when the question is genetics, the answer is invitae

© 2018 Invitae Corporation. All Rights Reserved. | 1

When the question is genetics, the answer is Invitae.S E C O N D Q U A R T E R 2 0 1 8 C O N F E R E N C E C A L L

A U G U S T 7 , 2 0 1 8


Safe Harbor StatementThis presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the company’s future financial performance and estimated guidance for 2018; its plans and prospects; its plans to integrate and manage businesses it acquires; the timing of the transfer of its Cambridge facility to San Francisco; the focus of its business strategy; that evidence is growing to expand the use of genetic information; and the company’s belief that eventually everyone can benefit from genetic information. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future performance. These risks and uncertainties include, but are not limited to: the company’s history of losses; the company’s ability to compete; the company’s failure to manage growth effectively; the company’s need to scale its infrastructure in advance of demand for its tests and to increase demand for its tests; the risk that the company may not obtain or maintain sufficient levels of reimbursement for its tests; the company’s failure to successfully integrate or fully realize the anticipated benefits of acquired businesses; the company’s ability to use rapidly changing genetic data to interpret test results accurately and consistently; security breaches, loss of data and other disruptions; laws and regulations applicable to the company’s business; and the other risks set forth in the company’s filings with the Securities and Exchange Commission, including the risks set forth in the company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018. These forward-looking statements speak only as of the date hereof, and InvitaeCorporation disclaims any obligation to update these forward-looking statements.


Gross profit

$9.6M

$5.0M

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

$8.3M

$3.8M

$16.9M

Revenue

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

$27.7M

$18.1M

$25.4M

$14.3M

$37.3M

Accessioned volume

64,000

40,000

30,500

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

53,000

73,000

Momentum building across all key indicators

Q U A R T E R LY S U C C E S S L E A D S T O R E V E N U E G U I D A N C E I N C R E A S E


COGS

T R E N D

Reimburse-ment

T R E N D

GrossProfit

T R E N D

OperatingLeverage

T R E N D

RevenueBetween $135 – $140 million in 2018

T R A I L I N G I N D I C A T O R

Again increasing annual revenue guidance

VolumeMore than 275,000 samples

expected in 2018

R E A L - T I M E I N D I C A T O R

§ Strong execution on all key indicators

§ Began receiving payment from Medicare for deletion and duplication analysis(CPT code 81433)

§ On track to drive down cash burn by 40-50% compared to Q1 levels exiting 2018


L A U N C H E D C O M P R E H E N S I V E C A R R I E R S C R E E N I N G

Expanding our model into reproductive health

Starting a family?

Diagnosing a disease?

Informing my health?

Fertility &perinatal health

PGT

Prenatal testing

Neonatal testing

Pediatric testing

Carrierscreening

Adultinherited testing

Proactive


21st consecutive quarter of double-digit growth

§ Accessioned >73,000 samples

– 139% increase year-over-year

– 14% increase quarter-over-quarter

§ >72,600 billable tests

– 24% increase from >58,600 inQ1:18

Accessioned volume

64,000

40,000

30,500

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

53,000

73,000


Continued improvement in revenue pull through

§ $37.3M in Q2 revenue

– 161% increase year-over-year

– 35% increase quarter-over-quarter

– Includes $1.0M in non-test revenue

– Includes $2.3M in revenue from Medicare for Del/Dup tests delivered in 2017

Revenue

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

$27.7M

$18.1M

$25.4M

$14.3M

$37.3M


Maintained COGS amidst major new product launch

§ Average cost per sample of $280

– 19% reduction year-over-year

– Flat from prior quarter

§ Continued focus throughout 2018, including integration of reproductive health technologies

– Cambridge production transferring to San Francisco throughout Q3

COGS per sample

$330

$345

$320

$280

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

$280


Gross profit up considerably from first quarter

§ Gross profit of $16.9M in Q2:18

– Up from $3.8M in Q2:17

– Up from $9.6M in Q1:18

§ Gross margin of 45% in Q2:18

– Compared to 27% in Q2:17

– Compared to 35% in Q1:18

§ Continued progress towards50% gross margin across the Invitae platform

Gross profit

$9.6M

$5.0M

Q2:17 Q2:18Q3:17 Q4:17 Q1:18

$8.3M

$3.8M

$16.9M

G R O S S P R O F I T I N Q 2 N E A R LY E Q U A L S F U L L Y E A R 2 0 1 7


Leverage from operating expenses

§ Operating expenses of $46.9Min Q2:18 – 47% increase year-over-year

compared to 139% volume growth

– 2% sequential increase compared to 14% volume growth

§ Operating expenses expectedto grow modestly over next few quarters as acquisitions fully integrated

