GeneDx (WGS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $76.6M–$76.9M, up 52% year-over-year, with exome/genome test revenue up 77% and test volumes rising 46%.

• Achieved first adjusted profitability with $1.2M adjusted net income; GAAP net loss narrowed to $8.3M.

• Adjusted gross margin expanded to 64% from 48% a year ago, driven by operational efficiency and reimbursement gains.

• Raised full-year 2024 revenue guidance to $284M–$290M and adjusted gross margin guidance to at least 62%.

• Expanded leadership in genomic newborn screening and Medicaid coverage, with over 700,000 exomes/genomes sequenced to date.

Financial highlights

• Exome/genome test revenue was $60M in Q3 2024, up 77% year-over-year and 18% sequentially.

• Adjusted gross profit was $49.3M, with a 64% adjusted gross margin.

• Total company revenue was $76.6M–$76.9M; gross profit was $47.8M, with a 62% gross margin.

• Net cash burn for Q3 was $5M, an 88% year-over-year improvement.

• Cash, equivalents, and securities totaled $116.5M–$117.4M at September 30, 2024.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $284M–$290M, with adjusted gross margin expected at least 62%.

• Net cash use for 2024 projected at $60M–$65M, improved from previous guidance.

• Q4 expected to be seasonally strongest, but guidance allows for weather and portfolio impacts.

• 2025 growth expected from further NICU penetration and Epic Aura partnership.

• Management believes liquidity is sufficient for at least 12 months, with focus on cost reduction and efficiency.