Earnings call transcript Q2 2023

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Operator

Good day, and thank you for standing by. Welcome to the GeneDx Second Quarter 2023 Earnings Conference Call. [Operator Instructions] Be advised that today's conference is being recorded.

I would now like to hand the conference over to Tricia Truehart, Head of Investor Relations. Please go ahead.

Tricia Truehart

thank call. everyone and today joining Joel, this on you, you for to us Thank Truehart, of Tricia I'm Head GeneDx. Investor Relations at

On Katherine have Officer; Chief today, and Officer. call Financial Executive Feeley, and Stueland, Chief Kevin the President we

website. the slide Earlier XXXX quarter on deck copy the are ended results our and company's A of press XXXX. available second release today, XX, second financial GeneDx of released for June quarter the earnings

within the Before the I'd statements will to make which you laws, remind safe of statements the to implied management variety of we of future Private differ statements Reform results that meaning in or may a are Any call Securities or in expectations due begin, from like XXXX. provisions to pursuant securities statements. to federal predictions events, expressed Litigation forward-looking made of Act those the Actual contained materially of forward-looking or that performance this factors. relate results are forward-looking harbor

particularly guidance, savings of and the and cash our and uncertainties cost next expected Additionally, over these involve a our burn, XXXX several profitability assumptions. for forward-looking our revenue reduction gross and financial risks, statements, years margins growth, number expectations in

GeneDx's SEC. the within latest risks description documents time by please and a Commission the with Exchange associated and to XX-K For Risk us time the to other the filed list and filed uncertainties refer Factors with Form section of from our the business, of Securities and

We And are estimates only guarantee and performance. of a that urge should considered you be consider should these to these factors. statements aware you not be future

measures. discuss may we During the call, financial non-GAAP certain

non-GAAP our Investor information these as and materials earnings the measures, of financial please the to measures For measures other to GAAP regarding section website. in well release other our refer Relations as reconciliations financial of

XXXX. or or any by information except or accurate financial to is update forward-looking statements, intention disclaims today, live the broadcast of time-sensitive as revise new August law, call obligation, otherwise. as events conference only required future of whether GeneDx because contains X, any This and or projections information,

will I Katherine. that, to with the turn over call And

Katherine Stueland

Thank you, Tricia.

and our becoming on one, Over year, two, utilization by flagship this measured our most exome; measured improving company driving the of driving and efficient increasing course our by has by clear get gross cash profitability and of revenue the X the been sustainable COGS; goals: team by company of to team growth focused us building while phenomenal three, margins increasing a reducing burn our way there. reducing to

a QX. on on month this We exome in goals, the and turned We pleased important corner in we that are of first we our the doubled I'm down focused in biggest saw share result the direct relentlessly quarter. June, critically these strategy revenue is and that to conversion history in

volume tested, of we and the quarter with patients million. to this XX,XXX XX% test to specifically, increase XX% testing nearly of exome increase whole Revenue genome the a this year. saw in XX% compared genome whole compared increased exome year-over-year to first from year and this and first More quarter $XX.X record-breaking quarter increase

is growth the that as serve tests well way on pipeline us on exome. delivering our to strategy introducing a performance on our What and for a strategic of that team balances tells and second quarter of use exome expanding our is the centered our use

menu newborn life goal to the every the beyond going While from all inherited to backbone an stage of as expansive exome testing is get our disease population for today, our genome diagnostics. to menu screening test of adult and test to simply is rare optimized cover diseases,

XX% stepping is genome gross two, rate that tests more So called our rapidly; the than generating business, which growing I'd think our and you broader one, encourage X to we've in margins about and of and parts: today business business. critical growing diagnostic These entire we're odyssey genome stones that momentum to of an exome to our and goal achieve directly and enable tests gaining the patients, this putting the our market. are for pediatric and growth end exome of

We've had a great quarter.

