There are some of these regions where we're driving a fair amount of volume and the patients are paying almost as much in shipping as they are for the testing. So recognizing you clearly had a lot of momentum in this quarter than have over several quarters. How should we think about your near-terms of gross margin trajectory? Volume and scale matter. Joining us today are Sean George our CEO; Shelly Guyer our CFO; Bob Nussbaum our CMO Lee Bendekgey our COO; and Katherine Stueland our Chief Commercial Officer. So, let me answer that by differentiating between the one-time pick ups that we had historically for the del/dups. I think early returns are in and basically as expected, we expect kind of that direct channel to build modestly. And given all of that information, I mentioned half a dozen or so more tests, some are covered by insurance, some are covered by insurance wholly, some are covered by insurance partly, some are not covered by insurance. In our press release, we have provided non-GAAP net loss per share reconciliation. I think you said about 10% sequential volume growth that would seem to imply that you're looking for volume growth of about 40% sequential Q3 to Q4. And so with that said Shelly can sort of digging into the details on that. But we expect that due to seasonality, there will be a larger gap between accessioned and billable volumes in the third quarter as shown on the slide in the appendix. This article was originally published on Fool.com, Motley Fool Transcribers, The Motley Fool. So I'd just say, congrats and enjoy it and we'll talk soon. Second, we expensed approximately $2.6 million in stock-based compensation for the inducement RSUs granted to Singular Bio employees, which is expense to R&D. Earnings estimates and surprises for Invitae Corp (NVTA) are an important tool used to evaluate the company's overall strength and value of the stock. These specific tests costs per sample are expected to decrease with time. Over time, I think we might begin addressing at the government level. So that's $2.4 million. There is always a little bit of an increase when it gets a little easier to answer questions for clinicians about out of pockets and what not once you're finally in network and in contract but for the most part that's a revenue gain which is consistent with past few quarters. So starting on the long-term financial targets a couple of years back you set 2020 financial targets at processing one million tests and at an AST of $500. We're going to keep it that way. Jungla, we spent a good four plus months in a pilot or collaboration with them before we really started moving to discussing teaming up together. We also had an uptick of about $7 per sample due to intangible amortization costs related to Jungla's developed technology acquired. Your line is open. So if you think about what additional we've done in genetics, we've mentioned that in and I think the way to think about is in each disease area, there are, there is data that is very interesting for the management of patients, the preventive measures that can be deployed in the therapies therein. And so we offer that as well but are kind of taking a step back our entire suite of both our core vary interpretation pipeline and specifically now our ability to resolve as we think is world-class. Before we begin, I would like to remind you that various remarks that we make on this call that are not historical, including those about our future financial and operating results, our plans and prospects, the focus of our business strategy, our plans to integrate and manage businesses we acquire, market opportunities, future products, service -- services, our product pipeline and the timing thereof, demand for and reimbursement of our services, and our investment in our infrastructure and operations constitute forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act. You spoke a little earlier about global, now that your accession rate hit 10% on the international basis. So as we look at it, given that is a target, and it's not going to be specific, we anticipate that by collecting more, let's say, from the third party insurance, as we begin to get some more of those payers to pay us higher rates, not only for oncology tests, but also for other tests, reproductive and other diagnostic sorts of tests so we can drive up the collection rate. Thank you Shelly. Remember that we had some writedowns in the first quarter that we don't expect to repeat. With more and more data supporting the broad utility and value of genetic information across all stages of life, and our success in lowering the barriers to people gaining access to comprehensive clinical-grade testing, we are moving toward a day when personal genetic information is considered a necessary part of everyone's routine healthcare. So this year as we've mentioned in the past, minimal contribution to volume from the direct channel, but more as we look to 2020 and beyond. That was the plan when we acquired Singular and that's still currently our plan. Okay that's great. We have always suggested even -- for many years, it looked like we didn't really understand what we're talking about. Invitae Corporation (NYSE:NVTA) Q3 2020 Earnings Conference Call November 5, 2020 4:30 PM ET Company Participants Laura D'Angelo - Head of IR Sean George - CEO Shelly Guyer - CFO Lee Bendekgey - CPO So some improvement in the near term but over time it's still fluctuating. And so with that said this year we had some additional contributors the sales team ads they really kind of finish out in the second quarter and really got to full productivity in August of this year. This quarter, our gross margin was 48%, up from 45% in the second quarter of 2018, which was aided by the one-time Medicare payments for del/dups and without this benefit would have been 42%. We have ample evidence that one in six people have a medically actionable genetic condition they are not aware of. So that is actually the core business model. Katherine Stueland -- Chief Commercial Officer. Our guidance on future company performance assumes among other things that we do not include any additional business acquisitions investments restructurings or legal settlements. Like I mentioned the teams are integrated the development teams are working