NeoGenomics Reports Third Quarter 2024 Results
NeoGenomics (NEO) reported strong Q3 2024 results with consolidated revenue increasing 10% to $168 million. Clinical Services revenue grew 14% to $146 million, while Advanced Diagnostics revenue decreased 10% to $22 million. The company achieved a 305% increase in Adjusted EBITDA to $13 million, marking its fifth consecutive quarter of positive Adjusted EBITDA. Net loss decreased 4% to $18 million. Based on strong performance, NeoGenomics raised its full-year 2024 Adjusted EBITDA guidance to $37-$40 million. Clinical test volume increased 9% year-over-year, with average revenue per test rising 5% to $463.
NeoGenomics (NEO) ha riportato risultati solidi per il terzo trimestre del 2024, con ricavi consolidati in aumento del 10% a 168 milioni di dollari. I ricavi dei Servizi Clinici sono aumentati del 14% a 146 milioni di dollari, mentre i ricavi da Diagnostica Avanzata sono diminuiti del 10% a 22 milioni di dollari. L'azienda ha registrato un incremento del 305% dell'EBITDA Rettificato, raggiungendo 13 milioni di dollari, segnando il quinto trimestre consecutivo di EBITDA Rettificato positivo. La perdita netta è diminuita del 4% a 18 milioni di dollari. Sulla base delle solide performance, NeoGenomics ha alzato le previsioni dell'EBITDA Rettificato per l'intero anno 2024 a 37-40 milioni di dollari. Il volume dei test clinici è aumentato del 9% rispetto all'anno precedente, con un ricavo medio per test che è salito del 5% a 463 dollari.
NeoGenomics (NEO) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos consolidados que aumentaron un 10% a 168 millones de dólares. Los ingresos por Servicios Clínicos crecieron un 14% hasta 146 millones de dólares, mientras que los ingresos por Diagnósticos Avanzados disminuyeron un 10% a 22 millones de dólares. La compañía logró un aumento del 305% en EBITDA Ajustado, alcanzando los 13 millones de dólares, marcando su quinto trimestre consecutivo de EBITDA Ajustado positivo. La pérdida neta se redujo un 4% a 18 millones de dólares. Con base en un desempeño sólido, NeoGenomics elevó su guía de EBITDA Ajustado para todo el año 2024 a 37-40 millones de dólares. El volumen de pruebas clínicas aumentó un 9% en comparación con el año anterior, con un ingreso promedio por prueba que subió un 5% a 463 dólares.
NeoGenomics (NEO)는 2024년 3분기 실적을 발표하며 매출이 10% 증가한 1억6800만 달러에 도달했다고 보고했습니다. 임상 서비스 매출은 14% 증가하여 1억4600만 달러에 이르렀지만, 고급 진단 서비스 매출은 10% 감소하여 2200만 달러가 되었습니다. 회사는 조정된 EBITDA에서 305% 증가를 기록하며 1300만 달러에 도달했으며, 이는 긍정적인 조정 EBITDA가 다섯 분기 연속임을 나타냅니다. 순손실은 4% 감소하여 1800만 달러가 되었습니다. 강력한 성과를 바탕으로 NeoGenomics는 2024년 전체 연도 조정 EBITDA 가이던스를 3700만에서 4000만 달러로 상향 조정했습니다. 임상 테스트 볼륨은 전년 대비 9% 증가했으며, 평균 테스트당 매출은 5% 증가하여 463달러에 달했습니다.
NeoGenomics (NEO) a annoncé de bons résultats pour le troisième trimestre de 2024, avec des revenus consolidés en hausse de 10% à 168 millions de dollars. Les revenus des Services Cliniques ont augmenté de 14% à 146 millions de dollars, tandis que les revenus des Diagnostics Avancés ont diminué de 10% à 22 millions de dollars. L'entreprise a enregistré une augmentation de 305% de l'EBITDA Ajusté, atteignant 13 millions de dollars, marquant son cinquième trimestre consécutif d'EBITDA Ajusté positif. La perte nette a diminué de 4% à 18 millions de dollars. Sur la base de performances solides, NeoGenomics a relevé ses prévisions d'EBITDA Ajusté pour l'année 2024 à 37-40 millions de dollars. Le volume des tests cliniques a augmenté de 9% d'une année sur l'autre, avec un revenu moyen par test en hausse de 5% à 463 dollars.
