Fourth Quarter Revenue Increased 12% to $156 million;
Full Year Revenue Increased 16% to $592 million
FORT MYERS, Fla.–(BUSINESS WIRE)–NeoGenomics, Inc. (Nasdaq: NEO) (the “Company”), a leading provider of oncology testing and global contract research services, today announced fourth quarter and full year 2023 results for the period ended December 31, 2023.
Highlights
- Fourth quarter consolidated revenue increased 12% to $156 million; Full year consolidated revenue increased 16% to $592 million
- Fourth quarter Clinical Services revenue increased 20% to $130 million; Full year Clinical Services revenue increased 18% to $496 million
- Fourth quarter Advanced Diagnostics revenue decreased 17% to $25 million; Full year Advanced Diagnostics revenue increased 6% to $96 million
- Fourth quarter net loss decreased 37% to $14 million; Full year net loss decreased 39% to $88 million
- Fourth quarter Adjusted EBITDA was positive $9 million, an increase of $11 million; Full year Adjusted EBITDA was positive $3 million, an increase of $51 million
“NeoGenomics’ fourth quarter and full year 2023 results show the momentum and strength of our business as we continued to deliver long-term, sustainable growth on our way to becoming the leading oncology laboratory,” said Chris Smith, CEO of NeoGenomics. “We believe 2024 will be an exciting year as we continue to invest in our people and technologies to support consistent revenue growth and profitability, while allowing us to better serve our patients and providers.”
Fourth Quarter Results
Consolidated revenue for the fourth quarter of 2023 was $156 million, an increase of 12% over the same period in 2022. Clinical Services revenue of $130 million was an increase year-over-year of 20%. Clinical test volume(1) increased by 6% year-over-year. Average revenue per clinical test (“revenue per test”) increased by 13% to $441. Advanced Diagnostics revenue decreased by 17% to $25 million compared to the fourth quarter of 2022.
Consolidated gross profit for the fourth quarter of 2023 was $67.6 million, an increase of 18.9% compared to the fourth quarter of 2022. This increase was primarily due to an increase in revenue. Consolidated gross profit margin, including amortization of acquired intangible assets, was 43.5%. Adjusted Gross Profit Margin(2), excluding amortization of acquired intangible assets, was 46.7%.
Operating expenses for the fourth quarter of 2023 were $86 million, an increase of $3 million, or 4%, compared to the fourth quarter of 2022. This increase primarily reflects an increase in professional fees, an increase in payroll and payroll-related costs, including non-cash stock-based compensation expense, and an increase in travel expenses. This increase was partially offset by a decrease in recruiting expenses and a decrease in credit card fees.
Net loss for the quarter was $14 million compared to net loss of $23 million for the fourth quarter of 2022.
Adjusted EBITDA(2) was positive $9 million compared to negative $1 million in the fourth quarter of 2022. Adjusted Net Income(2) was $4 million compared to Adjusted Net Loss(2) of $7 million in the fourth quarter of 2022.
Cash and cash equivalents and marketable securities totaled $415 million at quarter end.
Full Year Results
Consolidated revenue for 2023 was $592 million, an increase of 16% over 2022. This increase was primarily driven by an increase in test volume, a more favorable test mix in our Clinical Services segment, an increase in average unit price due to strategic reimbursement initiatives, and growth in our Advanced Diagnostics segment, primarily due by increased volume and higher billings across its portfolio. Net loss for 2023 was $88 million compared to net loss of $144 million in 2022. Adjusted EBITDA(2) for 2023 was positive $3 million compared to negative $48 million in 2022. Adjusted net loss(2) for 2023 was $15 million compared to adjusted net loss of $70 million in 2022.
