Natera Reports Third Quarter 2024 Financial Results
Natera (NASDAQ: NTRA) reported Q3 2024 financial results, highlighting a 63.9% revenue increase to $439.8 million compared to Q3 2023. Product revenues surged by 64.4%. The company achieved a gross margin of 61.8%, up from 45.1% in the prior year. Natera processed approximately 775,800 tests, a 23.9% increase, and performed around 137,100 oncology tests, a 54.4% rise. The company reported a positive cash flow of $34.5 million and raised its annual guidance to $1.61-$1.64 billion in total revenue, 58%-61% gross margin, and $50-$75 million in net cash inflow.
Natera reported a net loss of $31.6 million ($0.26 per diluted share), an improvement from a $109.0 million net loss ($0.95 per diluted share) in Q3 2023. Total operating expenses increased by 34% to $311.1 million. The company held $922.3 million in cash and equivalents as of September 30, 2024, with total debt at $367.0 million. All convertible senior notes were redeemed or converted on October 11, 2024.
Natera (NASDAQ: NTRA) ha riportato i risultati finanziari per il terzo trimestre 2024, evidenziando un aumento del fatturato del 63,9% a 439,8 milioni di dollari rispetto al terzo trimestre 2023. I ricavi da prodotti sono aumentati del 64,4%. L'azienda ha raggiunto un margine lordo del 61,8%, in crescita rispetto al 45,1% dell'anno precedente. Natera ha processato circa 775.800 test, un incremento del 23,9%, e ha eseguito circa 137.100 test oncologici, un aumento del 54,4%. L'azienda ha riportato un flusso di cassa positivo di 34,5 milioni di dollari e ha innalzato le sue previsioni annuali a 1,61-1,64 miliardi di dollari in ricavi totali, con un margine lordo del 58%-61% e un'affluenza di cassa netta di 50-75 milioni di dollari.
Natera ha registrato una perdita netta di 31,6 milioni di dollari (0,26 dollari per azione diluita), un miglioramento rispetto a una perdita netta di 109,0 milioni di dollari (0,95 dollari per azione diluita) nel terzo trimestre 2023. Le spese operative totali sono aumentate del 34% a 311,1 milioni di dollari. L'azienda deteneva 922,3 milioni di dollari in contante e equivalenti al 30 settembre 2024, con un debito totale di 367,0 milioni di dollari. Tutti i prestiti senior convertibili sono stati riscattati o convertiti l'11 ottobre 2024.
Natera (NASDAQ: NTRA) reportó los resultados financieros del tercer trimestre de 2024, destacando un aumento del 63.9% en ingresos a 439.8 millones de dólares en comparación con el tercer trimestre de 2023. Los ingresos por productos aumentaron un 64.4%. La compañía logró un margen bruto del 61.8%, en comparación con el 45.1% del año anterior. Natera procesó aproximadamente 775,800 pruebas, un aumento del 23.9%, y realizó alrededor de 137,100 pruebas oncológicas, un incremento del 54.4%. La empresa reportó un flujo de caja positivo de 34.5 millones de dólares y elevó su guía anual a entre 1.61 y 1.64 mil millones de dólares en ingresos totales, un margen bruto del 58%-61% y un flujo de caja neto de entre 50 y 75 millones de dólares.
Natera reportó una pérdida neta de 31.6 millones de dólares (0.26 dólares por acción diluida), una mejora en comparación con una pérdida neta de 109.0 millones de dólares (0.95 dólares por acción diluida) en el tercer trimestre de 2023. Los gastos operativos totales aumentaron un 34% a 311.1 millones de dólares. La compañía tenía 922.3 millones de dólares en efectivo y equivalentes al 30 de septiembre de 2024, con una deuda total de 367.0 millones de dólares. Todas las notas senior convertibles fueron redimidas o convertidas el 11 de octubre de 2024.
나테라 (NASDAQ: NTRA)는 2024년 3분기 재무 결과를 발표하며, 2023년 3분기 대비 63.9%의 매출 증가를 기록하여 4억 3천 9백 80만 달러에 달했다고 밝혔습니다. 제품 매출은 64.4% 증가했습니다. 이 회사는 총 마진이 61.8%로, 지난해 45.1%에서 증가했습니다. 나테라는 약 775,800건의 검사를 수행했으며, 이는 23.9% 증가한 수치입니다. 또한 약 137,100건의 종양학 검사를 수행했으며, 이는 54.4% 증가했습니다. 이 회사는 3천 4백 50만 달러의 긍정적인 현금 흐름을 기록했으며, 연간 가이던스를 총 16억 1천만 ~ 16억 4천만 달러의 매출, 58% ~ 61%의 총 마진, 그리고 5천만 ~ 7천5백만 달러의 순 현금 유입으로 상향 조정했습니다.
