Neogenomics Inc (NEO) 2023 Q4 法說會逐字稿

Welcome to the NeoGenomics' fourth-quarter and full-year 2023 financial results conference call and webcast. (Operator Instructions)

歡迎參加 NeoGenomics 第四季和 2023 年全年財務業績電話會議和網路廣播。（操作員說明）

Please note this call is being recorded and an audio replay will be available on the company's website. Kendra Sweeney, Vice President of Investor Relations, you may begin your conference.

請注意，本次通話正在錄音，並將在公司網站上提供音訊重播。Kendra Sweeney，投資者關係副總裁，您可以開始會議了。

Thank you, John. Good afternoon, everyone, and welcome to the NeoGenomics' fourth-quarter and full-year 2023 financial results call. With me today to discuss the results are Chris Smith, Chief Executive Officer; and Jeff Sherman, Chief Financial Officer.

謝謝你，約翰。大家下午好，歡迎參加 NeoGenomics 第四季和 2023 年全年財務業績電話會議。今天與我一起討論結果的是執行長克里斯史密斯 (Chris Smith)；和首席財務官傑夫謝爾曼。

Additional members of the management team are available for Q&A, including Vishal Sikri, President of Advanced Diagnostics; Warren Stone, President of Clinical Services; Melody Harris, President of Enterprise Operations; and Ali Olivo, General Counsel and Head of Business Development.

管理團隊的其他成員也可以參加問答，包括 Advanced Diagnostics 總裁 Vishal Sikri； Warren Stone，臨床服務總裁； Melody Harris，企業營運總裁；以及總法律顧問兼業務發展主管 Ali Olivo。

This call is being simultaneously webcast. We will be referring to a slide presentation that has been posted to the Investors tab on our website at ir.neogenomics.com.

該電話會議正在同時進行網路直播。我們將參考已發佈到我們網站 ir.neogenomics.com 投資者選項卡上的幻燈片簡報。

Starting on slide 2, during this call, we will make forward-looking statements regarding our anticipated future performance. We caution you that such statements reflect our best judgment based on factors currently known to us and that actual events or results could differ materially.

從投影片 2 開始，在本次電話會議中，我們將就我們預期的未來業績做出前瞻性聲明。我們提醒您，此類陳述反映了我們根據目前已知因素做出的最佳判斷，實際事件或結果可能存在重大差異。

Please refer to our most recent Forms 10-K, 10-Q, and 8-K we filed with the SEC to identify important risks and other factors that may cause our actual results to differ materially from the forward-looking statements. The forward-looking statements made during this call speak only as of the original date of the call, and we are under no obligation to update or revise any of these statements.

請參閱我們向 SEC 提交的最新表格 10-K、10-Q 和 8-K，以確定可能導致我們的實際結果與前瞻性陳述有重大差異的重要風險和其他因素。本次電話會議期間所做的前瞻性陳述僅代表截至原始電話會議日期的情況，我們沒有義務更新或修改任何這些陳述。

During this call, in order to provide greater transparency regarding our operating performance, we refer to certain non-GAAP financial measures that involve adjustments to GAAP results. The non-GAAP financial measures presented should not be considered an alternative to the financial measures required by GAAP, should not be considered measures of liquidity, and are unlikely to be comparable to non-GAAP financial measures provided by other companies.

在本次電話會議中，為了提高我們經營績效的透明度，我們參考了某些涉及對 GAAP 結果進行調整的非 GAAP 財務指標。所提出的非 GAAP 財務指標不應被視為 GAAP 要求的財務指標的替代方案，不應被視為流動性指標，並且不可能與其他公司提供的非 GAAP 財務指標進行比較。

Any non-GAAP financial measures referenced on this call are reconciled to the most directly comparable GAAP financial measure in a table available in the press release we issued this afternoon.

本次電話會議中引用的任何非公認會計原則財務指標均與我們今天下午發布的新聞稿中提供的表格中最直接可比較的公認會計原則財務指標進行了調整。

I will now turn the call over to Chris Smith, Chief Executive Officer of NeoGenomics.

我現在將把電話轉給 NeoGenomics 執行長 Chris Smith。

Okay. Thanks, Kendra, and welcome, everyone. Thanks for joining us this afternoon to go through our fourth-quarter and full-year financial results. As always, I really want to begin with our mission and vision statement because it's what motivates our company and our teammates on a daily basis.

好的。謝謝肯德拉，歡迎大家。感謝您今天下午加入我們，了解我們的第四季和全年財務表現。一如既往，我真的想從我們的使命和願景宣言開始，因為這是每天激勵我們公司和團隊成員的動力。

Our mission in Neo is to save lives by improving patient care. And we just had our global sales meeting at the end of January and many of our teammates shared how cancer has impacted them or their families and how we're making a difference in their lives. It's always a great reminder of why we do what we do. And I'm so proud of the impact we're having on patients and local communities we serve.

我們在 Neo 的使命是透過改善病患照護來拯救生命。我們剛剛在一月底舉行了全球銷售會議，我們的許多隊友分享了癌症如何影響他們或他們的家人，以及我們如何改變他們的生活。它總是很好地提醒我們為什麼要做我們所做的事情。我為我們所服務的患者和當地社區所產生的影響感到非常自豪。

Now let's move to slide 4 and get into the fourth-quarter highlights. As you can see, we had another strong quarter growing revenue 12% over prior year to $156 million. Clinical services revenue increased 20%, driven by strong volumes across all our modalities and another increase in revenue per test.

現在讓我們轉到投影片 4，了解第四季的亮點。正如您所看到的，我們又一個強勁的季度營收比去年同期成長了 12%，達到 1.56 億美元。由於我們所有模式的強勁銷售以及每次測試收入的再次增長，臨床服務收入增長了 20%。

As a highlight, NGS grew in excess of 40% and now represents over 25% of our clinical revenue. The strong growth in clinical services helped to mitigate the expected lower revenue in ADx due to a strong comparable in ADx in Q4 of 2022 as well as macro conditions in pharma sector and margin optimization initiatives that we took in 2023.

作為一個亮點，NGS 成長了 40% 以上，目前占我們臨床收入的 25% 以上。由於 2022 年第四季 ADx 的強勁可比性以及製藥業的宏觀狀況以及我們在 2023 年採取的利潤優化舉措，臨床服務的強勁增長有助於緩解 ADx 收入的預期下降。

From an adjusted EBITDA perspective, our progress has outpaced our internal plans. We achieved positive EBITDA in the third quarter of 2023 and significantly improved again this quarter. Adjusted EBITDA was up 900% as compared to Q4 last year to a positive $9 million. Adjusted gross profit was $73 million, representing a 46.7% margin, an improvement of 225 basis points compared to Q4 2022.

從調整後的 EBITDA 角度來看，我們的進展超出了我們的內部計劃。我們在 2023 年第三季實現了正 EBITDA，並在本季再次顯著改善。調整後 EBITDA 比去年第四季成長 900%，達到 900 萬美元。調整後毛利為 7,300 萬美元，利潤率為 46.7%，較 2022 年第四季提高 225 個基點。

Turning to slide 5 for the full-year 2023 results. Revenue was up 16% versus prior year to $592 million, driven by penetration in the community oncology market, higher volumes, a shift to higher margin modalities, and improvements in revenue cycle management.

請參閱投影片 5，以了解 2023 年全年業績。由於社區腫瘤市場的滲透、銷售的增加、向更高利潤模式的轉變以及收入週期管理的改進，收入較上年增長 16% 至 5.92 億美元。

Adjusted gross profit was $264 million, representing adjusted gross margins of 44.7% and adjusted EBITDA was positive $3 million for the full year, an improvement of $51.5 million or 107% versus prior year.

調整後毛利為 2.64 億美元，調整後毛利率為 44.7%，全年調整後 EBITDA 為正 300 萬美元，比上年增加 5,150 萬美元，即 107%。

Now on slide 6, I'm pleased that the fourth quarter continued the trend that we've seen throughout 2023, a consistent sequential improvement in revenue, adjusted gross profit, and adjusted EBITDA. Notably, our revenue growth has been strong each quarter of the year. We've built our momentum of reaching positive adjusted EBITDA in Q3 and carried that into Q4. We believe that we've laid solid foundation for growth in 2023 and expect that momentum to continue as we move throughout 2024.

現在在投影片 6 上，我很高興第四季度延續了我們在 2023 年全年看到的趨勢，收入、調整後毛利和調整後 EBITDA 持續連續改善。值得注意的是，我們每年每季的營收成長都很強勁。我們已經在第三季建立了實現正調整 EBITDA 的勢頭，並將其延續到第四季度。我們相信，我們已經為 2023 年的成長奠定了堅實的基礎，並預計這一勢頭將在 2024 年持續下去。

Let's move on to slide 7. As you may recall, at the beginning of the year, we laid out our four focus areas for 2023. They included profitably growing the core business, accelerating advanced diagnostics, driving value creation, and enhancing our people and culture.

讓我們繼續看投影片 7。您可能還記得，今年年初，我們列出了 2023 年的四個重點領域。其中包括核心業務的獲利成長、加速先進診斷、推動價值創造以及增強我們的員工和文化。

The more time I spend in the business, I'm more impressed I am with our unique competitive position in the marketplace with a breadth of cancer tests, our operational capabilities, and passionate teammates that lead our business every single day.

我在這個行業投入的時間越多，我對我們在市場上獨特的競爭地位、廣泛的癌症測試、我們的營運能力以及每天領導我們業務的熱情團隊成員的印象就越深刻。

We are a leader in oncology testing with significant share of patient test volume in the US. Our deep relationships with community pathologists and oncologists provide us an advantage in the market. And our focus on oncology testing has allowed us to develop extensive patient databases and relationships, and we view ourselves as a collaborative partner to pathologists, oncologists, hospitals, and biopharma companies we serve.

我們是腫瘤學測試領域的領導者，在美國患者測試量中佔有很大份額。我們與社區病理學家和腫瘤學家的深厚關係為我們提供了市場優勢。我們對腫瘤學測試的關注使我們能夠開發廣泛的患者資料庫和關係，我們將自己視為我們所服務的病理學家、腫瘤學家、醫院和生物製藥公司的合作夥伴。

Beyond these market conditions is strong execution by our teammates that enable us to deliver such strong quarterly and full-year results to our stakeholders. Our teammates are the foundation of our company, and we have strengthened our team throughout the year with key hires at all levels of the organization, including sales, lab operations, corporate functions. These new hires joined a highly talented group of individuals of varying backgrounds and experiences contributory to our distinguished culture that reflects our commitment to diversity, equity and inclusion.

