Invitae(NVTA) - 2023 Q4 - Annual Results

Estimated Unaudited Financial Results Announcement & Disclaimer Announcement Overview Invitae announced its estimated unaudited financial results for the fourth quarter and full year ended December 31, 2023, covering key metrics such as revenue, gross profit, and cash burn - Invitae announced estimated unaudited financial results for Q4 and full year 2023, covering revenue, gross profit, and cash burn[1][2][3] Disclaimer on Unaudited Nature The company explicitly states that the presented financial results are estimated and unaudited, subject to adjustment, and have not been reviewed or audited by their independent registered public accounting firm - The reported financial results are estimated and unaudited, subject to adjustment, and have not been reviewed or audited by the independent registered public accounting firm[4] - Undue reliance should not be placed on these estimates, as potential adjustments during the finalization of financial statements could be material[6] Financial Performance Highlights Fourth Quarter 2023 Financial Highlights In Q4 2023, Invitae reported revenue of $127.8 million, an increase of approximately 4% year-over-year, or 14% on a pro forma basis excluding discontinued businesses Fourth Quarter 2023 Key Financial Metrics (Unaudited) | Metric | Q4 2023 (Millions USD) | Q4 2022 (Millions USD) | YoY Change | Pro Forma YoY Change (Excl. Discontinued) | | :--------------------- | :--------------------- | :--------------------- | :--------- | :---------------------------------------- | | Revenue | $127.8 | $122.5 | +4% | +14% | | GAAP Gross Profit | $74.1 | $29.6 | +150% | N/A | | Non-GAAP Gross Profit | $74.4 | $58.5 | +27% | N/A | | GAAP Gross Margin | 58.0% | 24.2% | +33.8 pp | N/A | | Non-GAAP Gross Margin | 58.2% | 47.8% | +10.4 pp | N/A | | Reported Cash Burn | $53.6 | N/A | N/A | N/A | - Fourth quarter 2023 revenue increased approximately 4% from a year ago, and approximately 14% on a pro forma basis after adjusting for revenue of approximately $10.5 million in the prior year period related to discontinued businesses[5] - GAAP gross profit in Q4 2023 grew approximately 150% year-over-year, while non-GAAP gross profit grew approximately 27%[5] Fiscal Year 2023 Financial Highlights For fiscal year 2023, Invitae's revenue was $487.0 million, approximately 6% lower than the prior year due to exited businesses, but increased approximately 7% on a pro forma basis Fiscal Year 2023 Key Financial Metrics (Unaudited) | Metric | FY 2023 (Millions USD) | FY 2022 (Millions USD) | YoY Change | Pro Forma YoY Change (Excl. Discontinued) | | :---------------------------------------------------------------- | :--------------------- | :--------------------- | :--------- | :---------------------------------------- | | Revenue | $487.0 | $516.3 | -6% | +7% | | GAAP Gross Profit | $175.2 | $99.1 | +77% | N/A | | Non-GAAP Gross Profit | $254.2 | $219.7 | +16% | N/A | | GAAP Gross Margin | 36.0% | 19.2% | +16.8 pp | N/A | | Non-GAAP Gross Margin | 52.2% | 42.5% | +9.7 pp | N/A | | Reported Cash Burn | $365.0 | N/A | N/A | N/A | | Cash, Cash Equivalents, Restricted Cash and Marketable Securities (as of Dec 31) | $209.0 | $557.1 | -62.5% | N/A | - Fiscal year 2023 revenue was approximately 6% lower than fiscal year 2022, but increased approximately 7% on a pro forma basis after adjusting for revenue of approximately $62.1 million in the prior year period related to discontinued businesses[5] - GAAP gross profit for FY 2023 grew approximately 77% year-over-year, while non-GAAP gross profit grew approximately 16%[5] Company Information and Financial Disclosures About Invitae Invitae is a leading medical genetics company that provides timely genetic information to patients and providers using digital technology - Invitae is a leading medical genetics company trusted by millions of patients and their providers to deliver timely genetic information using digital technology[7] - The company aims to provide accurate and actionable answers to strengthen medical decision-making and bring comprehensive genetic information into mainstream medicine to improve healthcare for billions of people[7] Safe Harbor Statements This section clarifies that the press release contains