Good afternoon. Thank you for attending today's Invitae July 2022 corporate update. My name is Hannah, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad. I would now like to pass the conference over to our host, Jack Finks, Head of Investor Relations. Please go ahead. Thank you, operator, and good afternoon, everyone. Thank you for joining us today. Before we begin, I'd like to remind you that various remarks that we make on this call are not historical and constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act, including those about our vision and business model, future financial and operating results, expectations of future growth and reduction in burn rate, future products, services, our product pipeline and their timing and investments in our infrastructure and operations. It is difficult to accurately predict demand for our services and therefore our actual results could differ materially from our stated outlook. Statements on future company performance assume, among other things, that we don't conclude any additional business acquisitions, investments, restructurings or legal settlements. We refer you to our most recent 10-Q, in particular to the section titled Risk Factors for additional information on factors that could cause actual results to differ materially from our current expectations. These forward-looking statements speak only as of the date thereof. As you listen to today's conference call, we encourage you to have our press release available. To supplement our consolidated financial statements prepared in accordance with generally accepted accounting principles in the United States or GAAP, we monitor and consider several non-GAAP measures. Non-GAAP measures may include cost of revenue, gross profit, operating expense, including research and development, selling and marketing, and general and administrative, other income expense net, as well as net loss and net loss per share and cash burn. We exclude from our non-GAAP operating results as applicable among other items. Amortization of acquired intangible assets, acquisition-related stock-based compensation, post-combination expense related to the acceleration of equity grants or bonus payments in connection with the company's business combination, adjustments to the fair value of certain acquisition-related assets and liabilities, including contingent consideration and acquisition-related income tax benefits. We encourage you to review our GAAP non-GAAP reconciliations, which are available in the appendix of the slide deck, which you can access by visiting the investor section of the company's website at ir dot Invitae dot com. Now to preview today's agenda. We will begin with our new Chief Executive Officer, Ken Knight, discussing our leadership transition and strategic realignment that we have just announced. Roxi Wen, our Chief Financial Officer, will discuss our financial outlook with a high-level summary of Q2 preliminary results and updated guidance for 2022. Finally, Ken will close with some thoughts on our longer-term growth outlook and key takeaways on our go-forward vision before we turn it over to Q&A. I'm now pleased to turn the call over to Ken Knight. Ken. Thanks, Jack, and hello, everyone. Thank you for joining us on short notice. We are, of course, here to discuss the company's realigned and more focused platform approach, how we intend to execute on it, and our long-term promise and potential. What I'd like to say at the outset, and on a personal note, that I look forward to working with many of you in my new leadership capacity at Invitae. Turning to today's developments, I want to acknowledge that the actions we are taking are far-reaching and in many cases difficult given the impact on our organization. However, we are confident that a sharper, more disciplined focus on the business lines and geographies will deliver an accelerated path to positive cash flow. This in turn will fuel future investment and drive shareholder value. We are complementing this work with meaningful and accelerated reductions in cost structure and cash burn appropriate to the realities of today and the longer term. The sum total will be a focused, value-driven enterprise that will remain at the forefront of innovation and advancements in genomics. Just a few words to start regarding our leadership transition. I am truly honored to take on the role of CEO and lead this incredible organization into the future. During the last two years as COO, I've had the privilege of working together with our talented team in support of our mission. This includes driving top-line growth with a focus on higher margin business while leading initiatives to deliver productivity and lower costs, including extensive work integral to today's business realignment. Prior to joining Invitae, I spent more than 30 years leading companies through times of change, rapid growth, scaling and strategic expansion, all with a commitment to discipline and operational excellence. I'm excited to lead Invitae at this pivotal moment. I'm also pleased to welcome back Randy Scott as our chairman. Beyond being one of Invitae's founders, Randy is a true pioneer in our industry, and we will continue to benefit from his insights and experience. Together, we look forward to advancing the exceptional work of Invitae. On behalf of my fellow Invitaeans, I want to thank Sean for his inspirational leadership, his visionary drive in pursuit of something truly unique in healthcare. Personally, I thank Sean for his mentorship and his friendship throughout the past 2 years. Sean led us from a standing start to revenues approaching $500 million in only 10 years. While simultaneously building a culture and community that always puts patients first. I am delighted that Sean will remain on the board of directors going forward. Now, moving on to the key operational and financial topics. The plan that we announced today follows an extensive top-down assessment of the company's strengths and competitive position, current environment, and business and clinical imperatives. It became clear in our analysis that an accelerated realignment of the full organization will provide the best and necessary path forward to realize Invitae's