GeneDx Reports Second Quarter 2024 Financial Results and Business Highlights
GeneDx (Nasdaq: WGS) reported strong Q2 2024 financial results, with revenue from continuing operations reaching $68.9 million, a 52% year-over-year increase. Exome and genome test revenue grew 77% to $50.7 million. Adjusted gross margin expanded to 62%, while adjusted net loss narrowed to $2.7 million. The company raised its full-year 2024 revenue guidance to $255-$265 million and reiterated its expectation to reach profitability in 2025.
Key highlights include a 52% year-over-year increase in exome and genome test volume, expanded Medicaid coverage for whole exome sequencing, and new collaborations to enhance access to rapid whole genome sequencing. GeneDx also announced reinvestment in whole genome sequencing products, improving turnaround times and sample collection methods.
GeneDx (Nasdaq: WGS) ha riportato risultati finanziari solidi per il secondo trimestre del 2024, con entrate dalle operazioni continuative che hanno raggiunto 68,9 milioni di dollari, registrando un incremento del 52% rispetto all'anno precedente. Le entrate dai test di esoma e genoma sono cresciute del 77% a 50,7 milioni di dollari. Il margine lordo rettificato è aumentato al 62%, mentre la perdita netta rettificata si è ridotta a 2,7 milioni di dollari. L'azienda ha alzato le previsioni di ricavi per l'intero anno 2024 a 255-265 milioni di dollari e ha ribadito la sua aspettativa di raggiungere la redditività nel 2025.
Tra i principali punti salienti si segnalano un incremento del 52% nel volume dei test di esoma e genoma rispetto all'anno precedente, l'espansione della copertura Medicaid per il sequenziamento dell'intero esoma e nuove collaborazioni per migliorare l'accesso al sequenziamento rapido dell'intero genoma. GeneDx ha anche annunciato un reinvestimento nei prodotti per il sequenziamento dell'intero genoma, migliorando i tempi di risposta e i metodi di raccolta dei campioni.
GeneDx (Nasdaq: WGS) reportó resultados financieros sólidos para el segundo trimestre de 2024, con ingresos de operaciones continuas alcanzando $68.9 millones, un aumento del 52% en comparación con el año anterior. Los ingresos de pruebas de exoma y genoma crecieron un 77% hasta $50.7 millones. El margen bruto ajustado se amplió al 62%, mientras que la pérdida neta ajustada se redujo a $2.7 millones. La compañía elevó su guía de ingresos para todo el año 2024 a $255-$265 millones y reiteró su expectativa de alcanzar la rentabilidad en 2025.
Los puntos clave incluyen un aumento del 52% en el volumen de pruebas de exoma y genoma en comparación con el año anterior, la expansión de la cobertura de Medicaid para el secuenciación del exoma completo y nuevas colaboraciones para mejorar el acceso a la secuenciación rápida del genoma completo. GeneDx también anunció la reinversión en productos de secuenciación del genoma completo, mejorando los tiempos de respuesta y los métodos de recolección de muestras.
GeneDx (Nasdaq: WGS)는 2024년 2분기 재무 실적이 강력하다고 보고했습니다. 지속적인 운영에서의 수익은 6,890만 달러에 달하며, 이는 지난해 대비 52% 증가한 수치입니다. 엑솜 및 유전체 검사 수익은 77% 증가하여 5,070만 달러에 도달했습니다. 조정된 총 마진은 62%로 확대되었으며, 조정된 순손실은 270만 달러로 축소되었습니다. 회사는 2024년 전체 연간 수익 전망을 2억 5천 5백만 - 2억 6천 5백만 달러로 상향 조정하며, 2025년에는 수익성이 달성될 것으로 예상된다고 다시 확인했습니다.
주요 하이라이트로는 엑솜 및 유전체 검사량이 지난해 대비 52% 증가한 것, 전체 엑솜 시퀀싱에 대한 메디케이드 보장 확대, 신속한 전체 유전체 시퀀싱에 대한 접근성을 높이기 위한 새로운 협력 등이 있습니다. GeneDx는 또한 전체 유전체 시퀀싱 제품에 대한 재투자를 발표하며, 응답 시간과 샘플 수집 방법을 개선하였습니다.
