Natera, Inc. (NASDAQ:NTRA) Q3 2018 Earnings Conference Call Transcript
Nov 08, 2018 • 05:30 pm ET
Welcome to Natera's 2018 Third Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Following management's prepared remarks, we will hold a Q&A session. (Operator Instructions) As a reminder, this conference call is being recorded today, November 8th, 2018.
I would now like to turn the conference call over to Michael Brophy, CFO. Please go ahead.
Thanks, Operator. Good afternoon. Thank you for joining our conference call to discuss the results of our third quarter 2018. Also on the line is Matthew Rabinowitz, our CEO; Steve Chapman, our COO; and Solomon Moshkevich, SVP of Product and Strategy. Paul Billings, our CMO is also here today for questions.
Today's conference call is being broadcast live via webcast. We will be referring to a slide presentation that has been posted to investor.natera.com. A replay of the call will also be available at investors.natera.com.
(Forward-Looking Cautionary Statements)
And now, I'd like to turn the call over to Matt.
Thanks, Mike. Good afternoon, everyone, and thank you for joining us. I will cover our recent highlights and progress in the business since we last spoke in August, and Mike will provide additional details on our financial progress. As Mike mentioned, we will be referring to slides that were just posted at investor.natera.com.
A summary of our recent highlights on the next slide. On volumes. We processed over 167,000 tests in the quarter which represents 28% growth versus the same quarter last year and sequential quarterly growth over a very strong Q2 that we have described previously. Steve will go into more detail on volumes in a few minutes. For Panorama, in particular, we processed 115,000 tests in Q3, which represents growth of 26%, compared to Q3 last year. We also saw continuing momentum in our Horizon carrier screening volumes, which grew 36% when compared to the same period of the prior year.
We generated total revenues of $65.3 million in the quarter up 17% versus Q3 last year. We were pleased to see that pricing remained stable in Q3 as we expected. Our revenues were negatively impacted in the quarter by delay in reporting our samples from our lab in late September that we estimate cost us about $1.2 million in revenue. We also benefited from improved performance in collections of claims from roughly the last two years when appealing insurance companies. Mike will go into more detail on the drivers of revenue and our guidance later in the call.
But I wanted to address these briefly now. As you can see in our press release, we tightened revenue guidance for the year to $250 million to $260 million. This is primarily driven by delays in revenue recognition for volumes in our two new businesses: cord blood and oncology. We've continued to remain targeted with our investment in cord blood to collect volumes from existing customers and the volumes are growing, but the pace in the second half of the year has been slower than anticipated. In addition, the