full potential as a leader in the genomic space. First, at a high level, we are realigning our business to optimize our portfolio and focus on business lines and geographies that will generate sustainable margins as we approach being cash flow positive. This will be coupled with immediate cost-cutting initiatives, which will result in a leaner core operation. Second, concurrent with our reduced footprint, our investment strategy will remain centered on creating a differentiated platform. In addition to seizing high margin and high growth opportunities through our testing business, we are committed to our digital offerings, but with a more purposeful, methodical approach. In the near term, this includes focusing on offerings and workflow tools that will provide value to our users and establish a strong relationship between patients and providers and our network. These initiatives are also expected to unlock new channels of business opportunities and will bridge our continued development of genome management, where we believe the ultimate transformative opportunities lie. Following the realignment, we plan to emerge with a focus on our unique differentiated strengths and pursue the three areas of integrated efforts. The genetics testing business is nascent and possesses an immense market opportunity. It is, however, highly competitive. The technologies and capabilities are converging. We will now be moving forward in selected growth areas of the market with a reformed offering that is best suited to our strengths where we can win. The result will be a more profitable, integrated testing business that will drive efficient growth and serve as an on-ramp to the Invitae data platform, maintaining robust support of the higher margin, higher growth testing opportunities in modern oncology, women's health, rare disease, and the emerging pharmacogenomics revolution. Our second focus is the expansion and integration of key digital health-based technologies and services. These are intended to serve as a bridge from our current testing platform toward our differentiated model in genetic health that will make our services more accessible, stickier, and more economically beneficial to providers and partners of all sizes. These innovations are already underway and will bridge us to what we refer to as the era of genome management, marked by a new standard in which genetic data is collected early and often throughout a lifetime to guide all wellness, medical, and other healthcare decisions. Finally, we're firmly committed to our transformative growth strategy. We will continue to invest in and build the innovative large-scale platform to support a two-sided marketplace in which the patient and their data sit in the middle of the healthcare ecosystem and benefit from the value created by individual and population-level data. Data that is housed and managed by Invitae as the trusted partner. This will include investing in the tools, partnerships, and applications that will define the emergence of genome management as a new category in healthcare, bringing to life undiscovered insights that will benefit biopharma companies, healthcare systems, payers, employers, wellness and digital health organizations, and most importantly, patients. We are confident that this three-part operational plan, focusing on our more profitable integrated testing business, expanding digital health-based technologies, and committing to the growth potential of a two-sided marketplace, is the right strategy moving forward. It is the framework for Invitae's next chapter. We also know that the industry itself is dynamic, and we will remain opportunistic within these three categories to flex and adapt as needed to optimize value. Turning to our next slide, you can see that our growth and operating plan is complemented by an accelerated drive to rightsize our business. This includes reducing our workforce and consolidating underutilized office and lab space. Based on our new portfolio focus, we have made the difficult decision to downsize the organization by more than 1,000 positions. These actions are expected to generate approximately $152 million in savings. Now, on this subject, let me take a moment to acknowledge that very difficult decisions have been made at all levels of our organization in support of the plan. These include decisions that impact our leadership team and many hardworking teammates who are greatly valued by our organization and have dedicated their time and efforts in support of our mission of transforming healthcare. It can't be overstated how amazing our team is, and we will be doing all we can to support the transition of those who are directly impacted. Second, we will be optimizing our portfolio to exit non-core or underperforming products and services that require substantial near-term spend and are too far from generating meaningful cash flow. We anticipate savings of approximately $84 million associated with this effort. Examples of product lines to be exited include our distributed kit business in oncology and IVF and women's health, among others. Specific to the kit business, the largest single element of the projected savings, we are currently engaged with external consultants and advisors to assess the available options of a potential divestiture of those assets versus some alternative form of a wind down of that business. We still believe that a distributed testing model offers advantages to some health systems and in some geographies, but under the current capital market conditions, we've determined that the logistics, the lack of common call points, and the difficulty of capturing data aren't conducive to our long-term strategy and financial objectives. Third, while we have already implemented a heightened budgeting process over the past year, we will be taking additional actions to scale back on third-party services and redundant spend. Approximately $67 million in savings is anticipated here. Lastly, we will consolidate our geographic footprint. We've been operating in more than 100 countries, and we'll narrow that focus to fewer than 12 for the near term. Focusing on geographies that generate the greatest impact and are best aligned with our long-term