Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries GeneDx Reports Second Quarter 2024 Financial Results and Business Highlights By: GeneDx via Business Wire July 30, 2024 at 16:05 PM EDT Reported second quarter 2024 revenue from continuing operations1 of $68.9M with 77% year-over-year growth of exome and genome test revenue Expanded second quarter 2024 adjusted gross margins2 from continuing operations to 62% Narrowed second quarter 2024 adjusted net loss2 to $2.7M Raising guidance to deliver between $255M and $265M in FY 2024 revenue and reiterate path to profitability in 2025 GeneDx to host conference call today at 4:30 p.m. ET GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the second quarter of 2024. “Our continued organizational focus on execution fueled our strong second quarter results, giving us confidence to raise full year 2024 revenue guidance to between $255-$265 million and reiterate our expectation to reach profitability in the next several quarters,” said Katherine Stueland, President and Chief Executive Officer at GeneDx. “The strength in our performance across all measures of the business has enabled us to begin investments in future growth opportunities for our business with a focus on extending our leadership in whole exome sequencing to whole genome sequencing to ensure we continue to lead the charge in quickly providing the most accurate and actionable genetic information to diagnose disease for as many patients and families as possible.” Second Quarter 2024 Financial Results (Unaudited)1,2 Revenues Revenues from continuing operations grew to $68.9 million, an increase of 52% year-over-year and 12% sequentially. Total company revenues were $70.5 million. Exome and genome test revenue grew to $50.7 million, an increase of 77% year-over-year and 15% sequentially. Exome and genome volume Exome and genome test results volume grew to 18,017, an increase of 52% year-over-year and 9% sequentially. Exome and genome represented 31% of all test results, up from 22% in the second quarter of 2023 and up from 30% in the first quarter of 2024. Gross margin Adjusted gross margin from continuing operations expanded to 62%, up from 37% in the second quarter of 2023 and up from 61% in the first quarter of 2024. Total company gross margin was 61%. Operating expenses Adjusted total operating expenses reduced to $45.0 million, a decrease of 24% year-over-year and 1% sequentially. Total GAAP operating expenses were $52.7 million. Net loss Adjusted net loss narrowed to $2.7 million, an improvement of 93% year-over-year and 68% sequentially. GAAP net loss was $29.2 million, inclusive of a one-time, net litigation charge of $13 million. Cash burn and cash position Total net use of cash was $6.1 million in the second quarter of 2024, an improvement of 89% year-over-year and 65% sequentially. Cash, cash equivalents, marketable securities and restricted cash was $107.8 million as of June 30, 2024. 1. Revenue and gross margin results from continuing operations, which we believe are representative of our ongoing business strategy exclude any revenue and cost of goods sold of the exited Legacy Sema4 diagnostic testing business for the current and all comparative periods. Total company results include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities for the current and all comparative periods. 2. Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented. GeneDx Full Year 2024 Guidance GeneDx has updated full year 2024 guidance. Management expects GeneDx to: Drive full year 2024 revenues1 between $255 and $265 million (previous guidance was between $235 and $245 million); Expand full year 2024 adjusted gross margin profile to at least 60% (no change); Use between $65 to $70 million of net cash for full year 2024 (previous guidance was between $70 to $80 million); Turn to profitability in 2025 (no change). 1. Total company results include the combination of the GeneDx diagnostic business revenues and the data and information revenues from the Legacy Sema4 business. Second Quarter 2024 Business Highlights Driving sustainable growth, expanding access and improving the standard of care Announced collaboration with Epic Aura1 to expand access to rapid whole genome sequencing (“rWGS”) services to inform diagnosis for affected pediatric and neonatal patients, enhancing GeneDx’s commercial footprint within leading health systems. Launched first-of-its-kind Patient Access Program in collaboration with leading biopharma partners to expand access to exome testing for pediatric epilepsy patients. Grew biopharma partner programs to 32, predominantly with biotech companies who are relying on us to find patients with a specific variant for clinical trial purposes. North Carolina Medicaid has expanded its existing coverage of outpatient whole exome sequencing (“WES”) to include the analysis of family comparator samples, which increases the rate of diagnosis of WES, effective June 1, 2024. State Medicaid programs continue to expand coverage of rapid genome sequencing in the neonatal intensive care unit (“NICU”), bringing total states covering rapid whole genome in the acute care setting to 14, including new coverage announced in: North Carolina (June 2024) Tennessee (July 2024) Connecticut (July 2024) Announced reinvestment in rapid and standard whole genome sequencing products, enabling: Faster turnaround time for rWGS with a written report in as fast as 5 days Buccal samples (cheek swab) allowing for easier and more accessible non-invasive sample collection method for even the youngest patients Expanding the number of repeat expansions covered by whole genome sequencing to increase diagnostic yield and improve the provider and patient experience by decreasing the need for follow-up testing 1. Epic and Aura are trademarks of Epic Systems Corporation. Webcast and Conference Call Details GeneDx will host a conference call today, July 30, 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 (v) 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. 