STAMFORD, Conn., April 29, 2024 (GLOBE NEWSWIRE) -- GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the first quarter of 2024.
“Our strong first quarter results reflect our continued dedication to our three key organizational focuses: growing exome and genome revenue, increasing our average reimbursement rates while expanding access to testing, and meaningfully reducing our cash burn,” said Katherine Stueland, Chief Executive Officer of GeneDx. “Our team’s successful execution in the first quarter gives us the confidence to raise full year 2024 revenue guidance to between $235-$245 million and reiterate our expectation to reach profitability in 2025.”
First Quarter 2024 Financial Results (Unaudited)1,2
Revenues
Exome and genome volume
Gross margin
Operating expenses
Net loss
Cash burn and cash position
Updated GeneDx Full Year 2024 Guidance
GeneDx has updated its full year 2024 guidance. Management expects GeneDx to:
First Quarter 2024 Business Highlights
Driving sustainable growth and market leadership
Webcast and Conference Call Details
GeneDx will host a conference call today, April 29, 2024, at 4:30 p.m. Eastern Time. Investors interested in listening to the conference call are required to register online. A live and archived webcast of the event will be available on the “Events” section of the GeneDx investor relations website at https://ir.genedx.com/.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws, including statements regarding our future performance and our market opportunity, including our expected full year 2024 reported revenue guidance, our expectations regarding our adjusted gross margin profile in 2024, our use of net cash in 2024 and our turning profitable in 2025. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: (i) our ability to implement business plans, goals and forecasts, and identify and realize additional opportunities, (ii) the risk of downturns and a changing regulatory landscape in the highly competitive healthcare industry, (iii) the size and growth of the market in which we operate, (iv) our ability to pursue our new strategic direction, and (vi) our ability to enhance our artificial intelligence tools that we use in our clinical interpretation platform. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on February 23, 2024 and other documents filed by us from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.
About GeneDx
At GeneDx (Nasdaq: WGS), we believe that everyone deserves personalized, targeted medical care—and that it all begins with a genetic diagnosis. Fueled by one of the world’s largest rare disease data sets, our industry-leading exome and genome tests translate complex genomic data into clinical answers that unlock personalized health plans, accelerate drug discovery, and improve health system efficiencies. It all starts with a single test. For more information, please visit genedx.com and connect with us on LinkedIn, X, Facebook, and Instagram.
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Volume and revenue in the table below include the combination of the Legacy GeneDx diagnostic business with the data and information business of Legacy Sema4.
Volume & Revenue
| 1Q24 | 4Q23 | 3Q23 | 2Q23 | 1Q23 | |||||||||||||||
| Volumes | |||||||||||||||||||
| Whole exome, whole genome | 16,592 | 15,663 | 13,216 | 11,855 | 8,705 | ||||||||||||||
| Hereditary cancer | 6,868 | 8,240 | 8,556 | 7,142 | 7,120 | ||||||||||||||
| Other panels | 31,763 | 33,692 | 35,861 | 35,931 | 36,953 | ||||||||||||||
| Total | 55,223 | 57,595 | 57,633 | 54,928 | 52,778 | ||||||||||||||
| Revenue ($ millions) | |||||||||||||||||||
| Whole exome, whole genome | $ | 44.0 | $ | 39.2 | $ | 34.0 | $ | 28.7 | $ | 22.4 | |||||||||
| Hereditary cancer | 5.5 | 5.5 | 4.5 | 3.8 | 4.3 | ||||||||||||||
| Other panels | 10.7 | 11.2 | 10.6 | 10.6 | 12.7 | ||||||||||||||
| Data information | 1.3 | 2.2 | 1.3 | 2.1 | 1.3 | ||||||||||||||
| Total | $ | 61.5 | $ | 58.1 | $ | 50.4 | $ | 45.2 | $ | 40.7 | |||||||||
Unaudited Select Financial Information (in thousands)
