NeoGenomics Reports Third Quarter 2024 Results
Adjusted EBITDA Improves 305%;
Third Quarter 2024 Highlights As Compared To Third Quarter 2023 |
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“We delivered a strong third quarter, again growing revenue by double digits and increasing adjusted EBITDA by over 300%, all while serving a record number of patients,” said
Third-Quarter Results
Consolidated revenue for the third quarter of 2024 was
Consolidated gross profit for the third quarter of 2024 was
Operating expenses for the third quarter of 2024 were
Net loss for the quarter decreased
Adjusted EBITDA(2) increased
Cash and cash equivalents and marketable securities totaled
2024 Financial Guidance (3)
The Company again revised its full-year 2024 guidance(3), as previously revised on
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FY 2023 |
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Previously Revised
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Revised
|
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YOY % Change from
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(in millions) |
|
Actual |
|
Low |
|
High |
|
Low |
|
High |
|
Low |
|
High |
||||||||||||
Consolidated revenue |
|
$ |
592 |
|
|
$ |
655 |
|
|
$ |
667 |
|
|
$ |
655 |
|
|
$ |
667 |
|
|
11 |
% |
|
13 |
% |
Net loss |
|
$ |
(88 |
) |
|
$ |
(88 |
) |
|
$ |
(81 |
) |
|
$ |
(81 |
) |
|
$ |
(78 |
) |
|
8 |
% |
|
11 |
% |
Adjusted EBITDA |
|
$ |
3 |
|
|
$ |
33 |
|
|
$ |
37 |
|
|
$ |
37 |
|
|
$ |
40 |
|
|
1133 |
% |
|
1233 |
% |
______________________________________
(1) |
|
Clinical testing excludes tests and revenue for |
(2) |
|
The Company has provided adjusted financial information that has not been prepared in accordance with GAAP, including Adjusted EBITDA, Adjusted Gross Profit Margin, Adjusted Net (Loss) Income, and Adjusted Diluted EPS. Each of these measures is defined in the section of this report entitled “Use of Non-GAAP Financial Measures.” See also the tables reconciling such measures to their closest GAAP equivalent. |
(3) |
|
The Company reserves the right to adjust this guidance at any time based on the ongoing execution of its business plan. Current and prospective investors are encouraged to perform their own due diligence before buying or selling any of the Company’s securities, and are reminded that the foregoing estimates should not be construed as a guarantee of future performance. |
Conference Call
The Company has scheduled a webcast and conference call to discuss its third quarter 2024 results on Tuesday,
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Forward Looking Statements
This press release includes forward-looking statements. These forward-looking statements generally can be identified by the use of words such as “anticipate,” “expect,” “plan,” “could,” “would,” “may,” “will,” “believe,” “estimate,” “forecast,” “goal,” “project,” “guidance,” “plan,” “potential” and other words of similar meaning, although not all forward-looking statements include these words. This press release includes forward-looking statements. These forward-looking statements address various matters, including statements regarding improving operational efficiency, returning to profitable growth and the Company's ongoing executive recruitment process. Each forward-looking statement contained in this press release is subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others, the Company's ability to identify and implement appropriate financial and operational initiatives to improve performance, to identify and recruit executive candidates, to continue gaining new customers, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, and the risks identified under the heading "Risk Factors" contained in the Company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and the Company's other filings with the
