Recent Accomplishments & Highlights
- Total revenue generated was
$67.0 million in Q4 2018 and$257.7 million for the full year 2018, which represents 23% growth over the full year 2017 - Processed approximately 174,200 tests in Q4 2018 and 668,600 tests for the full year 2018, which represents 30% growth for the full year over 2017
- Processed approximately 119,700 Panorama tests in Q4 2018 and 462,700 Panorama tests for the full year 2018
- Accessioned approximately 46,100 Horizon carrier screening (HCS) tests in Q4 2018 and 173,800 Horizon tests for the full year 2018
- Signed
$50 million agreement withBGI Genomics Co., Ltd. to commercialize NGS-based genetic assays for clinical use inChina and select markets - Announced collaboration with
Thermo Fisher Scientific's One Lambda for transplant market - Announced publication of kidney transplant analytical and clinical validation studies, demonstrating both superior precision and superior data in detection of clinical and subclinical rejection
- Announced cumulative contracted value of
$9.1 million at the end of 2018 for Signatera (RUO) with leading pharmaceutical companies, and expects to achieve$40 million to $50 million in cumulative contracted value by the end of 2019
"2018 was a very successful year for
Fourth Quarter and Year Ended
Effective
Total revenues were
Total revenues for 2018 were
In the fourth quarter of 2018,
In 2018,
Gross profit for the fourth quarter of 2018 was $24.2 million, representing a 36.1% gross margin, compared to $15.3 million, representing a 29.4% gross margin in the same period in 2017.* The improvement in gross margin was primarily due to increased revenues recognized from our Panorama and HCS tests, continued cost savings resulting from streamlined workflows under Version 3 of Panorama, and updated HCS automation workflow in the second quarter of 2018. Gross margin for 2018 was
Total operating expenses, representing research and development expenses, and selling, general and administrative expenses, for the fourth quarter of 2018 were
Loss from operations for the fourth quarter of 2018 was $29.7 million compared to $46.6 million for the same period of the prior year. Loss from operations for 2018 was
Net loss for the fourth quarter of 2018 was
At
2019 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.
** Cash burn is calculated as the sum of GAAP net cash used by operating activities (estimated for 2019 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™, 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™ has been developed and its performance characteristics determined by the CLIA-certified laboratory performing the test. Panorama® and Constellation™ are CE-marked for sale in the
Conference Call Information
Event: |
Natera's Fourth Quarter and Year-End 2018 Financial Results Conference Call |
Date: |
Tuesday, March 12, 2019 |
Time: |
4:30 p.m. ET (1:30 p.m. PT) |
Live Dial-In: |
(877) 823-0171, Domestic |
(617) 500-6932, International |
|
Conference ID: |
7292809 |
Webcast: |
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 "2019 Financial Outlook," statements regarding our agreement with
These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: risks, including obtaining regulatory approvals, related to closing our agreement with
Additional risks and uncertainties that could affect
Contacts
Investor Relations:
Media Relations:
Natera, Inc. |
|||||
Condensed Consolidated Balance Sheets |
|||||
(Unaudited) |
|||||
(In thousands) |
|||||
December 31, |
December 31, |
||||
2018 |
2017 |
||||
(As Revised) (1) |
|||||
Assets |
|||||
Current assets: |
|||||
Cash and cash equivalents |
$ |
46,407 |
$ |
12,620 |
|
Restricted cash, current portion |
4,597 |
59 |
|||
Short-term investments |
107,461 |
106,247 |
|||
Accounts receivable, net of allowance of $1,788 in 2018 and $2,000 in 2017 |
62,223 |
44,089 |
|||
Inventory |
13,633 |
8,998 |
|||
Prepaid expenses and other current assets |
6,197 |
8,612 |
|||
Total current assets |
240,518 |
180,625 |
|||
Property and equipment, net |
24,336 |
29,667 |
|||
Restricted cash, long-term portion |
— |
342 |
|||
Other assets |
3,317 |
3,979 |
|||
Total assets |
$ |
268,171 |
$ |
214,613 |
|
Liabilities and Stockholders' Equity |
|||||
Current liabilities: |
|||||
Accounts payable |
$ |
14,587 |
$ |
8,529 |
|
Accrued compensation |
12,668 |
9,599 |
|||
Other accrued liabilities |
32,442 |
33,257 |
|||
Deferred revenue, current portion |
4,131 |
1,420 |
|||
Short-term debt financing |
50,153 |
50,112 |
|||
Warrants |
— |
2,644 |
|||
Total current liabilities |
113,981 |
105,561 |
|||
Long-term debt financing |
73,357 |
73,065 |
|||
Deferred rent, net of current portion |
8,613 |
9,241 |
|||
Deferred revenue, long-term portion |
40,058 |
— |
|||
Other long-term liabilities |
— |
1,329 |
|||
Total liabilities |
236,009 |
189,196 |
|||
Stockholders' equity: |
|||||
Common stock (2) |
7 |
6 |
|||
Additional paid in capital |
607,236 |
472,552 |
|||
Accumulated deficit |
(574,529) |
(446,375) |
|||
Accumulated other comprehensive loss |
(552) |
(766) |
|||
Total stockholders' equity |
32,162 |
25,417 |
|||
Total liabilities and stockholders' equity |
$ |
268,171 |
$ |
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 December 31, 2018, there were 62,083 thousand shares of common stock issued and outstanding. |
Natera, Inc. |
||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss |
||||||||
(Unaudited) |
||||||||
Year ended December 31, |
||||||||
2018 |
2017 |
2016 |
||||||
(As Revised) (1) |
(As Revised) (1) |
|||||||
Revenues |
||||||||
Product revenues |
$ |
240,366 |
$ |
203,777 |
$ |
209,406 |
||
Licensing and other revenues |
17,288 |
5,848 |
3,106 |
|||||
Total revenues |
257,654 |
209,625 |
212,512 |
|||||
Cost and expenses |
||||||||
Cost of product revenues |
158,081 |
135,508 |
134,494 |
|||||
Cost of licensing and other revenues |
7,974 |
4,088 |
1,080 |
|||||
Research and development |
51,355 |
50,064 |
41,862 |
|||||
Selling, general and administrative |
154,872 |
155,306 |
136,126 |
|||||
Total cost and expenses |
372,282 |
344,966 |
313,562 |
|||||
Loss income from operations |
(114,628) |
(135,341) |
(101,050) |
|||||
Interest expense |
(10,476) |
(4,213) |
(533) |
|||||
Interest and other (expense) income, net |
(2,729) |
2,380 |
1,398 |
|||||
Loss before income taxes |
(127,833) |
(137,174) |
(100,185) |
|||||
Income tax expense |
(321) |
(454) |
(142) |
|||||
Net loss |
$ |
(128,154) |
$ |
(137,628) |
$ |
(100,327) |
||
Unrealized gain (loss) on available-for-sale securities, net of tax |
214 |
(41) |
691 |
|||||
Comprehensive loss |
$ |
(127,940) |
$ |
(137,669) |
$ |
(99,636) |
||
Net loss per share: |
||||||||
Basic |
$ |
(2.22) |
$ |
(2.58) |
$ |
(1.95) |
||
Diluted |
$ |
(2.22) |
$ |
(2.59) |
$ |
(1.95) |
||
Weighted-average number of shares used in computing basic and diluted net loss per share: |
||||||||
Basic |
57,848 |
53,312 |
51,576 |
|||||
Diluted |
57,848 |
53,604 |
51,576 |
(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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