NeoGenomics (NEO) meldete für das dritte Quartal 2024 starke Ergebnisse mit konsolidierten Einnahmen, die um 10% auf 168 Millionen Dollar gestiegen sind. Die Einnahmen aus klinischen Dienstleistungen wuchsen um 14% auf 146 Millionen Dollar, während die Einnahmen aus fortgeschrittener Diagnostik um 10% auf 22 Millionen Dollar sanken. Das Unternehmen erzielte einen Anstieg des bereinigten EBITDA um 305% auf 13 Millionen Dollar und markierte damit das fünfte aufeinanderfolgende Quartal mit positivem bereinigtem EBITDA. Der Nettoverlust verringerte sich um 4% auf 18 Millionen Dollar. Basierend auf den starken Leistungen hob NeoGenomics seine Prognose für das gesamte Jahr 2024 für das bereinigte EBITDA auf 37-40 Millionen Dollar an. Das Volumen klinischer Tests stieg im Vergleich zum Vorjahr um 9%, wobei der durchschnittliche Umsatz pro Test um 5% auf 463 Dollar anstieg.
- Consolidated revenue increased 10% to $168 million
- Clinical Services revenue grew 14% to $146 million
- Adjusted EBITDA increased 305% to $13 million
- Average revenue per clinical test increased 5% to $463
- Gross profit increased 20.2% year-over-year
- Raised full-year 2024 Adjusted EBITDA guidance to $37-$40 million
- Strong cash position with $388 million in cash and marketable securities
- Net loss of $18 million in Q3 2024
- Advanced Diagnostics revenue decreased 10% to $22 million
- Operating expenses increased 11% to $96 million
- Lower RaDaR® revenue reported
Insights
NEO delivered a robust Q3 with notable financial improvements.
Key metrics show strengthening fundamentals:
Despite the
Adjusted EBITDA Improves
Third Quarter 2024 Highlights As Compared To Third Quarter 2023 |
|
“We delivered a strong third quarter, again growing revenue by double digits and increasing adjusted EBITDA by over
Third-Quarter Results
Consolidated revenue for the third quarter of 2024 was
Consolidated gross profit for the third quarter of 2024 was
Operating expenses for the third quarter of 2024 were
Net loss for the quarter decreased
Adjusted EBITDA(2) increased
Cash and cash equivalents and marketable securities totaled
2024 Financial Guidance(3)
The Company again revised its full-year 2024 guidance(3), as previously revised on July 29, 2024.
|
|
FY 2023 |
|
Previously Revised
|
|
Revised
|
|
YOY % Change from
|
||||||||||||||||||
(in millions) |
|
Actual |
|
Low |
|
High |
|
Low |
|
High |
|
Low |
|
High |
||||||||||||
Consolidated revenue |
|
$ |
592 |
|
|
$ |
655 |
|
|
$ |
667 |
|
|
$ |
655 |
|
|
$ |
667 |
|
|
11 |
% |
|
13 |
% |
Net loss |
|
$ |
(88 |
) |
|
$ |
(88 |
) |
|
$ |
(81 |
) |
|
$ |
(81 |
) |
|
$ |
(78 |
) |
|
8 |
% |
|
11 |
% |
Adjusted EBITDA |
|
$ |
3 |
|
|
$ |
33 |
|
|
$ |
37 |
|
|
$ |
37 |
|
|
$ |
40 |
|
|
1133 |
% |
|
1233 |
% |
______________________________________
(1) |
|
Clinical testing excludes tests and revenue for Advanced Diagnostics. |
(2) |
|
The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Use of Non-GAAP Financial Measures.” See also the tables reconciling such measures to their closest GAAP equivalent. |
(3) |
|
The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company’s securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance. |
Conference Call
The Company has scheduled a webcast and conference call to discuss its third quarter 2024 results on Tuesday, November 5, 2024 at 8:30 a.m. Eastern Time. To access the live call via telephone, interested investors should dial (888) 506-0062 (domestic) or (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 676597. The live webcast may be accessed by visiting the Investor Relations section of our website at ir.neogenomics.com. A replay of the webcast will be available shortly after the conclusion of the call and will be archived on the Company’s website.
