Genetic Testing Firm GeneDx Reports Narrower Q3 Loss As Revenues Surge, Lifts Annual Guidance

GeneDx Holdings WGS stock is trading higher on Tuesday.

The genetic testing company reported a third-quarter EPS loss of $(0.31), compared to $(1.64) reported a year ago, beating the consensus loss of $(0.50).

The company reported sales of $76.87 million, up 44% year over year, beating the consensus of $64.99 million.

Exome and genome test revenue grew to $60.0 million, an increase of 77% year-over-year and 18% sequentially.

Exome and genome test results volume grew to 19,262, an increase of 46% year-over-year and 7% sequentially.

Also Read: GeneDx Leads Russell 2000 This Year As It Shifts To More Comprehensive Genetic Testing

Adjusted gross margin expanded to 64%, up from 48% a year ago.

“We delivered 77% growth on exome and genome revenues in Q3 and have reached the point of profitability, a significant milestone in our company’s history,” said Katherine Stueland, CEO of GeneDx. 

“Once again, our quarterly performance exceeded our top and bottom-line expectations. The third quarter marked our 10th consecutive quarter of cash flow improvement, and we achieved positive adjusted net income ahead of our prior target,” said Kevin Feeley, CFO of GeneDx. 

Adjusted net income reached $1.2 million, an improvement of 106% year-over-year and 143% sequentially.

Guidance: GeneDx expects 2024 revenues of $284 million – $290 million versus prior guidance of $255 million – $265 million and the consensus of $263.37 million.

Price Action: WGS stock is up 46.8% at $82.28 at last check Tuesday.

Image via Shutterstock

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