GeneDx Holdings Corp. (Nasdaq: WGS), a leader in delivering
improved health outcomes through genomic and clinical insights,
today reported its financial results for the third quarter of 2023.
"We have focused our entire company’s efforts on
driving exome and genome utilization and improving our overall
operating efficiency, and the positive results from this quarter
demonstrate that we have both a strong growth trajectory with a
significant improvement in our cash management,” said Katherine
Stueland, President and Chief Executive Officer of GeneDx. “Thanks
to our partners at Perceptive, we have fortified our balance sheet,
and with the action we have taken to remove an additional $40M in
annual costs, we reiterate our turn to profitability in 2025.”
Continuing
Operations1 Third
Quarter Financial Results
Results for GeneDx’s continuing operations
reported today exclude the results of the discontinued Legacy Sema4
diagnostics testing business.
- Revenue: Revenue
from continuing operations for the third quarter of 2023 was $50.4
million, compared to $47.2 million in the third quarter of 2022.
Adjusting for a one-time favorable appeal benefit in the third
quarter of 2022, revenues from continuing operations for the third
quarter of 2023 increased 14% year-over-year. Revenues from whole
exome and genome tests were $34 million compared to $24 million in
the third quarter of 2022, representing an increase of 42%
year-over-year, and an increase of 18% quarter-over-quarter.
Adjusting for the same one-time favorable appeal benefit in the
third quarter of 2022, revenues from whole exome and genome tests
increased 61% year-over-year.
- Test Volume: Total
tests resulted in the third quarter of 2023 were nearly 58,000,
compared to nearly 45,000 for the third quarter of 2022. Total
whole exome and whole genome tests resulted were 13,216, an
increase of 71% year-over-year, and an increase of 11%
quarter-over-quarter.
- Gross
Margin: Adjusted gross margin from continuing operations
expanded to 48% in the third quarter of 2023, up sequentially from
37% in the second quarter of 2023. Adjusted gross margins for the
whole exome sequencing continue to operate in excess of 60%.
Total Company
Third Quarter Financial
Results1
Total Company results reported today for the
third quarter of 2023 include GeneDx’s continuing operations and
the financial impacts of exited Legacy Sema4 business
activities.
- Cash Position:
Cash, cash equivalents, marketable securities and restricted cash
were $115 million as of September 30, 2023. Total Company
use of cash for the third quarter of 2023 was $42 million, an
improvement of 51% year-over-year and 21% sequentially. The use of
cash in the third quarter included final payments of approximately
$15 million to discharge legacy Sema4 operating payables in July
and $2 million of severance payments. Excluding these items,
representative continuing operations cash burn was $25 million in
the third quarter of 2023.
- Net
Loss1: Total Company net
loss for the third quarter of 2023 narrowed to $42.3 million. Total
Company adjusted net loss for the third quarter of 2023 narrowed to
$21.2 million2, an improvement of 70% year-over-year and 45%
sequentially.
-
Revenue1:
Revenue for the third quarter of 2023 was $53.3 million, compared
to $83.2 million in the third quarter of 2022.
- Gross
Margin1: Gross margin
for the third quarter of 2023 was 47%. Adjusted gross margin for
the third quarter of 2023 was 51%.
Updated GeneDx Full Year
2023 Guidance
GeneDx has updated its full year 2023 guidance.
The continuing operations of GeneDx, excluding the financial
impacts from the discontinued Legacy Sema4 diagnostic testing
business, are expected to:
- Drive full year 2023 revenues of
$187-$192 million (updated from previous guidance of $205-$220
million);
- Expand gross margin profile in 2023
and beyond (unchanged);
- Use $75 to $79 million of net cash
for the second half of 2023 (updated from previous guidance of
$75-$85 million), inclusive of servicing obligations of the exited
business activities (unchanged); and
- Turn profitable
in 2025 (unchanged)
Recent Business Highlights
Commercial Updates
- Appointed Melanie Duquette as Chief
Growth Officer to drive commercial excellence.
- Surpassed the milestone of more
than 500,000 clinical exomes sequenced by GeneDx. Approximately two
thirds of all GeneDx exome cases since inception have been
parent-child-trios. With each case we enhance the robustness of our
proprietary dataset in order to enable more definitive diagnoses
for more patients.
