GeneDx Holdings Corp (WGS, Financial), a leader in delivering improved health outcomes through genomic and clinical insights, announced its financial results for the third quarter of 2023 on October 30, 2023. The company reported a total revenue of $53M, with over 40% YoY growth of exome and genome test revenue. The company also expanded its gross margins to 48% in continuing operations and achieved a 52% YoY cash burn reduction.
Financial Highlights
GeneDx's revenue from continuing operations for Q3 2023 was $50.4 million, compared to $47.2 million in Q3 2022. This represents a 14% YoY increase. Revenues from whole exome and genome tests were $34 million, marking a 42% YoY increase and an 18% quarter-over-quarter increase.
The company's total tests resulted in Q3 2023 were nearly 58,000, compared to nearly 45,000 for Q3 2022. Total whole exome and whole genome tests resulted were 13,216, an increase of 71% YoY, and an increase of 11% quarter-over-quarter.
Adjusted gross margin from continuing operations expanded to 48% in Q3 2023, up sequentially from 37% in Q2 2023. Adjusted gross margins for the whole exome sequencing continue to operate in excess of 60%.
Balance Sheet and Cash Flow
As of September 30, 2023, GeneDx's cash, cash equivalents, marketable securities, and restricted cash were $115 million. The company's use of cash for Q3 2023 was $42 million, an improvement of 51% YoY and 21% sequentially. The total company net loss for Q3 2023 narrowed to $42.3 million, and the adjusted net loss narrowed to $21.2 million, marking a 70% YoY improvement and a 45% sequential improvement.
Updated Guidance
GeneDx updated its full-year 2023 guidance, expecting to drive full-year 2023 revenues of $187-$192 million, expand its gross margin profile in 2023 and beyond, use $75 to $79 million of net cash for the second half of 2023, and turn profitable in 2025.
Recent Business Highlights
GeneDx appointed Melanie Duquette as Chief Growth Officer to drive commercial excellence and surpassed the milestone of more than 500,000 clinical exomes sequenced. The company also continued to expand data solution partnerships by signing three recent agreements with companies focused on developing targeted therapies for patients with rare diseases.
On October 27, 2023, GeneDx entered into a new, five-year senior secured credit facility with Perceptive Advisors, providing access of up to $75 million. The company intends to use the proceeds primarily for general corporate purposes, including additions to working capital and strategic commercial investment opportunities.
On October 30, 2023, GeneDx enacted a plan to remove approximately $40 million in annual operating expense, including a workforce reduction of approximately 10%.
Explore the complete 8-K earnings release (here) from GeneDx Holdings Corp for further details.