除了這些市場條件之外，我們的團隊成員的強大執行力使我們能夠向利害關係人提供如此強勁的季度和全年業績。我們的隊友是我們公司的基礎，我們全年都透過在組織各個層級（包括銷售、實驗室營運、公司職能部門）的關鍵招募來加強我們的團隊。這些新員工加入了一個由具有不同背景和經驗的優秀人才組成的團隊，為我們傑出的文化做出了貢獻，體現了我們對多元化、公平和包容性的承諾。

And this afternoon, I'm going to focus on our three financial priorities. We continue to profitably grow our core business as we execute on our commercial strategy: protect, expand, and acquire, which has contributed to our strong volume growth, increase AUP, and improved mix. Execution of this strategy enabled us to serve more than 600,000 patients during the year.

今天下午，我將重點放在我們的三個財務重點。在執行我們的商業策略時，我們繼續實現核心業務的獲利成長：保護、擴張和收購，這有助於我們強勁的銷售成長、增加 AUP 和改善組合。這項策略的執行使我們在一年內為超過 60 萬名患者提供服務。

Our continued improvement in turnaround time has contributed to or add or above market growth rates across all modalities. In addition, the mix shift towards higher value modalities and tests have supported the delivery of yet another quarterly improvement in revenue per test. Over the last 18 months, we have doubled the size of our sales force, increasing coverage and penetration.

我們在周轉時間方面的持續改善有助於或增加或超過所有模式的市場成長率。此外，向更高價值模式和測試的組合轉變支持了每次測試收入的季度成長。在過去 18 個月中，我們的銷售隊伍規模擴大了一倍，覆蓋範圍和滲透率不斷提高。

We also introduced NeoAccess and NeoSeek software solutions to support providers in their clinical decisions and inform patients with upfront benefit checks, as well as to identify patients who may be biomarker eligible for new therapies or a clinical trial.

我們也推出了 NeoAccess 和 NeoSeek 軟體解決方案，以支援提供者的臨床決策，並透過前期福利檢查告知患者，以及識別可能符合新療法或臨床試驗生物標記資格的患者。

As a result of our increased coverage, clinical support, and patient-centric mentality, we maintained our customer experience leadership in the market with a three-point improvement in Net Promoter Score, which is now at 70.

由於我們擴大覆蓋範圍、臨床支援和以患者為中心的心態，我們保持了客戶體驗在市場上的領先地位，淨推薦值提高了三分，目前為 70 分。

Within our advanced diagnostic division, which includes pharma services, informatics, and R&D, we continue to focus on acceleration of innovation in R&D. ADx gross margins improved 368 basis points over Q4 of 2022. We built a robust product development roadmap to maintain a competitive position in solid tumor therapy selection, MRD, and heme, with the goal to gain market share and solid tumor and maintain our leadership position in heme.

在我們的高級診斷部門（包括製藥服務、資訊學和研發）中，我們繼續專注於加速研發創新。ADx 毛利率比 2022 年第四季提高了 368 個基點。我們制定了穩健的產品開發路線圖，以保持在實體瘤治療選擇、MRD 和血紅素方面的競爭地位，目標是獲得市場份額和實體瘤，並保持我們在血紅素方面的領導地位。

On the R&D front, we launched 12 new or upgraded assays across heme and solid tumor in 2023. Within informatics, we announced a collaboration to advance heme research and AI solutions with a dataset that covers over 1 million patient lives across more than 1,000 oncology clinics.

在研發方面，我們在 2023 年針對血紅素和實體瘤推出了 12 項新的或升級的檢測方法。在資訊學領域，我們宣布合作推動血紅素研究和人工智慧解決方案，其資料集涵蓋 1,000 多家腫瘤診所超過 100 萬患者的生命。

The progress and innovation was displayed throughout the year as we presented new data at several conferences. We have focused on driving value creation from a financial perspective, and we are pleased that we have delivered even further margin expansion in Q4 with efficiencies driving enhanced operating leverage.

當我們在幾次會議上展示新數據時，全年都展示了進步和創新。我們專注於從財務角度推動價值創造，我們很高興第四季度的利潤率進一步擴大，效率提高了營運槓桿。

Our enterprise operations team has delivered yet another quarter of progress in turnaround time, ending the year with 28% improvement over Q4 of 2022. We have now completed the consolidation of three international labs, primarily into our Cambridge, UK location.

我們的企業營運團隊在周轉時間方面又取得了四分之一的進步，到年底比 2022 年第四季提高了 28%。我們現已完成三個國際實驗室的整合，主要是在英國劍橋的實驗室。

Earlier this year, we kicked off our LIM project that will bring all of our prior acquisitions that were utilizing separate LIM systems onto one platform, which will further enable our digital transformation strategy. We have now completed the first phase of user requirements and expect to begin to see the benefits of LIMs in the back half of 2024.

今年早些時候，我們啟動了 LIM 項目，該項目將把我們之前使用單獨的 LIM 系統進行的所有收購整合到一個平台上，這將進一步實現我們的數位轉型策略。我們現已完成第一階段的使用者需求，預計在 2024 年下半年開始看到 LIM 的優勢。

Before I hand it over to Jeff, I do want to address the ongoing litigation regarding RaDar. It's our policy not to comment on ongoing litigation. However, I will say that Neo is committed to serving cancer patients with MRD testing, and we believe that we have several viable pathways to accomplish that.

在我將其交給傑夫之前，我確實想解決正在進行的有關雷達的訴訟。我們的政策是不對正在進行的訴訟發表評論。然而，我想說 Neo 致力於透過 MRD 檢測為癌症患者提供服務，我們相信我們有幾種可行的途徑來實現這一目標。

We've appealed the preliminary injunction to the Federal Circuit and have been granted an expedited hearing, which will occur on March 29. We intend to vigorously pursue the appeal. In addition, we have move for an administrative stay in a state pending appeal from the Federal Circuit Court. That briefing was completed February 20.

我們已就初步禁令向聯邦巡迴法院提起上訴，並已獲準於 3 月 29 日舉行加急聽證會。我們打算積極跟進上訴。此外，我們已採取行動，在某個州進行行政暫緩，等待聯邦巡迴法院的上訴。該簡報於 2 月 20 日完成。

Now let me turn the call over to Jeff to review our Q4 and full-year financials in more detail. Jeff?

現在讓我把電話轉給傑夫，更詳細地回顧我們的第四季和全年財務狀況。傑夫？

Thanks, Chris, and good afternoon, everyone. I'll begin with a little more detail on our operating results for the quarter. As Chris said, we continue the year with revenue experiencing double-digit growth over prior year. Fourth-quarter revenue was $156 million, a 12% increase over the prior year; and a 2.4% increase from Q3 '23.

謝謝克里斯，大家下午好。我將首先詳細介紹本季的營運業績。正如克里斯所說，今年我們的營收比上年繼續實現兩位數成長。第四季營收為1.56億美元，較上年同期成長12%；與 2023 年第三季相比成長 2.4%。

Revenue growth was driven by growth in clinical test volumes, a continuing shift to higher value tests, and improvement in revenue per test, driven by business mix and revenue cycle improvements. Adjusted EBITDA improved 900% from prior year to positive $9 million.

收入成長的推動因素包括臨床測試量的成長、向更高價值測試的持續轉變以及業務組合和收入週期改進推動的每次測試收入的提高。調整後 EBITDA 較上年成長 900%，達到 900 萬美元。

Q4 marks the fifth consecutive quarter that adjusted EBITDA increased from prior year. We generated significant operating leverage as revenue favorability flowed through to the bottom line with over 60% of revenue growth flown to adjusted EBITDA.

第四季這是調整後 EBITDA 連續第五個季度較上年增長。我們產生了顯著的營運槓桿，因為收入有利性流向了利潤，超過 60% 的收入成長流向了調整後的 EBITDA。

Looking at slide 9, clinical services revenue of $130 million with an increase of 20% year over year, driven by a 13% improvement in revenue per test and a 6% increase in volume. The growth in optimization of our sales force, along with the effective execution of the commercial strategy, resulted in higher volume growth.

從投影片 9 來看，臨床服務收入為 1.3 億美元，年增 20%，這主要得益於每次測試收入成長 13% 和數量成長 6%。我們銷售團隊優化的成長，以及商業策略的有效執行，帶來了更高的銷售成長。

Turning to slide 10. Average revenue per clinical test increased by 13% over prior year to $441, representing an improvement for the 11th consecutive quarter versus prior year as we maintain focus on higher value tests and revenue cycle management initiatives.

轉到投影片 10。每次臨床測試的平均收入比去年同期增長 13%，達到 441 美元，連續 11 個季度比去年同期有所改善，因為我們繼續關注更高價值的測試和收入周期管理計劃。

As we shared with you in the past, NGS is a strategic priority and accounts for over 25% of our total clinical revenue for the year. New NGS portfolio additions and the focused effort of our sales team continue to fuel accelerated NGS growth.

正如我們過去與您分享的那樣，NGS 是我們的策略重點，占我們今年臨床總收入的 25% 以上。新的 NGS 產品組合的增加和我們銷售團隊的專注努力繼續推動 NGS 的加速成長。

Turning to slide 11, as we forecasted on prior quarterly calls, advanced diagnostics revenue declined 17% over the prior year in Q4, but was up 5% sequentially to $26 million. ADx revenue did grow each of the first three quarters of 2023 versus 2022.

轉向投影片 11，正如我們在先前的季度電話會議中預測的那樣，第四季度高級診斷收入比上年同期下降 17%，但環比增長 5%，達到 2600 萬美元。與 2022 年相比，ADx 的營收在 2023 年前三個季度確實有所增長。

However, Q4 of 2022 was an unusually strong ADx quarter with revenue growth of over 40% versus prior year. The expected decline in revenue was partially due to macroeconomic conditions in pharma R&D spend, as well as our decision to rationalize our global testing sites and low margin contracts.

然而，2022 年第四季的 ADx 異常強勁，營收比去年同期成長了 40% 以上。預期收入下降的部分原因是製藥研發支出的宏觀經濟狀況，以及我們決定合理化我們的全球測試站點和低利潤合約。

The focus on profitability and margin growth is driving performance in ADx with adjusted gross margins expanding by 368 basis points versus the prior year. Similar to our clinical strategy in 2023, we are expanding our ADx sales organization in 2024 to further accelerate profitable growth and expect to see benefits from this initiative as the year progresses.

對獲利能力和利潤成長的關注正在推動 ADx 的業績，調整後的毛利率比上一年增長了 368 個基點。與我們 2023 年的臨床策略類似，我們將在 2024 年擴大 ADx 銷售組織，以進一步加速獲利成長，並預期隨著時間的推移，我們將看到這項措施帶來的好處。

Looking at the income statement on slide 12, adjusted gross profit increased 17.8% over prior year, and adjusted gross margin was 46.7%, an improvement of 225 basis points over the fourth quarter of last year.