- Continued to
expand data solution partnerships by signing three recent
agreements with companies focused on developing targeted therapies
for patients with rare diseases.
Financial & Corporate Growth
- On October 27, 2023, entered into a
new, five-year senior secured credit facility with Perceptive
Advisors. The agreement provides access of up to $75 million,
consisting of an initial tranche of $50 million, subject to closing
conditions, and, a subsequent tranche for an additional $25
million, subject to certain timelines and other defined criteria.
- Interest is payable in cash on the
outstanding principal amount at a rate per annum equal to the sum
of the applicable secured overnight financing rate (SOFR), plus
7.5%.
- Under the terms of the agreement,
Perceptive will be issued warrants to purchase 800,000 Class A
shares of the Company’s stock on the Closing Date, with an exercise
price equal to the 10-day VWAP immediately preceding the Closing
Date; which is $3.17. Upon borrowing of the subsequent tranche,
Perceptive will be issued warrants to purchase an additional
400,000 Class A shares. GeneDx intends to use the proceeds
primarily for general corporate purposes, including additions to
working capital and strategic commercial investment
opportunities.
- On October 30,
2023, enacted a plan remove approximately $40 million in annual
operating expense, including but not limited to, a work force
reduction of approximately 10%.
Scientific Updates
- Contributed to 20 posters to be
presented at the upcoming American Society of Human Genetics (ASHG)
Annual Meeting 2023 taking place in Washington, D.C. from November
1 through 5, 2023. The presentations highlight GeneDx’s
capabilities in genetic analysis to generate clinical insights that
can lead to improved and faster diagnoses and improved outcomes for
patients.
- Announced that
Genetics in Medicine has published a peer-reviewed research
analysis resulting from a multi-lab collaboration involving GeneDx.
The study, “The landscape of reported VUS in multi-gene panel and
genomic testing: Time for a change,” evaluated the rate of
inconclusive genetic variants, or variants of uncertain
significance (VUS). Study findings concluded that VUS are reported
more frequently on multi-gene panels (32.6%) than exome and genome
sequencing (22.5%).
1 The unadjusted and adjusted
results from continuing operations for the applicable quarters
include the combination of results from the Legacy GeneDx
diagnostic business with the data and information business of
Legacy Sema4, and exclude the results of the discontinued Legacy
Sema4 diagnostic testing business. Actual results include GeneDx’s
continuing operations and the financial impacts of exited Legacy
Sema4 business activities.
2 Adjusted gross margin and
adjusted net loss are non-GAAP financial measures. See appendix for
a reconciliation of GAAP to Non-GAAP figures presented.
Webcast and Conference Call
Details
GeneDx will host a conference call today,
October 30, 2023, at 4:30 p.m. Eastern Time. Investors
interested in listening to the conference call are required to
register online. A live and archived webcast of the event will be
available on the “Events” section of the GeneDx investor relations
website at https://ir.genedx.com/.
Forward-Looking Statements
This press release contains certain
forward-looking statements within the meaning of the federal
securities laws, including statements regarding our future
performance and our market opportunity, including our expected full
year 2023 reported revenue guidance, our expectations regarding our
gross margin profile in 2023 and beyond, our use of cash and our
cash burn in 2023 and our turning profitable in 2025, our
expectations for our growth and future investment in our business,
our expectations regarding our plans to pursue new strategic
direction, improve our operational efficiency and reduce our cash
burn and our ability to scale to profitability, the associated cost
savings of our business exits and impact on our gross margins.
