Recent Accomplishments & Highlights
- Generated total revenues of
$62.3 million in the first quarter of 2018 compared to$49.4 million in the first quarter of 2017, an increase of 26%. - Processed 164,355 tests in the first quarter of 2018, compared to approximately 121,300 tests processed in the first quarter of 2017, an increase of approximately 36%.
- Processed approximately 114,700 Panorama tests in the first quarter of 2018, compared to approximately 88,800 Panorama tests processed in the first quarter of 2017, an increase of approximately 29%.
- Accessioned approximately 41,500 Horizon carrier screening (HCS) tests in the first quarter of 2018 compared to approximately 27,000 Horizon carrier screening tests accessioned in the first quarter of 2017, an increase of approximately 54%.
- Launched significant updates to the Horizon carrier screening workflow, designed to drive substantial improvements in cost of goods sold.
- Presented successful data in bladder and colon cancers at the
American Association for Cancer Research (AACR) meeting.
"We were very pleased to deliver strong volume growth once again in Q1, report excellent results at AACR, and launch our new workflow for Horizon carrier screening," said
First Quarter Ended
Total revenues were
In the three months ended
Gross profit for the three months ended March 31, 2018, was $21.7 million, representing a 35% gross margin, compared to $15.7 million, representing a 32% gross margin in the same period of the prior year.* The improvement in gross margin was primarily due to increased revenues recognized from our Panorama and HCS tests, and continued cost savings resulting from streamlined workflows under Version 3 of Panorama. Gross profit in the first quarter of 2017 was adversely impacted by an acceleration of equipment depreciation expense related to the launch of Version 3 of Panorama.
Total operating expenses, representing research and development expenses and selling, general and administrative expenses, for the first quarter of 2018 were
Loss from operations for the first quarter of 2018 was $30.5 million compared to $34.6 million for the same period of the prior year.
Net loss for the first quarter of 2018 was
At
2018 Financial Outlook
* Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross profit divided by GAAP total revenues.
**Our 2018 revenue guidance is based on the new revenue recognition guidance, ASC 606, which was effective for us in the first quarter of 2018.
*** Cash burn is calculated as the sum of GAAP net cash used by operating activities (estimated for 2018 to be between
About
Product offerings include Spectrum®, a preimplantation genetic test for embryo selection during in vitro fertilization (IVF); Anora® to understand the genetic causes of a pregnancy loss; Horizon™ to detect risk of inherited mutations such as cystic fibrosis and spinal muscular atrophy; Panorama®, a non-invasive pregnancy test (NIPT) to screen for common chromosomal anomalies in a fetus as early as nine weeks of gestation; Vistara to screen for single-gene disorders that represent total incidence greater than Down syndrome; Evercord™, a cord blood and tissue banking service offered at birth to expectant parents; and Signatera™ (RUO), a personalized cell-free DNA test that can identify minimal residual disease, treatment response, and cancer recurrence to aid researchers in oncology.
Each test described above except Signatera™ (RUO) has been developed and its performance characteristics determined by the CLIA-certified laboratory performing the test. These tests have not been cleared or approved by the
Conference Call Information
Event: |
Natera's First Quarter 2018 Results Conference Call |
Date: |
Tuesday, May 8, 2018 |
Time: |
1:30 p.m. PT (4:30 p.m. ET) |
Live Dial-In: |
(877) 823-0171, Domestic |
(617) 500-6932, International |
|
Conference ID: |
8659708 |
Webcast: |
investor.natera.com |
A webcast replay will be available at investor.natera.com.
Forward-Looking Statements
This release contains forward-looking statements, including quotations of management, statements under the heading "2018 Financial Outlook," and statements regarding
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 the financial guidance provided; we derive most of our revenues from Panorama, and if our efforts to further increase the use and adoption of Panorama or to develop and commercialize new products and services in the future do not succeed, our business will be harmed; we have incurred losses since our inception and we anticipate that we will continue to incur losses for the foreseeable future; uncertainty in the development and commercialization of our enhanced or new tests or services, for example if the results of our clinical studies do not support the use of our tests, could materially adversely affect our business, financial condition and results of operations; our quarterly results may fluctuate significantly; we may be unable to compete successfully with either existing or future products or services; our cloud-based distribution model may be difficult to implement, and we may not be able to commercialize this model if we do not comply with ongoing regulatory requirements; we may be subject to increased compliance risks as a result of our rapid growth, including our dependence on our direct sales force; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to find replacements or immediately transition to alternative suppliers; we may be unable to expand third-party payer coverage and reimbursement for Panorama and our other tests, or we may be required to refund reimbursements already received; and third-party payers may withdraw coverage or provide lower levels of reimbursements due to changing policies, billing complexities or other factors.