看投影片12的損益表，調整後毛利比去年同期成長17.8%，調整後毛利率為46.7%，較去年第四季提高225個基點。

Adjusted EBITDA was positive $9 million, an $11 million or 900% improvement versus prior year. These significant improvements were driven by both higher gross profit and disciplined cost management, which highlight the operating leverage in the business.

調整後 EBITDA 為正 900 萬美元，比前一年增加 1,100 萬美元，即 900%。這些重大改進是由更高的毛利和嚴格的成本管理所推動的，這凸顯了業務的營運槓桿。

Regarding operational expenses, sales and marketing expense was $18.1 million as we continued to increase our commercial investment. G&A was $59.8 million and R&D expense was $7.1 million.

在營運費用方面，隨著我們繼續增加商業投資，銷售和行銷費用為 1810 萬美元。一般管理費用為 5,980 萬美元，研發費用為 710 萬美元。

Turning to the balance sheet on slide 13, we ended the fourth quarter with cash and marketable securities of $415 million. We continue to make good progress and diligently managing our cash and are focused on accountability and disciplined oversight of operating expenses.

轉向幻燈片 13 上的資產負債表，我們第四季末的現金和有價證券為 4.15 億美元。我們繼續取得良好進展，勤勉地管理我們的現金，並專注於問責制和對營運費用的嚴格監督。

Cash flow from operations was a positive $18 million in the quarter, an improvement of $21.5 million or 583% from Q4 of '22.

該季度營運現金流為正 1,800 萬美元，比 2022 年第四季增加了 2,150 萬美元，即 583%。

Now let's review our full-year 2023 financial results. Starting on slide 15, for the year, we increased revenue by 16% over prior year, driven by increases in test volume, revenue per test, and NGS revenue and clinical services.

現在讓我們回顧一下我們的 2023 年全年財務表現。從幻燈片 15 開始，由於測試量、每次測試的收入以及 NGS 收入和臨床服務的成長，我們今年的收入比去年增長了 16%。

Adjusted gross profit increased by 27.5% to $264 million as a result of higher revenue and effective cost management. Adjusted EBITDA improved $51.5 million versus prior year due to improvements in revenue and gross profit.

由於收入增加和有效的成本管理，調整後毛利成長 27.5%，達到 2.64 億美元。由於收入和毛利的改善，調整後的 EBITDA 比前一年增加了 5,150 萬美元。

Looking at the balance sheet on slide 16, we ended the year with cash and marketable securities of $415 million. Cash flow from operations improved $64 million or 97% from 2022. This strong performance in reducing our cash burn and provides us with multiple avenues to address our upcoming convertible notes due in 2025. We expect to provide more clarity on our near-term maturities on our Q1 2024 financial results call.

查看投影片 16 上的資產負債表，我們年底的現金和有價證券為 4.15 億美元。營運現金流較 2022 年增加 6,400 萬美元，即增加 97%。這種強勁的表現不僅減少了我們的現金消耗，還為我們提供了多種途徑來解決即將於 2025 年到期的可轉換票據的問題。我們希望在 2024 年第一季財務業績電話會議上更清楚地說明我們的近期到期情況。

Now turning to our 2024 outlook. We continue to see strong revenue growth and an increase in NGS product mix and are very encouraged by our new and updated tests, which provide higher operating leverage to the bottom line. We have made the necessary and appropriate investments in our teammates to ensure that we have a world-class group of people who are aligned with our mission of serving patients and saving lives. As we continue to build this business brick-by-brick, I am more confident in our future than ever.

現在轉向我們的 2024 年展望。我們繼續看到強勁的收入成長和 NGS 產品組合的增加，並且對我們新的和更新的測試感到非常鼓舞，這些測試為底線提供了更高的營運槓桿。我們對團隊成員進行了必要且適當的投資，以確保我們擁有一支世界一流的團隊，他們與我們服務患者和拯救生命的使命保持一致。隨著我們繼續一點一滴地建立這項業務，我對我們的未來比以往任何時候都更有信心。

Moving on to slide 18. For the full year 2024, we expect revenues of $650 million to $660 million, representing 10% to 12% growth; and adjusted EBITDA to be in a range of $21 million to $24 million, representing 600% to 700% growth.

繼續看投影片 18。2024 年全年，我們預計營收為 6.5 億至 6.6 億美元，成長 10% 至 12%；調整後的 EBITDA 為 2,100 萬至 2,400 萬美元，成長 600% 至 700%。

In summary, 2023 represented a strong year of execution and financial performance, which positions us well to continue the momentum in 2024. We will continue to invest in growth initiatives, including investments in sales force optimization and expansion in our clinical and ADx businesses; and increasing investments in R&D, product, and business model innovation to further enhance our menu of tests.

總之，2023 年是執行力和財務表現強勁的一年，這使我們能夠在 2024 年繼續保持這一勢頭。我們將繼續投資於成長計劃，包括投資於銷售團隊優化以及臨床和 ADx 業務的擴展；增加對研發、產品和商業模式創新的投資，以進一步增強我們的測試菜單。

In addition, we will be making targeted investments and operating efficiencies, including automation and consolidating in our multiple lens systems into one consolidated platform over the next 24 months. These investments will drive long-term margin growth in the future and are reflected in our annual adjusted EBITDA guidance range.

此外，我們將進行有針對性的投資和提高營運效率，包括在未來 24 個月內實現自動化，並將我們的多個鏡頭系統整合到一個整合平台中。這些投資將推動未來的長期利潤成長，並反映在我們的年度調整後 EBITDA 指導範圍中。

Based on our cost structure, the revenue growth in 2024 will drive operating leverage, and our adjusted EBITDA growth will exceed our revenue growth. And we anticipate the seasonality of our business to be reflected in each quarter of 2024. Therefore, we expect revenue to be down sequentially in Q1 '24 in a range of $148 million to 151 million, representing 8% to 10% growth over prior year and expect our strategic initiatives to drive a higher growth rate as the year progresses.

根據我們的成本結構，2024年的營收成長將推動營運槓桿，調整後的EBITDA成長將超過營收成長。我們預計我們業務的季節性將在 2024 年每季反映出來。因此，我們預計 2024 年第一季的營收將環比下降 1.48 億至 1.51 億美元，較上年增長 8% 至 10%，並預計我們的策略舉措將隨著時間的推移推動更高的成長率。

Based on our strong performance in 2023 and our confidence in our strategic initiatives in 2024 and beyond, we are increasing our long-range revenue growth target in outlying years from 7% to 9% to 10%-plus in our core business, excluding MRD.

基於我們 2023 年的強勁業績以及對 2024 年及以後戰略舉措的信心，我們將核心業務（不包括 MRD）的邊遠年份長期收入增長目標從 7% 提高到 9% 到 10% 以上。

Thanks, Jeff. I'm very proud of our team's Q4 and full-year progress, including strong revenue growth of 16% for 2023 and significant improvement in adjusted EBITDA and cash flow from operations. We saw meaningful progress in the execution on our strategic priorities, and therefore, were able to reach the high end of our raised guidance.

謝謝，傑夫。我對我們團隊第四季度和全年的進展感到非常自豪，包括 2023 年收入強勁增長 16%，以及調整後 EBITDA 和營運現金流的顯著改善。我們在執行策略重點方面取得了有意義的進展，因此能夠達到我們提出的指導的上限。

Our guidance for 2024 and beyond reflects our confidence in our business. We believe we are well on our way to becoming the leading cancer testing information and decision support company. We will continue to build on the foundation we have laid over the past several quarters to deliver long-term sustainable growth. I'm excited for our teammates and our customers, and most of all, for the patients we serve on a daily basis.

我們對 2024 年及以後的指導反映了我們對業務的信心。我們相信，我們正在成為領先的癌症檢測資訊和決策支援公司。我們將繼續在過去幾季奠定的基礎上再接再厲，以實現長期可持續成長。我為我們的隊友和客戶感到興奮，最重要的是，為我們每天服務的患者感到興奮。

Thanks for taking time to connect with us today, and I'll throw it back to the operator.

感謝您今天抽出時間與我們聯繫，我會將其交還給接線員。

Thank you. And at this point, we will open the line for questions. The company asks that each person limit their questions to one so that we may hear from everyone within the hour allotted for this call. (Operator Instructions)

謝謝。此時，我們將開通提問專線。該公司要求每個人將問題限制在一個以內，以便我們可以在本次電話會議規定的時間內聽取每個人的意見。（操作員說明）

Alex Nowak, Craig-Hallum.

亞歷克斯·諾瓦克，克雷格·哈勒姆。

Hi, Alex.

嗨，亞歷克斯。

Okay. Good afternoon, everyone. Hey, congrats on the results. I'm sure that you've had a lot of questions on the call around the guidance and digging into it. But I guess I wanted to ask one around the FDA and the LDT. The potential of FDA coming on issuing final rules. Depending on the definition of an LDT, Neo could have a wide variety in its portfolio.

好的。大家下午好。嘿，恭喜結果。我確信您在電話會議上對指南和深入研究有很多疑問。但我想我想問 FDA 和 LDT 的人。FDA 可能會發布最終規則。根據 LDT 的定義，Neo 的產品組合可能多種多樣。

So I'm just curious what -- you've talked a little bit in the past, but what does the team internally doing now, just in case the FDA does decide, hey, we're going to move forward and issue a final rule?

所以我只是好奇 - 你過去已經談過一些，但是團隊現在內部在做什麼，以防 FDA 做出決定，嘿，我們將繼續前進並發布最終結果規則？

Yes, thanks for that. Look, I mean, obviously, we, like other companies in our sector, are watching that closely. We're on the ACLA Board. And so I think we've seen it coming.

是的，謝謝。聽著，我的意思是，顯然，我們和我們行業的其他公司一樣，正在密切關注這一點。我們是 ACLA 董事會成員。所以我認為我們已經看到了它的到來。

Look, I would say a couple of things. I would say our progress or our focus on this started probably 18 months ago when we came together as a management team. We started bringing in people who come from regulated background.

聽著，我想說幾件事。我想說，我們的進展或我們對此的關注可能始於 18 個月前，當時我們作為一個管理團隊聚集在一起。我們開始引進受監管背景的人。

So if you think about like the folks on this call, the three division presidents myself, Jeff, all of those come from FDA regulated backgrounds. I think we started to build a quality system that way. And we moved to one quality system. We took all the acquisitions and move them to one.

