NEO - Earnings call 3 2023 | NeoGenomics, Inc.

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Operator

Greetings. Welcome to the NeoGenomics Third Quarter 2023 Earnings Call -- third Quarter 2023 Financial Results Conference Call and Webcast. [Operator Instructions] Please note, this call is being recorded, and an audio replay will be available on the company's website. Kendra Sweeney, Vice President of Investor Relations, you may begin your conference.

Kendra Sweeney

Thank you, John. welcome NeoGenomics and results quarter everyone, call. afternoon, to third the financial Good

to are the Executive me discuss With today results Jeff Chief Officer; Sherman, Chris Financial Officer. and Chief Smith,

for the team of of Diagnostics; President Harris, and Stone, Clinical Warren Vishal Operations. President members Additional of Advanced are available Enterprise Fikry, Q&A, management President Services; Melody of including

This call is being simultaneously webcast.

a on been posted on Investors tab our We at has Slide will to that X. be slide presentation referring Starting website to ir.neogenomics.com. the

statements forward-looking making our be will we call, this performance. future regarding During anticipated

We on factors SEC that XX-K, results Forms to such identify to may actual us judgment caution refer statements you and recent the actual our cause or reflect factors and XX-Q differ important risks best and statements. our results could events that to Please forward-looking to most based differ X-K materially. currently other the materially we known our with that from filed

statements of any of statements. call made or revise speak of The and this obligation update as no call, undertake the only during to forward-looking date these original the we

regarding During transparency to results. that adjustments GAAP in operating performance, certain order financial provide involve to greater refer measures this non-GAAP we call, to our

measures non-GAAP in the of GAAP, presented directly afternoon. be companies. measures on are the The referenced non-GAAP Any non-GAAP this we other measures unlikely to required financial financial financial a release and alternative issued GAAP comparable most provided measure table to press should to to not by financial the are this call in reconciled an financial available not considered liquidity be should measures by measures considered be comparable

over Officer call the to Chris turn NeoGenomics. Executive now Smith, of will Chief I

Christopher Smith

financial afternoon us for Thanks third through everyone. welcome, and our joining to this results. go Kendra, Thanks, quarter

company mission teammates want I with As our a because statement always, begin it's on daily what motivates and our basis. and our vision to

stabilize patient Our is Neo mission care. improving at by to

single lives making dive want for in, day. to also they're the patients' X,XXX impact we on the every teammates Before I thank

Now highlights. and get into X quarter let's move third to Slide

over increase As Clinical volumes test. in very revenue see, an XX%, another increased XX% year. prior we revenue strong growing you Services can by modalities had revenue per across our and strong quarter, driven

As our and a pharma Advanced revenue. informatics, RaDaR. approximately clinical a revenue, which in excess represents continued and from informatics of XX% by in now services of ramp total highlight, prior XX% NGS and X% Diagnostics growth year, driven increased in grew includes

our positive quarter. As we execute continue the outlook internal We our fourth transformation to the with that started in the outpaced the progress adjusted of be would on business, the year has plans. we

the in last compared positive adjusted improved significantly million. quarter, a as EBITDA However, third XXX% to year of $X QX to

XX% profit the over was $XX year a or million, XX%. gross Adjusted increase representing prior

in and For a market test growth. improvements to increase the of we per growth test consecutive well tenth the driver quarter, revenue NGS be year. growing is continues an prior per revenue in above versus saw estimated

revenue and pricing are addition, management revenue cycle growth contributing per In to test. initiatives also

X X in business as In updates, X new completed neck. and in X well terms submissions including indications, as breast head other key MolDX, to application quarterly of X lung additional and we

Slide X margin in delivering third performance adjusted demonstrates and improvement quarter the with sustained consistent revenue, EBITDA. gross

the We well as a the as our customers. clients this for it's of strong proud existing because growing year-over-year from execution teammates result growth products are direct Neo of by our and new accelerated demand

to of believe year the implemented to the we end drive growth, initiatives in enable second XXXX they and to Our through the operating and continue improvement business accelerated the the continue ability have beyond. half and of in revenue cycle

grow of out the drive and and people year, Let's strategic advanced value profitably the at the accelerate move Slide kept business, on creation our X. focus to culture. narrow core We've diagnostics enhance laid on beginning a priorities

this team I'm strong going our enhance the foundation financial are to mission-driven long-term teammates This is critical culture Neo on Our and the other focus our afternoon, continuing our to to of priorities. and success. company

properly to continue grow expand as execute business protect, clinical core acquire. We strategy, we and our which our is commercial

strong us and improved deliver This has mix. volume helped

time allowed Our improvement than faster turnaround to all modalities in market. the grow has continued

towards In addition, quarterly delivery comprehensive the panels in another mix per has shift improvement more yet of the supported revenue test.