About NeoGenomics, Inc.
NeoGenomics, Inc. specializes in cancer genetics testing and information services, providing one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company’s Advanced Diagnostics Division serves pharmaceutical clients in clinical trials and drug development.
NeoGenomics is committed to connecting patients with life altering therapies and trials. We believe that, together, with our partners, we can help patients with cancer today and the next person diagnosed tomorrow. In carrying out these commitments, NeoGenomics adheres to relevant data protection laws, provides transparency and choice to patients regarding the handling and use of their data through our Notice of Privacy Practices, and has invested in leading technologies to secure the data we maintain.
Headquartered in
Forward Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “would,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” “guidance,” “plan,” “potential” and other words of similar meaning, although not all forward-looking statements include these words. This press release includes forward-looking statements. These forward-looking statements address various matters, including statements regarding improving operational efficiency, returning to profitable growth and the Company's ongoing executive recruitment process. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to identify and recruit executive candidates, to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the Company's other filings with the Securities and Exchange Commission.
We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
NeoGenomics, Inc.
|
||||||
|
|
September 30, 2024
|
|
December 31, 2023 |
||
ASSETS |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
361,992 |
|
$ |
342,488 |
Marketable securities, at fair value |
|
|
25,821 |
|
|
72,715 |
Accounts receivable, net |
|
|
151,428 |
|
|
131,227 |
Inventories |
|
|
24,457 |
|
|
24,156 |
Prepaid assets |
|
|
18,235 |
|
|
17,987 |
Other current assets |
|
|
8,308 |
|
|
8,239 |
Total current assets |
|
|
590,241 |
|
|
596,812 |
Property and equipment, net |
|
|
93,038 |
|
|
92,012 |
Operating lease right-of-use assets |
|
|
81,442 |
|
|
91,769 |
Intangible assets, net |
|
|
348,042 |
|
|
373,128 |
Goodwill |
|
|
522,766 |
|
|
522,766 |
Other assets |
|
|
5,582 |
|
|
4,742 |
Total non-current assets |
|
|
1,050,870 |
|
|
1,084,417 |
Total assets |
|
$ |
1,641,111 |
|
$ |
1,681,229 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Accounts payable and other current liabilities |
|
$ |
92,266 |
|
$ |
90,694 |
Current portion of operating lease liabilities |
|
|
3,716 |
|
|
5,610 |
Current portion of convertible senior notes, net |
|
|
200,424 |
|
|
— |
Total current liabilities |
|
|
296,406 |
|
|
96,304 |
Long-term liabilities |
|
|
|
|
||
Operating lease liabilities |
|
|
62,172 |
|
|
67,871 |
Convertible senior notes, net |
|
|
339,956 |
|
|
538,198 |
Deferred income tax liabilities, net |
|
|
22,771 |
|
|
24,285 |
Other long-term liabilities |
|
|
11,596 |
|
|
13,034 |
Total long-term liabilities |
|
|
436,495 |
|
|
643,388 |
Total liabilities |
|
$ |
732,901 |
|
$ |
739,692 |
Stockholders’ equity |
|
|
|
|
||
Total stockholders’ equity |
|
$ |
908,210 |
|
$ |
941,537 |
Total liabilities and stockholders’ equity |
|
$ |
1,641,111 |
|
$ |
1,681,229 |
NeoGenomics, Inc.
