GeneDx Reports Fourth Quarter and Full Year 2023 Financial Results and Issues Guidance for Full Year 2024
- Strong fourth quarter 2023 financial results for GeneDx with revenue of $58.1M
- 68% growth in exome and genome test revenue
- Adjusted gross margins of 56% in fourth quarter 2023
- Narrowed adjusted net loss to $17.8M and reduced cash burn by 51% year-over-year
- Guidance for FY 2024 revenue between $220M and $230M with a path to profitability in 2025
- None.
Insights
The report from GeneDx Holdings Corp. showcases a significant year-over-year growth in revenue, particularly from exome and genome test revenue, which is indicative of the company's increasing market penetration in the genomic diagnostics sector. The expansion of adjusted gross margins to 56% reflects improved operational efficiency and cost management, which are pivotal for the company's path to profitability. The projection of FY 2024 revenue between $220M and $230M, along with the expectation to turn profitable in 2025, provides a positive outlook for investors and may influence stock valuations.
Moreover, the 51% reduction in cash burn year-over-year is a vital indicator of the company's enhanced financial discipline and strategic cost-saving measures, which include workforce reductions and the realignment of the organization's priorities. These actions, coupled with the new credit facility agreement with Perceptive Advisors, improve the company's liquidity and financial stability, potentially increasing investor confidence in the company's long-term viability.
GeneDx's focus on exome and genome testing represents a strategic move to capitalize on the growing demand for personalized medicine and genomic data interpretation. The increase in test volume and revenue in this segment demonstrates the company's competitive positioning and ability to capture market share. Furthermore, the company's involvement in peer-reviewed research and partnerships with medical institutions and technology companies like PacBio and Google Health underscores its commitment to innovation and collaboration, which can drive future growth and market leadership.
Additionally, the company's engagement with state Medicaid programs to expand coverage for genetic testing indicates a broader acceptance and integration of such tests into healthcare systems, which could lead to increased demand and revenue streams for GeneDx. Their collaboration on the GUARDIAN study and other research initiatives also showcases the potential for early genetic diagnoses and could pave the way for new market opportunities in newborn screening and pediatric care.
The reported growth in the exome and genome test segment by GeneDx has significant implications for the medical community and patients alike. The company's advancements in this area, including the demonstration that exome sequencing outperforms multi-gene panels for epilepsy patients, could influence clinical practices and encourage the adoption of more comprehensive genetic testing in various medical conditions. The reduction in variants of unknown significance (VUS) reported through exome and genome sequencing, as published in Genetics in Medicine, may lead to more precise diagnoses and tailored treatments, which is a key driver in the field of precision medicine.
GeneDx's milestone of over 1,000 publications in peer-reviewed journals highlights the company's role in advancing scientific knowledge and its potential to contribute to the development of new therapies and diagnostic tools. Such contributions can not only bolster the company's reputation but also create avenues for future research collaborations and biopharma partnerships, furthering the application of genomic data in healthcare.
Reported fourth quarter 2023 revenue from continuing operations1 of
Expanded fourth quarter 2023 adjusted gross margins2 from continuing operations to
Narrowed fourth quarter 2023 adjusted net loss2 to
Issued guidance to deliver between
GeneDx to host conference call today at 4:30 p.m. ET
STAMFORD, Conn., Feb. 20, 2024 (GLOBE NEWSWIRE) -- GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic and clinical insights, today reported its financial results for the fourth quarter and full year of 2023.
“Our strong fourth quarter results were a product of our relentless focus on exome and genome revenue growth, uplift from gross margin expansion, and continued efforts to meaningfully reduce our cash burn,” said Katherine Stueland, Chief Executive Officer of GeneDx. “With our focus and disciplined approach to delivering on our goals in 2024, we are confident in our ability to continue to execute and reach profitability in 2025.”
Fourth Quarter and Full Year 2023 Financial Results (Unaudited)1,2,3
Revenues
Fourth quarter 2023:
- Revenues from continuing operations grew to
$58.1 million , an increase of27% year-over-year and15% sequentially.- Total company revenues were
$57.4 million .
- Total company revenues were
- Exome and genome test revenue grew to
$39.2 million , an increase of68% year-over-year and15% sequentially.