§ Q2:18 operating expenses included $8.9M in non-cash expenses

– $6.1M was stock-based comp

Q2:17

64,000samples

30,500samples

40,000samples

53,000samples

OpEx

Volume

Q2:18Q3:17 Q4:17 Q1:18

$31.9M $35.9M$46.1M$43.2M

Operating leverage

73,000samples

$46.9M


Strengthened balance sheet and decreased burn

Q1:16 Q2:16 Q4:16

0

($21.2M)

26,000samples

$28.3M

§ Healthy balance sheet with access to capital totaling over $110M at June 30th

– Ended Q2:18 with $91.4M in cash, cash equivalents and investments,including restricted cash

– Net proceeds of $53.5M from public offering, closed in early April

– Additional $20.0M debt available through year-end 2018

§ $26.5M cash burn from operations in Q2:18

– Q2:18 cash burn excludes $53.5M of equity financing and $3.1M of fundsfrom exercise of warrants

§ On track to cut cash burn from Q1:18 by 40-50% by year-end


Bring comprehensive genetic information into mainstream medical practice to improve the quality of healthcare for billions of people

Genetic informationis more valuable when shared

Driving down thecost of genetic information will increase itspersonal andclinical utility

Healthcare professionals are fundamental in ordering and interpretinggenetic information

People shouldown and controltheir own genetic information


Invitae continues to lead in clinical excellence

D E L I V E R I N G C O M P R E H E N S I V E A N S W E R S T O S E R I O U S , C O M P L E X Q U E S T I O N S

Prevalence and properties of intragenic copy-number variation in Mendelian disease genes.Truty R, Paul J, Kennemer M, Lincoln SE, Olivares E, Nussbaum RL, Aradhya S. Genetics in Medicine. Published online June 12, 2018. doi:10.1038/s41436-018-0033-5.

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Percent Positive Reports with CNVs

Neurology Oncology Cardiology

https://www.nature.com/articles/s41436-018-0033-5


Evidence growing to expand use of genetic information

N E A R LY T H E S A M E N U M B E R O F W O M E N AT R I S K

W H E T H E R I N O R O U T O F C R I T E R I A

Underdiagnosis of hereditary breast and ovarian cancer in Medicare patients: Genetic testing criteria miss the mark. Yang S, Axilbund JE, O’Leary E, Michalski ST, Evans R, Lincoln SE, Esplin ED, Nussbaum RL. Annals of Surgical Oncology. Published online July 11, 2018. doi:10.1245/s10434-018-6621-4.

Patient Group (#)Breast/GYN Cancer Management Genes

(% Positive)

Large Hereditary Breast and Ovarian Cancer Panel

(% Positive)

In-Criteria Patients (3549) 8.4 % 10.5 %

Out-of-Criteria Patients (647) 6.2 % 9.0 %

Not a significantdifference

Not a significantdifference

https://link.springer.com/article/10.1245/s10434-018-6621-4


Healthy individuals benefit from proactive testing

M O R E T H A N 1 6 % P R E S E N T E D W I T H A M E D I C A L LY A C T I O N A B L E G E N E T I C C O N D I T I O N T H E Y W E R E N O T A W A R E T H E Y H A D

Genetics in mainstream medicine: Finally within grasp to influence healthcare globally.Aradhya S, Nussbaum RL. Molecular Genetics and Genomic Medicine. Published online May 28, 2018. doi:110.1002/mgg3.415.

https://onlinelibrary.wiley.com/doi/abs/10.1002/mgg3.415


A N S W E R I N G S O M E O F L I F E ’ S M O S T S E R I O U S A N D C O M P L E X Q U E S T I O N S

Eventually everyone can benefit from genetic information

Starting a family?

Diagnosing a disease?

Informing my health?

Fertility &perinatal health

PGT

Prenatal testing

Neonatal testing

Pediatric testing

Carrierscreening

Adultinherited testing

Proactive

Q&A:

General discussion

when the question is genetics, the answer is invitae

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