Slide 1: Fourth Quarter & Full Year 2023 Earnings Results
Fourth Quarter & Full Year 2023 Earnings Results February 20, 2024 1
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 cancer testing, information, and decision support company by providing uncompromising quality, exceptional service, and innovative solutions.
Slide 4: 4th Quarter 2023 Highlights
4th Quarter 2023 Highlights Revenue Adj. Gross Profit • Total YoY Revenue Increased 12% — Clinical Revenue Increased 20% Up 12% Up 18% — ADx Revenue Decreased 17% To $156M To $73M • 40+% growth in NGS ― Representing over 25% of total Clinical revenue 11th Consecutive • Adjusted Gross Margin increase
Slide 5: Full Year 2023 Highlights
Full Year 2023 Highlights Revenue Full Year 2023 In Review: Up 16% • Total Neo Revenue Increased 16% To $592M — Clinical Revenue Increased 18% — Advanced Diagnostics Revenue Increased 6% Adj. Gross Profit • Adj. Gross Margin increased to 44.7%, an Up 28% improvement of 399 bps To $264M • Achieved Po
Slide 6: Momentum Continues
Momentum Continues Total Quarterly Revenues Quarterly Adj. EBITDA $9.3 $155.6 $152.0 $3.3 $146.9 -$1.2 -$2.0 $138.7 $137.2 -$7.1 -$11.6 $128.8 -$16.3 $125.1 -$19.0 $117.2 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 ($ in millions) ($ in millions) 6
Slide 7: Q4 & FY 2023 Strategic Priorities Highlights
Q4 & FY 2023 Strategic Priorities Highlights Accelerate Profitably Grow Drive Value Advanced Our Core Business Creation Diagnostics • Served over 600,000 patients • ADx gross margins improved by 368 bps • Improved Gross Margins by nearly over Q4 of 2022 400 bps over FY 2022 • All modalities grew fas
Slide 8: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results
Slide 9: 4th Quarter Clinical Services Results
4th Quarter Clinical Services Results • Revenue Grew 20% to $130M • Revenue per Test Improved 13% Due to Mix and Pricing • Volume Increased 6% • Continuing to See the Benefits of Investments Made in Field Q1 Q2 Q3 Q4 Resources in 2022 and 2023 2022 Revenue 2023 Revenue Revenue $Millions Q1 Q2 Q3 Q4
Slide 10: 4th Quarter Clinical Services Revenue per Test
4th Quarter Clinical Services Revenue per Test • 11th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 13% over Prior Year to $441 • Focused on Higher-Value Tests • Positive Contributions from Q1 Q2 Q3 Q4 Revenue Cycle Management 2022 Rev/Test 2023 Rev/Test Initiatives Rev
Slide 11: 4th Quarter Advanced Diagnostics Results
4th Quarter Advanced Diagnostics Results • Revenue declined 17% over the prior year and increased 4.5% from Q3 2023 to $26M • Continuing to focus on profitable business • Expanded Adjusted Gross Margin by 368 bps Q1 Q2 Q3 Q4 2022 Revenue 2023 Revenue Revenue $Millions Q1 Q2 Q3 Q4 2022 Revenue $18.4
Slide 12: 4th Quarter Income Statement
4th Quarter Income Statement Income Statement In $Millions 4Q23 %vPY Clinical Services $130.1 20.2% YoY Improvement in Revenue Growth, Gross • Quarterly financial information is unaudited. Growth corresponds to prior period 2022. Advanced Diagnostics Reference non-GAAP reconciliation slides in Appen
Slide 13: 4th Quarter Balance Sheet
4th Quarter Balance Sheet Balance Sheet In $Millions Dec-23 Sep-23 Cash and cash equivalents 342.5 306.2 Marketable • securities, at fair value Quarterly financial information is unaudited. Growth corresponds to prior period 96.0 72.7 • Cash and Marketable Securities: 2022. Accounts receivable, net
Slide 14: Full Year 2023 Financial Results
Full Year 2023 Financial Results
Slide 15: Full Year 2023 Income Statement
Full Year 2023 Income Statement Income Statement In $Millions FY23 %vPY Clinical Services $495.6 18.4% YoY Improvement in Revenue Growth, Advanced Diagnostics $96.0 5.5% Gross Margin and Adjusted EBITDA Total Net Revenue $591.6 16.1% Cost of Revenue $347.0 7.8% Adjusted Gross Profit $264.2 27.5% • R
Slide 16: Full Year 2023 Balance Sheet
Full Year 2023 Balance Sheet Balance Sheet In $Millions Dec-23 Dec-22 Cash and cash equivalents 342.5 263.2 Marketable securities, at fair value Accounts receivable, net 72.7 131.2 174.8 119.7 • Cash and Marketable Inventories 24.2 24.3 Securities: $415 million Prepaid assets 18.0 15.2 Other current
Slide 17: 2024 Outlook
2024 Outlook GENOMICS
Slide 18: FY 2024 Expectations
FY 2024 Expectations Strategic Focus to Drive 10% – 12% Long-Term Profitable Growth Revenue Growth • Focusing on Long-term Sustainable Revenue Growth FY: $650 – $660 Million • Adjusted EBITDA Growth Exceeds Revenue Growth Due to Improving Gross Profit and Operating Leverage 600% – 700% • Continue to
Slide 19: FY'23 Summary
FY’23 Summary • Annual revenue growth was 16%, Cashflow from operations increased 97% and Adj. EBITDA grew $51.5M • Achieved positive Adj. EBITDA in Q3’2023 with momentum carrying into 2024 • Key strategic initiatives continue to drive revenue growth and improve financial performance • 2024 guidance
Slide 20: © 2023 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property
© 2023 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective owners. Rev. 02/20/2024
Slide 21: Appendix
Appendix
Slide 22: Balance Sheet, December 31, 2023
December 31, 2023 December 31, 2022 Balance Sheet ASSETS Current assets December 31, 2023 Cash and cash equivalents $ Marketable securities, at fair value 342,488 72,715 $ 263,180 174,809 (unaudited, in thousands) Accounts receivable, net 131,227 119,711 Inventories 24,156 24,277 Prepaid assets 17,9
Slide 23: Income Statement, December 31, 2023
Income Statement, Three Months Ended December 31, 2023 December 31, 2023 2022 Years Ended December 31, 2023 2022 (unaudited, in thousands) 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
Slide 24: Statements of Cash Flows, December 31, 2023
Statements of Cash Years Ended December 31, 2023 2022 Flows, CASH FLOWS FROM OPERATING ACTIVITIES Net loss December 31, 2023 Adjustments to reconcile net loss to net cash used in operating activities: $ (87,968) $ (144,250) (unaudited, in thousands) Depreciation 37,450 35,372 Amortization of intangi
Slide 25: Adjusted Gross Margin, December 31, 2023
Adjusted Gross Three Months Ended December 31, % Years Ended December 31, % Margin, December Clinical Services: 2023 2022 Change 2023 2022 Change 31, 2023 Total revenue (GAAP) Cost of revenue (GAAP) $ 130,058 $ 74,027 $ 108,166 $ 64,180 20.2 % 15.3 % $ $ 495,636 287,059 $ $ 418,754 261,742 18.4 % 9.
Slide 26: Adjusted EBITDA, December 31, 2023
Adjusted EBITDA, December 31, 2023 Three Months Ended December 31, Years Ended December 31, (unaudited, in thousands) 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,
Slide 27: Adjusted EBITDA, 2024 Guidance
GAAP net loss in 2024 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) non-cash stock based Adjusted EBITDA, compensation and (iii) restructuring charges. These charges have been included in GAAP net loss available to stockholders and