Slide 1: 3Q 2024 Earnings Results
3Q 2024 Earnings Results Nasdaq: NEO November 5th, 2024
Slide 2: Safe Harbor Statements
Safe Harbor Statements This presentation has been prepared by NeoGenomics, Inc. (“we,” ”us,” “our,” “NeoGenomics” or the “Company”) and is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities, nor shall there be any sale of any
Slide 3: Mission and Vision
Mission We save lives by improving patient care. Vision We are becoming the world’s leading provider of comprehensive cancer testing, data and solutions through uncompromising quality, exceptional customer experience, and innovative products and services.
Slide 4: We focus on the ~85% of patients receiving care in community setting
We focus on the ~85% of patients receiving care in community setting We treat patients in their own communities ~85% Community Setting ~15% Academic hospitals/ cancer centers Community setting offers: • More personalized care, strong patient- provider relationships • Accessibility, proximity to home
Slide 5: Our Community Translation Platform
Our Community Translation Platform Is core to our Long-Term Market Differentiation Academic Oncology Centers and Biopharma • Broad oncology test menu (600+); Flexible partnership model (TC/PC) • Comprehensive oncology offerings in Solid and Heme targeted to community generalist Customer Experience •
Slide 6: Momentum Continues
Momentum Continues Clinical Volume (unit thousands) Clinical Revenue Per Test 3Q 2024 Highlights 315 9% $463 5% 312 • Double digit revenue growth $454 • Testing volumes increased 9% vs prior year 301 $447 • 295 Adjusted Gross Margin increased to 48% 290 $440 $441 • 26% growth in NGS revenue • AEBITD
Slide 7: Sustainable Growth – Commercial Optimization
Sustainable Growth – Commercial Optimization Key Growth Profitably Grow the Core Business Drivers Clinical Revenue in $millions • Record volume growth of 9%, all modalities 146 141 growing faster than 135 market,1 led by NGS 130 128 • Highest quarterly 123 customer retention rate 115 108 • Health sy
Slide 8: Sustainable Growth – Innovation
Sustainable Growth – Innovation New Product Development • 13 new and upgraded products launched in last 18 months • Launched PanTracer LBx for Pharma, AML Express for Clinical • Pending launches • 500+ gene NGS assay • Enhanced NGS Panel for 2025 • Detects all major variants including • Detects acti
Slide 9: Sustainable Growth – Margin Expansion
Sustainable Growth – Margin Expansion Executing the Adjusted Gross Margin 47.8% Strategy 46.3% 45.5% • Successfully launched first LIMS module with 43.8% over 350,000 cases 43.2% going through system • Drove 355 bps of gross margin improvement in the quarter through 37.9% productivity and the use of
Slide 10: 3Q 2024 Financial Results
GENOMICS 3Q 2024 Financial Results
Slide 11: 3rd Quarter 2024 Financial Highlights
3rd Quarter 2024 Financial Highlights • Total Quarter Revenue Increased 10% Revenue Adj. Gross Profit — Clinical Revenue Increased 14% — ADx Revenue Decreased 10% Up 10% Up 19% • 26% revenue growth in NGS to $168M to $80M ― Representing 31% of total Clinical Revenue • Adjusted Gross Margin increased
Slide 12: 3rd Quarter Clinical Services Results
3rd Quarter Clinical Services Results • Revenue Grew 14% to $146M • Volume Increased 9% • Revenue per Test Improved 5% Due to Mix and Pricing • Salesforce Effectiveness Continues to Improve Following Investments Made in Field Resources since H2’22 Q4 Q1 Q2 Q3 2022 Revenue 2023 Revenue 2024 Revenue 1
Slide 13: 3rd Quarter Clinical Services Revenue per Test