Full year 2023:
- Revenues from continuing operations grew to
$194.4 million , an increase of59% year-over-year and14% year-over-year on a pro-forma basis3.- Total company revenues were
$202.6 million .
- Total company revenues were
- Exome and genome test revenue grew to
$124.3 million , an increase of43% year-over-year on a pro-forma basis3.
Exome and genome volume
Fourth quarter 2023:
- Exome and genome test results volume grew to 15,663, an increase of
99% year-over-year and19% sequentially. - Exome and genome represented
27% of all test results, up from16% in the fourth quarter of 2022 and up from23% in the third quarter of 2023.
Full year 2023:
- Exome and genome test results volume grew to 49,439, an increase of
62% year-over-year on a pro-forma basis3. - Exome and genome represented
22% of all test results, up from17% for the full year 2022 on a pro-forma basis3.
Gross margin
Fourth quarter 2023:
- Adjusted gross margin from continuing operations expanded to
56% , up from41% in the fourth quarter of 2022 and up from48% in the third quarter of 2023.- Total company gross margin was
53.6% .
- Total company gross margin was
- Exome and genome adjusted gross margin operated in excess of
60% .
Full year 2023:
- Adjusted gross margin from continuing operations expanded to
45% , up from39% for full year 2022.- Total company gross margin was
44.4% .
- Total company gross margin was
- Exome and genome adjusted gross margin operated in excess of
60% .
Operating expenses
Fourth quarter 2023:
- Adjusted total operating expenses reduced to
$48.3 million , a decrease of36% year-over-year.- Total GAAP operating expenses were
$54.4 million .
- Total GAAP operating expenses were
Full year 2023:
- Adjusted total operating expenses reduced to
$216.3 million , a decrease of33% year-over-year.- Total GAAP operating expenses were
$253.0 million .
- Total GAAP operating expenses were
Net loss
Fourth quarter 2023:
- Adjusted net loss narrowed to
$17.8 million , an improvement of76% year-over-year and16% sequentially.- GAAP net loss was
$25.8 million .
- GAAP net loss was
Full year 2023:
- Adjusted net loss narrowed to
$126.3 million , an improvement of53% year-over-year.- GAAP net loss was
$175.8 million .
- GAAP net loss was
Cash burn and cash position
- Excluding one-time items, representative continuing operations cash burn was
$23.9 million in the fourth quarter of 2023. Total net use of cash, excluding net financing proceeds, was$32.9 million in the fourth quarter of 2023, an improvement of51% year-over-year and22% sequentially. The use of cash in the fourth quarter included$5 million in scheduled payments under the Legacy Sema4 payer settlement entered into in 2022,$3 million to discharge operating payables for the exited reproductive health business and$1 million in severance payments related to the previously announced cost reduction initiative. - Cash, cash equivalents, marketable securities and restricted cash was
$131.1 million as of December 31, 2023.
- Revenue and gross margin results from continuing operations, which we believe are representative of our ongoing business strategy exclude any revenue and cost of goods sold of the exited Legacy Sema4 diagnostic testing business. Total company results include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities.
- Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented.
- Volume and revenue comparison for full year 2022 are on a pro forma basis assuming Legacy GeneDx and the Company were combined for the entirety of 2022.
GeneDx Full Year 2024 Guidance
Management expects GeneDx to:
- Drive full year 2024 revenues between
$220 and$230 million ; - Expand full year 2024 adjusted gross margin profile to at least
50% ; - Use
$75 t o$80 million of net cash for full year 2024; - Turn profitable in 2025.
