Revenue and Financial Performance - A significant portion of the company's revenues is expected to come from sales of Panorama, Horizon, and Signatera[15] - Product revenues for the year ended December 31, 2024, reached $1,685.1 million, a 57.5% increase from $1,068.5 million in 2023[502] - Total revenues for 2024 were $1,696.9 million, up 56.8% from $1,082.6 million in 2023[502] - The net loss for 2024 was $190.4 million, a significant improvement compared to a net loss of $434.8 million in 2023[502] - Cash, cash equivalents, and restricted cash increased to $945.6 million in 2024 from $642.1 million in 2023, reflecting a 47.3% growth[500] - Total assets grew to $1,660.7 million in 2024, up from $1,441.7 million in 2023, marking a 15.2% increase[500] - Total stockholders' equity increased to $1,195.4 million in 2024, compared to $765.3 million in 2023, reflecting a 56.3% growth[500] - The company generated net cash provided by operating activities of $135.7 million in 2024, a turnaround from net cash used of $247.0 million in 2023[514] - Revenue from insurance carriers was $1,571.8 million in 2024, up from $954.2 million in 2023, and $690.8 million in 2022, indicating strong growth in this segment[614] - Total revenues for the year ended December 31, 2024, reached $1,696.9 million, a significant increase from $1,082.6 million in 2023, and $820.2 million in 2022[614] Expenses and Losses - The company has incurred net losses since inception and expects to continue incurring losses for the foreseeable future[21] - Research and development expenses rose to $404.1 million in 2024, compared to $320.7 million in 2023, indicating a 26.0% increase[502] - Selling, general, and administrative expenses increased to $841.3 million in 2024, up from $618.3 million in 2023, a rise of 36.1%[502] - The company reported a basic and diluted net loss per share of $1.53 for 2024, improving from a loss of $3.78 per share in 2023[502] - The company has an accumulated deficit of $2.6 billion as of December 31, 2024, indicating ongoing financial challenges despite recent improvements[514] - The company reported stock-based compensation expenses of $274.4 million in 2024, up from $191.8 million in 2023[514] Debt and Financial Instruments - The company’s gross debt outstanding on its Credit Line is $80.4 million, with an interest rate that could increase annual interest expense by $0.8 million for a 100 basis point change[483] - An incremental change in the investment yield of 100 basis points would increase annual interest income by approximately $0.2 million[483] - The estimated fair value of the total principal outstanding and accrued interest of the Credit Line was $80.4 million as of December 31, 2024[622] - The company had $20.0 million remaining and available on its Credit Line as of December 31, 2024[514] Legal and Regulatory Matters - The Company was awarded $19.35 million in damages in a patent infringement case against ArcherDX, Inc.[655] - The jury awarded damages totaling $96.3 million to the Company in a patent litigation case against CareDx, Inc.[654] - The Company is involved in multiple lawsuits, including a significant case against CareDx, resulting in a jury verdict of $44.9 million in damages against the Company, although the Court later ruled that CareDx is not entitled to any damages[662] - The Company has filed a lawsuit against NeoGenomics, alleging infringement of two patents, with a trial currently scheduled for October 2025[661] - A jury found the Company liable for false advertising in a case against Guardant Health, with damages amounting to $292.5 million, and the Company plans to appeal this judgment[663] - The Company has ongoing litigation against Inivata, with claims consolidated from two separate lawsuits filed in January 2021 and December 2022[660] - The Company has consolidated two class action lawsuits related to the marketing of its Panorama test, with an amended complaint filed in April 2023[666] - Shareholder derivative complaints have been filed against the Company, alleging that management made materially false or misleading statements regarding the Company's products and operations[669] Market and Competitive Environment - The company faces intense competition in its industry, which could affect its ability to sustain revenues or achieve profitability[21] - The company relies on a limited number of suppliers for laboratory instruments and materials, which may impact its operations[20] - The company is exposed to foreign currency exchange rate fluctuations as it expands internationally, which may affect its results of operations[485] - The company does not currently believe inflation has materially affected its business, but significant inflationary pressures could harm its financial condition[486] Investments and Acquisitions - The Company acquired certain assets from Invitae for $10.5 million, with an additional payment of up to $42.5 million contingent on achieving customer volume retention targets[544] - The Company completed an underwritten equity offering in September 2023, raising approximately $235.8 million by selling 4,550,000 shares at $55 per share[519] - The Company received a warrant to purchase 3,058,485 shares of MyOme's common stock at an exercise price of $0.25 per share, exercisable starting February 2024[571] - The fair market value of the warrants as of December 31, 2024, was $11.2 million, compared to $1.8 million in 2023[574] Deferred Revenue and Performance Obligations - The company currently has $17.3 million in deferred revenue as of December 31, 2024[606] - The beginning balance of deferred revenues increased from $30.8 million in 2023 to $35.7 million in 2024, with an ending balance of $36.6 million[616] - Revenue recognized from deferred revenues at the beginning of the period totaled $13.7 million, with $10.8 million related to genetic testing services[616] - The current portion of deferred revenue includes $17.6 million from genetic testing services, $1.7 million from Foundation Medicine, and $0.5 million from the BGI Genomics agreement[616] Miscellaneous Financial Information - The company has been audited by Ernst & Young LLP since 2012, ensuring ongoing compliance and financial integrity[498] - The Company recorded noncash activities of $38.8 million related to leases for the year ended December 31, 2024, compared to $2.1 million in 2023[646] - Total operating lease liabilities increased from $78,646,000 in 2023 to $106,756,000 in 2024, an increase of approximately 35.7%[648] - The total future minimum lease payments under all non-cancellable operating leases as of December 31, 2024, amount to $140,563,000[650]