forward-looking statements, including the estimated 2023 financial results, which are inherently subject to risks and uncertainties - The press release contains forward-looking statements, including the company's 2023 estimated unaudited financial results, which are subject to risks and uncertainties[9] - Actual results could differ materially due to factors such as the year-end close process, audit of financial statements, and risks related to a Chapter 11 reorganization plan[9] - Invitae Corporation disclaims any obligation to update these forward-looking statements[9] Non-GAAP Financial Measures Explanation Invitae provides non-GAAP financial measures to supplement its GAAP results, excluding certain items required by GAAP - Non-GAAP financial measures are provided to supplement GAAP results, excluding certain items, and are considered useful by management for evaluating ongoing operating results and trends[10] - These non-GAAP measures are not standardized by GAAP, may not be comparable to other companies, and should not be considered in isolation from, or as a substitute for, GAAP financial information[11] GAAP to Non-GAAP Gross Profit Reconciliation This section presents a detailed reconciliation table showing the adjustments made to convert GAAP gross profit to Non-GAAP gross profit for the three months and year ended December 31, 2023 and 2022 Reconciliation of GAAP to Non-GAAP Gross Profit (in thousands, unaudited) | Metric | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Revenue | $127,847 | $122,454 | $486,976 | $516,303 | | Cost of revenue | $53,713 | $92,844 | $311,815 | $417,256 | | Gross profit (GAAP) | $74,134 | $29,610 | $175,161 | $99,047 | | Amortization of acquired intangible assets | — | $26,950 | $77,122 | $100,568 | | Acquisition-related stock-based compensation | $26 | $156 | $172 | $581 | | Acquisition-related post-combination expense | — | — | — | $1,053 | | Restructuring-related retention bonuses | $105 | $82 | $250 | $252 | | Inventory and prepaid write-offs | $92 | $1,712 | $1,454 | $18,179 | | Non-GAAP gross profit | $74,357 | $58,510 | $254,159 | $219,680 | - The reconciliation details adjustments such as amortization of acquired intangible assets ($77.1 million in FY2023), acquisition-related stock-based compensation, and inventory and prepaid write-offs to derive non-GAAP gross profit[14] Cash Burn Reconciliation This section provides a detailed reconciliation of net decrease/increase in cash, cash equivalents, and restricted cash to cash burn for the three months and year ended December 31, 2023 Reconciliation of Net (Decrease) Increase in Cash to Cash Burn (in thousands, unaudited) | Metric | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | FY 2023 | | :-------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Net cash used in operating activities | $(34,398) | $(54,905) | $(66,895) | $(50,076) | $(206,274) | | Net cash provided by investing activities | $73,878 | $116,064 | $5,117 | $72,675 | $267,734 | | Net cash (used in) provided by financing activities | $(135,768) | $876 | $(3,381) | $(7,197) | $(145,470) | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(96,288) | $62,035 | $(65,159) | $15,402 | $(84,010) | | Adjustments: | | | | | | | Net changes in investments | $(75,202) | $(117,146) | $(7,048) | $(71,917) | $(271,313) | | Loss from public offerings of common stock, net | — | — | $55 | — | $55 | | Proceeds from issuance of Series B convertible senior secured notes, net | $(22,435) | $1,763 | $8,016 | $2,929 | $(9,727) | | Cash burn | $(193,925) | $(53,348) | $(64,136) | $(53,586) | $(364,995) | - Reported cash burn for fiscal year 2023 was $365.0 million, which included $143.1 million of debt repayment and prepayment fees, and $4.0 million from asset sales related to YouScript[5] - Excluding debt-related payments and YouScript asset sales, ongoing cash burn for FY2023 would have been $225.9 million[5] Investor and Public Relations Contacts Contacts Contact information for Invitae's Investor Relations and Public Relations departments is provided, including specific personnel and their respective email addresses for inquiries - Investor Relations contact: Hoki Luk at ir@invitae.com[12] - Public Relations contact: Amy Sands Hadsock at pr@invitae.com[12]