NVTA - Earnings call transcript Q2 2022

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Operator

Good afternoon, and thank you for attending today's Invitae 2022 Second Quarter Results Call. My name is Jason, and I will be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. [Operator Instructions]. I would now like to pass the conference over to our host, Hoki Luk, Head of Investor Relations.

begin. may You

Hoki Luk

and us operator, everyone. you Thank Thank our good XXXX joining for call. second for you, afternoon, quarter results

today CEO, and Roxi are and us CFO, Wen. Ken our Joining Knight; President

like to on results, realignment, services, about future strategic make that our Before we and call of begin, remind the future model, that this including various historical, not operating business business financial expectations you growth are our vision and we remarks those company's I'd operations reduction the pipeline burn within in Securities future products, Act. is in harbor and and timing, Litigation the infrastructure the safe It investments Private difficult constitute product and of the rate, and statements the to provisions Reform meaning our of and performance We legal our actual of assume, any other to information don't demand actual could our additional speak investments, our our These as in that business statements from materially we or predict section hereof. the results among date materially company outlook. settlements. differ for Statements future factors on acquisitions, for to cause refer conclude Risk stated you forward-looking services, particular therefore, things, Factors to our that titled on current additional could differ accurately only from expectations. recent the results most XX-Q, forward-looking restructurings

principles of key release United to as the To the you non-GAAP GAAP statements as can by of measures. monitor which generally non-GAAP you the in or our quarter. the deck, appendix our visiting accounting in access we review of press ir.invitae.com. the are both press section slide have consolidated to well financial we metrics release available earnings on website consider to We listen Investors encourage includes company's States which accordance reconciliations, you prepared at several you encourage As which in and financial and today's the with our GAAP, conference results call, to and accepted supplement available, in the growth commentary

in on July. post plan, outlook. second to We financials, have key continue already our and will strategy key provide by preannounced we realignment developments Today, our corporate followed some and metrics recent our published discuss announcements financials, quarter our along with the

With to proceed Q&A. turn the call will We that, then I'll to Ken. over

Kenneth Knight

Hoki, was you, you us a to and today. extend our the company's thoughtful and joining to we thank quarter the After communicated that Thank of results, the for all translation into XXXX, July operating end intent realignment runway our cash of first our plan.

ago. the are the that now With had work we accelerate actually further ready begun plan in realignment to place, months

We are pleased all cash necessary to see were improvements. margin, and operating that our gross demonstrating second quarter management non-GAAP expenses

direction, trailing in trend overall on the metrics our in ability delivered execute has confirming importantly, XX-month a plan. consistently More those our positive to

will our a of Invitae in focus many provided belief that are committed execution one right top for of we and goals the that vision along continues who the remains And share to to Having our team sheet. balance take compelling provide financial those that assets, expected management's also our solution. have laid looking investors And option priorities with finding achieving which our debt found out, continue opportunity discussion to strengthen Our mission have potential. of win a recent said and our that, most includes in optimal to parties in obligations increasingly plan, believe proposition priority. throughout various with for will the assets these process, an valuable our challenges, we be we and for this the future. examination team in Despite our the our for to and XXXX, we that due have us the events close position to

forward. on would to like to our strategic going I focus move Now

information, utilizing this digital combined able more and Under premise, support of of partners, capabilities be providers to to while basis our solidify defensible our patients, further of health strategy others. continue we and to see insights our system to and that is physicians, continue providers. complete that headed, and we value will from leading us to That transforming for and provide will as leveraged We a and tools be and for position differentiated research, health. sets potential deliver use be patients data, payers, more our care These data will that puzzle, the genetics. true and testing pharma and space, will pieces the more apart results are leading deep where for vision the treatment our to in the better unlocking

