NEW YORK – NeoGenomics reported before the opening of the market on Friday that its second quarter revenues rose 40 percent year over year, thanks largely to a 37 percent increase in clinical services revenues.
For the three months ended June 30, the cancer genetics testing company reported total revenues of $121.7 million, up from $87.0 million during the same period a year ago and beating the average Wall Street estimate of $118.2 million.
Clinical services revenues for the quarter rose to $101.4 million from $73.9 million in Q2 2020. The company noted that clinical services revenues rose 41 percent year over year, excluding COVID-19 PCR testing. Clinical test volumes increased 37 percent year over year, and the average revenue per clinical test increased by 3 percent to $360.
Pharma services revenues for Q2 rose 55 percent to $20.3 million from $13.1 million in Q2 2020, primarily due to an increase in revenues related to clinical trials and informatics.
"Second-quarter results were strong as all three of our divisions grew significantly year over year," NeoGenomics CEO Mark Mallon said in a statement. "Importantly, our core cancer businesses showed meaningful signs of recovery as our clinical business processed record oncology volumes and pharma services posted record revenues."
On a conference call with analysts following the release of the earnings, Mallon noted that the company's "strategic growth areas" of pharma services, informatics, and next-generation sequencing testing in clinical services were strong contributors during the quarter and now account for more than a third of the company's total revenues.
He added that the company performed 281,000 cancer tests during the quarter. However, Mallon also noted that NeoGenomics had anticipated that its sales teams would once again have full access to doctors' offices in the second half of the year, but that a possible resurgence in the COVID-19 pandemic driven by the Delta variant might make this impossible in some parts of the country, which could affect volumes.
The firm recorded net income in Q2 of $77.4 million, or $.59 per share, compared to a loss of $6.8 million, or $.06 per share, in Q2 2020. On an adjusted basis, the company reported a loss per share of $.01, beating analysts' consensus expectation for a net loss of $.06 per share.
NeoGenomics' Q2 R&D costs rose 67 percent to $3.5 million from $2.1 million in the year-ago quarter, and its SG&A expenses rose 60 percent to $71.8 million from $44.8 million.
The company ended the quarter with $368.8 million in cash and cash equivalents, $4.1 million in restricted cash, and $203.0 million in marketable securities.
NeoGenomics reiterated its 2021 revenue forecast for consolidated revenues of $490 million to $510 million, and a net loss of $65 million to $70 million. Analysts, on average, expect revenues of $500.2 million for 2021.
The firm's shares fell nearly 3 percent to $46.39 in morning trading on the Nasdaq.