| Three months ended March 31, 2024 | Three months ended December 31, 2023 | ||||||||||||||||||||||
| GeneDx | Legacy Sema4 | Total | GeneDx | Legacy Sema4 | Total | ||||||||||||||||||
| Revenue | $ | 61,461 | $ | 961 | $ | 62,422 | $ | 58,107 | $ | (689 | ) | $ | 57,418 | ||||||||||
| Adjusted cost of services | 24,099 | — | 24,099 | 25,626 | — | 25,626 | |||||||||||||||||
| Adjusted gross profit (loss) | $ | 37,362 | $ | 961 | $ | 38,323 | $ | 32,481 | $ | (689 | ) | $ | 31,792 | ||||||||||
| Adjusted gross margin % | 60.8 | % | (100.0 | )% | 61.4 | % | 55.9 | % | 100.0 | % | 55.4 | % | |||||||||||
| Three months ended March 31, 2023 | |||||||||||
| GeneDx | Legacy Sema4 | Total | |||||||||
| Revenue | $ | 40,693 | $ | 2,446 | $ | 43,139 | |||||
| Adjusted cost of services | 26,826 | 2,080 | 28,906 | ||||||||
| Adjusted gross profit (loss) | $ | 13,867 | $ | 366 | $ | 14,233 | |||||
| Adjusted gross margin % | 34.1 | % | 15.0 | % | 33.0 | % | |||||
| Three months ended March 31, 2024 | |||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||
| Diagnostic test revenue | $ | 61,104 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 61,104 | |||||||||||||||
| Other revenue | 1,318 | — | — | — | — | — | — | 1,318 | |||||||||||||||||||||||
| Total revenue | 62,422 | — | — | — | — | — | — | 62,422 | |||||||||||||||||||||||
| Cost of services | 25,011 | (816 | ) | (48 | ) | (48 | ) | — | — | — | 24,099 | ||||||||||||||||||||
| Gross profit (loss) | 37,411 | 816 | 48 | 48 | — | — | — | 38,323 | |||||||||||||||||||||||
| Gross margin | 59.9 | % | 61.4 | % | |||||||||||||||||||||||||||
| Research and development | 11,567 | (196 | ) | 187 | (103 | ) | — | — | — | 11,455 | |||||||||||||||||||||
| Selling and marketing | 16,085 | (1,225 | ) | 20 | (400 | ) | — | — | — | 14,480 | |||||||||||||||||||||
| General and administrative | 22,445 | (3,011 | ) | 292 | (292 | ) | — | — | — | 19,434 | |||||||||||||||||||||
| Impairment loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Other, net | 974 | — | — | — | — | — | — | 974 | |||||||||||||||||||||||
| Loss from operations | (13,660 | ) | 5,248 | (451 | ) | 843 | — | — | — | (8,020 | ) | ||||||||||||||||||||
| Interest income (expense), net | (597 | ) | — | — | — | — | — | — | (597 | ) | |||||||||||||||||||||
| Other income (expense), net | (6,064 | ) | — | — | — | 6,101 | — | — | 37 | ||||||||||||||||||||||
| Income tax benefit | 82 | — | — | — | — | — | — | 82 | |||||||||||||||||||||||
| Net loss | $ | (20,239 | ) | $ | 5,248 | $ | (451 | ) | $ | 843 | $ | 6,101 | $ | — | $ | — | $ | (8,498 | ) | ||||||||||||
| Three months ended March 31, 2023 | |||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||
| Diagnostic test revenue | $ | 41,850 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 41,850 | |||||||||||||||||
| Other revenue | 1,289 | — | — | — | — | — | — | 1,289 | |||||||||||||||||||||||
| Total revenue | 43,139 | — | — | — | — | — | — | 43,139 | |||||||||||||||||||||||
| Cost of services | 27,903 | (589 | ) | 1,666 | (74 | ) | — | — | — | 28,906 | |||||||||||||||||||||
| Gross profit (loss) | 15,236 | 589 | (1,666 | ) | 74 | — | — | — | 14,233 | ||||||||||||||||||||||
| Gross margin | 35.3 | % | 33.0 | % | |||||||||||||||||||||||||||
| Research and development | 14,592 | (852 | ) | (943 | ) | (91 | ) | — | — | — | 12,706 | ||||||||||||||||||||
| Selling and marketing | 13,452 | (1,227 | ) | (63 | ) | (142 | ) | — | — | — | 12,020 | ||||||||||||||||||||
| General and administrative | 43,689 | (5,968 | ) | (708 | ) | (395 | ) | — | — | — | 36,618 | ||||||||||||||||||||
| Impairment loss | 2,120 | — | — | — | — | (2,120 | ) | — | — | ||||||||||||||||||||||
| Other, net | 1,747 | — | — | — | — | — | — | 1,747 | |||||||||||||||||||||||
| Loss from operations | (60,364 | ) | 8,636 | 48 | 702 | — | 2,120 | — | (48,858 | ) | |||||||||||||||||||||
| Interest income (expense), net | (35 | ) | — | — | — | — | — | — | (35 | ) | |||||||||||||||||||||
| Other income (expense), net | (737 | ) | — | — | — | 3,453 | — | (2,750 | ) | (34 | ) | ||||||||||||||||||||
| Income tax benefit | 147 | — | — | — | — | — | — | 147 | |||||||||||||||||||||||