X the we'd endorses colorectal on guideline the than our development, this these on population the now that of in recently and for we to updated efforts germline the cancer. which study. Invitae patient all areas, collaborative with few touch our change, like team. double. of thanks with clinical beginning The guidelines, cancer NCCN universal developments has have in U.S. research alone, published more cited will patients genetic guidelines colorectal a updated Next, also testing advocated testing Based this estimate positive for Notably, germline to specialists

to patient to are breast, prostate that change cancer population. well lung we that larger do have contributed glad and the same additional We efforts and have this underway are for

and clinical and clinical of combination offering the is patient at other which genetic to of evidence will blood via better we which prognosis selection value our delivering as assay, more more the patient-specific somatic our for MRD continuing and making number testing And therapy somatic for with information provider both these that adoption thing We and major outcomes. and profiling, monitoring each oncology, further vital tumor assays, ctDNA and leading a germline more the is actionable as genetic monitoring promote to generate potentially year same In results, exciting along leverage we a The that also and the growing awareness. yields is of sample an great implementation Invitae guidelines, tissue Monitoring provider and call to to and presented is PCM. perform are increasing about efforts utilize earlier germline or in indicate in supports well raise our Personalized to portfolio meetings will testing. Cancer which detection be diagnosis, technology and panel ASCO studies ongoing

For patient same response. detection tumor benefit example, a with from and frequently can planning, measuring cancer profiling biomarker that for also needs advanced treatment treatment and patient

to important bioinformatic and our insights medication. tissue clinical Pharmacogenomics prescription input one adverse to reactions platform availability. via for beneficial This And adding our potential So that have patients results. with personalized X in allows offering particularly is we are approach sample limited reduce the

best service believe unique combined based and ease a of distribution We has channel. commitment Invitae provide on customer on relentless to continue focus that to our our proposition offerings, the our our use,

Speaking have of we sales our strong team a led channel, leaders. highly by commercial experienced

Cancer talented the a large We of NCI and work Community counselors presence same with Centers. the Many patient. relationships in most with we oftentimes genetic direct who serve have also have oncologists

health XXXX. testing. continued lifestyle the risk We clinicians to physician workflow of example history. penetrating are for With us strong assessment, our actions family a the seeing market, expect which choices, Gia early patient tool providers' from the provides with our journey, somatic assessment is Touching and our algorithm same patients' these quarter we second the the in or chat as our and relationships genetic increased monitoring digitizing interactions competitive as the and record, further an on quarter in this as then efforts and such of adoption guide information stages health in such edge. patient-driven We're Gia the chatbot, for to patient's our offers for risk uptake the XX% concrete in offer

change data have partnership, to a we optimal Worldwide insights Research are a including Worldwide its based patients network has sharing, better. particularly patients institutions, pinpoint need in when faster our for almost Through after at prevalence, X outcomes rare reality, to many information sponsors patients belief value Rather Gia the continues demographics in effect enables as for Worldwide through recruit testing would as the through benefit a Invitae. disease This have to discrete this test whether patients. epidemiology well. one-time patients, initial diseases the long-term well their a we number study have a solidifying We available point different do interaction, importance and can made I This to risk as our also starting the the with Longer-term, we or for Currently, providing a view and patient and life-saving uncover forming access of to that with their formed Trials of potentially effect assessment first Organization. the test the of network interaction, a patient than it new not serve locations on their with they incidents, time Clinical create. experience Incorporated, journey. of the rare million to be and In to a Contract partnerships emphasize trying treatment. data data like their critical relationship of rest relationship help aggregated

and addressing such stories trial patient time to their of through stand is groups, provide goal patients, journey, step walk our to to results. the support or to it clinical optimal second for searching these ultimate us take needs we being hand there, with confidence important get to providing strategy these therapy advocacy finding their to and addition internally over Roxi call holistic the more to of options intend patient and test every other working. now other quarter In while a opportunities, offering to solution we that accumulate connection the hear patients by I'll as in treatment details give along And our alternative by for that way. us the the continue the to us will

Roxi Wen

approximately second XX% and $XX and the RareDx year, This from and was we and platform biopharma the million, over NIPS, products, Carrier reproductive $XX includes data a women's Diagnostics, from data million year. our $XX grew quarter breakdown PCM Thanks, last the XX% revenue over selection, generated growth testing, from million prior prior follows: therapy a Ken. over XXXX, XX% and and including programs. QX, of $XX a was $XXX other approximately approximately testing XX% growth year, analytics, certain other offerings, including million oncology, growth data-as-a-service approximately over revenue tests, last management, pharmacogenetics, In including germline million as representing health of Companion approximately

basis the quarter, quarter second year. XXX this non-GAAP margin first a basis same over was point improvement a quarter of year's XXXX XX.X%, gross and improvement this point For the of from

our the efforts year to in able Our positive operations. improving pointed thanks the trend, of the by first or Non-GAAP product confidence measures. of communication being in expense since prior to of cost parts $XXX productivity live was revenue year. compared steady of business other XXX% And to operating in our the achieve and quarter beginning among many $XXX in revenue design, our operations or the and of million in encouraged pricing, we're XXXX revenue million of to XXX% XXX%

annual operating compensation from expenses businesses second stock-based acquired include quarter The and costs grant. the

