Good evening, everyone -
NVTA posted their earnings today after close, and it was a miss. Revenue was expected at $46.6 million but came in at 40.6 million. NVTA was trading down 15% in after hours. An interesting wrinkle in the miss was NVTA’s guidance for 2020, which was about 175 MILLION over expectations (approx 325 expected vs 500 guided). While that upward guidance is positive, it is my personal opinion that talk is cheap. I would much rather a situation of beating earnings and providing conservative guidance, which is what our SaaS companies usually do. I’m still not going to jump ship. I plan to hold NVTA through at least another earnings report to figure out if the story has changed, but I will definitely not be adding and might even trim some after a recovery from tomorrow’s dip.
Best,
BTL
Long-ish NVTA