Additional risks and uncertainties that could affect
Contacts
Investor Relations
Media
Barbara
Natera, Inc. |
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
March 31, |
December 31, |
||||||
2018 |
2017 |
||||||
(Unaudited) |
(As Revised) (1) |
||||||
Assets |
|||||||
Current assets: |
|||||||
Cash and cash equivalents |
$ |
33,674 |
$ |
12,620 |
|||
Restricted cash, current portion |
5,674 |
59 |
|||||
Short-term investments |
80,023 |
106,247 |
|||||
Accounts receivable, net of allowance of $1,881 in 2018 and $2,000 in 2017 |
50,326 |
44,089 |
|||||
Inventory |
11,911 |
8,998 |
|||||
Prepaid expenses and other current assets |
5,915 |
8,612 |
|||||
Total current assets |
187,523 |
180,625 |
|||||
Property and equipment, net |
26,878 |
29,667 |
|||||
Restricted cash, long-term portion |
342 |
342 |
|||||
Other assets |
3,912 |
3,979 |
|||||
Total assets |
$ |
218,655 |
$ |
214,613 |
|||
Liabilities and Stockholders' Equity (Deficit) |
|||||||
Current liabilities: |
|||||||
Accounts payable |
$ |
8,608 |
$ |
8,529 |
|||
Accrued compensation |
9,933 |
9,599 |
|||||
Other accrued liabilities |
31,523 |
33,257 |
|||||
Deferred revenue, current portion |
1,443 |
1,420 |
|||||
Short-term debt financing |
50,125 |
50,112 |
|||||
Warrants |
2,751 |
2,644 |
|||||
Total current liabilities |
104,383 |
105,561 |
|||||
Long-term debt financing |
73,138 |
73,065 |
|||||
Deferred rent, net of current portion |
9,548 |
9,241 |
|||||
Deferred revenue, long-term |
35,462 |
— |
|||||
Other long-term liabilities |
— |
1,329 |
|||||
Total liabilities |
222,531 |
189,196 |
|||||
Stockholders' equity: |
|||||||
Common stock (2) |
6 |
6 |
|||||
Additional paid in capital |
476,270 |
472,552 |
|||||
Accumulated deficit |
(479,248) |
(446,375) |
|||||
Accumulated other comprehensive loss |
(904) |
(766) |
|||||
Total stockholders' (deficit) equity |
(3,876) |
25,417 |
|||||
Total liabilities and stockholders' equity (deficit) |
$ |
218,655 |
$ |
214,613 |
(1) |
Natera adopted Financial Accounting Standards Board Accounting Standards Update No. 2014-09 effective January 1, 2018 with full retrospective application to January 1, 2016. Results for periods prior to January 1, 2018 have been revised accordingly. |
(2) |
As of March 31, 2018, there were approximately 54,251,000 shares of common stock issued and outstanding. |
Natera, Inc. |
|||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
|||||||
(Unaudited) |
|||||||
(In thousands, except per share data) |
|||||||
Three months ended |
|||||||
March 31, |
|||||||
2018 |
2017 |
||||||
(As Revised) (1) |
|||||||
Revenues |
|||||||
Product revenues |
$ |
54,269 |
$ |
48,394 |
|||
Licensing and other revenues |
8,071 |
988 |
|||||
Total revenues |
62,340 |
49,382 |
|||||
Cost and expenses |
|||||||
Cost of product revenues |
39,055 |
33,088 |
|||||
Cost of licensing and other revenues |
1,537 |
612 |
|||||
Research and development |
14,340 |
12,650 |
|||||
Selling, general and administrative |
37,925 |
37,582 |
|||||
Total cost and expenses |
92,857 |
83,932 |
|||||
Loss from operations |
(30,517) |
(34,550) |
|||||
Interest expense |
(2,389) |
(183) |
|||||
Interest and other income |
137 |
1,300 |
|||||
Loss before income taxes |
(32,769) |
(33,433) |
|||||
Income tax expense |
(104) |
(47) |
|||||
Net loss |
$ |
(32,873) |
$ |
(33,480) |
|||
Unrealized (loss) gain on available-for-sale securities, net of tax |
(138) |
200 |
|||||
Comprehensive loss |
$ |
(33,011) |
$ |
(33,280) |
|||
Net loss per share: |
|||||||
Basic |
$ |
(0.61) |
$ |
(0.63) |
|||
Diluted |
$ |
(0.61) |
$ |
(0.65) |
|||
Weighted-average number of shares used in computing basic and diluted net loss per share: |
|||||||
Basic |
54,132 |
52,758 |
|||||
Diluted |
54,132 |
53,043 |
(1) |
Natera adopted Financial Accounting Standards Board Accounting Standards Update No. 2014-09 effective January 1, 2018 with full retrospective application to January 1, 2016. Results for periods prior to January 1, 2018 have been revised accordingly. |
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