Nvta q3 2016 earnings

1. © 2016 Invitae Corporation. All Rights Reserved. 1
INVITAE:
Bringing genetic information into
mainstream medical practice
TH IR D QU ARTER EAR N IN GS C ALL
N OVEMBER 7, 2016

2. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 2
Safe harbor statement
This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements
relating to the company’s expectations regarding its ability to obtain reimbursement; the company’s beliefs regarding its positioning in the market; the
company’s expectations regarding being cash flow positive; future financial and performance levels; the indicators of the company’s success and its expected
actions with respect to those indicators; the company’s belief that it has industry-leading market share in the genetic testing industry; the company’s
prioritization of driving revenue; the company’s expectation that it will begin to operationalize contracts with major payers, and that payment rates and volume
will increase throughout 2017 and beyond; the utility of genetic testing and its impact on diagnoses and patient outcomes; the applicability and utility of the
research studies to diagnoses and patient outcomes; the ultimate functionality, features, availability and processes used by the Invitae apps and the Helix
marketplace; and the company’s beliefs with respect to the benefits of the Invitae apps and the Helix marketplace. Forward-looking statements are subject to
risks and uncertainties that could cause actual results to differ materially, and reported results should not be considered as an indication of future
performance. These risks and uncertainties include, but are not limited to: risks associated with the company’s ability to develop and commercialize new tests
and expand into new markets; the company’s ability to use rapidly changing genetic data to interpret test results accurately, consistently and quickly; the
company’s history of losses; the company’s need to scale its infrastructure in advance of demand for its tests and its ability to increase demand for its tests;
the company’s ability to drive revenue; the company’s ability to successfully operationalize payer contracts; the company’s ability to achieve and maintain
positive cash flows and to execute its strategy to create a profitable long term business; the risk that the company may not obtain or maintain sufficient levels
of reimbursement for its tests; laws and regulations applicable to the company’s business, including potential regulation by the Food and Drug Administration;
that Medicare may change the pricing or other terms for reimbursement, or not reimburse the company for other tests in the future; the risk that the
company’s apps on the Helix platform are not ultimately launched; and the other risks set forth in the company’s filings with the Securities and Exchange
Commission, including the risks set forth in the company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016. These forward-looking
statements speak only as of the date hereof, and Invitae Corporation disclaims any obligation to update these forward-looking statements.
NOTE: Invitae and the Invitae logo are trademarks of Invitae Corporation. All other trademarks and service marks are the property of their respective owners.

3. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 3
Consistent execution positioned us to drive revenue to cash flow positive
 Reduced COGS from $500 to $450 in the quarter
 Expanded to more than 1,000 genes in production
 ~200% year-over-year growth: increased volume to approximately 15,200
billable reports per quarter
 Billing at an annual run rate of ~$70M, rapidly growing
 Over 200% growth in cancer business, over 400% in the rest

4. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 4
41M
Covered lives: now at more than 160 million
0.0M 0.0M 0.1M
0
4.5M 4.5M4.5M
95M100 million
50 million
5.5M5.5M5.5M
160M
150 million

5. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 5
Over the next two years you will see us emerge from
a disruptive concept -- bringing genetics into
mainstream medicine -- into a rapidly growing business
generating positive cash flow by the end of 2018

6. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 6
Introducing new indicators of success
 Volume
 Value of billable tests
 Revenue and revenue per test at ~90 days payable
 Average COGS per sample
 Gross margin per sample
 Opex with breakout
 Change in cash

7. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 7
$118 $301 $310
$876 $1,200
$1,800 $2,200
$3,200
$4,000
$5,600
200 500
1,100
1,800 2,200
4,500
5,100
7,200
9,700
12,000
Billable tests
Revenue ($k)
 Approximately $71.4
million in cash, cash
equivalents, restricted cash
and marketable securities
at September 30, 2016
 Expenses are incurred
for tests in the period
in which the test is
conducted
 Billable test numbers and
revenues are approximate
Strong volume growth, with revenue following
15,200
$6,300

8. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 8
Improving our gross margins by decreasing COGs
Grossmarginperbillablereport
($100)
($300)
$0
-$74
Q2 2016
($500)
-$64
Q3 2016
-$342
Q3 2015
-$335
Q4 2015
-$209
Q1 2016
-$465
Q2 2015

9. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 9
Operating efficiency:
growing volume while holding costs steady
Q3 2016Q3 2015 Q4 2015 Q1 2016 Q2 2016Q2 2015Q1 2015
%Revenue
100
300
500
0
700
$0.0
$2.0
$6.0
$4.0
Revenue($M)
R&D Commercial G&A Revenue
$6.3M

10. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 10
Now that we have concluded contracts with a critical
mass of third party payers, we are confident that
we can build a genetic testing business that will
generate positive cash flows by the end of 2018

11. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 11
In my experience, the pace at which we have
converted payers in the last several months
is unprecedented and reflects a transition in the industry
to a more modern billing and pricing system

12. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 12
Dramatic growth across all clinical areas
Q3 2016Q4 2015 Q1 2016 Q2 2016
3,000
2,000
1,000
0
900
1,500
2,500
3,200
Q3 2016Q4 2015 Q1 2016 Q2 2016
12,000
8,000
4,000
0
6,300
8,500
9,500
12,000
Quarterly oncology billable tests* Quarterly non-oncology billable tests*
*Billable test numbers are approximate.*Billable test numbers are approximate.

13. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 13
Advocacy organizations
Invitae’s network: established and growing
Biopharmaceutical
Payers & others
Platform

14. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 14
Invitae is no longer a concept story -- but a
company with what we believe is the fastest
growing market share in the genetic testing industry
and a clear path to becoming cash flow positive

15. CONFIDENTIAL © 2016 Invitae Corporation. All Rights Reserved. 15
 Reduced COGS from $500 to $450 in the quarter
 Expanded to more than 1,000 genes in production
 ~200% year-over-year growth: increased volume to approximately15,200 billable reports per
quarter
 Billing at an annual run rate of ~$70M, rapidly growing
 Over 200% growth in cancer business, over 400% in the rest
 Significantly expanded in network coverage to more than 160 million lives
 Building genome network with biopharma, advocacy, payers, clinicians and industry partners
 Guiding towards positive cash flow by end of 2018
Consistent execution positioned us to drive revenue to cash flow positive