These forward-looking statements generally are identified by the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “strategy,” “future,” “opportunity,” “plan,” “may,”
“should,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions and, as a
result, are subject to risks and uncertainties. Many factors could
cause actual future events to differ materially from the
forward-looking statements in this press release, including but not
limited to: (i) our ability to implement business plans, goals and
forecasts, and identify and realize additional opportunities, (ii)
the risk of downturns and a changing regulatory landscape in the
highly competitive healthcare industry, (iii) the size and growth
of the market in which we operate, (iv) our ability to pursue our
new strategic direction, and (vi) our ability to enhance our
artificial intelligence tools that we use in our clinical
interpretation platform. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the “Risk Factors”
section of our Annual Report on Form 10-K for the fiscal year ended
December 31, 2022, filed with the U.S. Securities and Exchange
Commission (the “SEC”) on March 16, 2023, and other documents filed
by us from time to time with the SEC. These filings identify and
address other important risks and uncertainties that could cause
actual events and results to differ materially from those contained
in the forward-looking statements. Forward-looking statements speak
only as of the date they are made. Readers are cautioned not to put
undue reliance on forward-looking statements, and we assume no
obligation and do not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise. We do not give any assurance that we
will achieve our expectations.
About GeneDx
GeneDx (Nasdaq: WGS) delivers personalized and
actionable health insights to inform diagnosis, direct treatment
and improve drug discovery. The company is uniquely positioned to
accelerate the use of genomic and large-scale clinical information
to enable precision medicine as the standard of care. GeneDx is at
the forefront of transforming healthcare through its
industry-leading exome and genome testing and interpretation,
fueled by one of the world’s largest rare disease data sets. For
more information, please visit genedx.com and connect with us on
LinkedIn, Facebook, Twitter and Instagram.
Volume and revenue from Continuing Operations in
the table below include the combination of the Legacy GeneDx
diagnostic business with the data and information business of
Legacy Sema4. These select metrics are presented for illustrative
purposes only and are not necessarily indicative of results that
may occur in the future.
Volume & Revenue from Continuing
Operations
|
3Q23 |
|
2Q23 |
|
1Q23 |
|
4Q22 |
|
3Q22 |
Volumes |
|
|
|
|
|
|
|
|
|
Whole Exome, Whole Genome |
|
13,216 |
|
|
11,855 |
|
|
8,705 |
|
|
7,862 |
|
|
7,722 |
Exome based Panels |
|
2,922 |
|
|
3,472 |
|
|
3,136 |
|
|
3,013 |
|
|
2,983 |
Hereditary Cancer |
|
8,556 |
|
|
7,142 |
|
|
7,120 |
|
|
6,069 |
|
|
5,445 |
Other individual gene tests and multi-gene disease panels |
|
32,939 |
|
|
32,459 |
|
|
33,817 |
|
|
31,891 |
|
|
28,764 |
Total |
|
57,633 |
|
|
54,928 |
|
|
52,778 |
|
|
48,835 |
|
|
44,914 |
|
|
|
|
|
|
|
|
|
|
Revenue ($ millions) |
|
|
|
|
|
|
|
|
|
Whole Exome, Whole Genome |
$ |
34.0 |
|
$ |
28.7 |
|
$ |
22.4 |
|
$ |
23.3 |
|
$ |
24.0 |
Exome based Panels |
|
1.7 |
|
|
2.0 |
|
|
2.0 |
|
|
2.0 |
|
|
2.3 |
Hereditary Cancer |
|
4.5 |
|
|
3.8 |
|
|
4.3 |
|
|
4.4 |
|
|
3.5 |
Other individual gene tests and multi-gene disease panels |
|
8.8 |
|
|
8.6 |
|
|
10.6 |
|
|
14.3 |
|
|
15.6 |
Data information |
|
1.4 |
|
|
2.1 |
|
|
1.3 |
|
|
1.9 |
|
|
1.8 |
Total |
$ |
50.4 |
|
$ |
45.2 |
|
$ |
40.6 |
|
$ |
45.9 |
|
$ |
47.2 |
Unaudited select financial information is
calculated based on the combination of the Legacy GeneDx diagnostic
business with the data and information business of Legacy Sema4.
This unaudited financial information is presented for illustrative
purposes only and is not necessarily indicative of results that may
occur in the future.
