Genedx Holdings Corp. · NASDAQ:WGS
Genedx — Sema4 Holdings — Q3 2022 Earnings Presentation
24 slides from Genedx's earnings presentation, Nov 14, 2022
Slide 1: 3Q 2022 Earnings & Investor Presentation
3Q 2022 Earnings & Investor Presentation November 2022 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements under the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, for
Slide 3: Our vision remains the same: personalized health and wellness plans based on comprehensive data
Our vision remains the same: to deliver personalized health and wellness plans based on comprehensive data
Slide 4: Our mission is refined: Unlocking insights from data, leading to healthier lives
Our mission is refined: Unlocking insights from data, leading to healthier lives and a healthier society
Slide 5: Creating a scalable path to profitable growth
Creating a scalable path to profitable growth Restructure and Reorganize • Exiting negative margin reproductive health testing • Elimination of ~1/3 of the workforce • 1Q 2023 headcount of ~1,100 vs 9/30/22 headcount of ~1,700 Recognize operational efficiencies • Consolidating all testing into Gaith
Slide 6: A More Focused Business Mix
A More Focused Business Mix Managing towards profitable growth through strategic channels Peds / Rare Disease Health Systems Pharma 6
Slide 7: Industry leading PICU/NICU franchise with curated data in rare diseases
7 Industry leading PICU/NICU franchise with curated data in rare diseases Commercialized platform expands utility and creates rich data pipeline for personalized medicine Pediatric and Rare Disease Testing Centrellis® Platform Creating Clinical Insights Differentiated WGS and Centrellis® Platform Co
Slide 8: Centrellis Creates Actionable Insights
8 GENERATE MANY CLINICAL REPORTS Repeated insights from existing data → attractive tech-like gross margins for genomic tests SEQUENCE ONCE CAPTURE HEALTH JOURNEY During initial order across offering of genomic testing solutions Centrellis® Creates Actionable Insights Actively source information from
Slide 9: Key Highlights of Pediatrics & Rare Disease Franchise
Key Highlights of Pediatrics & Rare Disease Franchise 9 Relationships: Entrenched relationships with leading hospitals and providers Deep, rich and unmatched dataset Competitive Advantage: Industry-leading curated data asset1 Talent: Experienced management and engineering team with deep genetics exp
Slide 10: Test & Revenue Mix Following Exit of Reproductive Health
Test & Revenue Mix Following Exit of Reproductive Health1 10 Client 33% Commercial 56% Government 6% Self-Pay 1% Data & Pharma 4%Whole Exome, Whole Genome & NICU 57% Other Diagnostic Tests 39% Pharma 4% Whole Exome, Whole Genome & NICU 17% Other Diagnostic Tests 83% Test Volume Mix 1 Based on 3Q22 r
Slide 11: Well positioned to deliver actionable insights for patients, clinicians and researchers
Well positioned to deliver actionable insights for patients, clinicians and researchers
Slide 12: Translating into a significant opportunity
Translating into a significant opportunity Our diagnostic testing total addressable market is ~$30 billion1 Accelerating our move to Exome/WGS Newborn Screening: $10B Increasing inclusion of genetics in screening programs Underdeveloped Solution for Sema4 R&D and clinical trials underway to capture
Slide 13: 3Q 2022 and Recent Highlights
3Q 2022 and Recent Highlights 3Q 2022 pro forma YoY revenue growth of 21%1,2 3Q 2022 pro forma1,2 YoY volume growth of 19% $206M in cash & equivalents as of 9/30/223 Announced partnership in GUARDIAN genomic newborn screening study Pediatric and rare disease pro forma revenue +53% YoY1 1 Pro forma
Slide 14: Underlying Volume and Revenue Trends are Robust
Underlying Volume and Revenue Trends are Robust ~128k tests +19% YoY on a pro forma basis1 $83.2M in total revenue Legacy GeneDx Revenue +53% YoY1 $191.3M in cash & equivalents as of 9/30/22 +$125M undrawn revolver 3Q Resulted Volume1 3Q Total Revenue 3Q Balance Sheet 1 Pro forma results assume Gene
Slide 15: 3Q 2022 GAAP Financial Highlights
3Q 2022 GAAP Financial Highlights 3Q 20221 – Financial Highlights USD Millions 3Q 2022 3Q 2021 Total Revenue $83.2 43.2 Gross Profit (Loss) $13.5 ($8.3) Gross Margin 16% (19%) GAAP Net Income (Loss) ($77.6) $32.7 1 3 months ended 9/30/22 15
Slide 16: 3Q 2022 Non-GAAP Financial Highlights
3Q 2022 Non-GAAP Financial Highlights 3Q 20221 – Non-GAAP2 Financial Highlights USD Millions 3Q 2022 3Q 2021 Revenue $83.2 43.2 Non-GAAP Gross Profit (Loss) $16.8 ($6.5) Non-GAAP Gross Margin 20% (15%) Non-GAAP Net (Loss) ($76.8) ($71.0) 1 3 months ended 9/30/22 2 Refer to Appendix for Non-GAAP Reco
Slide 17: Reiterating FY 2022 Guidance
Reiterating FY 2022 Guidance 60%+ growth YoY Implies 460k+ patient tests resulted & 19%+ proforma growth Adjusted gross margin to exceed 10% Revenue $245-255M reported revenue Translates to $269-279M when excluding ($24M) of prior period r venue adjustments recorded in 2Q20222 Adj. Gross Margin3 4-9
Slide 18: Our Expected Financial Profile Post the Exit of Reproductive Health
Our Expected Financial Profile Post the Exit of Reproductive Health 18 Annualized revenue run rate of >$185M1 excluding Reproductive Health Testing revenue Adjusted gross margin >40% with a path to >50% by 2025 Reduction in operating cash burn of >50% vs 2022 Target revenue CAGR >20% over the next s
Slide 19: Appendix
Appendix sema4 Genek
Slide 20: Historical Pro Forma Resulted Volume & Revenue
Historical Pro Forma Resulted Volume & Revenue1 1 Pro forma volume and revenue metrics assume GeneDx was owned for the entirety of the applicable quarter and are calculated based on the sum of each of Sema4’s and GeneDx’s historical volumes or revenues, as applicable. Pro forma metrics are presented
Slide 21: Historical Pro forma GeneDx Revenue & Volume + Combined Company Pharma Revenue
Historical Pro forma GeneDx Revenue & Volume + Combined Company Pharma Revenue1 21 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 Volumes Whole Exome, Whole Genome & NICU 3,344 6,698 6,162 6,619 7,395 7,572 7,480 Other Diagnostic Tests 28,337 32,484 31,360 32,162 34,039 37,996 37,434 Total 31,681 39,182 37,522
Slide 22: Non-GAAP Gross Margin Reconciliation
Non-GAAP Gross Margin Reconciliation 22
Slide 23: Non-GAAP EBITDA Reconciliation
Non-GAAP EBITDA Reconciliation 23
Slide 24: Non-GAAP Net Loss Reconciliation
Non-GAAP Net Loss Reconciliation1 24 1 See footnotes to adjusted EBITDA reconciliation within the appendix for additional detail on the reconciled line items Three months ended September 30, 2022 2021 (in thousands) Net (loss) income (77,581) 32,731 Stock-based compensation expense 1,273 18,011 Amor