NVTA: Solid 2Q Earning Report

Mr. Market is please with NVTA’s Q2 earnings report, sending shares up over 16% in AH. While I did not have an opportunity to listen to the conference call, it seems that the company continues to make terrific progress in key areas of its business strategy. Here are a few top line results from the press release:

Second Quarter 2019 Financial Results

*Accessioned more than 111,000 samples in the second quarter of 2019, representing a 52% increase over the more than 73,000 samples in the second quarter of 2018. Billable volume was nearly 111,000 in the second quarter of 2019
*Generated revenue of $53.5 million in the second quarter of 2019, representing a 43% increase over the second quarter of 2018 revenue of $37.3 million
*Reported the average cost per sample at $252 in the second quarter of 2019, representing a 10% reduction from a $279 average cost per sample in the second quarter of 2018
*Achieved gross profit of $25.5 million in the second quarter of 2019 compared to $16.9 million in gross profit in the second quarter of 2018.

The CEO is confident that Invitae will meet its 2019 guidance:

“We have now delivered our 25th quarter of impressive growth in both revenue and volume, while continuing to invest in new technologies that further our position as a leader in the rapidly evolving genetics industry,” said Sean George, co-founder and chief executive officer of Invitae. “We are beginning to stand out to our customers as the company that offers the most comprehensive menu of high-quality, affordable genetic testing to everyone who can benefit, enabling us to bring genetics more broadly into mainstream medicine. With the success we’ve had in the first half of the year, we are confident in our ability to achieve our 2019 guidance.”


Once I can get my hands on the CC transcript, I’ll read it over and report back anything else of interest.

Best, Swift…


I didn’t like this report from NVTA and am surprised the stock is up.

*52% increase in samples run, rev. up 43%, pricing pressure
*43% revenue increase was down from 47% last quarter
*Cost per sample of $252 was down 10% from last year, but up from last quarter
*no improvement on cash burn at around $30 M for the quarter

With guidance of about 50% Rev. growth for the year, I expected rev. growth to accelerate, but it appears they have pricing pressure. At 47% and 43% the first 2 quarters, they have to accelerate the last half of the year, not sure they can do that organically.

I just don’t see a path to profitability anytime soon with the COGS and cash burn going up over last quarter. With $240 M cash and burning $30 M/quarter, they will have to raise cash soon.

As they move into to new markets, this could change.

I sold my shares today and would be interested again if I see improvement in rev. growth and cash burn.



Hey Jim,

Just a quick clarification. NVTA stated during their Q1 Earnings Call 3 months ago that they are actually aiming to INCREASE cash burn as they are opening up a Direct-to-consumer channel this year and looking to scale up other business areas as well. This is why they had a cash raise about 4 (?) months ago.

I think the report looked good. Cost per sample increased because of the D2C launch mentioned above and will be uneven for the rest of the year (its going to be a while before D2C can scale). This stock is definitely more of a medium to long-term play on providing every kind of genetic testing to the masses. I sold a few shares after hours bc there was a bit of unjustified exuberance, but keeping the large majority because management looks on track to deliver what they said they would.