GeneDx (Nasdaq: WGS) a annoncé de solides résultats financiers pour le deuxième trimestre 2024, avec des revenus d'opérations continues atteignant 68,9 millions de dollars, soit une augmentation de 52 % par rapport à l'année précédente. Les revenus des tests d'exome et de génome ont augmenté de 77 % pour atteindre 50,7 millions de dollars. La marge brute ajustée s'est élargie à 62%, tandis que la perte nette ajustée s'est réduite à 2,7 millions de dollars. L'entreprise a relevé ses prévisions de revenus pour l'ensemble de l'année 2024 à 255-265 millions de dollars et a réitéré son attente d'atteindre la rentabilité en 2025.
Les principaux points saillants incluent une augmentation de 52 % du volume des tests d'exome et de génome par rapport à l'année précédente, une extension de la couverture Medicaid pour le séquençage de l'exome complet et de nouvelles collaborations pour améliorer l'accès au séquençage rapide du génome entier. GeneDx a également annoncé un réinvestissement dans les produits de séquençage de l'ensemble du génome, visant à améliorer les délais de réponse et les méthodes de collecte des échantillons.
GeneDx (Nasdaq: WGS) berichtete über starke Finanzzahlen im zweiten Quartal 2024, mit einem Umsatz aus fortgeführten Betrieben von 68,9 Millionen Dollar, was einem Anstieg von 52 % im Vergleich zum Vorjahr entspricht. Die Einnahmen aus Exom- und Genomtests wuchsen um 77 % auf 50,7 Millionen Dollar. Die bereinigte Bruttomarge erweiterte sich auf 62%, während der bereinigte Nettoverlust auf 2,7 Millionen Dollar gesenkt wurde. Das Unternehmen hob seine Umsatzprognose für das Gesamtjahr 2024 auf 255-265 Millionen Dollar und bestätigte seine Erwartung, 2025 profitabel zu werden.
Zu den wichtigsten Highlights gehören ein Anstieg des Volumens bei Exom- und Genomtests um 52 % im Jahresvergleich, eine erweiterte Medicaid-Abdeckung für die vollständige Exom-Sequenzierung und neue Kooperationen zur Verbesserung des Zugangs zur schnellen vollständigen Genomsequenzierung. GeneDx kündigte außerdem eine Reinvestition in Produkte zur vollständigen Genomsequenzierung an, um die Bearbeitungszeiten und die Probenahmemethoden zu verbessern.
- Revenue from continuing operations grew 52% year-over-year to $68.9 million
- Exome and genome test revenue increased 77% year-over-year to $50.7 million
- Adjusted gross margin expanded to 62%, up from 37% in Q2 2023
- Adjusted net loss narrowed by 93% year-over-year to $2.7 million
- Raised full-year 2024 revenue guidance to $255-$265 million
- Exome and genome test volume grew 52% year-over-year
- Expanded Medicaid coverage for whole exome sequencing in multiple states
- Launched Patient Access Program to expand access to exome testing for pediatric epilepsy patients
- Grew biopharma partner programs to 32
- GAAP net loss of $29.2 million, including a one-time net litigation charge of $13 million
- Total net use of cash was $6.1 million in Q2 2024
Insights
GeneDx's Q2 2024 results demonstrate impressive growth and improved financial performance. The company reported
The company's focus on operational efficiency is evident in its expanded adjusted gross margins, which reached
GeneDx's cash burn has also improved dramatically, with total net use of cash at
Based on these strong results, GeneDx has raised its full-year 2024 revenue guidance to
While the overall picture is positive, it's important to note the
GeneDx's Q2 2024 results highlight the growing adoption of advanced genetic testing in clinical settings. The
The company's strategic focus on whole exome sequencing (WES) and whole genome sequencing (WGS) is well-aligned with the evolving landscape of precision medicine. The launch of the Patient Access Program for pediatric epilepsy patients and the expansion of rapid whole genome sequencing (rWGS) services through the Epic Aura collaboration demonstrate GeneDx's commitment to broadening access to critical genetic information.