2023 Business Highlights
Driving sustainable growth and market leadership
- Presented new data at the American Epilepsy Society Annual Meeting demonstrating that exome sequencing outperforms multi-gene panels for patients with epilepsy
- Announced that Genetics in Medicine, the official journal of the American College of Medical Genetics and Genomics (ACMG), published a peer-reviewed research analysis involving GeneDx that concluded that variants of unknown significance (VUS) are reported more frequently on multi-gene panels than exome and genome sequencing
- Reached a milestone of over 1,000 publications in peer-reviewed journals, demonstrating GeneDx’s leadership in furthering scientific discoveries and innovation in the commercial laboratory space
- Worked closely with state Medicaid programs, including Florida, Arizona, and Utah, to expand coverage of rapid genetic testing in the NICU
- Announced partnership program with the New York Center for Rare Diseases (NYCRD) at Montefiore, PacBio and Google Health to deliver genetic diagnoses for Bronx families living with rare diseases
- Continued to support the GUARDIAN study, which continued to offer data and insights on the benefits and potential for genetic diagnoses through newborn screening – a retrospective analysis of GeneDx data showed that more than
20% of individuals could have identified their genetic disease, on average, 7 to 11 years sooner had they received genome sequencing at birth - Launched research collaboration with the University of Washington and PacBio to study the capabilities of long-read whole genome sequencing (WGS) to increase diagnostic rates in pediatric patients with genetic conditions
- Refined the strategic direction for biopharma and partnerships efforts and aligned the team within the Commercial organization, offering enhanced integration between our testing and data businesses
- Evolved the management team to include Melanie Duquette as Chief Growth Officer and Eric Olivares as Chief Product Officer
Strengthening our financial health and path to profitability
- On October 30, 2023, the Company announced a continued strategic realignment of its organization to key priorities which included the elimination of approximately 50 positions impacted on August 23, 2023 and approximately 35 positions impacted on October 30, 2023. Together these actions reduced the size of the Company’s workforce by
10% from the total number that existed at the time of the August reduction in force. In total, the Company announced cost saving initiatives, including but not limited to these reductions in force, that are expected to amount to approximately$40 million in annual cost reduction. - Entered into a new, five-year senior secured credit facility with Perceptive Advisors. The agreement provides access of up to
$75 million , consisting of an initial tranche of$50 million , and a subsequent tranche for an additional$25 million , subject to certain timelines and other defined criteria.- Interest is payable in cash on the outstanding principal amount at a rate per annum equal to the sum of the applicable secured overnight financing rate (SOFR), plus
7.5% . - Under the terms of the agreement, Perceptive was issued warrants to purchase 800,000 shares of the Company’s Class A common stock on the closing date, with an exercise price equal to
$3.18 . Upon the borrowing of the subsequent tranche, Perceptive will be issued warrants to purchase an additional 400,000 shares of Class A common stock.
- Interest is payable in cash on the outstanding principal amount at a rate per annum equal to the sum of the applicable secured overnight financing rate (SOFR), plus
Webcast and Conference Call Details
GeneDx will host a conference call today, February 20, 2024, at 4:30 p.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/.
Forward-Looking 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 expected full year 2024 reported revenue guidance, our expectations regarding our adjusted gross margin profile in 2024, our use of net cash in 2024 and our turning profitable in 2025, the expected annual cost reduction from our cost savings initiatives. 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 (vi) 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, 2022, filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 16, 2023 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
GeneDx (Nasdaq: WGS) delivers personalized and actionable health insights to inform diagnosis, direct treatment and improve drug discovery. The company is uniquely positioned to accelerate the use of genomic and large-scale clinical information to enable precision medicine as the standard of care. GeneDx is at the forefront of transforming healthcare through its industry-leading exome and genome testing and interpretation, fueled by one of the world’s largest rare disease data sets. For more information, please visit genedx.com and connect with us on LinkedIn, Facebook, Twitter and Instagram.
Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
Volume and revenue in the table below include the combination of the Legacy GeneDx diagnostic business with the data and information business of Legacy Sema4.