As we've level. first call, stated on plan operating our hold to expenses our at a stable we quarter

operating compensation, non-GAAP revenue of Aside percent the lowest quarter from expense our adjustments stock-based as XXXX. a this quarter in was fourth of since

communicated figure in July reducing office-based certain well by geographies. will and of forward significant reduction going services as third-party our including multiple that further exiting As and as on businesses call, result we be headcount, lab a initiatives, as

with included our distributed exiting we're business, plan. oncology moving Speaking which along businesses, of kits certain our

may of which having productive the business kits several has different offerings, parties. with As discussions aware, we're you multiple be

certain to taken have our in quarter, decline goodwill lower we plan intangible we as In the significant that third a stock to large market relation performance. note financial to this also the price capitalization write-down and quarter adjustments the a expect non-cash sustained than resulting as well want projected in also announced to make July. from in assets to We realignment

reducing compared Moving million to QX June by and in XX, We're $XXX marketable equivalents, million in $XXX burn March million on in position. $XXX encouraged the totaled QX restricted made burn. at 'XX XXXX, million cash million to progress Cash, and XXXX. cash compared second our to was our the Cash quarter we've cash securities cash 'XX. XX, $XXX in $XXX

both Now the that share more their Under partners, to a the and we transparency serve has more growth also offer patients who in into nicely. the balance continued number intended Similarly, stepping on our growth, active consistent momentum to are and business the data active portfolio our ones of available expanded perspective accounts are QX. performance. metrics and

quarter. new flat Our vitality remained previous product the from quarter-over-quarter,

the reminder, revenue by a As years. contribution over this represents a X products metric new

due from XXXX, As in primarily number in we a previously to new communicated, part of saw product in pullback XXXX that and the disruption. resulting COVID launches slowdown

either from revenue launches revenue year, ordering second new by going of Revenue quarter the period due number the preceding and product lower contribute in which in revenue. a quarter to total company health our average remainder now have will first driven periods. measured future on number or the has fell have by businesses, This the the product patients to number the of We in of the of points. per patient planned to international for price for divided our higher quality and largely growth quarters, even improve exceeded by recovered women's efforts which

to operational excellence. Moving

place We all margins, to operating continued improving taking and flowing are in hold categories, initiatives put cash seeing we've our are through are cost flow quarter-over-quarter in improvement the metrics. expense as our productivity, already profile

accelerate changes, drive pleased from reflecting to we effectiveness we're the initiatives see ready here. to positive As to the our of further are previously and ability team's and mentioned,

was on guidance. for financials Moving Revenue half million and the $XXX XXXX. first to of

the revenue from exited the half. realignment indicates businesses Our in to be plan impact second

the As XXXX expect first to compared in resulting full such, be the double flat to second digit to we to XXXX. of year grow half the half, low in compared revenue

non-GAAP new We plan revenue businesses. not this exit our assumption be a to XXXX adjustment communicated as the of such, this growth And will are range in also due to change. mid-teens. long-term revenue, with expect first profile line range gross XX% XX% we to our to year roughly our the have The XX%. Offsetting between that is the XXXX. range revenue half with year to business XX% the margin full a to as certain XX% of would cash remaining exits margin XX% in improvement the Similar to previously expect in XXXX. our about of recur we the in towards is gross of breakeven. This of to flow continued and exits, result set the gross will XX.X%, margin in margin growth gross non-GAAP our of baseline our for year throughout Non-GAAP non-GAAP of be

margin over This initiatives will removing on to our time. baseline gross in further along them such, revenue As lead continuous other gross quality and higher higher improvement focus is margin expand a to with anticipated our XXXX.

of Lastly, including our guidance million $XXX $XXX we're maintaining XXXX $XX used which realignment activities, to severance. to million cash the cash to up burn be includes million, for

XXXX, million up range I'm to cash be includes cash $XXX burn to Ken. With for to in $XX to We to also our continue anticipate be to used million the turning back of realignment. $XXX in million which that, the call

Kenneth Knight

you, Thank Roxi.

