Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37478 NATERA, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 01-0894487 (State or Other ...

Natera, Inc. (NASDAQ:NTRA) Q1 2023 Earnings Conference Call May 9, 2023 4:30 PM ET Company Participants Steven Chapman - Chief Executive Officer Michael Brophy - Chief Financial Officer Alexey Aleshin - Chief Medical Officer John Fesko - Chief Business Officer Conference Call Participants Tejas Savant - Morgan Stanley Puneet Souda - SVB Securities Thomas Peterson - Baird Daniel Brennan - TD Cowen Alexander Nowak - Craig-Hallum Operator Hello. Welcome to Natera's 2023 First Quarter Financial Results Conferen ...

[Part I — Financial Information](index=7&type=section&id=Part%20I%20%E2%80%94%20Financial%20Information) [Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20%28unaudited%29) This section provides Natera, Inc.'s unaudited condensed consolidated financial statements and related notes for the first quarter of 2023 and 2022 [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $403,154 | $466,091 | | Total current assets | $1,129,468 | $1,211,817 | | Total assets | $1,318,880 | $1,394,474 | | Total current liabilities | $290,969 | $310,499 | | Total liabilities | $668,307 | $688,730 | | Total stockholders' equity | $650,573 | $705,744 | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Statement of Operations Highlights (in thousands, except per share data) | Metric | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Total revenues | $241,756 | $194,133 | | Cost of product revenues | $147,754 | $102,670 | | Loss from operations | ($138,301) | ($137,130) | | Net loss | ($136,937) | ($138,595) | | Net loss per share (Basic and diluted) | ($1.23) | ($1.45) | [Condensed Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders%27%20Equity) - Total stockholders' equity decreased from **$705.7 million** at December 31, 2022, to **$650.6 million** at March 31, 2023. The decrease was primarily driven by a net loss of **$136.9 million**, partially offset by stock-based compensation of **$40.7 million** and proceeds from stock issuances[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Highlights (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2023 | Three Months Ended Mar 31, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($80,890) | ($137,277) | | Net cash provided by investing activities | $15,652 | $207,033 | | Net cash provided by financing activities | $2,301 | $4,156 | | Net change in cash | ($62,937) | $73,912 | [Notes to Unaudited Interim Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Interim%20Condensed%20Consolidated%20Financial%20Statements) - The company operates as a **single segment** focused on developing and commercializing **molecular testing services** in women's health, oncology, and organ health. Key products include **Panorama**, **Horizon**, **Signatera**, and **Prospera**[26](index=26&type=chunk)[27](index=27&type=chunk) - The company has a history of **net losses**, with a net loss of **$136.9 million** for Q1 2023 and an accumulated deficit of **$2.1 billion**. However, management believes existing cash and marketable securities are **sufficient to meet cash requirements for at least 12 months** from May 9, 2023[31](index=31&type=chunk)[37](index=37&type=chunk) Revenue Disaggregation by Payer (in thousands) | Payer Type | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Insurance carriers | $210,378 | $164,742 | | Laboratory and other partners | $22,805 | $20,737 | | Patients | $8,573 | $8,654 | | **Total revenues** | **$241,756** | **$194,133** | - In a false advertising lawsuit with CareDx, a jury returned a verdict against Natera with damages of **$44.9 million** in March 2022. Natera has filed a motion to set aside the verdict and does not consider a loss related to this matter to be probable and estimable at this time[127](index=127&type=chunk) - As of March 31, 2023, the company had **$80.4 million** outstanding on its revolving Credit Line and **$287.5 million** in principal amount of 2.25% Convertible Senior Notes due 2027[156](index=156&type=chunk)[158](index=158&type=chunk)[164](index=164&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and operational results for Q1 2023, highlighting revenue growth driven by increased test volumes and its liquidity position - The company processed approximately **626,200 tests** in Q1 2023, a significant increase from **489,300 tests** in Q1 2022. This volume growth, particularly in **Panorama** and **HCS tests**, is the primary driver of revenue increases[179](index=179&type=chunk) Results of Operations Comparison (in thousands) | Line Item | Q1 2023 | Q1 2022 | Change % | | :--- | :--- | :--- | :--- | | Total revenues | $241,756 | $194,133 | 24.5% | | Cost of product revenues | $147,754 | $102,670 | 43.9% | | Research and development | $82,306 | $80,414 | 2.4% | | Selling, general and administrative | $149,627 | $147,634 | 1.3% | | Loss from operations | ($138,301) | ($137,130) | 0.9% | - Cost of product revenues increased by **$45.1 million** (**43.9%**) YoY, primarily due to a **$16.9 million** increase in third-party