Notably, the increased Medicaid coverage for WES and rWGS in several states, including North Carolina, Tennessee and Connecticut, signals growing recognition of the clinical utility of these tests. This expanded coverage is likely to drive further adoption and could contribute to sustained revenue growth for GeneDx.
The company's investment in improving its WGS offerings, including faster turnaround times and non-invasive sample collection methods, addresses key barriers to adoption and could further accelerate market penetration. The expansion of repeat expansions covered by WGS is particularly significant, as it has the potential to increase diagnostic yield and streamline the testing process for patients and providers.
GeneDx's Q2 2024 results and strategic initiatives reveal a company well-positioned in the rapidly growing genetic testing market. The
The company's collaboration with Epic Aura is a strategic move to expand its footprint in health systems, potentially leading to increased test volumes and market share. Similarly, the Patient Access Program for pediatric epilepsy patients demonstrates GeneDx's commitment to market expansion and patient engagement.
The growth in biopharma partner programs to 32, primarily with biotech companies seeking specific variants for clinical trials, highlights GeneDx's role in the broader pharmaceutical research ecosystem. This diversification of revenue streams could provide stability and growth opportunities beyond clinical diagnostics.
Expanded Medicaid coverage for whole exome sequencing (WES) and rapid whole genome sequencing (rWGS) in multiple states is a positive market signal, potentially leading to increased test volumes and revenue. This trend suggests growing recognition of the value of advanced genetic testing in healthcare systems.
GeneDx's investments in improving its whole genome sequencing offerings, including faster turnaround times and non-invasive sample collection, address key market needs and could enhance its competitive position. These improvements, coupled with the expansion of repeat expansions covered, could drive market share gains and customer loyalty.
The raised revenue guidance for 2024 and the reiterated path to profitability in 2025 suggest management's confidence in the company's market position and growth trajectory. However, investors should monitor competitive pressures and potential market saturation in the rapidly evolving genetic testing landscape.
Reported second quarter 2024 revenue from continuing operations1 of
Expanded second quarter 2024 adjusted gross margins2 from continuing operations to
Narrowed second quarter 2024 adjusted net loss2 to
Raising guidance to deliver between
GeneDx to host conference call today at 4:30 p.m. ET
“Our continued organizational focus on execution fueled our strong second quarter results, giving us confidence to raise full year 2024 revenue guidance to between
Second Quarter 2024 Financial Results (Unaudited)1,2
Revenues
-
Revenues from continuing operations grew to
$68.9 million 52% year-over-year and12% sequentially.-
Total company revenues were
$70.5 million
-
Total company revenues were
-
Exome and genome test revenue grew to
$50.7 million 77% year-over-year and15% sequentially.
Exome and genome volume
-
Exome and genome test results volume grew to 18,017, an increase of
52% year-over-year and9% sequentially. -
Exome and genome represented
31% of all test results, up from22% in the second quarter of 2023 and up from30% in the first quarter of 2024.
Gross margin
-
Adjusted gross margin from continuing operations expanded to
62% , up from37% in the second quarter of 2023 and up from61% in the first quarter of 2024.-
Total company gross margin was
61% .
-
Total company gross margin was
Operating expenses
-
Adjusted total operating expenses reduced to
$45.0 million 24% year-over-year and1% sequentially.-
Total GAAP operating expenses were
$52.7 million
-
Total GAAP operating expenses were
Net loss
-
Adjusted net loss narrowed to
$2.7 million 93% year-over-year and68% sequentially.-
GAAP net loss was
$29.2 million $13 million
-
GAAP net loss was
Cash burn and cash position
-
Total net use of cash was
$6.1 million 89% year-over-year and65% sequentially. -
Cash, cash equivalents, marketable securities and restricted cash was
$107.8 million
| 1. | 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 for the current and all comparative periods. Total company results include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities for the current and all comparative periods. |
||
| 2. | 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. |
GeneDx Full Year 2024 Guidance
GeneDx has updated full year 2024 guidance. Management expects GeneDx to:
-
Drive full year 2024 revenues1 between
$255 $265 million $235 $245 million -
Expand full year 2024 adjusted gross margin profile to at least
60% (no change); -
Use between
$65 $70 million $70 $80 million - Turn to profitability in 2025 (no change).
