Natera (NTRA) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $413.4M, up 58% year-over-year, with ~760,300 tests processed, a 23% increase from Q2 2023, driven by record volumes and strong ASP growth across all segments.

• Oncology test volume grew 50% year-over-year; Signatera clinical units increased by ~13,000 sequentially, marking one of the best growth quarters.

• Gross margin improved to 58.8% from 45.2% in Q2 2023, with net loss narrowing to $37.5M or ($0.30) per share.

• Achieved second consecutive cash flow breakeven quarter, with positive cash flow of $3.3M.

• Launched new Prospera Heart feature and published key clinical data, supporting innovation and market leadership.

Financial highlights

• Product revenues were $411.4M, up $153.1M or 59.3% year-over-year; licensing and other revenues were $2.0M.

• Gross profit was $243.2M, up from $118.3M in Q2 2023; gross margin rose to 58.8%, a 13.6 percentage point increase.

• Operating expenses increased 24.4% to $287.1M, mainly due to headcount and legal costs.

• Cash and investments totaled $887.1M as of June 30, 2024.

• Cash flow breakeven maintained despite seasonal headwinds and increased SG&A investments.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $1.49–$1.52B, with gross margin expected at 54%–56%.

• SG&A and R&D guidance unchanged; continued investment in R&D and execution of growth plans.

• Cash flow breakeven for the full year remains intact, with net cash flow for 2024 expected between ($25)M and $25M.

• Guidance assumes stable ASPs for women's health and modest sequential improvement for Signatera in H2.