on And continue margins, test our our strengthening shift physician working. sequencing financial our we focus to and mix is genomic to accelerating Our outlook. gross conversion

to expect the continue guidance previously XXXX. ramp our We $XXX $XXX announced to year through meet half this revenue second the to in of million of million

the as better is which our our Let's turn and increasingly commercial business. for better disease, which with recognized to patients testing genome exome as strategy, rare well accelerated has as use patients in being of for

call, discussed our working actively As initiatives this through during earnings cross-channel we're last build momentum. several to

and outreach new development to focusing product launching and of to teammates turnaround our marketing and experience in in aid variety efficiency, territories customer for These results. commercial to investments and physician of team efforts on automation a including services improve cross-functional include operating engagement. also the time shortening dedicated educational include and We're

and value to geneticists the exome importantly, by societies traction demonstrating continue We to research contribute significant tests. nongeneticists, by of recognize this gaining we're this Through and patients. with the amplified payers. exome of clinical strategy, medical who sequencing work is both genome and for And superiority

a include higher-margin an foundation CMA for what genome superior, as us tests. FMRX well and important at clinically such and stone product we as multi-gene exome tests standard practice. to These execute important growing strategically faster non-exome long to panels stepping rate a that switch as is than volume been panels call Exome whole lay tests, have which

exome Encouragingly, utilization markets this growth segment. productivity also of among going clinician XX% We've we've up clinicians to is among in and been demonstrate by fastest June. neurologists, in customer services and we pediatric ordering pediatricians gain largest of types. made who our seen proportion in increased able new We've XXXX, ordering expand have new the can

and have have than our the market at ] States. which and analytical more full [ XX% we clinical of support a diagnostic And report. on Based genome data, speed in exceptional reliably claims United exome come share on the rely recent we can to expertise, and physicians provide

variance better strengthen and which physicians to also understanding and product interpretation capabilities leadership more AI. in by variant mapping our our of such as with a and knowledge regions discovery enhance certain unique These our patients. tools a -- precise the continue noncoding can of genome, and also improved and for genetic provide diagnosis We building leveraging we are better database

To who Icelandic are in our accelerating we to improve have spent and recently this, interpretation continuously pioneering of clinical enable already They team industry, engineers, at decades a genetics. acquired including the platform. welcomed work deCODE work our

we're reimbursement in also our on to care on in standard And provide new and improved As payer and policies patient pillar a capitalize medical focused our leader of the to is coverage. this another this access market, navigating commercial success. strategy

Medicaid covering And sequencing. states and recently, genome the outpatient whole inpatient in sequencing do whole eighth momentum becoming Arizona continued and with states XX been so. exome to seventh Florida There's added coverage coverage,

team enable ASP on next for for greater have to improving focused a initiatives reacceleration and claim We that growth is improve collections. to these working ASPs, we the several have increased of detail. that and management will We're going in continuously Kevin resources quarters, into confident dive

odyssey commitment with our with gives options including the rare to therapies. Our collaborations access diseases growing and new Prognos health as patients signed This outcomes. de-identified to sciences to data patients a companies to a improve network deal further this clinicians Prognos recent several life-saving appropriate integrate partnership Marketplace, treatment We Health partnerships providing into rare the well. go ultimately and data disease opportunity with quarter, to strategic partners health their set to extends economic our connect us to to accelerate comprehensive the life step to in a to patient and treatment and ending our

to fantastic short- study care. a sequencing. with at yesterday morning collaboration first sequencing [Seek for compare of announced and And is its whole we across long-read kind to platforms just long-read genome neonatal partners First] and of our rates and University This yield Washington the pediatric PacBio diagnostic study the

sequencing Our pioneering on to built the technology young interpretation genetic field further will for with diagnosis of genomic-based children. diagnostics deliver be precise to advance platform paired innovative genome