因此，如果你像參加這次電話會議的人一樣思考，三位部門總裁本人、傑夫，所有這些人都來自 FDA 監管的背景。我認為我們開始以這種方式建立品質系統。我們轉向了一個品質系統。我們把所有的收購都整合在一起。

All of our R&D projects are now under design control. So we've kind of been starting to operate, believing this is coming. That being said, there's still a lot to unfold.

我們所有的研發項目現在都處於設計控制之下。所以我們已經開始行動，相信這即將到來。話雖這麼說，仍有許多事情有待展開。

Once the ruling comes out, I think there's a lot of people in the industry who wonders if it's constitutional. But from our perspective, we think it's probably not -- if it's probably when. And it looks like even if all these things occur, companies are going to have 3 to 3.5 years to get prepared.

一旦裁決結果出來，我想業內很多人都會懷疑這是否符合憲法。但從我們的角度來看，我們認為可能不會——如果可能的話。看起來即使所有這些事情發生，公司也將有 3 到 3.5 年的時間做好準備。

So we feel very confident in our ability to manage that as it comes on. Look, a lot will depend on what his grandfather and what is not. But I think we feel really good about our position in the marketplace. And we think for companies like us, it could be end up becoming a competitive advantage.

因此，我們對自己處理這種情況的能力非常有信心。看，很大程度上取決於他的祖父什麼和不是什麼。但我認為我們對自己在市場中的地位感到非常滿意。我們認為，對於像我們這樣的公司來說，它最終可能會成為一種競爭優勢。

All right. Thank you so much.

好的。太感謝了。

David Westenberg, Piper Sandler.

大衛‧韋斯特伯格，派珀‧桑德勒。

Hey. Good job, guys. So I really like the update on the -- if I heard it right, you updated the long-term plan to 10% growth. Can you talk about specifically -- because that's a big 150 basis point at least swing there. So what specifically is happening versus that long-term growth? And do you feel confident that this is not just trend, this is multi-year and long term? And that's assuming I heard that correctly.

嘿。幹得好，夥計們。所以我真的很喜歡更新——如果我沒聽錯的話，你將長期計劃更新為 10% 的增長。你能具體談談嗎——因為至少有 150 個基點的波動。那麼，與長期成長相比，具體發生了什麼？您是否有信心這不僅僅是趨勢，而且是多年且長期的？假設我沒聽錯的話。

Yes, you did. I mean, Jeff put it in there at the end. It is kind of like some of the best news. I'll say something. And then maybe I'll have Jeff comment more. But look, I think when we gave long-term guidance in April of last year. We were pretty new management team. And I think as we've come together and now have well over a year under our belts, we understand the levers to pull in the business much better.

是的，你做到了。我的意思是，傑夫最後把它放在那裡。這有點像一些最好的消息。我會說點什麼。然後也許我會讓傑夫發表更多評論。但是你看，我想當我們在去年四月給出長期指導時。我們是相當新的管理團隊。我認為，隨著我們走到一起，現在已經有一年多的時間了，我們了解更好地拉動業務的槓桿。

We understand the market significantly better. We understand things around revenue cycle management and accelerated growth and where the gaps are in the products. And so we guided this year for '24, 10% to 12%. But what we're seeing in that core business, just because of the market dynamics and market growth, our leadership position, the things that we can do, we feel very confident in that 10%-plus number. But do you want to --?

我們對市場的了解明顯更好。我們了解收入週期管理和加速成長以及產品中的差距。因此，我們今年的 24 年預測為 10% 至 12%。但我們在核心業務中看到的情況，僅僅因為市場動態和市場成長、我們的領導地位、我們能做的事情，我們對這個 10% 以上的數字非常有信心。但你想嗎——？

So I would add to that, we made multiple comments about adding sales force people to our team and then sales force optimization and really focused on how do we help them be more efficient. And so we actually think we can get a lot of operating leverage, just new technology and back-office support for our sales people, both in our clinical team and in our ADx team.

因此，我想補充一點，我們就向我們的團隊添加銷售人員、然後優化銷售人員等問題發表了多次評論，並真正關注我們如何幫助他們提高效率。因此，我們實際上認為我們可以在我們的臨床團隊和 ADx 團隊中獲得大量的營運槓桿，為我們的銷售人員提供新技術和後台支援。

And so I think that's another big component. We've been growing faster than the market across all modalities. We have a strong focus on NGS and are clearly seeing positive results there. So I think our view is -- our confidence level has increased based upon our performance in 2023 as well as Chris said, the team overall, just getting more comfortable with our teams, with our position in the market, and where we're investing dollars to raise our long-term growth target to that 10%-plus.

所以我認為這是另一個重要組成部分。我們在所有模式上的成長速度都快於市場。我們非常關注 NGS，並且明顯看到了積極的成果。因此，我認為我們的觀點是——根據我們2023 年的表現以及克里斯所說的團隊整體情況，我們的信心水平有所提高，只是對我們的團隊、我們在市場中的地位以及我們的投資領域感到更滿意美元，將我們的長期成長目標提高到 10% 以上。

Yeah, David, I'd say the other one, I mean, if you look at NGS, especially solid tumor, we're incredibly under-indexed. And you could see that business is growing rapidly and that market is still relatively penetrated but growing double digits. So I think there are a lot of factors that we feel really good about where we are from a physician perspective.

是的，大衛，我想說的是另一個，我的意思是，如果你看看 NGS，尤其是實體瘤，我們的指標嚴重不足。你可以看到業務正在快速成長，市場仍然相對滲透，但以兩位數的速度成長。所以我認為，從醫生的角度來看，有許多因素讓我們對自己的現況感到非常滿意。

Great. That's a great segue into my second one. Because I think you're launching into liquid. So could we expect an accelerated timeline in the liquid or like a market traction, just given what you're doing right now in hematological malignancies? And then you transfer that into solid tumor, which has been going really fast.

偉大的。這是我第二篇文章的一個很好的延續。因為我認為你正在進入液體狀態。那麼，考慮到您現在在血液惡性腫瘤方面所做的工作，我們是否可以預期液體的加速時間表或市場牽引力？然後將其轉移到實體瘤中，進展速度非常快。

Let me -- look, obviously, lots of going on but that fits in kind of the R&D group with Vishal and under development. Vishal, do you have anything you want to share, just kind of what we're doing with liquids and some of the products that we've disclosed?

讓我看看，顯然，有很多事情正在進行，但這符合 Vishal 和正在開發的研發團隊的情況。Vishal，您有什麼想分享的嗎？例如我們對液體和我們已經揭露的一些產品所做的事情？

Yeah, David. Thanks for your question. So on the liquid side, we will plan to launch a CGP assay for liquid biopsy, going into 2024, probably towards the second half of 2024, but will accelerate on the clinical side also that we're looking into.

是的，大衛。謝謝你的提問。因此，在液體方面，我們將計劃在 2024 年啟動用於液體活檢的 CGP 檢測，可能是在 2024 年下半年，但我們正在研究的臨床方面也會加速。

But I do think there is a place for liquid on both the pharma and the clinical side which we'll see an acceleration in terms of penetration into that market, especially on the pharma side, in particular. Because we're hearing a lot from pharma companies that they just don't have enough tissue to spend it along with all the testing they want to do. So this really gives them the opportunity to choose both liquid or solid from that perspective.

但我確實認為液體在製藥和臨床方面都有一席之地，我們將看到該市場的滲透速度加快，特別是在製藥方面。因為我們從製藥公司聽到很多消息，他們只是沒有足夠的組織來進行他們想做的所有測試。因此，這確實讓他們有機會從這個角度選擇液體或固體。

Yeah. You'll probably see that in pharma in late half of the year and then moving into clinical in 2025.

是的。您可能會在今年下半年在製藥領域看到這一點，然後在 2025 年進入臨床。

Awesome. Great job on the quarter.

驚人的。本季的工作非常出色。

Thank you, David.

謝謝你，大衛。

Puneet Souda, Leerink Partners.

Puneet Souda，Leerink 合夥人。

Hey, guys. Chris, Jeff, thanks for taking the questions.

大家好。克里斯、傑夫，感謝您提問。

How are you doing?

你好嗎？

I'm good. Thanks, Chris. I'll wrap my question into two questions served into one. Obviously, again, congrats on the LRP increase here. Maybe can you elaborate what is the clinical volume growth that we ought to think about in that sort of long-term guide?

我很好。謝謝，克里斯。我將把我的問題分成兩個問題合而為一。顯然，再次祝賀 LRP 增加。也許您能詳細說明一下我們在這種長期指南中應該考慮的臨床數量增長是多少嗎？

I mean, at one point, NeoGenomics used to grow that number at 15% growth. But I know the mix has changed today. There's more NGS in here. So maybe could you elaborate on that?

我的意思是，NeoGenomics 曾經一度以 15% 的速度成長這一數字。但我知道今天的組合已經改變了。這裡還有更多 NGS。那麼也許您可以詳細說明一下嗎？

And then how should we think about the AUP and the clinical volume growth this year in 2024? The AUP has continued to ramp throughout the year for clinical and '23. So just wondering sort of how should we think about that for '24? Thank you.

那我們該如何看待2024年的AUP和今年的臨床量成長呢？臨床和 '23 的 AUP 全年持續成長。所以只是想知道我們應該如何考慮 24 世紀的這個問題？謝謝。

Yes. Maybe I'll take a little bit and then throw it to Jeff. But, look, the way we think about our business is really a portfolio effect. And so if you think about it, we really -- we have informatics, we have pharma, we have clinical.

是的。也許我會拿一點然後扔給傑夫。但是，你看，我們思考業務的方式實際上是投資組合效應。所以如果你想一想，我們真的——我們有資訊學，我們有製藥，我們有臨床。

And obviously, when we look at building out both this year's guidance and next -- outline year's guidance, we have taken into account all of those factors. We have not broken down specifically units or the AUP.

顯然，當我們考慮制定今年的指導意見和明年的指導綱要時，我們已經考慮了所有這些因素。我們沒有具體細分單位或 AUP。

I will say though, on the AUP, two things are significantly driving and Jeff will give you more, but one is our mix, right? We're selling a lot more NGS. But the other thing is we think we have a lot of runway on revenue cycle.

不過我要說的是，在 AUP 上，有兩件事正在顯著推動，傑夫會給你更多，但其中之一是我們的組合，對嗎？我們正在銷售更多的 NGS。但另一件事是我們認為我們在收入周期上有很多跑道。

And just the amount of -- when you look at this industry as a whole, I think it's willful and its ability to get paid for the work that it's doing. And I think we're our team is really becoming masterful is identifying those levers, which is probably 15 different levers within that group.