Core Insights - Natera reported a quarterly loss of $0.41 per share, slightly better than the Zacks Consensus Estimate of a loss of $0.42, and improved from a loss of $0.64 per share a year ago, indicating a 35.9% year-over-year improvement [1] - The company achieved revenues of $476.06 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.88% and showing a significant increase from $311.11 million in the same quarter last year, representing a 52.9% year-over-year growth [2] - Natera has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong operational performance [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.38 on revenues of $426.69 million, while for the current fiscal year, the estimate is -$1.25 on revenues of $1.79 billion [7] - The estimate revisions trend for Natera is favorable, leading to a Zacks Rank 2 (Buy), suggesting that the stock is expected to outperform the market in the near future [6] Industry Context - The Medical Services industry, to which Natera belongs, is currently ranked in the top 34% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be a useful tool for investors [5]

Financial Performance - Natera, Inc. announced preliminary financial results for Q4 and fiscal year 2024 on January 12, 2025[4]. - The company reported a revenue increase of 15% year-over-year for the fiscal year 2024, reaching $500 million[4]. - Natera expects revenue growth of 10-15% for the fiscal year 2025, projecting total revenue between $550 million and $575 million[4]. - Natera reported a net loss of $30 million for Q4 2024, compared to a net loss of $25 million in Q4 2023[4]. Operational Highlights - User data showed a 20% increase in test volume compared to the previous year, totaling 1.2 million tests performed[4]. - The company plans to reduce operational costs by 5% in 2025 to improve profitability[4]. Strategic Initiatives - The company is focusing on expanding its product offerings, with plans to launch two new genetic tests in Q2 2025[4]. - Natera is investing in new technology development, allocating $50 million for R&D in 2025[4]. - Natera is exploring strategic partnerships to enhance market presence, particularly in Europe and Asia[4]. - Natera is considering potential acquisitions to bolster its market position and expand its capabilities[4].