As reduce expanded and sustainable we teams drive to our to we'll progress ASPs expect on to operating continue our continue of focused growth, to our can cash and efficiency you to of continue profitability. year, strengthening to the continue over path remain the burn. rest use of X improve drive our our goals And exome, absolutely

more to now, It's ago, the privilege so do in many since the grateful nearly a we a the past be decade in it of we're just those set standard we shift of we'll years and a X million for of any a company. And to new X.X to opportunity to half and so. strategic exomes be introduced hitting every each day. sequenced And a new implemented more milestone day able help than care since patients

that, call Kevin. like the to to With pass over I'd

Kevin Feeley

cover basis, burn. growth continuing I'll up then cash the Katherine, and guidance. the take both margins good we on to gross a I first of reduce what through you, continually and to operations XXXX would are year-over-year and sequential with spend Thank like in revenues, doing expansion and address wrap from afternoon. you

compared During quarter first second of $XX.X operations and XXXX. XX% Those Pro increases XX% sequencing of first and to total quarter driven the from compared million. the growth $XX.X by million $XX.X year-over-year entirely grew sequentially second continuing XXXX revenues in exome to of forma in in the grew was quarter which revenues $XX.X revenue, compared were were whole the quarter. to million XXXX, million

and in XX% the far an nearly lives number the of growth of is quarter. results are compared exome first by the growth volume impacting team of resulted year-over-year XX% exome to represents of and volume in Our we XX,XXX That high quarter. all-time terms sequential

from continuing quarter Pro forma was adjusted XX%, expanding the in gross margins in second quarter. of first the operations from XXXX XX%

we and forma for expand the reminder, year guide pro XXXX. of that As exited XX% reaffirmed with margins adjusted to beyond our a full XXXX gross have

you bring do will me through ways the we that. Let

whole tests from exome quarter in sequencing Adjusted the of of represented XXXX, in remained exome. XX% gross XX% exome delivered a up in margin growth Whole First, quarter. all preceding at XX%. for the portfolio-leading sequencing second

we've tests second this saw of test each month which at and made of that the test all with momentum first with in we all to of to out results second topping June the represent and include candidates whole successfully near-term up non-exome half Examples certain on quarter, up built exome. the of convert results quarter. XX% volumes XX% In CMA exome. year, being approximately XX% whole Notably, FMRX,

to be reimbursement carry the in strength Although proportionate negative low mix we mix transitory gross And to this is we're non-exome quarter. average and meant to that momentum previously this see discussed year. the exome margins, pleased in lower these

mix to in weigh expect As our towards strategy margins. gross genome whole hold, takes and accretion volume exome see natural blended continued we to our

Second, increased payment rates.

to XX% managed state for various programs Medicaid medical exome test have payers care volume subject aggregate and the through and coverage positive all genome programs. of level of portfolio, criteria. some Approximately Medicaid runs all and/or of necessity commercial and XX% commercial half Within insurance, genome, nearly exome all of

we Today, less are being currently all half than claims. of on reimbursed

revenue well This cycle focused behavior payer efforts drive claim process and are and upfront intelligence increase of necessity targeting automation will we towards -- use policy medical prior of adherence submission. time ordering capturing ensure payment. reimbursed real Our regions the artificial design information improvement are to the with and mobilized on help and in improving to and individual likelihood and

have and number We ahead. hurdles claim offer improvements rates to within authorization prior our identified denials. of opportunity payment Improving unnecessary substantial a in control disparate are also avoid process necessary order navigate a to

all highly to collectability. of bill, be with which remaining near volume XX% tends is The XXX% institutional predictable

product with emerging respect increases portion particular, over expect need, to whole where pricing portfolio this where and leveled As support, PICU, there following quarter. the a the and with relatively we to discussed some of of in we're unmet resets of of clinical is the out has high-priced on Overall, large increase. payer back utilization mix guidelines the exome rapid we pleased in genome our term and the this long proportion last on pricing institutional NICU

we sequencer our per to, the number of test. through cost in and implemented are aimed quarter, wet to of be beyond. first both savings the a quarter. Alumina throughout And reducing preparation production lab expected machine through of Twist further to number to consolidation the which next-generation with second launch not savings These operations. our in is lab library projects steps validated on implement month. improving of Third, across June processes automation and at team to lab Dry a limited Biosciences, track and and another In our end-to-end X+ fourth further COGS quarter turnaround times launch validation in third AI but expect our this the include,

