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Natera 8-K Report, Financial Results (Feb 28, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed February 28, 2024
Period End
February 28, 2024
Security
NTRA
In the record · 2016–202610-K1110-Q348-K105

NTRA filed 11 annual reports (10-K), 34 quarterly reports (10-Q) and 105 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Aug ’17Aug ’17
  2. Material agreement8-K · May ’20May ’20
  3. Leadership change8-K · Aug ’22Aug ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed February 28, 2024. Cited figures are marked; the original filing is the authoritative source.

Natera, Inc. (NASDAQ: NTRA) reported fourth quarter and full year 2023 results on February 28, 2024.

Total revenues for the fourth quarter were $311.1 milliona, up 43.2% from $217.3 million a year earlier, with product revenues up 44.3%. For the full year, total revenues were $1,082.6 million, up 32.0% from $820.2 million in 2022. Gross margin for the fourth quarter was 51.4%, compared with 41.4% in the fourth quarter of 2022.

The full-year 2023 net loss was $434.8 millionb, or $(3.78) per diluted share, narrowed from $547.8 million, or $(5.57) per diluted share, in 2022. For 2024, Natera guided to total revenue of $1.32 billion to $1.35 billion, gross margin of 50% to 53%, SG&A of $630 million to $650 million, R&D of $325 million to $345 million, and net cash consumption of $50 million to $75 million. The company reiterated its expectation of reaching a cash flow breakeven quarter in 2024.

Cash, cash equivalents, short-term investments and restricted cash were approximately $879.0 millionc at December 31, 2023, against total debt of $363.3 million, including a $287.5 million gross principal balance on convertible senior notes. Operating momentum was strong, with approximately 2,496,100 tests processed in 2023 (up 20.8%) and approximately 340,700 oncology tests performed (up 73.5%).

Management also highlighted the acquisition of Invitae's reproductive health assets and new Medicare coverage for Signatera in ovarian cancer and neoadjuvant breast cancer. The results are furnished under Item 2.02 and are not deemed filed for purposes of Section 18 of the Exchange Act.

02—Key points

Key Highlights

  1. Fourth-quarter 2023 total revenues rose 43.2% to $311.1 million, with product revenues up 44.3%.
  2. Full-year 2023 total revenues rose 32.0% to $1,082.6 million, and oncology tests grew 73.5% to approximately 340,700.
  3. Gross margin improved to 51.4% in Q4 2023 from 41.4% in Q4 2022; full-year 2023 gross profit was $492.7 million, a 45.5% margin.
  4. Full-year 2023 net loss narrowed to $434.8 million, or $(3.78) per diluted share, from $547.8 million, or $(5.57) per diluted share, in 2022.
  5. 2024 guidance calls for total revenue of $1.32 billion to $1.35 billion, gross margin of 50% to 53%, and net cash consumption of $50 million to $75 million.
  6. Management reiterated expectations to reach a cash flow breakeven quarter in 2024.
  7. Cash and investments were approximately $879.0 million at December 31, 2023, with Medicare coverage for Signatera expanded to ovarian cancer and neoadjuvant breast cancer.

03—Questions

Frequently Asked Questions

  1. How did Natera's revenue perform in the fourth quarter and full year 2023?

    Total revenues were $311.1 million in the fourth quarter, up 43.2% from $217.3 million a year earlier, and $1,082.6 million for the full year, up 32.0% from $820.2 million. Growth was driven mainly by product revenues, which rose 44.3% in the quarter and 34.0% for the year, reflecting both higher test volumes and average selling price improvements.

  2. What is Natera's 2024 financial outlook?

    Natera anticipates 2024 total revenue of $1.32 billion to $1.35 billion, gross margin of approximately 50% to 53%, SG&A of $630 million to $650 million, R&D of $325 million to $345 million, and net cash consumption of $50 million to $75 million. The company reiterated its expectation of a cash flow breakeven quarter in 2024.

  3. How did gross margin change?

    Gross margin was 51.4% in the fourth quarter of 2023, up from 41.4% in the fourth quarter of 2022. For the full year, gross margin was 45.5%, compared with 44.4% in 2022. The filing attributes the improvement to higher revenues and continued progress in reducing cost of goods sold per test processed.

  4. What is Natera's balance sheet position?

    At December 31, 2023, Natera held approximately $879.0 million in cash, cash equivalents, short-term investments and restricted cash. Total debt was $363.3 million, including $80.4 million under a UBS line of credit and a net carrying amount of $282.9 million on seven-year convertible senior notes with a gross principal balance of $287.5 million.

  5. What strategic developments were reported?

    Natera acquired Invitae's reproductive health assets and received Medicare coverage for Signatera in ovarian cancer and neoadjuvant breast cancer. The filing also notes a $10 million upfront payment to Invitae in January 2024, with up to $42.5 million in potential milestone payments.

04—Continue

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