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 2Q24 1Q24 4Q23 3Q23 2Q23 Volumes Whole exome, whole genome 18,017 16,592 15,663 13,216 11,855 Hereditary cancer 5,482 6,868 8,240 8,556 7,142 Other panels 34,204 31,763 33,692 35,861 35,931 Total 57,703 55,223 57,595 57,633 54,928 Revenue ($ millions) Whole exome, whole genome $ 50.7 $ 44.0 $ 39.2 $ 34.0 $ 28.7 Hereditary cancer 3.8 5.5 5.5 4.5 3.8 Other panels 13.3 10.7 11.2 10.6 10.6 Data information 1.1 1.3 2.2 1.3 2.1 Total $ 68.9 $ 61.5 $ 58.1 $ 50.4 $ 45.2 Unaudited Select Financial Information (in thousands) Three months ended June 30, 2024 Three months ended March 31, 2024 GeneDx Legacy Sema4 Total GeneDx Legacy Sema4 Total Revenue $68,924 $1,590 $70,514 $61,461 $961 $62,422 Adjusted cost of services 26,523 145 26,668 24,099 — 24,099 Adjusted gross profit (loss) $42,401 $1,445 $43,846 $37,362 $961 $38,323 Adjusted gross margin % 61.5% 90.9% 62.2% 60.8% 100.0% 61.4% Three months ended June 30, 2023 GeneDx Legacy Sema4 Total Revenue $45,226 $3,480 $48,706 Adjusted cost of services 28,452 — 28,452 Adjusted gross profit (loss) $16,774 $3,480 $20,254 Adjusted gross margin % 37.1% 100.0% 41.6% Three months ended June 30, 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 $ 69,439 $ — $ — $ — $ — $ — $ — $ 69,439 Other revenue 1,075 — — — — — — 1,075 Total revenue 70,514 — — — — — — 70,514 Cost of services 27,562 (808 ) (86 ) — — — — 26,668 Gross profit (loss) 42,952 808 86 — — — — 43,846 Gross margin 60.9 % 62.2 % Research and development 10,902 (211 ) (347 ) (35 ) — — — 10,309 Selling and marketing 16,585 (1,225 ) (368 ) (63 ) — — — 14,929 General and administrative 25,170 (2,974 ) (2,307 ) (150 ) — — — 19,739 Impairment loss — — — — — — — — Other, net 874 — — — — — — 874 Loss from operations (10,579 ) 5,218 3,108 248 — — — (2,005 ) Interest income (expense), net (894 ) — — — — — — (894 ) Other income (expense), net (17,890 ) — — — 4,409 — 13,450 (31 ) Income tax benefit 190 — — — — — — 190 Net loss $ (29,173 ) $ 5,218 $ 3,108 $ 248 $ 4,409 $ — $ 13,450 $ (2,740 ) Three months ended June 30, 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 $ 46,635 $ — $ — $ — $ — $ — $ — $ 46,635 Other revenue 2,071 — — — — — — 2,071 Total revenue 48,706 — — — — — — 48,706 Cost of services 29,949 (1,233 ) (251 ) (13 ) — — — 28,452 Gross profit (loss) 18,757 1,233 251 13 — — — 20,254 Gross margin 38.5 % 41.6 % Research and development 17,138 (4,656 ) 675 (815 ) — — — 12,342 Selling and marketing 15,182 (1,225 ) 143 (326 ) — — — 13,774 General and administrative 37,341 (3,218 ) (675 ) (483 ) — — — 32,965 Impairment loss — — — — — — — — Other, net 718 — — — — 334 3,238 4,290 Loss from operations (51,622 ) 10,332 108 1,637 — (334 ) (3,238 ) (43,117 ) Interest income (expense), net 1,074 — — — — — — 1,074 Other income (expense), net 3,633 — — — (3,547 ) — (86 ) — Income tax benefit 196 — — — — — — 196 Net loss $ (46,719 ) $ 10,332 $ 108 $ 1,637 $ (3,547 ) $ (334 ) $ (3,324 ) $ (41,847 ) 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 ) GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 56,076 $ 99,681 Marketable securities 50,784 30,467 Accounts receivable 25,500 32,371 Due from related parties 693 445 Inventory, net 10,322 8,777 Prepaid expenses and other current assets 18,792 10,598 Total current assets 162,167 182,339 Operating lease right-of-use assets 25,624 26,900 Property and equipment, net 31,339 32,479 Intangible assets, net 165,613 172,625 Other assets (1) 4,357 4,413 Total assets $ 389,100 $ 418,756 Liabilities and Stockholders’ Equity: Current liabilities: Accounts payable and accrued expenses $ 51,959 $ 37,456 Due to related parties 1,213 1,379 Short-term lease liabilities 4,001 3,647 Other current liabilities 11,097 16,336 Total current liabilities 68,270 58,818 Long-term debt, net of current portion 52,160 52,688 Long-term lease liabilities 60,800 62,938 Other liabilities 12,660 14,735 Deferred taxes 1,167 1,560 Total liabilities 195,057 190,739 Stockholders’ Equity: Preferred stock — — Class A common stock 2 2 Additional paid-in capital 1,543,182 1,527,778 Accumulated deficit (1,349,600 ) (1,300,188 ) Accumulated other comprehensive income 459 425 Total stockholders’ equity 194,043 228,017 Total liabilities and stockholders’ equity $ 389,100 $ 418,756 (1) Other assets includes $987 thousand of restricted cash as of both June 30, 2024 and December 31, 2023. GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) June 30, Six months ended June 30, 2024 2023 2024 2023 Revenue Diagnostic test revenue $ 69,439 $ 46,635 $ 130,543 $ 88,485 Other revenue 1,075 2,071 2,393 3,360 Total revenue 70,514 48,706 132,936 