| 1. | Total company results include the combination of the GeneDx diagnostic business revenues and the data and information revenues from the Legacy Sema4 business. |
Second Quarter 2024 Business Highlights
Driving sustainable growth, expanding access and improving the standard of care
- Announced collaboration with Epic Aura1 to expand access to rapid whole genome sequencing (“rWGS”) services to inform diagnosis for affected pediatric and neonatal patients, enhancing GeneDx’s commercial footprint within leading health systems.
- Launched first-of-its-kind Patient Access Program in collaboration with leading biopharma partners to expand access to exome testing for pediatric epilepsy patients.
- Grew biopharma partner programs to 32, predominantly with biotech companies who are relying on us to find patients with a specific variant for clinical trial purposes.
- North Carolina Medicaid has expanded its existing coverage of outpatient whole exome sequencing (“WES”) to include the analysis of family comparator samples, which increases the rate of diagnosis of WES, effective June 1, 2024.
-
State Medicaid programs continue to expand coverage of rapid genome sequencing in the neonatal intensive care unit (“NICU”), bringing total states covering rapid whole genome in the acute care setting to 14, including new coverage announced in:
-
North Carolina (June 2024) -
Tennessee (July 2024) -
Connecticut (July 2024)
-
-
Announced reinvestment in rapid and standard whole genome sequencing products, enabling:
- Faster turnaround time for rWGS with a written report in as fast as 5 days
- Buccal samples (cheek swab) allowing for easier and more accessible non-invasive sample collection method for even the youngest patients
- Expanding the number of repeat expansions covered by whole genome sequencing to increase diagnostic yield and improve the provider and patient experience by decreasing the need for follow-up testing
| 1. | Epic and Aura are trademarks of Epic Systems Corporation. |
Webcast and Conference Call Details
GeneDx will host a conference call today, July 30, 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. 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
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. It all starts with a single test. For more information, please visit genedx.com and connect with us on LinkedIn, X, Facebook, and Instagram.
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
|
2Q24 |
|
1Q24 |
|
4Q23 |
|
3Q23 |
|
2Q23 |
|||||
Volumes |
|
|
|
|
|
|
|
|
|
|||||
Whole exome, whole genome |
|
18,017 |
|
|
16,592 |
|
|
15,663 |
|
|
13,216 |
|
|
11,855 |
Hereditary cancer |
|
5,482 |
|
|
6,868 |
|
|
8,240 |
|
|
8,556 |
|
|
7,142 |
Other panels |
|
34,204 |
|
|
31,763 |
|
|
33,692 |
|
|
35,861 |
|
|
35,931 |
Total |
|
57,703 |
|
|
55,223 |
|
|
57,595 |
|
|
57,633 |
|
|
54,928 |
|
|
|
|
|
|
|
|
|
|
|||||
Revenue ($ millions) |
|
|
|
|
|
|
|
|
|
|||||
Whole exome, whole genome |
$ |
50.7 |
|
$ |
44.0 |
|
$ |
39.2 |
|
$ |
34.0 |
|
$ |
28.7 |
Hereditary cancer |
|
3.8 |
|
|
5.5 |
|
|
5.5 |
|
|
4.5 |
|
|
3.8 |
Other panels |
|
13.3 |
|
|
10.7 |
|
|
11.2 |
|
|
10.6 |
|
|
10.6 |
Data information |
|
1.1 |
|
|
1.3 |
|
|
2.2 |
|
|
1.3 |
|
|
2.1 |
Total |
$ |
68.9 |
|
$ |
61.5 |
|
$ |
58.1 |
|
$ |
50.4 |
|
$ |
45.2 |
Unaudited Select Financial Information (in thousands)
|
Three months ended June 30, 2024 |
|
Three months ended March 31, 2024 |