|
||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
NET REVENUE |
|
|
|
|
|
|
|
|
Clinical Services |
|
|
|
|
|
|
|
|
Advanced Diagnostics |
|
22,041 |
|
24,401 |
|
66,860 |
|
70,513 |
Total net revenue |
|
167,824 |
|
151,954 |
|
488,566 |
|
436,091 |
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
92,944 |
|
89,643 |
|
275,723 |
|
259,075 |
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
74,880 |
|
62,311 |
|
212,843 |
|
177,016 |
Operating expenses: |
|
|
|
|
|
|
|
|
General and administrative |
|
66,969 |
|
61,486 |
|
196,094 |
|
183,343 |
Research and development |
|
7,684 |
|
5,285 |
|
23,190 |
|
20,182 |
Sales and marketing |
|
20,415 |
|
17,610 |
|
62,313 |
|
52,770 |
Restructuring charges |
|
1,009 |
|
2,125 |
|
4,951 |
|
9,883 |
Total operating expenses |
|
96,077 |
|
86,506 |
|
286,548 |
|
266,178 |
LOSS FROM OPERATIONS |
|
(21,197) |
|
(24,195) |
|
(73,705) |
|
(89,162) |
Interest income |
|
(4,673) |
|
(4,525) |
|
(14,099) |
|
(12,057) |
Interest expense |
|
1,642 |
|
1,685 |
|
4,993 |
|
5,226 |
Other (income) expense, net |
|
(317) |
|
96 |
|
(52) |
|
(520) |
Loss before taxes |
|
(17,849) |
|
(21,451) |
|
(64,547) |
|
(81,811) |
Income tax benefit |
|
(150) |
|
(2,935) |
|
(1,145) |
|
(8,169) |
NET LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
Basic |
|
126,953 |
|
125,687 |
|
126,491 |
|
125,358 |
Diluted |
|
126,953 |
|
125,687 |
|
126,491 |
|
125,358 |
NeoGenomics, Inc.
|
||||||||
|
Nine Months Ended September 30, |
|||||||
|
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net loss |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation |
|
|
29,274 |
|
|
|
27,872 |
|
Amortization of intangibles |
|
|
25,085 |
|
|
|
26,350 |
|
Stock-based compensation |
|
|
25,085 |
|
|
|
17,643 |
|
Non-cash operating lease expense |
|
|
7,022 |
|
|
|
6,860 |
|
Amortization of convertible debt discount and debt issue costs |
|
|
2,182 |
|
|
|
2,154 |
|
Impairment of assets |
|
|
333 |
|
|
|
1,703 |
|
Loss on disposal of assets, net |
|
|
63 |
|
|
|
334 |
|
Other adjustments |
|
|
141 |
|
|
|
122 |
|
Changes in assets and liabilities, net |
|
|
(28,560 |
) |
|
|
(29,133 |
) |
Net cash used in operating activities |
|
|
(2,777 |
) |
|
|
(19,737 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Purchases of marketable securities |
|
|
— |
|
|
|
(6,756 |
) |
Proceeds from maturities of marketable securities |
|
|
47,784 |
|
|
|
87,963 |
|
Purchases of property and equipment |
|
|
(29,462 |
) |
|
|
(21,695 |
) |
Net cash provided by investing activities |
|
|
18,322 |
|
|
|
59,512 |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Repayment of equipment financing obligations |
|
|
— |
|
|
|
(66 |
) |
Issuance of common stock, net |
|
|
3,959 |
|
|
|
3,350 |
|
Net cash provided by financing activities |
|
|
3,959 |
|
|
|
3,284 |
|
Net change in cash and cash equivalents |
|
|
19,504 |
|
|
|
43,059 |
|
Cash and cash equivalents, beginning of period |
|
|
342,488 |
|
|
|
263,180 |
|
Cash and cash equivalents, end of period |
|
$ |
361,992 |
|
|
$ |
306,239 |
|
Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods and when comparing those same results to those published by our peers. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income, (ii) interest expense, (iii) tax (benefit) or expense, (iv) depreciation and amortization expense, (v) stock-based compensation expense, and, if applicable in a reporting period, (vi) restructuring charges, (vii) intellectual property (“IP”) litigation costs, (viii) CEO transition costs, and (ix) other significant or non-operating (income) or expenses, net.
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
“Adjusted cost of revenue” is defined by NeoGenomics as cost of revenue before: (i) amortization of acquired intangible assets, and, if applicable in a reporting period, (ii) stock-based compensation expense.
“Adjusted gross profit” is defined by NeoGenomics as total revenue less adjusted cost of revenue.
“Adjusted gross profit margin” is defined by NeoGenomics as adjusted cost of revenue divided by total revenue.
Non-GAAP Adjusted Net (Loss) Income
“Adjusted net (loss) income” is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) amortization of intangible assets, (ii) stock-based compensation expense, and, if applicable in a reporting period, (iii) restructuring charges, (iv) IP litigation costs, (v) CEO transition costs, and (vi) other significant or non-operating (income) or expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method.