fees, an **$11.1 million** increase in inventory consumption from higher test volumes, and a **$12.7 million** increase in labor and overhead costs[203](index=203&type=chunk) - The company believes its existing cash and marketable securities of approximately **$812.1 million** (as of March 31, 2023) are **sufficient to meet its anticipated cash requirements for at least 12 months** from May 9, 2023[209](index=209&type=chunk)[212](index=212&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk exposure is to interest rate changes, which affect its variable-rate Credit Line and its investment portfolio. Foreign currency and inflation risks are also monitored but are considered to have had a minimal impact to date - The company is exposed to interest rate risk on its variable-rate debt and investment portfolio. A hypothetical **100 basis point (1%)** increase in borrowing rates would increase annual interest expense by **$0.8 million**, while a **100 basis point** increase in investment yields would increase annual interest income by approximately **$4.1 million**[231](index=231&type=chunk) - Foreign currency risk is currently minimal as operations are primarily conducted in the United States. Inflation is not believed to have had a material effect on the business as of the report filing date[232](index=232&type=chunk)[233](index=233&type=chunk) [Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective at a reasonable assurance level as of March 31, 2023. The report also confirms that there were no material changes in the company's internal control over financial reporting during the quarter - As of March 31, 2023, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **effective at the reasonable assurance level**[237](index=237&type=chunk) - There were **no changes in internal control over financial reporting** during the quarter ended March 31, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[238](index=238&type=chunk) [Part II — Other Information](index=65&type=section&id=Part%20II%20%E2%80%94%20Other%20Information) [Legal Proceedings](index=65&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 8 in the Notes to Unaudited Interim Condensed Consolidated Financial Statements for detailed information regarding the company's current legal proceedings - For detailed information on legal proceedings, the report refers to "Note 8—Commitments and Contingencies—Legal Proceedings" in the financial statements[242](index=242&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) The company states there have been no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2022. Investors are directed to that filing for a comprehensive discussion of risks - The report refers to the risk factors discussed in Part I, Item 1A of the company's Annual Report on Form 10-K for the year ended December 31, 2022, indicating **no material changes**[243](index=243&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the quarter ended March 31, 2023 - There were **no recent sales of unregistered securities** during the period[244](index=244&type=chunk) [Defaults Upon Senior Securities](index=66&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - There were **no defaults upon senior securities**[245](index=245&type=chunk) [Mine Safety Disclosures](index=66&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business - This section is **not applicable**[246](index=246&type=chunk) [Other Information](index=66&type=section&id=Item%205.%20Other%20Information) The company did not report any other information under this item for the period - There is **no information to report** for this item[247](index=247&type=chunk) [Exhibits](index=66&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed with the Form 10-Q, including an Amended Compensation Program for Non-Employee Directors, certifications by the CEO and CFO as required by the Sarbanes-Oxley Act, and XBRL data files - The report includes an index of exhibits, notably **CEO and CFO certifications** (Exhibits 31.1, 31.2, 32.1, 32.2) and **Inline XBRL documents**[249](index=249&type=chunk)[250](index=250&type=chunk) [Signatures](index=70&type=section&id=Signatures) - The report was duly signed on May 9, 2023, by **Steve Chapman**, Chief Executive Officer, and **Michael Brophy**, Chief Financial Officer[257](index=257&type=chunk)

× × Ⅹ Ｘ Ｘ Ｘ Ｘ Ｘ × × × Ⅹ Ｘ Ｘ Ｘ Ｘ Ｘ × × × × × × × x × × × × × × × × × × × × × × × × × × × × 8 natera® × × x × × × Ｘ Ｘ × × × × Ｘ Ｘ × × Ｘ Ｘ × × × × × × × × Fourth Quarter 2022 Earnings Call February 28, 2023 2 × X X X X × × × × × Safe harbor statement 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 unabl ...

Natera, Inc. (NASDAQ:NTRA) Q4 2022 Results Conference Call February 28, 2022 4:30 PM ET Company Participants Steven Chapman - Chief Executive Officer Michael Brophy - Chief Financial Officer Solomon Moshkevich - GM, Oncology John Fesko - Chief Business Officer Conference Call Participants Andrew Cooper - Raymond James Catherine Schulte - Baird Mark Massaro - BTIG Max Masucci - Cowen & Company Puneet Souda - SVB Securities Julia Qin - JP Morgan Tejas Savant - Morgan Stanley Operator Welcome to Natera's 2022 ...