나테라는 순 손실이 3천 1백 60만 달러 (주당 0.26 달러)로, 2023년 3분기 1억 0천 9백만 달러 (주당 0.95 달러)의 순 손실에서 개선되었습니다. 총 운영 비용은 34% 증가하여 3억 1천1백만 달러에 달했습니다. 이 회사는 2024년 9월 30일 기준으로 9억 2천2백30만 달러의 현금과 현금 등가물을 보유하고 있으며, 총 부채는 3억 6천7백만 달러입니다. 모든 전환 가능한 선순위 채권은 2024년 10월 11일에 상환되거나 전환되었습니다.
Natera (NASDAQ: NTRA) a annoncé les résultats financiers du troisième trimestre 2024, mettant en avant une augmentation des revenus de 63,9% à 439,8 millions de dollars par rapport au troisième trimestre 2023. Les revenus des produits ont augmenté de 64,4%. L'entreprise a atteint une marge brute de 61,8%, en hausse par rapport à 45,1% l'année précédente. Natera a réalisé environ 775 800 tests, soit une augmentation de 23,9%, et a effectué environ 137 100 tests oncologiques, soit une hausse de 54,4%. L'entreprise a annoncé un flux de trésorerie positif de 34,5 millions de dollars et a relevé sa prévision annuelle à 1,61-1,64 milliard de dollars de revenus totaux, une marge brute de 58%-61% et un flux de trésorerie net de 50 à 75 millions de dollars.
Natera a enregistré une perte nette de 31,6 millions de dollars (0,26 dollar par action diluée), une amélioration par rapport à une perte nette de 109,0 millions de dollars (0,95 dollar par action diluée) au troisième trimestre 2023. Les dépenses d'exploitation totales ont augmenté de 34% pour atteindre 311,1 millions de dollars. L'entreprise disposait de 922,3 millions de dollars en espèces et équivalents au 30 septembre 2024, avec une dette totale de 367,0 millions de dollars. Toutes les obligations senior convertibles ont été remboursées ou converties le 11 octobre 2024.
Natera (NASDAQ: NTRA) hat die finanziellen Ergebnisse für das 3. Quartal 2024 bekannt gegeben und hebt einen Umsatzanstieg von 63,9% auf 439,8 Millionen US-Dollar im Vergleich zum 3. Quartal 2023 hervor. Die Produktumsätze stiegen um 64,4%. Das Unternehmen erreichte eine Bruttomarge von 61,8%, ein Anstieg von 45,1% im Vorjahr. Natera führte etwa 775.800 Tests durch, was einem Anstieg von 23,9% entspricht, und führte etwa 137.100 onkologische Tests durch, ein Anstieg von 54,4%. Das Unternehmen berichtete von einem positiven Cashflow von 34,5 Millionen US-Dollar und erhöhte seine Jahresprognose auf 1,61 bis 1,64 Milliarden US-Dollar an Gesamteinnahmen, 58% bis 61% Bruttomarge und 50 bis 75 Millionen US-Dollar Nettokasse.
Natera meldete einen Nettoverlust von 31,6 Millionen US-Dollar (0,26 US-Dollar pro verwässerter Aktie), eine Verbesserung im Vergleich zu einem Nettoverlust von 109,0 Millionen US-Dollar (0,95 US-Dollar pro verwässerter Aktie) im 3. Quartal 2023. Die gesamten Betriebskosten stiegen um 34% auf 311,1 Millionen US-Dollar. Das Unternehmen hielt zum 30. September 2024 922,3 Millionen US-Dollar in Bar und Äquivalenten, bei einer Gesamtverschuldung von 367,0 Millionen US-Dollar. Alle wandelbaren vorrangigen Anleihen wurden am 11. Oktober 2024 eingelöst oder umgewandelt.