Non-GAAP Adjusted Diluted EPS
“Adjusted diluted EPS” is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.
Reconciliation of GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss (GAAP) |
$ |
(17,699 |
) |
|
$ |
(18,516 |
) |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to net loss: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
(4,673 |
) |
|
|
(4,525 |
) |
|
|
(14,099 |
) |
|
|
(12,057 |
) |
Interest expense |
|
1,642 |
|
|
|
1,685 |
|
|
|
4,993 |
|
|
|
5,226 |
|
Income tax benefit |
|
(150 |
) |
|
|
(2,935 |
) |
|
|
(1,145 |
) |
|
|
(8,169 |
) |
Depreciation |
|
9,623 |
|
|
|
9,349 |
|
|
|
29,274 |
|
|
|
27,872 |
|
Amortization of intangibles |
|
8,362 |
|
|
|
8,784 |
|
|
|
25,085 |
|
|
|
26,350 |
|
EBITDA (non-GAAP) |
$ |
(2,895 |
) |
|
$ |
(6,158 |
) |
|
$ |
(19,294 |
) |
|
$ |
(34,420 |
) |
Further adjustments to EBITDA: |
|
|
|
|
|
|
|
||||||||
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
Stock-based compensation expense |
|
8,470 |
|
|
|
7,180 |
|
|
|
25,085 |
|
|
|
17,643 |
|
Restructuring charges |
|
1,009 |
|
|
|
2,125 |
|
|
|
4,951 |
|
|
|
9,883 |
|
IP litigation costs(4) |
|
6,113 |
|
|
|
— |
|
|
|
12,356 |
|
|
|
— |
|
Other significant expenses, net(5) |
|
677 |
|
|
|
158 |
|
|
|
4,637 |
|
|
|
532 |
|
Adjusted EBITDA (non-GAAP) |
$ |
13,374 |
|
|
$ |
3,305 |
|
|
$ |
27,735 |
|
|
$ |
(5,862 |
) |
_________________
(4) |
|
For the three and nine months ended September 30, 2024, IP litigation costs include a legal fees and a settlement payment. There were no such amounts for the three and nine months ended September 30, 2023. |
(5) |
|
For the three months ended September 30, 2024, other significant (income) expenses, net, includes site closure costs, and fees related to non-recurring legal matters. For the three months ended September 30, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the nine months ended September 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the nine months ended September 30, 2023, other significant (income) expenses, net, fees related to a regulatory matter and other non-recurring items. |
Reconciliation of Segment and Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit Margin to
|
||||||||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|||||||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
Clinical Services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
145,783 |
|
|
$ |
127,553 |
|
|
14.3 |
% |
|
$ |
421,706 |
|
|
$ |
365,578 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
80,058 |
|
|
$ |
73,994 |
|
|
8.2 |
% |
|
$ |
234,996 |
|
|
$ |
213,032 |
|
|
10.3 |
% |
Adjustments to cost of revenue(6) |
|
|
(4,561 |
) |
|
|
(4,264 |
) |
|
|
|
|
(13,720 |
) |
|
|
(12,792 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
75,497 |
|
|
$ |
69,730 |
|
|
8.3 |
% |
|
$ |
221,276 |
|
|
$ |
200,240 |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
65,725 |
|
|
$ |
53,559 |
|
|
22.7 |
% |
|
$ |
186,710 |
|
|
$ |
152,546 |
|
|
22.4 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
70,286 |
|
|
$ |
57,823 |
|
|
21.6 |
% |
|
$ |
200,430 |
|
|
$ |
165,338 |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
45.1 |
% |
|
|
42.0 |
% |
|
|
|
|
44.3 |
% |
|
|
41.7 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
48.2 |
% |
|
|
45.3 |
% |
|
|
|
|
47.5 |
% |
|
|
45.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Advanced Diagnostics: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
22,041 |
|
|
$ |
24,401 |
|
|
(9.7 |
)% |
|
$ |
66,860 |
|
|
$ |
70,513 |
|
|
(5.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
12,886 |
|
|
$ |
15,649 |
|
|
(17.7 |
)% |
|
$ |
40,727 |
|
|
$ |
46,043 |
|
|
(11.5 |
)% |
Adjustments to cost of revenue(7) |
|
|
(702 |
) |
|
|
(589 |
) |
|
|
|
|
(2,115 |
) |
|
|
(1,768 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
12,184 |
|
|
$ |
15,060 |
|
|
(19.1 |
)% |
|
$ |
38,612 |
|
|
$ |
44,275 |
|
|
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
9,155 |
|
|
$ |
8,752 |
|
|
4.6 |
% |
|
$ |
26,133 |
|
|
$ |
24,470 |
|
|
6.8 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
9,857 |
|
|
$ |
9,341 |
|
|
5.5 |
% |
|
$ |
28,248 |
|
|
$ |
26,238 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
41.5 |
% |
|
|
35.9 |
% |
|
|
|
|
39.1 |
% |
|
|
34.7 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
44.7 |
% |
|
|
38.3 |
% |
|
|
|
|
42.2 |
% |
|
|
37.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
167,824 |
|
|
$ |
151,954 |
|
|
10.4 |
% |
|
$ |
488,566 |
|
|
$ |
436,091 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
