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Natera 8-K Report, Financial Results (Aug 8, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 8, 2024
Period End
August 8, 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 August 8, 2024. Cited figures are marked; the original filing is the authoritative source.

Natera, Inc. (NASDAQ: NTRA) reported second-quarter 2024 results on August 8, 2024, per Item 2.02 of this Form 8-K, with the press release and investor presentation furnished as Exhibits 99.1 and 99.2.

Total revenues were $413.4 milliona, up 58.1% from $261.4 million in the second quarter of 2023, driven by a 59.3% increase in product revenues to $411.4 million. Gross margin expanded to 58.8% from 45.2%, and the company reported approximately 760,300 tests processed, up 23.2%, including about 125,400 oncology tests, up 50.2%. Management cited positive cash flow of approximately $3.3 million for the quarter, and the company said cash flow tailwinds included incremental cash receipts on tests delivered in prior periods.

Loss from operations narrowed to $43.9 millionb from $112.4 million a year earlier, and the net loss was $37.5 million, or $(0.30) per diluted share, versus $110.8 million, or $(0.97) per share, in the prior-year quarter. Natera held approximately $887.1 million in cash, cash equivalents, short-term investments and restricted cash at June 30, 2024, against total debt of $364.0 million, which includes a $80.4 million UBS line of credit and convertible senior notes with a net carrying amount of $283.6 million.

The company raised its 2024 total revenue guidance to $1.49 billion to $1.52 billionc from $1.42 billion to $1.45 billion previously, and narrowed gross margin guidance to 54% to 56% of revenues. SG&A guidance of $700 million to $750 million and R&D guidance of $350 million to $375 million were unchanged from the prior update, and net cash flow guidance was maintained at ($25) million to $25 million.

02—Key points

Key Highlights

  1. Total revenues of $413.4 million in Q2 2024, up 58.1% year over year, with product revenues up 59.3%
  2. Gross margin of 58.8% versus 45.2% in Q2 2023, helped by higher revenues, lower cost of goods sold per test, and incremental cash receipts on prior-period tests
  3. Approximately 760,300 tests processed in Q2 2024, up 23.2%; oncology tests of approximately 125,400, up 50.2%
  4. Positive cash flow of approximately $3.3 million in Q2 2024, the company's second consecutive cash flow breakeven quarter per its investor presentation
  5. Net loss narrowed to $37.5 million ($0.30 per diluted share) from $110.8 million ($0.97 per share) a year earlier
  6. 2024 total revenue guidance raised to $1.49 billion to $1.52 billion; gross margin guidance set at 54% to 56% of revenues
  7. Cash and investments of approximately $887.1 million at June 30, 2024, against total debt of $364.0 million

03—Questions

Frequently Asked Questions

  1. How did Natera's revenue growth compare with the prior year in Q2 2024?

    Total revenues were $413.4 million, up 58.1% from $261.4 million in Q2 2023. Product revenues rose 59.3% to $411.4 million, driven mainly by volume growth, average selling price improvements, and cash receipts on tests delivered in prior periods.

  2. What changed in Natera's profitability and gross margin?

    Gross margin rose to 58.8% from 45.2%. Loss from operations narrowed to $43.9 million from $112.4 million, and the net loss was $37.5 million, or $(0.30) per diluted share, compared with $110.8 million, or $(0.97) per share, a year earlier. Operating expenses rose 24.4% to $287.1 million, mainly from headcount growth and higher consulting and legal costs.

  3. What is Natera's updated 2024 financial outlook?

    Natera expects 2024 total revenue of $1.49 billion to $1.52 billion and gross margin of approximately 54% to 56% of revenues. It expects SG&A of approximately $700 million to $750 million, R&D of $350 million to $375 million, and net cash flow of ($25) million to $25 million.

  4. How strong is Natera's balance sheet and debt position?

    At June 30, 2024, Natera held approximately $887.1 million in cash, cash equivalents, short-term investments and restricted cash, up from $879.0 million at December 31, 2023. Total debt was $364.0 million, including $80.4 million under its UBS line of credit and a net carrying amount of $283.6 million on its convertible senior notes, which have a gross principal balance of $287.5 million.

04—Continue

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