GeneDx Announces Preliminary 2024 Financial Results

Rhea-AI Summary

GeneDx Holdings Corp. (WGS) has announced strong preliminary financial results for Q4 and full year 2024, exceeding previous guidance. The company expects full-year 2024 revenues of at least $299 million, representing a 54% year-over-year increase, and Q4 2024 revenues of at least $92 million, up 59% year-over-year and 20% sequentially.

The company's exome and genome test revenues reached at least $75.8 million in Q4 2024, showing a remarkable 93% year-over-year increase. Adjusted gross margin is expected to be at least 64% for full year 2024 and 68% for Q4. The results include a $6.8 million discrete benefit from a multi-year appeal recovery. Exome and genome test volume grew to 20,676 in Q4, representing a 32% year-over-year increase and comprising 38% of all test result volume.

Positive

• Revenue growth of 54% year-over-year to $299M for FY2024
• Q4 revenue increase of 59% year-over-year to $92M
• Exome and genome test revenue surge of 93% year-over-year in Q4
• Improved adjusted gross margin to 68% in Q4 2024
• Achievement of adjusted net income milestone
• First quarter of positive operational cash flow
• $6.8M benefit from third-party payer appeal recovery

Negative

• None.

Insights

Financial Analyst

GeneDx's preliminary 2024 results showcase remarkable financial performance, exceeding guidance across key metrics. The 54% year-over-year revenue growth to $299 million and impressive Q4 sequential growth of 20% demonstrate strong market penetration. The expansion in adjusted gross margin to 68% in Q4 2024 indicates improved operational efficiency and pricing power.

The exome and genome testing segment is particularly noteworthy, with 93% year-over-year growth in Q4 revenues reaching $75.8 million. This high-margin segment now represents 38% of test volume, suggesting a favorable revenue mix shift. The achievement of positive operational cash flow and adjusted net income marks a important inflection point toward sustainable profitability.

The $6.8 million discrete benefit from payer appeals, while one-time in nature, demonstrates effective revenue cycle management. Excluding this benefit, the underlying business fundamentals remain robust with strong volume growth and margin expansion.

Market Research Analyst

The rare disease diagnostics market represents a $1 trillion annual economic opportunity and GeneDx is strategically positioned to capture significant market share. The 32% year-over-year growth in exome and genome test volumes indicates strong market demand and physician adoption. The sequential volume growth of 7% suggests sustainable momentum in test ordering patterns.

The company's focus on high-complexity genomic testing aligns with healthcare's shift toward precision medicine. The increasing proportion of exome and genome tests in the overall mix points to successful market education and penetration in the high-value segments. The strong Q4 performance, particularly in sequencing volumes, indicates growing market acceptance of comprehensive genetic testing in clinical practice.

Expects to exceed guidance with full year 2024 revenues¹ of at least $299 million

Expects fourth quarter 2024 revenues¹ of at least $92 million

Expects to exceed guidance with full year 2024 adjusted gross margin¹ of at least 64%

Expects fourth quarter 2024 adjusted gross margin¹ of at least 68%

STAMFORD, Conn.--(BUSINESS WIRE)-- GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported preliminary financial results for the fourth quarter and full year of 2024.

“2024 was a transformative year for GeneDx, as we achieved our profitability milestone of adjusted net income, released landmark studies, strengthened our products and expanded our team to set up for the opportunity ahead,” said Katherine Stueland, CEO of GeneDx. “The economic burden of rare disease is estimated to be $1 trillion annually, with the absence of early diagnosis being a major contributor to this cost and the cause for unnecessary and avoidable suffering faced by too many families. With our differentiated capabilities, GeneDx is setting the standard for the use of genetics in healthcare. We ended 2024 with momentum and are only beginning to unlock our full potential.”

“Our Q4 performance reflects strong execution as we expect to deliver a second consecutive quarter of adjusted net income and our first quarter of positive operational cash flow,” said Kevin Feeley, CFO of GeneDx.

Preliminary Full Year and Fourth Quarter 2024 Financial Results (Unaudited)

Management expects GeneDx to report:

Revenues¹

• Revenues¹ of at least $299 million for full year 2024, an increase of 54% year-over-year (previous guidance was $284-$290 million).

