Invitae Corporation (NYSE:NVTA) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 04:30 pm ET

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Invitae Corporation (NYSE:NVTA) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon, my name is Denise, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Invitae Third Quarter 2018 Financial Results Conference Call. (Operator Instructions) Thank you. Laura D'Angelo, you may begin your conference.

Executive
Laura D'Angelo

Thank you, operator, and good afternoon, everyone. Thank you for joining us for our third quarter 2018 earnings call. Joining us today are Sean George, our CEO; Shelly Guyer, our CFO; Bob Nussbaum, our CMO; Lee Bendekgey, our COO; and Katherine Stueland, our Chief Commercial Officer.

As you listen to today's conference call, we encourage you to have our press release available, which includes our financial results as well as metrics and commentary on the quarter. (Forward-Looking Cautionary Statement) To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles, or GAAP, in the United States, we monitor and consider cash burn. We encourage you to review reconciliations which are available in the press release.

With that, I will turn the call over to Sean.

Executive
Sean George

Thank you, Laura, and thank you all again for joining us. Momentum accelerates as we continue driving growth while at the same time investing in our differentiated ability to bring genetic information into mainstream medical practice. This quarter, we reported 95% volume growth, 106% revenue growth and are raising our 2018 annual guidance on both. Our continued investment in technology infrastructure delivered another decrease in COGS to around $260 per sample. Net increase in cash, cash equivalents and restricted cash was $52.6 million for the quarter.

Especially worth noting, we reduced our cash burn by almost 50% from the first quarter to $18.4 million, further demonstrating our ability to drive expansive growth paired with the operating execution required to achieve success in Invitae's mission. Now with increased strength on the balance sheet and access to more than $250 million in capital, we are as confident as ever in our ability to continue providing leadership in genetics in the future of personalized health care.

I will now turn the call over to Shelly to highlight our financial results for the quarter.

Executive
Shelly Guyer

Thank you, Sean. As Sean indicated, we are raising both our volume and revenue guidance again as a result of continued growth and execution across our business indicators. We are increasing volume guidance from more than 275,000 samples to more than 285,000 samples accessioned in 2018. Additionally, we are increasing our annual revenue guidance from $135 million to $140 million up to $140 million to $145 million. This is due to strength in our volume and continued success in reimbursement. In fact, we were recently notified we would be paid by Medicare for del/dup for colon cancer as well as improvement in collection rates from other third-party payers.

Volume is the best real-time indicator that our business model is working. For the third quarter of 2018, we accessioned approximately 78,000 samples. This is a 95% increase in annual volume compared to 40,000 samples accessioned in the third quarter of 2017. This