2024 Financial Guidance
The Company also issued 2024 guidance(3) today (in millions).
|
|
|
FY 2023 |
|
FY 2024 Guidance |
|
YOY % Change from FY 2023 |
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|
|
|
Actual |
|
Low |
|
High |
|
Low |
|
High |
|
Consolidated revenue |
|
$592 |
|
$650 |
|
$660 |
|
10% |
|
12% |
|
Net loss |
|
$(88) |
|
$(72) |
|
$(66) |
|
18% |
|
25% |
|
Adjusted EBITDA |
|
$3 |
|
$21 |
|
$24 |
|
600% |
|
700% |
|
(1) |
Clinical testing excludes requisitions, tests, revenue and costs of revenue for Advanced Diagnostics. |
|
|
(2) |
The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net Loss, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Use of Non-GAAP Financial Measures.” See also the tables reconciling such measures to their closest GAAP equivalent. |
|
|
(3) |
The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company’s securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance. |
Conference Call
The Company has scheduled a webcast and conference call to discuss its fourth quarter and full year 2023 results on Tuesday, February 20, 2024 at 4:30 PM EDT. Interested investors should dial (888) 506-0062 (domestic) and (973) 528-0011 (international) at least five minutes prior to the call. The participant access code provided for this call is 822624. The webcast will be archived and available for replay shortly after the conclusion of the call. It may be accessed under the Investor Relations section of our website at ir.neogenomics.com.
About NeoGenomics, Inc.
NeoGenomics, Inc. specializes in cancer genetics testing and information services, providing one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company’s Advanced Diagnostics Division serves pharmaceutical clients in clinical trials and drug development.
NeoGenomics is committed to connecting patients with life altering therapies and trials. We believe that, together, with our partners, we can help patients with cancer today and the next person diagnosed tomorrow. In carrying out these commitments, NeoGenomics adheres to relevant data protection laws, provides transparency and choice to patients regarding the handling and use of their data through our Notice of Privacy Practices, and has invested in leading technologies to secure the data we maintain.
Headquartered in Fort Myers, FL, NeoGenomics operates CAP accredited and CLIA certified laboratories for full-service sample processing in Fort Myers, Florida; Aliso Viejo and San Diego, California; Research Triangle Park, North Carolina; and Houston, Texas; and a CAP accredited full-service, sample-processing laboratory in Cambridge, United Kingdom. NeoGenomics also has several, small, non-processing laboratory locations across the United States for providing analysis services. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and a pharmaceutical firm in Europe.
Forward Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “would,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” “guidance,” “plan,” “potential” and other words of similar meaning, although not all forward-looking statements include these words. This press release includes forward-looking statements. These forward-looking statements address various matters, including statements regarding improving operational efficiency, returning to profitable growth and its ongoing executive recruitment process. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company’s ability to identify and implement appropriate financial and operational initiatives to improve performance, to identify and recruit executive candidates, to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, and the risks identified under the heading “Risk Factors” contained in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the Company’s other filings with the Securities and Exchange Commission.
We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties. The forward-looking statements in this press release speak only as of the date of this document (unless another date is indicated), and we undertake no obligation to update or revise any of these statements. Our business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
|
NeoGenomics, Inc. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands) |