Clinical gross year. the million profit adjusted to $XX versus increased or prior XX%

malignancies, CTP Our strengthens in newest heme was leadership NGS services. position our weeks key a launched Heme ago oncology panel for Neo and Comprehensive the few

of selection for therapy early overview detecting We lung providing panel, also cancer. stage biomarkers launched the comprehensive

continued focus R&D, that force and includes disclosed expansion innovation. we pharma continue Diagnostics Advanced sales which services, our Finally, to on we Within informatics division, we in QX.

the applications technology. RaDaR RaDaR in As we third studies utilizing Collectively, MolDX. have X mentioned during to progress quarter, now we XX submitted

are these of in and and neck, breast lung randomized HERX Meridian interventional a and CAN, head trials, Some cTDNA trial. including

ASH. that R&D, additional of at and Cancer modalities also Symposium, implement We a clinical other new a cancer San pharma December, RaDaR innovation new product on will In [indiscernible] breast will we our be X and at benefit accelerating both who data our development structure neo Heme presented Head Breast hired Antonio the closers driving focused customers. will accepted have new and

for days we are very clinical RaDaR. with RaDaR, pleased positive low early that highlighting value samples, is the setting still of our While technology sensitivity

revenue have focused pleased financial leverage further generated on value we've and are a operating fell perspective line. to expansion even and from margin QX that have driving the favorability bottom as significant through We delivered from creation

multiple enhance we turnaround several To key launched approximately of XX% we As the move time we systems. our a the to QX. over achieved efficiencies, further LIMS optimize improvement system. LIMS under to lab last Because initiative X organization have a we operating years, X acquisitions operation, over operating in key continue to been

become XXXX. backbone in ordering We'll end integration This our a new ERP provide allow systems digitization labs, of system, allowing system, increased will across start back which the our and the will and between project of entire tighter see efficiency our CRM for to benefits enterprise.

have the procurement on chain. of and completed consolidation Cambridge, lab we've margins, our improved international improve U.K. processes X into supply and costs reduce further labs To and in

see We expect in XXXX to and benefits continue beyond. these

the minute the proposed lab I turn unilateral FDA's Jeff, regulation tests call address take I medical want Before over of as to to devices. to developed a

rule Given of it's on the requested important the proposed instances note draft includes agency is that hypothetical. are the has in topics to the many grandfathering, comments around public form substance still and topic that this

factors said, with history been performing testing. being believe other regulatory together Neo CLIA many of similar termination. we have a We MolDX That us with strong and also start a has CAP standards, and head these complying give providers working and taken over labs reference coverage

executives who have experience now in for the place business We quality, and teams have FDA preparation some in operated have R&D. our time process, and with including regulations approval for and regulatory

design last Furthermore, our control over has assay the and development to preparation submissions. been future for incorporating XX FDA months XX

of business a with As we will impact. member ensure continuation work the with limited association ACLA, to patient care of the

the Now more our to to Jeff results let review Jeff? call turn detail. me financial over in

Jeffrey Sherman

on Thanks, results Chris, the afternoon, everyone. and quarter. more I'll good our begin operating little a for detail with

we year growth with said, accelerated over double-digit the continued Chris revenue prior experiencing As year.

of higher mix growth test per by an revenue prior increase in Third quarter from volumes, revenue million, QX business driven in complexity Revenue increase a driven test and a shift year revenue clinical was was $XXX to over continuing by the and and X.X% 'XX. tests cycle growth improvement XX% improvements.

year. consecutive year increased to improved $X generated prior a quarter million. to that EBITDA. operating positive the revenue fourth to marks with Adjusted the adjusted adjusted EBITDA flowing favorability EBITDA line revenue from prior as significant QX We over XX% fell from XXX% of through bottom leverage growth

that volume force $XXX million and strategy reach revenue optimization our of within at in the by acquired X. by Slide us a client pathologists other Higher and driven is revenue serve. and year-over-year, is XX% sales existing was as providers test. enabling increase newly our Services growth in Clinical X% per Looking volume increase as well oncologists, and base increase of XX% we customers an physicians driven demonstrates to a

to Turning quarter revenue revenue focus year the maintain consecutive $XXX, cycle an X. improvement increased on XX% year per management as Slide higher-value for prior tenth prior our representing versus and clinical tests to over initiatives. by test Average we

As for noted, year. focus with our growth approaching of approximately team of XX% is we the NGS revenue our revenue NGS clinical previously a sales total

strong the sales accelerated to in As see in expansion team, continue our our performance and NGS. a in NGS of growth we result

our we increase of as an low-margin business. to our macroeconomic XXXX. to QX and QX expected versus quarter conditions year. XX, due X% noted our Slide to the testing on Advanced On fourth call, This revenue and as with R&D in and quarter slowed rationalize grew Diagnostics sites is ADX continue well growth spend global the prior third into early pharma as revenue in slower decision

year-to-date XX% or with performance for XXX and improving on $X.X basis growth profit versus the However, and year. margins million by driving on profitability ADX prior basis margin adjusted points focus a adjusted by improving gross gross is

gross of XX.X%, was the income at an of over points Slide Looking statement XX. Adjusted margin XX year. improvement third last the quarter basis on

lower was operating driven business. EBITDA higher were or by significant profit a both XXXX. third million positive and million, Adjusted expenses improvement over the These improvements the XXX% $XX highlight operating $X quarter of gross leverage the and in

in million operating continue Regarding to expense of as our was and we the $XX.X marketing force. invest sales sales expenses, expansion

in did million, related R&D R&D the year XXXX expense to $XX.X was tax favorable was and fiscal a credit million We $X G&A million. $X.X have of quarter.