We caution investors not to place undue reliance on the forward-looking statements contained in this press release. You are encouraged to read our filings with the
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ASSETS |
|
|
|
|
||
Current assets |
|
|
|
|
||
Cash and cash equivalents |
|
$ |
361,992 |
|
$ |
342,488 |
Marketable securities, at fair value |
|
|
25,821 |
|
|
72,715 |
Accounts receivable, net |
|
|
151,428 |
|
|
131,227 |
Inventories |
|
|
24,457 |
|
|
24,156 |
Prepaid assets |
|
|
18,235 |
|
|
17,987 |
Other current assets |
|
|
8,308 |
|
|
8,239 |
Total current assets |
|
|
590,241 |
|
|
596,812 |
Property and equipment, net |
|
|
93,038 |
|
|
92,012 |
Operating lease right-of-use assets |
|
|
81,442 |
|
|
91,769 |
Intangible assets, net |
|
|
348,042 |
|
|
373,128 |
|
|
|
522,766 |
|
|
522,766 |
Other assets |
|
|
5,582 |
|
|
4,742 |
Total non-current assets |
|
|
1,050,870 |
|
|
1,084,417 |
Total assets |
|
$ |
1,641,111 |
|
$ |
1,681,229 |
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
||
Current liabilities |
|
|
|
|
||
Accounts payable and other current liabilities |
|
$ |
92,266 |
|
$ |
90,694 |
Current portion of operating lease liabilities |
|
|
3,716 |
|
|
5,610 |
Current portion of convertible senior notes, net |
|
|
200,424 |
|
|
— |
Total current liabilities |
|
|
296,406 |
|
|
96,304 |
Long-term liabilities |
|
|
|
|
||
Operating lease liabilities |
|
|
62,172 |
|
|
67,871 |
Convertible senior notes, net |
|
|
339,956 |
|
|
538,198 |
Deferred income tax liabilities, net |
|
|
22,771 |
|
|
24,285 |
Other long-term liabilities |
|
|
11,596 |
|
|
13,034 |
Total long-term liabilities |
|
|
436,495 |
|
|
643,388 |
Total liabilities |
|
$ |
732,901 |
|
$ |
739,692 |
Stockholders’ equity |
|
|
|
|
||
Total stockholders’ equity |
|
$ |
908,210 |
|
$ |
941,537 |
Total liabilities and stockholders’ equity |
|
$ |
1,641,111 |
|
$ |
1,681,229 |
|
||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
NET REVENUE |
|
|
|
|
|
|
|
|
Clinical Services |
|
|
|
|
|
|
|
|
|
|
22,041 |
|
24,401 |
|
66,860 |
|
70,513 |
Total net revenue |
|
167,824 |
|
151,954 |
|
488,566 |
|
436,091 |
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
92,944 |
|
89,643 |
|
275,723 |
|
259,075 |
|
|
|
|
|
|
|
|
|
GROSS PROFIT |
|
74,880 |
|
62,311 |
|
212,843 |
|
177,016 |
Operating expenses: |
|
|
|
|
|
|
|
|
General and administrative |
|
66,969 |
|
61,486 |
|
196,094 |
|
183,343 |
Research and development |
|
7,684 |
|
5,285 |
|
23,190 |
|
20,182 |
Sales and marketing |
|
20,415 |
|
17,610 |
|
62,313 |
|
52,770 |
Restructuring charges |
|
1,009 |
|
2,125 |
|
4,951 |
|
9,883 |
Total operating expenses |
|
96,077 |
|
86,506 |
|
286,548 |
|
266,178 |
LOSS FROM OPERATIONS |
|
(21,197) |
|
(24,195) |
|
(73,705) |
|
(89,162) |
Interest income |
|
(4,673) |
|
(4,525) |
|
(14,099) |
|
(12,057) |
Interest expense |
|
1,642 |
|
1,685 |
|
4,993 |
|
5,226 |
Other (income) expense, net |
|
(317) |
|
96 |
|
(52) |
|
(520) |
Loss before taxes |
|
(17,849) |
|
(21,451) |
|
(64,547) |
|
(81,811) |
Income tax benefit |
|
(150) |
|
(2,935) |
|
(1,145) |
|
(8,169) |
NET LOSS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS PER SHARE |
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
Basic |
|
126,953 |
|
125,687 |
|
126,491 |
|
125,358 |
Diluted |
|
126,953 |
|
125,687 |
|
126,491 |
|
125,358 |
|
||||||||
|
Nine Months Ended |
|||||||
|
|
2024 |
|
2023 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
||||
Net loss |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation |
|
|
29,274 |
|
|
|
27,872 |
|
Amortization of intangibles |
|
|
25,085 |
|
|
|
26,350 |
|
Stock-based compensation |
|
|
25,085 |
|
|
|
17,643 |
|
Non-cash operating lease expense |
|
|
7,022 |
|
|
|
6,860 |
|