||||||||
|
|
|
As of December 31, |
||||||
|
|
|
2023 |
|
2022 |
||||
|
ASSETS |
|
|
|
|
||||
|
Current Assets |
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
342,488 |
|
$ |
263,180 |
||
|
Marketable securities, at fair value |
|
|
72,715 |
|
|
|
174,809 |
|
|
Accounts receivable, net |
|
|
131,227 |
|
|
|
119,711 |
|
|
Inventories |
|
|
24,156 |
|
|
|
24,277 |
|
|
Prepaid assets |
|
|
17,987 |
|
|
|
15,237 |
|
|
Other current assets |
|
|
8,239 |
|
|
|
8,077 |
|
|
Total current assets |
|
|
596,812 |
|
|
|
605,291 |
|
|
Property and equipment (net of accumulated depreciation of $158,211 and $131,930, respectively) |
|
|
92,012 |
|
|
|
102,499 |
|
|
Operating lease right-of-use assets |
|
|
91,769 |
|
|
|
96,109 |
|
|
Intangible assets, net |
|
|
373,128 |
|
|
|
408,260 |
|
|
Goodwill |
|
|
522,766 |
|
|
|
522,766 |
|
|
Other assets |
|
|
4,742 |
|
|
|
5,109 |
|
|
Total non-current assets |
|
|
1,084,417 |
|
|
|
1,134,743 |
|
|
Total assets |
|
$ |
1,681,229 |
|
|
$ |
1,740,034 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||||
|
Current liabilities |
|
|
|
|
||||
|
Accounts payable and other current liabilities |
|
$ |
90,694 |
|
|
$ |
83,278 |
|
|
Current portion of equipment financing obligations |
|
|
— |
|
|
|
70 |
|
|
Current portion of operating lease liabilities |
|
|
5,610 |
|
|
|
6,584 |
|
|
Total current liabilities |
|
|
96,304 |
|
|
|
89,932 |
|
|
Long-term liabilities |
|
|
|
|
||||
|
Convertible senior notes, net |
|
|
538,198 |
|
|
|
535,322 |
|
|
Operating lease liabilities |
|
|
67,871 |
|
|
|
68,952 |
|
|
Deferred income tax liabilities, net |
|
|
24,285 |
|
|
|
34,750 |
|
|
Other long-term liabilities |
|
|
13,034 |
|
|
|
13,055 |
|
|
Total long-term liabilities |
|
|
643,388 |
|
|
|
652,079 |
|
|
Total liabilities |
|
|
739,692 |
|
|
|
742,011 |
|
|
Stockholders’ equity |
|
|
|
|
||||
|
Total stockholders’ equity |
|
|
941,537 |
|
|
|
998,023 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,681,229 |
|
|
$ |
1,740,034 |
|
|
NeoGenomics, Inc. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in thousands, except per share amounts) |
||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
NET REVENUE |
|
|
|
|
|
|
|
|
||||||||
|
Clinical Services |
|
$ |
130,058 |
|
|
$ |
108,166 |
|
|
$ |
495,636 |
|
|
$ |
418,754 |
|
|
Advanced Diagnostics |
|
|
25,494 |
|
|
|
30,539 |
|
|
|
96,007 |
|
|
|
90,974 |
|
|
Total net revenue |
|
|
155,552 |
|
|
|
138,705 |
|
|
|
591,643 |
|
|
|
509,728 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
COST OF REVENUE |
|
|
87,964 |
|
|
|
81,880 |
|
|
|
347,039 |
|
|
|
321,832 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
GROSS PROFIT |
|
|
67,588 |
|
|
|
56,825 |
|
|
|
244,604 |
|
|
|
187,896 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
||||||||
|
General and administrative |
|
|
59,758 |
|
|
|
57,855 |
|
|
|
243,101 |
|
|
|
243,356 |
|
|
Research and development |
|
|
7,127 |
|
|
|
6,675 |
|
|
|
27,309 |
|
|
|
30,326 |
|
|
Sales and marketing |
|
|
18,072 |
|
|
|
17,142 |
|
|
|
70,842 |
|
|
|
67,321 |
|
|
Restructuring charges |
|
|
1,205 |
|
|
|
1,536 |
|
|
|
11,088 |
|
|
|
4,516 |
|
|
Total operating expenses |
|
|
86,162 |
|
|
|
83,208 |
|
|
|
352,340 |
|
|
|
345,519 |
|
|
LOSS FROM OPERATIONS |
|
|
(18,574 |
) |
|
|
(26,383 |
) |
|
|
(107,736 |
) |
|
|
(157,623 |
) |
|
Interest income |
|
|
(4,845 |
) |
|
|
(2,677 |
) |
|
|
(16,902 |
) |
|
|
(6,075 |
) |
|
Interest expense |
|
|
1,681 |
|
|
|
1,817 |
|
|
|
6,907 |
|
|
|
7,581 |
|
|
Other expense (income), net |
|
|
(124 |
) |
|
|
1 |
|
|
|
(644 |
) |
|
|
213 |
|
|
Loss before taxes |
|
|
(15,286 |
) |
|
|
(25,524 |
) |
|
|
(97,097 |
) |
|
|
(159,342 |
) |
|
Income tax benefit |
|
|
(960 |
) |
|
|
(2,837 |
) |
|
|
(9,129 |
) |
|
|
(15,092 |
) |
|
NET LOSS |
|
$ |
(14,326 |
) |
|
$ |
(22,687 |
) |
|
$ |
(87,968 |
) |
|
$ |
(144,250 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
$ |
(0.11 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.16 |
) |
|
Diluted |
|
$ |
(0.11 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.70 |
) |
|
$ |
(1.16 |
) |
|
|
|
|
|
|
|
|
|
|
||||||||
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
||||||||
|
Basic |
|
|