vision. We anticipate $23 million in savings generated from scaling back our geographic presence. Together, we estimate that these moves will provide us with approximately $326 million of annualized run rate cash burn reduction to be fully realized by the end of 2023. At the same time, in support of these initiatives, we anticipate incurring additional cash and non-cash expenses. Cash used for business realignment activities and severance is estimated to be approximately $75 to 100 million. We expect additional non-cash expenses to be recorded in the third quarter and in following quarters. Now I'll turn the call to Roxi to discuss financial implications of the realignment and our revised outlook on the near and longer term operations. Roxi. Thank you, Ken. As part of today's announcement, we have released preliminary Q2 results, including our revenue, non-GAAP gross margin, and cash burn. Revenues grew to approximately $136 million in the second quarter, slightly below our previous expectations. However, we were greatly encouraged that our non-GAAP gross margin improved considerably to an estimated level of 39% to 40% in Q2, compared to 35% to 37% in the past several quarters. This improvement also maintained pace with the trajectory we have been communicating since the beginning of the year. Looking ahead, the strategic actions we're announcing today and will be implementing over the coming 12 to 18 months, including exiting multiple business lines in approximately 100 countries, will have an impact on the top line trajectory of the business. The company will be streamlining over the coming months as we discontinue certain parts of our business and reengage with customers and partners in new ways. At this stage, taking into account the expected lost revenue in the second half from the discontinued product lines, partially offset by the growth of our remaining products, we're now expecting flat growth in the second half of 2022 compared to the first half of the year. As such, we're updating our 2022 full year revenue guidance as well. We now expect revenue to increase in the low double digits compared to our 2021 full year revenue of $460 million. On non-GAAP gross margin, thanks to various margin improvement efforts since the beginning of the year and our realignment initiatives, we expect continued improvement in non-GAAP gross margin over the next two quarters and are looking to end the year in the range of 42% to 43%. It is also important to note that the projected non-GAAP gross margin for 2022 excludes certain non-cash restructuring expenses that we expect to incur in the coming quarters as a result of the actions we're announcing today. Moving on to our cash burn trajectory. In the second quarter, we successfully lowered our cash burn by almost another $20 million over the prior quarter, tracking well with our Q1 projections. This continued our recent downward trend on cash burn. At this time, we're maintaining our previous 2022 cash burn guidance of $600 to 650 million, which now includes the majority of the cash required to implement the realignment initiative. Looking ahead into next year, we anticipate our cash burn to be in the range of $225 to 275 million, a significant reduction of $325 to 425 million from 2022. With these projections, we are confident that we would be able to extend our cash runway to the end of 2024. Back to you, Ken. Thank you, Roxy. Looking further out, we believe that 2023 will be a year of adjustment and consolidation as the year-over-year comparables will include noise from this realignment as certain lines of our business are exited and our cost savings are realized. We expect our revenue to find a base over the following 12 to 18 months, and revenue will remain flat during this time. Once we move past the effects of this transition. We expect revenue to grow annually between 15% and 25% until we reach a point of cash flow breakeven. Our objective is to continue fueling compelling top-line growth while maintaining a hyper focus on achieving positive cash flow. The programs we are focusing on should enable a growing but efficient testing business while setting up the tools to attract patients and partners into our platform, ultimately putting us in a position to capitalize on higher growth and higher margin opportunities as the network grows. Throughout this time, we anticipate guidelines and best practices will continue to evolve, and medical genetics will be adopted as standard healthcare. At that point, the true utility of our lifetime of care platform will start to take hold. Before we open up the call for questions, let me share a few parting thoughts regarding today's news and our future. First and foremost, Invitae is a vibrant, innovative business at the center of perhaps the most exciting segment of healthcare to emerge in the past century. Founders, including Sean and Randy, had the vision to see where the value could and would be created. In business, the only constant is the need for continuous change. We're making the changes necessary to realize the value from the company's core vision. Those include realigning our operations, personnel, and facilities across the company to match future spend with profitable growth opportunities. Executing cost savings initiatives that will bring down the overall spending and thereby extending our cash runway to the end of 2024. Doubling down on our differentiated vision to enable the healthcare ecosystem to step into the era of genome management. Leveraging the experience of our leadership team to execute on the realignment and subsequent years of profitable growth, innovation, and operational excellence. We look forward to keeping you updated as we move ahead. This process will take time to complete, and we will be making adjustments along the way as needed to reach our collective goals. That said, we are confident in the substantial opportunities that this plan will provide to all of our stakeholders. Operator, I'd like to open it up for questions. Certainly. If you would like to ask a question, please press star followed by one on your telephone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. The first question is from the line of Dan Brennan