Skip to main content
Premium Trial:

Request an Annual Quote

GeneDx Posts 27 Percent Jump in Q4 Revenues From Continuing Operations

NEW YORK — Clinical genetic testing firm GeneDx on Tuesday reported a 27 percent rise in fourth quarter revenues from continuing operations on strong growth of its exome and genome testing business.

For the three-month period ended Dec. 31, GeneDx's total revenues dropped 7 percent to $57.4 million from $61.4 million in the same period a year earlier, in line with the consensus Wall Street estimate.

Revenues from continuing operations, which exclude the firm's legacy Sema4 diagnostic testing business, grew to $58.1 million from $45.8 million a year ago. GeneDx changed its name from Sema4 in early 2023 and exited its reproductive health testing business within a few months.

During the fourth quarter, exome and genome testing volume grew to 15,663, doubling from 7,862 in the year-ago period, the Stamford, Connecticut-based company reported.

GeneDx's net loss for Q4 narrowed to $25.8 million, compared to a net loss of $308.8 million in Q4 2022. Adjusted Q4 net loss narrowed to $17.8 million versus an adjusted net loss of $72.8 million the year before.

R&D spending in the fourth quarter fell about 20 percent year over year to $12.3 million from $24.4 million, while SG&A costs dropped nearly 42 percent to $42.2 million from $72.4 million. In October, GeneDx cut roughly 10 percent of its workforce as part of an effort to trim $40 million in annual operating expenses after having eliminated 500 jobs about a year before.

For full-year 2023, GeneDx's revenues dropped 14 percent to $202.6 million from $234.7 million in 2022, in line with analysts' expectations. Revenues from continuing operations were up 59 percent to $194.4 million from $122.2 million.

The firm's net loss for the year was $175.8 million, a 68 percent decline from 2022's net loss of $549.0 million. Adjusted net loss for the year was $126.3 million.

R&D expenses during 2023 were down 32 percent to $58.3 million from $86.2 million, as SG&A costs shrank 42 percent to $194.8 million from $338.3 million in 2022.

At the end of 2023, GeneDx had cash, cash equivalents, and marketable securities totaling $130.2 million.

Looking ahead, the company said that it expects 2024 revenues in the range of $220 million to $230 million, with a cash burn between $75 million and $80 million.

"Our strong fourth quarter results were a product of our relentless focus on exome and genome revenue growth, uplift from gross margin expansion, and continued efforts to meaningfully reduce our cash burn," GeneDx CEO Katherine Stueland said in a statement. "With our focus and disciplined approach to delivering on our goals in 2024, we are confident in our ability to continue to execute and reach profitability in 2025."