Fourth, portfolio rationalization.

over economic phase guidelines, policies backbone monitoring our closely as and disease planned quarters panel genome an are for low-margin the this the we continue of clinical periodic the of begun inherited and all through and until have a at performance and retiring We've marketplace our tests to test and arrive years We tests. work exome legacy coming menu evolves low-volume, review. ultimately goal

activities, primarily is declined G&A SemaX will equivalent quarter quarter a the the expense of across Turning of following we from $XX quarter XXXX until operating a down second of transformative reductions, $XX to in reduced first in has million April are period. declined the cost third functions. XXXX, the combined further X% completion effect from all workforce This X% wind-down expenses. operating of declines to substantially into which Adjusted of expenses compared the support the roughly million quarter and the XX% to In fourth not or XXXX translate our comparable XXXX, XX% XXXX. have

legacy expense million XXXX coming substantial tech continue the same work the all of million XXXX our $XX discontinued an aspects of we the from net operating compared At drive quarter of to of XXXX, to leverage was gain the in $XX and first XX% leave loss in and operations, quarters of adjusted respectively. business. behind all adjusted line, discontinued improvements second We of period operations, bottom as total activity, XX%, will efficiency net company quarter SemaX the across inclusive the for debt million $XX diagnostic and loss of including continue in separate to legacy the

XXXX. by We've to and for decreased year-over-year quarter second the $XX XX% our million cash burn sequentially XX% of

XXXX, as which from proceeds of and offering $X $XXX Our direct total million from final capital were XX, included raise of million in January restricted cash June that the equivalents of and the the registered tranche was cash $XXX.X part million cash XXXX.

forma XXXX previously of gross margin turning XX% and in reported in million our to expectation the beyond and fourth adjusted Now $XXX in margins to to issued guidance XXXX margin gross reaffirm quarter our gross expand pro We revenue guidance. revenue XXXX. the million of $XXX

inclusive now obligations previously $XX net expect of SemaX use cash XXXX, guidance business. discontinued remaining $XX cash months servicing and of million updating issued X are million the We to in the to of use of

continuing the have end By to we quarterly expect burn cash from levels. the operations today's XXXX, of from

to to profitability our XXXX. We long-term turn are reaffirming guidance in

and all Accordingly, had at To conclude, our as common all a as a X:XX of of shares we June XX, And stock effected reverse XXXX, reminder, a stock XX,XXX,XXX we our and adjusted, outstanding. share of reflect split in retroactively for common applicable, XX-Q share have additional split. numbers, capital per stock amounts to where been [indiscernible] the periods today stock presented filed reverse ratio.

Katherine. that, call I to with And will the over turn

Katherine Stueland

I'd that, to do our to shareholders work our dedicated day. their is fight you. children hard, And we the get us And is we but serve strengthen our enabled for parents this. inspire like moment thank it to thank company The to advocates take clinicians and a to continue I say them and every want who the who with tested children get the incredibly parent answers. each day work us team, to to who

that, it with we up can open questions. for And

Operator

the comes Massaro Mark Our line first BTIG. [Operator of question of from Instructions]

Mark Massaro

on the you revenue If exome about this in second genome. I in growth obviously yes, if doing looks math strong growth and first the correctly, I'm nearly to XX% revenue Congrats implying XX% half, -- like generated of XX% it the half. in

I back-end a knew seems would I previously little more be back-end than this that think we loaded, loaded but it year thought.