92,944 |
|
|
$ |
89,643 |
|
|
3.7 |
% |
|
$ |
275,723 |
|
|
$ |
259,075 |
|
|
6.4 |
% |
Adjustments to cost of revenue(6)(7) |
|
|
(5,263 |
) |
|
|
(4,853 |
) |
|
|
|
|
(15,835 |
) |
|
|
(14,560 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
87,681 |
|
|
$ |
84,790 |
|
|
3.4 |
% |
|
$ |
259,888 |
|
|
$ |
244,515 |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
74,880 |
|
|
$ |
62,311 |
|
|
20.2 |
% |
|
$ |
212,843 |
|
|
$ |
177,016 |
|
|
20.2 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
80,143 |
|
|
$ |
67,164 |
|
|
19.3 |
% |
|
$ |
228,678 |
|
|
$ |
191,576 |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
44.6 |
% |
|
|
41.0 |
% |
|
|
|
|
43.6 |
% |
|
|
40.6 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
47.8 |
% |
|
|
44.2 |
% |
|
|
|
|
46.8 |
% |
|
|
43.9 |
% |
|
|
_______________
(6) |
|
Clinical Services cost of revenue adjustments for the three months ended September 30, 2024 includes |
(7) |
|
Advanced Diagnostics cost of revenue adjustments for the three months ended September 30, 2024 includes |
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss and GAAP EPS to Non-GAAP Adjusted EPS
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss (GAAP) |
$ |
(17,699 |
) |
|
$ |
(18,516 |
) |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to net loss, net of tax: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
8,362 |
|
|
|
8,784 |
|
|
|
25,085 |
|
|
|
26,350 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
Stock-based compensation expense |
|
8,470 |
|
|
|
7,180 |
|
|
|
25,085 |
|
|
|
17,643 |
|
Restructuring charges |
|
1,009 |
|
|
|
2,125 |
|
|
|
4,951 |
|
|
|
9,883 |
|
IP litigation costs(8) |
|
6,113 |
|
|
|
— |
|
|
|
12,356 |
|
|
|
— |
|
Other significant expenses, net(9) |
|
677 |
|
|
|
158 |
|
|
|
4,637 |
|
|
|
532 |
|
Adjusted net income/(loss) (non-GAAP) |
$ |
6,932 |
|
|
$ |
(269 |
) |
|
$ |
8,712 |
|
|
$ |
(18,734 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share (GAAP) |
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
(0.14 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.59 |
) |
Adjustments to diluted loss income per share: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
0.07 |
|
|
|
0.07 |
|
|
|
0.20 |
|
|
|
0.21 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
0.07 |
|
|
|
0.06 |
|
|
|
0.20 |
|
|
|
0.14 |
|
Restructuring charges |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.08 |
|
IP litigation costs(8) |
|
0.05 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
Other significant expenses, net(9) |
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Rounding and impact of diluted shares in adjusted diluted shares(10) |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
Adjusted diluted EPS (non-GAAP) |
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
0.07 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computation of adjusted diluted EPS: |
|
|
|
|
|
|
|
||||||||
Diluted common shares (GAAP) |
|
126,953 |
|
|
|
125,687 |
|
|
|
126,491 |
|
|
|
125,358 |
|
Dilutive effect of options, restricted stock, and converted shares(11)(12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted diluted shares outstanding (non-GAAP) |
|
126,953 |
|
|
|
125,687 |
|
|
|
126,491 |
|
|
|
125,358 |
|
_______________
(8) |
|
For the three and nine months ended September 30, 2024, IP litigation costs include legal fees and a settlement payment. There were no such amounts for the three and nine months ended September 30, 2023. |
(9) |
|
For the three months ended September 30, 2024, other significant (income) expenses, net, includes site closure costs, and fees related to non-recurring legal matters. For the three months ended September 30, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the nine months ended September 30, 2024, other significant (income) expenses, net, includes site closure costs, severance costs, and fees related to non-recurring legal matters. For the nine months ended September 30, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. |
(10) |
|
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. |
(11) |
|
In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. |
(12) |
|
In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. |
Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures
(in thousands, except per share amounts)
(unaudited)
GAAP net loss in 2024 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, (iii) restructuring charges, and (iv) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share.
