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Invitae Q3 Revenues Increase 66 Percent

NEW YORK – Invitae reported after the close of the market on Monday that its third quarter revenues increased 66 percent year over year, exceeding the consensus Wall Street estimate.

For the three months ended Sept. 30, the San Francisco-based genetic testing company reported $114.4 million in revenues, up from $68.7 million a year ago. Analysts, on average, had projected revenues of $126.6 million.

The company's revenues from testing in Q3 totaled $111.7 million, a 66 percent increase from $67.3 million in Q3 2020. Other revenues nearly doubled during the quarter to $2.7 million from $1.4 million in the prior year quarter.

Invitae's strong financial performance during the quarter was driven by an 89 percent increase in billable test volume. The company reported 296,000 billed tests in Q3 compared to 157,000 such tests during the year-ago period.

During a call to discuss the company's Q3 financials, Invitae CFO Roxi Wen broke out revenue contributions from each of the company's business divisions. In the oncology division, which includes tests for assessing germline cancer risk and guiding treatment, revenues were $69 million, a 64 percent increase compared to $42 million in the prior year quarter. The women's health division, including noninvasive prenatal screening, carrier testing, and other reproductive tests, brought in $21 million in Q3, nearly double the $11 million in this segment in Q3 2020.

The rare disease and other testing segment, which includes tests for cardiovascular and neurologic conditions and newborn screening, netted $15 million during the third quarter, a 66 percent growth compared to $9 million in the year-ago period. Revenue from data and other services — including data management, data-as-a-service offerings, data analytics, and certain biopharma and patient access programs — were $10 million, also a 66 percent increase compared to $6 million in Q3 2020.

Invitae's R&D expenses more than doubled to $97.5 million from $37.8 million in Q3 2020, while SG&A expenses also increased more than twofold to $142.3 million from $65.6 million a year ago.

Vishal Sikri, president of oncology at Invitae, provided an update during the call on how the company is growing its pipeline of tests. For example, by year end, the company will launch expanded DNA-based research-use tests that include the ability to assess microsatellite instability and tumor mutation burden, he said.

The company will also add polygenic risk scores to its germline genetic test offerings next year and is working on a single test that will gauge germline alterations for assessing cancer risk and somatic alterations for guiding therapy decisions. In addition, it will start launching CE-IVD marked kits for profiling blood and tumor tissue in European and Asian markets next year and work on advancing LDT and kitted comprehensive profiling tests in the US.

Invitae's net loss for the quarter totaled $198.2 million, or $.91 per share, compared to a net loss of $102.9 million, or $.78 per share, in Q3 2020. Non-GAAP net loss for the quarter was $175.9 million, or $.81 per share. On average, analysts had estimated a $.71 per share net loss.

Invitae ended the quarter with $921.6 million in cash and cash equivalents and $320.5 million in marketable securities.

The company lowered its full-year 2021 revenue expectation to between $450 million and $475 million, representing 60 percent to 70 percent year-over-year growth. After Q2, the company had projected FY 2021 revenues of between $475 million and $500 million. "The change in revenue outlook was primarily due to greater-than-expected seasonal impact in Q3," the company said in a statement.