you're parts the me and to you that think more of end? can So hit of do guidance? maybe get just what perhaps could the confidence Or maybe the through you the likely now walk some midpoint you moving gives you low to

Katherine Stueland

well. Kevin I'm to as share would it and like to kick Certainly, happy off

territories. made to add the I about think commercial talked investments that we've we've previously

So XX we territories. added about

We of time or MSLs. for a first the liaisons science ever have out built medical team

And a we conversion [staffed] exome. hand who sales field, team be to So work now in on with have focus to to I of the June. reps that believe, X are fully really in of as hand able they

based those just the that are is to we had And experience really on accelerate what early effectively we've able that they some seen that of switch. MSLs with

think saw So the of performance of was product June commercial team. we sales our exome ever. direct supercharge this help It's strength in of I and kind month strongest And execution. the what our they year our

confident the So we that amplified gone us really growth in confidence, liaisons, the we've that those really going that conversion I that by the would we what more factor say the now I year. really like team sales major and robust gives continue execution the of we're would feel to drive a the of for through able that, and science understand to second say, that half half sales is to be to year. And looks have, second that that medical

Kevin Feeley

to that Yes. sees terms typical us just the average over The in only that the in by but reimbursement amplified is come the thing team both I'd which ordering supported add rates. of also also seasonality, quarter fourth for volume that, is strongest years,

Mark Massaro

sorry, Yes. the just and us joined these for XX the territories remind direct folks just X that Great. is you MSLs, XX is can housekeeping, And Katherine, adds? or when company? reps the XX that And then

Katherine Stueland

Certainly.

So XX we I we about it territories. -- last was year, believe, ended,

there's handful We continue And account so to to the course be we XX. sales of a of drive we've are regions open year added as that about the throughout usually that force going productivity.

science force that, and there field that top the liaison. have are is And then each on of regions X medical size regions, total X the those So in range. of a

those those the each reps all within is regions. MSLs of each So with of of working

Mark Massaro

Great.

when And GeneDx? new start sorry, did just reps at the to check, double

Katherine Stueland

adding been by, largely say, and would I in place So of throughout they we've QX. them were middle QX,

them X- way and a X-months ramped about there's up of getting window to we productivity. So really to expect getting full that by

of those that really has a their each team had sure working they targets exactly are. know to been good make reps seasoned we've who with that So

They good of that were them targeting adding of MSL. throughout have the the of that ensure really that half there's And going clarity the staffed have now additional the clinicians coverage, where been and year. they're fully We've first helps bolster June. data for they then MSL, to the as

Mark Massaro

to All sense was exome genome? you right. percentage Great. volume At time your in of for me. come XXXX, have And volume. just and last you the profitable exome your a genome expect what XX% that of a for from one do The will mix and become

Kevin Feeley

Yes.

there in target said the is XX%. the longer-term we've think I past, around

Operator

Our line Couillard Brandon next of comes question of Jefferies. the from

Matt Kim

Matt the the increase part XX% around Brandon. more collection. color portfolio on that's XX% all of -- not about to you investing the currently so it's is Katherine, I Appreciate for little under that reimbursed. bit talked a or This guess or

any talk would being that think, over about be? substantial any you So guys about Kevin, there improvement what you it a could where And talked opportunity. go chance could number time? I

about So improvement and any timing color in kind from it more on where can reimbursement how a of think go perspective? to that

Kevin Feeley

Look, to I Yes. it's going quarters. take perspective, from think several a timing

I the a term, think product rate a payment see to longer around expect XX% likely in XX% in our time. the of mature we to space would

that found many the commercial It's well a opaquely cases, function for we've many under and exome written which years of fairly number of product state there not is for policy. is being a even coverage across is established insurance just genome. recently What coverage and programs, Medicaid in

driving to on that as can improve of end We operational -- closely that up ensure processes steps the payer policies see. in that that and on payer guidelines of focused to And think those ordering we payment we closely over And number align home really drive the as rates. to and a can we're higher as our crystallize expect meantime, we front there's time. we're policies tighten to behaviors

to a ASPs growth time rate there. some overall get see rate the as into accelerate and to denial take we will the revenue and therefore, significant today opportunity But nonetheless, payment It future.