Amortization of convertible debt discount and debt issue costs |
|
|
2,182 |
|
|
|
2,154 |
|
Impairment of assets |
|
|
333 |
|
|
|
1,703 |
|
Loss on disposal of assets, net |
|
|
63 |
|
|
|
334 |
|
Other adjustments |
|
|
141 |
|
|
|
122 |
|
Changes in assets and liabilities, net |
|
|
(28,560 |
) |
|
|
(29,133 |
) |
Net cash used in operating activities |
|
|
(2,777 |
) |
|
|
(19,737 |
) |
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
||||
Purchases of marketable securities |
|
|
— |
|
|
|
(6,756 |
) |
Proceeds from maturities of marketable securities |
|
|
47,784 |
|
|
|
87,963 |
|
Purchases of property and equipment |
|
|
(29,462 |
) |
|
|
(21,695 |
) |
Net cash provided by investing activities |
|
|
18,322 |
|
|
|
59,512 |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
||||
Repayment of equipment financing obligations |
|
|
— |
|
|
|
(66 |
) |
Issuance of common stock, net |
|
|
3,959 |
|
|
|
3,350 |
|
Net cash provided by financing activities |
|
|
3,959 |
|
|
|
3,284 |
|
Net change in cash and cash equivalents |
|
|
19,504 |
|
|
|
43,059 |
|
Cash and cash equivalents, beginning of period |
|
|
342,488 |
|
|
|
263,180 |
|
Cash and cash equivalents, end of period |
|
$ |
361,992 |
|
|
$ |
306,239 |
|
Use of Non-GAAP Financial Measures
In order to provide greater transparency regarding our operating performance, the financial results and financial guidance in this press release refer to certain non-GAAP financial measures that involve adjustments to GAAP results. Non-GAAP financial measures exclude certain income and/or expense items that management believes are not directly attributable to the Company’s core operating results and/or certain items that are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. Management believes that the presentation of operating results using non-GAAP financial measures provides useful supplemental information to investors by facilitating the analysis of the Company’s core test-level operating results across reporting periods and when comparing those same results to those published by our peers. These non-GAAP financial measures may also assist investors in evaluating future prospects. Management also uses non-GAAP financial measures for financial and operational decision making, planning and forecasting purposes and to manage the business. These non-GAAP financial measures do not replace the presentation of financial information in accordance with
Definitions of Non-GAAP Measures
Non-GAAP Adjusted EBITDA
“Adjusted EBITDA” is defined by
Non-GAAP Adjusted Cost of Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin
“Adjusted cost of revenue” is defined by
“Adjusted gross profit” is defined by
“Adjusted gross profit margin” is defined by
Non-GAAP Adjusted Net (Loss) Income
“Adjusted net (loss) income” is defined by
Non-GAAP Adjusted Diluted EPS
“Adjusted diluted EPS” is defined by
Reconciliation of GAAP Net Loss to Non-GAAP EBITDA and Adjusted EBITDA
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|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss (GAAP) |
$ |
(17,699 |
) |
|
$ |
(18,516 |
) |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to net loss: |
|
|
|
|
|
|
|
||||||||
Interest income |
|
(4,673 |
) |
|
|
(4,525 |
) |
|
|
(14,099 |
) |
|
|
(12,057 |
) |
Interest expense |
|
1,642 |
|
|
|
1,685 |
|
|
|
4,993 |
|
|
|
5,226 |
|
Income tax benefit |
|
(150 |
) |
|
|
(2,935 |
) |
|
|
(1,145 |
) |
|
|
(8,169 |
) |
Depreciation |
|
9,623 |
|
|
|
9,349 |
|
|
|
29,274 |
|
|
|
27,872 |
|
Amortization of intangibles |
|
8,362 |
|
|
|
8,784 |
|
|
|
25,085 |
|
|
|
26,350 |
|
EBITDA (non-GAAP) |
$ |
(2,895 |
) |
|
$ |
(6,158 |
) |
|
$ |
(19,294 |
) |
|
$ |
(34,420 |
) |
Further adjustments to EBITDA: |
|
|
|
|
|
|
|
||||||||
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
Stock-based compensation expense |
