Invitae Corporation

Good day and welcome to Invertay's first quarter 2022 financial results call. My name is Brica and I'll be today's event specialist. We will have a question and answer session today. And to ask a question, you may press star followed by one on your telephone keypad. If you have changed your mind, please press star two at any time. And with that, I would like to hand it over to Jack Finks. So, Jack. You may begin when you're ready.

Thank you, Brika, and good afternoon, everyone. Thank you for joining us for our 2022 first quarter results call. Joining us today are Sean George, CEO, and Roxy Nguyen, CFO. Before we begin, I'd like to remind you that various remarks that we make on this call that are not historical, we know is about our vision and business model, future financial and operating results, expectations of future growth, and reduction in burn rate, future product services, our product pipeline and their timing, and investments in our infrastructure and operations constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act. It is difficult to accurately predict demand for our services, and therefore, our actual results could differ materially from our stated outlook. Statements on future company performance assume, among other things, that we don't conclude any additional business acquisitions, investments, restructurings, or legal settlements. We refer you to our most recent 10-K, in particular the section titled Risk Factors, for additional information on factors that could cause actual results to differ materially from our current expectations. These forward-looking statements speak only as of the date hereof. As you listen to today's conference call, we encourage you to have our press release available, which includes financial results as well as key growth metrics and commentary on the quarter. To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States or GAAP, we monitor and consider several non-GAAP measures. Non-GAAP measures may include cost of revenue, gross profit, operating expense, including research and development, selling and marketing, and general and administrative. other income expense net, as well as net loss and net loss per share and cash burn. We exclude from our non-GAAP operating results as applicable, among other items, amortization of acquired intangible assets, acquisition-related stock-based compensation, post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's business combination, adjustments to the fair value of certain acquisition-related assets and liabilities, including contingent consideration, and acquisition-related income tax benefits. We exclude changes in marketable securities from our non-GAAP cash brand. We encourage you to review our GAAP to non-GAAP reconciliations, which are available in the press release and in the appendix of the earnings slide deck, both of which you can access by visiting the investor section of the company's website at ir.ndsa.com. With that, I will turn the call over to Sean.

Thank you, Jack, and good afternoon, everyone. As I said in our press release, we are clearly in an exceptionally dynamic and volatile period in our economy, one that demands that we as a company continue on with our growth aspirations while simultaneously driving operational efficiency and optimized portfolio management for our business. At the same time, the clinical and patient community that we serve is demanding ever more genomic and clinical data to better inform their care. Aggressively pursuing our differentiated approach to an important and relevant mission has driven growth rates that are exceptional in the healthcare sector and among the broader marketplace. And our business is now at a scale with a full suite of technologies that we can tackle both operational and growth demands simultaneously. COVID surge in the first month of the year did indeed restrain patient visits and our Q1 revenue grew by nearly 20% year over year. While we started on the low end of the plan for the year, we have seen improving momentum and new account growth throughout and exiting the quarter. Importantly, this year's plan anticipates a number of product and service improvements in addition to new capabilities launched throughout the year. We have been picking up the pace in new product introductions, and the key efforts here will support accelerated growth throughout the year as we continue to take advantage of expanding and winning in very large markets while we create a new industrial category in which we are uniquely suited to win. Additionally, our broad portfolio across the Invitae platform conveys an advantage in that we are not in a situation where we have only one or just a few products that require massive ongoing investments in both technology and clinical trials. This is important, as we have communicated over the past few quarters that we are exiting the era of a pursuit of growth at all costs to one where we manage to top middle and bottom line targets to the sustainability of our model. And to that end, this quarter marked a very important inflection for Invitae. As we communicated on the year-end call, the company has hit a peak in its cash burn and now sees an increased trajectory of burn reduction ahead. In this quarter, we reduced our annual operating burn by over $100 million, and we see a path to accelerate the efforts therein. There is resolution across the organization to execute and alter course where necessary to ensure this acceleration. Collectively, that means we are ramping up our initiatives around driving higher margin growth, containing and reducing operating expenses, prioritizing and optimizing our product and service portfolio, among other efforts to extend our current cash runway well into 2023 or beyond. Our flexible platform and operating model are able to drive operating leverage while driving aggressive new product cycles into our customer base. This unique capability, we believe, will continue to position Invitae to execute on our vision in this winner-take-most opportunity for personal health information, enabling a new era of medicine. I'll now hand the call over to Roxy to walk us through the details.