As summarize we close I I would thoughts. the call, with a few thought

First mission and have and passion not Invitae mission the foremost, to changed. pursue that the people our of of

Q&A. the instantly and pathway applications, ever through with driven that require focus. in find to inform This realigned all and testing, advancements business latest I of and the stand improved results at the broad that that the are, guide has we'll over we tools research touch by history. to We We concern appreciate transition a actions company's With when now patient our imperatives. and transformative day the incorporate for operator that within it. for tools which the moment the ourselves after than this risk, test however, can changing closer turn are can every and strategic on all focus call getting integrated medical and offer. a to pivotal an are equipped are deliver We amid providers are we who community that, executing unwavering patients the will treatments

Operator

[Operator Instructions].

Savant comes with Our first Stanley. Tejas from question Morgan

Yuko Oku

for on Yuko is Tejas. This

as in considering future? to the funding you you sources are 'XX, non-dilutive such something of alternative Is explore that your financing. royalty While may this of runway some the extended peers

Roxi Wen

question. for Thanks the

And our of margin encouraged results. we is, We initiatives last end about And we our very cannot seen by the in experienced the would I a cash we've we're quarters number extended some be specific you in we have ongoing cash having. conversations success place over signs early are of what we -- of flow, the cash say as have and put the very expansion we're mentioned, management XXXX. through runway since

the as having open-minded with and a confident multiple the forward Many look to more the we our runway ability -- to meantime, have to business. and very stronger In with are build cash we conversations, we're about balance update solutions table, specifics. we shareholders strong sheet put and we're extend our on together build we from So here. investors are a execute options plan and to and yes, flexible

Yuko Oku

over over a severance associated expense activities have then Could follow-up. help XQ? million incurring the you cash realignment in And us it. of -- the of I with Got XQ think separate $XX about pace and

Roxi Wen

want you million $XX the we estimated? clarify, to the Just of cadence understand to

Yuko Oku

into Yes. Like equal or it quarters? go should across be roughly XQ most both of should it

Roxi Wen

Yes. executed, details to to -- are related It's visibility expenses to. up the line, more give difficult timing to this -- being people's in out. guidance we But still the million on a these time cash are is the have things the $XX because exact precise of of time of lot clear worked half you being second initiatives exit where

Operator

comes Our Souda SVB Puneet from next with question Securities.

Puneet Souda

Yes.

I'm on first that going you there expect to It, overall, you're mean, now? appears of step-up is I is really I in mean, just the all a So this be be from I want than of XXXX a slightly parts you're we is -- through one I just growth -- reset obviously, very to based you your expecting better should right in guide. flat? But sort can is to that maybe just just that XXXX guidance it or that. it versus terms in it to XXXX clear, net-net. the growth a clarify moving top mean, on Could quantify looking seems there of but baseline, at based the there like -- on understand in what wanted slide,

Roxi Wen

Yes. for question. Thank the you

So XXXX, a moment. range we're providing at the

today, seen baseline new exit we As XX% XX% reoccur of a chart year we then in new the we range. XXXX. in to And probably from -- the baseline, this with have after that presented our to you've -- that the not XXXX realized range XXXX revenue of XX% in to XXXX XX% we'll XXXX expect approximately grow

this -- a XXXX, So we a firm not providing that it's guidance for -- range estimate. we're it's

Puneet Souda

business to have Okay. size efforts the in the the on where of for and reduction comment efforts hereditary just the us you these understand I help -- you what wanted but on to margin? of outline clarify around could just gross the oncology you -- organization having And of were workforce is business, as extent, you then made piece, side to us And do commercial margin. I also a I referring maybe of the implemented, mid-teens gross been know business? wanted clarify, sort side that the what now mid-teens just exiting oncology to kit

Kenneth Knight

with at So call. this as strong look still Maybe of Ken. have the a commercial if question. team, said the our size very I our is you the we I'll team, we team, commercial in at start When commercial look

part, oncology are just for strong the we team, as Our most as ever.

product We countries about made of territories invest U.S. the The exiting were exiting commercial specific or back continue July. that or outside exiting we either oncology related to in talked commercially we our as channel. in a line changes to

most strong, to continue for especially commercial our So oncology, we is the there. in part, invest and team still

Roxi Wen

the gross countries well terms comments margin in the part XXX for add will about business, -- kits IVF Yes. question of and on distributed also exit yes, oncology your Ken's margin. exiting business. as -- includes the business The our we're to about as I of mid-teens the

business level. about the of margin gross aggregate in parts all to So exit mid-teens

Operator

Our question Brian comes with Weinstein from Blair. next William

Griffin Soriano

Brian. for on Griffin is This

second the versus versus half, But the give revenue million on And exited on half, half QX the businesses how second a second guide around half. that how us the about in half color second more here flat so in you're pacing just of can you off rolling bit should we first somewhere ? the Just think $XXX in about little thinking QX?

