Natera Reports Third Quarter 2021 Financial Results

AUSTIN, Texas, Nov. 4, 2021 /PRNewswire/ — Natera. (NASDAQ:  NTRA), a frontrunner in customized genetic testing, as we speak reported monetary outcomes for the third quarter ended September 30, 2021 and offered an replace on latest enterprise progress and monetary outlook.

Latest Accomplishments & Highlights

• Generated complete revenues of $158.1 million within the third quarter of 2021 in comparison with $98.1 million within the third quarter of 2020, a rise of 61.1%. Product revenues grew 61.5% over the identical interval.
• Processed roughly 407,300 assessments within the third quarter of 2021, in comparison with roughly 262,000 assessments processed within the third quarter of 2020, a rise of 55.4%.
• Secured an unique license from Aarhus College to a biobank of as much as 40,000 prospectively collected colorectal most cancers screening samples for improvement and validation of a check in early most cancers detection.
• Introduced constructive outcomes from the Trifecta Research, the most important potential, multi-site, totally biopsy-matched examine ever carried out within the kidney transplant area.
• Launched Prospera™ Kidney with Quantification supported by validation knowledge printed within the Journal of the American Society of Nephrology.
• Introduced the validation and launch of the Prospera transplant evaluation check in each coronary heart and lung transplant settings:

  • Introduced largest potential validation of a business cell-free DNA check in lung transplantation.
  • Prospera Coronary heart knowledge reveals glorious efficiency whereas sustaining ease of use and minimizing value to the system.

• Introduced an settlement with NRG Oncology, a Nationwide Most cancers Institute (NCI)-funded group, to make use of Signatera® for NRG Oncology’s landmark CIRCULATE-US examine of MRD-guided therapy in stage II-III colon most cancers.
• Introduced new publication in Scientific Most cancers Analysis validating Signatera velocity metric.

“Natera’s robust business momentum continued within the third quarter and we’re happy to be elevating our income steerage as soon as once more,” mentioned Steve Chapman, Natera’s Chief Government Officer. “We’re thrilled to be saying a number of main new options, improvement packages, and product launches within the transplant and oncology settings.”

Third Quarter Ended September 30, 2021 Monetary Outcomes

Whole revenues have been $158.1 million within the third quarter of 2021 in comparison with $98.1 million for the third quarter of 2020, a rise of 61.1%. Product revenues have been $150.7 million within the third quarter of 2021 in comparison with $93.Three million within the third quarter of 2020, a rise of 61.5%. The rise in product revenues was pushed by a rise in check volumes in comparison with the third quarter of 2020. Natera processed roughly 407,300 assessments within the third quarter of 2021, together with roughly 394,200 assessments accessioned in its laboratory, in comparison with roughly 262,000 assessments processed, together with roughly 249,300 assessments accessioned in its laboratory, within the third quarter of 2020.

Within the three months ended September 30, 2021, Natera acknowledged income on roughly 373,100 assessments for which ends have been reported to clients within the interval (assessments reported), together with roughly 360,700 assessments reported from its laboratory, in comparison with roughly 238,600 assessments reported, together with roughly 226,700 assessments reported from its laboratory, within the third quarter of 2020, an total improve of 56.4% for the quarter.

Gross revenue* for the three months ended September 30, 2021 and 2020 was $76.7 million and $46.Three million, respectively, representing a gross margin of 48.5% and 47.2%, respectively. Natera was capable of obtain larger margins within the third quarter of 2021 in comparison with the third quarter 2020 primarily because of elevated revenues.

Whole working bills, representing analysis and improvement bills and promoting, common and administrative bills, for the third quarter of 2021 have been $226.9 million, in comparison with $102.1 million in the identical interval of the prior 12 months, a rise of 122.2%. The will increase have been primarily pushed by headcount development to assist the Firm’s growth, quantity development, and product improvement.

Loss from operations for the third quarter of 2021 was $150.2 million in comparison with $55.Eight million for a similar interval of the prior 12 months.

Web loss for the third quarter of 2021 was $151.Three million, or ($1.63) per diluted share, in comparison with internet lack of $58.Three million, or ($0.72) per diluted share, for a similar interval in 2020. Weighted common shares excellent have been roughly 92.6 million within the third quarter of 2021 in comparison with 80.9 million within the second quarter of the prior 12 months.

At September 30, 2021, Natera held roughly $1.Zero billion in money, money equivalents, short-term investments and restricted money, in comparison with $737.5 million as of December 31, 2020. As of September 30, 2021, Natera had a complete excellent debt stability of $330.1 million, comprised of $50.Zero million together with accrued curiosity beneath its line of credit score with UBS at a variable rate of interest of 30-day LIBOR plus 110 bps and a internet carrying quantity of $280.1 million beneath its seven-year convertible senior notes. The convertible senior notes have been issued in April 2020 for internet proceeds of $278.Three million. The gross principal stability excellent for the convertible senior notes was $287.5 million as of September 30, 2021.

Monetary Outlook

Natera anticipates 2021 complete income of $615 million to $625 million; 2021 gross margin to be roughly 49% to 52% of revenues; promoting, common and administrative prices to be roughly $500 million to $520 million; analysis and improvement prices to be $240 million to $260 million, and internet money consumption to be $300 million to $340 million**.