|
8,470 |
|
|
|
7,180 |
|
|
|
25,085 |
|
|
|
17,643 |
|
Restructuring charges |
|
1,009 |
|
|
|
2,125 |
|
|
|
4,951 |
|
|
|
9,883 |
|
IP litigation costs(4) |
|
6,113 |
|
|
|
— |
|
|
|
12,356 |
|
|
|
— |
|
Other significant expenses, net(5) |
|
677 |
|
|
|
158 |
|
|
|
4,637 |
|
|
|
532 |
|
Adjusted EBITDA (non-GAAP) |
$ |
13,374 |
|
|
$ |
3,305 |
|
|
$ |
27,735 |
|
|
$ |
(5,862 |
) |
_________________
(4) |
|
For the three and nine months ended |
(5) |
|
For the three months ended |
Reconciliation of Segment and Consolidated GAAP Cost of Revenue, Gross Profit and Gross Profit Margin to
|
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|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||||||||
|
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||||||
Clinical Services: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
145,783 |
|
|
$ |
127,553 |
|
|
14.3 |
% |
|
$ |
421,706 |
|
|
$ |
365,578 |
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
80,058 |
|
|
$ |
73,994 |
|
|
8.2 |
% |
|
$ |
234,996 |
|
|
$ |
213,032 |
|
|
10.3 |
% |
Adjustments to cost of revenue(6) |
|
|
(4,561 |
) |
|
|
(4,264 |
) |
|
|
|
|
(13,720 |
) |
|
|
(12,792 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
75,497 |
|
|
$ |
69,730 |
|
|
8.3 |
% |
|
$ |
221,276 |
|
|
$ |
200,240 |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
65,725 |
|
|
$ |
53,559 |
|
|
22.7 |
% |
|
$ |
186,710 |
|
|
$ |
152,546 |
|
|
22.4 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
70,286 |
|
|
$ |
57,823 |
|
|
21.6 |
% |
|
$ |
200,430 |
|
|
$ |
165,338 |
|
|
21.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
45.1 |
% |
|
|
42.0 |
% |
|
|
|
|
44.3 |
% |
|
|
41.7 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
48.2 |
% |
|
|
45.3 |
% |
|
|
|
|
47.5 |
% |
|
|
45.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
22,041 |
|
|
$ |
24,401 |
|
|
(9.7 |
)% |
|
$ |
66,860 |
|
|
$ |
70,513 |
|
|
(5.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
12,886 |
|
|
$ |
15,649 |
|
|
(17.7 |
)% |
|
$ |
40,727 |
|
|
$ |
46,043 |
|
|
(11.5 |
)% |
Adjustments to cost of revenue(7) |
|
|
(702 |
) |
|
|
(589 |
) |
|
|
|
|
(2,115 |
) |
|
|
(1,768 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
12,184 |
|
|
$ |
15,060 |
|
|
(19.1 |
)% |
|
$ |
38,612 |
|
|
$ |
44,275 |
|
|
(12.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
9,155 |
|
|
$ |
8,752 |
|
|
4.6 |
% |
|
$ |
26,133 |
|
|
$ |
24,470 |
|
|
6.8 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
9,857 |
|
|
$ |
9,341 |
|
|
5.5 |
% |
|
$ |
28,248 |
|
|
$ |
26,238 |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
41.5 |
% |
|
|
35.9 |
% |
|
|
|
|
39.1 |
% |
|
|
34.7 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
44.7 |
% |
|
|
38.3 |
% |
|
|
|
|
42.2 |
% |
|
|
37.2 |
% |
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue (GAAP) |
|
$ |
167,824 |
|
|
$ |
151,954 |
|
|
10.4 |
% |
|
$ |
488,566 |
|
|
$ |
436,091 |
|
|
12.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cost of revenue (GAAP) |
|
$ |
92,944 |
|
|
$ |
89,643 |
|
|
3.7 |
% |
|
$ |
275,723 |
|
|
$ |
259,075 |
|
|
6.4 |
% |
Adjustments to cost of revenue(6)(7) |
|
|
(5,263 |
) |
|
|
(4,853 |
) |
|
|
|
|
(15,835 |
) |
|
|
(14,560 |
) |
|
|
||
Adjusted cost of revenue (non-GAAP) |
|
$ |
87,681 |
|
|
$ |
84,790 |
|
|
3.4 |
% |
|
$ |
259,888 |
|
|
$ |
244,515 |
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit (GAAP) |
|
$ |
74,880 |
|
|
$ |
62,311 |
|
|
20.2 |
% |
|
$ |
212,843 |
|
|
$ |
177,016 |
|
|
20.2 |
% |
Adjusted gross profit (non-GAAP ) |
|
$ |
80,143 |
|
|
$ |
67,164 |
|
|
19.3 |
% |
|
$ |
228,678 |
|
|
$ |
191,576 |
|
|
19.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Gross profit margin (GAAP) |
|
|
44.6 |
% |
|
|
41.0 |
% |
|
|
|
|
43.6 |
% |
|
|
40.6 |
% |
|
|
||
Adjusted gross profit margin (non-GAAP) |