||||||||
|
GeneDx |
|
Legacy Sema4 |
|
Total |
|
GeneDx |
|
Legacy Sema4 |
|
Total |
Revenue |
|
|
|
|
|
|
|
|
|
|
|
Adjusted cost of services |
26,523 |
|
145 |
|
26,668 |
|
24,099 |
|
— |
|
24,099 |
Adjusted gross profit (loss) |
|
|
|
|
|
|
|
|
|
|
|
Adjusted gross margin % |
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended June 30, 2023 |
||||
|
GeneDx |
|
Legacy Sema4 |
|
Total |
Revenue |
|
|
|
|
|
Adjusted cost of services |
28,452 |
|
— |
|
28,452 |
Adjusted gross profit (loss) |
|
|
|
|
|
Adjusted gross margin % |
|
|
|
|
|
|
Three months ended June 30, 2024 |
|||||||||||||||||||||||||||
|
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 |
$ |
69,439 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
69,439 |
|
Other revenue |
|
1,075 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
1,075 |
|
Total revenue |
|
70,514 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
70,514 |
|
Cost of services |
|
27,562 |
|
|
|
(808 |
) |
|
|
(86 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
26,668 |
|
Gross profit (loss) |
|
42,952 |
|
|
|
808 |
|
|
|
86 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
43,846 |
|
Gross margin |
|
60.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62.2 |
% |
|||||||||
Research and development |
|
10,902 |
|
|
|
(211 |
) |
|
|
(347 |
) |
|
|
(35 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
10,309 |
|
Selling and marketing |
|
16,585 |
|
|
|
(1,225 |
) |
|
|
(368 |
) |
|
|
(63 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
14,929 |
|
General and administrative |
|
25,170 |
|
|
|
(2,974 |
) |
|
|
(2,307 |
) |
|
|
(150 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
19,739 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other, net |
|
874 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
874 |
|
Loss from operations |
|
(10,579 |
) |
|
|
5,218 |
|
|
|
3,108 |
|
|
|
248 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(2,005 |
) |
Interest income (expense), net |
|
(894 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(894 |
) |
Other income (expense), net |
|
(17,890 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,409 |
|
|
— |
|
|
13,450 |
|
|
(31 |
) |
Income tax benefit |
|
190 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
190 |
|
Net loss |
$ |
(29,173 |
) |
|
$ |
5,218 |
|
|
$ |
3,108 |
|
|
$ |
248 |
|
|
$ |
4,409 |
|
$ |
— |
|
$ |
13,450 |
|
$ |
(2,740 |
) |
|
Three months ended June 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 |
$ |
46,635 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
46,635 |
|
Other revenue |
|
2,071 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,071 |
|
Total revenue |
|
48,706 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
48,706 |
|
Cost of services |
|
29,949 |
|
|
|
(1,233 |
) |
|
|
(251 |
) |
|
|
(13 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,452 |
|
Gross profit (loss) |
|
18,757 |
|
|
|
1,233 |
|
|
|
251 |
|
|
|
13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,254 |
|
Gross margin |
|
38.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41.6 |
% |
||||||||||||
Research and development |
|
17,138 |
|
|
|
(4,656 |
) |
|
|
675 |
|
|
|
(815 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,342 |
|
Selling and marketing |
|
15,182 |
|
|
|
(1,225 |
) |
|
|
143 |
|
|
|
(326 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13,774 |
|
General and administrative |
