On November 8, 2023, Invitae Corp (NVTA, Financial), a leading medical genetics company, released its financial results for the third quarter ended September 30, 2023. Despite a reported revenue decline of 9% year-over-year to $121.2 million, the company's pro forma basis, which accounts for exited businesses and geographies, showed an approximate 4% increase. This mixed financial performance comes amid a backdrop of operational adjustments and strategic realignments.
Financial Highlights and Challenges
Invitae Corp (NVTA, Financial) faced a challenging quarter with a significant decrease in revenue compared to the same period last year. However, the company's gross profit saw a substantial increase, rising 135.6% year-over-year to $39.1 million. The non-GAAP gross profit also grew by 3.8% to $63.6 million. This improvement in profitability is a silver lining for Invitae, reflecting its ongoing efforts to enhance operational efficiency.
Operational Expenses and Net Loss
The company's operating expenses for Q3 2023 ballooned to $1.0 billion, largely due to a staggering $877.3 million in restructuring, impairment, and other costs. This figure includes a significant impairment charge related to the company's long-lived assets. Despite this, Invitae managed to reduce its non-GAAP operating expenses to $122.1 million, down from $150.0 million in the same quarter of the previous year.
Invitae's net loss per basic and diluted share stood at ($3.42), including the aforementioned impairment and restructuring costs. On a non-GAAP basis, the net loss per share was ($0.10), an improvement from ($0.42) in the prior year's quarter.
Liquidity and Capital Structure
As of September 30, 2023, Invitae had $264.7 million in cash, cash equivalents, restricted cash, and marketable securities, a decrease from $557.1 million at the end of 2022. The net decrease in these assets for the quarter was $72.2 million, with a cash burn of $64.1 million.
In response to its financial position, Invitae is actively engaging with stakeholders to strengthen its balance sheet. The Board of Directors has formed a special committee to improve the company's capital structure, exploring options such as raising capital, asset sales, and addressing debt obligations.
Outlook for Fiscal 2023
Invitae is maintaining its financial guidance for the full year 2023, with expected revenue in the range of $480-$500 million and non-GAAP gross margin between 48-50%. The company anticipates an ongoing cash burn of $220-$245 million for the year, excluding certain items.
The company's leadership expressed confidence in meeting or exceeding its annual guidance, citing operational execution and financial metric improvements. President and CEO Ken Knight highlighted the addition of key executive talent and achievement of clinical milestones as factors that will strengthen Invitae's business and market position.
For more detailed information on Invitae's financial results, including the full financial tables and reconciliation of GAAP to non-GAAP measures, investors and interested parties are encouraged to visit the investors section of the company's website at ir.invitae.com.
Invitae Corp (NVTA, Financial) remains committed to its mission of integrating comprehensive genetic information into mainstream medicine to improve healthcare for billions of people. The company's focus on operational improvements and strategic initiatives is aimed at navigating the current financial challenges and positioning itself for future growth.
Explore the complete 8-K earnings release (here) from Invitae Corp for further details.