encouraged us What most the contracted across very is well has GeneDx country.

front-end or I new ensure we not policies of in-network commercial necessarily to and of paid more with behaviors on are rules think to specific come for to thereabout ordering that order now properly paying and attention requirements for payer the processes are so the a get to XX% out lives work, in and payer. various reliant ensuring that each web are of years but our the in all number we fields,

providing quarters reports we're to forward progress on look in we coming you progressing regard. in so that And how

Matt Kim

about you. then, the Any really all Kevin, back the or clarity helpful. Appreciate color year? stick additional clarity adding gross into in margin with And of the is kind half just the the is XQ maybe around of in help to you improvement I here maybe mean, quarter underway initiatives really the XQ sequentially starting a and form, other seasonality higher, some guys bit think take improvement have saw of we fair then there? the the given any to

Kevin Feeley

Yes.

mix. get a that it's be how precisely we to exome initiatives be place being But helped above which year for reduction have walk would that's also the that by to will that by think COGS of mark, full I mostly number we XX% driven going to overall in portfolio.

And you so the might order saw expansion of the quarters. of in from something sequentially expect to next QX we QX, that magnitude X over range

Matt Kim

the can just talk deal. in weeks a maybe long then about And partnership more structure Great. to announced fully I on you platform take it to if their little the expect do integrated a on Health the and And of Prognos How you bit sneak just one live? few be become Okay. ago. more

an opportunity their are Is marketplace? customers the with work to work some expand there of biopharma that with or leveraging your

Katherine Stueland

patient a just may be data therapy. rare to an by rare really getting to FDA-approved who be eligible we're database. now, work see the the with opportunity will a started who the ensure as great next themselves to us we be clinicians And months the connecting disease for put being may I So few years disease is able working able really expect upload several and for it we patients think be to that a over Prognos to have this for

working the a nice get time. that way is we them a partnership. is additional something with these bring lift we that companies expect over So long-term And to think platform, and this onto the as Prognos we'll wonderful leads really

way, we similar clinicians to drive going what where, on companies a development connect biopharma side things. deals continuing other and eligible so to that in efforts clinical able have be of respect, R&D more call fine de-identified in may patients Prognos the trial to are again, for who we additional, to we're Simultaneously, with

companies a we with have So think nice as is stage way us. as us the directly Prognos engaging well biotech the with this and both to stage companies commercial with interacting R&D

development So to business both those continue we'll efforts. of drive across

Operator

Instructions] Sachs. [Operator Our the of question Prashant from comes of line next Kota Goldman

Prashant Kota

Can of study you the Research PanGenome study? how to and impact are What speak the the they key R&D that findings spend? from your informed

Katherine Stueland

Certainly.

development say PanGenome is I think, I the would huge the important So out is is one of combination that not and study, GeneDx. a an something was It that coming of SemaX certainly focus from and the advance of of standpoint. to we sequences. understanding ultimately, commercial variations diverse across area scientific us they genome complex the community's really think that But structure for genetic a help

group our of say us the And advance peer-reviewed very who the continues to GeneDx it's serve. pride what's our database, a and So that understanding humans we overall think presented be our how that I for is space. in of reflective genomes be unique is that of a think moment it's which in have really at ensuring diversity may I I diverse way the different. would data we continue contributing of have to fashions that patients we of our of to their patients to

the tends optimized population cancer, of really and general hereditary typically, genomics it States. Our use to be And to the because diversity the for is the Caucasian of of United population. actually similar quite

unique able want body of patients continue a database. ensure our support of to have diverse who a that we a and evidence disease. that we to contribute helps growing to So understanding to really serving of we group that We are we're have