Volume & Revenue
| 4Q23 | 3Q23 | 2Q23 | 1Q23 | 4Q22 | 2023 YTD | 2022 YTD1 | ||||||||||||||
| Volumes | ||||||||||||||||||||
| Whole exome, whole genome | 15,663 | 13,216 | 11,855 | 8,705 | 7,862 | 49,439 | 30,560 | |||||||||||||
| Exome based panels | 2,606 | 2,922 | 3,472 | 3,136 | 3,013 | 12,136 | 11,767 | |||||||||||||
| Hereditary cancer | 8,240 | 8,556 | 7,142 | 7,120 | 6,069 | 31,058 | 25,334 | |||||||||||||
| Other individual gene tests and multi-gene disease panels | 31,086 | 32,939 | 32,459 | 33,817 | 31,891 | 130,301 | 112,711 | |||||||||||||
| Total | 57,595 | 57,633 | 54,928 | 52,778 | 48,835 | 222,934 | 180,372 | |||||||||||||
| Revenue ($ millions) | ||||||||||||||||||||
| Whole exome, whole genome | $ | 39.2 | $ | 34.0 | $ | 28.7 | $ | 22.4 | $ | 23.3 | $ | 124.3 | $ | 86.8 | ||||||
| Exome based panels | 1.7 | 1.7 | 2.0 | 2.1 | 2.0 | 7.5 | 9.1 | |||||||||||||
| Hereditary cancer | 5.5 | 4.5 | 3.8 | 4.3 | 4.4 | 18.1 | 14.4 | |||||||||||||
| Other individual gene tests and multi-gene disease panels | 9.5 | 8.9 | 8.6 | 10.6 | 14.2 | 37.6 | 53.0 | |||||||||||||
| Data information | 2.2 | 1.3 | 2.1 | 1.3 | 1.9 | 6.9 | 7.7 | |||||||||||||
| Total | $ | 58.1 | $ | 50.4 | $ | 45.2 | $ | 40.7 | $ | 45.8 | $ | 194.4 | $ | 171.0 | ||||||
1 Volume and revenue comparison for full year 2022 are on a pro forma basis as if Legacy GeneDx and the Company were combined for the entirety of 2022.
Unaudited Select Financial Information (in thousands)
| Three months ended December 31, 2023 | Three months ended December 31, 2022 | ||||||||||||||||||||||
| GeneDx | Legacy Sema4 | Total | GeneDx | Legacy Sema4 | Total | ||||||||||||||||||
| Revenue | ) | ||||||||||||||||||||||
| Adjusted cost of services | 25,626 | — | 25,626 | 27,000 | 30,153 | 57,153 | |||||||||||||||||
| Adjusted gross profit (loss) | ) | ) | |||||||||||||||||||||
| Adjusted gross margin % | 55.9 | % | (100.0 | )% | 55.4 | % | 41.1 | % | (94.2 | )% | 6.8 | % | |||||||||||
| Year ended December 31, 2023 | Year ended December 31, 2022 | ||||||||||||||||||||||
| GeneDx | Legacy Sema4 | Total | GeneDx | Legacy Sema4 | Total | ||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Adjusted cost of services | 106,983 | 2,305 | 109,288 | 74,213 | 148,897 | 223,110 | |||||||||||||||||
| Adjusted gross profit (loss) | ) | ||||||||||||||||||||||
| Adjusted gross margin % | 45.0 | % | 71.9 | % | 46.0 | % | 39.3 | % | (32.4 | )% | 4.9 | % | |||||||||||
| Three months ended September 30, 2023 | ||||||||||||
| GeneDx | Legacy Sema4 | Total | ||||||||||
| Revenue | ||||||||||||
| Adjusted cost of services | 26,079 | 225 | 26,304 | |||||||||
| Adjusted gross profit (loss) | ||||||||||||
| Adjusted gross margin % | 48.2 | % | 92.4 | % | 50.7 | % | ||||||
| For the three months ended December 31, 2023 | ||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | |||||||||||||||||||||||
| Diagnostic test revenue | $ | 55,214 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 55,214 | ||||||||||||||
| Other revenue | 2,204 | — | — | — | — | — | — | 2,204 | ||||||||||||||||||||||
| Total revenue | 57,418 | — | — | — | — | — | — | 57,418 | ||||||||||||||||||||||
| Cost of services | 26,664 | (915 | ) | (123 | ) | — | — | — | — | 25,626 | ||||||||||||||||||||
| Gross profit (loss) | 30,754 | 915 | 123 | — | — | — | — | 31,792 | ||||||||||||||||||||||
| Gross margin | 53.6 | % | 55.4 | % | ||||||||||||||||||||||||||
| Research and development | 12,248 | (919 | ) | 2,320 | (1,300 | ) | — | — | — | 12,349 | ||||||||||||||||||||