Unaudited Select Financial Information (in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2023 |
|
Three months ended June 30, 2023 |
|
GeneDx ContinuingOperations |
|
Legacy Sema4 Discontinued Operations |
|
Combined GeneDx and Sema4 |
|
GeneDx Continuing Operations |
|
Legacy Sema4 Discontinued Operations |
|
Combined GeneDx and Sema4 |
Revenue |
$ |
50,350 |
|
|
$ |
2,953 |
|
|
$ |
53,303 |
|
|
$ |
45,226 |
|
|
$ |
3,480 |
|
|
$ |
48,706 |
|
Adjusted Cost of Services |
|
26,079 |
|
|
|
225 |
|
|
|
26,304 |
|
|
|
28,452 |
|
|
|
— |
|
|
|
28,452 |
|
Adjusted Gross Margin |
$ |
24,271 |
|
|
$ |
2,728 |
|
|
$ |
26,999 |
|
|
$ |
16,774 |
|
|
$ |
3,480 |
|
|
$ |
20,254 |
|
Adjusted Gross Margin % |
|
48.2 |
% |
|
|
92.4 |
% |
|
|
50.7 |
% |
|
|
37.1 |
% |
|
|
— |
% |
|
|
41.6 |
% |
|
Three Months Ended September 30, |
|
Three months ended |
|
2023 |
|
2022 |
|
June 30, 2023 |
Revenue |
|
|
|
|
|
Diagnostic test revenue |
$ |
51,955 |
|
|
$ |
81,490 |
|
|
$ |
46,635 |
|
Other revenue |
|
1,348 |
|
|
|
1,744 |
|
|
|
2,071 |
|
Total revenue |
|
53,303 |
|
|
|
83,234 |
|
|
|
48,706 |
|
Cost of service |
|
28,044 |
|
|
|
69,685 |
|
|
|
29,949 |
|
Gross profit (loss) |
|
25,259 |
|
|
|
13,549 |
|
|
|
18,757 |
|
Gross margin |
|
47.4 |
% |
|
|
16.3 |
% |
|
|
38.5 |
% |
|
|
|
|
|
|
Depreciation and amortization |
$ |
1,613 |
|
|
$ |
5,203 |
|
|
$ |
1,233 |
|
Stock-based compensation |
|
75 |
|
|
|
1,477 |
|
|
|
251 |
|
Restructuring costs |
|
52 |
|
|
|
1,497 |
|
|
|
13 |
|
Adjusted gross profit (loss) |
$ |
26,999 |
|
|
$ |
21,726 |
|
|
$ |
20,254 |
|
Adjusted gross margin |
|
50.7 |
% |
|
|
26.1 |
% |
|
|
41.6 |
% |
|
|
|
|
|
|
Research & Development |
$ |
14,288 |
|
|
$ |
13,354 |
|
|
$ |
17,138 |
|
Depreciation and amortization |
|
283 |
|
|
|
1,973 |
|
|
|
4,656 |
|
Stock-based compensation |
|
(533 |
) |
|
|
(8,164 |
) |
|
|
(675 |
) |
Restructuring costs |
|
970 |
|
|
|
1,362 |
|
|
|
815 |
|
Adjusted Research & Development |
$ |
13,568 |
|
|
$ |
18,183 |
|
|
$ |
12,342 |
|
|
|
|
|
|
|
Selling & Marketing |
$ |
16,763 |
|
|
$ |
34,383 |
|
|
$ |
15,182 |
|
Depreciation and amortization |
|
1,225 |
|
|
|
1,068 |
|
|
|
1,225 |
|
Stock-based compensation |
|
(115 |
) |
|
|
2,050 |
|
|
|
(143 |
) |
Restructuring costs |
|
416 |
|
|
|
1,863 |
|
|
|
326 |
|
Adjusted Selling & Marketing |
$ |
15,237 |
|
|
$ |
29,402 |
|
|
$ |
13,774 |
|
|
|
|
|
|
|
General and Administrative |
$ |
26,099 |
|
|
$ |
54,931 |
|
|
$ |
37,341 |
|
Depreciation and amortization |
|
5,551 |
|
|
|
2,258 |
|
|
|
3,218 |
|
Stock-based compensation |
|
1,003 |
|
|
|
5,910 |
|
|
|
675 |
|
Restructuring costs |
|
753 |
|
|
|
4,271 |
|
|
|
483 |
|
Adjusted General and Administrative |
$ |
18,792 |
|
|
$ |
42,492 |
|
|
$ |
32,965 |
|
|
|
|
|
|
|
Impairment Loss |
$ |
8,282 |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
Other, net |
$ |
2,794 |
|
|
$ |
1,697 |
|
|
$ |
718 |
|
|
|
|
|
|
|
Operating expenses |
$ |
68,226 |
|
|
$ |
104,365 |
|
|
$ |
70,379 |
|
Depreciation and amortization |
|
(7,059 |
) |
|
|
(5,299 |
) |
|
|
(9,099 |
) |
Stock-based compensation |
|
(355 |
) |
|
|
204 |
|
|
|
143 |
|
Restructuring costs |
|
(2,139 |
) |
|
|
(7,496 |
) |
|
|
(1,624 |