91,845 Cost of services 27,562 29,949 52,573 57,852 Gross profit 42,952 18,757 80,363 33,993 Research and development 10,902 17,138 22,469 31,730 Selling and marketing 16,585 15,182 32,670 28,634 General and administrative 25,170 37,341 47,615 81,030 Impairment loss — — — 2,120 Other operating expenses, net 874 718 1,848 2,465 Loss from operations (10,579 ) (51,622 ) (24,239 ) (111,986 ) Non-operating income (expenses), net Change in fair value of warrants and earn-out contingent liabilities (4,409 ) 3,547 (10,510 ) 94 Interest expense, net (894 ) 1,074 (1,491 ) 1,039 Other expense, net (13,481 ) 86 (13,444 ) 2,802 Total non-operating income, net (18,784 ) 4,707 (25,445 ) 3,935 Loss before income taxes (29,363 ) (46,915 ) $ (49,684 ) $ (108,051 ) Income tax benefit 190 196 272 343 Net loss $ (29,173 ) $ (46,719 ) $ (49,412 ) $ (107,708 ) Weighted average shares outstanding of Class A common stock 26,617,955 25,418,358 26,340,063 22,754,948 Basic and diluted net loss per share, Class A common stock $ (1.10 ) $ (1.84 ) $ (1.88 ) $ (4.73 ) GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six months ended June 30, 2024 2023 Operating activities Net loss $ (49,412 ) $ (107,708 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 10,466 18,968 Stock-based compensation expense 2,657 156 Change in fair value of warrants and contingent liabilities 10,510 (94 ) Deferred tax benefit (272 ) (343 ) Provision for excess and obsolete inventory 109 2,620 Legal reserves 13,450 — Change in third party payor reserves 1,066 (4,308 ) Gain on sale of assets — (2,954 ) Gain on debt forgiveness — (2,750 ) Impairment loss — 2,120 Other 1,738 412 Change in operating assets and liabilities: Accounts receivable 6,871 10,174 Inventory (1,654 ) (486 ) Accounts payable and accrued expenses (10,359 ) (25,399 ) Other assets and liabilities (6,088 ) 531 Net cash used in operating activities (20,918 ) (109,061 ) Investing activities Consideration on escrow paid for GeneDx acquisition — (12,144 ) Purchases of property and equipment (1,795 ) (2,762 ) Proceeds from sales of assets — 3,634 Purchases of marketable securities (29,381 ) — Proceeds from sales of marketable securities 598 — Proceeds from maturities of marketable securities 8,720 — Development of internal-use software assets — (461 ) Net cash used in investing activities (21,858 ) (11,733 ) Financing activities Proceeds from offerings, net of issuance costs — 143,002 Exercise of stock options 161 266 Long-term debt principal payments — (2,000 ) Finance lease payoff and principal payments (990 ) (1,222 ) Net cash (used in) provided by financing activities (829 ) 140,046 Net (decrease) increase in cash, cash equivalents and restricted cash (43,605 ) 19,252 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) $ 57,063 $ 157,555 Supplemental disclosures of cash flow information Cash paid for interest $ 4,033 $ 946 Cash paid for taxes $ 557 $ 1,003 Stock consideration paid for purchase of business $ — $ 6,692 Stock consideration paid pursuant to exercise of Perceptive warrant $ 12,586 $ — Purchases of property and equipment in accounts payable and accrued expenses $ 501 $ 109 Assets acquired under capital leases obligations $ 689 $ — (1) Cash, cash equivalents and restricted cash at June 30, 2024 excludes marketable securities of $50.8 million. View source version on businesswire.com: https://www.businesswire.com/news/home/20240730096917/en/Contacts Investor Relations Contact: Investors@GeneDx.com Media Contact: Press@GeneDx.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
GeneDx Reports Second Quarter 2024 Financial Results and Business Highlights By: GeneDx via Business Wire July 30, 2024 at 16:05 PM EDT Reported second quarter 2024 revenue from continuing operations1 of $68.9M with 77% year-over-year growth of exome and genome test revenue Expanded second quarter 2024 adjusted gross margins2 from continuing operations to 62% Narrowed second quarter 2024 adjusted net loss2 to $2.7M Raising guidance to deliver between $255M and $265M in FY 2024 revenue and reiterate path to profitability in 2025 GeneDx to host conference call today at 4:30 p.m. ET GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the second quarter of 2024. “Our continued organizational focus on execution fueled our strong second quarter results, giving us confidence to raise full year 2024 revenue guidance to between $255-$265 million and reiterate our expectation to reach profitability in the next several quarters,” said Katherine Stueland, President and Chief Executive Officer at GeneDx. “The strength in our performance across all measures of the business has enabled us to begin investments in future growth opportunities for our business with a focus on extending our leadership in whole exome sequencing to whole genome sequencing to ensure we continue to lead the charge in quickly providing the most accurate and actionable genetic information to diagnose disease for as many patients and families as possible.” Second Quarter 2024 Financial Results (Unaudited)1,2 Revenues Revenues from continuing operations grew to $68.9 million, an increase of 52% year-over-year and 12% sequentially. Total company revenues were $70.5 million. Exome and genome test revenue grew to $50.7 million, an increase of 77% year-over-year and 15% sequentially. Exome and genome