| Selling and marketing | 15,559 | (1,225 | ) | 1,071 | (487 | ) | — | — | — | 14,918 | ||||||||||||||||||||
| General and administrative | 26,626 | (3,035 | ) | (2,356 | ) | (197 | ) | — | — | — | 21,038 | |||||||||||||||||||
| Impairment loss | — | — | — | — | — | — | — | — | ||||||||||||||||||||||
| Other, net | 1,964 | — | — | — | — | (1,277 | ) | — | 687 | |||||||||||||||||||||
| Loss from operations | (25,643 | ) | 6,094 | (912 | ) | 1,984 | — | 1,277 | — | (17,200 | ) | |||||||||||||||||||
| Interest income (expense), net | (978 | ) | — | — | — | — | — | — | (978 | ) | ||||||||||||||||||||
| Other income (expense), net | 437 | — | — | — | (485 | ) | — | 48 | — | |||||||||||||||||||||
| Income tax benefit | 411 | — | — | — | — | — | — | 411 | ||||||||||||||||||||||
| Net loss | $ | (25,773 | ) | $ | 6,094 | $ | (912 | ) | $ | 1,984 | $ | (485 | ) | $ | 1,277 | $ | 48 | $ | (17,767 | ) | ||||||||||
| For the three months ended December 31, 2022 | |||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Adjusted | |||||||||||||||||||||
| Diagnostic test revenue | $ | 59,345 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 59,345 | |||||||||||||
| Other revenue | 2,005 | — | — | — | — | — | 2,005 | ||||||||||||||||||||
| Total revenue | 61,350 | — | — | — | — | — | 61,350 | ||||||||||||||||||||
| Cost of services | 77,676 | (19,993 | ) | (412 | ) | (118 | ) | — | — | 57,153 | |||||||||||||||||
| Gross profit (loss) | (16,326 | ) | 19,993 | 412 | 118 | — | — | 4,197 | |||||||||||||||||||
| Gross margin | (26.6 | )% | 6.8 | % | |||||||||||||||||||||||
| Research and development | 24,366 | (9,149 | ) | 937 | (892 | ) | — | — | 15,262 | ||||||||||||||||||
| Selling and marketing | 29,236 | (1,226 | ) | 324 | (3,476 | ) | — | — | 24,858 | ||||||||||||||||||
| General and administrative | 43,209 | (3,672 | ) | (1,271 | ) | (2,770 | ) | — | — | 35,496 | |||||||||||||||||
| Impairment loss | 210,145 | — | — | — | — | (210,145 | ) | — | |||||||||||||||||||
| Other, net | 1,600 | — | — | — | — | — | 1,600 | ||||||||||||||||||||
| Loss from operations | (324,882 | ) | 34,040 | 422 | 7,256 | — | 210,145 | (73,019 | ) | ||||||||||||||||||
| Interest income (expense), net | 333 | — | — | — | — | — | 333 | ||||||||||||||||||||
| Other income (expense), net | 15,878 | — | — | — | (15,878 | ) | — | — | |||||||||||||||||||
| Income tax benefit | (90 | ) | — | — | — | — | — | (90 | ) | ||||||||||||||||||
| Net loss | $ | (308,761 | ) | $ | 34,040 | $ | 422 | $ | 7,256 | $ | (15,878 | ) | $ | 210,145 | $ | (72,776 | ) | ||||||||||
| For the year ended December 31, 2023 | |||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||
| Diagnostic test revenue | $ | 195,654 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 195,654 | |||||||||||||||
| Other revenue | 6,912 | — | — | — | — | — | — | 6,912 | |||||||||||||||||||||||
| Total revenue | 202,566 | — | — | — | — | — | — | 202,566 | |||||||||||||||||||||||
| Cost of services | 112,560 | (4,350 | ) | 1,217 | (139 | ) | — | — | — | 109,288 | |||||||||||||||||||||
| Gross profit (loss) | 90,006 | 4,350 | (1,217 | ) | 139 | — | — | — | 93,278 | ||||||||||||||||||||||
| Gross margin | 44.4 | % | 46.0 | % | |||||||||||||||||||||||||||
| Research and development | 58,266 | (6,710 | ) | 2,585 | (3,176 | ) | — | — | — | 50,965 | |||||||||||||||||||||
| Selling and marketing | 60,956 | (4,902 | ) | 1,266 | (1,371 | ) | — | — | — | 55,949 | |||||||||||||||||||||