* Gross revenue is calculated as GAAP complete revenues much less GAAP value of revenues. Gross margin is calculated as gross revenue divided by GAAP complete revenues.

** Money consumption is calculated because the sum of GAAP internet money utilized by working actions (estimated for 2021 to be between $255 million and $295 million) and GAAP internet purchases of property and tools (estimated for 2021 to be roughly $45 million).

About Natera

Natera is a frontrunner in customized genetic testing and diagnostics, reworking how we make important well being care choices. Our assessments assist clinicians and their sufferers shield their well being and allow earlier and extra focused interventions that result in higher outcomes. Natera’s assessments are validated by greater than 80 peer-reviewed research that exhibit excessive accuracy, bettering affected person care outcomes in oncology, girls’s well being and organ well being. Natera operates ISO 13485-certified and CAP-accredited laboratories licensed beneath the Scientific Laboratory Enchancment Amendments (CLIA) in Austin, Texas and San Carlos, California.

Convention Name Data

Ahead-Wanting Statements

This press launch accommodates forward-looking statements beneath the that means of the Personal Securities Litigation Reform Act of 1995.  All statements apart from statements of historic information, together with the corporate’s monetary steerage for fiscal 2021, its means to proceed to extend its revenues, its product improvement plans and its means to take care of and develop its enterprise operations in gentle of the COVID-19 pandemic, are forward-looking statements. Any forward-looking statements contained on this press launch are primarily based upon Natera’s present plans, estimates, and expectations, as of the date of this launch, and are usually not a illustration that such plans, estimates, or expectations will probably be achieved.

These forward-looking statements are topic to identified and unknown dangers and uncertainties which will trigger precise outcomes to vary materially, together with: we face quite a few uncertainties and challenges in attaining our monetary projections and targets; we could also be unable to take care of our enterprise and operations as deliberate in gentle of the COVID-19 pandemic; we could also be unable to additional improve the use and adoption of Panorama and Horizon, by means of our direct gross sales efforts or by means of our laboratory companions, or to develop and efficiently commercialize new merchandise, together with Signatera and Prospera; we’ve got incurred losses since our inception and we anticipate that we’ll proceed to incur losses for the foreseeable future; our quarterly outcomes might fluctuate from interval to interval; our estimates of market alternative and forecasts of market development might show to be inaccurate; we could also be unable to compete efficiently with current or future services or products supplied by our rivals; we might have interaction in acquisitions, inclinations or different strategic transactions that won’t obtain our anticipated advantages and will in any other case disrupt our enterprise, trigger dilution to our stockholders or cut back our monetary assets; we is probably not profitable in commercializing our cloud-based distribution mannequin; our merchandise might not carry out as anticipated; the outcomes of our scientific research, together with our SNP-based Microdeletion and Aneuploidy RegisTry, or SMART, Research, is probably not compelling to skilled societies or payors as supporting using our assessments, notably within the average-risk being pregnant inhabitants or for microdeletions screening, or might not be capable of be replicated in later research required for regulatory approvals or clearances; if both of our CLIA-certified laboratory services turns into inoperable, we will probably be unable to carry out our assessments and our enterprise will probably be harmed; we depend on a restricted variety of suppliers or, in some instances, single suppliers, for a few of our laboratory devices and supplies and should not be capable of discover replacements or instantly transition to different suppliers; if we’re unable to efficiently scale our operations, our enterprise might endure; the advertising and marketing, sale, and use of Panorama and our different merchandise might end in substantial damages arising from product legal responsibility or skilled legal responsibility claims that exceed our assets; we could also be unable to increase third-party payer protection and reimbursement for Panorama, Horizon and our different assessments, and we could also be required to refund reimbursements already acquired; third-party payers might withdraw protection or present decrease ranges of reimbursement resulting from altering insurance policies, billing complexities or different components, such because the elevated focus by third-party payers on requiring that prior authorization be obtained previous to conducting a check; if the FDA have been to start actively regulating our assessments, we might incur substantial prices and delays related to attempting to acquire premarket clearance or approval and incur prices related to complying with post-market controls; litigation or different proceedings, ensuing from both third get together claims of mental property infringement or third get together infringement of our know-how, is dear, time-consuming and will restrict our means to commercialize our services or products; any lack of ability to successfully shield our proprietary know-how might hurt our aggressive place or our model; and we can not assure that we will service and adjust to our excellent debt obligations or obtain our expectations concerning the conversion of our excellent convertible notes.

Further dangers and uncertainties that might have an effect on our monetary outcomes are included beneath the captions, “Danger Components” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” in our most up-to-date filings on Types 10-Okay and 10-Q and in different filings that we make with the SEC infrequently. These paperwork can be found on our web site at www.natera.com beneath the Investor Relations part and on the SEC’s web site at www.sec.gov.

In gentle of the numerous uncertainties in these forward-looking statements, you shouldn’t regard these statements as a illustration or guarantee by us or another individual that we’ll obtain our targets and plans in any specified timeframe, or in any respect. Natera assumes no obligation to, and doesn’t at present intend to, replace any such forward-looking statements after the date of this launch.

Contacts

Natera, Inc.

Investor Relations

Mike Brophy, CFO, Natera, Inc., 510-826-2350

Media 

Kate Stabrawa, Communications, Natera, Inc., 720-318-4080 pr@natera.com

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SOURCE Natera, Inc.