GeneDx Holdings Corp, a leading provider of enhanced health insights through genomic and clinical expertise, unveiled its revenue results for the third quarter (Q3) of 2023 on October 30, 2023. The company disclosed a total revenue of $53 million, reflecting an impressive year-over-year growth of over 40% in exome and genome test revenue. Additionally, the company bolstered its gross margins to 48% in ongoing operations, while achieving a noteworthy 52% year-over-year reduction in cash burn. However, in the wake of this announcement, GeneDx Holdings stock continued its ongoing decline.
At the time of this publication, GeneDx Holdings Corp stock (WGS) has witnessed a decline.
GeneDx Holdings Corp
Current Price: $1.94
Change : -0.73
Change (%): (-27.34%)
Volume: 181.3K
Source: Tomorrow Events Market Data
During Q3 2023, the revenue of GeneDx from ongoing operations stood at $50.4 million, a substantial rise from the $47.2 million reported in Q3 2022, signifying a robust 14% year-over-year surge. Notably, revenue generated from whole exome and genome tests amounted to $34 million, marking an impressive 42% year-over-year escalation and an 18% increase on a quarter-over-quarter basis.
The total number of tests conducted in Q3 2023 nearly reached 58,000, demonstrating a substantial uptick from the approximately 45,000 tests conducted in Q3 2022. Specifically, the number of whole exome and whole genome tests conducted totaled 13,216, representing a remarkable 71% year-over-year surge and an 11% increase from the previous quarter.
GeneDx’s adjusted gross margin from ongoing operations expanded to 48% in Q3 2023, exhibiting a notable sequential growth from the 37% reported in Q2 2023. Furthermore, the adjusted gross margins for whole exome sequencing continued to operate impressively at over 60%.
As of September 30, 2023, GeneDx boasted a substantial liquidity position with cash, cash equivalents, marketable securities, and restricted cash amounting to $115 million. For Q3 2023, the company demonstrated an improved cash utilization rate, spending $42 million, marking a significant 51% year-over-year enhancement and a 21% sequential improvement. The overall net loss for Q3 2023 narrowed to $42.3 million, while the adjusted net loss saw an even more substantial improvement, narrowing to $21.2 million, showcasing a remarkable 70% year-over-year enhancement and a 45% sequential improvement.
In terms of guidance, GeneDx updated its full-year 2023 outlook, anticipating revenues of $187-$192 million, an expansion of its gross margin profile in 2023 and beyond, an expenditure of $75 to $79 million of net cash for the latter half of 2023, and a projected turn to profitability in 2025.
Recent highlights in GeneDx’s business operations include the appointment of Melanie Duquette as Chief Growth Officer, tasked with spearheading commercial excellence, and the achievement of a significant milestone, having sequenced over 500,000 clinical exomes. Furthermore, the company bolstered its data solution partnerships by securing three recent agreements with firms dedicated to developing targeted therapies for patients grappling with rare diseases.
On October 27, 2023, GeneDx took a significant step forward by entering into a new five-year senior secured credit facility with Perceptive Advisors, granting access of up to $75 million. The proceeds from this facility are slated primarily for general corporate purposes, including additions to working capital and strategic commercial investment opportunities.
In a strategic move on October 30, 2023, GeneDx initiated a plan aimed at reducing approximately $40 million in annual operating expenses, which includes a reduction in the workforce of approximately 10%.