| General and administrative | 133,755 | (17,772 | ) | (4,742 | ) | (1,846 | ) | — | — | — | 109,395 | ||||||||||||||||||||
| Impairment loss | 10,402 | — | — | — | — | (10,402 | ) | — | — | ||||||||||||||||||||||
| Other, net | 7,223 | — | — | — | — | (1,957 | ) | — | 5,266 | ||||||||||||||||||||||
| Loss from operations | (180,596 | ) | 33,734 | (326 | ) | 6,532 | — | 12,359 | — | (128,297 | ) | ||||||||||||||||||||
| Interest income (expense), net | 1,114 | — | — | — | — | — | — | 1,114 | |||||||||||||||||||||||
| Other income (expense), net | 2,789 | — | — | — | (1,170 | ) | — | (1,619 | ) | — | |||||||||||||||||||||
| Income tax benefit | 926 | — | — | — | — | — | — | 926 | |||||||||||||||||||||||
| Net loss | $ | (175,767 | ) | $ | 33,734 | $ | (326 | ) | $ | 6,532 | $ | (1,170 | ) | $ | 12,359 | $ | (1,619 | ) | $ | (126,257 | ) | ||||||||||
| For the year ended December 31, 2022 | |||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||
| Diagnostic test revenue | $ | 227,334 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 227,334 | |||||||||||||||||
| Other revenue | 7,360 | — | — | — | — | — | — | 7,360 | |||||||||||||||||||||||
| Total revenue | 234,694 | — | — | — | — | — | — | 234,694 | |||||||||||||||||||||||
| Cost of services | 261,444 | (31,328 | ) | (5,080 | ) | (1,926 | ) | — | — | — | 223,110 | ||||||||||||||||||||
| Gross profit (loss) | (26,750 | ) | 31,328 | 5,080 | 1,926 | — | — | — | 11,584 | ||||||||||||||||||||||
| Gross margin | (11.4 | )% | 4.9 | % | |||||||||||||||||||||||||||
| Research and development | 86,203 | (14,960 | ) | (1,755 | ) | (3,260 | ) | — | — | — | 66,228 | ||||||||||||||||||||
| Selling and marketing | 122,075 | (3,271 | ) | (5,390 | ) | (7,979 | ) | — | — | — | 105,435 | ||||||||||||||||||||
| General and administrative | 216,167 | (9,750 | ) | (29,750 | ) | (12,645 | ) | — | — | (13,436 | ) | 150,586 | |||||||||||||||||||
| Impairment loss | 210,145 | — | — | — | — | (210,145 | ) | — | — | ||||||||||||||||||||||
| Other, net | 6,312 | — | — | — | — | — | — | 6,312 | |||||||||||||||||||||||
| Loss from operations | (667,652 | ) | 59,309 | 41,975 | 25,810 | — | 210,145 | 13,436 | (316,977 | ) | |||||||||||||||||||||
| Interest income (expense), net | (666 | ) | — | — | — | — | — | — | (666 | ) | |||||||||||||||||||||
| Other income (expense), net | 70,286 | — | — | — | (70,229 | ) | — | (57 | ) | — | |||||||||||||||||||||
| Income tax benefit | 49,052 | — | — | — | — | — | — | 49,052 | |||||||||||||||||||||||
| Net loss | $ | (548,980 | ) | $ | 59,309 | $ | 41,975 | $ | 25,810 | $ | (70,229 | ) | $ | 210,145 | $ | 13,379 | $ | (268,591 | ) | ||||||||||||
| For the three months ended September 30, 2023 | ||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | |||||||||||||||||||||||
| Diagnostic test revenue | $ | 51,955 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 51,955 | ||||||||||||||
| Other revenue | 1,348 | — | — | — | — | — | — | 1,348 | ||||||||||||||||||||||
| Total revenue | 53,303 | — | — | — | — | — | — | 53,303 | ||||||||||||||||||||||
| Cost of services | 28,044 | (1,613 | ) | (75 | ) | (52 | ) | 26,304 | ||||||||||||||||||||||
| Gross profit (loss) | 25,259 | 1,613 | 75 | 52 | — | — | — | 26,999 | ||||||||||||||||||||||
| Gross margin | 47.4 | % | 50.7 | % | ||||||||||||||||||||||||||
| Research and development | 14,288 | (283 | ) | 533 | (970 | ) | — | — | — | 13,568 | ||||||||||||||||||||
| Selling and marketing | 16,763 | (1,225 | ) | 115 | (416 | ) | — | — | — | 15,237 | ||||||||||||||||||||