The following table reconciles the Company’s 2024 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS:
|
Year Ended December 31, 2024 |
||||||
|
Low Range |
|
High Range |
||||
Net loss (GAAP) |
$ |
(81,000 |
) |
|
$ |
(78,000 |
) |
Amortization of intangibles |
|
33,000 |
|
|
|
33,000 |
|
Stock-based compensation expenses |
|
33,000 |
|
|
|
33,000 |
|
Restructuring charges |
|
6,000 |
|
|
|
6,000 |
|
Other one-time expenses |
|
19,000 |
|
|
|
19,000 |
|
Adjusted net income (non-GAAP) |
|
10,000 |
|
|
|
13,000 |
|
Interest and taxes |
|
(12,000 |
) |
|
|
(12,000 |
) |
Depreciation |
|
39,000 |
|
|
|
39,000 |
|
Adjusted EBITDA (non-GAAP) |
$ |
37,000 |
|
|
$ |
40,000 |
|
|
|
|
|
||||
Net loss per diluted share (GAAP) |
$ |
(0.64 |
) |
|
$ |
(0.61 |
) |
Adjustments to net loss per diluted share: |
|
|
|
||||
Amortization of intangibles |
|
0.26 |
|
|
|
0.26 |
|
Stock-based compensation expenses |
|
0.26 |
|
|
|
0.26 |
|
Restructuring charges |
|
0.05 |
|
|
|
0.05 |
|
Other one-time expenses |
|
0.15 |
|
|
|
0.15 |
|
Rounding and impact of diluted shares in adjusted diluted shares(13) |
|
— |
|
|
|
(0.01 |
) |
Adjusted diluted EPS(14) (non-GAAP) |
$ |
0.08 |
|
|
$ |
0.10 |
|
|
|
|
|
||||
Weighted average assumed shares outstanding in 2024: |
|
|
|
||||
Diluted shares (GAAP) |
|
127,000 |
|
|
|
127,000 |
|
Options, restricted stock, and converted shares not included in diluted shares(14) |
|
— |
|
|
|
— |
|
Adjusted diluted shares outstanding (non-GAAP) |
|
127,000 |
|
|
|
127,000 |
|
_________________
(13) |
|
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. |
(14) |
|
For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. |
Supplemental Information
|
|||||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||
Clinical(15): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of tests performed |
|
314,564 |
|
|
289,637 |
|
8.6 |
% |
|
|
927,061 |
|
|
870,229 |
|
6.5 |
% |
Average revenue/test |
$ |
463 |
|
$ |
440 |
|
5.2 |
% |
|
$ |
455 |
|
$ |
420 |
|
8.3 |
% |
_________________
(15) |
|
Excludes tests and revenue for Advanced Diagnostics. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105211614/en/
NeoGenomics, Inc.
Kendra Sweeney
Vice President, Investor Relations and ESG
Kendra.sweeney@neogenomics.com
T: +1-239-877-7474
Source: NeoGenomics, Inc.
FAQ
What was NeoGenomics (NEO) revenue growth in Q3 2024?
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