當你把這個行業作為一個整體來看時，我認為它是任性的，並且有能力為其所做的工作獲得報酬。我認為我們的團隊真正變得精通的是識別這些槓桿，這可能是該組中的 15 個不同的槓桿。

But, Jeff, do you have anything else more on --?

但是，傑夫，你還有其他的事情嗎？——？

Yes. I mean, we haven't disclosed specific and we didn't we gave original guidance, didn't disclose volume or AUP. But I think as Chris said, given our positioning on both our clinical sales force and execution as well as our anticipated additions on the ADx side, we certainly feel good that we're going to achieve that revenue growth.

是的。我的意思是，我們沒有披露具體信息，也沒有給出原始指導，沒有披露數量或 AUP。但我認為，正如克里斯所說，考慮到我們在臨床銷售隊伍和執行方面的定位，以及我們在 ADx 方面的預期增加，我們當然對實現收入成長感到滿意。

I think on the revenue per test or AUP, as Chris said, there's a few things driving that. In the quarter, that NGS mix -- I said this last quarter -- is driving over 60% of the increase in AUP. So just the NGS volume continue to accelerate is driving meaningful upside on revenue per test. And you can see that stepping up throughout the year in 2023.

我認為，正如 Chris 所說，就每次測試的收入或 AUP 而言，有一些因素在推動這一趨勢。在本季度，NGS 組合（我在上個季度說過）推動了 AUP 成長的 60% 以上。因此，只要 NGS 數量繼續加速，就能推動每次測試的收入大幅成長。您可以看到 2023 年這一數字將持續上升。

And then the other factor, as Chris also said, were revenue cycle specific initiatives. The first is on just getting paid for the work we're doing. A lot of specific initiatives to drive that. We saw good improvement in that in 2023. And then there's also the pricing side where we're having some success in getting price increases as well, where that hasn't historically been a strength of ours.

正如克里斯也所說，另一個因素是收入週期的具體舉措。第一個是我們正在做的工作獲得報酬。許多具體舉措來推動這一目標。2023 年我們看到了這方面的良好改善。然後還有定價方面，我們在提價方面也取得了一些成功，而這在歷史上並不是我們的強項。

So again, I think the way I think about the revenue side is we have volume drivers. We have mix drivers. We have pricing drivers and we have RCM drivers. And they're going to hit at different intervals and different paces throughout the year. But the overall combination of those is going to get us for our revenue growth over time.

再說一遍，我認為我對收入方面的看法是我們有銷售驅動因素。我們有混合驅動程式。我們有定價驅動因素，也有 RCM 驅動因素。他們全年都會以不同的時間間隔和不同的節奏進行比賽。但這些因素的整體結合將使我們的收入隨著時間的推移而成長。

Got it. Helpful, guys. Thank you.

知道了。有幫助，夥計們。謝謝。

Thank you.

謝謝。

Matt Sykes, Goldman Sachs.

馬特·賽克斯，高盛。

Hey, good afternoon. Hey, guys. How are you doing? Congrats on the quarter. Maybe just following up on Puneet's question, but focusing on the mix side of it. Obviously, the NGS mix you guys have talked about and that's driving a lot of that.

嘿，下午好。大家好。你好嗎？恭喜本季。也許只是跟進普尼特的問題，但重點關注它的混合方面。顯然，你們談到的 NGS 組合在很大程度上推動了這一趨勢。

But I'm just wondering in terms of like -- as you think about the runway for mix shift, there's clearly probably customer groups where it was easier to kind of switch them into NGS or market the NGS to them. Does mix shift get harder you think over the course of this year and into '25? Or do you just see a lot of runway and lack of awareness where you're able to continue to drive that mix shift over time?

但我只是想知道，當你考慮到混合轉變的跑道時，顯然可能有一些客戶群更容易將他們切換到 NGS 或向他們推銷 NGS。您認為從今年到 25 年，混合轉變是否會變得更加困難？或者，您是否只是看到了很多跑道，但缺乏意識，無法隨著時間的推移繼續推動混合轉變？

And then just my second part, just quick one for Jeff. Just any views on the gross margin outlook for '24 within that guide?

接下來是我的第二部分，對傑夫來說是一個快速的部分。您對該指南中 24 年的毛利率前景有什麼看法嗎？

Yes. Thanks, Matt. Look, I think when you look at this business, one of the things that we really like as we've gotten to know the business well is that we're very under-indexed both on NGS as a total percentage of revenue for the company as well as in solid tumor.

是的。謝謝，馬特。聽著，我認為當你審視這項業務時，我們真正喜歡的一件事是，我們非常了解這項業務，因為我們對 NGS 占公司總收入的百分比的索引非常低以及實體瘤。

There's going to be some earning calls that come up in 90% of the revenue is NGS. And so I think we believe very strongly in that ability on that mix shift.

將會有一些盈利電話會議，其中 90% 的收入來自 NGS。所以我認為我們非常相信這種混合轉變的能力。

I'd say the second big one is I think you could argue this year should be better because of our increased focus going to oncology, you know, like community oncologists versus just the hospitals and the pathologist and expanding that sales force there and to be able to go out and spend time. And one of our lever points is that we're the market leader in heme and really using that to be a door-opener for us for solid.

我想說的第二個大問題是，我認為你可能會說今年應該會更好，因為我們更加關注腫瘤學，你知道，就像社區腫瘤學家與醫院和病理學家相比，並擴大了那裡的銷售團隊能夠出去消磨時間。我們的槓桿點之一是，我們是血紅素的市場領導者，並真正利用它為我們打開了大門。

But maybe -- and probably shouldn't even say much here. I think Warren's here. But maybe, Warren, you have more -- maybe more --?

但也許——也許甚至不應該在這裡說太多。我想沃倫在這裡。但也許，華倫，你還有更多——也許更多——？

Yeah. Chris, I think everything you just said, I agree 100%. I mean, we've communicated it right now the ratio is roughly 25% of the business. I think as that ratio increases, certainly, it gets marginally harder.

是的。克里斯，我認為你剛才所說的一切，我百分之百同意。我的意思是，我們現在已經傳達了這個比例大約佔業務的 25%。我認為隨著這個比例的增加，當然會變得更加困難。

But I wouldn't discount the fact that we are launching new products last year. It was probably midyear by the time we're starting to see some traction take place. So looking to benefit from the annualization of those new products that were launched in last year, particularly those that are NGS related. That's one that certainly will provide opportunity for us.

但我不會低估我們去年推出新產品的事實。當我們開始看到一些牽引力發生時，可能已經是年中了。因此，希望從去年推出的新產品的年化中受益，特別是那些與 NGS 相關的產品。這肯定會為我們提供機會。

And then as Chris said, the continued penetration in the community oncology segment, which is where we've invested a lot of incremental sales resources into is another reason why we believe we can drive growth in NGS, which will support that mix shift.

然後，正如 Chris 所說，社區腫瘤學領域的持續滲透（我們在該領域投入了大量增量銷售資源）是我們相信我們能夠推動 NGS 成長的另一個原因，這將支持這種組合轉變。

Jeff, do you want to take --?

傑夫，你想帶嗎？——？

Yes. Then on the margin side, you know, Matt, I would look at adjusted gross margins increasing in a range of 150 to 175 basis points over the next year over 2024.

是的。然後在利潤率方面，馬特，我認為調整後的毛利率在 2024 年的明年將增加 150 至 175 個基點。

Thanks.

謝謝。

Andrew Brackmann, William Blair.

安德魯·布拉克曼，威廉·布萊爾。

Hey, Andrew.

嘿，安德魯。

Hey, guys. Good afternoon. Hey, Chris. Thanks for taking the questions. Maybe on the inorganic front. I guess as you guys are making progress here on increasing profitability, can you just sort of talk about balancing that dynamic with your sort of appetite for adding to the bag here over time? Any considerations that we should sort of be thinking about? Thanks.

大家好。午安.嘿，克里斯。感謝您提出問題。也許在無機方面。我想，當你們在提高盈利能力方面取得進展時，你們能談談平衡這種動態與你們隨著時間的推移在這裡增加東西的胃口嗎？我們應該考慮哪些因素？謝謝。

Yeah. Andrew, I got to tell you I missed the very first thing you said. Oh, inorganic growth. Okay. Sorry, I missed that.

是的。安德魯，我必須告訴你我錯過了你說的第一句話。哦，無機增長。好的。抱歉，我錯過了。

Yeah. Look, I think it's a unique scenario when a company looks at accelerating growth and how much do you put on the bottom line versus how much you invest with. We believe that this business has a very unique opportunity to grow low double digits on revenue and mid-teens plus on profitability.

是的。聽著，我認為當一家公司考慮加速成長以及你在盈利上投入多少與你投資多少時，這是一個獨特的場景。我們相信，這項業務有一個非常獨特的機會，可以實現低兩位數的收入成長和十幾歲以上的獲利能力。

I think for us, we look at where we can invest the dollars that we think are going to give a long-term ROI. So we spend a lot of time as a leadership team talking about what these initiatives are and when are we going to strategically invest in them.

我認為對我們來說，我們會考慮將我們認為能夠帶來長期投資回報的資金投資到哪裡。因此，作為領導團隊，我們花了很多時間討論這些舉措是什麼以及我們何時對它們進行策略性投資。

So for example, this year, one of the big ones is LIM. Last year, a big one was expanding the clinical sales force. So we believe that you can have that balance.

例如，今年，LIM 就是其中之一。去年，一項重大舉措是擴大臨床銷售團隊。所以我們相信您可以取得這種平衡。

Like Jeff always says, it's not either/or; it's and. And I think our view is that we want to grow revenue fast, gross margins faster and operating profit faster. And I think we run our business to do that. So I think we feel really good about that balance.

就像傑夫總是說的那樣，這不是非此即彼的問題；而是。是和。我認為我們的觀點是我們希望收入快速成長，毛利率更快，營業利潤更快。我認為我們經營我們的業務就是為了做到這一點。所以我認為我們對這種平衡感覺非常好。

But Jeff, do you want to give from a financial perspective?

但是傑夫，你想從財務角度給予捐款嗎？

Yeah. I think the other thing that gives us confidence is just our capital structure as well and our ability to really significantly change our cash burn and actually position ourselves for actually starting to produce cash in 2025. So I think having the clear path to being adjusted EBITDA positive for all of '23, and certainly, we expect that effort for '24.

