What happened

Shares of Invitae (NYSE:NVTA), a company focused on genetic testing, fell 12% as 3 p.m. EST on Thursday. The decline can be traced to the release of third-quarter results.

So what

Here's an overview of the headline numbers from the period:

  • Revenue jumped 106% to $37.4 million. That figure was ahead of what Wall Street was expecting.
  • Net loss was $31.7 million, or $0.45 per share. This was better than the $0.47 loss that market-watchers were expecting.
  • Cash burn was $18.4 million. 
  • Cash balance at quarter-end was $134.6 million thanks to a recently completed equity offering.   

The strong results enabled Invitae to raise guidance for the full year:

  • Volume is expected to exceed 285,000 samples during the year. That's a 10,000 bump from its prior outlook.
  • Revenue guidance was raised by $5 million to a new range of $140 million to $145 million. For context, Wall Street was only expecting $138.5 million in total revenue. 
Team of workers with smiles on their faces

Image source: Getty Images.

Despite reporting expectation-topping results and issuing bullish guidance, shares still swooned today. The fall isn't all that surprising when considering that Invitae's shares had been up more than 60% since the start of the year prior to today's release.

Now what

Investors couldn't have asked for much more in Invitae's third-quarter results. Revenue growth was strong, cash burn was low, and guidance was raised for the year. That's a trifecta that usually causes traders to cheer. However, given the stock's red-hot performance as of late, the sell-off isn't too surprising.

Overall, Invitae continues to execute against its growth plan. If you were bullish on the stock yesterday, I find no reason to change your tune today.