PART I [Business](index=6&type=section&id=Item%201.%20Business) Natera is a diagnostics company specializing in cell-free DNA technology, primarily focusing on women's health, oncology, and organ health, generating revenue from its core diagnostic tests Financial and Operational Highlights (2020-2022) | Metric | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $820.2 million | $625.5 million | $391.0 million | | **Product Revenues** | $797.3 million | $580.1 million | $377.9 million | | **Net Losses** | ($547.8 million) | ($471.7 million) | ($229.7 million) | | **Tests Processed** | ~2.1 million | ~1.6 million | ~1.0 million | - Natera's core cfDNA technology combines novel molecular assays with statistical algorithms to identify genetic variations with **high accuracy** from small samples, applicable across women's health, oncology, and organ health[25](index=25&type=chunk)[29](index=29&type=chunk) - The company operates **CLIA-certified laboratories** in Austin, Texas, and San Carlos, California[28](index=28&type=chunk) [Overview](index=6&type=section&id=Item%201.%20Business-Overview) Natera is a diagnostics company leveraging cfDNA technology across women's health, oncology, and organ health, with 2022 revenues of $820.2 million and approximately 2.1 million tests processed [Our Solution](index=6&type=section&id=Item%201.%20Business-Our%20Solution) Natera's solution uses proprietary mmPCR and computational algorithms to detect genomic variations with high sensitivity and specificity across various diagnostic applications, distributed globally via Constellation - The company's technology combines mmPCR to measure thousands of SNPs with advanced algorithms to analyze the data, achieving **high signal-to-noise ratio** for detecting DNA fragments at very low frequencies[32](index=32&type=chunk) - Natera's technology has demonstrated **high performance** across its three main business areas: women's health (Panorama), oncology (Signatera), and organ health (Prospera)[33](index=33&type=chunk) [Women's Health](index=7&type=section&id=Item%201.%20Business-Women's%20Health) Natera's Women's Health division offers family planning, prenatal screening, and hereditary cancer risk tests, with Panorama NIPT and Horizon carrier screening as flagship products generating most revenue - The Panorama NIPT screens for fetal chromosomal abnormalities like Down syndrome as early as nine weeks into pregnancy, using a unique SNP-based method that provides **high accuracy**[36](index=36&type=chunk)[38](index=38&type=chunk) - The SMART study demonstrated Panorama's high performance for 22q11.2 deletion syndrome, with **83% sensitivity** and a **53% positive predictive value (PPV)** using an updated AI algorithm[42](index=42&type=chunk) - The Horizon carrier screening test screens for **over 200 inherited conditions**, including Cystic Fibrosis and Spinal Muscular Atrophy, and can be performed from the same blood sample as Panorama[45](index=45&type=chunk)[46](index=46&type=chunk) [Oncology](index=10&type=section&id=Item%201.%20Business-Oncology) Natera's oncology division focuses on molecular residual disease (MRD) detection and recurrence monitoring in solid tumors, with Signatera as its personalized ctDNA test, targeting a U.S. market over $15 billion - Signatera is a personalized ctDNA test for MRD assessment that is custom-designed for each patient by tracking 16 tumor-specific clonal mutations, allowing for **high accuracy** at very low variant allele frequencies[54](index=54&type=chunk) - Clinical studies across multiple tumor types have shown that a positive Signatera test result predicted relapse with an overall positive predictive value (PPV) of **over 98%** without further treatment[58](index=58&type=chunk) - The total addressable market in the U.S. for recurrence and treatment monitoring for solid tumor cancers is estimated to be **over $15 billion**[53](index=53&type=chunk) [Organ Health](index=11&type=section&id=Item%201.%20Business-Organ%20Health) Natera's organ health division offers tests like Prospera for organ transplant rejection assessment, targeting an estimated U.S. market of approximately $3.0 billion, and Renasight for chronic kidney disease - The Prospera test assesses organ transplant rejection by measuring dd-cfDNA in the recipient's blood, offering a **non-invasive alternative** to biopsies for kidney, heart, and lung transplants[61](index=61&type=chunk)[62](index=62&type=chunk) Prospera Clinical Validation Performance | Organ | Metric | Performance | Source Chunk | | :--- | :--- | :--- | :--- | | Kidney | Sensitivity | 89% | 63 | | Kidney | Specificity | 73% | 63 | | Heart | AUC | 0.86 | 63 | | Lung | AUC (Rejection vs. Stable) | 0.91 | 63 | [Constellation](index=12&type=section&id=Item%201.