GeneDx Reports Fourth Quarter and Full Year 2024 Financial Results and Provides 2025 Guidance
GeneDx Holdings Corp. (Nasdaq: WGS), a leader in leveraging genomic insights to drive improved health outcomes, has announced its financial results for the fourth quarter and full year of 2024. The company also provided its financial outlook for 2025, highlighting expectations for continued revenue growth and profitability.
CEO’s Statement on Performance and Outlook
Katherine Stueland, President and Chief Executive Officer of GeneDx, reflected on the company’s achievements in 2024 and its strategic direction moving forward:
“The fourth quarter capped an outstanding year for GeneDx, as we work to end the diagnostic odyssey with earlier intervention using our industry-leading exome and genome testing for an ever-growing number of families. Importantly, diagnosing disease earlier with our cost-effective technology means GeneDx can help save the healthcare system valuable dollars. Looking ahead, we’ll introduce our testing to a larger population of patients, as we expand in the outpatient pediatric setting, the NICU, adult conditions, and eventually realize the promise of newborn screening. As we move into 2025, we have the financial strength, scale, and an incredibly talented team in place to fundamentally improve how we diagnose any genetic disease as early as possible so people can live longer, healthier lives.”
Financial Highlights: Fourth Quarter and Full Year 2024 (Unaudited)
Revenue Growth
- Fourth Quarter 2024:
- Total revenue reached $95.3 million, marking a 64% increase year-over-year and 24% growth sequentially.
- Total company GAAP revenue was $95.6 million.
- Exome and genome test revenue surged to $78.8 million, reflecting 101% growth year-over-year and 31% sequentially.
- Full Year 2024:
- Total revenue increased 56% year-over-year, reaching $302.3 million.
- GAAP revenue stood at $305.5 million.
- Exome and genome test revenue climbed 88% year-over-year to $233.5 million.
Test Volume Expansion
- Fourth Quarter 2024:
- Exome and genome test volume reached 20,676, up 32% year-over-year and 7% sequentially.
- Exome and genome tests constituted 38% of all tests, compared to 27% in Q4 2023 and 33% in Q3 2024.
- Full Year 2024:
- Test volume rose 51% year-over-year to 74,547.
- Exome and genome tests accounted for 33% of all results, up from 22% in 2023.
Profitability and Gross Margin Expansion
- Fourth Quarter 2024:
- Adjusted gross margin improved to 70%, up from 56% in Q4 2023 and 64% in Q3 2024.
- GAAP gross margin was 69%.
- Exome and genome adjusted gross margin exceeded 70%.
- Full Year 2024:
- Adjusted gross margin reached 65%, up from 45% in 2023.
- GAAP gross margin was 64%.
Operating Expenses
- Fourth Quarter 2024:
- Adjusted operating expenses totaled $49.0 million, a 1% increase year-over-year.
- GAAP operating expenses stood at $56.6 million.
- Full Year 2024:
- Adjusted operating expenses were $185.9 million, representing a 14% decrease year-over-year.
- GAAP operating expenses amounted to $214.2 million.
Net Income (Loss)
- Fourth Quarter 2024:
- Adjusted net income: $16.8 million.
- GAAP net income: $5.4 million.
- Full Year 2024:
- Adjusted net income: $6.7 million.
- GAAP net loss: $52.3 million.
Cash Position and Liquidity
- As of December 31, 2024, GeneDx had $142.2 million in cash, cash equivalents, marketable securities, and restricted cash.
- Cash flow in Q4 2024 included $12.4 million from operations and $31.9 million in net proceeds from equity issuance.
- $19.6 million was allocated to settlement liabilities from the Legacy Sema4 business.
GeneDx Full-Year 2025 Guidance
Management projects continued strong growth in 2025:
- Revenue between $350 million and $360 million.
- Exome/genome revenue growth of at least 30%.
- Adjusted gross margins between 65%-67%.
- Profitability with adjusted net income each quarter.
Business Developments and Strategic Growth Initiatives
Market Expansion and Clinical Adoption
- GeneDx now holds over 750,000 clinical exomes and genomes in its dataset, supported by 6 million phenotypic datapoints.
- Expansion of state Medicaid coverage for genomic testing in 32 states (pediatric outpatients) and 14 states (NICU settings).
- New Partnerships and Innovations:
- UltraRapid Whole Genome Sequencing launched in February 2025, delivering results in two days.
- Epic Aura3 integration for seamless genomic testing within hospital systems.
- New telehealth pathway launched in January 2025 to accelerate access to exome testing.
Technology and Product Enhancements
- Improved rapid whole genome sequencing (rWGS) turnaround times to five days.
- Introduced buccal (cheek swab) sample collection for whole genome sequencing.
- Expanded repeat expansion coverage to improve diagnostic yield.
Strategic Partnerships and Leadership Updates
- Expanded Epilepsy Partnership Program with Biogen, Praxis Precision Medicines, and Stoke Therapeutics.
- GeneDx Discover launched in November 2024, providing de-identified genetic data for biopharma research.
- New executive appointments: Bryan Dechairo (COO) and Heidi Chen (Chief Legal Officer & Corporate Secretary).
- Strategic partnership with Komodo Health to enhance access to rare disease data for biopharma companies.