) |
Impairment loss |
|
(8,282 |
) |
|
|
— |
|
|
|
— |
|
Other |
|
(1,012 |
) |
|
|
— |
|
|
|
334 |
|
Adjusted operating expenses |
$ |
49,379 |
|
|
$ |
91,774 |
|
|
$ |
60,133 |
|
|
Three Months Ended September 30, |
|
Three months ended |
|
2023 |
|
2022 |
|
June 30, 2023 |
Net income (loss) |
$ |
(42,286 |
) |
|
$ |
(77,581 |
) |
|
$ |
(46,719 |
) |
Stock-based compensation expense |
|
430 |
|
|
|
1,273 |
|
|
|
108 |
|
Depreciation and amortization |
|
8,672 |
|
|
|
10,502 |
|
|
|
10,332 |
|
Impairment loss |
|
8,282 |
|
|
|
— |
|
|
|
— |
|
Change in fair market value of warrant and earn-out contingent
liabilities |
|
(590 |
) |
|
|
(12,978 |
) |
|
|
(3,547 |
) |
Restructuring |
|
2,191 |
|
|
|
8,993 |
|
|
|
1,637 |
|
Gain on sale of assets |
|
— |
|
|
|
— |
|
|
|
(2,954 |
) |
Provision for excess and obsolete inventory associated with Legacy
Sema4 |
|
1,014 |
|
|
|
— |
|
|
|
2,620 |
|
Other expense (income), net |
|
1,134 |
|
|
|
— |
|
|
|
(86 |
) |
Adjusted net loss |
$ |
(21,153 |
) |
|
$ |
(69,791 |
) |
|
$ |
(38,609 |
) |
|
|
|
|
|
|
Interest expense, net |
|
(1,053 |
) |
|
|
(190 |
) |
|
|
(1,074 |
) |
Income tax benefit |
|
(172 |
) |
|
|
(65 |
) |
|
|
(196 |
) |
Adjusted EBITDA |
$ |
(22,378 |
) |
|
$ |
(70,046 |
) |
|
$ |
(39,879 |
) |
|
GeneDx Holdings
Corp.Condensed Consolidated Balance Sheets
(Unaudited)(in thousands, except share and per
share amounts)
|
September 30,2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
87,387 |
|
|
$ |
123,933 |
|
Marketable securities |
|
26,910 |
|
|
|
— |
|
Accounts receivable |
|
31,908 |
|
|
|
42,634 |
|
Due from related parties |
|
498 |
|
|
|
708 |
|
Inventory |
|
9,349 |
|
|
|
13,665 |
|
Prepaid expenses and other current assets |
|
15,761 |
|
|
|
31,682 |
|
Total current assets |
|
171,813 |
|
|
|
212,622 |
|
Operating lease right-of-use assets |
|
27,536 |
|
|
|
32,758 |
|
Property and equipment, net |
|
35,746 |
|
|
|
51,527 |
|
Intangible assets, net |
|
176,131 |
|
|
|
186,650 |
|
Other assets1 |
|
6,059 |
|
|
|
7,385 |
|
Total assets |
$ |
417,285 |
|
|
$ |
490,942 |
|
Liabilities and Stockholders’ Equity |
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued expenses |
$ |
38,873 |
|
|
$ |
84,878 |
|
Due to related parties |
|
3,970 |
|
|
|
3,593 |
|
Short-term lease liabilities |
|
3,677 |
|
|
|
6,121 |
|
Other current liabilities |
|
21,846 |
|
|
|
49,705 |
|
Total current liabilities |
|
68,366 |
|
|
|
144,297 |
|
Long-term debt, net of current portion |
|
6,052 |
|
|
|
6,250 |
|
Long-term lease liabilities |
|
63,889 |
|
|
|
60,013 |
|
Other liabilities |
|
22,660 |
|
|
|
24,018 |
|
Deferred taxes |
|
2,060 |
|
|
|
2,659 |
|
Total liabilities |
|
163,027 |
|
|
|
237,237 |
|
Commitments and contingencies (Note 10) |
|
|
|
Stockholders’ equity: |
|
|
|
Preferred stock |
$ |
— |
|
|
$ |
— |
|
Class A common stock |
|
2 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,528,671 |
|
|
|
1,378,125 |
|
Accumulated deficit |
|
(1,274,415 |
) |
|
$ |
(1,124,421 |
) |
Total stockholders’ equity |
|
254,258 |
|
|
|
253,705 |
|
Total liabilities and stockholders’ equity |
$ |
417,285 |
|
|
$ |
490,942 |
|
1 Other assets includes $900 thousand in restricted
cash.
