Slide 1: First Quarter 2023 Earnings Results
First Quarter 2023 Earnings Results May 8, 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: 1st Quarter 2023 Highlights
1st Quarter 2023 Highlights Revenue Adj. Gross Profit • Total Revenue Increased 17% — Clinical Revenue Increased 16% — Pharma Revenue Increased 22% Up 17% $60M To $137M Margin: 43.5% • Launched four new assays — RaDaR® for Clinical — Neo Comprehensive™ – Solid Tumor and Myeloid Disorders 8th Consecu
Slide 5: Performance Continues to Improve
Performance Continues to Improve +17% $139M $137M 1.0 140 $125M $129M 0.9 $117M 120 0.8 100 0.7 0.6 80 $62M $60M 0.5 $54M 60 $49M $43M 0.4 40 0.3 20 0.2 Revenue 0.1 0 Adj Gross Profit -$1M -$7M Adj EBITDA 0.0 -$12M -20 -$19M -$16M 1Q22 2Q22 3Q22 4Q22 1Q23 Description 1Q22 2Q22 3Q22 4Q22 1Q23 Revenue
Slide 6: Our 2023 Strategic Priorities
Our 2023 Strategic Priorities Profitably Grow Accelerate Drive Value Creation Our Core Business Advanced Diagnostics • Grow Volume & • Launch New Innovative Products • Increase Productivity Drive NGS Mix & Efficiency • RaDaR (MRD) • Expand & Optimize Commercial • Manage G&A Spend; Re-Invest Organiza
Slide 7: Strong Q1 Execution Against 2023 Priorities
Strong Q1 Execution Against 2023 Priorities Profitably Grow the Accelerate Advanced Core Business Diagnostics Drive Value Creation • Strong Clinical volumes • Launched RaDaR (MRD) in four • 17% improvement in across all modalities, indications turnaround time while including NGS processing significa
Slide 8: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results
Slide 9: 1st Quarter Clinical Services Results
1st Quarter Clinical Services Results • Revenue Grew 16.3% to $114.9M • Revenue per Test Improved 8.4% Due to Mix and Pricing • Volume Increased 7.3% • Beginning to See the Benefits of Investments Made in Field Resources Revenue $Millions Q2 Q3 Q4 Q1 in 2022 2021 Revenue* $101.4 $102.2 $104.1 - 2022
Slide 10: 1st Quarter Clinical Services Revenue per Test
1st Quarter Clinical Services Revenue per Test • 8th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 8% over Prior Year to $402 • Focused on Higher-Value Tests • Positive Contributions from Strategic Revenue per Test Reimbursement Initiatives $Dollars Q2 Q3 Q4 Q1 2021 Rev
Slide 11: 1st Quarter Pharma Services Results
1st Quarter Pharma Services Results • Continued Strong Revenue Growth of 22% to $22M • Gross Margin Improved 620 bps, representing the Third Consecutive Quarter of 500 bps+ of Improvement • Continuing to Build Momentum with RaDaR (MRD) Pipeline Revenue $Millions Q2 Q3 Q4 Q1 2021 Revenue $20.3 $19.1
Slide 12: 1st Quarter Income Statement
1st Quarter Income Statement YoY Improvement in Revenue Growth, Gross Margin and Adjusted EBITDA • Revenue: Highest Revenue Growth by Quarter Since Q2 of 2021. Drivers are increases in revenue per test, volume and Pharma Services revenue. • Adjusted Gross Profit: Increased by 38.5% over prior year d
Slide 13: 1st Quarter Balance Sheet
1st Quarter Balance Sheet • Cash and Marketable Securities: $418 million • Cash Burn: $20 million • Financial Flexibility to Make Needed Investments to Drive Long-Term Sustainable Growth 13 Quarterly financial information is unaudited. Growth corresponds to prior period 2022.
Slide 14: Revised 2023 Guidance
The picture can't be displayed. Revised 2023 Guidance 14
Slide 15: FY 2023 Expectations as of May 8, 2023
FY 2023 Expectations as of May 8, 2023 • Focusing on Long-term, Sustainable Revenue Growth 9% – 11% Revenue Growth • Adjusted EBITDA Growth Exceeds Revenue FY: $555 – $565 Million Growth Due to Improving Gross Profit and Up from $545 - $555 Million Operating Leverage • Continue to Invest in the Busi
Slide 16: Summary
The picture can't be displayed. Summary • Q1 strong revenue growth at 17% and improved AEBITDA growth of 63% vs PY • Four new product launches expand portfolio offering • Key strategic initiatives gaining traction leading to positive financial performance • Raising FY23 revenue guidance to 9-11% rev
Slide 17: The picture can't be displayed. © 2021 NeoGenomics Laboratories, Inc. All rights reserved.
The picture can't be displayed. © 2021 NeoGenomics Laboratories, Inc. All rights reserved. All other trademarks are the property of their respective owners. Rev. 05.08.23
Slide 18: Appendix
Appendix GENOMICS
Slide 19: Balance Sheet, March 31, 2023
The picture can't be displayed. (unaudited) Balance Sheet ASSETS March 31, 2023 December 31, 2022 March 31, 2023 Current assets Cash and cash equivalents $ 275,609 $ 263,180 Marketable securities, at fair value 142,306 174,809 (unaudited, in thousands) Accounts receivable, net 118,842 119,711 Invent
Slide 20: Income Statement, March 31, 2023
The picture can't be displayed. Income Statement, March 31, 2023 Three Months Ended March 31, 2023 2022 NET REVENUE (unaudited, in thousands) Clinical Services $ 114,869 $ 98,791 Pharma Services 22,351 18,378 Total net revenue 137,220 117,169 COST OF REVENUE 82,406 78,937 GROSS PROFIT 54,814 38,232
Slide 21: Statements of Cash Flows, March 31, 2023
The picture can't Statements of Cash Flows, be displayed. March 31, 2023 Three Months Ended March 31, 2023 2022 (unaudited, in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (30,795) $ (49,408) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 9,048
Slide 22: Adjusted Gross Margin, March 31, 2023
The picture can't Adjusted Gross Margin, March be displayed. Three Months Ended March 31, 2023 2022 % Change 31, 2023 Clinical Services: Total revenue (GAAP) $ 114,869 $ 98,791 16.3 % (unaudited, in thousands) Cost of revenue (GAAP) $ 67,292 $ 65,267 3.1 % Adjustments to cost of revenue(5) (4,264) (
Slide 23: Adjusted EBITDA, March 31, 2023
The picture can't Adjusted EBITDA, March be displayed. 31, 2023 (unaudited, in thousands) Three Months Ended March 31, 2023 2022 Net loss (GAAP) $ (30,795) $ (49,408) Adjustments to net loss: Interest (income) expense, net (1,467) 1,301 Income tax benefit (2,925) (3,753) Depreciation 9,048 8,395 Amo
Slide 24: 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 one-time expenses. These charge