organizational costs $X.X and the in operating related was optimization, restructuring part the our which restructuring In announced footprint leverage. of program addition, value there quarter million is previously in gain to capture to

into costs in our continue result, result revised costs our extending geographic now and presence. will timing optimize as XXXX. anticipate operational efficiencies restructuring and projects, plan These charges as these have we a ultimately We to enhanced original of

ended $XXX with on the to securities Slide sheet million. quarter balance We cash third and marketable the XX. of Turning

or progress operating good QX operations focused accountability improved cash Cash continue We oversight and make expenses. and managing are from on $XX disciplined XX% of to diligently million our flow XXXX. in burn from

a flow $XX XXXX. operations or XX% first cash by and improved X of from basis, million year-to-date million the On by XX% months $XX year-to-date or the over improved burn cash

provides tragic flexibility and Our in the to us business and objectives. financial our to financial continue the invest strong position financial achieve

progress financial continued strategic and are and year. on the guidance executing revenue we Given for our EBITDA performance revising our our adjusted priorities, QX

Turning XX% in XXXX. to Slide growth revenues representing to $XXX XX. million had of XX% previously million to $XXX We

to XXXX. negative $X and $XXX revising year, of XX% negative XX% million $XX that the total and to year-end negative now and between $X and revenue negative midpoint to growth. upward EBITDA million are improvement is from $XXX now or representing $XX Adjusted We at the was million for expect an XX% million million represents million million range $XX

see for accelerated provide which RaDaR leverage in NGS are very continue growth revenue line. the and to by the launched and to strong encouraged an tests, mix newly product We and opportunities increase other bottom

in difficult we more beginning As we the deliver our a and have teammates foundation year-over-year of we comparisons be fourth strong at quarter, dedicated year, the but stated results. the will to financial believe

also our While be business driving the in invest we capitalize focused opportunities. growth to continue future we on continue efficiencies, will to to on operational

Our sustainable focus to strategic remains growth. long-term deliver

back With it that, Chris. I'll over turn to

Christopher Smith

Thanks, Jeff.

revenue with strong you improvement and are As year-over-year see, growth we very adjusted including of our EBITDA. XX% can progress, pleased in significant

X results. future. in We saw RaDaR will additional MolDX now the raising for our for and therefore, that We are of coverage guidance pending full with support meaningful our we progress year generating execution data the have expanded the strategic submissions priorities are and in

well testing on leading support cancer company. becoming decision the are way We to our information

growth. teammates past We'll out of that a we to the our I'm sustainable over the our laid patients have the daily deliver on build for to foundation long-term for excited several basis. customers, we get but on serve most all and quarters to continue

the up turn open to over Thanks, and questions. the to it for call operator we'll back

Operator

from Massaro comes BTIG. [Operator question Instructions] Mark The with first

Unknown Analyst

clinical on Mark. RaDaR keeping Vivian we strong the I'm is XX data points of just what wondering eye on This out out for Congrats should quarter. an key the be for trials.

when might head-to-head with to we competitor, a MRD see might able a Specifically, Tech? be be when comparison

Christopher Smith

that. Yes. let Why take I Vishal don't

bit You that some can about got talk a of little we've ongoing. those trials key

Vishal Sikri

out will the have the coming which data of initial at Antonio, trial. is clinical trials X TRACER San some So

the year throughout The XXXX. will see other in ones readouts data

that's is main for also a something our developing not are own terms approval. where published that MolDx data us and still It's is get clinical something to In that to head-to-head, of considering. we our focus get focus

Unknown Analyst

and respect be OpEx Should then might revenue of could improvements leverage the here operating some think Okay. Perfect. -- looking areas a taking most what we with Yes. to be from drop-down here additional to you And from what and levers any from costs, any? about are management. in growth if on here optimize pull out to you

Christopher Smith

Yes.

attention the to continue year think continue on drive We've good I about tests. to see overall seen standpoint, I only faster, continue volume quarters, previous front It to good opportunities an XX% we growth. total the this pricing on we NGS revenue think as in operating and can drive higher leverage complexity a lot progress in than growth as that it's represents growth. opportunities growing of our see we've different much from and We've clinical focus growth. volume seen said about to market results. our talked We of today, faster