GeneDx Holdings
Corp.Condensed Consolidated Statements of
Operations and Comprehensive Loss (Unaudited)(in
thousands, except share and per share amounts)
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
|
|
|
|
|
|
|
Diagnostic test revenue |
$ |
51,955 |
|
|
$ |
81,490 |
|
|
$ |
140,440 |
|
|
$ |
167,989 |
|
Other revenue |
|
1,348 |
|
|
|
1,744 |
|
|
|
4,708 |
|
|
|
5,355 |
|
Total revenue |
|
53,303 |
|
|
|
83,234 |
|
|
|
145,148 |
|
|
|
173,344 |
|
Cost of
services |
|
28,044 |
|
|
|
69,685 |
|
|
|
85,896 |
|
|
|
183,768 |
|
Gross profit (loss) |
|
25,259 |
|
|
|
13,549 |
|
|
|
59,252 |
|
|
|
(10,424 |
) |
Research and development |
|
14,288 |
|
|
|
13,354 |
|
|
|
46,018 |
|
|
|
61,837 |
|
Selling and marketing |
|
16,763 |
|
|
|
34,383 |
|
|
|
45,397 |
|
|
|
92,839 |
|
General and administrative |
|
26,099 |
|
|
|
54,931 |
|
|
|
107,129 |
|
|
|
172,958 |
|
Impairment loss |
|
8,282 |
|
|
|
— |
|
|
|
10,402 |
|
|
|
— |
|
Other operating expenses, net |
|
2,794 |
|
|
|
1,697 |
|
|
|
5,259 |
|
|
|
4,712 |
|
Loss from operations |
|
(42,967 |
) |
|
|
(90,816 |
) |
|
|
(154,953 |
) |
|
|
(342,770 |
) |
|
|
|
|
|
|
|
|
Non-operating income (expenses), net |
|
|
|
|
|
|
|
Change in fair market value of warrant and earn-out contingent
liabilities |
|
590 |
|
|
|
12,978 |
|
|
|
684 |
|
|
|
54,350 |
|
Interest income (expense), net |
|
1,053 |
|
|
|
190 |
|
|
|
2,092 |
|
|
|
(999 |
) |
Other (expense) income, net |
|
(1,134 |
) |
|
|
2 |
|
|
|
1,668 |
|
|
|
58 |
|
Total non-operating income, net |
|
509 |
|
|
|
13,170 |
|
|
|
4,444 |
|
|
|
53,409 |
|
Loss before income taxes |
|
(42,458 |
) |
|
|
(77,646 |
) |
|
|
(150,509 |
) |
|
|
(289,361 |
) |
Income tax benefit |
|
172 |
|
|
|
65 |
|
|
|
515 |
|
|
|
49,142 |
|
Net loss and comprehensive loss |
$ |
(42,286 |
) |
|
$ |
(77,581 |
) |
|
$ |
(149,994 |
) |
|
$ |
(240,219 |
) |
|
|
|
|
|
|
|
|
Weighted average shares outstanding of Class A common stock |
|
25,788,747 |
|
|
|
11,538,308 |
|
|
|
23,777,327 |
|
|
|
9,741,250 |
|
Basic and diluted net loss per share, Class A common stock |
$ |
(1.64 |
) |
|
$ |
(6.72 |
) |
|
$ |
(6.31 |
) |
|
$ |
(24.66 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GeneDx Holdings
Corp.Condensed Consolidated Statements of Cash
Flows (Unaudited)(in thousands)
|
Nine months ended September 30, |
|
2023 |
|
2022 |
Operating activities |
|
|
|
Net loss |
$ |
(149,994 |
) |
|
$ |
(240,219 |
) |
|
|
|
|
Adjustments to reconcile net loss to net cash used in
operating activities: |
|
|
|