Roxi Wen

Yes. Thank you the question. for

business reasons. the of expect will for also QX. mentioned, to certain start seasonalities we general is, exit primarily a the business QX. in couple in than in We'll be of will higher as And QX One impact play also QX you in. So seeing will -- felt our be that exit

would a So be we being -- QX. have higher end up -- revenue -- QX than

Griffin Soriano

of clinical succumb wrong a restructuring Ken, the if had it's or just mean, you practice? few I to testing Okay. widespread just to do Invitae issues Is some a kind And Invitae, maybe things days last to genetic But for announcement. demand I then at really that adoption really the structural how overcome the went at recognizing financing, into early the early beyond really since that core. lack maybe of like point here? guess, of you iteration of kind those of

Kenneth Knight

that it's to what, Monday kind focusing a do do know And our looking X and independents. a much year. ensure way or into toward would establish we journey , too you on it's back new drives morning that the basically back capital I era of One that business quarterback fundamentals. we're Well, tough Invitae. X to say is go a on we that in as of it really cash to to operate

we the in be long our -- invest focus positive, ourselves invest on and we long-term. business And because want when to in in for able to cash that's to getting flow the so

our prioritization that had to offshoot going we to right into future. and had started to really Secondly, option we kind do focus extend internally then this third earn about and to deliver around the better plan I of not opportunities execution, be that going is result to I prioritization, as our earlier runway, deliver. is team an And that, believe And our we that execution is really was to in items at think that we a focus invest we codify believe found can cash we continue on a I and to talked that, the to to and we as that have. our looking we how

see Invitae. I'm forward, I and this are tester, opportunities leading testing a this for in organization looking we that's still backwards, And So how genetic in industry. the looking not

like And so we chances. our

Operator

with comes from next Delahunt Goldman Our Sachs. question Dave

David Delahunt

year math Am my XX% XX% I thinking flat about followed if in put us then to that a right? increase next about by XX% So is in decline 'XX 'XX. right would a here, at

Roxi Wen

Yes.

about thinking that You're right.

from We in given total in exits the for expecting stabilization and have of perspective business. roughly the revenue of XXXX, a we're the growth are to seeing remainder that a XXXX are year planning, the also we

David Delahunt

so And when expect the main to sources you longer-term? what out that there do get growth we of be

Kenneth Knight

I are aggregation of mean pursuing, I scalable and testing think see and ability that's opportunity with our continue a serve growth market our customers growth couple of things going menus we is to we we better to growth. going to fuel patients, talked have to have and to workflows better opportunity long-term scalable ability about to really and that bring it our that a our an currently we're the to

Our core well. testing business has great opportunities to grow as

our be product than hereditary As do offering, that can going with we And to the I before. help oncology journey. with patients better able their portfolio that combination offering, germline throughout of to talked entire And combining be we'll ever is our our about with we cancer PCM, strong. had the somatic cancer

going together it with pieces for put of puzzle be the network well. data core our and then growth final how be our the opportunity part we the is our piece is to to So in And business. transformative going our patient the our about future, we talk of that's testing see as growth growth of we all business

to that's we're got the and growth still while And into on of future. containing our cash. to X grow why continue So managing pillars bullish costs the business are opportunity we we've

David Delahunt

expectations? And more then any the Great. conservative puts margin takes gross and on

Kenneth Knight

that? When think mean you you I what say lose you. do conservative, by more we

David Delahunt

I'm you can expecting color no, margin? you're us yes, -- any for any just Yes, what Just -- additional give your on here. gross

Kenneth Knight

that. and expand for we've we've about to think opportunities can we last Roxi terms it. is bit that the see things that costs little intentional what quarters it and see revenue, how mid-teens we obviously, in And exit over shown of I exited more the our gross aggregate in is several some margin. of done territories businesses chose gross that like being a then were and that kind in managing and businesses the with you through margin, managing of laid We just out we

our have quality journey potential improving positive gross So focusing investing and margins into continuing see short-term higher a getting why efficiency better our margin revenue, upward gross we long-term. and growth the trajectory is on in and cost that and our on and the businesses higher into

