NEW YORK – GeneDx reported after market close on Tuesday that its second quarter revenues rose 45 percent year over year, fueled by increased demand for whole-exome and whole-genome testing.
For the three months ended June 30, the Stamford, Connecticut-based genetic diagnostics company, formerly known as Sema4, booked $70.5 million in revenues, compared to $48.7 million a year ago and way above the Wall Street consensus estimate of $59.3 million.
Of total revenues, $69.4 million came from diagnostic tests and $1.1 million from other revenue, compared to $46.6 million and $2.1 million, respectively, a year ago. Revenues from whole-exome and whole-genome testing accounted for 72 percent of the total, or $50.7 million, up 77 percent from the $28.7 million in the prior-year quarter. Hereditary cancer testing revenues were $3.8 million, the same as in Q2 2023. Other panel testing generated $13.3 million in revenues during Q2, a 25 percent increase from $10.6 million in the same period a year ago. Revenues from the legacy Sema4 business were $1.6 million, shrinking 54 percent compared to $3.5 million in Q2 2023.
During the quarter, GeneDx performed 57,703 tests, compared to 54,928 in the prior-year quarter. These tests included 18,017 whole-exome and whole-genome tests, a 52 percent increase year over year compared to 11,855 in Q2 2023. Hereditary cancer testing volume was 5,482, a 23 percent decline from 7,142 in the prior year. Additionally, the company delivered 34,204 other panel tests, dropping 5 percent from 35,931 a year ago.
GeneDx's R&D spending in the quarter decreased 36 percent year over year to $10.9 million from $17.1 million, while its SG&A costs dropped 20 percent to $41.8 million from $52.5 million.
Net loss for the quarter was $29.2 million, or $1.10 per share, compared to a net loss of $46.7 million, or $1.84 per share, in Q2 2023. Adjusted net loss was $2.7 million, compared to an adjusted net loss of $41.8 million a year earlier. Wall Street analysts, on average, had expected a net loss of $.30 per share.
GeneDx said the firm’s Q2 net loss included a one-time legal expense of $13 million. According to a recent filing with the US Securities and Exchange Commission, GeneDx settled a 2023 class action lawsuit with stockholders during the quarter who allegedly did not redeem their shares in connection with the business combination between CM Life Sciences and the legacy Sema4.
The company ended the quarter with $56.1 million in cash and cash equivalents and $50.8 million in marketable securities.
For the full year, GeneDx now expects revenues between $255 million and $265 million versus the previous guidance of $235.0 million to $245.0 million. The company reiterated that it expects to be profitable in 2025.
In midmorning trading on the Nasdaq, shares of GeneDx were up 2 percent at $19.10.