%20Business-Constellation) Constellation is Natera's cloud-based platform enabling global partners to perform molecular workflows locally and access Natera's bioinformatics algorithms for analysis, expanding technology access - The Constellation platform enables **international and U.S. laboratories** to license Natera's technology, run molecular assays locally, and access Natera's bioinformatics algorithms through the cloud[67](index=67&type=chunk) [Commercial Capabilities](index=13&type=section&id=Item%201.%20Business-Commercial%20Capabilities) Natera's commercial strategy combines a direct U.S. sales force with a global partner network, focusing on physician education and test bundling to maximize sales and market penetration - In FY2022, approximately **75%** of customers ordering the basic Panorama panel also ordered screening for 22q11.2 deletion syndrome, and about **33%** also ordered Horizon carrier screening[72](index=72&type=chunk) [Competition](index=14&type=section&id=Item%201.%20Business-Competition) Natera operates in highly competitive molecular diagnostics markets, facing rivals like LabCorp, Illumina, Roche, Guardant Health, and CareDx across its women's health, oncology, and organ health segments - Key competitors in NIPT include **LabCorp, Illumina, Myriad, and Quest**[81](index=81&type=chunk) - Key competitors in MRD assessment include **Roche, Guardant Health, and Adaptive Biotechnologies**[82](index=82&type=chunk) - Key competitors in organ health include **CareDx and Eurofins Viracor**[83](index=83&type=chunk) [Intellectual Property](index=15&type=section&id=Item%201.%20Business-Intellectual%20Property) Natera protects its intellectual property through over 150 issued patents and 220 pending applications as of December 31, 2022, and is actively involved in IP litigation - As of December 31, 2022, Natera held **over 150 issued U.S. and foreign patents** and had **over 220 pending patent applications**[86](index=86&type=chunk) [Reimbursement](index=15&type=section&id=Item%201.%20Business-Reimbursement) Natera receives reimbursement from commercial and government payers, with NIPT widely covered, but microdeletions testing reimbursement remains low, covering over 231 million lives in the U.S. as of December 31, 2022 - As of December 31, 2022, Natera and its laboratory partners had in-network contracts with health plans covering **over 231 million lives** in the United States[95](index=95&type=chunk) - Reimbursement for NIPT in average-risk pregnancies has **improved**, with most commercial insurers and an increasing number of state Medicaid programs providing positive coverage[94](index=94&type=chunk) - The company has experienced **low average reimbursement rates** for microdeletions testing and for its broader Horizon panel due to the implementation of specific CPT codes[92](index=92&type=chunk) [Government Regulations](index=17&type=section&id=Item%201.%20Business-Government%20Regulations) Natera's business is subject to extensive federal, state, and international regulations, including FDA oversight of LDTs, CLIA certification, HIPAA, GDPR, and healthcare fraud and abuse laws - Natera's tests are currently offered as Laboratory Developed Tests (LDTs), which have historically been subject to FDA enforcement discretion, but the regulatory landscape remains **uncertain**[107](index=107&type=chunk)[108](index=108&type=chunk) - The company's laboratories in Austin, TX, and San Carlos, CA, are **CLIA certified** and **accredited by the College of American Pathologists (CAP)**. They also hold licenses in states with stringent requirements, such as California and New York[114](index=114&type=chunk)[115](index=115&type=chunk)[117](index=117&type=chunk)[119](index=119&type=chunk) - The company is subject to healthcare fraud and abuse laws, including the federal Anti-Kickback Statute, the Stark Law, and the False Claims Act, which carry **significant civil and criminal penalties** for violations[134](index=134&type=chunk)[145](index=145&type=chunk)[148](index=148&type=chunk) [Human Capital Management](index=26&type=section&id=Item%201.%20Business-Human%20Capital%20Management) As of December 31, 2022, Natera had a global workforce of 3,018 employees, a 10.7% increase, emphasizing diversity with 62.7% women and over 40% minorities in the U.S. workforce - As of December 31, 2022, the global workforce comprised **3,018 employees**, representing a **10.7% increase** during 2022[157](index=157&type=chunk) - In 2022, women made up approximately **62.7%** of the global workforce, and minorities comprised **over 40%** of the U.S. workforce[158](index=158&type=chunk) [Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including revenue concentration, reimbursement uncertainty, a history of net losses, intense competition, potential FDA regulation, supply chain dependence, and intellectual property litigation - A **majority of the company's revenues** are derived from sales of its Panorama NIPT and Horizon carrier screening tests, and the business would be harmed if