volume Exome and genome test results volume grew to 18,017, an increase of 52% year-over-year and 9% sequentially. Exome and genome represented 31% of all test results, up from 22% in the second quarter of 2023 and up from 30% in the first quarter of 2024. Gross margin Adjusted gross margin from continuing operations expanded to 62%, up from 37% in the second quarter of 2023 and up from 61% in the first quarter of 2024. Total company gross margin was 61%. Operating expenses Adjusted total operating expenses reduced to $45.0 million, a decrease of 24% year-over-year and 1% sequentially. Total GAAP operating expenses were $52.7 million. Net loss Adjusted net loss narrowed to $2.7 million, an improvement of 93% year-over-year and 68% sequentially. GAAP net loss was $29.2 million, inclusive of a one-time, net litigation charge of $13 million. Cash burn and cash position Total net use of cash was $6.1 million in the second quarter of 2024, an improvement of 89% year-over-year and 65% sequentially. Cash, cash equivalents, marketable securities and restricted cash was $107.8 million as of June 30, 2024. 1. Revenue and gross margin results from continuing operations, which we believe are representative of our ongoing business strategy exclude any revenue and cost of goods sold of the exited Legacy Sema4 diagnostic testing business for the current and all comparative periods. Total company results include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities for the current and all comparative periods. 2. Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented. GeneDx Full Year 2024 Guidance GeneDx has updated full year 2024 guidance. Management expects GeneDx to: Drive full year 2024 revenues1 between $255 and $265 million (previous guidance was between $235 and $245 million); Expand full year 2024 adjusted gross margin profile to at least 60% (no change); Use between $65 to $70 million of net cash for full year 2024 (previous guidance was between $70 to $80 million); Turn to profitability in 2025 (no change). 1. Total company results include the combination of the GeneDx diagnostic business revenues and the data and information revenues from the Legacy Sema4 business. Second Quarter 2024 Business Highlights Driving sustainable growth, expanding access and improving the standard of care Announced collaboration with Epic Aura1 to expand access to rapid whole genome sequencing (“rWGS”) services to inform diagnosis for affected pediatric and neonatal patients, enhancing GeneDx’s commercial footprint within leading health systems. Launched first-of-its-kind Patient Access Program in collaboration with leading biopharma partners to expand access to exome testing for pediatric epilepsy patients. Grew biopharma partner programs to 32, predominantly with biotech companies who are relying on us to find patients with a specific variant for clinical trial purposes. North Carolina Medicaid has expanded its existing coverage of outpatient whole exome sequencing (“WES”) to include the analysis of family comparator samples, which increases the rate of diagnosis of WES, effective June 1, 2024. State Medicaid programs continue to expand coverage of rapid genome sequencing in the neonatal intensive care unit (“NICU”), bringing total states covering rapid whole genome in the acute care setting to 14, including new coverage announced in: North Carolina (June 2024) Tennessee (July 2024) Connecticut (July 2024) Announced reinvestment in rapid and standard whole genome sequencing products, enabling: Faster turnaround time for rWGS with a written report in as fast as 5 days Buccal samples (cheek swab) allowing for easier and more accessible non-invasive sample collection method for even the youngest patients Expanding the number of repeat expansions covered by whole genome sequencing to increase diagnostic yield and improve the provider and patient experience by decreasing the need for follow-up testing 1. Epic and Aura are trademarks of Epic Systems Corporation. Webcast and Conference Call Details GeneDx will host a conference call today, July 30, 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 (v) 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. 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 2Q24 1Q24 4Q23 3Q23 2Q23 Volumes Whole exome, whole genome 18,017 16,592 15,663 13,216 11,855 Hereditary cancer 5,482 6,868 8,240 8,556 7,142 Other panels 34,204 31,763 33,692 35,861 35,931 Total 57,703 55,223 57,595 57,633 54,928 Revenue ($ millions) Whole exome, whole genome $ 50.7 $ 44.0 $ 39.2 $ 34.0 $ 28.7 Hereditary cancer 3.8 5.5 5.5 4.5 3.8 Other panels 13.3 10.7 11.2 10.6 10.6 Data information 1.1 1.3 2.2 1.3 2.1 Total $ 68.9 $ 61.5 $ 58.1 $ 50.4 $ 45.2 Unaudited Select Financial Information (in thousands) Three months ended June 30, 2024 Three months ended March 31, 2024 GeneDx Legacy Sema4 Total GeneDx Legacy Sema4 Total Revenue $68,924 $1,590 $70,514 $61,461 $961 $62,422 Adjusted cost of services 26,523 145 26,668 24,099 — 24,099 Adjusted gross profit (loss) $42,401 $1,445 $43,846 $37,362 $961 $38,323 Adjusted gross margin % 61.5% 90.9% 62.2% 60.8% 100.0% 61.4% Three months ended June 30, 2023 GeneDx Legacy Sema4 Total Revenue $45,226 $3,480 $48,706 Adjusted cost of services 28,452 — 28,452 Adjusted gross profit (loss) $16,774 $3,480 $20,254 Adjusted gross margin % 