是的。我認為給我們信心的另一件事是我們的資本結構，以及我們真正顯著改變現金消耗並為 2025 年真正開始產生現金做好準備的能力。因此，我認為在 23 年全年調整後的 EBITDA 為正值的明確途徑，當然，我們預計在 24 年也會做出這樣的努力。

And then really it's an investment; I think rigor and discipline that we have used over the last 12 months on where we're going to be investing dollars and how are we doing that in a strategic fashion over time to drive the business.

這確實是一項投資；我認為我們在過去 12 個月裡對資金的投資方向以及我們如何以戰略方式進行投資以推動業務發展採取了嚴格和紀律。

And I think, as Chris said, clearly with having ROI projects that are going to pay for themselves over time. And I just think we've had a lot more rigor and discipline in the process, which gives us confidence in the investments we've made.

我認為，正如克里斯所說，顯然擁有投資回報率項目將隨著時間的推移而收回成本。我只是認為我們在這個過程中更加嚴格和自律，這讓我們對我們所做的投資充滿信心。

Okay. Thanks, guys.

好的。多謝你們。

Mark Massaro, BTIG.

馬克·馬薩羅，BTIG。

Hey, Mark.

嘿，馬克。

Hey, Chris. How is it going?

嘿，克里斯。最近好嗎？

Good.

好的。

Congrats on the quarter. Lots of great progress on the clinical side. I guess my question is more on pharma services. I know your predecessors talked a lot about pharma services and informatics. And there is a large precision oncology company out there that's monetizing big data with some pretty sizable revenue.

恭喜本季。臨床方面取得了許多重大進展。我想我的問題比較是關於製藥服務。我知道您的前任談論了很多有關製藥服務和資訊學的內容。有一家大型精準腫瘤學公司正在透過大數據貨幣化，並獲得相當可觀的收入。

So I'm just curious, like you guys are doing a great job, just growing revenue and profitability. Maybe just give us an update on how you see the pharma services business shaping out how you can monetize some of the big data and maybe just give us a sense for how you're thinking about the growth of that business going forward.

所以我只是很好奇，你們做得很好，只是增加了收入和獲利能力。也許只是向我們提供有關您如何看待製藥服務業務的最新信息，以及如何通過一些大數據獲利，也許只是讓我們了解您如何考慮該業務的未來增長。

Yeah, thanks. Look, I think when we came in, I mean, I think the first thing is we made a very conscious decision that that business had a lot of pieces to it that were not profitable. And so our focus was -- and we've talked about this as a whole company, but especially in pharma, let's get the house in order and let's get this gross margin moving. And you could see that we've made great progress in there.

是的，謝謝。聽著，我認為當我們進來時，我的意思是，我認為第一件事是我們做出了一個非常有意識的決定，該業務有很多部分無法盈利。所以我們的重點是——我們已經作為整個公司討論過這個問題，但特別是在製藥行業，讓我們把房子整理好，讓我們提高毛利率。你可以看到我們在這方面取得了很大的進步。

I think when we think about the pharma business, so we do believe it's kind of the tip of the spear from a technology perspective because the pharma companies go well in front of clinical on new innovations and new technology. We saw that, for example, in MRD.

我認為，當我們考慮製藥業務時，我們確實相信從技術角度來看，這是一種尖端，因為製藥公司在新創新和新技術方面走在臨床前面。例如，我們在 MRD 中看到了這一點。

So we believe it's a place to be. But before we can start accelerating growth, we had to get the baseline right. And that's what '23 was all about.

所以我們相信這是一個值得去的地方。但在我們開始加速成長之前，我們必須確定正確的基準。這就是 '23 的意義所在。

And now you heard with Jeff, one of our -- last year, we spent a lot of money and time expanding the clinical sales force. We're expanding now the pharma and the informatics sales force because we feel like there's great growth opportunities there, but we felt like we had to kind of ride the ship first.

現在你聽到傑夫了，我們的一員——去年，我們花了很多錢和時間來擴大臨床銷售團隊。我們現在正在擴大製藥和資訊學銷售隊伍，因為我們覺得那裡有巨大的成長機會，但我們覺得我們必須先搭船。

On informatics, we have significant points of data because of the patients that we test. And I think as Vishal -- and I will let Vishal step in and maybe talk more about the informatics -- but I think as Vishal and Neil come together and kind of look at those things that we can do, there is runway. But there's a lot of work to do.

在資訊學方面，由於我們測試的患者，我們擁有重要的數據點。我認為，作為維沙爾，我會讓維沙爾介入，也許更多地談論資訊學，但我認為，當維沙爾和尼爾走到一起，看看我們可以做的事情時，就有了跑道。但還有很多工作要做。

And I think that the company you're probably referring to, it was not our top priority, but it's becoming more of a priority. But I think for us, again, it's about the portfolio. We got to be able to perform in clinical and all of the activity.

我認為你可能提到的公司，這不是我們的首要任務，但它正變得越來越重要。但我認為對我們來說，這又與投資組合有關。我們必須能夠進行臨床和所有活動。

Do you want to talk more about especially informatics and the data?

您想多談談資訊學和數據嗎？

Yes. As we look at the data that we have within the company, one of the nice things of our Neo has is data across all of our modalities, whereas others maybe we'll have it primarily in NGS. But as we grow our NGS product portfolio, our data will also grow at the same time.

是的。當我們查看公司內部擁有的數據時，我們 Neo 擁有的好處之一是我們所有模式的數據，而其他模式可能主要透過 NGS 來獲取。但隨著我們不斷擴大 NGS 產品組合，我們的數據也會同時成長。

So what we can get to in a couple of years is going to be much different than where we are today in terms of our data offerings as a whole. And on top of that, the LIMS investment that we're doing, which will allow us to structure the data in the right way, will also make us successful for the informatics side.

因此，就我們的整體數據產品而言，幾年後我們所能達到的目標將與今天有很大不同。最重要的是，我們正在進行的 LIMS 投資將使我們能夠以正確的方式建立數據，也將使我們在資訊學方面取得成功。

So altogether, the next couple of years, we still have a long way to go there. I mean, I think we have to build into the right steps. But how we're building it is more important right now for the next year and getting it two years out as to what we can do with that data from where we are today.

所以總的來說，未來幾年，我們還有很長的路要走。我的意思是，我認為我們必須採取正確的步驟。但我們現在如何建構它對於明年和兩年後我們可以利用目前的數據做什麼更為重要。

Sounds good. Congrats on the progress.

聽起來不錯。祝賀取得的進展。

Thanks, Mark.

謝謝，馬克。

Mike Matson, Needham & Company.

麥克馬森，李約瑟公司。

Hey, Mike.

嘿，麥克。

Hey, guys. Just wanted to ask one on the LIM projects. So you mentioned you could start to see some of the benefits of that in the second half. So just curious what those benefits could be to the margins, per turnaround times, market share, all the above?

大家好。只是想詢問有關 LIM 專案的問題。所以你提到你可以在下半年開始看到其中的一些好處。那麼只是好奇這些好處對利潤、每週轉時間、市佔率等等有何好處？

Yes. Look, I think there's a lot. It's probably all of the above. And Melody is on the call as well. Melody, do you want to take that initially? And then, Jeff, maybe you could talk about financial stuff. But Melody?

是的。看看吧，我覺得有很多。大概就是以上這些了。梅洛迪也在通話中。Melody，你想先接受嗎？然後，傑夫，也許你可以談談財務方面的事情。但是梅洛迪？

So I think first and foremost, Mike, it's really around operational efficiency and productivity in the lab. I think we're going to -- we're expecting to see a lot of pickup with regard to leverage there because we currently are on multiple different systems. And obviously, that causes a lot of cutting and pasting and things like that that we're hoping to eliminate.

因此，麥克，我認為首先也是最重要的是，這實際上是圍繞實驗室的運作效率和生產力。我認為我們預計會看到槓桿率大幅上升，因為我們目前處於多個不同的系統上。顯然，這會導致大量的剪切和粘貼以及我們希望消除的類似情況。

But as far as then, Vishal mentioned the ability to use our data better. It's really an overall enterprise digital architecture that we're working and LIMS is the start of that. But we're also leveraging various platforms for better connectivity to our patients, better connectivity to EMR, better connectivity into our billing systems, and our backend ERP. And then LIM system is really the big driver for all of that for us. Jeff, comments on the cost structure?

但到目前為止，維沙爾提到了更好地利用我們的數據的能力。我們正在研究的其實是一個整體的企業數位架構，而 LIMS 就是這個架構的開端。但我們也利用各種平台來更好地連接到我們的患者、更好地連接到 EMR、更好地連接到我們的計費系統和後端 ERP。LIM 系統確實是我們所有這一切的重要驅動力。傑夫，對成本結構有何評論？

Yeah. And I would add one other thing as well. It will give us just better visibility from a client service perspective on where our tests are in the process and allow for really self-service on where tests are in the process. So I think it helps our client communication and giving them up-to-date on where we are with the testing process.

是的。我還要補充另一件事。它將使我們從客戶服務的角度更好地了解測試在流程中的位置，並允許真正自助服務測試在流程中的位置。所以我認為這有助於我們的客戶溝通，讓他們了解我們測試過程的最新進展。

And then we are making a capital investment that will have some operating expenses with that over the next two years. So we have factored in those operating expenses into our guidance. And again, I think this is one of those investments that is going to pay long-term dividends. We'll start seeing it on the gross margin side, as Melody noted, from an efficiency standpoint. And I think over time, it could have cost side benefits as well as we improve our client service.

然後我們正在進行一項資本投資，這將在未來兩年內產生一些營運費用。因此，我們已將這些營運費用納入我們的指導中。再說一次，我認為這是將帶來長期股息的投資之一。正如梅洛迪指出的那樣，從效率的角度來看，我們將開始在毛利率方面看到這一點。我認為隨著時間的推移，它可能會帶來成本方面的好處，同時我們也會改善我們的客戶服務。

Yeah. Maybe, Warren, you can talk to this. But, look, we're spending probably as much on the customer experience component as we are on the LIMS as far as digitization. And it's interesting I think in this business for us to ultimately get to where we want to go, we got to win on customer experience and we got to win on the ability to serve the patient.

是的。沃倫，也許你可以談談這個。但是，就數位化而言，我們在客戶體驗組件上的支出可能與在 LIMS 上的支出一樣多。有趣的是，我認為在這個行業中，我們要最終達到我們想要的目標，我們必須贏得客戶體驗，我們必須贏得為患者服務的能力。

And I think you want to just give what we're doing on the digitization and the platform that's going to tie to LIMS?

我想您只想介紹一下我們在數位化和與 LIMS 相關的平台方面所做的工作？

Building on what Melody said in terms of LIMS being this sort of foundational element for us to start a digital transformation, it's providing the building blocks for us. And additionally, we're investing in what we're calling a digital front to attract customers, which will be the platform for self-service.

