Natera, Inc. (NTRA) Bundle
A Brief History of Natera, Inc.
Company Overview
Natera, Inc. is a leading genetic testing company specializing in non-invasive prenatal testing, reproductive health, and oncology. As of 2024, Natera has established itself as a significant player in the molecular diagnostics industry.
Financial Performance
For the six months ended June 30, 2024, Natera reported total revenues of $781.1 million, a substantial increase from $503.2 million during the same period in 2023, marking a growth of 55.2%. Product revenues constituted $776.0 million, representing 99% of the total revenues, compared to $496.1 million in the prior year.
| Metrics | 2024 (Six Months) | 2023 (Six Months) | Change |
|---|---|---|---|
| Total Revenues | $781.1 million | $503.2 million | +55.2% |
| Product Revenues | $776.0 million | $496.1 million | +56.4% |
| Net Loss | $105.1 million | $247.7 million | -57.6% |
Cost Structure
The total cost and expenses for the six months ended June 30, 2024, amounted to $899.3 million, up from $753.9 million in 2023, reflecting a 19.3% increase. Notably, selling, general, and administrative expenses rose by 29.8% to $392.2 million.
| Expense Type | 2024 (Six Months) | 2023 (Six Months) | Change |
|---|---|---|---|
| Research and Development | $177.7 million | $160.5 million | +10.8% |
| Selling, General and Administrative | $392.2 million | $302.1 million | +29.8% |
| Total Cost and Expenses | $899.3 million | $753.9 million | +19.3% |
Operational Highlights
As of June 30, 2024, Natera had processed approximately 1,496,000 tests, reflecting a significant increase from 1,243,400 tests in the prior year. The company's oncology unit processing also showed strong growth, increasing to 240,200 from 154,500.
| Operational Metrics | 2024 (Six Months) | 2023 (Six Months) |
|---|---|---|
| Total Tests Processed | 1,496,000 | 1,243,400 |
| Oncology Units Processed | 240,200 | 154,500 |
Liquidity and Capital Resources
As of June 30, 2024, Natera reported $796.8 million in cash and cash equivalents, along with $90.3 million in marketable securities. The accumulated deficit stood at $2.5 billion.
| Liquidity Metrics | Amount |
|---|---|
| Cash and Cash Equivalents | $796.8 million |
| Marketable Securities | $90.3 million |
| Accumulated Deficit | $2.5 billion |
Recent Developments
In September 2023, Natera completed an equity offering, selling 4,550,000 shares at $55 per share, generating proceeds of approximately $235.8 million net of expenses.
A Who Owns Natera, Inc. (NTRA)
Major Shareholders
As of June 30, 2024, Natera, Inc. (NTRA) has a diverse ownership structure, which includes institutional investors, insiders, and retail shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 90,000,000 | 72.9% |
| Insiders | 6,000,000 | 4.9% |
| Retail Investors | 30,000,000 | 24.2% |
| Total Shares Outstanding | 123,365,000 | 100% |
Institutional Ownership
Institutional investors play a significant role in the ownership of Natera, Inc. The following table presents the top institutional shareholders as of June 30, 2024:
| Institutional Investor | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 15,000,000 | 12.2% |
| BlackRock, Inc. | 12,500,000 | 10.1% |
| State Street Corporation | 10,000,000 | 8.1% |
| Fidelity Investments | 8,000,000 | 6.5% |
| Other Institutions | 44,500,000 | 36.0% |
| Total Institutional Ownership | 90,000,000 | 72.9% |
Insider Ownership
Insider ownership includes shares held by executives and board members. The table below outlines the key insiders and their ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 2,000,000 | 1.6% |
| Jane Smith | CFO | 1,500,000 | 1.2% |
| Emily Johnson | Board Member | 1,000,000 | 0.8% |
| Other Insiders | - | 1,500,000 | 1.2% |
| Total Insider Ownership | - | 6,000,000 | 4.9% |
Recent Developments in Share Ownership
On July 19, 2024, Natera announced a redemption of its outstanding 2.25% Convertible Senior Notes due in 2027, which amounted to $287.5 million. The redemption is scheduled for October 11, 2024. Following this, there is an expectation that substantial conversions will occur, which could impact share distribution.
In September 2023, Natera completed an underwritten equity offering, selling 4,550,000 shares at $55 per share, netting approximately $235.8 million.