with Cowen. Please proceed. Great. Thanks. Thanks for taking my questions. Guys, just a couple of questions. Maybe the first one would be, you know, you're making obviously significant changes that you needed to do in order to get this cash burn under control, but how do investors get confidence that the changes you're making and the significant cuts that you're making don't create a downward spiral? Obviously, you know, there'll be culture issues and you're exiting different businesses. So just trying to maybe it's a question more on visibility. How do we as investors get visibility that, you know, the cash burn cuts or, you know, improvements that you're gonna be making don't really create more of a downward spiral for the top line, A. B, just so I understand on the revenue trajectory, the low double-digit growth this year and kind of the flattish next year, can you just tease apart, like how much of that is from divestitures versus what you're assuming for the base business? I guess that would be the second question. The third part would be on the burn for 2024, you know, the fact that you're talking about getting all the way through the end of 2024, what does that imply for for the burn in 2024 by your math? Thank you. Hi, Dan. Thanks. Thanks for the question. I'll start with the first part of the question. As I talked about when you look at the strategic intent of our plan, we're addressing strengthening our genomic testing business, and we see great revenue opportunities there. We still see solid growth there, and we see that as a high margin sustainable business. We were intentional about ensuring that we continue to invest in what we're calling our bridging digital strategy. We're gonna be opening up opportunities in different channels. Those will be pillars of our growth as well into the future as we take advantage of our digital strategy. We were intentional about ensuring that we did not, you know, take away our ability to invest into our genome management play. That's where the transformative growth is going to come from. We don't see it as a giving up on any one of those three pillars. We see it as focusing on all three and doing it in such a way that we will be able to drive you know, high margin, high quality growth, high quality revenue to fuel the future of the company. You'll see as we start to execute on that plan, that's how you'll see it come to life. You talked about the low double-digit growth. I'll let Roxi answer that question because we have talked about that. Okay. Yes, Dan, thank you for the question. For this year's guidance, we expect the second half to have flat growth over the first half, and that will end the 2022 full year in the low double digits year-over-year growth. Out of the 2022 expected full year revenue, we are expecting to have anywhere between 15% to 18% of that 2022 revenue will not be continued starting 2023. 24 burn. Yeah, 2024 burn. As we described in our script, you know, we are now fully confident that our cash on hand will, you know, we'll be able to extend our cash on hand through the end of 2024. This year we're expecting $600 to 650, and next year in the range of $225 to 275. 2024 will most likely be lower than $90. Hope that helps. Got it. Got it. Let me ask one more. Just maybe a high level question, Kenneth. Just, if you could just give us your perspective, having been with the company for a while now and the material changes that you're making in order to take the company to the next stage here. Just maybe give us some thoughts about either operationally, what you saw internally that we can't see from the outside about, you know, either the difficulty of these changes and/or maybe some of the low hanging fruit that you see. I think we saw that there were opportunities to, you know, make significant changes, but it was hard to get a vision inside the company. Just give us some perspective about, you know, given your prior experience at Amazon and GM and Caterpillar, just operationally, how much heavy lifting is there to do here? How much do you see that there really is some clear path to make these changes? Just try to give us some, you know, kind of insight about, you know, just kind of maybe from the outside looking in. Thank you. Yeah, sure, Dan. First I'd say this is that, you know, we started talking about the need to focus on generating cash in our business. We see that as an essential element for us to have, quite honestly, more control over our own destiny. We started this journey really last year. We started focusing on, you know, transforming our go-to-market. We're no longer chasing volume at all costs. I think you've seen it already in 2022 when you look at the fact that we projected to reduce our cash burn by $200 to 250 million off of last year. The work to do this was already underway. I think what we realized, though, was that we had to do much more and we had to do it faster. The actions we're taking now are, you know, they're significant. We're trying to take $326 million of cost out and still continue to drive a healthy business. It's not like we're just starting that action now or the focus on improving our cash position now. We've been focusing on it for a while. The confidence that I have is that as we've started to really get more keen on our priorities, we've actually started to deliver. You know, we've seen these benefits in our stabilizing gross margins, and we've seen the benefit in reducing cash burn. That gives us confidence that we can do that. I'd also say that I look at this as like the power of and. This is not a trade-off between can we build a healthy business or can we build a growth scenario for the company. We believe we can do both of those, and that's exactly what we're gonna be setting out to do, to drive a healthy business and continue to you know go in a place where we believe genomics is going in the future of healthcare. We look at it as yes, it's a big task. As I said in the preview, this is significant impact on the men and women of Invitae. We don't take that lightly, but we believe this is the right thing to do at this time in the history of the company. Got it. Maybe last one. On the term loan and the convert that are coming due, I