Slide 1: 2Q 2024 Earnings Results
2Q 2024 Earnings Results Nasdaq: NEO July 29, 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: Momentum Continues
Momentum Continues Revenues ($millions) Clinical Revenue Per Test 2Q 2024 Highlights 12% $454 9% $447 • Double digit revenue growth $164.5 $440 $441 • Increased testing volumes • 13th consecutive quarterly increase vs prior $155.6 $156.2 $417 year in Revenue per Test $152.0 • Adjusted Gross Margin i
Slide 5: 2024 Strategic Priorities
2024 Strategic Priorities • Increase volumes in the • New Product Development • Drive operating efficiencies base business and NGS and launches and improve Gross Margins • Drive market penetration • Further improvements • Complete Phase 1 of in Oncology to ADx margins LIMS Implementation • Continue
Slide 6: Profitably Grow the Core
Q2’24 Highlights Profitably Grow the Core Delivered volume growth, increased AUP, and improved mix Increase Volumes in the Base Business and NGS • ~40% growth in NGS Drive Market Penetration in Community Oncology • Expanding commercial resources/reps by year end • Increase volumes in the • Improving
Slide 7: Commercial Field Expansion a Catalyst for Growth
Commercial Field Expansion a Catalyst for Growth Optimizing Clinical Field for Penetration into Community Oncology 2022 2023 2024 FUTURE Productivity Headcount Productivity Headcount Productivity Headcount Productivity Headcount ~65 ~90 ~140 150+ • Expanded commercial organization by >50% including
Slide 8: Accelerate Advanced Diagnostics and Innovation
Q2’24 Highlights Accelerate Advanced Diagnostics and Innovation New products on the horizon New Product Development and Launches in H2 • NEO | AMLExpress • NEO | PanTracer LBx • New Product Development Further Improvements to ADx Margins and launches • Improved adjusted gross margins by 470 bps vs Q
Slide 9: Cancer Testing is a Large and Attractive Market
Cancer Testing is a Large and Attractive Market Germline Screening / Early Diagnostic Therapy testing detection testing selection MRD ~$4B ~$13B ~$12B ~$13B ~$20B Cancer monitoring segment Pen: ~8% Pen: ~45% Pen: ~70% Pen: ~35% Pen: <5% CAGR:~20% CAGR:~10% CAGR:~5% CAGR:10-15% CAGR:~30%
Slide 10: Market Leader in Highly Attractive Heme Market
Market Leader in Highly Attractive Heme Market Diagnosis and Prognosis Therapy Selection MRD / Surveillance Do I have cancer, Is it at high risk of Do I have cancer remaining? What therapy is best for me? reoccurrence? Is my cancer coming back? Cytogenetics, Flow, Molecular, FISH FISH, PCR, NGS NGS,
Slide 11: NEO | AMLExpress
NEO | AMLExpress Accelerates treatment insights to improve patient outcomes • Enhanced NGS panel • Detects DNA and RNA biomarkers for AML • 2 to 3-day TAT • Allows for patient stratification for clinical trials • Significant economic benefit to hospitals than our current market-leading test 11 Refer
Slide 12: NEO | PanTracer LBx
NEO | PanTracer LBx Competitive solution when tissue is not available NEO | PanTracer LBx • 500+ gene NGS assay • Detects all major variants, $13B including MSI and TMB Therapy Selection • Minimal sample input • Highly competitive sensitivity and specificity • 7-day TAT Liquid Biopsy Drivers • Order
Slide 13: Drive Value Creation
Q2’24 Highlights Drive Value Creation Drive operating efficiencies and improve Gross Margins Lab Productivity • Drove 320 bps of gross margin improvement in the quarter through productivity and the use of AI and automation Lab Footprint Optimization • Drive operating efficiencies • Decommissioned La
Slide 14: 2Q 2024 Financial Results
(NEO GENOMICS 2Q 2024 Financial Results
Slide 15: 2nd Quarter 2024 Financial Highlights
2nd Quarter 2024 Financial Highlights • Total Quarter Revenue Increased 12% Revenue Adj. Gross Profit — Clinical Revenue Increased 15% Up 12% Up 20% — ADx Revenue Decreased 3% • ~40% growth in NGS to $165M to $78M ― Representing 30% of total Clinical Revenue • Adjusted Gross Margin increased to 47.3
Slide 16: 2nd Quarter Clinical Services Results
2nd Quarter Clinical Services Results • Revenue Grew 15% to $141M • Revenue per Test Improved 9% Due to Mix and Pricing • Volume Increased 6% • Continuing to See the Benefits of Investments Made in Field Resources in 2022 and 2023 Q3 Q4 Q1 Q2 2022 Revenue 2023 Revenue 2024 Revenue 16
