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 up 40%, now 30% of clinical revenue.

• 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 positive quarter.

• Raised full-year revenue and adjusted EBITDA guidance, reflecting strong performance and confidence in continued growth.

• Strategic focus on expanding commercial reach, launching innovative products, and leveraging data assets for long-term growth.

Financial highlights

• Q2 2024 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 rose 630% to $11 million; net loss per share improved to $(0.15) from $(0.19) year-over-year.

• Cash and marketable securities totaled $388 million at quarter-end; positive operating cash flow of $14 million.

• Operating expenses increased to $94 million, mainly from higher compensation and legal fees.

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.

• Continued investment in commercial expansion, product innovation, and new NGS product launches expected to drive future growth.