Invitae Corporation (NYSE: NVTA) announced its 2020 Q4 earning results and its annual results on February 17th, 2021. As a result, total revenue was up 29.0% (TTM, YoY) despite its operating loss and net loss increased significantly.
These increased losses are due to large amounts of expenses spent on recent M&A by Invitae. Among 609 million USD of net loss in 2020, 340 million USD is attributable to amortization of acquired intangible assets and the other acquisition-related costs, accounting for more than half of the net loss.
Total acquisition costs spend in 2020 reached to 384 million USD, accounting for 95.8% of cash flows from investing activities.
However Invitae succeeded in financing of 543 million USD, through issuance and public offering of common stocks. The total amount of common stocks issued in 2020 accounts for 14.2% of shareholders’ equity as of December 31st, 2020.
Strong growth of its stock price despite of such large amount of equity finance can be attributable to its excellent business model and high growth potential in its revenues.
- Watanabe & Brothers’ Investment is holding shares of Invitae Corporation.
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