it cannot grow revenues for these products[199](index=199&type=chunk) - The company has incurred net losses since inception, with a net loss of **$547.8 million** in 2022 and an accumulated deficit of **$1.9 billion** as of December 31, 2022[205](index=205&type=chunk) - The company faces **intense competition** from established and emerging companies in women's health, oncology, and organ health, some of which have greater financial and technological resources[218](index=218&type=chunk)[219](index=219&type=chunk) - Natera relies on Illumina as the **sole supplier** for its sequencing platform and related reagents for key tests like Panorama, Horizon, and Signatera, creating significant supply chain risk[232](index=232&type=chunk)[233](index=233&type=chunk) [Unresolved Staff Comments](index=66&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) None [Properties](index=66&type=section&id=Item%202.%20Properties) Natera leases its primary laboratory and office facilities, including approximately 136,000 square feet in San Carlos, CA, and 191,722 square feet in Austin, TX, with leases extending to 2027 and 2033 respectively Key Leased Facilities | Location | Size (sq. ft.) | Lease Expiration | | :--- | :--- | :--- | | San Carlos, CA | ~136,000 | October 2027 | | Austin, TX | ~191,722 | March 2033 | | South San Francisco, CA | 11,395 | November 2026 | [Legal Proceedings](index=67&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings, including intellectual property, billing, marketing, and employment matters, with details referenced from the Consolidated Financial Statements - The company is involved in legal proceedings from time to time, the results of which are **uncertain** and could have an **adverse impact** due to defense costs and potential settlements[395](index=395&type=chunk) [Mine Safety Disclosures](index=67&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=68&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Natera's common stock (NTRA) trades on Nasdaq, with no cash dividends paid or anticipated, as the company intends to retain earnings for business growth - The company's common stock is listed on the **Nasdaq Global Select Market** under the symbol **"NTRA"**[400](index=400&type=chunk) - **No cash dividends** have ever been paid, and the company intends to retain all future earnings for business operations and expansion[402](index=402&type=chunk) [Selected Financial Data](index=70&type=section&id=Item%206.%20Selected%20Financial%20Data) Information required by this item is omitted as per SEC amendments to Regulation S-K effective February 10, 2021 [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=71&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Natera's 2022 revenues grew 31.1% to $820.2 million, driven by product revenue, though net loss widened to $547.8 million due to increased costs, with management affirming sufficient liquidity for at least 12 months Results of Operations (2021 vs. 2022) | Metric (in millions) | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $820.2 | $625.5 | 31.1% | | Product Revenues | $797.3 | $580.1 | 37.4% | | Licensing & Other Revenues | $22.9 | $45.4 | (49.5)% | | **Total Cost & Expenses** | $1,361.3 | $1,093.7 | 24.5% | | Cost of Product Revenues | $453.6 | $315.2 | 43.9% | | R&D | $316.4 | $264.2 | 19.8% | | SG&A | $588.6 | $511.0 | 15.2% | | **Net Loss** | ($547.8) | ($471.7) | 16.1% | - The increase in product revenues was driven by higher test volumes, which grew from approximately **1.57 million tests** processed in 2021 to **2.07 million** in 2022[419](index=419&type=chunk)[461](index=461&type=chunk) - The decrease in licensing revenue was primarily due to the recognition of **$28.6 million** in deferred revenue from a settlement with Qiagen in 2021 that did not recur in 2022[462](index=462&type=chunk) - As of December 31, 2022, the company had **$466.1 million** in cash and cash equivalents and **$432.3 million** in marketable securities. Management believes this is sufficient to meet cash requirements for **at least 12 months** from March 1, 2023[470](index=470&type=chunk)[473](index=473&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=82&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Natera is primarily exposed to interest rate risk, where a 100 basis point increase could raise annual interest expense by $0.8 million and increase investment income by $4.3 million - The company's primary market risk is **interest rate volatility** affecting its variable-rate Credit Line and its investment portfolio[494](index=494&type=chunk) [Financial Statements and Supplementary Data](index=83&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains Natera's audited consolidated financial statements for the fiscal years ended December 31, 2022, 2021, and 2020, including balance sheets, statements of operations, stockholders' equity, and cash flows, along with