GeneDx (WGS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue from continuing operations reached $68.9M, up 52% year-over-year and 12% sequentially, with exome and genome test revenue up 77% year-over-year to $50.7M.

• Adjusted gross margin expanded to 62% from 37% a year ago, with adjusted gross profit reaching $42.8M, up 153% year-over-year.

• Net loss narrowed to $29.2M from $46.7M in Q2 2023, with adjusted net loss improving to $2.7M, a 93% year-over-year improvement.

• 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.

Financial highlights

• Q2 2024 revenue from continuing operations: $68.9M; total company revenue: $70.5M.

• Adjusted gross profit was $42.4M, with adjusted gross margin at 62% in Q2 2024, up from 37% in Q2 2023 and 61% in Q1 2024.

• Net cash burn was $6.1M in Q2 2024, improving 89% year-over-year and 65% sequentially.

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

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

Outlook and guidance

• Full-year 2024 revenue guidance raised to $255M–$265M (previously $235M–$245M).

• Adjusted gross margin expected to be at least 60% for 2024.

• Net cash use for 2024 expected between $65M–$75M, absorbing potential legal settlements.

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

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