And so is performance as that drive area to well. going

help drive We improvement continue the better procurement line, drive new to margin grow us the we've going us see systematic few to a there. and gross things more talked And to LIMS efficient is to ADX business. buying system also be the from performance margin a help perspective. adjusted more opportunities Implementing on will about

the to on continuing there well. efficient OpEx we're more as the line for then And get look side, opportunities to below

year-to-year You a that this basis, account quarter into before we're the year-to-date is hitting on and in and see even our restructuring down that's both taking year. year-to-year costs

So our give think as lot we'll about I we guidance a talk when performance. February, lot QX what a still year, to our see to we in continue of do this but we more to think done drive and drivers, we've we opportunity XXXX improved runway of see about

Operator

comes question Blair. Brackmann William from next The with Andrew

Andrew Brackmann

rate start just moderation or that could you're over about of those if on you some growth in about of Maybe thinking for time. Can test I drivers metric. talk that revenue of durability of the how some sort per sort maybe

figure out to juice just how initiatives. trying is to squeeze from left much internal Just

Christopher Smith

know, high them is look, quarter, obviously of walk like think, around this on at are Jeff first been out growth but the So because through NGS. X amount X revenue. NGS disclose come the of main has hit I'll you kind I'll level, But let kind And there mixed as the really I and of of and we've levers.

revenue, it's lots the it where XX% And because ASP clinical of of only being of look, gives is. runway us

in we Jeff, And continue of force a of talk time oncologist you as expand the because expand the able team want to versus hospital. pathologists so kind and Warren the mix, that and do we're especially I to presence manage, way you with there. in lot sales continue to the to know our through levers the and spent But

Jeffrey Sherman

Yes.

X%. growing XX% seen per with back between the clearly XXXX to an revenue anywhere test XXXX, uptick go now If our NGS and you with XXXX per for our in revenue test was and growth X% We've our almost averaging year.

continue other And NGS to sure think to per I'm growth. revenue I think initiatives quarter to I to continue to I growing would time in in we over expect on. And focused So extrapolate have test. time. expect that going XX% growth we stay there's see focused and X we're over then to continue I on X think not see areas

good the opportunity year. doing. And improvements multiyear I work We've there. seen is think our last we a first price. collecting The the just that currently in And is more cycle, the have for actually revenue then just area we're for

price on with pricing coordinated are a line build as increases We our well. contracts, and taking managed working our share more direct approach with seeing we're

an And drive think that this is some and area revenue. where dedicating some going is help to resources we talent

revenue still at strong multiyear we very test time. and So see, per to growth this look year, opportunity we over as I stand think -- a think, but we've had back grow I see

Christopher Smith

Yes.

that think to run we durability from several for perspective, I next years. the So a see continuing

Andrew Brackmann

guys up mid-teens that you low Okay. the my color side mix the ask wanted guys put I math, it, call to around NGS quarter. you the I non-NGS I actually the of on in appreciate growth, think teens That's in perfect. by because to And sort giving here. then

at talk just tests. maybe you durability well, just look Can those as that about in more as category the of traditional growth we

Christopher Smith

this Well, than at last end and much year we I now One that are starting that impacting couple -- is we're would more a publicly losing. of say think we say are of would look, shared I things winning I look, that. pretty the

move modalities. share So share we're helping obviously is and moving moving

our they faster you in rates. think than X% single every think And from those be probably about just whole to grow, about, of market when having talked market X But normal doesn't just that what guess, I I but would cycle help Jeff with around helps this growth addition, X% it modalities, we're in modalities. management growing strategy revenue NGS, board. would the anywhere We're across

a modalities. us helping from those so in all And that's perspective revenue

really at nice market, share we can -- we And from there's believe expand. there. market runway where, we -- perspective, can think I only we also look still still new you seeing that's So not whole a that when we're lots but -- -- the win accounts growth only where of look,

Warren. going we And there. hasn't I I anything we share going here of strategies Warren, think moving the into else and his start have accounts, Warren, so to X but there you... don't it to But think, can throw is he just current business your But been accounts,

Warren Stone

Chris, that that I think high we're that's probably is our commercial again. the level, strategy continuing ultimately,

losing And area we're in been the is expanding probably significantly easier have share existing actually what a than on. growth. at obviously And That's we've less that. been of to fundamental past. our for of affected largest That's So really really, build we customers. us wallet

which obviously execution of these That's move which some strategy, driving growth secured provides above-market as tailwind effective the is area on. that And then as that lines wins a we're that obviously which that with winning we feel we've of we in sales the is other. in expanded focused resource with we've end And new customers, year. our with really XXXX XXXX, next another lot into

Christopher Smith

improved sales think as then growth I time well. correlation and we a And clearly between turnaround see

to drive efficiencies continue helping as volume. incremental improve, it's operational So . us our

Operator

Alex from with question next Craig-Hallum. comes The Nowak

Alexander Nowak

here really talked has on call. in NGS new share gains, over team far the couple the NGS last in The joined. market company about so business strong years the the as Really lost before we've of molecular

is NGS this your to the taking that those into were customers lost? better used of full really haven't that gains existing So back is Or share penetration extent? market NGS this from maybe

Christopher Smith

I would the say have XX%. mean, market yes. I I growing think I to both. mean XX% it's really we

only growing the moving at are we're we're plus, not XX% growing when market, share. So we but

combination So of a it's really both.