|
|
47.8 |
% |
|
|
44.2 |
% |
|
|
|
|
46.8 |
% |
|
|
43.9 |
% |
|
|
_______________
(6) |
|
Clinical Services cost of revenue adjustments for the three months ended |
(7) |
|
|
Reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss and GAAP EPS to Non-GAAP Adjusted EPS
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss (GAAP) |
$ |
(17,699 |
) |
|
$ |
(18,516 |
) |
|
$ |
(63,402 |
) |
|
$ |
(73,642 |
) |
Adjustments to net loss, net of tax: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
8,362 |
|
|
|
8,784 |
|
|
|
25,085 |
|
|
|
26,350 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
500 |
|
Stock-based compensation expense |
|
8,470 |
|
|
|
7,180 |
|
|
|
25,085 |
|
|
|
17,643 |
|
Restructuring charges |
|
1,009 |
|
|
|
2,125 |
|
|
|
4,951 |
|
|
|
9,883 |
|
IP litigation costs(8) |
|
6,113 |
|
|
|
— |
|
|
|
12,356 |
|
|
|
— |
|
Other significant expenses, net(9) |
|
677 |
|
|
|
158 |
|
|
|
4,637 |
|
|
|
532 |
|
Adjusted net income/(loss) (non-GAAP) |
$ |
6,932 |
|
|
$ |
(269 |
) |
|
$ |
8,712 |
|
|
$ |
(18,734 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share (GAAP) |
|
|
|
|
|
|
|
||||||||
Diluted EPS |
$ |
(0.14 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.50 |
) |
|
$ |
(0.59 |
) |
Adjustments to diluted loss income per share: |
|
|
|
|
|
|
|
||||||||
Amortization of intangibles |
|
0.07 |
|
|
|
0.07 |
|
|
|
0.20 |
|
|
|
0.21 |
|
CEO transition costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Stock-based compensation expense |
|
0.07 |
|
|
|
0.06 |
|
|
|
0.20 |
|
|
|
0.14 |
|
Restructuring charges |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.08 |
|
IP litigation costs(8) |
|
0.05 |
|
|
|
— |
|
|
|
0.10 |
|
|
|
— |
|
Other significant expenses, net(9) |
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Rounding and impact of diluted shares in adjusted diluted shares(10) |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
Adjusted diluted EPS (non-GAAP) |
$ |
0.05 |
|
|
$ |
— |
|
|
$ |
0.07 |
|
|
$ |
(0.15 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used in computation of adjusted diluted EPS: |
|
|
|
|
|
|
|
||||||||
Diluted common shares (GAAP) |
|
126,953 |
|
|
|
125,687 |
|
|
|
126,491 |
|
|
|
125,358 |
|
Dilutive effect of options, restricted stock, and converted shares(11)(12) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted diluted shares outstanding (non-GAAP) |
|
126,953 |
|
|
|
125,687 |
|
|
|
126,491 |
|
|
|
125,358 |
|
_______________
(8) |
|
For the three and nine months ended |
(9) |
|
For the three months ended |
(10) |
|
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive or GAAP net (loss) income is positive and adjusted net (loss) income is negative, also compensates for the effects of additional diluted shares included or excluded in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. |
(11) |
|
In those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. |
(12) |
|
In those periods in which GAAP net (loss) income is positive and adjusted net (loss) income is negative, this adjustment excludes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of common shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such common shares would have been outstanding in the reporting period. |
Reconciliation of Non-GAAP Financial Guidance to Corresponding GAAP Measures
(in thousands, except per share amounts)
(unaudited)
GAAP net loss in 2024 will be impacted by certain charges, including: (i) expense related to the amortization of intangible assets, (ii) stock-based compensation, (iii) restructuring charges, and (iv) other one-time expenses. These charges have been included in GAAP net loss available to stockholders and GAAP net loss per share; however, they have been removed from adjusted net loss and adjusted diluted net loss per share.