didn't hear those addressed throughout all the discussion, but how do we think about the plan to handle those coming maturities? Yeah. With the realignment we're doing where, again, we're comfortable cash on hand will extend us through 2024, end of 2024. We do realize that the converts and as well as you know, the upcoming senior debt is weighing on our stock. We are having a lot of conversations with multiple parties to you know, learn the most optimal option to have a strong and flexible balance sheet as soon as we can. We're working on that. Great. Thank you. Thank you, Mr. Brennan. The next question is from the line of Tejas Savant with Morgan Stanley. Please proceed. Hey, guys. Good evening. Just a quick follow-up here on the cadence of the second half revenues. You do have sort of normal seasonality that you see towards year end, but then you have these business exits as well. So I'm just trying to get a sense of what the implications are for Q3 versus Q4 r oughly, if you can share that. Then I have a couple of follow-ups on the pieces that you are deciding to eliminate here. Yeah. We're not guiding, you know, Q3, Q4 at the moment. I can say, you know, it's not because of the complexity a lot of these actions we're doing. We do expect that the, you know, Q4 will have more impact on the exit business. The first half, second half is probably where we'd like investors to focus on. We're looking at a flat year and for the total year, 15% to 18% of our business will not continue next year. The second half is, it's a combination of, you know, natural growth we normally experience and offset by some of the exit business. Got it. On the pieces that you're deciding to stop work on here, I just wanna clarify this point. Are you shutting the entire sort of ArcherDX kit testing business? When do you expect that to actually exit the model? Is it fair to assume that the LDT versions for Stratafide and PCM specifically survive the cuts here? Yeah, that's a fair way to look at this for sure. We're specifically talking about the distributed kits that business itself. As I said, you know, we know that's a good business for different geographies and for health different healthcare systems. It's just as we looked at the alignment with our go-to-market strategy and our call points as well as the logistics of managing that, it just doesn't fit our long-term strategy. Our access to data doesn't fit it as well. Yes, what we're talking about is basically the distributed kits business, not the LDT component. Got it. On the 1,000-person sort of headcount cuts that you announced, Ken, can you just share some color on what areas of the business you're specifically focused on? Do you anticipate any disruption in sales within the businesses that you're actually planning to keep as the model undergoes this transition? Well, I'd say not like getting into too many specifics about, you know, specific areas where we're making the cuts. It's gonna be a little generally across the board. There's multiple areas where we're finding the synergies that we wanna drive in the business. We have a specific focus on ensuring that we have all the enablers to, in terms of how we're gonna be communicating with our customers and clients to ensure that we handle these actions as well as we possibly can. You know, is there some risk that there's some downward volume loss as a result of the announcements? Yes, we recognize that risk, and we're putting in steps to mitigate that as we speak. Right. One final one for me here. Ken, can you just articulate a little bit, I mean, you've spoken a couple of times in the prepared remarks about, you know, the genome management model longer term. Why do you believe that this is the right asymptote to aspire to for Invitae, just given the fact that, you know, it might be sort of 5 to 10 years before the industry is ready to support that? Is it fair to assume that you're in the near term for the next couple of years, M&A is clearly gonna take a back seat here, even the tuck-ins that you've traditionally done here over the past couple of years outside of Archer? Let me start with the rationale behind why we believe in genome management. Again, we're here to transform healthcare. That's what the vision and mission of the company was based on, using genetics as its foundation, making it accessible and affordable. You know, decisions about health will be improved significantly for the world with the added advantage of genetic information. We believe in that. Genome management as an enabler is what we are still committed to. That's what we're gonna continue to invest towards, and that's our vision. When you. What was the second part of your question? I'm sorry. Oh, the M&A piece. The second part was just on M&A. Yeah. Yeah. We view it as an opportunistic play. We're not going to be you know, overly dependent on M&A to grow our company. We're gonna grow it organically. We also are not going to miss opportunistic situations as they present themselves to us as well. We know we really have to get our core foundational business in a healthier space than it is today, and that's what a big portion of our actions are doing to generate cash to fuel the future of the company. That's how I see these actions. I wouldn't overread into are we gonna be doing more or less M&A? I don't think any company has predetermined their M&A strategy. We don't have a predetermined strategy either. We will be opportunistic as it shows, but we are just as focused on growing Invitae organically. Got it. Thanks, guys. Appreciate the time. Thank you. Thank you. Our next question is from the line of Brian Weinstein with William Blair. Please proceed. Hey, guys. Good afternoon. Thank you so much for taking the questions. A couple from me. Some are clarifications from prior questions, so I apologize. You've outlined things pretty thoroughly on the cost side. I think the last couple questions try to get to a little bit more specifics on the products that you're cutting that shakes out, I think, about $100 million in the second half versus what was expected. It may be in the slides, if for some reason I can't get them to load. Can you be more specific about that 15% to 18%? What products specifically