GeneDx (WGS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $68.9M–$70.5M, up 52% year-over-year, with exome and genome test revenue up 77% to $50.7M and comprising over 74% of total revenue.

• Adjusted gross margin expanded to 62% from 37% a year ago, with gross profit rising to $43.0M and adjusted net loss narrowing to $2.7M.

• Raised full-year 2024 revenue guidance to $255M–$265M, citing strong first-half performance and reiterating profitability expected in 2025.

• Legacy Sema4 business fully discontinued, with focus on pediatric and rare disease diagnostics and expanded biopharma partnerships.

• Announced partnership with Epic to integrate workflows and expand rapid whole genome sequencing access for pediatric and neonatal patients.

Financial highlights

• Adjusted gross profit reached $42.4M–$43.0M, up 153% year-over-year, with adjusted gross margin at 62%.

• Net cash burn was $6.0M–$6.1M in Q2, improving 89% year-over-year and 65% sequentially.

• Cash, equivalents, and securities totaled $106.9M–$108M as of June 30, 2024.

• Adjusted operating expense was $45M, down 24% year-over-year.

• Net loss narrowed to $29.2M from $46.7M in Q2 2023, reflecting improved operating leverage.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $255M–$265M; adjusted gross margin expected at least 60%.

• Net cash burn guidance improved to $65M–$75M for 2024, including legal settlement absorption.

• Profitability expected in 2025, with breakeven likely in the first half.

• Management believes current liquidity is sufficient for at least the next twelve months.

• Cost-saving initiatives, including workforce reductions, are expected to yield over $40M in annual savings.