The following table reconciles the Company’s 2024 outlook for net loss and EPS to the corresponding non-GAAP measures of adjusted net loss, adjusted EBITDA, and adjusted diluted EPS:
|
Year Ended |
||||||
|
|
|
|
||||
Net loss (GAAP) |
$ |
(81,000 |
) |
|
$ |
(78,000 |
) |
Amortization of intangibles |
|
33,000 |
|
|
|
33,000 |
|
Stock-based compensation expenses |
|
33,000 |
|
|
|
33,000 |
|
Restructuring charges |
|
6,000 |
|
|
|
6,000 |
|
Other one-time expenses |
|
19,000 |
|
|
|
19,000 |
|
Adjusted net income (non-GAAP) |
|
10,000 |
|
|
|
13,000 |
|
Interest and taxes |
|
(12,000 |
) |
|
|
(12,000 |
) |
Depreciation |
|
39,000 |
|
|
|
39,000 |
|
Adjusted EBITDA (non-GAAP) |
$ |
37,000 |
|
|
$ |
40,000 |
|
|
|
|
|
||||
Net loss per diluted share (GAAP) |
$ |
(0.64 |
) |
|
$ |
(0.61 |
) |
Adjustments to net loss per diluted share: |
|
|
|
||||
Amortization of intangibles |
|
0.26 |
|
|
|
0.26 |
|
Stock-based compensation expenses |
|
0.26 |
|
|
|
0.26 |
|
Restructuring charges |
|
0.05 |
|
|
|
0.05 |
|
Other one-time expenses |
|
0.15 |
|
|
|
0.15 |
|
Rounding and impact of diluted shares in adjusted diluted shares(13) |
|
— |
|
|
|
(0.01 |
) |
Adjusted diluted EPS(14) (non-GAAP) |
$ |
0.08 |
|
|
$ |
0.10 |
|
|
|
|
|
||||
Weighted average assumed shares outstanding in 2024: |
|
|
|
||||
Diluted shares (GAAP) |
|
127,000 |
|
|
|
127,000 |
|
Options, restricted stock, and converted shares not included in diluted shares(14) |
|
— |
|
|
|
— |
|
Adjusted diluted shares outstanding (non-GAAP) |
|
127,000 |
|
|
|
127,000 |
|
_________________
(13) |
|
This adjustment is for rounding and, in those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, also compensates for the effects of additional diluted shares included in adjusted diluted shares outstanding for the treasury stock impact of outstanding stock options and restricted stock and the if-converted impact of convertible notes. |
(14) |
|
For those periods in which GAAP net (loss) income is negative and adjusted net (loss) income is positive, this adjustment includes any options or restricted stock that would be outstanding as dilutive instruments using the treasury stock method and the weighted average number of shares that would be outstanding if the convertible notes were converted into common stock on the original issue date based on the number of days such shares would have been outstanding in the reporting period, until the effect of these adjustments are anti-dilutive. |
Supplemental Information
|
|||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||
|
2024 |
|
2023 |
|
% Change |
|
2024 |
|
2023 |
|
% Change |
||||||
Clinical(15): |
|
|
|
|
|
|
|
|
|
|
|
||||||
Number of tests performed |
|
314,564 |
|
|
289,637 |
|
8.6 |
% |
|
|
927,061 |
|
|
870,229 |
|
6.5 |
% |
Average revenue/test |
$ |
463 |
|
$ |
440 |
|
5.2 |
% |
|
$ |
455 |
|
$ |
420 |
|
8.3 |
% |
_________________
(15) |
|
Excludes tests and revenue for |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105211614/en/
Vice President, Investor Relations and ESG
Kendra.sweeney@neogenomics.com
T: +1-239-877-7474
Source: