NEO - Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the NeoGenomics First Quarter 2024 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, Holly. Good morning, everyone, and welcome to NeoGenomics First Quarter 2024 Financial Results Call. discuss Jeff are Sherman, to Executive Smith, today and Officer; Chief me our Chris results Chief With Financial Officer.

the Chief simultaneously Harris, Counsel and of including webcast. Ali Olivo, President members management Development. This President, available and are Additional General Vice for of Warren Informatics; Stone, Operations call Commercial Chief Melody Business Executive Officer; Officer and team Q&A, is being

our Starting to We regarding our to anticipated posted made you results statements our be could speak statements future referring and forward-looking based a or currently events Slide XX-K, ir.neogenomics.com. performance. reflect to most judgment factors the our date known obligation results during website Investors the on differ actual call forward-looking forward-looking any from these we SEC and The of statements. will to that factors filed make may been caution best the identify materially. Please X-K such call, undertake slide to cause to this no that We and with and of of other important we has us our actual that during on or only original risks materially the revise refer tab at will that recent to call, the as on XX-Q update differ X, presentation Forms statements. this we statements

Chris of the are refer required performance, presented to an call, and provided GAAP, greater certain by turn press financial I comparable financial to on of Officer measures in GAAP operating to measures non-GAAP a regarding we considered non-GAAP non-GAAP available Smith, to issued financial not to call The are be reconciled by measures table be should in this to other the financial this measures During release referenced order measures companies. Any will considered measures should provide involve results. liquidity directly to to GAAP non-GAAP comparable now alternative NeoGenomics. most Chief we in the Executive unlikely our not morning. that be the financial adjustments transparency over this call financial measures

Christopher Smith

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

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

Neo patient Our financial mission save the we a And many results, into to single at make to by so I thank every want just to for is teammates lives improving difference get our they in lives. care. do day patients' everything before

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

delivered As cycle over revenue Services $XXX quarter you volume see, revenue management approaching of revenue Clinical adoption effect products. by driven commercial to strong including of execution growth and strategy enabled compounding XX% of XX% AUP our the can The NGS we of primarily revenue. and lift, another clinical $XXX of growth, prior increased to initiatives, XX% now increased NGS is million XX% total million. over an growing year of our and

tougher become becomes in and business, pharma over will Diagnostics the sector declined margin X% accelerate progresses. revenue a NGS in by our larger year, of the the and due as rates initiatives base growth portion comparables from conditions macro part year XXXX. optimization to As Advanced prior

million. last gross positive adjusted $XX or business, a improved over $X XX% adjusted million As a million, XXX% year profit EBITDA to up to of $XX was and QX

forward. revenue, improvements that and noteworthy the first will seen quarter. Now sequentially for very the We of consistent as the adjusted quarter EBITDA. solid we've quarter growth adjusted is XXXX momentum trend expect X. total revenue fourth with we QX, year-over-year from as the increasing in pleased in foundation fourth and seasonality in Slide of move we This laid that industry profit typical gross the I'm that XXXX especially we've see believe since not actually on continues a continue did

call, business, our culture. and year our move driving On full our advanced laid we value growing X. out core accelerating the and Slide strategic enhancing on diagnostics, They people priorities to creation Let's XXXX included for profitably XXXX.

people X are are their to engagement. enhance greatest morning, and Our each though, teammates to we a we on and our internally devoting asset, centered going Everything time mindset and development around our I'm developing care. This patient improving financial teammate show and priorities. dedication focus to resources our do growth is day customer-oriented

manage will best-in-class is mindset. Earlier high-quality revenue support and to promotions another in our have roles, new their Informatics improvement their have data-oriented Pharma our contributed growth, to mix strategy, and that has to optimize actionable the drive Neo's as operating delivery our growing improved strengthen will modalities. focus I'm products our core Chief menu and efforts of grow higher-value volume settings we yet NGS, enterprise now Warren growth commercial in treatment all see leadership ongoing to execute Chief increased To and across of clinical The continue President as on Melody continue the efficiencies. performance clinical and is exceptional we strong clinical our teams now through the AUP properly of shown Clinical to in responsibilities Neo's business and towards and will as Stone continue test and commercial per operating confident Warren well has synergies and modalities Officer month, well operations. in our help commercial expand, and is growth we we tests value Operations as this Melody mix. As improving oversee in part on Oncology, decisions test. Even this which the Harris acquire, as we real-world deliver Commercial of the differentiated protect, quarterly Service Officer teams. shift volumes customer-focused as lead all with structure. leadership breadth that win announced and supported senior

to now As to Warren. a Informatics as be we We is is a growth. R&D legacy result believe that me. for on turbocharger of and remain pharma focused reporting leadership, reporting Melody's report these now innovation is business changes, under R&D will the now

care and and we to MRD health Specifically, several to to product believe pathways providers, we're committed that. accomplish viable offering we patients an have

the we our well impact strategy quarters, commercial pharma challenges commercial under execution leadership business. clinical over macro on and business several Building the as Warren's in As leverage the operational trends and strength integrating pharma to in success seen our our continue the the noted seen past go-to-market are as the revenue. we clinical organization to

as our Warren's and are pharma expanding sales benefits in future. to We the see moves leadership it initiative expect from its under organization

performance. continues to margin increased efforts revenue and grow continued our offerings. have addition, gross we look drive to as ADx optimization in In margin expand investment product improve to adjusted Informatics

We comprehensive including of continue in innovation in profile a of to liquid biopsy focus our XXXX. R&D, late on expected test new genomic launch the acceleration the

while is will solution, on building opportunities one Solid perspective. the our space. We kicked in serve our our from which we remain as focused Additionally, Tumor times. late of providing new will panel, on which a driving development one largest In digital clinical, into creation next-generation market operating enhancing project additional end-to-end Neo this to value off consolidate for We success will panels pharma of XXXX, efficiencies. of Comprehensive the that on believe panel large the we the LIMS financial the and broad CGP transformation turnaround informatics solid systems strategy the industry-leading the foundation fragmented be on X.X, focusing growth targeted while provide are tumor NGS

driving automation expansion are in supply gross and We investing optimization. margin through chain lab and

prepare regarding as products final We to lab-developed services improve ruling also tests. to the company the continued oversight. Yesterday, of its regulatory regulation our to invest as and FDA in our well quality for increasing programs released

we're Our those approval including broad expands initial reduce discretion marketed that from favorable business. and the to we A believe FDA, currently XXXX, appeal the favorable Court hearing Carolina by We've on March is tests X, New is RaDaR injunction XXXX. Circuit before are rule the the positioned would trial our The of jury held are we well anticipated preliminary with XX State. to May premarket is increasing we compliance. LDTs the defending a the be of rule. From to RaDaR should and that comply the vigorously technology. legal The This been regulation, perspective, view York Court, not is was to March the and test District preparing and cost discovery, North awaiting for get in the our case in required scheduled menu that rule Federal approved our to for against is enforcement and significantly outcome.

Jeff? detail. to U.S. to the the our and filed Patent seeking at Office patents Jeff that prior financial Trademark in unpatentable will results also first call now review in issue IPR turn Natera's quarter I determine art. With the that, are view X petitions more of have over to We with

Jeffrey Sherman

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

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

million, XX% by Adjusted XXX% leverage tests value improvement in was a increase was revenue year to revenue of higher the and clinical increased to consecutive marks adjusted positive and the QX $X operating growth. quarter mix our business by sixth million. that continue prior EBITDA per First test a shift driven quarter revenue over generate fourth from and the growth cycle we year EBITDA as improved test higher driven prior than improvements. revenue growth volume, from XXXX. Revenue continuing on to quarter $XXX year prior significant in

growth. helping increased growth XX% Clinical in to force, over X, sales of increase drive improvement our adoption Slide year, volume. volume earnings. $XXX and million continues higher Services drive of optimization The per growth of of prior strong products along be at in driven by with and an NGS revenue XX% to increase our revenue was is test continues Looking a X% and an the to NGS revenue

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

clinical NGS drive focused to with of and of our portfolio approaching ]. team a total As past, and growth. is XX% accelerated we is oncology shared accounts in priority revenue of NGS our our The the adoption higher-value revenue existing new strategic sales you efforts penetrate [ NGS and

of Diagnostics Turning the pharma XX. contracts. Advanced and the low-margin is to growth on spend revenue our The well continuation decisions prior of global performance macroeconomic gross adjusted and to margins a a as sites Slide result and increasing conditions QX as profitability year. X% over testing with year and driving gross prior declined as XXXX R&D margin and in profit focus ADx, rationalize versus in

Looking income of XX.X% increased year. over prior margin gross Slide on was last statement the adjusted basis by an XXX gross improvement XX.X%, at year over quarter points profit of XX. the Adjusted and first

and expense million. G&A marketing sales was $X.X and driven over our commercial $XX increased primarily and as $X.X litigation costs increase the as to million Jolla, expenses, being this the cost for million to costs by ongoing adjusted year legal expense quarter. operating as added Natera nonrecurring R&D by La costs continue related closure associated the California. Regarding expense prior closure with as to in the we lab ongoing investment, related the are EBITDA to the was of lab back litigation The items well in

Turning of to securities marketable the Cash XX. on ended operations and from quarter sheet We Slide prior balance first in year. by QX flow $XXX $XX the over million million. decreased with cash

first when annual of largest paid. quarter the The typically are quarter cash is use bonuses

to by approximately struggle collections manage breach in and to payer payments. Healthcare quarter claims cash our the adjudication and hospital million impacted data due were their addition, as Change clients the In $X

We have this second some shortfall quarter. started collection the to in recover of

cash financial in on May flexibility liabilities XXXX. These a our $XXX the to position address of our become gives notes sheet with the maturing million convertible XXXX will current us balance second quarter. notes, in balance strong Our principal

is Given profile, current to existing marketable when to our and convertible our notes the mature. retire they XXXX our cash liquidity expectation securities use

could evaluate capital strategic which ultimately impact our However, we structure decisions. starting to are opportunities, M&A

turning XXXX on expectations to Now Slide our financial XX.

$XXX of revenue, the for achieve year. I from continues improvement at revenue are end the of our growth, be back million. million Chris XXXX EBITDA of and $XX earnings representing positions the his to closing We expect million, goals growth In full $XX adjusted reiterating QX for million year to to XX% $XXX and us to guidance turn now range well high and XX% margin summary, remarks. it to will to the

Christopher Smith

team's in progress, proud improvement significant Thanks, Jeff. including revenue first very our growth strong quarter and adjusted EBITDA. of I'm

teammates execute are R&D through saw priorities. we our investments is while the and I'm well cancer addition, to the on FDA the well our to customers, believe serve information all, excited we'll leading for on patients our becoming our rule we your still open initial for execution favorable in we progress most labs, our growth. we organization strategic on and way our of have of it read time, us for final questions. position it's believe meaningful testing Thanks we In teammates, our decision And basis. daily early in to days, the up business. the the and We now next commercial support but and company. The made on for stage a

Operator

[Operator Massaro with today from is Mark BTIG. Instructions] Your first for question

Mark Massaro

Chris, congrats quarter on the QX. strong in

RaDaR at? the or for what us the maybe to heard yours. So participate looking a that outright sense could us words, marketplace. so speak interesting to I you're evaluate heard you're in valuations can in appears market or make some can maybe It And Are looking one seeing M&A to for just all-out to are not I about then And that are sense MRD my then think the litigation? And potential you your just about acquisitions? starting another. you're some types commentary give of give opportunities. an partnerships things way depressed, -- sense. that you at Those pretty you're a you I But me confidence planning maybe acquisition

Christopher Smith

I'm Ali Counsel General she Yes, and because it going our also BD. level, to of leads it let hit take I'll at high Mark. then is but kind

really really is hit house to along, it. be going rate, double-digit months, getting faster well. all that can first she internally look, gone delivering wins very So on and board. the about I we the we're the that But on think to improving focused a in back incredibly And order the operating put talked XX earnings and growth does at to starting and that's XX

the believe being interesting now help we are opportunities for that there grow. our company of we some vision kind would to think and I mission think that said, strategically

start took of on the this. We've just role team year. so we -- the to beginning a brought there BD -- And to out Ali on of hired built explore

of we think uniquely Ali, But touch because an I about want right, very perspective. little a how you as do we're definitely this to the about diagnostics reference talk opportunity, oncology [ BD bit just lead see ] a kind and on really to that So we're think and business, feeling more we legal testing from positioned here? then inventory

Alicia Olivo

backwards. start we'll guess I So

see One litigation, alluded against well the our pathways to as prepared district by So were IPRs there's that asserted court Natera. kind that the via we of as our matter X obviously both are in that remarks. is and we filed patents that

activity licensing, tests, The It and be could many the transfer that a these depressed. R&D other It with can tests. And -- M&A. in MRD valuations acquisition. of take certainly is you're take also could being right, our tech things. continued including our are And It all could then of development full forms. third

pathways of And so them. are all we're all these of evaluating and viable,

Operator

Puneet with from is Partners. question next Your Souda Leerink

Puneet Souda

AUP great continues had. see to first so clinical work. on really to beat Chris, you that one the It's

came as number, but So ahead not us raising year well, million believe, of Street guide. congrats the I $X there. in and But full the you're you

just the to So pharma are know the side? moderation? Is we're things environment. on ought if seeing but it consider? wondering is that on about the pharma a clinical on that wondering weaker what I -- we the business you some just side, pharma talked where or Obviously,

Christopher Smith

level, -- a hit that operational of about the to it, of did would say look, of let kind into strategies issues business. And just but have me kind And Yes. detail. to Jeff Warren not roles on think kind sales also I grew force pharma that lead in I'm to and the you in implemented able lot around a of we've being getting But I from challenges look, but only going we've in talk pharma, high some well. some our macro the clinical significantly and key perspective, call kind of strategic and optimization bringing worked in go-to-market that. Millipore at that business, over up business, hear Warren

think the comment. half of year. as a make let guidance, difference And to me far kind in let so we the as going back of Jeff that's specific But

Jeffrey Sherman

initial think remind Yes, we out Chris. everyone annual the started Thanks, couple so Puneet, guidance. guidance, giving performance, started from our when our months a as consensus when year, was sure. QX than year. million we looked of million would at we're higher about we of we we're $XX only ahead at And over guidance our Yes, the looked $X QX. I in as I consensus

the But a that's and we've from not teams strong clinical particularly slowdown to so a so give it QX did seen, we the on pharma sales in see we our little we a business. think just do side. I standpoint. seasonal the We that prior commercial execution and commercial testament So put the team growth Warren, get arms under seen his had execution we've the at in time also look around have Warren NGS to typical years, to an want

We adding reps have sales as well. there been

last I ADx So a our has challenge been as over happened of couple situation. the quarters what's macro expectation overall is the as well in of more think

to quarter. his and the time how we exit arms around the QX, And to we'll we'll guidance Warren want performance we get give happens in as So reevaluate second business. look

Puneet Souda

products see the -- over round Got despite the playing at the a FDA of you out? launched, on majority a talk next it's how the the That's years? approval LDT the though about thanks helpful. just be follow-up FDA thinking is I your think and to of maybe rule. cost And those, next tests mean you how you level, this when yet you for And it. us portfolio great to rule. When quick do comments, protected regulation the Chris, implementation about for X the just and to then LDT high raises you see X it that to here the is through the process, to are go cost? think Do those even process FDA for

Christopher Smith

Yes.

think very ruling favorable. was start I look, the I'll So saying that. by

also say aligned that, think of that we're it's just to kind believe medical we devices. ACLA, member a we're to I look, and Board don't

leadership see come we'll as business, regulated cost the that we environment. everybody the FDA as that how on so And impact things unfolds. brought is as to has But one a a of did that far from the we and team

So the ] in only person that regulated. runs QRC up [ grew FDA

in months ago systems XX we place, design products. probably So control new of putting the started and including

that that are we've got running now process. development so under products going X process. And been that of are key through We've through that kind

And so business. it, while There associated can significant we we manage won't the be change to day-to-day manage there's be with or costs our that definitely going a to to our outlook be to able business. forecast it believe in

Operator

question next Your Brennan Dan is with Cowen. for TD from today

Daniel Brennan

Sorry in you're speak just and look there, and okay volume bit little of It the price clinical core and wondering, maybe Can Just about saw kind the you ex out beyond. you of are that. kind of QX thinking as to progression results the the like looks about what guys quarter. we a into NGS, business? how

Christopher Smith

did in kind can so then Yes. you our but mean, Jeff remarks around Look, of modalities, detail. mention of let prepared I kind piece in I I level maybe the and did here, more of maybe the that specifics in it, high Warren all Warren's give we grow

Warren Stone

over-index we all across it the that account said. of that across a to was strategy grow of on benefits the that. fact from across And we sort And And to perspective. Yes, we're penetration broad-based we have in customers sort the on from modalities. sort and United as all based the on overarching target be we from above our Yes, data, strong modalities. the of market account of sustainable. certainly. really because [indiscernible] the ownership, of commercial of our of feel, it's that relative that that sales importance States, But continue speaks that geography to multiple Dan, perspective a feel Chris Thanks, we NGS a volume Chris. strategy our QX seeing does and should

Jeffrey Sherman

quarterly tends Yes. perspective, of And to in QX are similar finish kind similar our expect ramp of in a then stronger softest And Dan, and we QX I from is think QX. a quarter. generally QX, in It a the would range. revenue, I year flow

XX-month a our year. Yes. we expansion we expect guess clinical probably where sequencing So thing And of last the I this went that, of the period, organization. performance would size remember, field through over on doubled similar field Dan, a I an

think get business, really new I so business. sales processes, this it a time X what you it's flowing in X to And does from of perspective, new customers, whether months new to see products, take grade new and

And feet kind to to benefit where I right got that. the think significant. we making to think have call opportunity the starting of is coverage evaluate we're because of that we the the continue And I we street, something see a we've is what point so amount to of it's believe and sure on

about And capturing so it. it's

Daniel Brennan

sequencing And maybe the one just follow-up, just side. on

test. the So liquid

anything into the fourth timing is is know Just So what 'XX. of a Like baked that a it's of in the that? more that later guide color perspective. from kind you on I being any impact quarter for said event?

Jeffrey Sherman

any material expecting this Dan. from that revenue Not year, in

Christopher Smith

year. Yes. late in It's late. the

Operator

The next is William from question with Blair. Brackmann Andrew

Andrew Brackmann

a I provide initiatives for that with And Comprehensive, sort that or product that success a Maybe seeing sort on any of accounts guess just in. of over on line? scale you can we're just related of rate the year business you to what lot give launched us a since I color you and really of uptick cross-selling product. that, Can it's sense Neo been just maybe think

Christopher Smith

in NGS. we've kind a very tumor, have Yes, share. would we Andrew, we're I'm going low remember, level, a a solid to I'll But the about that this take But leader heme double-digit lot Warren of and a to in from from talked it get then market perspective, high detail it. let

kind but knew Warren we have more. let me launched that So product, of give we that maybe when

Warren Stone

Yes.

in for there, correction share a have we single-digit Just tumor. low Chris, solid

You said double digits.

Christopher Smith

I am so mistaken. sorry. was I No,

Warren Stone

CGP product tumor this and in upgrade launched didn't had And is ] we done low out, we as in there the as one the reasons tumor. share well. solid single-digit last March panel. solid correctly [ on broad we've this pointed why late have have single-digit we of in year, And you We effectively of an

continues and to XX% strength of of very, we're into see areas. coming that of sort comes And across very our community tapping the the we favorably. lies estimate of market hospital penetration the side things. And the opportunity X within balance area Our Obviously, it potential evolve is the We in from hospitals, opportunity. the oncologists. of

they're but lot robust where about independent, space portfolio. within affiliated, Sometimes well. We sometimes the to the have XX% we have growth of see we quarter-over-quarter a ultimately, opportunity because in grow NGS volume that's a [indiscernible] today. growth of And in spoke largely they're one to terms that lack in the as is driver community this of earlier leading space, oncology for we of underpenetrated

Operator

with question Tejas next today for Your Morgan Stanley. Savant is from

Tejas Savant

maybe So off, Chris. kick to just things

your test about to XX% Three It's expect you raised call. of long-term years You targets today. terms revenue? NGS in where your to on mix out, north XX% be last of do earnings clinical the

given growth targets, you're mix scenario essentially XX% the over MRD on course mind Just an where long-term those seeing ex NGS could basis? is of there the your be a approaching in here,

Christopher Smith

way. and products launching that we Well, of you think line you it, other about will the you along when over the talk be it look, think Tejas, time I mentioned,

So liquid for example, be going this about product really to that we're launching. we're excited

see XX% have we believe the and that that only we market runway think I all is on I data we to in NGS So come there'll but is that question, XX% XX% ton be of probably growing year. the a penetrated XX% to per new mean without products NGS. will in,

that that will will panel, our even of that, significant next a make will the large be out in we as I And so a bring think get we share we think think that that growth. And market. we product impact our

starting So say base, I it's especially percentage-wise, to our competitors. you, low to we're tell but compared from a would hard

business NGS you look doing these at Tempus, of at double in haven't just If I companies you probably digits you and high high, that solid, look their and are look been. are mean, Caris. at Foundation, we

So we to lot of continues there. think be runway there a

Tejas Savant

there informatics on your informatics, formats, Melody actually. note, whole et offering. on your thoughts curious And And the genome past moving updated cetera. of sequencing, you've or monetizing it. to sort as exome, talked related of follow-up towards Got in just products your somewhat perhaps, I'm a better quick Chris on more a data-intensive whole

an build and you As that's those tests? to additional infrastructure analytics needed to the that of you so trend in level for investment back-end forth those direction, envision support of do kinds

Christopher Smith

I'm Melody she's officially, of need them. like detail for high Yes, into believe now that But to in let it going I But level, look, the weeks. there's are especially markets get kind I in X think invest growing had digits, to with think, only these remember, you. we that double opportunities, we

has I grow to double entirety, our that that is think the view think we the it being portfolio digits. business in we talk ability about

of me is we invest on right no product kind amount, Melody to more to where around some strategy. our color other that. it think kind give And you that if of different Informatics drive growth. can But we to and we has I so businesses the throw think than let of do with And some that,

Melody Harris

Yes.

So but this learning, I Tejas, weeks at feel been do on quite so project, I've X here, it opportunity. just a and we looking bit have of

system, those in We the get for liquid that of the of analytics pipeline. such is underlying products structured product the you biopsy, as are mentioned. And sequencing, a the genome with only the our lot back-end we now, back-end have system with new really magic LIMS into with offerings, transforming whole data that we

so monetizing that a that And that, already for which infrastructure building for in meaningful we're then purposes way. for also of lays us the foundation

that means new And genome this the data you oil and coming more so from have whole if oil, think biopsy. being liquid about going we're to sequencing production

those the So product down and very new what that excited road product the team's means from for offerings their about that. then

Jeffrey Sherman

we investment to perspective, are continuing efficiencies from going work towards different I capture margin savings that. company And and think the gross an throughout streams have several and

those well. and like things of part R&D savings, reinvest can as into informatics So we

reinvestment some over growth So there'll years. some that, quarters that next profit garner there'll be from operational be efficiencies of couple and also from of the we those but

Christopher Smith

things obviously, of about perspective, for that's us cost speaking big a multiple LIMS, be lot And an and talked going systems hard have aggregate from move is onto create scientists multiple very data LIMS, that a we've all Yes. to turbocharger been data we be platform, systems to informatics to and one that to the the growth. savings LIMS that It's able needed. really the the informatics but on from

it almost the to project, that. as R&D It's So going about think LIMS an create informatics. for campaign

Operator

is & from Mike Company. with Matson next Your question Needham

Michael Matson

on Just the patent litigation. one

So XX, And the the with of the just next is on guess, March is this hearing expected what's that your on timing decision? what I And decision appeal? it step?

Christopher Smith

that. I'll let Ali take

Alicia Olivo

Sure.

So what decisions it's typically various injunction. precedential in X take including on whether dissenting factors, a was appealed the of to months, if depending there's nature. the judges yes, preliminary opinion, X sort who And are, was

so -- about month And we're we out. X

visibility or And the so X timing has precedential other really we dissent. greater being X if have a into generally months X don't with than months, the to it's

Michael Matson

overturned? Is sell the this of -- biopsy with how test, then the you RaDaR? injunction that And you mean, this the with new prior does fit kind that get would of you liquid RaDaR preliminary both that X.X? versions assuming I test Okay. something Is mentioned, the

Warren Stone

that liquid it's we're a the biopsy. we're concurrent So of to latter CGP liquid relate sort launching, tumor doesn't we're offer test liquid year, that opportunities of solid testing part launch pan-cancer to MRD. It's looking so a It's liquid able with the to that it really test. and in -- this

Operator

question with next Michael Your America. from Bank of is Ryskin

John Kim

John Kim on for This is Mike.

the price the at I to on looking mix. EBITDA mentioned of ask and you'd so You the that the be guidance, end actually adjusted wanted higher

think I is what that last that increase in I guide much and And XX% the talked wondering I what note you this in to upside AUP that any revenue and but about at your sort Yes, the seeing in previously at this related contributing NGS improvement AUP year? you're know and of it's a left expectations. how opportunity, that cycle. guess, adjusted multiyear than talked had looking change quarter. of you've more about you I'm the the was if quarter. And looking EBITDA, XXXX