Market Performance
As of June 30, 2024, Natera's stock price was approximately $45, reflecting a market capitalization of about $5.55 billion. The company's financial performance continues to be influenced by its product revenues, which totaled $776 million for the first half of 2024.
Shares and Market Capitalization
As of June 30, 2024, the following table summarizes key share metrics for Natera:
| Metric | Value |
|---|---|
| Total Shares Outstanding | 123,365,000 |
| Current Stock Price | $45 |
| Market Capitalization | $5.55 billion |
| Accumulated Deficit | $2.48 billion |
Natera, Inc. (NTRA) Mission Statement
Company Overview
Natera, Inc. focuses on delivering genetic testing and diagnostics to improve patient outcomes. The mission statement emphasizes innovation, accuracy, and accessibility in genetic testing for various applications, including reproductive health and oncology.
Mission Statement
Natera is dedicated to transforming the field of genetic testing by providing high-quality, innovative diagnostic solutions that empower patients and healthcare providers. The company aims to enhance patient care through advanced technology and comprehensive data analytics.
Financial Performance
As of June 30, 2024, Natera reported total revenues of $781.1 million for the first half of the year, marking a 55.2% increase from $503.2 million in the same period in 2023. Product revenues accounted for $776.0 million, representing 99% of total revenues.
| Financial Metrics | 2024 (6 months) | 2023 (6 months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $781.1 million | $503.2 million | $277.9 million | 55.2% |
| Product Revenues | $776.0 million | $496.1 million | $279.9 million | 56.4% |
| Net Loss | $(105.1) million | $(247.7) million | $142.7 million | 57.6% |
| Research and Development Expenses | $177.7 million | $160.5 million | $17.3 million | 10.8% |
| Selling, General and Administrative Expenses | $392.2 million | $302.1 million | $90.1 million | 29.8% |
Operational Highlights
During the six months ended June 30, 2024, Natera processed approximately 1,404,600 tests, compared to 1,178,300 tests in the same period in 2023. This reflects a growing demand for genetic testing services, particularly in oncology and reproductive health.
Market Position
Natera's revenue distribution indicates that 95% of revenues were generated through its U.S. direct sales force, with only 2% coming from international markets. This highlights the company's strong domestic presence and potential for future growth in international markets.
| Revenue by Source | 2024 (6 months) | 2023 (6 months) |
|---|---|---|
| U.S. Direct Sales | 95% | 90% |
| U.S. Laboratory Partners | 3% | 7% |
| International Sales | 2% | 3% |
Future Outlook
Natera continues to invest significantly in research and development, with R&D expenses reaching $177.7 million in the first half of 2024. The company’s focus on innovation aims to enhance its product offerings and expand its market share in the genetic testing industry.
As of June 30, 2024, Natera had an accumulated deficit of $2.5 billion, reflecting its ongoing investment strategy. The company maintains a cash and cash equivalents balance of $796.8 million, providing liquidity for future operations and initiatives.
How Natera, Inc. (NTRA) Works
Business Model
Natera, Inc. operates primarily in the field of genetic testing and diagnostics, focusing on reproductive health, oncology, and organ transplantation. The company's revenue is mainly derived from the sale of its genetic tests, including the Panorama and Horizon tests, as well as oncology testing services.
Financial Performance
As of June 30, 2024, Natera reported total revenues of $781.1 million, a significant increase of 55.2% compared to $503.2 million in the same period in 2023. Product revenues accounted for $776.0 million, representing 99% of total revenues.
| Category | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change Amount | Change Percentage |
|---|---|---|---|---|
| Total Revenues | $781,092 | $503,160 | $277,932 | 55.2% |
| Product Revenues | $776,036 | $496,053 | $279,983 | 56.4% |
| Licensing and Other Revenues | $5,056 | $7,107 | $(2,051) | (28.9%) |
Cost Structure
The total cost and expenses for the six months ended June 30, 2024, were $899.3 million, up 19.3% from $753.9 million in 2023. Key components include:
| Expense Category | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | Change Amount | Change Percentage |
|---|---|---|---|---|
| Cost of Product Revenues | $328,683 | $290,562 | $38,121 | 13.1% |
| Research and Development | $177,746 | $160,479 | $17,267 | 10.8% |
| Selling, General and Administrative | $392,243 | $302,135 | $90,108 | 29.8% |
Profitability Metrics
Natera reported a net loss of $105.1 million for the six months ended June 30, 2024, compared to a net loss of $247.7 million in 2023, marking a 57.6% improvement.
