NeoGenomics (NEO) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 16.1% to $591.6M; adjusted EBITDA improved to $3.5M from a $48.0M loss in FY22.

• Q4 revenue grew 12.1% to $155.6M, with adjusted EBITDA of $9.3M versus an adjusted loss of $1.2M in Q4’22.

• FY24 guidance calls for revenue of $650M–$660M, growth of 10%–12%, and adjusted EBITDA of $21M–$24M.

• Management cited continued investment in people and technology to support growth, profitability and service to patients and providers.

Financial highlights

• Q4 GAAP net loss was $14.3M, or $0.11 per diluted share, versus a $22.7M loss, or $0.18 per share, in Q4’22; FY23 net loss was $88.0M, or $0.70 per share, versus $144.3M, or $1.16 per share, in FY22.

• Q4 gross profit was $67.6M, up 18.9% YoY; operating expenses rose 4% to $86M.

• FY23 adjusted gross profit was $264.2M; adjusted EBITDA was $3.5M versus an adjusted EBITDA loss of $48.0M in FY22.

• FY23 adjusted net loss improved to $15M from $70M in FY22; Q4 adjusted net income was $4M versus an adjusted loss of $7M.

• Q4 operating cash flow was $18M, up $21.5M or 583% YoY; FY23 net cash provided by operating activities was $76.7M, versus $97.6M used in FY22.

Outlook and guidance

• FY24 revenue guidance is $650M–$660M, representing 10%–12% growth.

• FY24 adjusted EBITDA guidance is $21M–$24M, representing 600%–700% growth; adjusted EBITDA growth is expected to exceed revenue growth through margin improvement and operating leverage.

• FY24 GAAP net loss guidance is $66M–$72M; the estimate includes intangible amortization, non-cash stock compensation and restructuring charges excluded from adjusted measures.

• Strategic focus includes sustainable revenue growth while continuing investment in the business and workforce.