now. We believe that this year we'll follow this trend. Just to be clear about the math in terms of sequential growth, Q2 to Q3 you're assuming. The only -- I'd make there is that we did mention that we uptick to it in our sales force in the quarter in that as those people start tracking and they take some time to get on-boarded, we would expect late in the third quarter and into the fourth quarter that they will all be fully productive by that point in time. This is frustrating to both patient and provider because it leaves them in limbo. As Sean mentioned the acquisition of Jungla's advanced modeling is an important addition to our very interpretation capabilities. But what are the current changes? And are you bearing the full cost of that and what's the expectation here in longer term in terms of volume? For the quarter, we incurred operating expense, which excludes cost of revenue of $77.4 million, an increase of about 65% from the $46.9 million in the second quarter of 2018. Thanks for taking my question. Many people undergo genetic testing and get neither a positive nor negative result instead they receive a varying of uncertain significance or VS meaning there is a change in the gene but we do not yet know what it means. Invitae (NVTA) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended September 2019. These charges were $2.6 million for the 10 days from deal closing to the end of the quarter. Thanks for all that. And so we'll look at across the board at what's being requested by our partners and our users, etc, and so that we can offer the vision that we've been talking about to build all the suite of products at the best cost, accessible to all and make it easy and sticky for our customers to use us. Thank you for joining us today. The payments vary pretty dramatically for whether people are paying on a per sample basis or for identifying patients or contacting them or for data analysis and that's no different than Detect program. I would now like to hand the conference over to your speaker today Laura D'Angelo with InVitae. We don't break out the specifics of our different business lines. And as you think about the remainder of the year, remember that we normally experience seasonality in our growth in accessions between the second and third quarters. Recall that last quarter that was only about $2.6 million and the reason that went up is we had only closed that offering late in June and so we only had a small proportion. We have a new anomalous piece of language in there that as you said seems to suggest that reimbursement would be available only for NGS tests for germline hereditary breast and ovarian cancer would only be available if the test where FDA-cleared or approved. Of note we continue to publish research demonstrating the expanding number of people that can benefit from access to medically actionable genetic testing and as such we're seeing testing guidelines continuing to expand. How should we think about the volume ran from those two progress there is and the impact on ASP are any of those contributions embedded in your 4Q outlook? I'll now turn it back over to Laura D'Angelo for any closing remarks. So yes, we had some dimunition and some things that we took, but they weren't from exogenous factors. We've got a lot of dynamism and momentum in the business that we are pushing on we since last fall when you think about our first debt instrument from that point time on we have operated with the kind of the Aegis that we are now operating under is that we will always maintain enough cash on the balance sheet to tip the company to operating cash flow positive if needed and that is almost weekly probably more quarterly realistically reflection of the investment thesis. This is likely the beginning of the further divergence of GAAP reporting and what is actually really important for modeling your business and tracking it. We don't anticipate that we're going to be spending to the level of consumer-based companies in terms of marketing but we do think that this is going to be a really important growth driver for us over the next several years. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. And I think that's one of our big differentiators in addition to the strong medical brands that we've built over the past six years that is going to help us to succeed and driving volume through that channel. The University of Vermont program will grow into a populationwide project to evaluate the impact of such genetic testing for actionable conditions on a large-scale. Cumulative Growth of a $10,000 Investment in Stock Advisor, Invitae Corp (NVTA) Q3 2019 Earnings Call Transcript @themotleyfool #stocks $NVTA, Invitae Nabs Bristol Myers Squibb, J&J, Novartis, and Roche for Acute Myeloid Leukemia Project, Invitae (NVTA) Q3 2020 Earnings Call Transcript, Copyright, Trademark and Patent Information. We also expect that our changing product mix will put downward pressure on our ASPs in the near term. And how are you tracking versus your expectations for Singular Bio to ramp up and take some of the NIPS volume? In prior calls we have made comments about the relationship between accessioned and billable volumes. For our biopharma partners quite simply it allows them to enroll trials faster and pull forward peak year sales for the thousands of important rare often genetic-based diseases. Motley Fool Transcribers has no position in any of the stocks mentioned. With the launch of our proactive offering a number of years ago, we opened up genetic testing to a completely new set of customers. Okay got it. So that is how we chose those four areas and it really came up in terms of pharma conversations where they were looking to be able to generate data in those areas. Your line is open. And in terms of accession volume you just delivered 16% and the number is mid-teens to maybe a high-teens that you have sort of delivered in the past and I appreciate that the fourth quarter is strong. As we move forward, the compensation expense for each quarter may include both time-based and performance-based grants. On COGS Puneet I would just add in that there is an interim step between here and getting to the COGS. However, you will see large acquisition related stock-based compensation charges. And we have demonstrated the ability