Natera Q2 Sales Tops Street Estimates On Higher Volumes, Raises FY21 Sales Outlook

Natera Inc's NTRA second-quarter revenues jumped 64% Y/Y $142 million, driven by an increase in test volume and product revenues, sharply ahead of the consensus of $127.49 million.

• Product revenues rose 71% to $137.2 million, led by an increase in test volumes. Licensing and other revenues dropped 21% to $4.8 million.
• Natera CEO Steve Chapman said, "Our volumes continued to accelerate, and we expanded our market opportunity with positive new data in both organ health and oncology."
• Natera processed approximately 375,700 tests, a 61% Y/Y increase. 
• About 361,500 tests were accessioned in the firm's laboratory, up from 234,100 a year ago. Natera recognized revenue on approximately 355,700 tests in Q2, up 62%.
• The gross margin expanded from 45.7% to 46.4%.
• The firm's Q2 net loss widened to $(1.32) per share, from $59.6 million, or $(0.75) per share a year ago, missing the consensus for a net loss of $(1.08).
• Natera's Q2 R&D costs rose 134% to $53.8 million, and its SG&A expenses increased 87% to $127.5 million.
• It ended the quarter with $62.8 million in cash and cash equivalents and $517.4 million in short-term investments.
• Outlook: Natera raised the FY21 revenue forecast to $600 million - $620 million, up from $550 million to $575 million prior, compared to a consensus of $567.6 million.
• Net cash burn to be $300 million - $340 million.
• Price Action: NTRA shares are down 2.14% at $117.09 on the last check Friday.