125,929 |
|
|
|
124,714 |
|
|
|
125,502 |
|
|
|
124,217 |
|
|
Diluted |
|
|
125,929 |
|
|
|
124,714 |
|
|
|
125,502 |
|
|
|
124,217 |
|
|
NeoGenomics, Inc. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited, in thousands) |
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|
|
|
Years Ended December 31, |
||||||
|
|
|
2023 |
|
2022 |
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
|
Net loss |
|
$ |
(87,968 |
) |
|
$ |
(144,250 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
||||
|
Depreciation |
|
|
37,450 |
|
|
|
35,372 |
|
|
Amortization of intangibles |
|
|
35,133 |
|
|
|
34,058 |
|
|
Non-cash stock-based compensation |
|
|
24,633 |
|
|
|
24,672 |
|
|
Non-cash operating lease expense |
|
|
9,235 |
|
|
|
9,775 |
|
|
Amortization of convertible debt discount and debt issue costs |
|
|
2,876 |
|
|
|
2,839 |
|
|
Loss on disposal of assets |
|
|
292 |
|
|
|
2,858 |
|
|
Gain on sale of assets held for sale |
|
|
— |
|
|
|
(2,048 |
) |
|
Impairment of long-lived assets |
|
|
1,703 |
|
|
|
718 |
|
|
Other adjustments |
|
|
186 |
|
|
|
1,714 |
|
|
Changes in assets and liabilities, net: |
|
|
(25,493 |
) |
|
|
(31,701 |
) |
|
Net cash used in operating activities |
|
$ |
(1,953 |
) |
|
$ |
(65,993 |
) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
|
Purchases of marketable securities |
|
|
(6,756 |
) |
|
|
(97,605 |
) |
|
Proceeds from sales and maturities of marketable securities |
|
|
112,215 |
|
|
|
116,915 |
|
|
Purchases of property and equipment |
|
|
(28,752 |
) |
|
|
(30,891 |
) |
|
Proceeds from assets held for sale |
|
|
— |
|
|
|
12,098 |
|
|
Net cash provided by investing activities |
|
$ |
76,707 |
|
|
$ |
517 |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
|
Repayment of equipment financing obligations |
|
|
(70 |
) |
|
|
(758 |
) |
|
Issuance of common stock, net |
|
|
4,624 |
|
|
|
12,587 |
|
|
Net cash provided by financing activities |
|
$ |
4,554 |
|
|
$ |
11,829 |
|
|
Net change in cash and cash equivalents |
|
$ |
79,308 |
|
|
$ |
(53,647 |
) |
|
|
|
|
|
|
||||
|
Cash and cash equivalents, beginning of year |
|
|
263,180 |
|
|
|
316,827 |
|
|
Cash, cash equivalents and restricted cash, end of year |
|
$ |
342,488 |
|
|
$ |
263,180 |
|
Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods and when comparing those same results to those published by our peers. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with U.S. GAAP financial results, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
“Adjusted EBITDA” is defined by NeoGenomics as net (loss) income from continuing operations before: (i) interest income and expense, (ii) tax (benefit) or expense, (iii) depreciation and amortization expense, (iv) non-cash stock-based compensation expense, and, if applicable in a reporting period, (v) acquisition and integration related expenses, (vi) CEO transition costs, (vii) restructuring costs, and (viii) other significant or non-operating expenses, net.
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
“Adjusted cost of revenue” is defined by NeoGenomics as cost of revenue before amortization expense of acquired intangible assets.
“Adjusted gross profit” is defined by NeoGenomics as total revenue less adjusted cost of revenue.
“Adjusted gross profit margin” is defined by NeoGenomics as adjusted cost of revenue divided by total revenue.
Non-GAAP Adjusted Net (Loss) Income
“Adjusted net (loss) income” is defined by NeoGenomics as net (loss) income from continuing operations plus: (i) non-cash amortization of intangible assets, (ii) non-cash stock-based compensation expense, and, if applicable in a reporting period, (iii) acquisition and integration related expenses, (iv) CEO transition costs, (v) restructuring costs, and (vi) other significant or non-operating expenses, net. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method unless the effect of this adjustment on both the adjusted net (loss) income and weighted average diluted common shares outstanding would be anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted net (loss) income will also be adjusted to reverse any recognized interest expense (including any amortization of discounts) on the convertible notes using the if-converted method.