| Net loss | $ | (60,989 | ) | $ | 8,636 | $ | 48 | $ | 702 | $ | 3,453 | $ | 2,120 | $ | (2,750 | ) | $ | (48,780 | ) | ||||||||||||
| Three months ended December 31, 2023 | |||||||||||||||||||||||||||||||
| Reported | Depreciation and amortization | Stock-based compensation expense | Restructuring costs | Change in FV of financial liabilities | Charges related to business exit | Other | Adjusted | ||||||||||||||||||||||||
| Diagnostic test revenue | $ | 55,214 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 55,214 | |||||||||||||||
| Other revenue | 2,204 | — | — | — | — | — | — | 2,204 | |||||||||||||||||||||||
| Total revenue | 57,418 | — | — | — | — | — | — | 57,418 | |||||||||||||||||||||||
| Cost of services | 26,664 | (915 | ) | (123 | ) | — | — | — | — | 25,626 | |||||||||||||||||||||
| Gross profit (loss) | 30,754 | 915 | 123 | — | — | — | — | 31,792 | |||||||||||||||||||||||
| Gross margin | 53.6 | % | 55.4 | % | |||||||||||||||||||||||||||
| Research and development | 12,248 | (919 | ) | 2,320 | (1,300 | ) | — | — | — | 12,349 | |||||||||||||||||||||
| Selling and marketing | 15,559 | (1,225 | ) | 1,071 | (487 | ) | — | — | — | 14,918 | |||||||||||||||||||||
| General and administrative | 26,626 | (3,035 | ) | (2,356 | ) | (197 | ) | — | — | — | 21,038 | ||||||||||||||||||||
| Impairment loss | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
| Other, net | 1,964 | — | — | — | — | (1,277 | ) | — | 687 | ||||||||||||||||||||||
| Loss from operations | (25,643 | ) | 6,094 | (912 | ) | 1,984 | — | 1,277 | — | (17,200 | ) | ||||||||||||||||||||
| Interest income (expense), net | (978 | ) | — | — | — | — | — | — | (978 | ) | |||||||||||||||||||||
| Other income (expense), net | 437 | — | — | — | (485 | ) | — | 48 | — | ||||||||||||||||||||||
| Income tax benefit | 411 | — | — | — | — | — | — | 411 | |||||||||||||||||||||||
| Net loss | $ | (25,773 | ) | $ | 6,094 | $ | (912 | ) | $ | 1,984 | $ | (485 | ) | $ | 1,277 | $ | 48 | $ | (17,767 | ) | |||||||||||
| GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) | |||||||
| March 31, 2024 (Unaudited) | December 31, 2023 | ||||||
| Assets: | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 83,673 | $ | 99,681 | |||
| Marketable securities | 29,239 | 30,467 | |||||
| Accounts receivable | 28,151 | 32,371 | |||||
| Due from related parties | 772 | 445 | |||||
| Inventory, net | 11,615 | 8,777 | |||||
| Prepaid expenses and other current assets | 9,974 | 10,598 | |||||
| Total current assets | 163,424 | 182,339 | |||||
| Operating lease right-of-use assets | 26,304 | 26,900 | |||||
| Property and equipment, net | 31,301 | 32,479 | |||||
| Intangible assets, net | 169,119 | 172,625 | |||||
| Other assets (1) | 4,380 | 4,413 | |||||
| Total assets | $ | 394,528 | $ | 418,756 | |||
| Liabilities and Stockholders’ Equity: | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 32,410 | $ | 37,456 | |||
| Due to related parties | 1,041 | 1,379 | |||||
| Short-term lease liabilities | 4,043 | 3,647 | |||||
| Other current liabilities | 13,240 | 16,336 | |||||
| Total current liabilities | 50,734 | 58,818 | |||||
| Long-term debt, net of current portion | 52,293 | 52,688 | |||||
| Long-term lease liabilities | 62,030 | 62,938 | |||||
| Other liabilities | 20,836 | 14,735 | |||||
| Deferred taxes | 1,418 | 1,560 | |||||
| Total liabilities | 187,311 | 190,739 | |||||
| Stockholders’ Equity: | |||||||
| Preferred stock | — | — | |||||
| Class A common stock | 2 | 2 | |||||
| Additional paid-in capital | 1,527,351 | 1,527,778 | |||||
| Accumulated deficit | (1,320,427 | ) | (1,300,188 | ) | |||
| Accumulated other comprehensive income | 291 | 425 | |||||
| Total stockholders’ equity | 207,217 | 228,017 | |||||
| Total liabilities and stockholders’ equity | $ | 394,528 | $ | 418,756 | |||
| (1) | Other assets includes $987 thousand of restricted cash as of both March 31, 2024 and December 31, 2023. |
| GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) | |||||||
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenue | |||||||
| Diagnostic test revenue | $ | 61,104 | $ | 41,850 | |||
| Other revenue | 1,318 | 1,289 | |||||
| Total revenue | 62,422 | 43,139 | |||||
| Cost of services | 25,011 | 27,903 | |||||
| Gross profit | 37,411 | 15,236 | |||||
| Research and development | 11,567 | 14,592 | |||||
| Selling and marketing | 16,085 | 13,452 | |||||
| General and administrative | 22,445 | 43,689 | |||||
| Impairment loss | — | 2,120 | |||||
| Other operating expenses, net | 974 | 1,747 | |||||
| Loss from operations | (13,660 | ) | (60,364 | ) | |||
| Non-operating income (expenses), net | |||||||
| Change in fair value of warrants and earn-out contingent liabilities | (6,101 | ) | (3,453 | ) | |||
| Interest expense, net | (597 | ) | (35 | ) | |||
| Other income, net | 37 | 2,716 | |||||
| Total non-operating loss, net | (6,661 | ) | (772 | ) | |||
| Loss before income taxes | $ | (20,321 | ) | $ | (61,136 | ) | |
| Income tax benefit | 82 | 147 | |||||
| Net loss | $ | (20,239 | ) | $ | (60,989 | ) | |
| Weighted average shares outstanding of Class A common stock | 26,062,170 | 20,061,945 | |||||
| Basic and diluted net loss per share, Class A common stock | $ | (0.78 | ) | $ | (3.04 | ) | |
| GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) | |||||||
| Three months ended March 31, | |||||||
| 2024 | 2023 | ||||||
| Operating activities | |||||||
| Net loss | $ | (20,239 | ) | $ | (60,989 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization expense | 5,248 | 8,636 | |||||
| Stock-based compensation expense | (451 | ) | 48 | ||||
| Change in fair value of warrants and contingent liabilities | 6,101 | 3,453 | |||||
| Deferred tax benefit | (82 | ) | (147 | ) | |||
| Provision for excess and obsolete inventory | 40 | — | |||||
| Change in third party payor reserves | (193 | ) | (1,070 | ) | |||
| Gain on debt forgiveness | — | (2,750 | ) | ||||
| Impairment loss | — | 2,120 | |||||
| Other | 846 | 274 | |||||
| Change in operating assets and liabilities: | |||||||
| Accounts receivable | 4,220 | 9,723 | |||||
| Inventory | (2,877 | ) | 1,331 | ||||
| Accounts payable and accrued expenses | (4,733 | ) | (13,400 | ) | |||
| Other assets and liabilities | (4,293 | ) | (2,789 | ) | |||
| Net cash used in operating activities | (16,413 | ) | (55,560 | ) | |||
| Investing activities | |||||||
| Purchases of property and equipment | (443 | ) | — | ||||
| Purchases of marketable securities | (5,167 | ) | — | ||||
| Proceeds from sales of marketable securities | 598 | — | |||||
| Proceeds from maturities of marketable securities | 5,855 | — | |||||
| Development of internal-use software assets | — | (462 | ) | ||||
| Net cash provided by (used in) investing activities | 843 | (462 | ) | ||||
| Financing activities | |||||||
| Proceeds from offerings, net of issuance costs | — | 135,439 | |||||
| Exercise of stock options | 24 | 266 | |||||
| Long-term debt principal payments | — | (2,000 | ) | ||||
| Finance lease payoff and principal payments | (462 | ) | (1,047 | ) | |||
| Net cash (used in) provided by financing activities | (438 | ) | 132,658 | ||||
| Net (decrease) increase in cash, cash equivalents and restricted cash | (16,008 | ) | 76,636 | ||||
| Cash, cash equivalents and restricted cash, at beginning of period | 100,668 | 138,303 | |||||
| Cash, cash equivalents and restricted cash, at end of period (1) | $ | 84,660 | $ | 214,939 | |||
| Supplemental disclosures of cash flow information | |||||||
| Cash paid for interest | $ | 2,019 | $ | 583 | |||
| Cash paid for taxes | $ | 300 | $ | 104 | |||
| Purchases of property and equipment in accounts payable and accrued expenses | $ | 36 | $ | 1,073 | |||
| Software development costs in accounts payable and accrued expenses | $ | — | $ | 157 | |||
| (1) | Cash, cash equivalents and restricted cash at March 31, 2024 excludes marketable securities of $29.2 million. |
| Last Trade: | US$77.40 |
| Daily Change: | 2.10 2.79 |
| Daily Volume: | 659,630 |
| Market Cap: | US$2.130B |
December 16, 2024 December 05, 2024 November 19, 2024 November 04, 2024 | |
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