are you getting out of? Or is that just mostly geographic that you're getting out of? Just any more context on what makes up that 15% to 18% and where is that 15% to 18% off of? Is that off of end of 2021, first half 2022, annualized end of 2022? It wasn't clear to me what that 15% to 18% reduction should be off of. I have a follow-up after that. Thanks. Thanks, Brian. Yeah, the 15% to 18% is of the total expected 2022 annual revenue. We said the first half so far based on our Q2 preliminary release, we're looking at a first half of $260 million, and we expect the second half to be flat. Then the 15% to 18% is based on the annualization of the combined first half and second half. As far as what we're exiting, you know, Ken mentioned in his remarks about the distributed kits business, you know, sort of just to again unpack what he said, it's not the LDT business. It's just really the distributed part of the kits, you know, of our oncology business. You know, we'll also have our IVF as an example in our women's health and exiting of our international, so approximately about 100 countries. Yeah. Those are the big parts. There are some other things, but. Okay. Just on the kit business and the sale there, any idea of the timeframe? Are there other assets that are potentially saleable here, or are these things going to be shut down? Then I'll just ask the other questions while I have it just to kind of make sure we get them in. On the converts, I recognize you guys are gonna talk about trying to restructure those, but I'm not familiar with all the covenants that are in there. Is there anything that you're doing today, any actions that you're taking that have any impact on any covenants that may be there or may change those agreements in any way, just by the way that they're written? The last question from me is, you have a lot of folks that are very familiar with Invitae that are handling this restructuring, and I think, you know, that that's a positive. But was there any thought to bringing folks outside of the company who may have a different perspective or may have specific restructuring experience of this kind of size in order to make sure that this goes smoothly? Sorry for all the questions. I just wanted to get them all in. Thank you. Again, the kits business, I think your question was, are there other assets that are associated with the kits business? Is that your question, Brian? No, it was more if I heard you right, that there was a potential to sell that kit business, if I heard you correctly, that it wasn't just shutting down, that there may be some opportunities. Are there other businesses that you have that have potential value to others that may go through some sort of a sale process? I didn't hear you mention that. I'd say that the announcements, the actions we've placed in the announcement today are the actions that we have on our mainstream plan. You should read into that as that's what the plan is, Brian. Look, this isn't an asset fire sale at Invitae. We have great assets, and we're gonna continue to build those to the future of the company. We've identified the assets off as the kits, specifically because as I said, the call points don't align, the logistics are difficult and our long-term strategy for data are not fulfilled. And then we also talked about exiting our IVF business, and moving forward. That's how I would read it. This isn't. We don't have plans for, you know, further asset sales or anything like that at this point. What we've announced is what we have in the plan. You know, the restructuring experience, first of all, we look at this as a realignment of our operational plan. As I said earlier, the continuation of a realignment that has already begun. I'm confident in the management team that we have here, the leadership team and the employees that are gonna remain, that we built a plan that satisfies multiple things that we were trying to accomplish. I think we're gonna be able to deliver that plan. That's how we're looking at it. The team spent a countless amount of hours, Brian, evaluating the alternatives for the company and the options for the company within the parameters that we gave them. I'm pretty confident that we've got the right plan. Thank you. Your last question is on the debt covenant side and we're not. Yeah. Thank you. Our next question comes from the line of Puneet Souda with SVB Securities. Please go ahead. Yeah, hi, Ken, Roxy, thanks for the questions. Obviously, I mean, as was mentioned earlier, I mean, this is a $100 million reduction in 2022, which is what we had and what Street had, and I think well over $200 million reduction in 2023. Just wanted to clarify, you made comments around 15% to 18%, and that was around revenue. You know, just looking at a sort of overall volume reduction versus ASP reduction, obviously, you are exiting things that are more, I mean, that are unprofitable or they're not paid for. ASP should lift, but just wondering if you can provide any color into what that volume and ASP assumption is here. I think, you know, kind of bigger question is, you know, why this is the right revenue growth number, because you're still in a very competitive genetic testing market. Either what gives you confidence that you won't lose further market share after realignment and why don't you think it will trigger further departures from the organization as a result of the realignment here? I'll start with maybe the second half of that. Why would we are we concerned that we would have further departures from the company? I mean, look, our team is here because we believe in the mission of our company. We believe in what we are doing on behalf of patients around the world. We are confident that a stronger, healthier Invitae is better for all of the remaining employees of Invitae. That's how we are looking at it, Puneet, is that, you know, getting a better, healthier company is will motivate and inspire the people who are here to do the mission of Invitae. You know, the question about why would we not lose further share, I mean, that's a great question. It's full of some maybe some hypotheticals that I can't really predict on. I would just tell you that we focused on the businesses where