detailed notes and an unqualified auditor's opinion from Ernst & Young LLP Consolidated Balance Sheet Summary (As of Dec 31, 2022) | Account (in thousands) | Amount | | :--- | :--- | | **Total Assets** | **$1,394,474** | | Cash, Cash Equivalents & Short-term Investments | $898,306 | | Accounts Receivable, net | $244,385 | | **Total Liabilities** | **$688,730** | | Debt Financing (Short & Long-term) | $362,003 | | **Total Stockholders' Equity** | **$705,744** | Consolidated Statement of Operations Summary (Year Ended Dec 31, 2022) | Account (in thousands) | Amount | | :--- | :--- | | **Total Revenues** | **$820,222** | | Total Cost and Expenses | $1,361,262 | | Loss from Operations | ($541,040) | | **Net Loss** | **($547,799)** | | Net Loss Per Share (Basic & Diluted) | ($5.57) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=125&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) None [Controls and Procedures](index=125&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, a conclusion affirmed by Ernst & Young LLP, following ERP system modifications - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[738](index=738&type=chunk) - Management concluded that the company maintained **effective** internal control over financial reporting as of December 31, 2022, a conclusion audited and affirmed by Ernst & Young LLP[740](index=740&type=chunk)[741](index=741&type=chunk) [Other Information](index=128&type=section&id=Item%209B.%20Other%20Information) Chief Operating Officer Robert Schueren transitioned to a part-time role effective February 24, 2023, and is no longer considered a Section 16 officer of the company - Effective February 24, 2023, Chief Operating Officer Robert Schueren transitioned to a **part-time role** and is **no longer a Section 16 officer**[755](index=755&type=chunk)[756](index=756&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=128&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) None PART III [Directors, Executive Officers and Corporate Governance](index=128&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) The information required by this item is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders [Executive Compensation](index=128&type=section&id=Item%2011.%20Executive%20Compensation) The information required by this item is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=128&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The information required by this item is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders [Certain Relationships and Related Transactions, and Director Independence](index=128&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) The information required by this item is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders [Principal Accounting Fees and Services](index=128&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) The information required by this item is incorporated by reference from the company's definitive proxy statement for its 2023 annual meeting of stockholders PART IV [Exhibits and Financial Statement Schedules](index=129&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed as part of the Annual Report on Form 10-K, including corporate governance documents, material contracts, and Sarbanes-Oxley Act certifications [Form 10-K Summary](index=133&type=section&id=Item%2016.%20Form%2010-K%20Summary) None

Natera, Inc. (NASDAQ:NTRA) Q3 2022 Earnings Conference Call November 8, 2022 4:30 PM ET Company Participants Michael Brophy - Chief Financial Officer Steve Chapman - Chief Executive Officer Solomon Moshkevich - General Manager, Oncology Conference Call Participants Puneet Souda - SVB Securities Tejas Savant - Morgan Stanley Max Masucci - Cowen Julia Qin - JPMorgan Catherine Schulte - Baird Operator Welcome to Natera's 2022 Third Quarter Financial Results Conference Call. At this time, all participants are i ...

× × × × × × × × x 8 natera × × × Ⅹ Ｘ Ｘ Ｘ Ｘ Ｘ × × × × × × Ｘ Ｘ × × × Ⅹ Ｘ Ｘ Ｘ Ｘ Ｘ × × × × Ｘ Ｘ x × x × × × Ｘ Ｘ × × × × × × × x × × × × × × × × × × × × × × × × × Natera, Inc. Investor presentation × × × × × × × × × Third Quarter 2022 Earnings Call November 8, 2022 × × × × × X X × × × × × Safe harbor statement × × × × X X × × This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts cont ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR (650) 249-9090 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commi ...

Natera, Inc. (NASDAQ:NTRA) Q2 2022 Results Conference Call August 4, 2022 4:30 PM ET Company Participants Michael Brophy - Chief Financial Officer Steve Chapman - Chief Executive Officer Solomon Moshkevich - General Manager, Oncology Conference Call Participants Tejas Savant - Morgan Stanley Dave Delahunt - Goldman Sachs Catherine Schulte - Baird Max Masucci - Cowen Puneet Souda - Leerink Julia Qin - JPMorgan Vidyun Bais - BTIG Connor Stevenson - Craig-Hallum Mason Carrico - Stephens Operator Welcome to Nat ...