6 million a year ago. Analysts' average revenue estimate was $128.1 million.
The COVID-19 pandemic restrained patients' medical visits and impacted Invitae's testing revenue in the first months of 2022, according to Sean George, cofounder and CEO of Invitae. "While we started on the low end of the plan for the year, we've seen improving momentum and new account growth throughout and exiting the quarter," George said during a call to discuss the firm's financial performance during the quarter.
The company's revenues from testing during Q1 2022 totaled $119.5 million, a 20 percent increase from $99.3 million in Q1 2021. Other revenues declined 2 percent during the quarter to $4.2 million compared to $4.3 million in the prior year.
Invitae's healthcare provider accounts grew in Q1 2022 to 19,436, a 31 percent increase compared to the prior-year period.
At the end of Q1 2022, the firm also had 206 pharma and commercial partnerships, a 72 percent increase over Q1 2021. This part of the business is growing by offering Invitae's data and data services platform to pharma, health systems, software, and service partners. More than 2.8 million patients, or nearly 62 percent of tested patients, have agreed to share their data through Invitae's platform.
Invitae spent $128.2 million on R&D during Q1 2022, up 60 percent from $80.4 million in the year-ago quarter, while SG&A expenses were $60.1 million, up 17 percent from $51.2 million a year ago.
Invitae's net loss for the quarter totaled $181.9 million, or $.80 per share, compared to a net loss of $109.5 million, or $.56 per share, in Q1 2021. Adjusted net loss for the quarter was $177.4 million, or $.78 per share, more than analysts' average estimate of a $.76 per share loss.
"Q1 was soft," George acknowledged about the company's performance in the quarter. "We do believe we can execute for the rest of the year." That would entail, he added, oncology test volumes to pick up and the prenatal, rare disease, and data services businesses to also grow.
The firm has previously stated that it is entering a period where it will no longer pursue growth at all costs because it has hit a peak in its cash burn. George said during the call that the company is committed to reducing operating expenses and prioritizing its product and service portfolio. "The goal now is to keep this growth going while extending the cash runway to the end of 2023 or beyond," he said.
In terms of test portfolio optimization, Invitae will focus on supporting the development and launch of tests in the oncology, reproductive health, rare disease, and pediatric segments. The company will also continue to invest in building patient networks to enable data sharing and grow its data services revenues.
However, Invitae will put on hold or significantly slow down advancing genetic tests for other indications, such as for cardiovascular disease and neurodegeneration. "Those are two examples where we're putting them on ice. We're going to hold off," George said.
Even if these tests can be brought to market cost effectively on Invitae's test platform, "now is not the time," George said. "It's unfortunate, but it's the reality."
The firm ended the quarter with $325.3 million in cash and cash equivalents, and $549.4 million in marketable securities.
On Wednesday morning, Invitae shares on the Nasdaq were trading at $5.01, down around 10 percent.