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GeneDx Reports Third Quarter 2024 Financial Results and Business Highlights

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GeneDx (WGS) reported strong Q3 2024 results with revenues of $76.6M, marking 52% year-over-year growth. The company achieved profitability with adjusted net income of $1.2M. Exome and genome test revenue grew 77% year-over-year to $60M, with test volume increasing 46% to 19,262. Adjusted gross margins expanded to 64%. The company raised its FY 2024 revenue guidance to $284-290M from previous $255-265M. GeneDx has conducted over 700,000 clinical exomes and genomes, with expanded coverage across 30 state Medicaid programs and growing presence in genomic newborn screening.

GeneDx (WGS) ha riportato forti risultati per il terzo trimestre del 2024, con ricavi di 76,6 milioni di dollari, segnando una crescita del 52% rispetto all'anno precedente. L'azienda ha raggiunto la redditività con un utile netto rettificato di 1,2 milioni di dollari. I ricavi dai test di esoma e genoma sono aumentati del 77% rispetto all'anno precedente, raggiungendo i 60 milioni di dollari, con un volume di test in crescita del 46% a 19.262. I margini lordi rettificati sono aumentati al 64%. L'azienda ha alzato le previsioni di ricavi per l'anno fiscale 2024 a 284-290 milioni di dollari, rispetto ai precedenti 255-265 milioni di dollari. GeneDx ha condotto oltre 700.000 esomi e genomi clinici, con una copertura ampliata in 30 programmi Medicaid statali e una crescente presenza nello screening genomico dei neonati.

GeneDx (WGS) reportó sólidos resultados para el tercer trimestre de 2024, con ingresos de 76,6 millones de dólares, marcando un crecimiento del 52% en comparación con el año anterior. La compañía alcanzó la rentabilidad con un ingreso neto ajustado de 1,2 millones de dólares. Los ingresos por pruebas de exoma y genoma crecieron un 77% en comparación con el año anterior, alcanzando los 60 millones de dólares, con un volumen de pruebas que aumentó un 46% a 19.262. Los márgenes brutos ajustados se expandieron al 64%. La compañía elevó su guía de ingresos para el año fiscal 2024 a 284-290 millones de dólares, desde los anteriores 255-265 millones de dólares. GeneDx ha realizado más de 700.000 exomas y genomas clínicos, con una cobertura ampliada en 30 programas de Medicaid estatales y una creciente presencia en el tamizaje genómico de recién nacidos.

GeneDx (WGS)는 2024년 3분기 강력한 실적을 보고하였으며, 수익이 7,660만 달러에 달해 전년 대비 52% 성장했습니다. 회사는 조정된 순이익 120만 달러를 기록하며 수익성을 달성했습니다. 엑솜 및 유전자 검사 수익은 전년 대비 77% 증가한 6,000만 달러에 도달했으며, 검사량은 46% 증가한 19,262회에 이르렀습니다. 조정된 총 마진은 64%로 확대되었습니다. 회사는 2024 회계연도 매출 전망을 이전의 2억 5,500만-2억 6,500만 달러에서 2억 8,400만-2억 9,000만 달러로 상향 조정했습니다. GeneDx는 700,000건 이상의 임상 엑솜 및 유전자를 신속하게 처리하였고, 30개 주의 Medicaid 프로그램에 걸쳐 확대된 커버리지와 신생아 유전자 검사에 대한 증가하는 존재감을 보이고 있습니다.

GeneDx (WGS) a annoncé de solides résultats pour le troisième trimestre 2024, avec des revenus de 76,6 millions de dollars, marquant une croissance de 52% par rapport à l'année précédente. L'entreprise a atteint la rentabilité avec un revenu net ajusté de 1,2 million de dollars. Les recettes des tests d'exome et de génome ont augmenté de 77% d'une année sur l'autre pour atteindre 60 millions de dollars, avec un volume de tests en hausse de 46% à 19 262. Les marges brutes ajustées se sont élargies à 64%. L'entreprise a relevé ses prévisions de revenus pour l'exercice fiscal 2024 à 284-290 millions de dollars, contre 255-265 millions de dollars précédemment. GeneDx a réalisé plus de 700 000 exomes et génomes cliniques, avec une couverture élargie à travers 30 programmes Medicaid des États et une présence croissante dans le dépistage génomique des nouveau-nés.

GeneDx (WGS) berichtete über starke Ergebnisse im 3. Quartal 2024 mit Einnahmen von 76,6 Millionen Dollar, was einem Wachstum von 52% im Jahresvergleich entspricht. Das Unternehmen erzielte die Rentabilität mit einem bereinigten Nettogewinn von 1,2 Millionen Dollar. Die Einnahmen aus Exom- und Genomtests stiegen im Jahresvergleich um 77% auf 60 Millionen Dollar, wobei das Testvolumen um 46% auf 19.262 anstieg. Die bereinigten Bruttomargen erweiterten sich auf 64%. Das Unternehmen hob seine Umsatzprognose für das Geschäftsjahr 2024 auf 284-290 Millionen Dollar von zuvor 255-265 Millionen Dollar an. GeneDx hat über 700.000 klinische Exome und Genome durchgeführt, mit einer erweiterten Abdeckung in 30 Medicaid-Programmen der Bundesstaaten und einer wachsenden Präsenz im genomischen Neugeborenen-Screening.

Positive
  • Achieved profitability with $1.2M adjusted net income
  • Revenue grew 52% YoY to $76.6M
  • Exome and genome test revenue increased 77% YoY to $60M
  • Adjusted gross margins improved to 64% from 48% YoY
  • Raised FY 2024 revenue guidance to $284-290M
  • Cash burn improved 88% YoY to $5.0M
Negative
  • GAAP net loss of $8.3M
  • Issued 418,653 new shares through ATM offering causing dilution

Insights

GeneDx delivered exceptional Q3 results, marking a pivotal transition to profitability with $1.2M in adjusted net income. Revenue grew 52% year-over-year to $76.6M, driven by robust 77% growth in high-margin exome and genome testing. The improved adjusted gross margin of 64% reflects operational efficiency and strategic focus on genomic testing. The company's strong cash position of $117.4M and reduced cash burn of $5.0M demonstrate effective financial management. The raised FY2024 guidance to $284-290M in revenue signals confidence in sustained growth trajectory and market expansion.

The expansion to 30 states for Medicaid coverage of genomic testing represents significant market penetration. The milestone of 700,000 clinical exomes and genomes, with rapid acceleration in testing volume, validates the growing clinical adoption. The GUARDIAN study results published in JAMA, showing 3.7% positive screenings and 92% of cases identifying conditions missed by traditional screening, demonstrates superior clinical utility. The 5-day turnaround time improvement and upcoming Epic integration position GeneDx as a leader in clinical genomics implementation.

Achieved profitability milestone with third quarter adjusted net income1 of $1.2M

Reported third quarter 2024 revenues2 of $76.6M with 77% year-over-year growth of exome and genome test revenue

Expanded third quarter 2024 adjusted gross margins2 to 64%

Raising guidance to deliver between $284M and $290M in FY 2024 revenue

GeneDx to host conference call today at 8:30 a.m. ET

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

“We delivered 77% growth on exome and genome revenues in Q3 and have reached the point of profitability, a significant milestone in our company’s history,” said Katherine Stueland, CEO of GeneDx. “Our advancements in genomics are redefining the standard of care, setting new industry standards for clinical utility and economic efficiency, and shortening the time to a diagnosis for thousands of families. With an ever-growing number of families eligible for our services, our growth outlook is healthy and sustainable. We continue to bring life-changing impact to the pediatric outpatient and NICU settings, and we are now establishing the foundation for clinically-actionable, responsible, and scalable genomic newborn screening.”