|
37,341 |
|
|
|
(3,218 |
) |
|
|
(675 |
) |
|
|
(483 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
32,965 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other, net |
|
718 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
334 |
|
|
|
3,238 |
|
|
|
4,290 |
|
Loss from operations |
|
(51,622 |
) |
|
|
10,332 |
|
|
|
108 |
|
|
|
1,637 |
|
|
|
— |
|
|
|
(334 |
) |
|
|
(3,238 |
) |
|
|
(43,117 |
) |
Interest income (expense), net |
|
1,074 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,074 |
|
Other income (expense), net |
|
3,633 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,547 |
) |
|
|
— |
|
|
|
(86 |
) |
|
|
— |
|
Income tax benefit |
|
196 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
196 |
|
Net loss |
$ |
(46,719 |
) |
|
$ |
10,332 |
|
|
$ |
108 |
|
|
$ |
1,637 |
|
|
$ |
(3,547 |
) |
|
$ |
(334 |
) |
|
$ |
(3,324 |
) |
|
$ |
(41,847 |
) |
|
Three months ended March 31, 2024 |
|||||||||||||||||||||||||||
|
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 |
$ |
61,104 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
61,104 |
|
Other revenue |
|
1,318 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
1,318 |
|
Total revenue |
|
62,422 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
62,422 |
|
Cost of services |
|
25,011 |
|
|
|
(816 |
) |
|
|
(48 |
) |
|
|
(48 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
24,099 |
|
Gross profit (loss) |
|
37,411 |
|
|
|
816 |
|
|
|
48 |
|
|
|
48 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
38,323 |
|
Gross margin |
|
59.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
61.4 |
% |
|||||||||
Research and development |
|
11,567 |
|
|
|
(196 |
) |
|
|
187 |
|
|
|
(103 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
11,455 |
|
Selling and marketing |
|
16,085 |
|
|
|
(1,225 |
) |
|
|
20 |
|
|
|
(400 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
14,480 |
|
General and administrative |
|
22,445 |
|
|
|
(3,011 |
) |
|
|
292 |
|
|
|
(292 |
) |
|
|
— |
|
|
— |
|
|
— |
|
|
19,434 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other, net |
|
974 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
974 |
|
Loss from operations |
|
(13,660 |
) |
|
|
5,248 |
|
|
|
(451 |
) |
|
|
843 |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(8,020 |
) |
Interest income (expense), net |
|
(597 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
(597 |
) |
Other income (expense), net |
|
(6,064 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,101 |
|
|
— |
|
|
— |
|
|
37 |
|
Income tax benefit |
|
82 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
— |
|
|
82 |
|
Net loss |
$ |
(20,239 |
) |
|
$ |
5,248 |
|
|
$ |
(451 |
) |
|
$ |
843 |
|
|
$ |
6,101 |
|
$ |
— |
|
$ |
— |
|
$ |
(8,498 |
) |
GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) |
|||||||
|
June 30, 2024 (Unaudited) |
|
December 31, 2023 |
||||
Assets: |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
56,076 |
|
|
$ |
99,681 |
|
Marketable securities |
|
50,784 |
|
|
|
30,467 |
|
Accounts receivable |
|
25,500 |
|
|
|
32,371 |
|
Due from related parties |
|
693 |
|
|
|
445 |
|
Inventory, net |
|
10,322 |
|
|
|
8,777 |
|
Prepaid expenses and other current assets |
|
18,792 |
|
|
|
10,598 |
|
Total current assets |
|
162,167 |
|
|
|
182,339 |
|
Operating lease right-of-use assets |
|
25,624 |
|
|
|
26,900 |
|
Property and equipment, net |
|
31,339 |
|
|
|
32,479 |
