
Neogenomics Delivers Strong 3Q23 With Profitable Growth; RaDaR MRD Test Currently Undergoing Three Coverage Evaluations from MolDx
11-7-23 (by: Scott Gleason) NeoGenomics has released its third-quarter results total revenue increasing 18% to $152 million for the quarter, well above consensus forecasts of $142 million. NeoGenomics’ Clinical Services revenue surged by 20% to reach $128 million and the Advanced Diagnostics division achieved an 8% increase in revenue, amounting to $24 million. Importantly, the company reported positive adjusted EBITDA, of $3 million versus ($12) million in the third quarter of 2022. This was driven by strong cost control with total operating expenses declining 2% year-over-year. Average revenue per test also increased 12% year-over-year to $440 helping drive profitability.
Management noted that NGS volume grew 35% and now represents 25% of total revenue, where pathology services have historically dominated the company’s total revenue. The company noted its expanded hematology genomic profiling panel it recently launched, and its recent launch of its non-small cell lung cancer therapy selection panel. The company also noted that it has submitted three coverage applications to MolDx for Medicare reimbursement in breast cancer, head and neck cancers, and lung cancer for its RaDaR minimum residual disease test. The company also noted it has 27 ongoing clinical trials with the technology.
NeoGenomics raised its full-year 2023 guidance, anticipating consolidated revenue in the range of $585 million to $592 million representing 15% to 16% year-over-year growth. The company also raised its Adjusted EBITDA guidance to a range of $4 million loss to $1 million loss.
From a profitability perspective, the company reported adjusted EPS of $0.00 compared to consensus forecasts of ($0.08). NeoGenomics ended the quarter, with cash and cash equivalents and marketable securities totaling $402 million at the end of the quarter.
The company has revised its full-year 2023 guidance to reflect its continuous progress. NeoGenomics anticipates full-year 2023 consolidated revenue in the range of $585 million to $592 million, representing a notable 15% to 16% year-over-year growth. The company also raised its Adjusted EBITDA guidance to a range of $4 million loss to $1 million loss, indicating a substantial 92% to 98% year-over-year increase.
NeoGenomics CEO, Chris Smith, expressed his satisfaction with the company’s performance, saying, “We had another strong quarter in which we delivered significant revenue growth over the prior year, continued to gain operating leverage as we achieved positive adjusted EBITDA, and improved turnaround time for our customers for the fourth consecutive quarter. With this strong momentum, we are pleased to be raising our annual guidance and believe we are well-positioned to deliver long-term sustainable growth.”