Financial Data and Key Metrics - Total revenues for Q3 2023 were $53.3 million, with revenues from continuing operations at $50.4 million, up from $47.2 million in Q3 2022 and $45.2 million in Q2 2023 [8] - Excluding a one-time appeal benefit in Q3 2022, revenues increased 14% YoY [8] - Whole exome and genome volume reached over 13,000 tests in Q3, a 71% YoY increase and 11% QoQ growth [8] - Revenue from exome and genome testing was $34 million, up 42% YoY and 18% QoQ [8] - Adjusted gross margin from continuing operations was 48% in Q3, up from 37% in Q2 [42] - Cash burn for continuing operations was approximately $25 million in Q3, with a 52% YoY reduction in cash burn [12][17] Business Line Data and Key Metrics - Exome and genome testing accounted for 63% of total revenue in September, with exome growth at 70% in Q3 [6][40] - The company is focusing on increasing exome and genome volumes, reducing claim denial rates, and driving down cash burn [6] - The company plans to retire about 350 tests in early 2024 to focus on differentiating tests that are best for patient care and positively impact the P&L [21] Market Data and Key Metrics - The company saw a 12% increase in clinicians ordering exomes in the outpatient setting, with neurology showing the fastest growth at 18% QoQ [40] - The rapid genome product in the inpatient setting is growing quickly, though it remains a small portion of the business [74] Company Strategy and Industry Competition - The company is transitioning the market from single-gene tests, multi-gene panels, and microarrays to exomes and genomes [6] - Automation and AI are being leveraged across review analysis, report writing, and genetic accounting steps to reduce costs [2] - The company has entered into a $75 million debt facility with Perceptive Advisors to strengthen its balance sheet and provide flexibility in 2025 [7][80] Management Commentary on Operating Environment and Future Outlook - The company expects to achieve profitability by the end of 2025, driven by rationalizing operating expenses, expanding gross margins, and revenue growth [9][44] - The company is confident in its ability to drive exome growth and improve reimbursement rates, with a focus on reducing claim denials [75] - The company is navigating a challenging market but remains committed to driving shareholder value through cost-effective growth [7] Other Important Information - The company has completed the consolidation of library preparation platforms to a lower-cost solution offered by Tuas Biosciences [2] - The company has implemented a cost reduction plan of approximately $40 million, including vendor spend and workforce reductions [13] - The company has brought in new leaders across commercial, operations, finance, and product and technology to drive efficiency and growth [15] Q&A Session Summary Question: What is driving the implied Q4 revenue guide reduction? - About half of the reduction is due to employee reductions, primarily in R&D, product and technology, and support functions [4] - The company is focusing on projects with shorter-term payoffs and has trimmed longer-term R&D pursuits [4] Question: How is the company addressing cost reductions and where will these be reflected in the P&L? - The $40 million cost reduction plan includes vendor spend and workforce reductions, with a focus on supporting exome and genome growth [13][22] - The reductions are primarily in R&D and support functions, with no impact on the sales force or MSL teams [23][51] Question: What is the outlook for ASPs and pricing in 2024? - The company expects ASPs to stabilize, with slight improvements in Q4 and incremental ASP improvements in exome over the next several quarters [20] - The company is focused on reducing denial rates to improve ASPs and revenue [75] Question: What is the progress on reducing claim denials? - The company has seen a slight reduction in the denial rate, which is currently in the low 60s, with efforts ongoing to further reduce denials [75] - The company is focusing on avoiding denied claims rather than relying on the lengthy appeals process [75] Question: What is the breakdown between inpatient and outpatient exome testing? - The vast majority (97-98%) of exome testing is in the outpatient setting, with rapid genome testing in the inpatient setting growing but still a small portion of the business [74] Question: How is the company thinking about capital allocation with the new debt agreement? - The new debt agreement is coupled with cost reduction actions to drive exome growth, improve reimbursement, and reduce costs, with capital allocated to support these priorities [64] Question: What is the outlook for gross margins? - The company expects gross margins to continue to improve as exome testing makes up a larger portion of revenue, with exome margins currently over 60% [16][90] - The company sees the Q3 gross margin of 48% as a base to build from, with no meaningful one-time items impacting the number [56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Securities registered pursuant to Section 12(b) of the Act: For the quarterly period ended September 30, 2023 Commission file number 001-39482 GeneDx Holdings Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Delaware 85-1966622 ...

GeneDx Holdings Corp. (NASDAQ:WGS) Q2 2023 Results Conference Call August 8, 2023 4:30 PM ET Company Participants Tricia Truehart - Head, IR Katherine Stueland - President and CEO Kevin Feeley - CFO Conference Call Participants Mark Massaro - BTIG Matt Kim - Jefferies Prashant Kota - Goldman Sachs Dan Brennan - Cowen 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 recorde ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-39482 GeneDx Holdings Corp. (Exact name of registrant as specified in its charter) Delaware 85-1966622 (Sta ...