Jeffrey Sherman

Yes.

question, XX-plus of increase. And the AUP the so of to percent terms in NGS continues drive pricing over

And trend has so that continued.

of cycle, revenue initiatives have that under I a terms umbrella. of we lot of mean, In kind

management to historical of tests We your have is of revenue We're single kind consider under consider what falls tests kind larger well. we denials piece. there. and kind panel that what from billing collections, as initiatives having you of success panel cycle There conversion of would would

policy have then And as well. movements payer we

and kind for So then to as that's to pay, time there's aspect getting going performance rate finally, state and seeing passed, legislation biomarker get so long-term us. the take matriculate we're through favorable to continues our increases. where -- rate payers to of That's

there. think and patients. would good I that sure their a that so the any see we're to improvements seeing we're across And say capturing progress still so opportunity going improve of quarter, getting and we're continue the continue focus our don't of we more And kind I on start making to I really of clients opportunity the been particular one to getting doing, multi-year -- we're work see or where is, really forward. end And success lot the all to we that's delivering paid of has have those. They service of a for value the

John Kim

Understood.

financial force further, doubled under team? related should now the that transitions to commercial what statements? additional Warren, sales of is it, to think -- this talked to Is about team the sort that the about to expanding as going that of impact investment have going in you've And be sort how be and it on we

Christopher Smith

do our look, of the are into our year guide. strategies Yes. we into I would this are so built of would built guide, say, already that all investing anything kind

Operator

Your for next today Stephens. from Carrico Mason is question with

Mason Carrico

this a do directly, what for color to business previous a more the needs some there? question, ADx And still it if think about ask get is of this line overall, that that happen level business grow gave in you on can to And to double the but digits? to so, time believe to You you how consistently growth? return

Christopher Smith

going we also said, things I of can the to I mean a think bringing that from are strategies tests optimization think think, help market, make that we've significantly. newer couple I And Look, commercial that perspective to the business believe some place. on -- got sure to I right a double I we grow But digits. have we're that. being us think in I Yes. of do that

broad big So be getting well the to biopsy. there liquid largest while I panel, going is think is one on Comprehensive if our largest, that's as impact next-gen a out to market, X.X panel not the Neo as a going of the big have

new group, one the talked talked best-in-class a when Warren, I when force. force products. And taking is, clinical sales look, clinical of optimized and at we about them sales presenting think new the look came bringing and we were And you I So lot these is the we the optimization. the business, in about think we then other below as with products pharma piece in things

effective got was clinical things on XX. And scale, the lift probably sales a scoring were what, lot about, that we of I say well to Our Gartner we've XX force side. below the on would

that not financial on seen I that process go now. those we're results. say just side, You've and did would through pharma we beginning the

the allowing to same around I it. But arms there. understand of his kind this thing So think and business with Warren market's the get

it's is question strategies to going to market in But right there, be the the going. the fair, for it is is quarters not do to us to So to it. execute whether put question take get and the

country we global gross looking those on financials make but closing that it customers, of and or growth. underperforming of growth some out and good profitable getting to think that, the margin and the the around I loose moves optimizing it's about strategy at cutting now the especially around sites did back some

Jeffrey Sherman

natural a structure And under pharma relatively the have over and will really support this I that point sales have new there's also think well. come the other last I there. structure, of we that for force comprehensive the the think just has as on of side available ramp component built we couple a is so then of side clinical the sales now quarters, be on think I the Warren

Operator

Matt with Goldman is question Sykes Sachs. for today Your from next

Prashant Kota

but Prashant on then digital been of are your business? in And the sequentially pathology for This is could quarter, how about to for clinical already, Matt. despite across Lots thinking you revenues increase have in this much seasonality? winter have attributed been testing investments clinical erosion how volumes covered

Christopher Smith

So it's X questions.