Alexander Nowak

recurrence Got MRD is Okay. label recurrence resubmission X-year today? here, grant a the And have going the breast to MolDX and versus be it. to then that label we broader

Christopher Smith

Vishal on with talk X me in products of going our to about Let kind take what's that let multi-end.

Vishal Sikri

Yes.

is So to to be expansion our MolDX for both that recurrent that correct. going in the have an It's we current space. and surveillance approval

Operator

Next, Piper Sandler. we with have David Westenberg

David Westenberg

Congrats on really a good quarter.

appreciate the NGS the I big. I the commentary I growth. ASP all was it lift, So really mean -- on mean, The

to actually in that piece. more a want into I revenue life management so And bit just little cycle cut

I quarter, to that any would we're I as help quantify if from in like Street it, the don't chop us quarter ASPs in how mean modeling you frame there revenue aware of in of onetime I be management $XX terms this And the lift, know kind of that think you then like in by there something because that quarter. to even but cycle much maybe cycle was this revenue just size just or beat the of can meaningful is management.

Christopher Smith

Yes.

it Let let of me get ways into kind the and a take detail. maybe Jeff couple

that continue about to move the over we several there's But the disclosed opportunity we thought we out. to way built is. the haven't the next how So business opportunity much years,

general I'm at and David, I the should is be bad how core for a getting the when have industry being Francisco that believe San new billing reimbursement to competency may we in we we we I think that even this And industry of just that talked met company. do. surprised the the paid incredibly work And think about

resources will of more... think to lot a say, we want things our to energy. doing significantly that innovative what improve Jeff, But spending we're give ability and paid I do for So would time, you do. we get

Jeffrey Sherman

that be driven I percent XX-plus the an within NGS by price balance we're and roughly initiatives revenue Yes. cycle other modalities NGS is revenue then just overall NGS seeing look, growth think would and per perspective, test of in. From and mix the

again, our percentage to an And percentage we driving our opportunity that, continue do revenue drive that low to clinical that. relatively with a as focus so see penetration of total continued on

X cash Again, quarter, before the I that. stepped XX% to wouldn't has per from year-to-date, been we've got revenue and clearly but quarters X previous where XX extrapolate up it we've

David Westenberg

how And model. Got and terms really we quick, 'XX well, not about think a our in for or 'XX of that one, when if quick just thoughts but it's returns, PAMA, it. on just maybe that should it

Christopher Smith

Do to Warren? that, want take you

Warren Stone

I understand the is actually it if Yes. the -- Certainly, the some lower day. it's of how returns. I of mean the difficult are exactly modalities where slated of mean, value when it'll and certainly impact. to some at end cuts

forward the look impact future, material performance. as we that see to we our As into a don't

nothing if focus. a because it value modalities it does too it is material materialize, be marginal are to headwind Certainly, that will but lower the AUP, in with

Operator

The with Tejas comes from Savant question Morgan next Stanley.

Unknown Analyst

This Congrats Patrick on is for strong Madison quarter. on Tejas. the

a pharma there it at the implies line quarter? assumption for could think for why you sequential the Just some at top on there is what color for the sequential a assuming into growth on is guide any what midpoint? maybe flush flat -- guide? And you us give the conservatism budget baked And like fair the fourth are the you looking about quarter,

Christopher Smith

you I middle. conservatism part middle guide, last one, lost Can that Jeff, you're her but... I in you that you talking of you the in about the lost did Yes. your say the you question. in -- again, say -- Can get the

Unknown Analyst

Yes. Yes.

flat about what from of fourth for you're fourth budget built kind quarter. -- quarter assuming guide sequentially looking into any at just the to if And it wondering quarter? conservatism flush, Just kind of third the is looks

parse some there. to trying color out So

Christopher Smith

the flat, QX. of performance it Yes. range but for I is midpoint mean a roughly is

wouldn't call QX. unusual out in I So anything

thought wanted clearly, range as expect made as to QX, I year. throughout we for the improvement give see But to continued we we think that have sense. guiding We a about

Unknown Analyst

you're flush? anything budget makes there assuming That And on Got sense. the you.

Christopher Smith

know I what. don't

Jeffrey Sherman

That's just flash.

Christopher Smith

by budget flush. sure sorry? what I'm I'm you mean not

Unknown Analyst

move I biopharma about talk been the been you've on yes, just in if you've know a them? bit question. bit the I'll about -- feedback tougher macro conversations don't next And environment to and you I Sorry, ADX. Can from a customers any know getting you having talked with

So color there been any you've seeing?