- 63.9% increase in revenue to $439.8 million
- Gross margin improved to 61.8% from 45.1%
- Processed 775,800 tests, a 23.9% increase
- Performed 137,100 oncology tests, a 54.4% increase
- Positive cash flow of $34.5 million
- Raised annual revenue guidance to $1.61-$1.64 billion
- Reduced net loss to $31.6 million from $109.0 million
- Increased operating expenses by 34% to $311.1 million
- Net loss of $31.6 million, though reduced from prior year
Insights
The Q3 2024 results showcase exceptional financial performance with
The raised guidance to
The significant increase in test volumes, particularly in oncology (
The expansion in total tests processed to 775,800 (up
Recent Strategic and Financial Highlights
-
Generated total revenues of
in the third quarter of 2024, compared to$439.8 million in the third quarter of 2023, a record increase of$268.3 million 63.9% . Product revenues grew64.4% over the same period. -
Generated a gross margin of
61.8% in the third quarter of 2024, compared to a gross margin of45.1% in the third quarter of 2023. -
Processed approximately 775,800 tests in the third quarter of 2024, compared to approximately 626,000 tests in the third quarter of 2023, an increase of
23.9% . -
Performed approximately 137,100 oncology tests in the third quarter of 2024, compared to approximately 88,800 in the third quarter of 2023, an increase of
54.4% . -
Achieved positive cash flow of approximately
1 in the third quarter of 2024.$34.5 million -
Raising annual guidance and now expecting 2024 total revenue of
to$1.61 billion , gross margin of$1.64 billion 58% to61% , and to$50 million in net cash inflow.$75 million - Announced completion of study using SignateraTM from the CALGB (Alliance)/SWOG 80702 randomized, phase III clinical trial in colorectal cancer.
- Published first-of-its-kind colorectal cancer data from the GALAXY study in Nature Medicine and concurrently presented the data at the 2024 Congress of the European Society for Medical Oncology (ESMO).
“Our strong performance in the third quarter reflects our unwavering dedication to the patients we serve and the passion of our employees in each of our business areas,” said Steve Chapman, chief executive officer of Natera. “We grew volumes, revenue, gross margin, and cash flow in what continues to be a transformational year for Natera.”
Third Quarter Ended September 30, 2024 Financial Results
Total revenues were
Natera processed approximately 775,800 tests in the third quarter of 2024, including approximately 760,700 tests accessioned in its laboratory, compared to approximately 626,000 tests processed, including approximately 609,800 tests accessioned in its laboratory, in the third quarter of 2023.
In the third quarter of 2024, Natera recognized revenue on approximately 750,100 tests for which results were reported to customers in the period (tests reported), including approximately 735,900 tests reported from its laboratory, compared to approximately 590,000 tests reported, including approximately 575,000 tests reported from its laboratory, in the third quarter of 2023, an increase of
Gross profit2 for the three months ended September 30, 2024 and September 30, 2023 was
Loss from operations for the third quarter of 2024 was
At September 30, 2024, Natera held approximately
Financial Outlook
Natera anticipates 2024 total revenue of
Test Volume Summary |
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Unit |
Q3 2024 |
Q3 2023 |
Definition |
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Tests processed |
775,800 |
626,000 |
Tests accessioned in our laboratory plus units processed outside of our laboratory |
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Tests accessioned |
760,700 |
609,800 |
Test accessioned in our laboratory |
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Tests reported |
750,100 |
590,000 |
Total tests reported |
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Tests reported in our laboratory |
735,900 |
575,000 |
Total tests reported in our laboratory less units reported outside of our laboratory |
About Natera
Natera™ is a global leader in cell-free DNA and genetic testing, dedicated to oncology, women’s health, and organ health. We aim to make personalized genetic testing and diagnostics part of the standard of care to protect health and enable earlier, more targeted interventions that help lead to longer, healthier lives. Natera’s tests are validated by more than 200 peer-reviewed publications that demonstrate high accuracy. Natera operates ISO 13485-certified and CAP-accredited laboratories certified under the Clinical Laboratory Improvement Amendments (CLIA) in
Conference Call Information
Event: |
Natera’s Third Quarter 2024 Financial Results Conference Call |
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Date: |
Tuesday, November 12, 2024 |
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Time: |
1:30 p.m. PT (4:30 p.m. ET) |
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Live Dial-In: |
1-888-770-7321 (Domestic)
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Conference ID: |
7684785 |
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Webcast Link: |
Forward-Looking Statements
This press release contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts, including the company’s financial guidance for fiscal 2024, its market opportunity, anticipated products and launch schedules, reimbursement coverage and product costs, commercial and strategic partnerships and acquisitions, user experience, clinical trials and studies, and its strategies, goals and general business and market conditions, are forward-looking statements. Any forward-looking statements contained in this press release are based upon Natera’s current plans, estimates, and expectations, as of the date of this release, and are not a representation that such plans, estimates, or expectations will be achieved.