Melody do about So bit a first? I'll you give the talk second to little want one. that Then

Warren Stone

Yes.

commentary, in we is didn't I meaningful margin there our see patterns initially from in actually, think a mentioned demand as just perspective, Jeff And a change his weather [indiscernible] in quarter versus result, X. large what as in a phenomenon as seen X. necessarily see And materially dip have year, this we quarter it as a seasonally we but in wasn't different. year maybe didn't last

So demand our define all we saw as the first across quarter. what would I of volume clearly robust modalities in

this? take You to want

Melody Harris

have a vendors Yes. and really not On today. production couple have AI circling some We we're do, do menu. employ to But at pathology, H&E digital digital do breadth scale, extent, a of initiatives. that our other to marketplace our of internal of it the digital full the we seeing path in methodologies level

ways trying that we we're production full-scale a that together So to figure out piece method. in would

far that pathology and that. quite as there as higher pain solutions, we've board, today, today. the they're across opportunistically But it of out don't points digitize see some done So the digital in we yet taking

Operator

Andrew from with is Cooper Raymond question James. next Your

Andrew Cooper

maybe but of MRD has already pathways mention you could lot sort go and the different been A various of one more the down. on asked,

high-level Just where of faster, time through the IPRs if you potentially with the going the from to the versus bit maybe could something how think even perspective. And starting those would with in thoughts XXXX, end cost line the more. love do you about another a kind value seeing little route it time trial potentially of of that of the underway,

view. those help the as a you what think from next should Just about MRD you step be balance us portfolio think to the add of how things about to commercial point

Christopher Smith

we confidence the IPRs, I filed that's good through those because radar natural kind the through strategy legal think this have the see now think those in steps, if a Look, I lot overturned. get the are of can under do especially I think patents because a going question. to of but all it's and of gone we're we

the I so lot, RaDaR think on we the like started that already perspective, technology had from And RaDaR look, team a and next-gen a product. working

being that I a team that be are there cancer And evaluate other options a think think we're we that So that But path. NGS tests, to I and lot abandoning I think will our it's part. the think look, over needs projects -- Ali be her looking tests, There's ability from early-stage companies of our out our ability know there. But have innovative not we on at. said, product one big perspective. that is sells I that we're company a multiple MRD technology so to of a just XXX prudent interesting and

would So look, that. we do I think

getting I to lot timing, think As as end look, got the of reimbursed. of day, far still that you've the remember, product a at is not

coverage, I deep the done there good companies And lot colorectal, whole a very getting job pretty has are Natera not of a look some if that of think still but at MolDx cases. we help and those other are rate this good think still you next especially and it's it's but industry, from is perspective. But from market bringing to in adoption, will faster early or -- payer such which year MRD. only days a market X, products the at a grow the so in

ago. go about NGS you today, with years almost I only NGS, penetrated. And XX% would back XX%, like think if XX it's is

So being about cancer prudent to that a this with it's that we gain we the making with sure going have important to believe but that's be be think also multiple going is MRD, long us, company, leading in we that and opportunities. being to

Andrew Cooper

more. super That's helpful. Awesome. Maybe just one

in the sort then there? you'd versus sit degree that precision of and can term of you commentary, numbers call In us points end where perspective a terms of sort of the sales to year from those numbers in like some or just to the maybe as long change oncology ADx versus and there's well of remind force material where traditional you be

Warren Stone

Yes.

of authorization on side. said we means more sort north a Chris earlier, if which of on months, the of cetera, last force allocation hospital. the as core doubled the remaining clinical XX an sales ultimately now XXX we of traditional point on the XX% have the with apply, [indiscernible] pathology we've our now that's time, in So of focused And roughly you is XX% think roughly force et the community that the setting, oncology sales focused with time in

the things. really of the breakdown clinical regards with that's So side to

around I getting make there side pharma the targeting have necessarily customers. Today, our going my to is not think I'm traditional what commercial us investments we people than it. to arms real And XX pharma investments. opportunity less On things, of for within call but a our here, just organization

that. drive to strategy a opportunities much is to support deployment -- more and sales there sales think sophisticated I commercial

think wouldn't about efficiency solutions this and think transformational about will I this much and that as just of drive So more better to cost reduce serve. BDs. different number would in a manner scaling a I

], we're X So a investment's probably but little me the bat to [ weeks there, I for of out think early comment.

Operator

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

Christopher Smith

And everybody, for Okay. with the to up catch thanks much, Holly. time Thanks so us taking today.

you to continue strong with As Thanks, quarter. make, pleased catching look we care. talked to and about, and quarter, was we the we're it forward a and that progress with next up we'll take

Operator

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

NeoGenomics (NEO) 30 Apr 242024 Q1 Earnings call transcript