Natera (NTRA) Misses Q4 EPS by 27c, Revenues Beat; Offers FY21 Revenues Guidance Above Consensu

February 25, 2021 5:44 PM EST

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Natera (NASDAQ: NTRA) reported Q4 EPS of ($0.89), $0.27 worse than the analyst estimate of ($0.62). Revenue for the quarter came in at $112.4 million versus the consensus estimate of $106.62 million.

Recent Accomplishments & Highlights

  • Generated total revenues of $112.4 million in the fourth quarter of 2020 compared to $83.2 million in the fourth quarter of 2019, an increase of 35.1%. Product revenues grew 43% over the same period.
  • Generated total revenues of $391 million in the year 2020 compared to $302.3 million in the year 2019, an increase of 29.3%, exceeding the 2020 revenue guidance range previously provided.
  • Processed approximately 295,000 tests in the fourth quarter of 2020 and 1,026,500 tests for the full year 2020, compared to approximately 209,400 tests processed in the fourth quarter of 2019 and 804,300 tests for the full year 2019.
  • Announced positive SMART trial results, exceeding expectations in largest ever prospective NIPT and microdeletions study.
  • Signatera pharma business accelerating: greater than $65 million in 2020 signed contracts.
  • Presented successful Phase 3 Imvigor data with Genentech, in first-ever phase 3 clinical trial validation in minimum residual disease.
  • Commercial launch of Altera tissue based comprehensive genomic profiling, expanding Natera's oncology total addressable market opportunity.
  • Commercial launch of Signatera in immunotherapy monitoring.

"Q4 was the fastest net unit growth quarter ever at Natera, and we delivered revenues significantly above our previous guidance. I am proud of the way the team has been able to accelerate the business even in the face of a pandemic," said Steve Chapman, Natera's Chief Executive Officer. "We've continued to drive growth in women's health while achieving major coverage and clinical trial milestones. In oncology, we completed the build out of our commercial team on an accelerated timeline, launched a completely new product with Altera tissue based comprehensive genomic profiling, and launched the immunotherapy monitoring indication for Signatera. We are in a strong position to deliver on a successful 2021."

GUIDANCE:

Natera sees FY2021 revenue of $500-525 million, versus the consensus of $469.31 million.

  • Natera anticipates 2021 total revenue of $500 million to $525 million; 2021 cost of revenues to be approximately 47% to 52% of revenues; selling, general and administrative costs to be approximately $430 million to $450 million; research and development costs to be $160 million to $180 million, and net cash burn to be $230 million to $250 million**.
  • * Gross profit is calculated as GAAP total revenues less GAAP cost of revenues. Gross margin is calculated as gross profit divided by GAAP total revenues.
  • ** Cash burn is calculated as the sum of GAAP net cash used by operating activities (estimated for 2021 to be between $210 million and $230 million) and GAAP net purchases of property and equipment (estimated for 2021 to be approximately $20 million).

For earnings history and earnings-related data on Natera (NTRA) click here.



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