Christopher Smith

Vishal, want do you to that? take

Vishal Sikri

take this. Yes, can I

hear terms is pharma on trials do the compounds larger of earlier consolidation that we customers it of the in on our on. in that on lot pharma -- of but a we're there the . A from little So small number the number companies bit they're clinical running, also. biotech, that of was focusing they're hearing this a larger

I that, hearing a continue off we're to why XXXX. a expect based consolidation, especially quarter, the going QX into previous we to slowdown compared little that's in saw So number we it bit limited to it early programs do a and mean, But on and that when they're going focusing bit into of XXXX. comes little the QX the

Christopher Smith

quarter. some soften menu those And clinical, that mean pharma impact different saw just us though a and a I and in help testing the not importance a long-term down others effect. think bit about informatics we're really and We see having single of that's because lot focused does our you good of the the in opportunities, portfolio Yes. of broad what I covered. of even you couple little modalities. think the X here I And RaDaR if quarter, of the slows on talk

Operator

Matson question is Needham. Mike from The with next

Unknown Analyst

you a given a for do quarter. already I'll little than just had that Joseph line be other quicker looking bit just could around them that on a this on previous Congrats into breast, you've try to the put dialogue coverage, just at one. expanded Maybe for submissions with RaDaR. the think just and is This couple Mike. But all the time submission. X

I under And breast reimbursement current breast cancer for that you just reminder, guys it the before, potential said a what profile then know -- there have, maybe that of guys volume MRD reimbursement? is talk for have about you percentage announced about patients just that other at confidence And on if you just submissions those? you submissions then with evidence guys that enough your the you those X looking with can current but

necessarily Maybe could colorectal. by submission you if at could the that? I you of guys Are a didn't looking be know put evidence when that you're awarded you end for time of for it line get the expecting year? more

Christopher Smith

a of A questions. on lot there. lot There's Okay.

to as go expect So I do colorectal is we would have handle line we an saw compared that expected say on were as a good what out faster example. to the MolDX we relatively breast by the now. We believe get what time that and indication. with breast able we And a expanded initial

cancer MRD number of far. broken of so the our coming cancer we type versus terms submission, On breast by from patients of down current haven't it

it breast But of value a So our obviously in I we think lot at cancer. leave we're focus because breast going to need cancer of that. you high sensitivity proposition that

submissions. other the in Confidence

as we submitted. for for have have neck I mentioned, and we long, and head think

big and to patient when value, we with comes with we feel strong not have that are the a these submissions lot colorectal are we things -- with colorectal that of that feel it of One do had -- publications did we especially are add care. will that we

at in with something we're we've CRC part point, And XXXX our as in looking at this CRC, XXXX. submissions. those be of utilized in So and probably not

I think I can those everything.

Joseph Conway

that's more time and in looking just just great. RaDaR, in be into multiple maybe it XXXX, radar different I have you just X then cancers. guess single question. Yes, on quick year a I'll next clinically XXXX, do could will X this

start improvement the gross up kind margin gross they could could to from for if I bar, you those. maybe guess you wondering bar, margin margin as the you just of was frame I see low tests what these the high could -- type ramp clinically? gross of

Christopher Smith

admire, but early obviously RaDaR. we I trying 'XX. haven't And question, Yes. that given days look, guidance you're for with to Yes. it's get

to it's to look, clinical I way the published. important coverage. you're sure So get the think get running is coverage what I make those to -- we believe think And getting right and trials

we've trials. is how look, this the publicly many ongoing ever about talked first So clinical time

lot -- RaDaR. have We a give color to going there's on with

starts year. on or to come you, any but margins to around RaDaR that financial as So I not for we'll guidance next kind gross of we're giving anything think update fruition,

Operator

The next Cowen. question comes TD from Tom with Stevens

Thomas Stevens

beat just operational Massive horse of I kind quarter, of and to efficiency. talked a kind about again, winning mean dead there? of congratulations. just the you're just quick kind where had I you one, CGP on portfolio your

You in more sales of simple on? there is as that times more turnaround going as Is talked fast about something being Or specialist and clinicians? force. front

Mark Massaro

these And there's at think Well, our people adding and strategy towards heavy lot and of to I to things of pretty into mean, as the to hospitals. I focus. I oncologists end last lot we've been you on fit year started this a pathologists know, we year field think a under the play. sales because community optimization of more focus on start then our

I to an time side. get innovations a definitely in heme to the and making the solid the the moving. nonplayer out in we continue new on We the until be that's we were launched product really impact. product March. think bring leader to continue takes look, And It we heme

even multiple So me things, let maybe color give to but give a little more Warren think it's I maybe around...