Prashant Kota

great you regulatory remind funding to have And federal hear. in That's in of of rare the for research? space? it. private And the us federal current just initiatives been updates this disease any or in could Got terms there landscape additional

Katherine Stueland

of decade most ensuring a It's the access have for Drug patients important the been one now, business Act to important a the element Sure. of Orphan of enablers treatments. has because that really

#X patient diagnosis sequencing If then is advocacy thing exome you very panels any are the for that single full talking because to to recognize and strongly diagnosis. a advocate more go they they now the or they of we're provide And able definitive groups, about gene the tests. fact that

as to cooperatively for we on we're patient only work pertains And support, starting diseases, robust a momentum with opening advocacy say, Act. more hill greater see Orphan voice think as I stronger the seeing for up it access the rare to would we're the Drug organizations. So I a to future

Operator

[Operator question line comes Cowen. Brennan from Dan next of of the Instructions] Our

Dan Brennan

one going Or be the mix. to on Maybe QX would quarter. in call Congrats Great. we factors one-off the more just it, first some are exome be baseline in on the Should mix XX% this, expect there the forward? quarter?

Kevin Feeley

quarter commensurate that results that point a total of month with quarter-over-quarter as June each the to really that, Yes, the what percent the think with each increase growth see the with, any with I quarter exome of month as of launching topping move first wouldn't quarter XX%. that we Dan, the say, see number to throughout that call again, into out third one-off factors other quarter did second than out at saw and expect that's from we we continued And would we'd we a second.

Dan Brennan

Great. I X,XXX to on was bit under It QX to -- was from exomes' think this but maybe ASP impression the looks down year. QX [indiscernible] sorry the discussed sequentially were a for that if X,XXX. in the went generally XX like And just we -- earlier, and then [indiscernible]

here? of we about forward kind think should should pricing? So from expect how to we And kind going of rise prices

Kevin Feeley

for view saw to that third or more up the slightly ASPs we hold don't We've in necessarily pervasive fourth reason, but just some variation. a QX we'd uptick past in expect quarter, QX, keen on we got it, From do I systematic the flat Yes. quarter, an with practices. fluctuations. any as in or eye so within it down seasonal consistent

year to and What that volume the rates continuation side seen quarter growth revenue of through sequentially of part volume the rates the we've be to contribute and with would coming really of then continued on we expect in consistent what through significantly second this by volume in momentum first terms collection more achieved we rates quarter is growth saw the in or expect fourth in the increased reimbursement uplift to within ramp. half part

Dan Brennan

Great. in like sneak were shift When terms just one gross the we can And of margins. I thinking then more is -- biggest if driver. gross margin in mix

a quarters. GM from you've this is prior XX%, You The quarter. the mix below material in had shift gotten there went

can So dynamic? you walk little bit this just us through of a

Kevin Feeley

Yes.

important perspective, a to growth are as FMRX and, tests, within I and the number think our are in gross really to to mix tests eye future also on important low over for some exome. they we expect cases, keep But from is what's negative CMA non-exome convert portfolio. margins those like seeds of an time

improving the those in either margin the time. mix ultimate just accretion blended seeing and overall to low over important the So volumes to we negative or gross expect tests, gross overall of very then retirement margin trimming that

periods significant and materialize ASPs upside time, do expect to there's reductions At rates overall the And to we can have increase in payment second half XXXX. a the of that beyond. in in year background, the or future the outside same of COGS us this in

to combination of the play is really into levels. from margins time boost factors of that over all come those gross it So today's

Katherine Stueland

forward all everyone we conferences. work And important and joining appreciate seeing of our rest upcoming want who make shareholders Again, day. to I your Have great to thank support this we look a you us Well, of at possible. us today.

Operator

the in Thank program. conference. your you participation today's does for conclude This

now may You disconnect.

GeneDx (WGS) 8 Aug 232023 Q2 Earnings call transcript