These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including: we face numerous uncertainties and challenges in achieving our financial projections and goals; we may be unable to further increase the use and adoption of our products through our direct sales efforts or through our laboratory partners; we have incurred losses since our inception and we anticipate that we will continue to incur losses for the foreseeable future; our quarterly results may fluctuate from period to period; our estimates of market opportunity and forecasts of market growth may prove to be inaccurate; we may be unable to compete successfully with existing or future products or services offered by our competitors; we may engage in acquisitions, dispositions or other strategic transactions that may not achieve our anticipated benefits and could otherwise disrupt our business, cause dilution to our stockholders or reduce our financial resources; we may not be successful in commercializing our cloud-based distribution model; our products may not perform as expected; the results of our clinical studies, including our SNP-based Microdeletion and Aneuploidy Registry, or SMART, Study, may not be compelling to professional societies or payors as supporting the use of our tests, particularly for microdeletions screening, or may not be able to be replicated in later studies required for regulatory approvals or clearances; if either of our primary CLIA-certified laboratories becomes inoperable, we will be unable to perform our tests and our business will be harmed; we rely on a limited number of suppliers or, in some cases, single suppliers, for some of our laboratory instruments and materials and may not be able to find replacements or immediately transition to alternative suppliers; if we are unable to successfully scale our operations, our business could suffer; the marketing, sale, and use of Panorama and our other products could result in substantial damages arising from product liability or professional liability claims that exceed our resources; we may be unable to expand, obtain or maintain third-party payer coverage and reimbursement for our tests, and we may be required to refund reimbursements already received; third-party payers may withdraw coverage or provide lower levels of reimbursement due to changing policies, billing complexities or other factors; we could incur substantial costs and delays associated with trying to obtain premarket clearance or approval, and incur costs associated with complying with post-market controls, if and when the FDA begins actively regulating our tests pursuant to recently enacted FDA regulations; litigation or other proceedings, resulting from either third party claims of intellectual property infringement or third party infringement of our technology, is costly, time-consuming and could limit our ability to commercialize our products or services; any inability to effectively protect our proprietary technology could harm our competitive position or our brand; and we cannot guarantee that we will be able to service and comply with our outstanding debt obligations.
Additional risks and uncertainties that could affect our financial results are included under the captions, "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our most recent filings on Forms 10-K and 10-Q and in other filings that we make with the SEC from time to time. These documents are available on our website at www.natera.com under the Investor Relations section and on the SEC’s website at www.sec.gov.
In light of the significant uncertainties in these forward-looking statements, you should not regard these statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame, or at all. Natera assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
References
-
Positive cash flow for the quarter ended September 30, 2024, is derived from the GAAP Statement of Cash Flows as follows: net cash provided by operating activities of
, net cash provided by financing activities of$51.8 million , offset by net cash used in investing activities for purchases of property and equipment, and investment in related party of$1.7 million .$19.0 million - Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross profit divided by GAAP total revenues.
- Cash (outflow) inflow is calculated as the sum of GAAP net cash provided by (used in) operating activities, GAAP net cash provided by (used in) financing activities, and GAAP net cash provided by (used in) investing activities for purchases of property and equipment, investment in related party, and acquisition of assets.