• Revenues¹ of at least $92 million in the fourth quarter 2024, an increase of 59% year-over-year and 20% sequentially.

• Exome and genome test revenues of at least $75.8 million in the fourth quarter 2024, an increase of 93% year-over-year and 26% sequentially.

Gross Margin¹

• Adjusted gross margin of at least 64% for full year 2024 (previous guidance was at least 62%).

• Adjusted gross margin of at least 68% for the fourth quarter 2024, up from 64% in the third quarter of 2024.

Full year and fourth quarter 2024 revenues and adjusted gross margin includes $6.8 million of discrete benefit in connection with a multi-year appeal recovery from a single third-party payer. The fourth quarter benefit is composed of $5.8 million to exome genome revenues and $1.0 million to other test lines.

Exome and genome volume

• Exome and genome test result volume of 20,676 in the fourth quarter, an increase of 32% year-over-year and 7% sequentially with exome and genome representing 38% of all tests result volume in the fourth quarter.

1. Revenue and adjusted gross margin results from continuing operations, which excludes any revenue from the exited Legacy Sema4 diagnostic testing business. Total Company Revenue for the full year and fourth quarter 2024 are expected to be at least $302 million and $92 million, respectively.

GeneDx has not completed the preparation of its consolidated financial statements for the year ended December 31, 2024. The preliminary, unaudited results presented in this press release for the quarter and year ended December 31, 2024, are based on current expectations and are subject to adjustment, as the company completes the preparation of its 2024 year-end consolidated financial statements and its 2024 year-end audit.

GeneDx will release financial results for the fourth quarter and full year of 2024 before the market opens on Tuesday, February 18, 2025. On the same day, management will host a conference call to discuss financial and operating results at 8:30 a.m. Eastern Time.

Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the “Events” section of the GeneDx investor relations website at https://ir.genedx.com/.

Safe Harbor Statements

This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance and our market opportunity, including our preliminary, unaudited fourth quarter and full year 2024 revenue, fourth quarter and full year 2024 test result volumes, and fourth quarter 2024 operational cash flow and adjusted net income. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to implement business plans, goals and forecasts, and identify and realize additional opportunities, (ii) the risk of downturns and a changing regulatory landscape in the highly competitive healthcare industry, (iii) the size and growth of the market in which we operate, (iv) our ability to pursue our new strategic direction, and (v) our ability to enhance our artificial intelligence tools that we use in our clinical interpretation platform. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 23, 2024 and other documents filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.

About GeneDx

At GeneDx (Nasdaq: WGS), we believe that everyone deserves personalized, targeted medical care—and that it all begins with a genetic diagnosis. Fueled by one of the world’s largest rare disease data sets, our industry-leading exome and genome tests translate complex genomic data into clinical answers that unlock personalized health plans, accelerate drug discovery, and improve health system efficiencies. For more information, please visit genedx.com and connect with us on LinkedIn, X, Facebook, and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113778476/en/

Investor Relations Contact:

Investors@GeneDx.com

Media Contact:

Press@GeneDx.com

Source: GeneDx

FAQ

What was GeneDx's (WGS) revenue growth in Q4 2024?

GeneDx reported Q4 2024 revenues of at least $92 million, representing a 59% increase year-over-year and 20% sequential growth.

How much did GeneDx's (WGS) exome and genome test revenues grow in Q4 2024?

Exome and genome test revenues reached at least $75.8 million in Q4 2024, showing a 93% increase year-over-year and 26% sequential growth.

What was GeneDx's (WGS) adjusted gross margin in Q4 2024?

GeneDx achieved an adjusted gross margin of at least 68% in Q4 2024, up from 64% in Q3 2024.

How many exome and genome tests did GeneDx (WGS) perform in Q4 2024?

GeneDx performed 20,676 exome and genome tests in Q4 2024, representing a 32% year-over-year increase and 7% sequential growth.

What was the impact of the third-party payer appeal recovery for GeneDx (WGS) in 2024?

GeneDx received a $6.8 million discrete benefit from a multi-year appeal recovery, with $5.8 million allocated to exome genome revenues and $1.0 million to other test lines.