3rd Quarter Clinical Services Revenue per Test • 14th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 5% over Prior Year to $463 • Focused on Higher-Value Tests • Positive Contributions from Revenue Cycle Management Initiatives Q4 Q1 Q2 Q3 2022 Rev/Test 2023 Rev/Test 2024
Slide 14: 3rd Quarter Advanced Diagnostics Results
3rd Quarter Advanced Diagnostics Results • Continuing to focus on profitable business • Adjusted Gross Profit increased by 6%, Expanded Adjusted Gross Margin by 644 bps over prior year • Revenue declined 10% over the prior year to $22M, in line with expectations Q4 Q1 Q2 Q3 2022 Revenue 2023 Revenue
Slide 15: 3rd Quarter Financial Overview
3rd Quarter Financial Overview Financial Statement In $Millions 3Q’23 3Q’24 %vPY Revenue $152.0 $167.8 10.4% Adjusted Gross Profit $67.2 $80.1 19.3% Adjusted Gross Margin 44.2% 47.8% 355 bps Adjusted EBITDA $3.3 $13.4 305.0% Adjusted EBITDA Margin 2.2% 8.0% 580 bps Cash and cash equivalents $306.2 $
Slide 16: FY 2024 Revised Guidance
FY 2024 Revised Guidance Q3 Revision YoY Growth Guide Original YoY Growth Q2 Revision YoY Growth ($ Millions) Revenue $650–$660 10%–12% $655–$667 11%–13% $655–$667 11%–13% Adj. $21–24 600%–700% EBIDTA $33–$37 1000%–1133% $37–$40 1133%–1233% Strategic Focus to Drive Long-Term Sustainable Growth AEBIT
Slide 17: Q3'24 Summary
Q3’24 Summary • Momentum continues with a strong quarter; revenue growth of 10%, volume growth of 9%, and 305% Adj. EBITDA improvement • Increased focus on R&D and Business Development to drive innovation • Key strategic initiatives continue to drive revenue growth, operating leverage, and improved
Slide 18: © 2024 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property
© 2024 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective owners. Rev. MMDDYY
Slide 19: Appendix
GENOMICS Appendix
Slide 20: Balance Sheet
September 30, 2024 (unaudited) December 31, 2023 ASSETS Current assets Balance Cash and cash equivalents Marketable securities, at fair value $ 361,992 25,821 $ 342,488 72,715 Sheet Accounts receivable, net Inventories Prepaid assets 151,428 24,457 18,235 131,227 24,156 17,987 September 30, 2024 Oth
Slide 21: Income Statement
Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 NET REVENUE Income Clinical Services Advanced Diagnostics $ 145,783 22,041 $ 127,553 24,401 $ 421,706 66,860 $ 365,578 70,513 Total net revenue 167,824 151,954 488,566 436,091 Statement COST OF REVENUE 92,944 89,643
Slide 22: Statements of Cash Flows
Nine Months Ended September 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Statements of Net loss $ (63,402) $ (73,642) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 29,274 27,872 Cash Flows Amortization of intangibles Stock-based compensation 25,085 25
Slide 23: Adjusted Gross Margin
Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 % Change 2024 2023 % Change Clinical Services: Total revenue (GAAP) $ 145,783 $ 127,553 14.3 % $ 421,706 $ 365,578 15.4 % Cost of revenue (GAAP) $ 80,058 $ 73,994 8.2 % $ 234,996 $ 213,032 10.3 % Adjusted Adjustments to cost
Slide 24: Adjusted EBITDA
Three Months Ended Nine Months Ended September September 30, 30, Adjusted 2024 2023 2024 2023 EBITDA Net loss (GAAP) $ Adjustments to net loss: (17,699) $ (18,516) $ (63,402) $ (73,642) September 30, 2024 Interest income (4,673) (4,525) (14,099) (12,057) (unaudited, in thousands) Interest expense 1,
Slide 25: Adjusted EBITDA 2024 Guidance
Year Ended December 31, 2024 Low Range High Range Net loss (GAAP) $ (81,000) $ (78,000) Adjusted Amortization of intangibles 33,000 33,000 EBITDA Stock-based compensation expenses Restructuring charges 33,000 6,000 33,000 6,000 2024 Guidance Other one-time expenses Adjusted net income (non-GAAP) 19,