Invitae recorded Net Loss of 174 Million USD in 9 Months ending September 30

Invitae (NYSE: NVTA) announced its 2021 Q3 financial results on November 8, 2021. According to the announcement, total revenue was up 66% (3 months, YoY). On the other hand, loss from operation and net loss increased by 139% and 93%, respectively (3 months, YoY).

Among the net loss of 174 million USD (9 months), the research and development account for 284 million USD. Stock-based compensation reached 132 million USD. It was reported last several years that Invitae had conducted multiple acquisitions. However, depreciation and amortization of the acquired assets do not account for a large proportion of the net loss. Rather, Invitae has allocated the larger amount of budgets for research and development and human resources, indicating that they lay weight on up-front investments.

Meanwhile, Invitae issued convertible senior notes of 1.1 billion USD during 9 months ending September 30, 2021. In addition, public offering of common stocks accounts for 434 million USD during the same period. These financing activity seems to be intended to supplement the negative free cash flow of Invitae. Given these situation, Invitae’s stock price is likely to be subject to downward pressure due to the dilution.

We believe that the free cash flow needs to be positive in order for Invitae’s stock price to go up.

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Invitae Corporation. 
  2. This report is provided solely for informational purpose and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell any specific products. 
  3. Any opinions or statements expressed in this report are based on the author’s personal and subjective views, and are not the official views of the organization to which the author belongs.  In addition, although we have done our best efforts in making accurate assessments on the original financial statements, we cannot guarantee any complete accuracy of this report. We do not guarantee either that any future forecasts referred to in this report will certainly be realized. Investment in listed stocks, ETFs, etc. should be carried out under the responsibility of each investor, and even if the investor who read this report suffers a loss due to investment activities, Watanabe & Brothers’  Investment is not responsible for any liability.
  4. This report was originally prepared in English, and translated into the other languages with plugin utilizing Google Translation API. We hereby notify that the translations are provided only for the sake of reference, and any opinions or statements in this report should be interpreted in original English. We ask any investors reading this report to refer to the original financial statements issued by the company.
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