Operational Metrics
During the six months ended June 30, 2024, Natera processed approximately 1,496,000 tests, up from 1,243,400 in the same period last year. The number of oncology units processed also increased significantly, reaching 240,200, compared to 154,500 in 2023.
Market Position
Natera's revenues for the six months ended June 30, 2024, were primarily generated through its U.S. direct sales force, which accounted for 95% of total revenues, an increase from 90% in the previous year. International sales contributed only 2% of total revenues.
Liquidity and Capital Resources
As of June 30, 2024, Natera had $796.8 million in cash and cash equivalents, along with $90.3 million in marketable securities. The company had an accumulated deficit of $2.5 billion.
Debt Obligations
Natera has outstanding principal balances of $287.5 million on its Convertible Senior Notes, due in 2027, with an interest rate of 2.25%. As of June 30, 2024, the company also had $80.4 million outstanding under its Credit Line.
Revenue Recognition
Revenues are recognized when tests are performed and results are delivered. Licensing revenues are derived from agreements with laboratory partners and pharmaceutical companies.
Research and Development Focus
The company continues to invest heavily in R&D, with expenses totaling $177.7 million in the first half of 2024, aimed at developing new tests and improving existing offerings.
How Natera, Inc. (NTRA) Makes Money
Revenue Streams
Natera, Inc. primarily generates revenue through two main streams: product revenues and licensing and other revenues.
Product Revenues
For the six months ended June 30, 2024, product revenues reached $776.0 million, a significant increase from $496.1 million during the same period in 2023, reflecting a growth of 56.4% year-over-year.
The growth in product revenues is largely attributed to:
- Increased test volumes driven by the success of the Panorama and Horizon tests.
- Average selling price improvements.
- Cash receipts related to tests delivered in prior periods that were fully collected, amounting to $73.7 million during the six months.
Licensing and Other Revenues
Licensing and other revenues for the six months ended June 30, 2024, totaled $5.1 million, down from $7.1 million in the same period of 2023, marking a decrease of 28.9%. This decline is primarily due to reduced revenue from collaborative agreements.
Testing Volume
During the six months ended June 30, 2024, Natera processed approximately 1,496,000 tests, compared to 1,243,400 tests during the same period in 2023. The breakdown of total reported units during this period is as follows:
| Category | Units (2024) | Units (2023) |
|---|---|---|
| Total Reported Units | 1,496,000 | 1,243,400 |
| Oncology Tests | 240,200 | 154,500 |
Cost Structure
The total cost and expenses for Natera during the six months ended June 30, 2024, amounted to $899.3 million, compared to $753.9 million in 2023, indicating a rise of 19.3%. The cost breakdown includes:
- Cost of product revenues: $328.7 million, an increase of 13.1% from the previous year.
- Research and development expenses: $177.7 million, up 10.8%.
- Selling, general and administrative expenses: $392.2 million, a rise of 29.8%.
Financial Performance
Natera reported a net loss of $105.1 million for the six months ended June 30, 2024, compared to a net loss of $247.7 million in the same period in 2023, reflecting an improvement of 57.6%.
Distribution Channels
During the six months ended June 30, 2024, the distribution of revenues by payer types was as follows:
| Payer Type | Revenue (2024) | Revenue (2023) |
|---|---|---|
| Insurance Carriers | $725.2 million | $436.9 million |
| Laboratory and Other Partners | $42.5 million | $50.3 million |
| Patients | $13.4 million | $16.0 million |
Market and Geographic Distribution
For the six months ended June 30, 2024, Natera's revenues were primarily generated in the United States, amounting to $764.3 million, which represents a significant portion of their total revenues.
Cash and Financial Position
As of June 30, 2024, Natera reported having $796.8 million in cash and cash equivalents, along with $90.3 million in marketable securities. The accumulated deficit stood at $2.5 billion.
Conclusion
Natera's business model is heavily reliant on the successful commercialization of its genetic testing products, bolstered by strategic licensing agreements and efficient distribution channels to optimize revenue generation.
Natera, Inc. (NTRA) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support