Invitae Shares Fall As Q4 Earnings Fall Short Of Street Expectation

Invitae Corp's NVTA Q4 FY21 revenues increased 26% Y/Y to $126.1 million, just shy of the consensus Wall Street estimate of $126.65 million. 

• Invitae reported testing revenue of $121.6 million for the quarter and $4.5 million in other revenue. It billed for 327,000 tests in Q4 FY21.
• On an adjusted basis, the company reported an EPS loss of $(0.81), wider than analysts' average estimate of a loss per share of $(0.73) and $(0.63) posted a year ago.
• The non-GAAP growth margin improved slightly to 36.5% over the Q3 margin of 35.6%.
• Invitae held $1.06 billion in cash and equivalents as of December 31, 2021.
• During the Q4 earnings call, Sean George, CEO, noted, to meet the increasing demand for precision oncology products, the company this year will launch a tumor-informed Personalized Cancer Monitoring (PCM) test and a whole-exome sequencing-based therapy selection test. 
• George said Invitae is on track to launch PCM in the first half of 2022 and the WES therapy selection test in the second half of the year. All of this will contribute to the oncology group's growth, he noted.
• Guidance: Invitae expects FY22 revenue of approximately $640 million, Y/Y growth of 40%, compared to the consensus of $638.69 million.
• The gross margin for 2022 is expected to be 42%-45%.
• Including cash used for acquisition-related activities, cash burn is expected to be $600 million - $650 million.
• Price Action: NVTA shares are down 4.26% at $9.00 during the premarket session on the last check Friday.