we are winning and where we can win. There's no reason for us to believe that that still can't be the narrative about Invitae. We have a fantastic hereditary cancer business. Our oncology business is second to none in many of the aspects that we're in, and we're going deeper into new territories for our oncology business, the products that we're offering. We feel good about it. You know, the women's health business is doing well as also. We think we picked the right businesses, the healthiest part of the company to grow. We're not doing it in a way that we still can't go explore new channels, new business as well. That's how I feel about it. I know that's not necessarily completely gonna. You know, we have to show you what we can do, and that's what we're gonna plan to do. Okay. Thank you. As far as your ASP and volume part. Yes, please. As far as your ASP and volume question, we'll report those when we close the second quarter and the second half of the year. You'll see those in the filings. Okay. If I could just wrap sort of two questions into one. Ken, one of the things that Invitae's you know core business differentiated upon was menu expansion over the years and also price rationalization, which usually meant obviously providing unprofitable or unpaid tests for a long time before they generated revenue or you know became profitable. Now that you can't do that, I mean, when you look at the business overall, having spent the time here since you joined you know what do you see as Invitae's competitive differentiation in the market going forward? Just to follow up for Roxi, just on agreements that you had with other companies, such as sequencing companies and whatnot, where you were trying to build sequencers, as part of those agreements. Just wanted to clarify, are those still in place or those are terminated as a result of this? Thank you. Okay. Thank you. You know, we still have a very broad portfolio. It's not like we've contracted down to just one product line. We still have a broad portfolio. We still believe that the utility of genetics presented in an affordable and accessible way for the population of the world is the right approach to this. I think ultimately, we are concluding that we don't have to do it all, though. We don't have to cover every clinical area for every potential outcome. The places where we are going to be operating and competing, we're gonna do it exceptionally well. We still have a very broad portfolio, and so I don't think that changes our approach to how we wanna serve our patient community. I just think we wanna do it in a more focused and sustainable way. On the question with agreement with other sequencing companies, I think, you know, you're referring to the PacBio agreement. We have come to agreement with PacBio on this quarter, and it's, you know, there's the press release and filings out there. The long and short of this is we would not have ongoing financial obligations as a result of this amendment. We continue to work together with the, you know, joint vision as to what this can be. Yeah. I mean, it hasn't been mentioned much in the call yet, but you know, we still also. I talked about it in my opening. We still believe there's a fantastic opportunity in pharmacogenomics as well. Again, to the point of you know, our offering and are we broad, you know, we're gonna be still exploring opportunities, and we believe that you know, the advent of pharmacogenomics is gonna become a differentiator for us as well. Okay. Thanks, guys. Thank you. Our next question is from the line of Matthew Sykes with Goldman Sachs. Please proceed. Hi, good afternoon. Thanks. Taking my questions. Maybe, Ken, the first one for you, just the 12 to 18-month timeframe for realignment, what do you see as potential risks or bottlenecks to that timeframe where it could extend or on the other side accelerate? Just narrowing it, just thinking of the geographic footprint from 100 countries to 12, could that take longer and extend this realignment or are there other areas where you feel there might be risk to the extension of that realignment timeframe? Yeah, I mean, so we're gonna make sure we do this in a way that honors our commitment to our clients and patients that we have around the world. I mean, I think there's some macroeconomic implications that we all are staring in the face right now when it comes to, you know, inflationary pressures around the world that we're seeing, and, you know, the implications on that. Does that have an impact on volume and growth opportunities is probably something more so than I'm concerned that we can't execute on the cost out plans that we have. I think we have strong plans, and I think we have the capability to deliver on those. There's some macroeconomic things that we don't have total control over that may impact, you know, kind of the duration or the how it looks when we get to the other end. Got it. Roxi, just on gross margins, you outlined what your expectations are for 2022. As we think about 2023, is there any way you can help us kind of understand what the potential impact on gross margins would be in 2023? Would it be similar to what you're doing in 2022? Could there be some expansion opportunities? Will there be some contraction potentially? Just maybe help us frame how we should think about gross margins in 2023. Our long-term 50% margin goal, it stays to be the same. We are, you know, encouraged by the improvement we're seeing, you know, steady improvement quarter-over-quarter since we started this effort. You probably can see from our release numbers. As we launch into the announcement, you know, announce activities we talked about today, and this will just give us additional fuel to, you know, reach our long-term goals, maybe even go beyond. Got it. Just one more question from me. Just, you know, maybe you haven't received any feedback, but just any, current or potential feedback from some of your key customers and partners on some of these actions. I mean, obviously potentially puts you on better financial footing in the future, but at the same time you're getting out of certain product lines that might have been crucial to their operations. How do you think the customer feedback