Invitae recorded increased Net Loss in 2020

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.

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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