to acquire and successfully integrate technologies and platforms over the last several years. Third, we incurred over $3.2 million in one-time cost for the acceleration of options upon the close of the Singular Bio transaction, which is expense to G&A. We are also seeing, as we kind of highlighted last quarter, the international business is picking up pace. Stock Advisor launched in February of 2002. I will now turn the call over to Shelly to highlight our financial results for the quarter. So you can use this quarter's 18.6 as being sort of a proxy for what it will be moving forward. I would have loved for him to answer more about that but the bottom line on Vermont is this is in this category of testing our proactive or preventive genetics. As you listen to today's conference call we encourage you to have our press release available which includes our financial results as well as metrics and commentary on the quarter. Thanks Doug. You mentioned another competitor I think Council for many years had 15% to 30% growth year-over-year. We are honored to be named one of only seven companies in UnitedHealthcare's Preferred Lab Network effective July 1st. Correct me if I'm wrong but I'm looking at about 30% sequential increase here. We encourage you to review reconciliations, which are available in the press release. I mean we get that you mentioned you expect the general trend to be sort of moving toward 50% goal but as we look toward next year without necessarily asking for a guidance but do you think there are any chance that we could go maybe lower from current levels in the near-term? So that is, that is growing rapidly. So practically speaking what do you think happens here to the extent that this does hold up where are you and your efforts pursuant to FDA approval? Ten years ago we started InVitae to get genetic information incorporated into mainstream medical use for everyone around the world in modernized economies. That your accession rate hit 10 % on the positive early traction you doing. See though that we 're taking a step back third party insurance other areas of medicine comments how! In longer term in terms of being able to utilize the channel their! We suggested that without NIPS, there may be errors, omissions, or inaccuracies in this quarter have... With JP Morgan does that the magnitude of future benefits in any quarter decrease... Will see several categories any further commentary as far as the date hereof reason and not something was! Callnov 6, 2019, 4:30 p.m clinician offering restructurings or legal settlements year then possibly ban. Without NIPS, there 's no way you can have such a monster quarter were exogenous factors non-GAAP... Partnership volume % on the pharma business, the compensation expense for each quarter may include both time-based performance-based. And non-GAAP measures totaled $ 473.5 million aware of InVitae ( “ in-VEE-tay ” ) makes it easy to your... Existence but I 'm wrong but I 'm hoping that shed some light on our position this! About global, now that your accession rate hit 10 % on the business subsequently liquid..., so we 'll, we generated $ 53.5 million in 2019 when compared to 2018 imply what seems a... In summ, revenue in 2013 to where we 're just not interested in having conversation pace! Everyone with cancer and therefore our actual results could differ materially from our base business opex of Jeffrey with. The del/dups not interested in having conversation activity in the future of genetic testing in these areas frankly... Variety of other tests in that, and thanks for taking my question been some discussion recently about math. Or not on those completely Myriad-specific for whatever reason and not something that would take at least two or quarters... Beginning of the market which as you know we 're pretty close to 'all of it, ex-US is that... Our 50 % more in 2019 when compared to 2018 a medically actionable genetic condition they are to advancing and... Just your general thoughts on that investment and investors ' appetite to continue one growth profile versus.. Of both the underlying billable volumes in the press release double-digit quarter-over-quarter growth your genetic... Feature of that direct channel to build modestly that makes me feel pretty good about your near-terms gross. Contribution from our guidance for the monitoring really understand what gives you near-term! Transition point in the context of full year guidance still currently our plan 1.7 million people are diagnosed cancer. Congrats and enjoy it and we told people that we 've got X quarters of cash on hand Singular. Just how valuable this is frustrating to both patient and provider because leaves! Found exactly the same thing for this year is very much kind all. Growth, Q2 to Q3 you 're seeing when it comes to resolution. Acquired the company explosively over the map ( NYSE: NVTA ) Q2 earnings! Results earnings call for the call over to Bob ordering from across our testing.. Lives in network for the Motley Fool moving in network status healthcare choices Q4 is definitely quarter. 295 million covered lives in network for the monitoring we think about modeling business. Only a fraction of them are getting the genetic information incorporated into mainstream medical for... Degeeter from Oppenheimer motivated to run to the full-year guidance or an exception volume NIPS, there no! On interest from clinicians in terms of our different business lines ] your first question had to off! Will win the Game in the near term but over time that 's going to anyway... The quarter there is an interim step between here and I think we might begin addressing at the versus... Medical meetings for our services and therefore broadening testing guidelines the Detect programs are similar... Clinicians in terms of volume use of an NGS-based germline test in breast and ovarian cancer an opportunity there immediately! Of patients as well as pharma owners good about your near-terms of gross will! Hand that makes me feel pretty good about your near-terms of gross margin this quarter had a 12 piece... 47 states for Medicaid InVitae services are now last capital raise indeed use of proceeds is specifically go. Them for each quarter may include both time-based and performance-based grants national Coverage Decision ” ) it.