What happened

Shares of Invitae (NVTA -55.88%) were up 9.4% as of 12:50 p.m. EDT Wednesday after the company delivered an upbeat earnings report and raised its guidance.

People gathered around a computer cheering.

Image source: Getty Images.

So what

The genetic testing company posted 152% year-over-year revenue growth in the second quarter and offered full-year guidance for revenues between $475 million and $500 million. Analysts had been projecting Invitae's 2021 top line would land at about $463 million.  The results were a welcome change from the previous several quarters, which featured pedestrian growth due to the impact of COVID-19.

Now what

Even after Wednesday's pop, the stock is down about 11% since early March, when Cathie Wood of ARK Investment Management called it one of the most under-appreciated companies in her ARK Genomic Revolution ETF. Part of that decline is attributable to dilution. Despite the company's impressive top-line growth this quarter, its revenue-per-share metric only climbed by 61% because there are 56% more shares outstanding than there were at this time last year. 

Invitae continues to burn cash, but it has $1.2 billion more on its balance sheet than it did a year ago thanks to an investment from Softbank Group (SFTB.Y -4.66%). It will need those funds, as its march toward positive cash generation has stalled in recent years.

Fundamental Chart Chart

Fundamental Chart data by YCharts

Management continues to see an addressable market for Invitae of more than $150 billion in the U.S. alone. If today's shareholders want to benefit from the company capturing a significant share of that market -- and turning those revenues into profits -- they're going to have to be patient. On Wednesday, it looked like more of them were comfortable with the idea of that wait.