Natera, Inc. · NASDAQ:NTRA
Natera — Q1 2024 Earnings Presentation
21 slides from Natera's earnings presentation, May 9, 2024
Slide 1: Natera, Inc. Q1 2024 Earnings Call
Natera, Inc. Investor presentation Q1 2024 Earnings Call May 9, 2024
Slide 2: Safe harbor statement
Safe harbor statement This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts contained in this presentation, including statements regarding our market opportunity, our a
Slide 3: Record performance in Q1 2024
Record performance in Q1 2024 • Achieved cash flow1 breakeven quarter earlier than expected. • Revenue of $367.7M in Q1 2024 vs $241.8M in Q1 2023; year-over-year growth of 52%. • 736K total tests processed in Q1 2024 vs 627K in Q4 2023; sequential growth of 17%. • Performed ~115K oncology tests in
Slide 4: Strong sequential volume growth in Q1 2024
Strong sequential volume growth in Q1 2024 • Excellent organic Total tests processed 736K women’s health growth • Strong early retention 17% of Invitae accounts • Accelerating Prospera growth 626K 627K • Record Signatera 12% growth 560K 4Q22 1Q23 4Q23 1Q24 4 Not for reproduction or further distribut
Slide 5: Oncology volumes up ~17K units over Q4 2023, demonstrating record growth
Oncology volumes up ~17K units over Q4 2023, demonstrating record growth Total oncology tests processed 115K Signatera clinical tests processed 106K +17K +15K 98K 91K 89K 81K 84K 72K 71K 61K 64K 52K 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 5 Not for reproduction or further distrib
Slide 6: Accelerating revenues in Q1 2024
Accelerating revenues in Q1 2024 • ~52% revenue growth Total revenues: quarterly progression $368M over Q1 2023 ($ in millions) • ~18% revenue growth over Q4 2023 52% • ~$34M in Q1 2024 revenue true ups $242M driven by rapid ASP 25% $194M growth 28% $152M 62% $94M 40% $67M 1Q19 1Q20 1Q21 1Q22 1Q23 1
Slide 7: ASPs and COGS execution ahead of plan
ASPs and COGS execution ahead of plan Gross margins quarterly trend ~4% true • Significant sequential up benefit 57% step up in ASPs • Cash collection ~2% true exceeding expectations, up benefit 51% driving true-ups • Continued momentum in COGS projects 45% 45% 39% 1Q23 2Q23 3Q23 4Q23 1Q24 7 Not for
Slide 8: Cash flow breakeven quarter goal achieved
Cash flow breakeven quarter goal achieved • Executing the strategy: Trend for quarterly cash burn / cash flow cash flow improvement ($ in millions) $32 driven by continued 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 revenue growth, improving gross margins, and stable operating expenses • Momentum a
Slide 9: Milestone of 200+ peer-reviewed publications
Milestone of 200+ peer-reviewed publications Cumulative peer-reviewed published papers 200+ peer-reviewed papers 200 Women’s Health since 2012 Organ Health Oncology 150 75+ in oncology/MRD 100 85+ in women’s health 50 40+ 0 in organ health 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 10: New fetal RhD test supports physicians & patients during RhIg shortage
New fetal RhD test supports physicians & patients during RhIg shortage Backed by large, clinical validation study “…the use of NIPT to prioritize use of >650 100% >99% RhIg and conserve patients sensitivity specificity RhIg supply is a reasonable consideration...” Further differentiates Natera --The
Slide 11: KDIGO guidelines support genetic testing in majority of patients with CKD
KDIGO guidelines support genetic testing in majority of patients with CKD to establish cause of disease Supports use of genetic testing Clinical indications impacting vast majority of CKD patients • KDIGO states that genetic • KDIGO recommends clinical indications where genetic testing can tests sho
Slide 12: Publication of ProActive, the largest prospective dd-cfDNA study in kidney transplantation
Publication of ProActive, the largest prospective dd-cfDNA study in kidney transplantation Trial background • 1,631 kidney transplant patients | ≥ 18 months follow up |54 participating centers Key findings: ProsperaTM is a leading indicator of rejection • Predicted ABMR up to 5 months and TCMR up to
Slide 13: Planned readout of the randomized phase III ALTAIR trial in CRC
Planned readout of the randomized phase III ALTAIR trial in CRC Trial designed to provide clear and compelling evidence of treatment on molecular recurrence April 2024 Q3-Q4, 2024 Surpassed 190 events Major industry conference Enables statistical analysis of study read-out Expected data presentation
Slide 14: Circulate France: randomized phase III trial investigating Signatera-guided adjuvant treatment in CRC
Circulate France: randomized phase III trial investigating Signatera-guided adjuvant treatment in CRC ~44k people in France diagnosed with CRC annually1 • Prospective randomized phase III trial. Trial Schema (N= 2,130; low risk, stage II CRC) • Evaluating benefit of adjuvant therapy with ctDNA detec
Slide 15: Surveillance analysis from IMvigor011 bladder cancer study
Surveillance analysis from IMvigor011 bladder cancer study Increasing confidence that Signatera MRD-negative patients can be spared treatment Study details Key Findings • Global, double-blind, Follow up Overall Survival Disease-Free Survival randomized phase III trial. • Evaluated clinical outcomes
Slide 16: Expanding data leadership in women's cancers
Expanding data leadership in women’s cancers Clinical validation in uterine cancer (UC) Clinical validation in breast cancer • Newly published paper in UC. • Newly published paper2 on expanded EBLIS study. • Real-world study1 of 267 samples from 101 patients. • 156 patients, 1136 timepoints, across
Slide 17: FY24 Q1 financial overview
FY24 Q1 financial overview ($ in millions, except for per share data) FY24 Q1 FY23 Q1 Change Y/Y Product revenues $364.7 $237.8 $126.9 Licensing and other revenues $3.0 $4.0 ($1.0) Total revenues $367.7 $241.8 $125.9 Gross margin% 56.7% 38.7% 1800 bps R&D $88.6 $82.3 $6.3 SG&A $194.3 $149.6 $44.7 Ne
Slide 18: Raising 2024 annual guidance
Raising 2024 annual guidance Guide ($ millions) Original Current Key drivers Continued volume growth, conservative ASPs, strong Revenue $1,320 – $1,350 $1,420 – $1,450 oncology contribution. Holding ASPs steady at Q1 levels. Focused on Gross margin % 50% – 53% 53% – 55% continued improvement. SG&A $
Slide 19: Executing on plan: flashback to Q1'22 earnings call
Executing on plan: flashback to Q1’22 earnings call Exact slide from Natera’s Q1’22 earnings presentation 19 Not for reproduction or further distribution.
Slide 20: Upside potential with future catalysts in 2024
Upside potential with future catalysts in 2024 Continued execution on ASPs, COGS, volumes Guideline inclusion of women’s health products ALTAIR top-line results in Q3 Additional MolDx coverage for Signatera Potential Catalysts Potential uplift from biomarker states Product launches in women’s health
Slide 21: ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® 21 ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.