|
Intangible assets, net |
|
165,613 |
|
|
|
172,625 |
|
Other assets (1) |
|
4,357 |
|
|
|
4,413 |
|
Total assets |
$ |
389,100 |
|
|
$ |
418,756 |
|
Liabilities and Stockholders’ Equity: |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable and accrued expenses |
$ |
51,959 |
|
|
$ |
37,456 |
|
Due to related parties |
|
1,213 |
|
|
|
1,379 |
|
Short-term lease liabilities |
|
4,001 |
|
|
|
3,647 |
|
Other current liabilities |
|
11,097 |
|
|
|
16,336 |
|
Total current liabilities |
|
68,270 |
|
|
|
58,818 |
|
Long-term debt, net of current portion |
|
52,160 |
|
|
|
52,688 |
|
Long-term lease liabilities |
|
60,800 |
|
|
|
62,938 |
|
Other liabilities |
|
12,660 |
|
|
|
14,735 |
|
Deferred taxes |
|
1,167 |
|
|
|
1,560 |
|
Total liabilities |
|
195,057 |
|
|
|
190,739 |
|
Stockholders’ Equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Class A common stock |
|
2 |
|
|
|
2 |
|
Additional paid-in capital |
|
1,543,182 |
|
|
|
1,527,778 |
|
Accumulated deficit |
|
(1,349,600 |
) |
|
|
(1,300,188 |
) |
Accumulated other comprehensive income |
|
459 |
|
|
|
425 |
|
Total stockholders’ equity |
|
194,043 |
|
|
|
228,017 |
|
Total liabilities and stockholders’ equity |
$ |
389,100 |
|
|
$ |
418,756 |
|
| (1) |
Other assets includes |
GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) |
|||||||||||||||
|
June 30, |
|
Six months ended June 30, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Diagnostic test revenue |
$ |
69,439 |
|
|
$ |
46,635 |
|
|
$ |
130,543 |
|
|
$ |
88,485 |
|
Other revenue |
|
1,075 |
|
|
|
2,071 |
|
|
|
2,393 |
|
|
|
3,360 |
|
Total revenue |
|
70,514 |
|
|
|
48,706 |
|
|
|
132,936 |
|
|
|
91,845 |
|
Cost of services |
|
27,562 |
|
|
|
29,949 |
|
|
|
52,573 |
|
|
|
57,852 |
|
Gross profit |
|
42,952 |
|
|
|
18,757 |
|
|
|
80,363 |
|
|
|
33,993 |
|
Research and development |
|
10,902 |
|
|
|
17,138 |
|
|
|
22,469 |
|
|
|
31,730 |
|
Selling and marketing |
|
16,585 |
|
|
|
15,182 |
|
|
|
32,670 |
|
|
|
28,634 |
|
General and administrative |
|
25,170 |
|
|
|
37,341 |
|
|
|
47,615 |
|
|
|
81,030 |
|
Impairment loss |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,120 |
|
Other operating expenses, net |
|
874 |
|
|
|
718 |
|
|
|
1,848 |
|
|
|
2,465 |
|
Loss from operations |
|
(10,579 |
) |
|
|
(51,622 |
) |
|
|
(24,239 |
) |
|
|
(111,986 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-operating income (expenses), net |
|
|
|
|
|
|
|
||||||||
Change in fair value of warrants and earn-out contingent liabilities |
|
(4,409 |
) |
|
|
3,547 |
|
|
|
(10,510 |
) |
|
|
94 |
|
Interest expense, net |
|
(894 |
) |
|
|
1,074 |
|
|
|
(1,491 |
) |
|
|
1,039 |
|
Other expense, net |
|
(13,481 |
) |
|
|
86 |
|
|
|
(13,444 |
) |
|
|
2,802 |
|
Total non-operating income, net |
|
(18,784 |
) |
|
|
4,707 |
|
|
|
(25,445 |
) |
|
|
3,935 |
|
Loss before income taxes |
|
(29,363 |
) |
|
|
(46,915 |
) |
|
$ |
(49,684 |
) |
|
$ |
(108,051 |
) |
Income tax benefit |
|
190 |
|
|
|
196 |
|
|
|
272 |
|
|
|
343 |
|
Net loss |
$ |
(29,173 |
) |
|
$ |
(46,719 |
) |
|
$ |
(49,412 |
) |
|
$ |
(107,708 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding of Class A common stock |
|
26,617,955 |
|
|
|
25,418,358 |
|
|
|
26,340,063 |
|
|
|
22,754,948 |
|
Basic and diluted net loss per share, Class A common stock |
$ |
(1.10 |
) |
|
$ |
(1.84 |
) |
|
$ |
(1.88 |
) |
|
$ |
(4.73 |
) |
GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) |
|||||||