| General and administrative | 26,099 | (5,551 | ) | (1,004 | ) | (753 | ) | — | — | — | 18,791 | |||||||||||||||||||
| Impairment loss | 8,282 | — | — | — | — | (8,282 | ) | — | — | |||||||||||||||||||||
| Other, net | 2,794 | — | — | — | — | (1,014 | ) | — | 1,780 | |||||||||||||||||||||
| Loss from operations | (42,967 | ) | 8,672 | 431 | 2,191 | — | 9,296 | — | (22,377 | ) | ||||||||||||||||||||
| Interest income (expense), net | 1,053 | — | — | — | — | — | — | 1,053 | ||||||||||||||||||||||
| Other income (expense), net | (544 | ) | — | — | — | (590 | ) | — | 1,134 | — | ||||||||||||||||||||
| Income tax benefit | 172 | — | — | — | — | — | — | 172 | ||||||||||||||||||||||
| Net loss | $ | (42,286 | ) | $ | 8,672 | $ | 431 | $ | 2,191 | $ | (590 | ) | $ | 9,296 | $ | 1,134 | $ | (21,152 | ) | |||||||||||
| GeneDx Holdings Corp. Consolidated Balance Sheets (in thousands, except share and per share amounts) | |||||||
| December 31, | |||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 99,681 | $ | 123,933 | |||
| Marketable securities | 30,467 | — | |||||
| Accounts receivable | 32,371 | 42,634 | |||||
| Due from related parties | 445 | 708 | |||||
| Inventory, net | 8,777 | 13,665 | |||||
| Prepaid expenses and other current assets | 10,598 | 31,682 | |||||
| Total current assets | 182,339 | 212,622 | |||||
| Operating lease right-of-use assets | 26,900 | 32,758 | |||||
| Property and equipment, net | 32,479 | 51,527 | |||||
| Intangible assets, net | 172,625 | 186,650 | |||||
| Other assets(1) | 4,413 | 7,385 | |||||
| Total assets | $ | 418,756 | $ | 490,942 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 37,456 | $ | 84,878 | |||
| Due to related parties | 1,379 | 3,593 | |||||
| Short-term lease liabilities | 3,647 | 6,121 | |||||
| Other current liabilities | 16,336 | 49,705 | |||||
| Total current liabilities | 58,818 | 144,297 | |||||
| Long-term debt, net of current portion | 52,688 | 6,250 | |||||
| Long-term lease liabilities | 62,938 | 60,013 | |||||
| Other liabilities | 14,735 | 24,018 | |||||
| Deferred taxes | 1,560 | 2,659 | |||||
| Total liabilities | 190,739 | 237,237 | |||||
| Stockholders’ Equity: | |||||||
| Preferred stock | — | — | |||||
| Class A common stock | 2 | 1 | |||||
| Additional paid-in capital | 1,527,778 | 1,378,125 | |||||
| Accumulated deficit | (1,300,188 | ) | (1,124,421 | ) | |||
| Accumulated other comprehensive income | 425 | — | |||||
| Total stockholders’ equity | 228,017 | 253,705 | |||||
| Total liabilities and stockholders’ equity | $ | 418,756 | $ | 490,942 | |||
(1) Other assets includes
| GeneDx Holdings Corp. Consolidated Statements of Operations (in thousands, except share and per share amounts) | |||||||
| Year ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Revenue | |||||||
| Diagnostic test revenue | $ | 195,654 | $ | 227,334 | |||
| Other revenue | 6,912 | 7,360 | |||||
| Total revenue | 202,566 | 234,694 | |||||
| Cost of services | 112,560 | 261,444 | |||||
| Gross profit (loss) | 90,006 | (26,750 | ) | ||||
| Research and development | 58,266 | 86,203 | |||||
| Selling and marketing | 60,956 | 122,075 | |||||
| General and administrative | 133,755 | 216,167 | |||||
| Impairment loss | 10,402 | 210,145 | |||||
| Other operating expenses, net | 7,223 | 6,312 | |||||
| Loss from operations | (180,596 | ) | (667,652 | ) | |||
| Non-operating income (expenses), net | |||||||
| Change in fair market value of warrant and earn-out contingent liabilities | 1,170 | 70,229 | |||||