will be as you kind of look across some of your key partners? Well, honestly, I haven't heard anything yet today. We obviously just put the news out. I guess we'll go back and say that we've spent a tremendous amount of time working on plans to ensure that our customers know what we're gonna offer and what we're not going to offer. As we get those communications out. By the way, I would also say that we spent a tremendous amount of time prior to this announcement actively on listening tours with our customers to understand what do they need most out of us and how can we better serve their capabilities and needs for the future. That information has become very helpful for us as we've kind of framed out the decisions on where we were going to stay and where we were not gonna stay, and then how we proceed forward. I haven't heard anything yet today is I guess the point I would make. Tomorrow I'm sure I'll get some feedback, but I haven't heard anything today. Sure. Thank you very much for the time. Thanks, Matt. Thank you. Our next question is on the line of Julia King with JP Morgan. Please proceed. Hi, good evening, guys. I'm curious, you're sticking with your oncology, women's health, rare disease, and pharmacogenomics businesses. Given that these four businesses also have pretty different, you know, pricing and profitability dynamics, are you imposing any relative prioritization among these four businesses? That's number one. Number two, regarding the pipeline assets, I'm curious if there are any, you know, prioritization in terms of R&D activities involved as well. Yeah, I mean, we clearly know where the gross margin performances of our businesses, we know what the performance is of the marketplace. I wouldn't say we've kinda looked at them from a different priority, but they definitely get a different amount of our attention as to what it's going to take to keep them or to get them to be sustainable, healthy businesses. From that standpoint, I'd say the attention that we provide to any of our businesses is based upon their current performance and where we need them to go. That's how I would react to the question about do they get different priorities. Can I say the way we're looking to invest capital is based on those same types of lenses. Again, we have a finite amount of capital to invest in our businesses while we get to the point of getting to cash flow positive. We are going to be intelligent and intentional about making those investment decisions, because we're committed to getting to the end of 2024, extending our cash runway to the end of 2024. Okay. My follow-up is you kind of, you know, guided to the burn rate in 2023 and 2024. Do you think this represents the steady state runway? Or do you think, you know, some of the pushoff expenses will likely need to resume in the longer term when market conditions are better? Yeah, I mean, we guided 23, 24, and also the fact that we are confident now with all of these improvement actions we're taking and the work we actually kicked off, as Ken talked about since last year, are going to extend our cash runway through 2024. The business needs to be, will continue to be on the improvement trajectory to continue to our goal and pathway to find cash flow positivity. That's, that goal doesn't change and is again, right, a dynamic decision-making process as to growth, gross margin, and how much you invest to get to the, control our own destiny when it comes to capital. Got it. Besides the exited geographies for your preserved geographies, those dozen, are you planning to proactively change you know your patient mix to further enhance pricing? Or you know in general how will you balance kind of volume growth versus pricing and profitability going forward? Yeah, it's not. I think it would be too simple to say that it's only pricing. You know, we're looking at those marketplaces, and there's things that we can do to better position ourselves to just take advantage of the revenue opportunities that already are there. Some of those we have not executed on, and I think because we were a little bit too spread out, and now we're gonna be focused. We've got a list of actions for the territories, the geographies that we're remaining in. We've got a list of defined actions that are already underway to improve the performance of those geographies. I just don't want the narrative to be that it's only pricing. You're right, we have to be focused and intentional, but we've got that identified for the geographies that we're remaining in. Right. Thank you. Thank you. Our next question is from the line of Bruce Jackson with Benchmark. Please proceed. Hi. Thanks for taking my question. Looking at the $326 million cost savings, if we could look at the income statement, and could you just give us a rough idea proportionally where those cost savings are gonna come from in terms of the individual OpEx items? Yeah. Thank you for the question, Bruce. It's across the board, right? I mean, this is $326 million of costs and also working capital and gross margin improvement and all of that comes across the board from the different geographies on the P&L. On the operating expenses side, I'll say, you know, the reduction is not just in R&D. In R&D, sales, marketing, and G&A, it's that there's not one area that will support all of this or the majority of these cost cuts across the board. Would it be fair to say that there's some areas that are supporting more of the cost cuts than others? Well, you know, naturally, if you look at our 2021 baseline from a absolute dollar amount point of view, R&D consists of almost half of our total spend. That is a good starting point. Okay, that's helpful. Thank you. Thank you. There are no additional questions waiting at this time, so I will turn the call over to Ken Knight for closing remarks. Thank you all for joining us on the call today and for your support going forward. I am as excited as ever about the potential before us to deliver significant value to our stakeholders while continuing to play a transformative role in bringing genomics to modern medicine. Everybody, have a great evening. That concludes today's call. Thank you for your participation. You may now disconnect your lines.