Financial Data and Key Metrics - Q1 2023 revenue was $40.7 million, up from $38 million in Q1 2022, driven by a 22% growth in whole exome sequencing revenue [30] - Total test volumes increased by 8% sequentially and 29% year-over-year [30] - Adjusted gross margin for whole exome sequencing was approximately 60%, contributing to 17% of total volume in Q1 2023 [32] - Cash burn improved by 31% year-over-year to approximately $59 million in Q1 2023, with expectations of further reductions in subsequent quarters [35] - Total company adjusted net loss in Q1 2023 was $48.8 million, a 34% improvement compared to Q4 2022 [63] Business Line Data and Key Metrics - Whole exome and genome testing delivered $22.4 million in revenue, representing a 22% increase year-over-year in Q1 2023 [51] - Orders among neurologists and pediatric specialists were significantly higher compared to the previous year [24] - The company expanded sales territories from 58 to 66 across the United States and added cross-functional support teams to drive growth [24] - Non-exome tests, which serve as stepping stones to exome sequencing, saw increased volumes but carry lower average reimbursement rates and gross margins [60] Market Data and Key Metrics - The company expects to see margin expansion throughout 2023, with gross margins reaching the mid-40s by year-end [42] - Whole exome and genome testing is expected to become increasingly standard of care, particularly for cardiovascular and neurodegenerative diseases, allowing expansion into the adult population [50] - North Carolina Medicaid added coverage for exome sequencing, becoming the 28th state to do so, reflecting favorable payer trends [56] Company Strategy and Industry Competition - The company is focused on converting physicians to exome testing, leveraging non-exome tests as stepping stones [52] - Marketing efforts include conferences, publications, and brand awareness campaigns to educate clinicians and drive adoption [53] - Automation and AI are being implemented to improve turnaround times, reduce COGS, and expand gross margins [55] - Partnerships with biopharma companies are being pursued to leverage clinical and genomic data assets for drug discovery and development [28] Management Commentary on Operating Environment and Future Outlook - Management expects sequential improvements in cash burn, with Q4 2023 burn projected to be around $20 million [4] - The company reaffirmed its 2023 revenue guidance of $205 million to $220 million and expects to reach profitability by 2025 [37] - Management highlighted the growing market for genetic testing, with increased adoption by patients and physicians [14] - The company is optimistic about the favorable clinical and health-economic benefits of exome and genome sequencing, supported by medical societies and payers [27] Other Important Information - The company completed a reverse stock split at a 1 to 33 ratio, with all share-related figures retroactively adjusted [66] - In April 2023, the company issued an additional 1,378,328 shares as milestone payments related to the GeneDx acquisition [38] - The company signed data agreements with five companies focused on rare diseases or neurological disorders, leveraging its Centrella platform [57] Q&A Session Summary Question: Reconciliation of volume growth with revenue decline in single and multi-gene tests - The decline in revenue despite volume growth is attributed to lower realized ASPs, which are expected to improve as the year progresses [1][41] - Non-exome tests are seen as stepping stones to exome testing, with the sales team incentivized to drive this conversion [1][73] Question: Gross margin drivers and expectations for 2023 - Gross margins are expected to improve sequentially, driven by mix shift towards higher-margin tests, better reimbursement, and lab efficiencies [70][75] - The company aims to achieve mid-40s gross margins by year-end, up from 41% in Q4 2022 [42] Question: Cash burn and restructuring costs - A substantial portion of Q1 2023 cash burn was tied to restructuring, with remaining payments expected to wind down by Q2 2024 [4][76] - The company is focused on reducing G&A expenses and improving operational efficiency to further lower cash burn [4][76]

5 2023 Guidance Revenues between $205-220 million for full year 2023 v Expanded adjusted gross margin profile 2023 and beyond Use of net $95-110 million in cash in 2023 for continuing operations Inclusive of servicing obligations of the exited business activities, total cash burn in 2023 between $130-145 million, a >50% reduction year-over-year Turn to profitability in 2025 | --- | --- | |-------------------------------------------------------------------------------------------|-------| | | | | | | | One T ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-39482 GeneDx Holdings Corp. (Exact name of registrant as specified in its charter) (State or other jurisdi ...

GeneDx Holdings Corp. (NASDAQ:WGS) Q4 2022 Earnings Conference Call March 14, 2023 4:30 PM ET Company Participants Tricia Truehart - Head IR Katherine Stueland - CEO Kevin Feeley - CFO Conference Call Participants Brandon Couillard - Jefferies Matthew Sykes - Goldman Sachs Vidyun Bais - BTIG Joseph Flanagan - Cowen Operator Thank you for standing by, and welcome to GeneDx' Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to Head of Investor Rel ...

