Slide 1: Third Quarter 2023 Earnings Results
Third Quarter 2023 Earnings Results November 6th, 2023 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
The picture can't be displayed. 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. 3
Slide 4: 3rd Quarter 2023 Highlights
3rd Quarter 2023 Highlights • Total YoY Revenue Increased 18% Revenue Adj. Gross Profit Up 18% $67M — Clinical Revenue Increased 20% — ADx Revenue Increased 8% • 35+% growth in NGS To $152M Margin: 44.2% ― Representing ~25% of total Clinical revenue • Adjusted EBITDA increased 129% to 10th Consecuti
Slide 5: Performance Continues to Improve
Performance Continues to Improve +18% 1.0 $152M 160 $147M 0.9 $139M $137M 140 $125M $129M 0.8 120 0.7 100 0.6 80 0.5 $65M $67M $62M $60M $54M 60 0.4 $49M 40 0.3 0.2 20 Revenue $3M Adj Gross Profit 0.1 0 -$1M Adj EBITDA -$2M -$7M 0.0 -$16M -$12M -20 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 Description 2Q22 3Q22
Slide 6: Q3 Highlights Against 2023 Priorities
Q3 Highlights Against 2023 Priorities Accelerate Profitably Grow Drive Value Advanced Our Core Business Creation Diagnostics • All modalities growing faster than • 3 RaDaR applications submitted to MolDx: • Continued operational market Breast, Lung, and Head & Neck improvements to enhance operating
Slide 7: Third Quarter 2023 Financial Results
Third Quarter 2023 Financial Results
Slide 8: 3rd Quarter Clinical Services Results
3rd Quarter Clinical Services Results • Revenue Grew 20% to $128M • Revenue per Test Improved 12% Due to Mix and Pricing • Volume Increased 7% • Continuing to See the Benefits of Investments Made in Field Resources Revenue in 2022 $Millions Q4 Q1 Q2 Q3 1 Revenue 202 $104.1 - - - 2023 Revenue $108.2
Slide 9: 3rd Quarter Clinical Services Revenue per Test
3rd Quarter Clinical Services Revenue per Test • 10th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 12 over Prior Year to $440 • Focused on Higher-Value Tests • Positive Contributions from Strategic Revenue per Test Reimbursement Initiatives $Dollars Q4 Q1 Q2 Q3 2021 Re
Slide 10: 3rd Quarter Advanced Diagnostics Results
3rd Quarter Advanced Diagnostics Results • Continued Revenue Growth of 8% to $24M • Continuing to Build Momentum with RaDaR (MRD) Pipeline • Expanded Gross Margin by 34 bps in Q3 and 440 bps on a YTD basis vs PY Revenue $Millions Q4 Q1 Q2 Q3 1 Revenue 202 $21.7 - - - 2022 Revenue $30.5 $18.4 $19.4 $
Slide 11: 3rd Quarter Income Statement
3rd Quarter Income Statement Income Statement In $Millions 3Q23 %vPY YoY Improvement in Revenue Growth, Gross Clinical Services 127.6 20.1% Advanced Diagnostics 24.4 7.9% Margin and Adjusted EBITDA Total Net Revenue 152.0 18.0% Cost of Revenue 89.6 12.2% • Revenue: Third consecutive quarter of +17%
Slide 12: 3rd Quarter Balance Sheet
3rd Quarter Balance Sheet Balance Sheet In $Millions Sep-23 Jun-23 Cash and cash equivalents 306.2 289.1 Marketable securities, at fair value 96.0 120.3 Accounts receivable, net Inventories 132.6 24.1 125.4 24.9 • Cash and Marketable Securities: $402 Prepaid assets Other current assets 18.7 9.3 16.6
Slide 13: Revised 2023 Guidance
The picture can't be displayed. Revised 2023 Guidance 13
Slide 14: FY '23 Expectations as of November 6, 2023
FY ’23 Expectations as of November 6, 2023 • Continued Focus on Long-term, Sustainable Revenue Growth 15% – 16% Revenue Growth • Adjusted EBITDA Growth Exceeds Revenue FY: $585 – $592 Million Growth Due to Improving Gross Profit and Up from $565 - $575 Million Operating Leverage • Continued Investme
Slide 15: Summary
The picture can't be displayed. Summary • Q3 revenue growth at 18% and Adj. EBITDA growth of 129% vs PY • 3 additional RaDaR reimbursement applications submitted to MolDx • Key strategic initiatives continue to impact positive financial performance • Raising FY23 revenue guidance to 15- 16% revenue
Slide 16: Copyright and trademarks notice
The picture can't be displayed. © 2021 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective owners. Rev. 11.06.23
Slide 17: Appendix
Appendix GENOMICS
Slide 18: Balance Sheet September 30, 2023
The picture can't be displayed. September 30, 2023 Balance Sheet ASSETS (unaudited) December 31, 2022 September 30, 2023 Current assets Cash and cash equivalents $ 306,239 $ 263,180 (unaudited, in thousands) Marketable securities, at fair value 96,025 174,809 Accounts receivable, net 132,640 119,711
Slide 19: Income Statement, September 30, 2023
The picture can't be displayed. Income Statement, September 30, 2023 Three Months Ended September 30, 2023 2022 NET REVENUE (unaudited, in thousands) Clinical Services $ 127,553 $ 106,162 Pharma Services 24,401 22,620 Total net revenue 151,954 128,782 COST OF REVENUE 89,643 79,889 GROSS PROFIT 62,31
Slide 20: Statements of Cash Flows, September 30, 2023
The picture can't Statements of Cash be displayed. Nine Months Ended September 30, Flows, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES September 30, 2023 Net loss Adjustments to reconcile net loss to net cash used in operating activities: $ (73,642) $ (121,563) (unaudited, in thousands) Depreciati
Slide 21: Adjusted Gross Margin, September 30, 2023
The picture can't Three Months Ended September 30, Adjusted Gross Margin, be displayed. 2023 2022 % Change Clinical Services: September 30, 2023 Total revenue (GAAP) $ 127,553 $ 106,162 20.1 % Cost of revenue (GAAP) $ 73,994 $ 65,261 13.4 % (unaudited, in thousands) Adjustments to cost of revenue(5)
Slide 22: Adjusted EBITDA, September 30, 2023
The picture can't Adjusted EBITDA, be displayed. September 30, 2023 Three Months Ended September (unaudited, in thousands) 30, 2023 2022 Net loss (GAAP) $ (18,516) $ (36,852) Adjustments to net loss: Interest (income) expense, net (2,840) 139 Income tax benefit (2,935) (2,772) Depreciation 9,349 8,9
Slide 23: Adjusted EBITDA, 2023 Guidance
The picture can't Adjusted EBITDA, 2023 be displayed. GAAP net loss in 2023 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) non-cash stock-based compensation, (iii) restructuring charges and (iv) other significant or non-operating ex