Depreciation and amortization expense |
|
27,640 |
|
|
|
25,269 |
|
Impairment loss |
|
10,402 |
|
|
|
— |
|
Gain on sale of assets |
|
(2,954 |
) |
|
|
— |
|
Stock-based compensation expense |
|
586 |
|
|
|
41,553 |
|
Gain on debt forgiveness |
|
(2,750 |
) |
|
|
— |
|
Change in fair value of warrant and earn-out contingent
liabilities |
|
(685 |
) |
|
|
(54,350 |
) |
Deferred tax benefit |
|
(515 |
) |
|
|
(49,176 |
) |
Provision for excess and obsolete inventory |
|
3,634 |
|
|
|
732 |
|
Third party payor reserve release |
|
(6,848 |
) |
|
|
— |
|
Non-cash lease expense |
|
684 |
|
|
|
1,112 |
|
Amortization of deferred debt issuance costs |
|
387 |
|
|
|
387 |
|
Change in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
10,976 |
|
|
|
5,491 |
|
Inventory |
|
683 |
|
|
|
(5,239 |
) |
Accounts payable and accrued expenses |
|
(39,914 |
) |
|
|
28,557 |
|
Other current assets and liabilities |
|
(1,371 |
) |
|
|
(8,618 |
) |
Net cash used in operating activities |
|
(150,039 |
) |
|
|
(254,501 |
) |
Investing activities |
|
|
|
Consideration on escrow paid for GeneDx acquisition |
|
(12,144 |
) |
|
|
(127,004 |
) |
Purchases of property and equipment |
|
(2,874 |
) |
|
|
(4,990 |
) |
Proceeds from sale of assets |
|
3,637 |
|
|
|
— |
|
Purchases of marketable securities |
|
(43,935 |
) |
|
|
— |
|
Proceeds from sales of marketable securities |
|
16,665 |
|
|
|
— |
|
Development of internal-use software assets |
|
(461 |
) |
|
|
(6,494 |
) |
Net cash used in investing activities |
|
(39,112 |
) |
|
|
(138,488 |
) |
Financing activities |
|
|
|
Proceeds from PIPE issuance, net of issuance costs |
|
— |
|
|
|
197,659 |
|
Proceeds from offerings, net of issuance costs |
|
143,002 |
|
|
|
— |
|
Finance lease payoff and principal payments |
|
(2,133 |
) |
|
|
(2,632 |
) |
Long-term debt principal payments |
|
(2,000 |
) |
|
|
— |
|
Exercise of stock options |
|
266 |
|
|
|
2,223 |
|
Net cash provided by financing activities |
|
139,135 |
|
|
|
197,250 |
|
Net increase (decrease) in cash, cash equivalents and restricted
cash |
|
(50,016 |
) |
|
|
(195,739 |
) |
Cash, cash equivalents and restricted cash, at beginning of
period |
$ |
138,303 |
|
|
$ |
401,469 |
|
Cash, cash equivalents and restricted cash, at end of period2 |
$ |
88,287 |
|
|
$ |
205,730 |
|
2 Cash, cash equivalents and restricted cash at
September 30, 2023 excludes marketable securities of $26.9
million.
Investor Relations Contact:
Investors@GeneDx.com
Media Contact:
Press@GeneDx.com
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