Financial Performance - Total revenue for the year ended December 31, 2022, was $234.694 million, a 10.5% increase from $212.195 million in 2021[545]. - Diagnostic test revenue reached $227.334 million in 2022, up from $205.100 million in 2021, reflecting an increase of 10.5%[545]. - The company reported a net loss of $548.980 million for 2022, compared to a net loss of $245.390 million in 2021, indicating a significant increase in losses[545]. - Net loss for the year ended December 31, 2022, was $548.98 million, compared to a net loss of $245.39 million in 2021, representing a 123% increase in losses year-over-year[552]. - The total other income, net, was $69.620 million in 2022, a decrease from $200.759 million in 2021[545]. - The company incurred an impairment loss of $210.145 million in 2022, which was not present in 2021[545]. - The company reported a significant increase in the cost of services, totaling $261.444 million in 2022, compared to $228.797 million in 2021, reflecting a rise of 14.2%[545]. Cash and Liquidity - Cash and cash equivalents decreased from $400.6 million in 2021 to $123.9 million in 2022, a decline of approximately 69%[540]. - Cash, cash equivalents, and restricted cash at the end of 2022 were $138.30 million, down from $401.47 million at the end of 2021, indicating a decrease of 65%[553]. - Net cash used in operating activities increased to $319.16 million in 2022 from $190.43 million in 2021, reflecting a 68% increase[552]. - The company has not drawn any amounts under the SVB Agreement as of December 31, 2022, indicating a cautious approach to leveraging credit[530]. Assets and Liabilities - The company reported a total asset value of $490.9 million as of December 31, 2022, down from $554.1 million in 2021, a decrease of about 11%[540]. - Total current liabilities rose from $101.3 million in 2021 to $144.3 million in 2022, an increase of approximately 42%[540]. - The accumulated deficit increased significantly from $575.4 million in 2021 to $1.1 billion in 2022, reflecting a rise of about 95%[542]. - Total stockholders' equity decreased from $388.1 million in 2021 to $253.7 million in 2022, a decline of approximately 35%[542]. Expenses - Research and development expenses were $86.203 million in 2022, down from $105.162 million in 2021, representing a decrease of 18.0%[545]. - Selling and marketing expenses increased to $134.913 million in 2022, up from $112.738 million in 2021, marking a rise of 19.6%[545]. - Stock-based compensation expense decreased to $41.98 million in 2022 from $219.42 million in 2021, a reduction of 81%[552]. Acquisitions and Related Costs - The Company completed the Acquisition of Legacy GeneDx on April 29, 2022, paying $140.5 million in cash and issuing 80 million shares valued at $172 million[633]. - The total aggregate purchase price for the Legacy GeneDx Acquisition was $364.5 million, which includes $52.0 million in earn-out potential based on revenue milestones[634]. - The Company incurred $12.1 million in acquisition-related costs for the Legacy GeneDx Acquisition, reflected in general and administrative expenses[638]. Stock and Equity - The weighted average shares outstanding for Class A common stock increased to 337,819,680 in 2022 from 108,077,439 in 2021[545]. - Basic and diluted net loss per share for Class A common stock improved to $(1.63) in 2022 from $(2.27) in 2021[545]. - As of December 31, 2022, there were 388,511,138 shares of Class A common stock issued and outstanding, compared to 242,647,604 shares as of December 31, 2021[718]. Taxation - For the year ended December 31, 2022, the total income tax benefit recorded by the company was $49,052,000[719]. - The effective tax rate for the company for the year ended December 31, 2022, was 8.2%[719]. - The company experienced a significant increase in domestic tax expense from $(245,390,000) in 2021 to $(598,136,000) in 2022[719]. Impairments and Reserves - The Company recorded a $22.5 million impairment charge for inventory in the fourth quarter of 2022 due to the planned exit from Legacy Sema4 testing services[579]. - Goodwill was fully written off with an impairment loss of $174.5 million for the year ended December 31, 2022, as indicators suggested fair value was less than carrying value[585]. - The Company recorded an impairment charge of $10.0 million related to excess office space as of December 31, 2022[684]. Future Obligations and Contingencies - The Company has up to $150 million in contingent payments related to the Acquisition of Legacy GeneDx, based on revenue milestones for 2022 and 2023[600]. - The first Milestone Payment of $112.5 million is contingent upon the Legacy GeneDx group achieving revenue of at least $163 million for fiscal year 2022, while the second Milestone Payment of $37.5 million is based on achieving $219 million for fiscal year 2023[601]. - The Company accrued $39.0 million for potential recoupments of payments previously made by third-party payors as of December 31, 2022[647].

Sema4 Holdings Corporation (SMFR) Q3 2022 Earnings Conference Call November 14, 2022 8:30 AM ET Company Participants Joel Kaufman - VP, Finance & Corporate Development Katherine Stueland - CEO & Director Kevin Feeley - SVP, Operations & CFO Conference Call Participants Mark Massaro - BTIG David Delahunt - Goldman Sachs Operator Welcome to the Sema4 Third Quarter 2022 Earnings Conference Call. My name is Cheryl, and I will be your operator for today's call. [Operator Instructions]. I will now turn the call o ...