NEW YORK – Invitae reported after market close Tuesday that its total third quarter revenues rose 17 percent year over year, driven largely by efforts to optimize the company's portfolio.
For the three months ended Sept. 30, the San Francisco-based company said that its revenues increased to $133.5 million compared to $114.4 million for the same quarter last year and above the consensus Wall Street estimate of $131.4 million.
In a conference call with investors, company President and CEO Ken Knight said that the firm expects further tailwinds to revenue growth from expanded guideline inclusion, which he expects will drive broader clinical adoption and more consistent reimbursement.
"We think guideline expansion recommending screening for all pregnancies, including average risk, has created a meaningful tailwind to us and to this segment, with a [total addressable market] of over $2 billion," he said.
Knight further highlighted growth opportunities stemming from newer products such as the recently acquired Ciitizen real-world data platform, which has been used to support an investigational new drug application by Praxis and is currently being used by AstraZeneca for that company's cholangiocarcinoma study.
"While currently a small part of our total revenue," Knight said, "our data segment is a high-growth, high-margin, and scalable business, and there are more opportunities in our pipeline."
Invitae's R&D spending this quarter fell nearly 11 percent year over year to $87.2 million from $97.5 million while its SG&A expenses declined approximately 34 percent to $94 million from $142 million.
Invitae reported a net loss of $301.2 million, or $1.27 per share, compared to $198.2 million, or $.91 per share in the same period last year. On a non-GAAP basis, the firm had a net loss per share of $.42 and beat the consensus Wall Street estimate of a loss of $.63 per share.
The firm held cash and cash equivalents of $217.0 million and marketable securities of $368.9 million at the end of Q3 2022.
For full-year 2022, Invitae reiterated its prior guidance of low double-digit revenue growth. It also revised its full-year cash burn guidance to between $585 million and $625 million from its previous guidance of $600 million to $650 million, driven in large part by consolidation of its office, lab, and geographic footprint.
Knight also attributed the cash burn reduction to a trimming of the company's unproductive business units.
"Our portfolio optimization work has begun," he said, "and we've taken steps to consolidate our offerings including exiting our pre-implantation product for IVF and exiting other underperforming products and accounts."