Slide 1: 2Q 2023 Financial Results
2Q 2023 Financial Results August 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: 2nd Quarter 2023 Highlights
2nd Quarter 2023 Highlights • Total Revenue Increased 18% — Clinical Revenue Increased 17% Revenue Adj. Gross Profit — ADx Revenue Increased 22% Up 18% $65M • Adjusted EBITDA increased 87% to To $147M Margin: 44.1% negative $2 million • Received first MolDx coverage decision for RaDaR in HR+/HER2- 9
Slide 5: First Half 2023 Financial Highlights
First Half 2023 Financial Highlights Revenue First Half 2023 In Review: • Total Neo Revenue Increased 17% Up 17% — Clinical Revenue Increased 16% To $284M — Advanced Diagnostics Revenue Increased 22% Adj. Gross Profit • Cash Flows from operations improved $32M or 69% • Adj Gross Margin Increased 585
Slide 6: Performance Continues to Improve
Performance Continues to Improve +18% $139M $137M $147M 1.0 140 $125M $129M 0.9 120 0.8 100 0.7 0.6 80 $62M $65M $60M 0.5 $54M 60 $49M 0.4 40 0.3 20 0.2 Revenue 0.1 0 Adj Gross Profit -$1M -$2M -$7M Adj EBITDA 0.0 -$16M -$12M -20 2Q22 3Q22 4Q22 1Q23 2Q23 Description 2Q22 3Q22 4Q22 1Q23 2Q23 Revenue
Slide 7: Our 2023 Strategic Priorities
Our 2023 Strategic Priorities Profitably Grow Accelerate Drive Value Creation Our Core Business Advanced Diagnostics • Grow Volume & Drive NGS Mix • Launch New Innovative Products • Increase Productivity & Efficiency • Expand & Optimize Commercial • Continue to Improve Pharma Growth Organization & P
Slide 8: Q2 Highlights to the Strategic Priorities
Q2 Highlights to the Strategic Priorities Profitably Grow the Accelerate Advanced Core Business Diagnostics Drive Value Creation • Improved Adjusted Gross • Further margin expansion • Strong Clinical volumes Margin in ADx by over 700 bps from Q1’23 across all modalities, including significant NGS vs
Slide 9: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results
Slide 10: 2nd Quarter Clinical Services Results
2nd Quarter Clinical Services Results • Revenue Grew 17 to $123M • Revenue per Test Improved 8% Due to Mix and Pricing • Volume Increased 8% • Beginning to See the Benefits of Investments Made in Field Resources Revenue in H2’22 $Millions Q3 Q4 Q1 Q2 2021 Revenue* $10 2.2 .1 - $104 - 2022 Revenue $1
Slide 11: 2nd Quarter Clinical Services Revenue per Test
2nd Quarter Clinical Services Revenue per Test • 9th Consecutive Quarter of Revenue per Test Growth • Revenue per Test Increased 8% over Prior Year to $417 • Focused on Higher-Value Tests • Positive Contributions from Strategic Revenue per Test Reimbursement Initiatives $Dollars 2021 Rev/Test Q3 $37
Slide 12: 2nd Quarter Advanced Diagnostics Results
2nd Quarter Advanced Diagnostics Results • Strong Revenue Growth of 22% to $24M • Adjusted Gross Margin Improved 770 bps, representing the Fourth Consecutive Quarter of 600 bps+ of Improvement over prior year • Continuing to Build Momentum with RaDaR (MRD) Pipeline venue $Millions Q3 Q4 Q1 Q2 Revenu
Slide 13: 2nd Quarter Income Statement
2nd Quarter Income Statement Income Statement In $Millions 2Q23 %vPY YoY Improvement in Revenue Growth, Gross Clinical Services 123.2 16.6% Advanced Diagnostics 23.8 22.2% Margin and Adjusted EBITDA Total Net Revenue 146.9 17.5% Cost of Revenue 87.0 7.3% • Revenue: Second consecutive quarter of +17%
Slide 14: 2nd Quarter Balance Sheet
2nd Quarter Balance Sheet Balance Sheet In $Millions Jun-23 Mar-23 Cash and cash equivalents 289.1 275.6 Marketable securities, at fair value Accounts receivable, net 120.3 125.4 142.3 118.8 • Cash and Marketable Securities: $409 Inventories Prepaid assets 24.9 16.6 24.4 16.2 million Other current a
Slide 15: Revised 2023 Guidance
The picture can't be displayed. Revised 2023 Guidance 15
Slide 16: FY 2023 Expectations as of August 8, 2023
FY 2023 Expectations as of August 8, 2023 • Focusing on Long-term, Sustainable Growth 11% – 13% Revenue Growth • Adjusted EBITDA Growth Exceeds Revenue FY: $565 – $575 Million Growth Due to Improving Gross Profit and Up from $555 - $565 Million Operating Leverage • Continue to Invest in the Business
Slide 17: Summary
The picture can't be displayed. Summary • Q2 strong revenue growth at 18% and improved AEBITDA growth of 87% vs PY • New RaDaR reimbursement coverage from Medicare and commercial payors • Key strategic initiatives gaining traction leading to positive financial performance • Raising FY23 revenue guid
Slide 18: 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 19: Appendix
Appendix GENOMICS
Slide 20: Balance Sheet, June 30, 2023
The picture can't be displayed. June 30, 2023 Balance Sheet ASSETS (unaudited) December 31, 2022 June 30, 2023 Current assets Cash and cash equivalents $ 289,074 $ 263,180 (unaudited, in thousands) Marketable securities, at fair value 120,272 174,809 Accounts receivable, net 125,425 119,711 Inventor
Slide 21: Income Statement, June 30, 2023
The picture can't be displayed. Income Statement, June 30, 2023 Three Months Ended June 30, 2023 2022 NET REVENUE (unaudited, in thousands) Clinical Services $ 123,156 $ 105,635 Pharma Services 23,761 19,437 Total net revenue 146,917 125,072 COST OF REVENUE 87,026 81,126 GROSS PROFIT 59,891 43,946 O
Slide 22: Statements of Cash Flows, June 30, 2023
The picture can't Statements of Cash Flows, be displayed. June 30, 2023 Six Months Ended June 30, 2023 2022 (unaudited, in thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net loss $ (55,126) $ (84,711) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation 18,523 16
Slide 23: Adjusted Gross Margin, June 30, 2023
The picture can't Three Months Ended June 30, Adjusted Gross Margin, be displayed. 2023 2022 % Change Clinical Services: Total revenue (GAAP) $ 123,156 $ 105,635 16.6 % June 30, 2023 Cost of revenue (GAAP) $ 71,746 $ 67,035 7.0 % (unaudited, in thousands) Adjustments to cost of revenue(5) (4,263) (4
Slide 24: Adjusted EBITDA, June 30, 2023
The picture can't Adjusted EBITDA, June 30, be displayed. 2023 (unaudited, in thousands) Three Months Ended June 30, 2023 2022 Net loss (GAAP) $ (24,331) $ (35,303) Adjustments to net loss: Interest (income) expense, net (2,524) 926 Income tax benefit (2,309) (5,730) Depreciation 9,475 8,526 Amortiz
Slide 25: 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