37.1% 100.0% 41.6% Three months ended June 30, 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 $ 69,439 $ — $ — $ — $ — $ — $ — $ 69,439 Other revenue 1,075 — — — — — — 1,075 Total revenue 70,514 — — — — — — 70,514 Cost of services 27,562 (808 ) (86 ) — — — — 26,668 Gross profit (loss) 42,952 808 86 — — — — 43,846 Gross margin 60.9 % 62.2 % Research and development 10,902 (211 ) (347 ) (35 ) — — — 10,309 Selling and marketing 16,585 (1,225 ) (368 ) (63 ) — — — 14,929 General and administrative 25,170 (2,974 ) (2,307 ) (150 ) — — — 19,739 Impairment loss — — — — — — — — Other, net 874 — — — — — — 874 Loss from operations (10,579 ) 5,218 3,108 248 — — — (2,005 ) Interest income (expense), net (894 ) — — — — — — (894 ) Other income (expense), net (17,890 ) — — — 4,409 — 13,450 (31 ) Income tax benefit 190 — — — — — — 190 Net loss $ (29,173 ) $ 5,218 $ 3,108 $ 248 $ 4,409 $ — $ 13,450 $ (2,740 ) Three months ended June 30, 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 $ 46,635 $ — $ — $ — $ — $ — $ — $ 46,635 Other revenue 2,071 — — — — — — 2,071 Total revenue 48,706 — — — — — — 48,706 Cost of services 29,949 (1,233 ) (251 ) (13 ) — — — 28,452 Gross profit (loss) 18,757 1,233 251 13 — — — 20,254 Gross margin 38.5 % 41.6 % Research and development 17,138 (4,656 ) 675 (815 ) — — — 12,342 Selling and marketing 15,182 (1,225 ) 143 (326 ) — — — 13,774 General and administrative 37,341 (3,218 ) (675 ) (483 ) — — — 32,965 Impairment loss — — — — — — — — Other, net 718 — — — — 334 3,238 4,290 Loss from operations (51,622 ) 10,332 108 1,637 — (334 ) (3,238 ) (43,117 ) Interest income (expense), net 1,074 — — — — — — 1,074 Other income (expense), net 3,633 — — — (3,547 ) — (86 ) — Income tax benefit 196 — — — — — — 196 Net loss $ (46,719 ) $ 10,332 $ 108 $ 1,637 $ (3,547 ) $ (334 ) $ (3,324 ) $ (41,847 ) 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 ) GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 56,076 $ 99,681 Marketable securities 50,784 30,467 Accounts receivable 25,500 32,371 Due from related parties 693 445 Inventory, net 10,322 8,777 Prepaid expenses and other current assets 18,792 10,598 Total current assets 162,167 182,339 Operating lease right-of-use assets 25,624 26,900 Property and equipment, net 31,339 32,479 Intangible assets, net 165,613 172,625 Other assets (1) 4,357 4,413 Total assets $ 389,100 $ 418,756 Liabilities and Stockholders’ Equity: Current liabilities: Accounts payable and accrued expenses $ 51,959 $ 37,456 Due to related parties 1,213 1,379 Short-term lease liabilities 4,001 3,647 Other current liabilities 11,097 16,336 Total current liabilities 68,270 58,818 Long-term debt, net of current portion 52,160 52,688 Long-term lease liabilities 60,800 62,938 Other liabilities 12,660 14,735 Deferred taxes 1,167 1,560 Total liabilities 195,057 190,739 Stockholders’ Equity: Preferred stock — — Class A common stock 2 2 Additional paid-in capital 1,543,182 1,527,778 Accumulated deficit (1,349,600 ) (1,300,188 ) Accumulated other comprehensive income 459 425 Total stockholders’ equity 194,043 228,017 Total liabilities and stockholders’ equity $ 389,100 $ 418,756 (1) Other assets includes $987 thousand of restricted cash as of both June 30, 2024 and December 31, 2023. GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) June 30, Six months ended June 30, 2024 2023 2024 2023 Revenue Diagnostic test revenue $ 69,439 $ 46,635 $ 130,543 $ 88,485 Other revenue 1,075 2,071 2,393 3,360 Total revenue 70,514 48,706 132,936 91,845 Cost of services 27,562 29,949 52,573 57,852 Gross profit 42,952 18,757 80,363 33,993 Research and development 10,902 17,138 22,469 31,730 Selling and marketing 16,585 15,182 32,670 28,634 General and administrative 25,170 37,341 47,615 81,030 Impairment loss — — — 2,120 Other operating expenses, net 874 718 1,848 2,465 Loss from operations (10,579 ) (51,622 ) (24,239 ) (111,986 ) Non-operating income (expenses), net Change in fair value of warrants and earn-out contingent liabilities (4,409 ) 3,547 (10,510 ) 94 Interest expense, net (894 ) 1,074 (1,491 ) 1,039 Other expense, net (13,481 ) 86 (13,444 ) 2,802 Total non-operating income, net (18,784 ) 4,707 (25,445 ) 3,935 Loss before income taxes (29,363 ) (46,915 ) $ (49,684 ) $ (108,051 ) Income tax benefit 190 196 272 343 Net loss $ (29,173 ) $ (46,719 ) $ (49,412 ) $ (107,708 ) Weighted average shares outstanding of Class A common stock 26,617,955 25,418,358 26,340,063 22,754,948 Basic and diluted net loss per share, Class A common stock $ (1.10 ) $ (1.84 ) $ (1.88 ) $ (4.73 ) GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six months ended June 30, 2024 2023 Operating activities Net loss $ (49,412 ) $ (107,708 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 10,466 18,968 Stock-based compensation expense 2,657 156 Change in fair value of warrants and contingent liabilities 10,510 (94 ) Deferred tax benefit (272 ) (343 ) Provision for excess and obsolete inventory 109 2,620 Legal reserves 13,450 — Change in third party payor reserves 1,066 (4,308 ) Gain on sale of assets — (2,954 ) Gain on debt forgiveness — (2,750 ) Impairment loss — 2,120 Other 1,738 412 Change in operating assets and liabilities: Accounts receivable 6,871 10,174 Inventory (1,654 ) (486 ) Accounts payable and accrued expenses (10,359 ) (25,399 ) Other assets and liabilities (6,088 ) 531 Net cash used in operating activities (20,918 ) (109,061 ) Investing activities Consideration on escrow paid for GeneDx acquisition — (12,144 ) Purchases of property and equipment (1,795 ) (2,762 ) Proceeds from sales of assets — 3,634 Purchases of marketable securities (29,381 ) — Proceeds from sales of marketable securities 598 — Proceeds from maturities of marketable securities 8,720 — Development of internal-use software assets — (461 ) Net cash used in investing activities (21,858 ) (11,733 ) Financing activities Proceeds from offerings, net of issuance costs — 143,002 Exercise of stock options 161 266 Long-term debt principal payments — (2,000 ) Finance lease payoff and principal payments (990 ) (1,222 ) Net cash (used in) provided by financing activities (829 ) 140,046 Net (decrease) increase in cash, cash equivalents and restricted cash (43,605 ) 19,252 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) $ 57,063 $ 157,555 Supplemental disclosures of cash flow information Cash paid for interest $ 4,033 $ 946 Cash paid for taxes $ 557 $ 1,003 Stock consideration paid for purchase of business $ — $ 6,692 Stock consideration paid pursuant to exercise of Perceptive warrant $ 12,586 $ — Purchases of property and equipment in accounts payable and accrued expenses $ 501 $ 109 Assets acquired under capital leases obligations $ 689 $ — (1) Cash, cash equivalents and restricted cash at June 30, 2024 excludes marketable securities of $50.8 million. View source version on businesswire.com: https://www.businesswire.com/news/home/20240730096917/en/Contacts Investor Relations Contact: Investors@GeneDx.com Media Contact: Press@GeneDx.com
Reported second quarter 2024 revenue from continuing operations1 of $68.9M with 77% year-over-year growth of exome and genome test revenue Expanded second quarter 2024 adjusted gross margins2 from continuing operations to 62% Narrowed second quarter 2024 adjusted net loss2 to $2.7M Raising guidance to deliver between $255M and $265M in FY 2024 revenue and reiterate path to profitability in 2025 GeneDx to host conference call today at 4:30 p.m. ET
GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering improved health outcomes through genomic insights, today reported its financial results for the second quarter of 2024. “Our continued organizational focus on execution fueled our strong second quarter results, giving us confidence to raise full year 2024 revenue guidance to between $255-$265 million and reiterate our expectation to reach profitability in the next several quarters,” said Katherine Stueland, President and Chief Executive Officer at GeneDx. “The strength in our performance across all measures of the business has enabled us to begin investments in future growth opportunities for our business with a focus on extending our leadership in whole exome sequencing to whole genome sequencing to ensure we continue to lead the charge in quickly providing the most accurate and actionable genetic information to diagnose disease for as many patients and families as possible.” Second Quarter 2024 Financial Results (Unaudited)1,2 Revenues Revenues from continuing operations grew to $68.9 million, an increase of 52% year-over-year and 12% sequentially. Total company revenues were $70.5 million. Exome and genome test revenue grew to $50.7 million, an increase of 77% year-over-year and 15% sequentially. Exome and genome volume Exome and genome test results volume grew to 18,017, an increase of 52% year-over-year and 9% sequentially. Exome and genome represented 31% of all test results, up from 22% in the second quarter of 2023 and up from 30% in the first quarter of 2024. Gross margin Adjusted gross margin from continuing operations expanded to 62%, up from 37% in the second quarter of 2023 and up from 61% in the first quarter of 2024. Total company gross margin was 61%. Operating expenses Adjusted total operating expenses reduced to $45.0 million, a decrease of 24% year-over-year and 1% sequentially. Total GAAP operating expenses were $52.7 million. Net loss Adjusted net loss narrowed to $2.7 million, an improvement of 93% year-over-year and 68% sequentially. GAAP net loss was $29.2 million, inclusive of a one-time, net litigation charge of $13 million. Cash burn and cash position Total net use of cash was $6.1 million in the second quarter of 2024, an improvement of 89% year-over-year and 65% sequentially. Cash, cash equivalents, marketable securities and restricted cash was $107.8 million as of June 30, 2024. 1. Revenue and gross margin results from continuing operations, which we believe are representative of our ongoing business strategy exclude any revenue and cost of goods sold of the exited Legacy Sema4 diagnostic testing business for the current and all comparative periods. Total company results include GeneDx’s continuing operations and the financial impacts of exited Legacy Sema4 business activities for the current and all comparative periods. 2. Adjusted gross margin, adjusted total operating expenses and adjusted net loss are non-GAAP financial measures. See appendix for a reconciliation of GAAP to Non-GAAP figures presented. GeneDx Full Year 2024 Guidance GeneDx has updated full year 2024 guidance. Management expects GeneDx to: Drive full year 2024 revenues1 between $255 and $265 million (previous guidance was between $235 and $245 million); Expand full year 2024 adjusted gross margin profile to at least 60% (no change); Use between $65 to $70 million of net cash for full year 2024 (previous guidance was between $70 to $80 million); Turn to profitability in 2025 (no change). 