NeoGenomics (NEO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 12% year-over-year to $165 million, driven by Clinical Services growth and NGS volumes, with NGS representing 30% of clinical revenue and growing 40% year-over-year.

• Net loss narrowed to $18.6 million from $24.3 million in Q2 2023; Adjusted EBITDA turned positive at $11 million, a 630% increase, marking the fourth consecutive quarter of positive adjusted EBITDA.

• Raised full-year revenue and adjusted EBITDA guidance, reflecting strong performance, new product launches, and confidence in long-term growth.

• Continued investment in commercial expansion, digital transformation, and product innovation to sustain growth.

Financial highlights

• Q2 revenue reached $165 million, up 12% year-over-year; clinical services revenue up 15% to $141 million, advanced diagnostics revenue down 3% to $23 million.

• Adjusted gross profit increased 20% to $78 million; adjusted gross margin improved by 320 basis points to 47.3%.

• Adjusted EBITDA reached $11 million, a $13 million improvement over prior year; adjusted EBITDA margin was 6.6%.

• Net loss per share improved to $(0.15) from $(0.19) year-over-year.

• Cash and marketable securities totaled $388 million at quarter end.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $655–$667 million (11–13% growth); adjusted EBITDA guidance increased to $33–$37 million, up over 1,000% from 2023.

• Net loss for 2024 expected between $88 million and $81 million; adjusted diluted EPS guided to $0.02–$0.07.

• Second half revenue growth expected to be weighted toward Q4 due to new product launches and business wins.