Non-GAAP Adjusted Diluted EPS
“Adjusted diluted EPS” is defined by NeoGenomics as adjusted net (loss) income divided by adjusted diluted shares outstanding. If GAAP net (loss) income is negative and adjusted net (loss) income is positive, adjusted diluted shares outstanding will also include any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. If GAAP net (loss) income is positive and adjusted net (loss) income is negative, adjusted diluted shares outstanding will exclude any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period.
|
Reconciliation of GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA (Unaudited, in thousands) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
|
Net loss (GAAP) |
$ |
(14,326 |
) |
|
$ |
(22,687 |
) |
|
$ |
(87,968 |
) |
|
$ |
(144,250 |
) |
|
Adjustments to net loss: |
|
|
|
|
|
|
|
||||||||
|
Interest income |
|
(4,845 |
) |
|
|
(2,677 |
) |
|
|
(16,902 |
) |
|
|
(6,075 |
) |
|
Interest expense |
|
1,681 |
|
|
|
1,817 |
|
|
|
6,907 |
|
|
|
7,581 |
|
|
Income tax benefit |
|
(960 |
) |
|
|
(2,837 |
) |
|
|
(9,129 |
) |
|
|
(15,092 |
) |
|
Depreciation |
|
9,578 |
|
|
|
9,478 |
|
|
|
37,450 |
|
|
|
35,372 |
|
|
Amortization of intangibles |
|
8,783 |
|
|
|
8,588 |
|
|
|
35,133 |
|
|
|
34,058 |
|
|
EBITDA (non-GAAP) |
|
(89 |
) |
|
|
(8,318 |
) |
|
|
(34,509 |
) |
|
|
(88,406 |
) |
|
Further adjustments to EBITDA: |
|
|
|
|
|
|
|
||||||||
|
Acquisition and integration related expenses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,479 |
|
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
500 |
|
|
|
4,518 |
|
|
Non-cash stock-based compensation expense |
|
6,990 |
|
|
|
4,662 |
|
|
|
24,633 |
|
|
|
24,672 |
|
|
Restructuring charges |
|
1,205 |
|
|
|
1,536 |
|
|
|
11,088 |
|
|
|
4,516 |
|
|
Other significant expenses (income), net(4) |
|
1,242 |
|
|
|
952 |
|
|
|
1,774 |
|
|
|
4,211 |
|
|
Adjusted EBITDA (non-GAAP) |
$ |
9,348 |
|
|
$ |
(1,168 |
) |
|
$ |
3,486 |
|
|
$ |
(48,010 |
) |
|
_________________ |
||
|
(4) |
For the three months ended December 31, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the three months ended December 31, 2022, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the year ended December 31, 2023, other significant (income) expenses, net, includes fees related to a regulatory matter and other non-recurring items. For the year ended December 31, 2022, other significant (income) expenses, net, includes fees related to a regulatory matter, moving costs, a gain on the sale of a building and other non-recurring items. |
|
|
Reconciliation of Segment and Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit Margin to Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin (Unaudited, dollars in thousands) |
||||||||||||||||||||||
|
|
|
Three Months Ended December 31, |
|
Years Ended December 31, |
||||||||||||||||||
|
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||||||||
|
Clinical Services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total revenue (GAAP) |
|
$ |
130,058 |
|
|
$ |
108,166 |
|
|
20.2 |
% |
|
$ |
495,636 |
|
|
$ |
418,754 |
|
|
18.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of revenue (GAAP) |
|
$ |
74,027 |
|
|
$ |
64,180 |
|
|
15.3 |
% |
|
$ |
287,059 |
|
|
$ |