“Once again, our quarterly performance exceeded our top and bottom-line expectations. The third quarter marked our 10th consecutive quarter of cash flow improvement and we achieved positive adjusted net income ahead of our prior target,” said Kevin Feeley, CFO of GeneDx. “With our industry-leading technology and a massive market opportunity ahead, GeneDx will continue to couple financial discipline with strategic investment to accelerate the business and provide answers for even more families in need.”

Third Quarter 2024 Financial Results (Unaudited)1,2

Revenues

  • Revenues from continuing operations grew to $76.6 million, an increase of 52% year-over-year and 11% sequentially.
    • Total company revenues were $76.9 million.
  • Exome and genome test revenue grew to $60.0 million, an increase of 77% year-over-year and 18% sequentially.

Exome and genome volume

  • Exome and genome test results volume grew to 19,262, an increase of 46% year-over-year and 7% sequentially.
  • Exome and genome represented 33% of all test results, up from 23% in the third quarter of 2023 and up from 31% in the second quarter of 2024.

Gross margin

  • Adjusted gross margin from continuing operations expanded to 64%, up from 48% in the third quarter of 2023 and up from 62% in the second quarter of 2024.
    • Total company gross margin was 62%.

Operating expenses

  • Adjusted total operating expenses were $46.6 million, a decrease of 2% year-over-year and an increase of 4% sequentially.
    • Total GAAP operating expenses were $54.8 million.

Net Income (Loss)

  • Adjusted net income improved to $1.2 million, an improvement of 106% year-over-year and 143% sequentially.
    • GAAP net loss was $8.3 million.

Cash burn and cash position

  • Total net use of cash was $5.0 million in the third quarter of 2024, an improvement of 88% year-over-year and 17% sequentially.
  • Cash, cash equivalents, marketable securities and restricted cash was $117.4 million as of September 30, 2024, inclusive of proceeds of $14.6 million, net of fees, from the issuance of 418,653 shares of Class A common stock in connection with sales pursuant to our “at-the-market” offering during the third quarter of 2024.

GeneDx Full Year 2024 Guidance

GeneDx has updated full year 2024 guidance. Management expects GeneDx to:

  • Drive full year 2024 revenues2 between $284 and $290 million (previous guidance was between $255 and $265 million);
  • Expand full year 2024 adjusted gross margin2 profile to at least 62% (previous guidance was at least 60%);
  • Use between $60 to $65 million of net cash for full year 2024 (previous guidance was between $65 to $70 million)
  1. Adjusted gross margin, adjusted total operating expenses and adjusted net income (loss) are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented.
  2. 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 are labeled accordingly and include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities for the current and all comparative periods.

Third Quarter 2024 Business Highlights

Driving sustainable growth and expanding access for more patient populations

  • Achieved over 700,000 clinical exomes and genomes sequenced, with over 100,000 completed in the last six months alone
  • Accelerated adoption of whole exome sequencing (WES) and whole genome sequencing (WGS) coverage by state Medicaid programs, bringing total states covering exome or genome sequencing in the pediatric outpatient setting to 30
    • Indiana - WES and WGS (July 2024)
    • Connecticut - WGS (July 2024)
    • Texas - WGS (September 2024)
    • Florida - WGS (October 2024)
  • The Centers for Medicare & Medicaid Services issued “historic guidance” to state Medicaid agencies, underscoring their obligation to provide all medically necessary services under the Early and Periodic Screening, Diagnostic, and Treatment (EPSDT) benefit
    • Under EPSDT, every Medicaid-enrolled child under 21 is entitled to services that meet their unique medical needs. This includes diagnostics like exome and genome sequencing - some of the most powerful tools we have to unlock appropriate care, treatments, and crucial support systems for these children.
  • Expanded the Epilepsy Partnership Program, a first-of-its-kind patient access program that is increasing access to exome and genome sequencing for pediatric epilepsy patients, by including an additional biopharma partner
  • Collaborated with researchers from Wellcome Sanger Institute to release data from the largest and most diverse study to date, with data from more than 30,000 patients, on how recessive genetic changes contribute to developmental disorders in children
    • On September 23, 2024, findings from the study were published in Nature Genetics, showcasing that most new recessive developmental disorder diagnoses lie within known genes.
    • The publication is further evidence of our commitment to the important role of diversity in genomics and belief that serving a more diverse patient population drives more definitive diagnoses for patients of all backgrounds.