Warren Stone

out time. spoke things from constant. we've in focus of exactly about well a operationally I things overall performance, we acting call. I I the a really done the And and turnaround want give is number time there that to call a of think turnaround importance is the the But with work done NGS of it's on the we the -- extra that obviously, we've to from things think first X multiple

we've new to the that's added I that's thirdly field this that market, market new compounding that in panel contributed products we contributing is March launched coupled X. think spoke of that the sort in Heme Those brought the factor the earlier but also sales is the Comprehensive year, in here that to with the the on earlier CGP in driving content number a to resources And -- now execution we the I success. not brought quarter only of about really performance. just are then strategy second factors of that Neo of also

Thomas Stevens

yes. Wonderful,

of year, number should NGS we the these within going follow back that I'll the the portfolio year? this one, guess margin benefit a X kind launches thought guys net of the emulated guess, of of get that. I of you you've LIMS the have second this with growth just So sequence about parts reorg? is expect you of outlined the given and into And going next just or up then rates from I the gross kinds into bit on had kind

Christopher Smith

get this So business, We've took place even a and given and so was months several it internally, a execution. to to think of have I we us that -- give able ensure LIMS the focus about you idea, we we're -- really to out carved a where the project mean resources an the get good planning of felt I dedicated it to it. the huge on

multiple X done you've on when significant. margin and LIMS company the systems, is perspective inefficiency running the But acquisitions from the over history gross of time a

As you like of project, it's ERP these know, when you in, it an time. doing put takes X

impact ongoing say, starting believe to anything... get it starting X-year an we'll over it but a So think we'll some take X.X, you're impact see we'll X, we see of not period, positive that. on January a 'XX, continued to in Add HX see right? that really is We going this

Jeffrey Sherman

Just into grow year, is on next the to give on look, year. more we going as continue color expect NGS that our we guidance but to next NGS give we'll growth, calling

Thomas Stevens

Congrats on the quarter.

Operator

Matthew Sykes Sachs. Up with we have next, [Operator Goldman Instructions]

Unknown Analyst

Matt. Prashant for This on the Congrats Code on is quarter.

could -- talked but you that for on the you do it's about, know submission? additional breast MRD triple-negative cancer? been So clarify is I breast

Christopher Smith

ahead. go Vishal,

Vishal Sikri

breast for triple-negative cancer. is it yes, Matt,

Unknown Analyst

Got it.

much do how over the you then competitive market share term And landscape? Okay. radar longer the capturing given see

Christopher Smith

way the think lot And a $XX it's less X% billion than penetrated. have in the that you think the right I about been all or look, analysts X% to market. of market, writing a Well,

So mean, a a lot lot, I of there's front in runway. us. obviously, there's a company of

cancer There's states sensitivity sensitivity we and a matters, were publicly where multiple out. places we're look, would seeing makes say, cetera. the is significant, disease our companies look, that like really I lung, difference we're coming would disclosing what that what shares. in breast, not I et But say is seeing

how So with a the to big, all But to I up. try too think just share it's of wake will big speculate lots early look, opportunity. market

Unknown Analyst

sales any And on expansion. -- lastly, color just it. force and Got the

Christopher Smith

Yes.

transparency XXXX and in early good kicking QX. sales in force the A far. that expand XXXX of of thus the really in lot very QX So part we doing us into continue momentum we're experienced latter in sort that to the into will that to work off redeployment we're our position we've culminates continue of .

Operator

Next question from comes Mason Stephens. from Carrico

Unknown Analyst

is Jacob This on for on Mason. print. Congrats strong a

the you digging quarter growth about in been appreciate NGS there, covered just there. the NGS how heme the maybe tumor? a Could all trended deeper across in bit little solid growth. talk during the versus I So Lot's color but around

Christopher Smith

kind break out so all build solid. together, or keen our NGS what's we of we So don't

we disclose And performance been panel So how pretty or new that but until in about think which we we've launched really either. our inter-quarter much nonplayer talk how much don't we a were I -- team it. publicly is open in solid really March, of don't we

about talk prefer increments. we in So to just quarterly

Unknown Analyst

Yes. Okay.

Christopher Smith

color, to And it's competitive really we disclose look, not It's are but give that reasons. for with think things highly that. pleased And competitive we really competitive And going. a don't perspective, from we're want any a place. I just where don't it's

Unknown Analyst

that No, sense. Yes. makes

just docs adoption that on more expansion? broader competing Or growth the offerings So the Could market the market little on talk out launch, a maybe specifically, away you Neo majority market from Comprehensive coming And in a about think little you're now. converting think been trended? for you been it's bit do the from for of is bit? have maybe how there. you new do

Warren Stone

that cases, combination accomplish. other we're in a a actually There's in that in And both. certainly the we of from. cases growth have that where can to expansion market we've the managed been market there's brought Yes. It's benefiting many conversions we cite

again, team of it's perspective that reiterate So investment the the combination from both. sales fact the worth... a And I really is

Christopher Smith

I think the lot. that's always a Neo strength don't of the things And that's has community of been a helpful setting. been X --

of institutions. oncologists. primarily community who of university or in are the living And a research lot competitors a our about them, lot think there's So

And so our on growth. ability to I lots and continue treatments to the and penetrate in lots the community. community oncologists is lots a of our key going mean factor to

Unknown Analyst

final QX and you sales about But didn't scaling Is it. that your team, mentioned can talked QX. expand there? in in Or previously, you're materially And commercial think I really just thoughts if how on to Got you that X materially XXXX. in still plan changed that I On squeeze your you you then team here. have continuing X the plan?