| Interest income (expense), net | 1,114 | (666 | ) | ||||
| Other income, net | 1,619 | 57 | |||||
| Total non-operating income, net | 3,903 | 69,620 | |||||
| Loss before income taxes | $ | (176,693 | ) | $ | (598,032 | ) | |
| Income tax benefit | 926 | 49,052 | |||||
| Net loss | $ | (175,767 | ) | $ | (548,980 | ) | |
| Weighted average shares outstanding of Class A common stock | 24,311,989 | 10,236,960 | |||||
| Basic and diluted net loss per share, Class A common stock | $ | (7.23 | ) | $ | (53.63 | ) | |
| GeneDx Holdings Corp. Consolidated Statements of Cash Flows (in thousands) | |||||||
| Year Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Operating activities | |||||||
| Net loss | $ | (175,767 | ) | $ | (548,980 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization expense | 33,734 | 59,309 | |||||
| Stock-based compensation expense | (326 | ) | 41,975 | ||||
| Change in fair value of warrant and contingent liabilities | (1,170 | ) | (70,229 | ) | |||
| Deferred tax benefit | (926 | ) | (49,124 | ) | |||
| Provision for excess and obsolete inventory | 3,913 | 1,125 | |||||
| Third-party payor reserve release | (9,745 | ) | — | ||||
| Gain on sale of assets | (1,677 | ) | — | ||||
| Gain on debt forgiveness | (2,750 | ) | — | ||||
| Impairment loss | 10,402 | 210,145 | |||||
| Other | 1,308 | 2,743 | |||||
| Change in operating assets and liabilities, net of effects from purchase of business: | |||||||
| Accounts receivable | 10,263 | 5,527 | |||||
| Inventory | 975 | 2,350 | |||||
| Accounts payable and accrued expenses | (46,953 | ) | 34,459 | ||||
| Other assets and liabilities | (2,526 | ) | (8,455 | ) | |||
| Net cash used in operating activities | (181,245 | ) | (319,155 | ) | |||
| Investing activities | |||||||
| Consideration on escrow paid for GeneDx acquisition | (12,144 | ) | (127,004 | ) | |||
| Purchases of property and equipment | (5,250 | ) | (7,156 | ) | |||
| Proceeds from sale of assets | 4,034 | — | |||||
| Purchases of marketable securities | (47,670 | ) | — | ||||
| Proceeds from maturities of marketable securities | 17,765 | — | |||||
| Development of internal-use software assets | (461 | ) | (7,166 | ) | |||
| Net cash used in investing activities | (43,726 | ) | (141,326 | ) | |||
| Financing activities | |||||||
| Proceeds from PIPE issuance, net of issuance costs | — | 197,659 | |||||
| Proceeds from offerings, net of issuance costs | 143,002 | — | |||||
| Proceeds from long-term debt, net of issuance costs | 48,549 | — | |||||
| Exercise of stock options | 285 | 2,948 | |||||
| Long-term debt principal payments | (2,000 | ) | — | ||||
| Finance lease payoff and principal payments | (2,500 | ) | (3,292 | ) | |||
| Net cash provided by financing activities | 187,336 | 197,315 | |||||
| Net decrease in cash, cash equivalents and restricted cash | (37,635 | ) | (263,166 | ) | |||
| Cash, cash equivalents and restricted cash, at beginning of year | 138,303 | 401,469 | |||||
| Cash, cash equivalents and restricted cash, at end of year(1) | $ | 100,668 | $ | 138,303 | |||
(1) Cash, cash equivalents and restricted cash at December 31, 2023 excludes marketable securities of
FAQ
What was GeneDx's revenue in the fourth quarter of 2023?
How much was the year-over-year growth in exome and genome test revenue for GeneDx?
What were GeneDx's adjusted gross margins in the fourth quarter of 2023?
What was GeneDx's adjusted net loss in the fourth quarter of 2023?
What is GeneDx's revenue guidance for FY 2024?