Melody 表示，LIMS 是我們開始數位轉型的基礎元素，它為我們提供了建構模組。此外，我們正在投資所謂的數位前端來吸引客戶，這將成為自助服務平台。

It will be the platform to allow customers to track the status of testing in real time, something that is missing today and ultimately allows increased stickiness to those customers, which is an important element from our protect, expand, and acquire commercial strategy. So it's something else that we look to expect to see value in the latter part of 2024.

它將成為一個允許客戶即時追蹤測試狀態的平台，這是目前所缺少的，並最終增加對這些客戶的黏性，這是我們保護、擴展和獲取商業策略的重要因素。因此，我們希望在 2024 年下半年看到價值。

Great. Thanks.

偉大的。謝謝。

Mason Carrico, Stephens Inc.

梅森·卡里科，史蒂芬斯公司

Hey, Mason.

嘿，梅森。

Hey, guys, thanks for the question here. So for the ADx business, you had called out -- you've framed it up in previous quarters. The headwinds that you'd be facing rationalizing some testing sites, low-margin business, as well as you're facing some macro conditions.

嘿，夥計們，謝謝你在這裡提問。因此，對於 ADx 業務，您已經呼籲 - 您在前幾個季度已經陷害了它。您將面臨一些測試站點合理化、低利潤業務以及一些宏觀條件的阻力。

So I guess the question is, could you kind of break out, I guess, how much of an impact each of those two buckets have? And as we look ahead into this year, when do you think we start to lap kind of rationalizing that low margin business going forward? And really how are you thinking about accelerating growth in this business this year?

所以我想問題是，我想你能不能談談這兩個桶子分別有多大的影響？當我們展望今年時，您認為我們什麼時候開始對未來的低利潤業務進行合理化？您真的如何考慮今年加速該業務的成長？

Yes. Why don't I take it upfront and then Vishal, you can pick it up. I mean, we made that decision, but those contracts took some time. So I think you'll start to see that piece start to kick in probably in the second half of the year.

是的。為什麼我不先拿走，然後維沙爾，你可以拿走。我的意思是，我們做出了這個決定，但這些合約花了一些時間。因此，我認為您可能會在今年下半年開始看到作品開始發揮作用。

We haven't broken out where the impact is. But I think even more importantly, Vishal, maybe talk about strategically all the things that your team is doing in other modalities just NGS and why that's still relatively new and why -- give confidence in the acceleration of the growth.

我們還沒有透露影響在哪裡。但我認為更重要的是，Vishal，也許可以策略性地談論您的團隊在其他模式（僅 NGS）中所做的所有事情，以及為什麼它仍然相對較新以及為什麼——給加速成長的信心。

Yeah. If you look at wet pharma is coming up to us for, we are still investing heavily in modalities. What I call our traditional modalities, like IAC, that's not going anywhere from an oncology pharma perspective. That's our bread and butter.

是的。如果你看看我們即將迎來的濕製藥，我們仍在對模式進行大量投資。我所說的傳統模式，如 IAC，從腫瘤製藥的角度來看不會有任何進展。這就是我們的麵包和黃油。

But as we launch new products in the NGS side in particular, and we're seeing that trend, and as Chris mentioned, usually what we see in pharma is a movement and movement towards technologies. Three to five years ahead of clinical, we're already seeing that trend moving from FISH as an example to NGS.

但當我們特別是在 NGS 方面推出新產品時，我們看到了這種趨勢，正如 Chris 所提到的，通常我們在製藥業看到的是一種向技術發展的運動。比臨床提前三到五年，我們已經看到這種趨勢從 FISH 轉向 NGS。

We didn't have the right products until we launched them last year. So we're starting to see that movement into as more and more usage cases in NGS, which also have higher AUPs for that matter.

直到去年我們推出了合適的產品，我們才推出了它們。因此，我們開始看到 NGS 的使用案例越來越多，這方面也有較高的 AUP。

So we're also investing in our BD team. We invested a lot in the clinical side from a sales perspective. We're investing now on the ADx side and rebuilding that BD team and making sure that we have the tools and expertise that will allow us to grow in 2024.

因此，我們也投資於我們的 BD 團隊。從銷售的角度來看，我們在臨床方面投入了大量資金。我們現在正在 ADx 方面進行投資，並重建 BD 團隊，並確保我們擁有使我們能夠在 2024 年實現成長的工具和專業知識。

Maybe talk about liquid biopsy because that's going to be --

也許談論液體活檢，因為那將是--

Yeah. Liquid biopsy is something that we get approached by from pharma all the time, is we do a lot of tissue testing right now, which is what we've built our business on. But on a liquid side, especially for solid tumor, and as Chris mentioned earlier, we're very much underpenetrated on the solid tumor side because we didn't have the right product mix.

是的。液體活檢是我們一直從製藥公司接觸到的東西，我們現在正在進行大量的組織測試，這就是我們建立業務的基礎。但在液體方面，尤其是實體腫瘤方面，正如克里斯之前提到的，我們在實體腫瘤方面的滲透率非常低，因為我們沒有正確的產品組合。

And now we're launching our liquid biopsy CGP which will allow us to make that offering to pharma where they don't have tissue to give to us from samples that have been sitting around 3, 5, 10 years old from clinical trials that have been completed. So we're able to go back and actually try and get some of that business with our new offerings that we're planning to launch this year.

現在我們正在推出我們的液體活檢 CGP，這將使我們能夠向那些沒有組織可以向我們提供組織的製藥公司提供這種服務，這些組織來自已經經過 3、5、10 年的臨床試驗，這些樣本已完成。因此，我們能夠回去並實際嘗試透過我們計劃今年推出的新產品來獲得一些業務。

That's helpful. Thanks, guys.

這很有幫助。多謝你們。

Andrew Cooper, Raymond James.

安德魯庫珀，雷蒙德詹姆斯。

Hey, guys. Thanks for your time. Maybe just first focusing on price for a little bit here or AUP, I should say. Can you just give a sense for how much more runway is there in that 40% of the increase that's come from RCM and price? Or maybe asked another way, what can we expect that to contribute on a yearly basis once the mix is stabilized or in the scenario where kind of on an apples-to-apples basis we think about mix being stabilized?

大家好。謝謝你的時間。我應該說，也許首先關註一下這裡的價格或 AUP。您能否說明一下，來自 RCM 和價格的 40% 的增長還有多少跑道？或者也許換一種方式問，一旦混合穩定下來，或者在我們認為混合穩定的情況下，我們可以期望每年做出什麼貢獻？

Yes. Without kind of getting into granular specifics, we said earlier NGS was driving about 60%. We are still seeing mix improvement in other aspects of the business, which is driving a component of AUP or revenue per test as well.

是的。在不深入具體細節的情況下，我們之前說過 NGS 正在推動約 60% 的發展。我們仍然看到業務其他方面的組合改善，這也推動了 AUP 或每次測試收入的一部分。

I think in terms of the initiatives, we think pricing is a multiyear opportunity for us. And we also think the revenue cycle initiatives that are just increasing the amounts where we're getting paid for what we expect to be paid is a multiyear opportunity.

我認為就這些舉措而言，我們認為定價對我們來說是一個多年的機會。我們也認為，收入週期計劃只是增加了我們預期支付的金額，這是一個多年的機會。

So I think we have multiple year opportunity to continue to close the gap between what we're expected to be paid and what we are being paid. And again, as I've said in prior calls, it is multifaceted. I mean, there are some other clearly identifiable areas, prior authorizations or medical necessity or medical records that we're dealing with.

因此，我認為我們有多年的機會來繼續縮小我們預期薪酬與實際薪酬之間的差距。正如我在之前的電話會議中所說，它是多方面的。我的意思是，我們正在處理一些其他明確可識別的領域、事先授權或醫療必需品或醫療記錄。

And then there's the payer policy aspects, which are a little bit harder, particularly with the larger panel test. And so as some of the biomarker legislation gets approved in states over time, that will also help close the gap for specific tests where we may not be getting reimbursed today or where we're not being reimbursed fully. So again, I think there's a lot of different areas that we have identified that we have teams working on to close that gap and see a multiyear runway.

然後是付款人政策方面，這有點困難，特別是在更大的小組測試中。因此，隨著時間的推移，一些生物標記立法在各州獲得批准，這也將有助於縮小我們今天可能無法獲得報銷或無法獲得全額報銷的特定測試的差距。再說一次，我認為我們已經確定了很多不同的領域，我們的團隊正在努力縮小這一差距，並看到一個多年的跑道。

Okay, great. And then maybe just one more. On the LRP update, obviously, great to see. Maybe just any context for what that does or doesn't do to the EBITDA margin expectations that you laid out back in April and whether that number can be a little bit higher for '26 or maybe how we think about even beyond that time frame, where adjusted EBITDA margins might go in the event of kind of that little bit faster revenue growth?

好的，太好了。然後也許還有一個。顯然，關於 LRP 更新，很高興看到。也許只是關於這對您在 4 月份提出的 EBITDA 利潤率預期有或沒有影響的任何背景，以及 26 年這個數字是否會更高一點，或者我們如何考慮甚至超出這個時間範圍，如果收入增長稍微加快一點，調整後的EBITDA 利潤率可能會走向何方？

Yes. What we said almost a year ago was we expected EBITDA margins to be in the mid- to high-teens by 2027. Obviously, going towards the higher end of -- going to above the high end of that range, I think, will help accelerate that.

是的。大約一年前，我們預計 2027 年 EBITDA 利潤率將達到中雙位數。顯然，我認為，走向更高端——高於該範圍的高端將有助於加速這一進程。

I don't know that it changes meaningfully when we achieve that mid- to high-teens, but it could pull it forward, I think, a period of time. And also, just our ability to generate operating leverage off that revenue growth, I think, will help the adjusted EBITDA growth over time as well.

我不知道當我們達到中十幾歲時，它會發生有意義的變化，但我認為它可以將其向前推進一段時間。而且，我認為，我們從收入成長中產生營運槓桿的能力也將有助於調整後的 EBITDA 隨著時間的推移而成長。

We initially said, we expected to be adjusted EBITDA positive in 2024. Obviously, we achieved that in 2023. Again, almost probably pulling forward somewhat a year on that front. I think as we look at our ability to generate operating leverage on the revenue growth, it clearly will benefit our long-range plan from an adjusted EBITDA and adjusted gross margin basis.