And so and forward. see we're how going what we that's signaling, that's the business

Operator

from next Our comes question with Piper Westenberg Sandler. David

David Westenberg

to oncologist and different the maybe to want guidelines testing give and actually OB/GYN? versus is of can is or testing go increase about the primary by an the synergies on oncologist then CRC. care testing the NCCN germline angle a the done long-term doing I versus going and back that talk a future? to potential that germline And there often to you opportunity with MRD some the that? physician germline how Could on us reminder in And then of you talk about the

Kenneth Knight

Sure. Yes.

has really and guidelines been care cancer thing of for, open something for advocating up patients. to the it's been do. This So and colorectal for the testing genetic patients. those germline right the It's we've utilization best the NCCN adoption

And it. population a having as so be patient we're result And about we genetic extremely we excited doubling germline would see availability conservatively who these of testing doubling, for as guidelines. it, see the

guidelines is But advantage that. an that so accelerator can call. the the patients how in to and changes of serve positioned who's more are, for into going probably to to than we that and get on well take works And opportunity it's the those out, order are we

David Westenberg

Got it.

Kenneth Knight

playing patient therapies see out things, about that we PCM talking the started the opportunity need all with and they You several to obviously, cancer with how needs monitoring a is, right the we operate knowing be as of opportunity to DNA and as body gives selected how therapy the best patient's getting the them. believe guided. prescribed for tumor them the And well

therapy And become tumors to the can sometimes needs to the however, change resistant treatments. the

once not bloodstream a is through it's not we patient a And but the helping monitor it's patient ctDNA looking remission, ability at an initial then tumor circulated continual guidance of in that of the their recurring. to detecting kind through so therapy, whether or the also in have just And is journey. and

prognosis so early with are detection. diagnosis and And the better

And so super with this is that also to access come getting future. oncology not these does going we We an a believe work important treatments body for for compilation be of oncologist. And to a through always work that's to the counselors. genetic patients have of

our a patient is in can had We with work any variety that and of the we in OB/GYNs. also way We how services ways. access serve get to to they

So is going for the powerful -- to combination patient. but be the

David Westenberg

it. particularly then just as it. didn't I on XXXX a the a have cash -- we on runway, to But pre-announcement your refinancing right loans. is today, a now want term quick talk I'm discussed Got I maybe you time, you're well? believe And to understand extend you for that's good because like if you call, the look if that not XXXX. map. -- conversation as not it now does did ready follow-up, curious the you you if just to of know last weren't -- or talk the Appreciate about And really road

Roxi Wen

we we is as a table, we've right, very with be the the performance. we're responding having of on are, moment plan, we something And with we of is trajectory the -- the margin, to understand this once to -- of again, are important have the It's loan at solution And by this is, stock And Ken lot on on we're both done term lot we're cash the overhang a can working, But a I the seeing, of impact information the mentioned, working debt our XXXX seen with with very mean having folks address this we to but pretty realignment mid more conversations. specific. have conversations open as performance and encouraged, we'll gross Options XXXX. are management. share. it's to improvement update priority, very something folks as again, time towards us, we question. hopefully a been we've maturity What we've convert. well the

Operator

with Our next Daniel question comes from Brennan Cowen.

Daniel Brennan

further, us even right help plans, certainly in through meaningful think could direction, you cost-cutting reduction And Maybe Roxi, the maybe to further, which get us the a stands certainly peers, or point OpEx, or were step like if to metrics just there? a the great of us It strip And mix. Ken of gross for businesses, gross go start versus the that sale walk potential got to particular, to if to maybe R&D, or business could that so, kind through low-margin while go potential structure, of maybe just potential Great. given within particularly wondering further we and on what look higher? should we margins? there's you of right even you your cost away out I'm some you on the are your the a there in you kind sounds if is as and the what's like to go your your on looks what R&D, your us kind of high can I guess, is levers? at just then margin the

