Company Overview - Biodesix is a leading diagnostics company focused on improving clinical care and patient outcomes[1, 12] - The company's mission is to transform patient care through personalized diagnostics that are timely, accessible, and address immediate clinical needs[13] - Biodesix envisions a world where patient diseases are conquered with the guidance of personalized diagnostics[14] Business Lines and Key Capabilities - Biodesix generates revenue through two business lines: Lung Diagnostic Tests and Development Services[15] - The company expects to have approximately 95 sales representatives focused on lung diagnostics in the field by 4Q25[19] - Biodesix boasts industry-leading gross margins of 794%[19] - Development Services had $109 million in contracts not yet recognized as of the end of Q1 2025[73] Lung Diagnostic Tests - Lung cancer accounts for approximately 1 in 5 cancer deaths annually in the USA[29] - Approximately 80% of patients assessed for lung cancer risk fall into the low to moderate risk category (5-65%)[37, 43] - The Nodify Lung test identifies likely malignant nodules with 78% PPV, 98% specificity, and 28% sensitivity, and identifies likely benign nodules with 98% NPV, 97% sensitivity, and 44% specificity[46] Financial Performance - Total revenue for Q1 2025 was $180 million, representing a 21% year-over-year growth[76, 78] - Lung Diagnostics revenue in Q1 2025 was $163 million, an 18% increase year-over-year[76, 81] - Development Services revenue in Q1 2025 was $17 million, a 61% increase year-over-year[76, 81]

Financial Data and Key Metrics Changes - Total revenue for 2024 was $71.3 million, representing a 45% year-over-year growth [6][23] - Gross margins increased to 78% for the year, up from 73% in 2023 [7][25] - Adjusted EBITDA loss improved by 32% year-over-year, indicating progress towards profitability [7][28] Business Line Data and Key Metrics Changes - Lung diagnostic testing revenue for Q4 2024 was $17.2 million, a 34% increase from Q4 2023 [24] - Full-year lung diagnostic testing revenues reached $64.7 million, reflecting a 43% growth [24] - Diagnostic development services revenue grew by 70% year-over-year, totaling $6.6 million for the year [19][24] Market Data and Key Metrics Changes - The company reported a 40% growth in test volume for lung diagnostic testing in 2024 [9][24] - Approximately 49% of lung nodule patients have their first imaging workup conducted by primary care providers, highlighting a significant market opportunity [11] Company Strategy and Development Direction - The company aims to expand its sales force by adding approximately six sales teammates per quarter, targeting a total of 95 teammates by the end of 2025 [13][31] - A new clinical study, Clarify, was launched to collect patient outcomes and clinical information, expected to provide valuable data for future growth [14][17] - The company plans to maintain strong gross margins in the mid to upper seventies while achieving adjusted EBITDA profitability in the second half of 2025 [22][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in transforming patient care through personalized diagnostics, particularly in lung disease [7][31] - The company anticipates significant growth in 2025, driven by increased adoption of lung diagnostic tests and diagnostic development services [22][32] - Management is closely monitoring changes in the reimbursement landscape and regulatory environment, which could impact future growth [62] Other Important Information - The company ended Q4 2024 with $26.2 million in unrestricted cash and cash equivalents [29] - A pilot program demonstrated the effectiveness of expanding sales efforts into primary care, indicating a viable path for growth [12][42] Q&A Session Summary Question: Can you provide insight into revenue guidance for 2025? - Management expects biopharma services to contribute about 8-9% of total revenue, with the majority coming from lung diagnostic services, driven by volume growth rather than significant ASP changes [39][40] Question: What are the drivers for achieving adjusted EBITDA profitability? - The combination of revenue growth and tight control on expenses is expected to bridge the gap to adjusted EBITDA breakeven in the second half of 2025 [40] Question: Can you elaborate on the pilot program's outcomes? - The pilot program successfully demonstrated that primary care physicians were accessible and saw utility in the tests, leading to increased referrals [42][45] Question: What is the status of the product pipeline? - No new tests are expected to be launched in 2025, but updates on existing partnerships and studies will be provided throughout the year [54][55] Question: How will updates in lung cancer screening guidelines affect the company? - Any improvements in lung cancer screening participation will significantly expand the addressable market, as less than 10% of the screen-eligible population currently participates [64] Question: What is the expected cash burn for the year? - Management believes they can reach adjusted EBITDA breakeven with existing cash on hand, with cash burn expected to decrease throughout the year [106][109]