Natera, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except shares) |
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September 30, |
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December 31, |
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2024 |
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2023 |
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(1) |
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Assets |
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|
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Current assets: |
|
|
|
|
|
|
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Cash, cash equivalents and restricted cash |
|
$ |
892,844 |
|
$ |
642,095 |
|
Short-term investments |
|
|
29,490 |
|
|
236,882 |
|
Accounts receivable, net of allowance of |
|
|
306,876 |
|
|
278,289 |
|
Inventory |
|
|
48,724 |
|
|
40,759 |
|
Prepaid expenses and other current assets, net |
|
|
44,631 |
|
|
60,524 |
|
Total current assets |
|
|
1,322,565 |
|
|
1,258,549 |
|
Property and equipment, net |
|
|
142,170 |
|
|
111,210 |
|
Operating lease right-of-use assets |
|
|
87,856 |
|
|
56,537 |
|
Other assets |
|
|
38,356 |
|
|
15,403 |
|
Total assets |
|
$ |
1,590,947 |
|
$ |
1,441,699 |
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Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
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Accounts payable |
|
$ |
27,834 |
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$ |
14,998 |
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Accrued compensation |
|
|
49,051 |
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|
45,857 |
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Other accrued liabilities |
|
|
126,176 |
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|
149,405 |
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Deferred revenue, current portion |
|
|
17,886 |
|
|
16,612 |
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Short-term debt financing |
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|
80,469 |
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|
80,402 |
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Total current liabilities |
|
|
301,416 |
|
|
307,274 |
|
Long-term debt financing |
|
|
286,549 |
|
|
282,945 |
|
Deferred revenue, long-term portion and other liabilities |
|
|
25,504 |
|
|
19,128 |
|
Operating lease liabilities, long-term portion |
|
|
98,953 |
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|
67,025 |
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Total liabilities |
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|
712,422 |
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676,372 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock (2) |
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|
12 |
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|
11 |
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Additional paid-in capital |
|
|
3,393,369 |
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|
3,145,837 |
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Accumulated deficit |
|
|
(2,514,091) |
|
|
(2,377,436) |
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Accumulated other comprehensive loss |
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|
(765) |
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|
(3,085) |
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Total stockholders’ equity |
|
|
878,525 |
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|
765,327 |
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Total liabilities and stockholders’ equity |
|
$ |
1,590,947 |
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$ |
1,441,699 |
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(1) | The consolidated balance sheet at December 31, 2023 has been derived from the audited consolidated financial statements at that date included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023. |
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(2) | As of September 30, 2024 and December 31, 2023, there were approximately 124,137,000 and 119,581,000 shares of common stock issued and outstanding, respectively. |
Natera, Inc. Consolidated Statements of Operations and Comprehensive Loss (Unaudited) (in thousands, except per share data) |
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Three months ended |
Nine months ended |
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September 30, |
September 30, |
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2024 |
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2023 |
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2024 |
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2023 |
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Revenues |
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|
|
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|||||||
Product revenues |
$ |
436,127 |
|
$ |
265,218 |
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$ |
1,212,163 |
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$ |
761,271 |
|
|||
Licensing and other revenues |
|
3,631 |
|
|
3,088 |
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|
8,687 |
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|
10,195 |
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Total revenues |
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439,758 |
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|
268,306 |
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|
1,220,850 |
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|
771,466 |
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Cost and expenses |
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|
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|
|
|
|||||||
Cost of product revenues |
|
167,657 |
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|
146,962 |
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|
496,340 |
|
|
437,524 |
|
|||
Cost of licensing and other revenues |
|
354 |
|
|
349 |
|
|
990 |
|
|
1,060 |
|
|||
Research and development |
|
96,931 |
|
|
77,235 |
|
|
274,677 |
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|
237,714 |
|
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Selling, general and administrative |
|
214,154 |
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|
154,742 |
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|
606,397 |
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|
456,877 |
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Total cost and expenses |
|
479,096 |
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|
379,288 |
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|
1,378,404 |
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|
1,133,175 |
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Loss from operations |
|
(39,338 |
) |
|
(110,982 |
) |
|
(157,554 |
) |
|
(361,709 |
) |
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Interest expense |
|
(3,142 |
) |
|
(3,252 |
) |
|
(9,393 |
) |
|
(9,490 |
) |
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Interest and other income, net |
|
11,618 |
|
|
5,406 |
|
|
32,342 |
|
|
14,509 |
|
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Loss before income taxes |
|
(30,862 |
) |
|
(108,828 |
) |
|
(134,605 |
) |
|
(356,690 |
) |
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Income tax expense |
|
(730 |
) |
|
(202 |
) |
|
(2,050 |
) |
|
(80 |
) |
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Net loss |
$ |
(31,592 |
) |
$ |
(109,030 |
) |
$ |
(136,655 |
) |
$ |
(356,770 |
) |
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Unrealized gain on available-for-sale securities, net of tax |
|
593 |
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|
3,807 |
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|
2,320 |
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|
10,966 |
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Comprehensive loss |
$ |
(30,999 |
) |
$ |
(105,223 |
) |
$ |
(134,335 |
) |
$ |
(345,804 |
) |
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Net loss per share: |
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Basic and diluted |
$ |
(0.26 |
) |
$ |
(0.95 |
) |
$ |
(1.12 |
) |
$ |
(3.14 |
) |
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Weighted-average number of shares used in computing basic and diluted net loss per share: |
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Basic and diluted |
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123,775 |
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115,171 |
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122,486 |
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113,559 |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241112173566/en/
Investor Relations
Mike Brophy, CFO, Natera, Inc., 510-826-2350
Media
Lesley Bogdanow, VP of Corporate Communications, Natera, Inc., pr@natera.com
Source: Natera, Inc.
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