Demonstrating genome leadership in the neonatal inventive care unit (NICU)

  • Launched improvements to our rapid whole genome sequencing product, including cheek swabs for more accessible sample collection, and shortened turnaround times to as soon as five days
  • Progressed initiative to launch Epic Aura in the first half of 2025, which will seamlessly integrate GeneDx exome and genome testing into the ordering and resulting workflows of many of the largest health systems across the country

Leaders in genomic newborn screening (gNBS)

  • Conducted more gNBS than any other lab in the United States and successfully executed multi-site implementation strategies across diverse patient populations, positioning GeneDx as the clear leader set to revolutionize the standard approach to NBS
  • Revealed limitations of traditional newborn screening methods and showcased the promise of advanced genomic technology to deliver equitable health care for all children
    • On October 24, 2024, findings from the GUARDIAN study were published in JAMA (Journal of the American Medical Association), a leading peer-reviewed medical journal.
    • GUARDIAN goes beyond the typical newborn screening panel of about 60 conditions to now over 450-early onset genetic conditions with established effective interventions.
    • Over the initial 11-month period, 4,000 newborns were enrolled and 3.7% of newborns had positive screenings.
    • By referencing our internal database, one of the largest of its kind enriched for rare disease, we find that the average age of diagnosis for children with these same conditions ranges from 7-11 years.
    • Of the newborns with true positive findings, 92% had a confirmed diagnosis for a condition not included in traditional NBS.
    • The study highlights the wide acceptance of more advanced and modernized NBS, with 72% of families approached for the study consenting to participate.

Webcast and Conference Call Details

GeneDx will host a conference call today, October 29, 2024, 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/.

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, and our use of net cash in 2024. 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. 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

 

 

3Q24

 

 

2Q24

 

1Q24

 

4Q23

 

3Q23

Volumes

 

 

 

 

 

 

 

 

 

Whole exome, whole genome

 

19,262

 

 

 

18,017

 

 

16,592

 

 

15,663

 

 

13,216

Hereditary cancer

 

4,672

 

 

 

5,482

 

 

6,868

 

 

8,240

 

 

8,556

Other panels

 

35,095

 

 

 

34,204

 

 

31,763

 

 

33,692

 

 

35,861

Total

 

59,029

 

 

 

57,703

 

 

55,223

 

 

57,595

 

 

57,633

 

 

 

 

 

 

 

 

 

 

Revenue ($ millions)

 

 

 

 

 

 

 

 

 

Whole exome, whole genome

$

60.0

 

 

$

50.7

 

$

44.0

 

$

39.2

 

$

34.0

Hereditary cancer

 

3.3

 

 

 

3.8

 

 

5.5

 

 

5.5

 

 

4.5

Other panels

 

13.8

 

 

 

13.3

 

 

10.7

 

 

11.2

 

 

10.6

Data information

 

(0.5

)

 

 

1.1

 

 

1.3

 

 

2.2

 

 

1.3

Total

$

76.6

 

 

$

68.9

 

$

61.5

 

$

58.1

 

$

50.4

 

Unaudited Select Financial Information (in thousands)

 

Three months ended September 30, 2024

 

Three months ended June 30, 2024

 

GeneDx

 

Legacy Sema4

 

Total

 

GeneDx

 

Legacy Sema4

 

Total

Revenue

$76,622

 

$252

 

$76,874

 

$68,924

 

$1,590

 

$70,514

Adjusted cost of services

27,370

 

 

