Natera Inc Reports Financial Results for Second Quarter Ended June 30 2024
Intellectia.AI1970-01-01
Natera, Inc. Reports Financial Results for Second Quarter Ended June 30, 2024
Natera, Inc. (NASDAQ: NTRA), a global leader in cell-free DNA and genetic testing, today announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change (%) | Q1 2024 | QoQ Change (%) | Consensus Estimates (Q2 2024) |
|---|---|---|---|---|---|---|
| Total Revenue | $413.4 million | $261.4 million | +58.1% | $343.01 million | +20.0% | $343.01 million |
| Earnings Per Share (Diluted) | ($0.30) | ($0.97) | 69.1% | - | - | ($0.69) |
Professional Interpretation: Natera's financial performance has surpassed expectations with a remarkable 58.1% year-over-year increase in total revenue, amounting to $413.4 million in Q2 2024. On a quarter-over-quarter basis, the revenue surged by 20.0% against the Wall Street consensus. Moreover, earnings per share improved significantly from a loss of $0.97 to a loss of $0.30, which is considerably better than the expected loss of $0.69.
Revenue Performance by Segments
| Segment | Q2 2024 Revenue ($ Million) | Q2 2023 Revenue ($ Million) | YoY Change (%) | Previous Guidance |
|---|---|---|---|---|
| Total Revenue | 413.4 | 261.4 | +58.1% | 343.01 |
| Product Revenue | 411.4 | 258.3 | +59.3% | - |
Professional Interpretation: The growth in total revenue was primarily fueled by a 59.3% rise in product revenues. This suggests strong market demand and successful execution in Natera's core offerings, which include cell-free DNA and genetic testing solutions.
Key Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | YoY Change (%) |
|---|---|---|---|
| Total Tests Processed | 760,300 | 617,200 | +23.2% |
| Oncology Tests Performed | 125,400 | 83,500 | +50.2% |
| Gross Margin | 58.8% | 45.2% | +13.6% |
| Operating Expenses - R&D and SG&A ($ Million) | 287.1 | 230.7 | +24.4% |
| Loss from Operations ($ Million) | (43.9) | (112.4) | N/A |
| Net Loss ($ Million) | (37.5) | (110.8) | N/A |
| Cash and Cash Equivalents* ($ Million) | 887.1 | - | N/A |
Comments from Company Officers
Steve Chapman, CEO of Natera, remarked, "Our second-quarter financial results exceeded our expectations with incredibly strong performance in volume, revenue, and gross margin. We look forward to continuing this positive momentum in the second half of 2024 and supporting our patients with cutting-edge science, an innovative product portfolio, and excellent service that is core to our mission."
Forward Guidance
Natera anticipates total revenue for 2024 to range between $1.49 billion and $1.52 billion. The projected gross margin is expected to be approximately 54% to 56% of revenues. The selling, general and administrative costs are anticipated to be between $700 million to $750 million, while research and development costs are projected to fall between $350 million to $375 million. The net cash inflow/outflow is estimated to range between ($25) million to $25 million.
Stock Price Movement
After the release of the earnings report, Natera's stock price experienced a positive change of approximately 7.31%.
Summary Natera, Inc. exhibited a robust financial and operational performance in Q2 2024, significantly surpassing market expectations and demonstrating strong growth across all major metrics. The optimistic forward guidance underscores continued confidence in the company’s strategic direction.
*Cash and Cash Equivalents data as of June 30, 2024, compared to December 31, 2023.
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