Jeffrey Sherman

Yes.

investments this a it at year. very perspective of are it's a some of and plan And back we're I as end of of the that also office investing of more back terms think roll happening may the going all for but QX, to better is team to drive in the do into we're larger -- are enablement commercial of expansion putting improvements of where sales sort allow then going resources to the focused most team is do that which going because from this in part -- but really ensure productivity have. customer-facing, the to us with we existing the to

terms next later, going So do of this for time investments probably negate in need what to but to that's in XXXX, the that XXXX. year want certainly for we help reevaluate we'll to

Operator

Souda with question Leerink Next Partners. from comes Puneet

Puneet Souda

view Obviously, focus. AUP been is seeing cycle covered, the this wanted at get maybe you're big that was here I management your revenue high but I if to level, has -- a in Chris, a on apologize remarkable. improvement and

talk process, to you done? of it's talk So And left sort far that that you about where are about revenue go? that if at can maybe you how just in high transformation Maybe could. cycle management level, what's

Christopher Smith

it's being the know thing some to runway. day X a it mix. only into think NGS revenue a close. early, I Puneet, we did We talked with lots lot by I of markets of clinical back jump busy is but the of And we're about it. Look, our cover Yes. happy XX%

kind cetera. do revenue kind a And what about mean, is talk did little ASPs, you want the we But looked we you a it. at into other dive et strategy do Jeff as But about to did of give... where so obviously, to cycle of multiyear more want levers bit I talk higher it.

Jeffrey Sherman

of say the about Puneet. XX% plus our revenue in I the on said other earlier phases in what And still some our was And mix volume. revenue Yes, and pricing, NGS testing early mix. cycle, roughly would in the improvements per of balance revenue opportunity by the was we're driven on improvement and test cycle was capitalizing call I

or X But still room about we what and to expecting are improve there it's a quarter quarter get see think paid process. and what to as not we we we're getting paid, X

necessity sure have make process. to making covered. being records that we're it's medical more we're you to getting authorizations, efficiently sure a We covered I think want sure technology making where multi-quarter medical prior a use efficient,

a and handle frankly we exists, where I but there's being by it think good where and So payer gap. on that drivers lot place plans we're of have varies opportunity different in the to have paid a close not

Christopher Smith

bit want contracts, the care payer you about talk Do a to got runway? you contracting little but how managed

Jeffrey Sherman

Yes.

added our way, contracting, go care coordinated a -- we've more And about really XX% just a So from managed and of we direct after side pricing managed on do and the the in we business. that's with area, our lever, pricing -- bill client pricing, managed sophisticated is our also another improvements have care resources revenue. which can pricing to remaining our of where X/X in share clinical is

this and multifaceted, room run the we're it's have we have we still think So that's couple -- over next of area. in why to years

Puneet Souda

all inflation Super. there. That's -- maybe some seeing? overall labs. of you're just just bit the be a goods labor insights then talk inflation But then concern on. Got to thanks a more cost was that And concern on And a us earlier about for was a for the concern and it. continues labor of the X of to cost

those and the an among opportunity see giving out of landscape you concerns of in some do the in And market. there the potentially the the some biotechs address companies you diagnostics layoffs to hiring

Christopher Smith

over great gotten are out some Well, and a we perspective, think greatest they look, our their I some have skis financial definitely change I companies do think teammates. from people for mean look when definitely I our asset. of type

So can I think any add there. we time

Myers Fort County, think and wet I in I Orange where Raleigh. helped is are. us we other have in labs thing Houston, and on the really that's pretty mean we're we diverse

And great good pools labor feel think keep in attract ability so and the talent. we our about markets I to incredibly those that and

we millions X we came that And that say procurement. make fairly. The thing had pre-remarks, the in spend wouldn't millions of I seen Look, we impact. -- will lot we've hire -- again, I of view my and a imagine, impact. a purchasing is that as we and spend say -- we big you millions our So and can have out best them Neo a sure not big and want to this really that we around really and time But didn't is pay that dollars.

ability of a in a thing has over X the X in Procurement Chief bring changed of do And the that purchasing think last Officer to better months side much place our to so put job and the us to allows we that managing business. some systems

Puneet Souda

it. Got

Okay. Super.

I the questions RaDaR covered. think are all

So good. I'm

Operator

any We've turn closing reached the the remarks. question-and-answer to I will end now of the session. for over management call

Christopher Smith

Okay.

we taking the look, time. a really the still busy was day folks for It the So that our you are sector in market. on, in appreciate

the little So what us about learning QX. there and happen a bit will -- with in in hanging thanks for

back you with Until the after look take coming the QX year. we to sometime the first forward care. then, results look, of to And

Operator

concludes time. participation. your you. today's Thank Thank conference, you may lines and disconnect This for your at this you

NeoGenomics (NEO) 6 Nov 232023 Q3 Earnings call transcript