27,370

 

26,523

 

145

 

26,668

Adjusted gross profit

$49,252

 

$252

 

$49,504

 

$42,401

 

$1,445

 

$43,846

Adjusted gross margin %

64.3%

 

100.0%

 

64.4%

 

61.5%

 

90.9%

 

62.2%

 

 

Three months ended September 30, 2023

 

GeneDx

 

Legacy Sema4

 

Total

Revenue

$50,350

 

$2,953

 

$53,303

Adjusted cost of services

26,079

 

225

 

26,304

Adjusted gross profit

$24,271

 

$2,728

 

$26,999

Adjusted gross margin %

48.2%

 

92.4%

 

50.7%

 

 

Three months ended September 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

$

77,418

 

 

$

 

 

$

 

 

$

 

 

$

 

$

 

$

 

 

$

77,418

 

Other revenue

 

(544

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(544

)

Total revenue

 

76,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76,874

 

Cost of services

 

29,045

 

 

 

(1,495

)

 

 

(174

)

 

 

(6

)

 

 

 

 

 

 

 

 

 

27,370

 

Gross profit

 

47,829

 

 

 

1,495

 

 

 

174

 

 

 

6

 

 

 

 

 

 

 

 

 

 

49,504

 

Gross margin

 

62.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64.4

%

Research and development

 

11,665

 

 

 

(222

)

 

 

(537

)

 

 

 

 

 

 

 

 

 

 

 

 

10,906

 

Selling and marketing

 

17,025

 

 

 

(1,225

)

 

 

(394

)

 

 

(55

)

 

 

 

 

 

 

 

 

 

15,351

 

General and administrative

 

26,145

 

 

 

(2,987

)

 

 

(2,531

)

 

 

(308

)

 

 

 

 

 

 

 

 

 

20,319

 

Impairment loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other, net

 

774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

774

 

Loss from operations

 

(7,780

)

 

 

5,929

 

 

 

3,636

 

 

 

369

 

 

 

 

 

 

 

 

 

 

2,154

 

Interest income (expense), net

 

(843

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(843

)

Other income (expense), net

 

264

 

 

 

 

 

 

 

 

 

 

 

 

880

 

 

 

 

(1,327

)

 

 

(183

)

Income tax benefit

 

47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47

 

Net income (loss)

$

(8,312

)

 

$

5,929

 

 

$

3,636

 

 

$

369

 

 

$

880

 

$

 

$

(1,327

)

 

$

1,175

 

 

 

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

 

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

 

 

 

(415

)

 

 

 

 

 

 

 

 

 

 

15,238

 

General and administrative

 

26,099

 

 

 

(5,551

)

 

 

(1,004

)

 

 

(754

)

 

 

 

 

 

 

 

 

 

 

18,790

 

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

)

 

 

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

 

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

)

 

GeneDx Holdings Corp.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)

 
 

 

September 30, 2024
(Unaudited)

 

December 31, 2023

Assets:

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

57,894

 

 

$

99,681

 

Marketable securities

 

58,566

 

 

 

30,467

 

Accounts receivable

 

38,220

 

 

 

32,371

 

Due from related parties

 

260

 

 

 

445

 

Inventory, net

 

10,770

 

 

 

8,777

 

Prepaid expenses and other current assets

 

20,300

 

 

 

10,598

 

Total current assets

 

186,010

 

 

 

182,339

 

Operating lease right-of-use assets

 

24,936

 

 

 

26,900

 

Property and equipment, net

 

31,452

 

 

 

32,479

 

Intangible assets, net

 

162,106

 

 

 

172,625

 

Other assets (1)

 

4,336

 

 

 

4,413

 

Total assets

$

408,840

 

 

$

418,756

 

Liabilities and Stockholders’ Equity:

 

 

 

Current liabilities:

 

 

 

Accounts payable and accrued expenses

$

56,416

 

 

$

37,456

 

Due to related parties

 

727

 

 