|
Six months ended June 30, |
||||||
|
2024 |
|
2023 |
||||
Operating activities |
|
|
|
||||
Net loss |
$ |
(49,412 |
) |
|
$ |
(107,708 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
10,466 |
|
|
|
18,968 |
|
Stock-based compensation expense |
|
2,657 |
|
|
|
156 |
|
Change in fair value of warrants and contingent liabilities |
|
10,510 |
|
|
|
(94 |
) |
Deferred tax benefit |
|
(272 |
) |
|
|
(343 |
) |
Provision for excess and obsolete inventory |
|
109 |
|
|
|
2,620 |
|
Legal reserves |
|
13,450 |
|
|
|
— |
|
Change in third party payor reserves |
|
1,066 |
|
|
|
(4,308 |
) |
Gain on sale of assets |
|
— |
|
|
|
(2,954 |
) |
Gain on debt forgiveness |
|
— |
|
|
|
(2,750 |
) |
Impairment loss |
|
— |
|
|
|
2,120 |
|
Other |
|
1,738 |
|
|
|
412 |
|
Change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
6,871 |
|
|
|
10,174 |
|
Inventory |
|
(1,654 |
) |
|
|
(486 |
) |
Accounts payable and accrued expenses |
|
(10,359 |
) |
|
|
(25,399 |
) |
Other assets and liabilities |
|
(6,088 |
) |
|
|
531 |
|
Net cash used in operating activities |
|
(20,918 |
) |
|
|
(109,061 |
) |
Investing activities |
|
|
|
||||
Consideration on escrow paid for GeneDx acquisition |
|
— |
|
|
|
(12,144 |
) |
Purchases of property and equipment |
|
(1,795 |
) |
|
|
(2,762 |
) |
Proceeds from sales of assets |
|
— |
|
|
|
3,634 |
|
Purchases of marketable securities |
|
(29,381 |
) |
|
|
— |
|
Proceeds from sales of marketable securities |
|
598 |
|
|
|
— |
|
Proceeds from maturities of marketable securities |
|
8,720 |
|
|
|
— |
|
Development of internal-use software assets |
|
— |
|
|
|
(461 |
) |
Net cash used in investing activities |
|
(21,858 |
) |
|
|
(11,733 |
) |
Financing activities |
|
|
|
||||
Proceeds from offerings, net of issuance costs |
|
— |
|
|
|
143,002 |
|
Exercise of stock options |
|
161 |
|
|
|
266 |
|
Long-term debt principal payments |
|
— |
|
|
|
(2,000 |
) |
Finance lease payoff and principal payments |
|
(990 |
) |
|
|
(1,222 |
) |
Net cash (used in) provided by financing activities |
|
(829 |
) |
|
|
140,046 |
|
Net (decrease) increase in cash, cash equivalents and restricted cash |
|
(43,605 |
) |
|
|
19,252 |
|
Cash, cash equivalents and restricted cash, at beginning of period |
|
100,668 |
|
|
|
138,303 |
|
Cash, cash equivalents and restricted cash, at end of period (1) |
$ |
57,063 |
|
|
$ |
157,555 |
|
|
|
|
|
||||
Supplemental disclosures of cash flow information |
|
|
|
||||
Cash paid for interest |
$ |
4,033 |
|
|
$ |
946 |
|
Cash paid for taxes |
$ |
557 |
|
|
$ |
1,003 |
|
Stock consideration paid for purchase of business |
$ |
— |
|
|
$ |
6,692 |
|
Stock consideration paid pursuant to exercise of Perceptive warrant |
$ |
12,586 |
|
|
$ |
— |
|
Purchases of property and equipment in accounts payable and accrued expenses |
$ |
501 |
|
|
$ |
109 |
|
Assets acquired under capital leases obligations |
$ |
689 |
|
|
$ |
— |
|
| (1) |
Cash, cash equivalents and restricted cash at June 30, 2024 excludes marketable securities of |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730096917/en/
Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
Source: GeneDx
FAQ
What was GeneDx's revenue for Q2 2024?
How much did GeneDx's exome and genome test revenue grow in Q2 2024?
What is GeneDx's updated revenue guidance for full-year 2024?
When does GeneDx (WGS) expect to reach profitability?
What was GeneDx's adjusted gross margin in Q2 2024?