Kenneth Knight

I'll a take take -- run that. me at Let

all, it we we aren't clear line each cost one But going talked through announced that very when R&D July, obvious were when is go of about the we OpEx larger the our First table. of that to items our kind expenditures. the cost was improvements in it pretty reduction, of in of we

or last a either to We those weren't they we to for positive. worked the on to flow opportunity, And the to territories holistically. this our didn't of looked ability take be same We really now. over long. we going about cash kind fitting this of our the about us It that too smart was or going this patients at fact of had up a so and about -- it right this. feel we and the like just we impact to clients, to serve went we exit. R&D targeted just do to just long-term result businesses it intentional we make time, And those darn wasn't the business We they thoughtfully at we businesses try didn't were objectives our really material there's was really It period and as the minute. we going there be At weeks -- to a we months. -- were good pretty targeted was how get the take path feel to

we And what's had looked we did we about that where when element implication we in decisions landed and we so come an as we at. the So tell by going happening like through an -- revenue. without these on 'XX of time at in talk we And not this. can of half second into going 'XX,

improvement those the of health at we cycle, business for when the so all the saw cost, of gross impact we inputs. the the the on looked on company health and longer-term with margins, revenue And

a execute. front could landed us. think feel we place time. execution this question we it's space, we landed now right in just right to is have so the of at us the really hands, just I I'll And it for -- we farther? we our have good I say at gone think we at And The in is, of

And era And so and going extend toward pretty we're will about of flow can term. the excited what near we when in we that, cash control. for we're we do -- deliver positive runway path a cash we new opportunity Invitae. the control And the think business the to

Daniel Brennan

across grow rare the those disease to range? end level. women's the blocks, some expect Ken. Thanks, like a to data or little of kind which like building health obviously, you target maybe like and do just prior would are of down maybe anticipating, walk cost-cutting, of And if businesses, maybe on end oncology to the this it down the would, top hear like high rate and XX% versus market, through towards that do you Any has be No. to would in low confidence the growth the in addressable there's that like think of great you like the the line of XX% you those and or us mentioned the and are like that losing from color XX% brought basic which in get But view in some you the or you'll which visibility Maybe taking the factors markets? XX% grow color you on could that growth help support particular, you your those share? of Like line, share segments Great. as across to XX%? say,

Kenneth Knight

business look health when -- health themselves, company, so Yes. about we and at kind year-over-year of just total we look that. at lines -- I QX, grew was kind outpaced women's we our and our quarter-over the women's mean than -- higher of just business XX%, the revenue

Our getting projection our the growth. of bit have was lower we're get in number, the excited data about starting but business opportunity data mid-upper long-term launching. just Oncology corporate a business. into of transformative than teens And started, and to we it's that we're is little total products

coming half assays in somatic is PCM of year. have second getting We the just started. the out

future oncology bullish growth. are the we on prospects business our and So or for cancer hereditary

So the health the there's that is decided solve on revenue outsized frame were at the see the to business. XX% quality we health was that sure of we we our to that current that when to not really delivering XX% for nothing to for decided of business, depending make not growth solve the would time we we -- not achievable. that say And

out of we're healthy very a and And to have products do be and them. any way. growth into abandon competing great there by and we fighting going the plan so but means business future, no expect great that in that to great responsible it that we're don't growth, going to we people for relationships And and is down we

do I mean our also other, to grow moment the or the to the think cash I and on a talk could to doing we an signaled both get different team to we could XX% trying and and this improvements to an delivering management? it's company, we the growth the I about, to than Maybe well the moment it's And within for cost for were so upon or this XX% our maybe XX% hit our we're so us. past, that deliver management. XX% capabilities in and is growth, decide and past cash one in healthy now what an if continue yes, growing intended is business. we've but we

Operator

The Our Company. comes next Benchmark Bruce question Jackson with from

Bruce Jackson

this you next do have a -- CapEx year for year? Could target and

Roxi Wen

target, burn our not Bruce, as CapEx of it's are in have thank part you target, burn but the is cash -- we CapEx cash included guidance. issued for and of our not question. and part part specific

Operator

There are this further waiting questions no time. at

call remarks. I'll for back management to team over So closing the pass the

Kenneth Knight

have to to us our remain for execute everyone joining about you, ability market the team's the thank reach on all. positive Thank holds continued I and opportunities our what rest Relations operator. a Thanks We And day. please to our for appreciate want have future I Invitae, team. of for company. any the and questions, call today. support, out if great you Investor your your

Operator

Thank conference you the concludes participation. call. That your for

You now disconnect. may

Invitae (NVTAQ) 10 Aug 222022 Q2 Earnings call transcript