1. Total company results include the combination of the GeneDx diagnostic business revenues and the data and information revenues from the Legacy Sema4 business. Second Quarter 2024 Business Highlights Driving sustainable growth, expanding access and improving the standard of care Announced collaboration with Epic Aura1 to expand access to rapid whole genome sequencing (“rWGS”) services to inform diagnosis for affected pediatric and neonatal patients, enhancing GeneDx’s commercial footprint within leading health systems. Launched first-of-its-kind Patient Access Program in collaboration with leading biopharma partners to expand access to exome testing for pediatric epilepsy patients. Grew biopharma partner programs to 32, predominantly with biotech companies who are relying on us to find patients with a specific variant for clinical trial purposes. North Carolina Medicaid has expanded its existing coverage of outpatient whole exome sequencing (“WES”) to include the analysis of family comparator samples, which increases the rate of diagnosis of WES, effective June 1, 2024. State Medicaid programs continue to expand coverage of rapid genome sequencing in the neonatal intensive care unit (“NICU”), bringing total states covering rapid whole genome in the acute care setting to 14, including new coverage announced in: North Carolina (June 2024) Tennessee (July 2024) Connecticut (July 2024) Announced reinvestment in rapid and standard whole genome sequencing products, enabling: Faster turnaround time for rWGS with a written report in as fast as 5 days Buccal samples (cheek swab) allowing for easier and more accessible non-invasive sample collection method for even the youngest patients Expanding the number of repeat expansions covered by whole genome sequencing to increase diagnostic yield and improve the provider and patient experience by decreasing the need for follow-up testing 1. Epic and Aura are trademarks of Epic Systems Corporation. Webcast and Conference Call Details GeneDx will host a conference call today, July 30, 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 (v) 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. 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 2Q24 1Q24 4Q23 3Q23 2Q23 Volumes Whole exome, whole genome 18,017 16,592 15,663 13,216 11,855 Hereditary cancer 5,482 6,868 8,240 8,556 7,142 Other panels 34,204 31,763 33,692 35,861 35,931 Total 57,703 55,223 57,595 57,633 54,928 Revenue ($ millions) Whole exome, whole genome $ 50.7 $ 44.0 $ 39.2 $ 34.0 $ 28.7 Hereditary cancer 3.8 5.5 5.5 4.5 3.8 Other panels 13.3 10.7 11.2 10.6 10.6 Data information 1.1 1.3 2.2 1.3 2.1 Total $ 68.9 $ 61.5 $ 58.1 $ 50.4 $ 45.2 Unaudited Select Financial Information (in thousands) Three months ended June 30, 2024 Three months ended March 31, 2024 GeneDx Legacy Sema4 Total GeneDx Legacy Sema4 Total Revenue $68,924 $1,590 $70,514 $61,461 $961 $62,422 Adjusted cost of services 26,523 145 26,668 24,099 — 24,099 Adjusted gross profit (loss) $42,401 $1,445 $43,846 $37,362 $961 $38,323 Adjusted gross margin % 61.5% 90.9% 62.2% 60.8% 100.0% 61.4% Three months ended June 30, 2023 GeneDx Legacy Sema4 Total Revenue $45,226 $3,480 $48,706 Adjusted cost of services 28,452 — 28,452 Adjusted gross profit (loss) $16,774 $3,480 $20,254 Adjusted gross margin % 37.1% 100.0% 41.6% Three months ended June 30, 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 $ 69,439 $ — $ — $ — $ — $ — $ — $ 69,439 Other revenue 1,075 — — — — — — 1,075 Total revenue 70,514 — — — — — — 70,514 Cost of services 27,562 (808 ) (86 ) — — — — 26,668 Gross profit (loss) 42,952 808 86 — — — — 43,846 Gross margin 60.9 % 62.2 % Research and development 10,902 (211 ) (347 ) (35 ) — — — 10,309 Selling and marketing 16,585 (1,225 ) (368 ) (63 ) — — — 14,929 General and administrative 25,170 (2,974 ) (2,307 ) (150 ) — — — 19,739 Impairment loss — — — — — — — — Other, net 874 — — — — — — 874 Loss from operations (10,579 ) 5,218 3,108 248 — — — (2,005 ) Interest income (expense), net (894 ) — — — — — — (894 ) Other income (expense), net (17,890 ) — — — 4,409 — 13,450 (31 ) Income tax benefit 190 — — — — — — 190 Net loss $ (29,173 ) $ 5,218 $ 3,108 $ 248 $ 4,409 $ — $ 13,450 $ (2,740 ) Three months ended June 30, 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 $ 46,635 $ — $ — $ — $ — $ — $ — $ 46,635 Other revenue 2,071 — — — — — — 2,071 Total revenue 48,706 — — — — — — 48,706 Cost of services 29,949 (1,233 ) (251 ) (13 ) — — — 28,452 Gross profit (loss) 18,757 1,233 251 13 — — — 20,254 Gross margin 38.5 % 41.6 % Research and development 17,138 (4,656 ) 675 (815 ) — — — 12,342 Selling and marketing 15,182 (1,225 ) 143 (326 ) — — — 13,774 General and administrative 37,341 (3,218 ) (675 ) (483 ) — — — 32,965 Impairment loss — — — — — — — — Other, net 718 — — — — 334 3,238 4,290 Loss from operations (51,622 ) 10,332 108 1,637 — (334 ) (3,238 ) (43,117 ) Interest income (expense), net 1,074 — — — — — — 1,074 Other income (expense), net 3,633 — — — (3,547 ) — (86 ) — Income tax benefit 196 — — — — — — 196 Net loss $ (46,719 ) $ 10,332 $ 108 $ 1,637 $ (3,547 ) $ (334 ) $ (3,324 ) $ (41,847 ) 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 ) GeneDx Holdings Corp. Condensed Consolidated Balance Sheets (in thousands, except share and per share amounts) June 30, 2024 (Unaudited) December 31, 2023 Assets: Current assets: Cash and cash equivalents $ 56,076 $ 99,681 Marketable securities 50,784 30,467 Accounts receivable 25,500 32,371 Due from related parties 693 445 Inventory, net 10,322 8,777 Prepaid expenses and other current assets 18,792 10,598 Total current assets 162,167 182,339 Operating lease right-of-use assets 25,624 26,900 Property and equipment, net 31,339 32,479 Intangible assets, net 165,613 172,625 Other assets (1) 4,357 4,413 Total assets $ 389,100 $ 418,756 Liabilities and Stockholders’ Equity: Current liabilities: Accounts payable and accrued expenses $ 51,959 $ 37,456 Due to related parties 1,213 1,379 Short-term lease liabilities 4,001 3,647 Other current liabilities 11,097 16,336 Total current liabilities 68,270 58,818 Long-term debt, net of current portion 52,160 52,688 Long-term lease liabilities 60,800 62,938 Other liabilities 12,660 14,735 Deferred taxes 1,167 1,560 Total liabilities 195,057 190,739 Stockholders’ Equity: Preferred stock — — Class A common stock 2 2 Additional paid-in capital 1,543,182 1,527,778 Accumulated deficit (1,349,600 ) (1,300,188 ) Accumulated other comprehensive income 459 425 Total stockholders’ equity 194,043 228,017 Total liabilities and stockholders’ equity $ 389,100 $ 418,756 (1) Other assets includes $987 thousand of restricted cash as of both June 30, 2024 and December 31, 2023. GeneDx Holdings Corp. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share amounts) June 30, Six months ended June 30, 2024 2023 2024 2023 Revenue Diagnostic test revenue $ 69,439 $ 46,635 $ 130,543 $ 88,485 Other revenue 1,075 2,071 2,393 3,360 Total revenue 70,514 48,706 132,936 91,845 Cost of services 27,562 29,949 52,573 57,852 Gross profit 42,952 18,757 80,363 33,993 Research and development 10,902 17,138 22,469 31,730 Selling and marketing 16,585 15,182 32,670 28,634 General and administrative 25,170 37,341 47,615 81,030 Impairment loss — — — 2,120 Other operating expenses, net 874 718 1,848 2,465 Loss from operations (10,579 ) (51,622 ) (24,239 ) (111,986 ) Non-operating income (expenses), net Change in fair value of warrants and earn-out contingent liabilities (4,409 ) 3,547 (10,510 ) 94 Interest expense, net (894 ) 1,074 (1,491 ) 1,039 Other expense, net (13,481 ) 86 (13,444 ) 2,802 Total non-operating income, net (18,784 ) 4,707 (25,445 ) 3,935 Loss before income taxes (29,363 ) (46,915 ) $ (49,684 ) $ (108,051 ) Income tax benefit 190 196 272 343 Net loss $ (29,173 ) $ (46,719 ) $ (49,412 ) $ (107,708 ) Weighted average shares outstanding of Class A common stock 26,617,955 25,418,358 26,340,063 22,754,948 Basic and diluted net loss per share, Class A common stock $ (1.10 ) $ (1.84 ) $ (1.88 ) $ (4.73 ) GeneDx Holdings Corp. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands) Six months ended June 30, 2024 2023 Operating activities Net loss $ (49,412 ) $ (107,708 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization expense 10,466 18,968 Stock-based compensation expense 2,657 156 Change in fair value of warrants and contingent liabilities 10,510 (94 ) Deferred tax benefit (272 ) (343 ) Provision for excess and obsolete inventory 109 2,620 Legal reserves 13,450 — Change in third party payor reserves 1,066 (4,308 ) Gain on sale of assets — (2,954 ) Gain on debt forgiveness — (2,750 ) Impairment loss — 2,120 Other 1,738 412 Change in operating assets and liabilities: Accounts receivable 6,871 10,174 Inventory (1,654 ) (486 ) Accounts payable and accrued expenses (10,359 ) (25,399 ) Other assets and liabilities (6,088 ) 531 Net cash used in operating activities (20,918 ) (109,061 ) Investing activities Consideration on escrow paid for GeneDx acquisition — (12,144 ) Purchases of property and equipment (1,795 ) (2,762 ) Proceeds from sales of assets — 3,634 Purchases of marketable securities (29,381 ) — Proceeds from sales of marketable securities 598 — Proceeds from maturities of marketable securities 8,720 — Development of internal-use software assets — (461 ) Net cash used in investing activities (21,858 ) (11,733 ) Financing activities Proceeds from offerings, net of issuance costs — 143,002 Exercise of stock options 161 266 Long-term debt principal payments — (2,000 ) Finance lease payoff and principal payments (990 ) (1,222 ) Net cash (used in) provided by financing activities (829 ) 140,046 Net (decrease) increase in cash, cash equivalents and restricted cash (43,605 ) 19,252 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) $ 57,063 $ 157,555 Supplemental disclosures of cash flow information Cash paid for interest $ 4,033 $ 946 Cash paid for taxes $ 557 $ 1,003 Stock consideration paid for purchase of business $ — $ 6,692 Stock consideration paid pursuant to exercise of Perceptive warrant $ 12,586 $ — Purchases of property and equipment in accounts payable and accrued expenses $ 501 $ 109 Assets acquired under capital leases obligations $ 689 $ — (1) Cash, cash equivalents and restricted cash at June 30, 2024 excludes marketable securities of $50.8 million. 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