Slide 17: 2nd Quarter Clinical Services Revenue per Test
2nd Quarter Clinical Services Revenue per Test • 13th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 9% over Prior Year to $454 • Focused on Higher-Value Tests • Positive Contributions from Revenue Cycle Management Initiatives Q3 Q4 Q1 Q2 2022 Rev/Test 2023 Rev/Test 2024
Slide 18: 2nd Quarter Advanced Diagnostics Results
2nd Quarter Advanced Diagnostics Results • Revenue declined 3% over the prior year to $23M, but increased 6.5% over Q1 2024 • Continuing to focus on profitable business • Expanded Adjusted Gross Margin by 470 bps over prior year Q3 Q4 Q1 Q2 2022 Revenue 2023 Revenue 2024 Revenue 18
Slide 19: 2nd Quarter Income Statement
2nd Quarter Income Statement Income Statement In $Millions 2Q24 %vPY Quarter Improvement in Revenue Growth, Clinical Services $141.4 14.8% Adjusted Gross Margin and Adjusted EBITDA Advanced Diagnostics $23.1 -2.7% Total Net Revenue $164.5 12.0% • Revenue: Increased revenue by 12% over prior Cost of
Slide 20: 2nd Quarter Balance Sheet
2nd Quarter Balance Sheet Balance Sheet In $Millions Dec-23 Jun-24 • Cash and Marketable Securities: $388 million Cash and cash equivalents 342.5 355.1 Marketable securities, at fair value 72.7 32.8 Accounts receivable, net 131.2 146.6 • Cash Flow from Operations: $14 million for Inventories 24.2 23
Slide 21: FY 2024 Revised Guidance
FY 2024 Revised Guidance Guide Original YoY Growth Current YoY Growth ($ Millions) Revenue $650–$660 10%–12% $655–$667 11%–13% Adj. $21–24 600%–700% EBIDTA $33–$37 1000%–1133% Strategic Focus to Drive Long-Term Sustainable Growth AEBITDA Growth Exceeds Revenue Growth Due to Improving Gross Profit an
Slide 22: Q2'24 Summary
Q2’24 Summary • Momentum continues with a strong quarter; revenue growth of 12% and 630% Adj. EBITDA improvement • Planning to launch three new NGS products over the next 12 months to strengthen position with pathologists and community oncologists • Key strategic initiatives continue to drive revenu
Slide 23: © 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 24: Appendix
dN =e) GENOMICS Appendix
Slide 25: Balance Sheet
June 30, 2024 December 31, 2023 (unaudited) ASSETS Current assets Cash and cash equivalents $ 355,085 $ 342,488 Balance Marketable securities, at fair value Accounts receivable, net 32,770 146,581 72,715 131,227 Sheet Inventories 23,214 24,156 Prepaid assets 17,396 17,987 Other current assets 9,157
Slide 26: Income Statement
Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 NET REVENUE Clinical Services $ 141,388 $ 123,156 $ 275,923 $ 238,025 Income Advanced Diagnostics 23,114 23,761 44,819 46,112 Total net revenue 164,502 146,917 320,742 284,137 Statement COST OF REVENUE 92,008 87,026 182,779 16
Slide 27: Statements of Cash Flows
Six Months Ended June 30, 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (45,703) $ (55,126) Statements of Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 19,651 18,523 Cash Flows Amortization of intangibles 16,723 17,566 June 30, 2024 Stock-based
Slide 28: Adjusted Gross Margin
Three Months Ended June 30, Six Months Ended June 30, 2024 2023 % Change 2024 2023 % Change Clinical Services: Total revenue (GAAP) $ 141,388 $ 123,156 14.8 % $ 275,923 $ 238,025 15.9 % Cost of revenue (GAAP) $ 78,094 $ 71,746 8.8 % $ 154,938 $ 139,038 11.4 % Adjusted Adjustments to cost of revenue(
Slide 29: Adjusted EBITDA
Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Adjusted Net loss (GAAP) $ (18,642) $ (24,331) $ (45,703) $ (55,126) EBITDA Adjustments to net loss: June 30, 2024 Interest income (4,592) (4,308) (9,426) (7,532) (unaudited, in thousands) Interest expense 1,666 1,784 3,351 3,
Slide 30: Adjusted EBITDA 2024 Guidance
Year Ended December 31, 2024 Low Range High Range Net loss (GAAP) $ (88,000) $ (81,000) Amortization of intangibles 33,000 33,000 Adjusted Stock-based compensation expenses 33,000 32,000 EBITDA Restructuring charges 5,000 5,000 Other one-time expenses 20,000 20,000 2024 Guidance Adjusted net loss (n