261,742 |
|
|
9.7 |
% |
|
Adjustments to cost of revenue(5) |
|
|
(4,489 |
) |
|
|
(4,264 |
) |
|
|
|
|
(17,280 |
) |
|
|
(17,054 |
) |
|
|
||
|
Adjusted cost of revenue (non-GAAP) |
|
$ |
69,538 |
|
|
$ |
59,916 |
|
|
16.1 |
% |
|
$ |
269,779 |
|
|
$ |
244,688 |
|
|
10.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit (GAAP) |
|
$ |
56,031 |
|
|
$ |
43,986 |
|
|
27.4 |
% |
|
$ |
208,577 |
|
|
$ |
157,012 |
|
|
32.8 |
% |
|
Adjusted gross profit (non-GAAP) |
|
$ |
60,520 |
|
|
$ |
48,250 |
|
|
25.4 |
% |
|
$ |
225,857 |
|
|
$ |
174,066 |
|
|
29.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit margin (GAAP) |
|
|
43.1 |
% |
|
|
40.7 |
% |
|
|
|
|
42.1 |
% |
|
|
37.5 |
% |
|
|
||
|
Adjusted gross profit margin (non-GAAP) |
|
|
46.5 |
% |
|
|
44.6 |
% |
|
|
|
|
45.6 |
% |
|
|
41.6 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Advanced Diagnostics: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total revenue (GAAP) |
|
$ |
25,494 |
|
|
$ |
30,539 |
|
|
(16.5 |
)% |
|
$ |
96,007 |
|
|
$ |
90,974 |
|
|
5.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of revenue (GAAP) |
|
$ |
13,937 |
|
|
$ |
17,700 |
|
|
(21.3 |
)% |
|
$ |
59,980 |
|
|
$ |
60,090 |
|
|
(0.2 |
)% |
|
Adjustments to cost of revenue(6) |
|
|
(590 |
) |
|
|
(590 |
) |
|
|
|
|
(2,358 |
) |
|
|
(2,358 |
) |
|
|
||
|
Adjusted cost of revenue (non-GAAP) |
|
$ |
13,347 |
|
|
$ |
17,110 |
|
|
(22.0 |
)% |
|
$ |
57,622 |
|
|
$ |
57,732 |
|
|
(0.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit (GAAP) |
|
$ |
11,557 |
|
|
$ |
12,839 |
|
|
(10.0 |
)% |
|
$ |
36,027 |
|
|
$ |
30,884 |
|
|
16.7 |
% |
|
Adjusted gross profit (non-GAAP) |
|
$ |
12,147 |
|
|
$ |
13,429 |
|
|
(9.5 |
)% |
|
$ |
38,385 |
|
|
$ |
33,242 |
|
|
15.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit margin (GAAP) |
|
|
45.3 |
% |
|
|
42.0 |
% |
|
|
|
|
37.5 |
% |
|
|
33.9 |
% |
|
|
||
|
Adjusted gross profit margin (non-GAAP) |
|
|
47.6 |
% |
|
|
44.0 |
% |
|
|
|
|
40.0 |
% |
|
|
36.5 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total revenue (GAAP) |
|
$ |
155,552 |
|
|
$ |
138,705 |
|
|
12.1 |
% |
|
$ |
591,643 |
|
|
$ |
509,728 |
|
|
16.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Cost of revenue (GAAP) |
|
$ |
87,964 |
|
|
$ |
81,880 |
|
|
7.4 |
% |
|
$ |
347,039 |
|
|
$ |
321,832 |
|
|
7.8 |
% |
|
Adjustments to cost of revenue(5)(6) |
|
|
(5,079 |
) |
|
|
(4,854 |
) |
|
|
|
|
(19,638 |
) |
|
|
(19,412 |
) |
|
|
||
|
Adjusted cost of revenue (non-GAAP) |
|
$ |
82,885 |
|
|
$ |
77,026 |
|
|
7.6 |
% |
|
$ |
327,401 |
|
|
$ |
302,420 |
|
|
8.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit (GAAP) |
|
$ |
67,588 |
|
|
$ |
56,825 |
|
|
18.9 |
% |
|
$ |
244,604 |
|
|
$ |
187,896 |
|
|
30.2 |
% |
|
Adjusted gross profit (non-GAAP) |
|
$ |
72,667 |
|
|
$ |
61,679 |
|
|
17.8 |
% |
|
$ |
264,242 |
|
|
$ |
207,308 |
|
|
27.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Gross profit margin (GAAP) |
|
|
43.5 |
% |
|
|
41.0 |
% |
|
|
|
|
41.3 |
% |
|
|
36.9 |
% |
|
|
||
|
Adjusted gross profit margin (non-GAAP) |
|
|
46.7 |
% |
|
|
44.5 |
% |
|
|
|
|
44.7 |
% |
|
|
40.7 |
% |
|
|
||
Contacts
NeoGenomics, Inc.
Kendra Sweeney
Vice President, Investor Relations and ESG
kendra.sweeney@neogenomics.com
T: +1-239-877-7474