Slide 1: Natera, Inc. Q2 2024 Earnings Call
Natera, Inc. Investor presentation Q2 2024 Earnings Call August 8, 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: Q2 2024 highlights and recent business updates
Q2 2024 highlights and recent business updates • Revenue of $413M in Q2 2024 vs $261M in Q2 2023; year-over-year growth of 58%. • ~760K total tests processed in Q2 2024 vs ~617K in Q2 2023; year-over-year growth of 23%. • Performed ~125K oncology tests in Q2 2024 vs ~84K in Q2 2023; year-over-year g
Slide 4: Quarterly volumes demonstrate continued momentum
Quarterly volumes demonstrate continued momentum Core Volume Drivers 800K 760K • New features and data 700K 617K leading to women’s 600K health account wins 500K 500K • New data and guidelines driving organ health 400K 376K 300K • Signatera continues to 234K ramp 195K 200K 100K 0K Q2'19 Q2'20 Q2'21
Slide 5: Signatera clinical units jump again, up ~13K units in Q2 vs Q1
Signatera clinical units jump again, up ~13K units in Q2 vs Q1 130K Total oncology tests processed 135K Signatera clinical tests processed 125K 120K 118K ~11K ~13K 125K 110K 106K 115K 115K 100K 105K 91K 98K 90K 95K 81K 89K 80K 84K 72K 85K 70K 61K 75K 71K 60K 52K 64K 65K 50K 55K 40K 4Q22 1Q23 2Q23 3Q
Slide 6: Strong sequential revenue growth in Q2
Strong sequential revenue growth in Q2 Total revenues: growth comparison of Q2 vs Q1 over time ($ in millions) $450M $413 $400M 12% $368 $350M $300M $261 • ~58% revenue growth $250M $242 over Q2’23 8% $194 $198 $200M 2% • Strong gross margin $150M improvement $100M • Growth $50M in Signatera ASP $M
Slide 7: ASPs and COGS execution ahead of plan
ASPs and COGS execution ahead of plan • Underlying gross Gross margins quarterly trend 65% ~4% true up margins (excluding true benefit ups) increased ~200 bps 60% ~4% true 59% in Q2 over Q1 up benefit 57% • Significant sequential 55% ~2% true step up in ASPs up benefit 51% • Cash collection 50% exce
Slide 8: Second consecutive cash flow breakeven quarter
Second consecutive cash flow breakeven quarter • Executing the strategy: Trend for quarterly cash burn / cash flow cash flow improvement 20 ($ in millions) $3 $32 driven by continued 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 0 revenue growth, improving gross margins, and stable (20) operatin
Slide 9: National Kidney Foundation recommends genetic testing for kidney disease
National Kidney Foundation recommends genetic testing for kidney disease New consensus paper from NKF1: Recommends a large multi-disease genetic kidney panel as the primary choice for genetic testing. With NKF and KDIGO, Recommends genetic testing for the majority of CKD patients, providing an algor
Slide 10: Launched Prospera Heart with DQS, enhancing detection of rejection
Launched Prospera Heart with DQS, enhancing detection of rejection for transplant patients Prospera Heart v1 NEW Prospera Heart with DQS dd-cfDNA % dd-cfDNA % + DQS Rejection Types AMR & ACR AMR & ACR Sensitivity 80.0% 88.2% Specificity 76.1% 84.2% Two thresholds • 37% reduction in false positive re
Slide 11: Commercial growth drivers for Signatera
Commercial growth drivers for Signatera Adjuvant Decision Making Informing risk-based decisions about adjuvant systemic therapy after curative intent surgery ✓ Growth in new physician starts, with over 40% of oncologists ordering a Signatera test in Q2 Surveillance ✓ Growth in new patients across al
Slide 12: Study from ASCO 2024 highlights current utility in breast cancer
Study from ASCO 2024 highlights current utility in breast cancer1 Multi-Institutional Real-World Study 464 early breast cancer Study Design patients with ctDNA testing 88% of patients remained ctDNA- To determine whether ctDNA negative, providing reassurance detection in the adjuvant and and peace o
Slide 13: Recent peer-reviewed publications across multiple indications, in top journals
Recent peer-reviewed publications across multiple indications, in top journals JCO Precision JAMA European Urology JCO Precision Oncology1 Oncology2 Oncology3 Oncology4 Multicenter, real-world Merkel Cell Carcinoma Pancreatic Cancer evidence study Muscle-Invasive Bladder Cancer Breast Cancer • Multi
Slide 14: Key phase III clinical trials in colorectal, bladder and breast cancers
Key phase III clinical trials in colorectal, bladder and breast cancers 2024 2025 2026 and Beyond Trial GALAXY ALTAIR IMvigor011 CIRCULATE TREAT VEGA MODERN CIRCULATE- (36-mos France ctDNA US outcomes with OS) Indication CRC CRC Bladder CRC Breast CRC Bladder CRC RCT/NR NR RCT RCT RCT RCT RCT RCT RC
Slide 15: FY24 Q2 financial overview
FY24 Q2 financial overview ($ in millions, except for per share data) FY24 Q2 FY23 Q2 Change Y/Y Product revenues $411.4 $258.3 $153.1 Licensing and other revenues $2.0 $3.1 ($1.1) Total revenues $413.4 $261.4 $152.0 Gross margin % 58.8% 45.2% 13.6% R&D $89.1 $78.2 $10.9 SG&A $198.0 $152.5 $45.5 Net
Slide 16: Raising 2024 guidance
Raising 2024 guidance Guide ($ millions) Original Q1 24 Current Key drivers Continued volume growth, conservative ASPs, Revenue $1,320 – $1,350 $1,420 – $1,450 $1,490 – $1,520 strong oncology contribution Gross margin 50% – 53% 53% – 55% 54% – 56% Reflects higher Q2 ASPs holding for rest of year % r
Slide 17: ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.
® ©2024 Natera, Inc. All Rights Reserved. Not for reproduction or further distribution.