Shares of Invitae (NVTA -0.26%) were tumbling 9.6% lower as of 10:24 a.m. ET on Wednesday. The decline came after the medical genetics company announced its first-quarter results following the market close on Tuesday.
Invitae reported first-quarter revenue of $123.7 million, up 19.4% year over year. However, the result came in below the consensus estimate of $128.1 million.
The company posted a net loss in the first quarter of $181.9 million, or $0.80 per share, based on generally accepted accounting principles (GAAP). Invitae's non-GAAP (adjusted) net loss totaled $177.4 million, or $0.78 per share. The average analysts' estimate projected an adjusted net loss of $0.76 per share.
In the big scheme of things, it doesn't matter very much that Invitae disappointed Wall Street with its first-quarter results. However, the company's cash burn of $169.3 million in the first quarter does present a serious concern.
The good news is that Invitae has reduced its cash burn by 13.5% from the fourth quarter of 2021. However, the company's cash stockpile of $885 million won't last for too much longer unless significant additional progress is achieved in further reducing cash burn.
Invitae CEO Sean George said that the company plans "to substantially decrease our burn throughout this year and next, extending our cash runway through 2023." Doing this will be crucial for the company to achieve its goal of generating positive operating cash flow by the end of 2025.