 

1,379

 

Short-term lease liabilities

 

3,698

 

 

 

3,647

 

Other current liabilities

 

16,501

 

 

 

16,336

 

Total current liabilities

 

77,342

 

 

 

58,818

 

Long-term debt, net of current portion

 

52,034

 

 

 

52,688

 

Long-term lease liabilities

 

60,369

 

 

 

62,938

 

Other liabilities

 

13,540

 

 

 

14,735

 

Deferred taxes

 

1,054

 

 

 

1,560

 

Total liabilities

 

204,339

 

 

 

190,739

 

Stockholders’ Equity:

 

 

 

Preferred stock

 

 

 

 

 

Class A common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

1,561,493

 

 

 

1,527,778

 

Accumulated deficit

 

(1,357,912

)

 

 

(1,300,188

)

Accumulated other comprehensive income

 

918

 

 

 

425

 

Total stockholders’ equity

 

204,501

 

 

 

228,017

 

Total liabilities and stockholders’ equity

$

408,840

 

 

$

418,756

 

 

(1) Other assets includes $987 thousand of restricted cash as of both September 30, 2024 and December 31, 2023.

 

GeneDx Holdings Corp.
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share amounts)

 
 

 

Three months ended September 30,

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

 

 

 

 

 

 

 

Diagnostic test revenue

$

77,418

 

 

$

51,955

 

 

$

207,961

 

 

$

140,440

 

Other revenue

 

(544

)

 

 

1,348

 

 

 

1,849

 

 

 

4,708

 

Total revenue

 

76,874

 

 

 

53,303

 

 

 

209,810

 

 

 

145,148

 

Cost of services

 

29,045

 

 

 

28,044

 

 

 

81,618

 

 

 

85,896

 

Gross profit

 

47,829

 

 

 

25,259

 

 

 

128,192

 

 

 

59,252

 

Research and development

 

11,665

 

 

 

14,288

 

 

 

34,134

 

 

 

46,018

 

Selling and marketing

 

17,025

 

 

 

16,763

 

 

 

49,695

 

 

 

45,397

 

General and administrative

 

26,145

 

 

 

26,099

 

 

 

73,760

 

 

 

107,129

 

Impairment loss

 

 

 

 

8,282

 

 

 

 

 

 

10,402

 

Other operating expenses, net

 

774

 

 

 

2,794

 

 

 

2,622

 

 

 

5,259

 

Loss from operations

 

(7,780

)

 

 

(42,967

)

 

 

(32,019

)

 

 

(154,953

)

 

 

 

 

 

 

 

 

Non-operating income (expenses), net

 

 

 

 

 

 

 

Change in fair value of warrants and earn-out contingent liabilities

 

(880

)

 

 

590

 

 

 

(11,390

)

 

 

684

 

Interest (expense) income, net

 

(843

)

 

 

1,053

 

 

 

(2,334

)

 

 

2,092

 

Other income (expense), net

 

1,144

 

 

 

(1,134

)

 

 

(12,300

)

 

 

1,668

 

Total non-operating income (expense), net

 

(579

)

 

 

509

 

 

 

(26,024

)

 

 

4,444

 

Loss before income taxes

 

(8,359

)

 

 

(42,458

)

 

$

(58,043

)

 

$

(150,509

)

Income tax benefit

 

47

 

 

 

172

 

 

 

319

 

 

 

515

 

Net loss

$

(8,312

)

 

$

(42,286

)

 

$

(57,724

)

 

$

(149,994

)

 

 

 

 

 

 

 

 

Weighted average shares outstanding of Class A common stock

 

27,095,986

 

 

 

25,788,747

 

 

 

26,593,877

 

 

 

23,777,327

 

Basic and diluted net loss per share, Class A common stock

$

(0.31

)

 

$

(1.64

)

 

$

(2.17

)

 

$

(6.31

)

 

GeneDx Holdings Corp.
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)

 
 

 