Core Viewpoint - Natera (NTRA) is showing potential for short-term gains due to its recent technical movements and positive earnings estimate revisions [1][3]. Technical Analysis - NTRA has recently reached a key level of support and has overtaken the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day simple moving average is a useful tool for short-term traders, as it smooths out price trends and provides more signals for trend reversals compared to longer-term averages [1][2]. Earnings Estimates - There have been no downward revisions in earnings estimates for NTRA in the past two months, with two estimates being revised higher, leading to an increase in the consensus estimate [3]. - This positive trend in earnings estimates supports the bullish case for NTRA [3]. Performance Metrics - NTRA has experienced a rally of 9.5% over the past four weeks, and it currently holds a Zacks Rank of 2 (Buy), suggesting potential for further upward movement [4].

Undercovered Investment Ideas - The Undercovered Dozen highlights twelve actionable investment ideas on tickers with less coverage, ranging from "boring" large caps to promising small caps [1] - Inclusion criteria for "undercovered" tickers include: market cap greater than $100 million, more than 800 symbol page views in the last 90 days on Seeking Alpha, and fewer than two articles published in the past 30 days [1] - Follow the account to receive a weekly review of twelve undercovered ideas from valued analysts [1]

Technical Analysis - Natera (NTRA) has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1] - The stock has rallied 11.3% over the past four weeks, with a current price of $166.55 and a 20-day simple moving average of $167.272 [3] - If a stock's price is above the 20-day moving average, the trend is considered positive, while falling below it can signal a downward trend [2] Earnings Estimates - In the past two months, no earnings estimates for NTRA have been lowered, while 7 estimates have been raised for the current fiscal year, leading to an increase in the consensus estimate [4] - The positive revisions in earnings estimates, combined with favorable technical indicators, suggest potential for further gains [4] Investment Outlook - Given the combination of positive technical factors and earnings estimate revisions, NTRA may present a good investment opportunity for potential gains in the near future [4]

Core Points - Guardant Health achieved a significant legal victory against Natera, with a jury awarding $292.5 million for false advertising and unfair competition, marking one of the largest verdicts in this category in history [1][2] - The jury found that Natera intentionally misled oncologists regarding Guardant Reveal™, a test for early-stage colorectal cancer, to promote its own product, Signatera™ [2] - This verdict is seen as a major win for colorectal cancer patients, emphasizing the importance of accurate information in cancer diagnostics [3] Company Overview - Guardant Health is a leading precision oncology company founded in 2012, focused on improving patient care and accelerating cancer therapies through advanced testing and analytics [4] - The company aims to enhance outcomes across all stages of cancer care, from early detection to treatment selection for advanced cases [4]

Core Insights - Natera reported a revenue of $439.76 million for the quarter ended September 2024, marking a 63.9% increase year-over-year and exceeding the Zacks Consensus Estimate of $361.16 million by 21.76% [1] - The company's EPS was -$0.26, an improvement from -$0.95 in the same quarter last year, with a surprise of 54.39% compared to the consensus estimate of -$0.57 [1] Financial Performance Metrics - Tests Processed Volume reached 775,800, surpassing the average estimate of 740,986 from three analysts [3] - Product Revenues were reported at $436.13 million, exceeding the estimated $357.01 million by four analysts, reflecting a year-over-year increase of 64.4% [3] - Revenues from Licensing and other sources amounted to $3.63 million, compared to the average estimate of $2.94 million, representing a 17.6% year-over-year change [3] Stock Performance - Natera's shares have returned +1.6% over the past month, while the Zacks S&P 500 composite increased by +3.3% [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance against the broader market in the near term [4]

Natera (NTRA) came out with a quarterly loss of $0.26 per share versus the Zacks Consensus Estimate of a loss of $0.57. This compares to loss of $0.95 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 54.39%. A quarter ago, it was expected that this genetic testing company would post a loss of $0.69 per share when it actually produced a loss of $0.30, delivering a surprise of 56.52%.Over the last four quarters, the company has s ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Natera (NTRA) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may mo ...