Nine months ended September 30,

 

 

2024

 

 

 

2023

 

Operating activities

 

 

 

Net loss

$

(57,724

)

 

$

(149,994

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization expense

 

16,395

 

 

 

27,640

 

Stock-based compensation expense

 

6,293

 

 

 

586

 

Change in fair value of warrants and contingent liabilities

 

11,390

 

 

 

(684

)

Deferred tax benefit

 

(319

)

 

 

(515

)

Provision for excess and obsolete inventory

 

137

 

 

 

3,634

 

Legal reserves

 

12,123

 

 

 

 

Change in third party payor reserves

 

737

 

 

 

(6,848

)

Gain on sale of assets

 

 

 

 

(2,954

)

Gain on debt forgiveness

 

 

 

 

(2,750

)

Impairment loss

 

 

 

 

10,402

 

Other

 

2,639

 

 

 

1,071

 

Change in operating assets and liabilities:

 

 

 

Accounts receivable

 

(5,850

)

 

 

10,726

 

Inventory

 

(2,131

)

 

 

682

 

Accounts payable and accrued expenses

 

(7,807

)

 

 

(39,913

)

Other assets and liabilities

 

(1,196

)

 

 

(1,372

)

Net cash used in operating activities

 

(25,313

)

 

 

(150,289

)

Investing activities

 

 

 

Consideration on escrow paid for Legacy GeneDx acquisition

 

 

 

 

(12,144

)

Purchases of property and equipment

 

(2,441

)

 

 

(2,874

)

Proceeds from sales of assets

 

 

 

 

3,887

 

Purchases of marketable securities

 

(52,725

)

 

 

(43,935

)

Proceeds from sales of marketable securities

 

598

 

 

 

 

Proceeds from maturities of marketable securities

 

24,955

 

 

 

16,665

 

Development of internal-use software assets

 

 

 

 

(461

)

Net cash used in investing activities

 

(29,613

)

 

 

(38,862

)

Financing activities

 

 

 

Proceeds from offerings, net of issuance costs

 

14,589

 

 

 

143,002

 

Exercise of stock options

 

247

 

 

 

266

 

Long-term debt principal payments

 

(198

)

 

 

(2,000

)

Finance lease payoff and principal payments

 

(1,499

)

 

 

(2,133

)

Net cash provided by financing activities

 

13,139

 

 

 

139,135

 

Net decrease in cash, cash equivalents and restricted cash

 

(41,787

)

 

 

(50,016

)

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)

$

58,881

 

 

$

88,287

 

 

 

 

 

Supplemental disclosures of cash flow information

 

 

 

Cash paid for interest

$

6,068

 

 

$

1,116

 

Cash paid for taxes

$

910

 

 

$

1,178

 

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

$

2,612

 

 

$

1,220

 

Assets acquired under capital leases obligations

$

689

 

 

$

 

 

(1) Cash, cash equivalents and restricted cash at September 30, 2024 excludes marketable securities of $58.6 million.

 

Investor Relations Contact:

Investors@GeneDx.com



Media Contact:

Press@GeneDx.com

Source: GeneDx

FAQ

What was GeneDx's (WGS) revenue growth in Q3 2024?

GeneDx reported Q3 2024 revenues of $76.6M, representing 52% year-over-year growth and 11% sequential growth.

How many exome and genome tests did GeneDx (WGS) perform in Q3 2024?

GeneDx performed 19,262 exome and genome tests in Q3 2024, a 46% increase year-over-year and 7% sequential growth.

What is GeneDx's (WGS) updated revenue guidance for FY 2024?

GeneDx raised its FY 2024 revenue guidance to between $284M and $290M, up from previous guidance of $255-265M.

How many state Medicaid programs cover GeneDx's (WGS) exome or genome sequencing?

As of Q3 2024, 30 state Medicaid programs cover GeneDx's exome or genome sequencing in the pediatric outpatient setting.

GeneDx Holdings Corp.

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