我們最初表示，預計 2024 年調整後 EBITDA 將為正值。顯然，我們在 2023 年實現了這個目標。同樣，在這方面幾乎可能會提前一年。我認為，當我們審視我們對收入成長產生營運槓桿的能力時，調整後的 EBITDA 和調整後的毛利率基礎顯然將使我們的長期計劃受益。

Yes, Andrew. I think as we -- like I talked about earlier, as we've seen the levers and the ability to pull multiple ones to get leverage and pull through on this business, you saw this year the significant amount of our growth drop into the bottom line.

是的，安德魯。我認為，就像我之前談到的那樣，當我們看到槓桿和拉動多個槓桿來獲得槓桿並完成這項業務的能力時，你會看到今年我們的增長量大幅下降到底部線。

And so I think that we -- that's enhanced our confidence in some of these things. Now we still have things like value capture program where we want to go get anywhere from $10 million to $15 million a year. We want to improve gross margins and get gross margin leverage by a 100 basis points every half.

所以我認為我們——這增強了我們對其中一些事情的信心。現在我們仍然有諸如價值獲取計劃之類的項目，我們希望每年獲得 1000 萬至 1500 萬美元的收入。我們希望提高毛利率，並將毛利率槓桿每半提高100個基點。

I mean, all those are fundamental. But I think now, like when you think about Melody, on her side, on the operations, she now has the detailed plans in place and we can see that. So I think it just has given us a greater sense of confidence in our ability to deliver it.

我的意思是，所有這些都是基礎。但我認為現在，就像當你想到梅洛迪時，在她這邊，在行動上，她現在已經制定了詳細的計劃，我們可以看到這一點。所以我認為這讓我們對自己實現這目標的能力更有信心。

Great. I will stop there. Thanks again guys.

偉大的。我就到此為止。再次感謝你們。

Derik De Bruin, Bank of America.

德里克·德布魯因，美國銀行。

Hey, Derik.

嘿，德里克。

Hey, good afternoon. You have John Kim for Derik here. I'm going to try to ask this one more time. Great to hear the 2024 guide and the update on the long-term guide here. Any other details that you could share on what this split is going to be between the clinical services and advanced diagnostics? I think you previously talked about how the clinical services would be a bigger portion of the sales, but would be helpful to know any additional thoughts that you might have.

嘿，下午好。這裡有約翰·金（John Kim）代表德里克（Derik）。我打算再問一次這個問題。很高興在這裡聽到 2024 年指南和長期指南的更新。關於臨床服務和高級診斷之間的劃分，您還有什麼其他細節可以分享嗎？我想您之前談到過臨床服務將如何在銷售額中佔據更大的比例，但了解您可能有的任何其他想法將會有所幫助。

Yeah, we have -- as Chris said earlier, we really view it as an overall portfolio and we guide on a portfolio basis. So we haven't broken out that individually. We do expect both of them to grow in the year. We just haven't broken out and don't plan on breaking out in our guidance.

是的，正如克里斯之前所說，我們確實將其視為一個整體投資組合，並在投資組合的基礎上進行指導。所以我們還沒有單獨分解這個問題。我們確實預計它們今年都會成長。我們只是還沒有突破，而且在我們的指導上也不打算突破。

Got you. And I did want to ask about the patent infringement ruling against RaDar that was in December. Any expectations as to -- I know it's not included in the guidance, so not expecting any financial impact there on the top line or the bottom line. But any expectations in terms of when you think this might get resolved? Or like if it comes to getting rid of it, what impact that could have on the bottom line?

明白你了。我確實想詢問 12 月針對 RaDar 的專利侵權裁決。我知道指引中沒有包含任何預期，因此預計不會對營收或利潤產生任何財務影響。但您對這個問題何時能夠解決有什麼期望嗎？或者如果要擺脫它，這會對利潤產生什麼影響？

Yes. I'm going to let Ali address legal questions. But two quick points, so our guide does not include any RaDar in it, number one; but number two, we do believe MRD's important. So I'll just put that and then I'll throw it to Ali let her kind of walk through how the legal side is coming.

是的。我將讓阿里解決法律問題。但有兩個要點，所以我們的指南中不包含任何雷達，第一；但第二，我們確實相信 MRD 很重要。所以我就把這個說出來，然後我會把它交給阿里，讓她解釋一下法律上的進展。

Sure. We don't have any visibility to the timing. What we know is that we've requested expedited -- an expedited hearing, and we've been granted that expedition and the hearing was -- as Chris said, is scheduled for March 29.

當然。我們對時間安排沒有任何了解。我們所知道的是，我們已請求加急舉行聽證會，我們已獲準舉行加急聽證會，正如克里斯所說，聽證會定於 3 月 29 日舉行。

And so various factors kind of contribute to the Federal Circuit Court of Appeals timing on a decision, including whether or not the decision is presidential, whether there's a dissenting opinion on the panel of three judges.

因此，各種因素都會影響聯邦巡迴上訴法院做出決定的時間，包括該決定是否為總統的決定，而三名法官組成的小組是否有不同意見。

We have also made a motion for a stay pending the appeal, and that motion was fully briefed like Chris said, as of today. And so timing on that is within a couple of weeks. That's sort of what we know in terms of timing on the appeal.

我們還提出了一項暫緩上訴的動議，截至今天，該動議已像克里斯所說的那樣得到了充分的簡報。因此，時間安排將在幾週內。這就是我們所知道的上訴時間。

As far as the infringement matters in District Court, those are ongoing and are in the discovery stage. The North Carolina case has been set for trial in March of 2025 and the Delaware case has been set for trial in October of 2025.

就地方法院的侵權事宜而言，這些事宜正在進行中並處於發現階段。北卡羅來納州案件已定於 2025 年 3 月審判，特拉華州案件已定於 2025 年 10 月審判。

Appreciate all the color and thank you.

欣賞所有的顏色，謝謝。

(Operator Instructions)

（操作員說明）

Tejas Savant, Morgan Stanley.

Tejas Savant，摩根士丹利。

Hey, guys. Good evening. I just wanted to push on that similar line of questioning there. I was curious, Chris, in terms of the comments you made in your prepared remarks about your options available here. Can you give us a sense for how quickly you could pivot to perhaps a new version of RaDar as a workaround for the litigation? And that's something we've seen other peers in the industry resort to in relatively short order. And I was curious if that was an option that you are actively exploring at the moment as well.

大家好。晚安.我只是想在那裡提出類似的問題。克里斯，我很好奇您在準備好的評論中對此處可用的選項所做的評論。您能否告訴我們，您可以多快轉向新版本的 RaDar 作為訴訟的解決方案？我們看到業內其他同行在相對較短的時間內就採取了這種做法。我很好奇這是否也是您目前正在積極探索的選擇。

Yes, Tejas, thanks. Look, I would say that we're actively exploring all options around MRD with the first situation that we believe vigorously about our position from a legal. So I mean, obviously, that's where we're going.

是的，光輝，謝謝。看，我想說的是，我們正在積極探索圍繞 MRD 的所有選擇，第一種情況是我們強烈相信我們的法律立場。所以我的意思是，顯然，這就是我們要去的地方。

That being said, we have been in development for additional MRD products beginning probably 12 months before this even started. So I would say that that's been ongoing. And I would say with us, we believe like a lot of the products that we're trying to bring to market, we think there's an incredible need from a patient perspective, especially for products that continue to improve sensitivity.

話雖這麼說，我們可能在開始之前 12 個月就開始開發其他 MRD 產品。所以我想說這一直在持續。我想說的是，我們相信，就像我們試圖推向市場的許多產品一樣，我們認為從患者的角度來看，存在著令人難以置信的需求，特別是對於持續提高敏感性的產品。

And I would say that Vishal and the team in R&D operate with an incredible sense of urgency. But it's not just from a technology perspective, but it's from an IP perspective; that they're looking at us from a commercialization perspective. But we haven't given any timelines just that we're operating with a sense of urgency on it.

我想說，維沙爾和研發團隊有著令人難以置信的迫切感。但這不僅僅是從技術角度，而是從智慧財產權角度；他們是從商業化的角度來看我們的。但我們沒有給出任何時間表，只是表示我們正在以緊迫感開展工作。

Got it. Fair enough. And then just one quick follow-up for me on the Biomarker Bill. Can you lay out, Chris, what proportion of your tests you think could benefit from incremental commercial payer coverage here given even the states that have currently passed the legislation?

知道了。很公平。然後是我對生物標記法案的一個快速跟進。克里斯，您能否列出您認為可以從增加的商業付款人覆蓋範圍中受益的測試比例，即使是目前已經通過立法的州？

I don't think -- so very clearly where we believe the value will come is on any NGS test, which is a panel of 50 or larger genes. That's where today reimbursement from a third-party payer perspective is quite limited. So that's where we see the benefits.

我不認為——非常清楚的是，我們相信任何 NGS 測試都會產生價值，NGS 測試是由 50 個或更大的基因組成的面板。這就是今天從第三方付款人角度來看的報銷相當有限的地方。這就是我們看到的好處。

In terms of -- I think what portion of our business debt is, et cetera, that's something we actually haven't commented on.

就我而言，我認為我們的商業債務佔了多少，等等，這是我們實際上還沒有評論的事情。

Yeah. And one of the things we will talk more about some of the strategic priorities in '24 when we get together after Q1, but one of them is to launch our Neo Comprehensive 2.0, which is a significant larger panel. And so obviously that'll be an important tool for us.

是的。其中一件事是，當我們在第一季之後聚在一起時，我們將更多地討論24 年的一些戰略優先事項，其中之一是推出我們的Neo Innovative 2.0，這是一個更大的面板。顯然這對我們來說將是一個重要的工具。

Got it. That's helpful. Appreciate the time, guys.

知道了。這很有幫助。珍惜時間，夥計們。

All right. Thanks. Take care.

好的。謝謝。小心。

Dan Brennan, TD Cowen.

丹布倫南，TD·考恩。

Hey, Dan.

嘿，丹。

Hey, good morning, Chris. Good afternoon, excuse me. Maybe just a question back to the liquid offering, any color on what type of reimbursement we can expect and how should we think about framing the opportunity from like a revenue potential perspective.

嘿，早上好，克里斯。下午好，對不起。也許只是一個關於流動產品的問題，關於我們可以期待什麼類型的報銷的任何顏色，以及我們應該如何從收入潛力的角度考慮構建機會。

Do you want to take that? Talk a little bit what's going on with the market.

你想接受嗎？談談市場的一些情況。

The good news here is that -- I mean there is reimbursement that's established, just similar to what you see with the tissue test. And we expect something from a reimbursement perspective, at least for Medicare, would be in a similar type dollar amount as what we see on the tissue side of things with potential for higher, depending on what kind of status we get on this.

這裡的好消息是——我的意思是已經建立了報銷，就像你在組織測試中看到的那樣。我們預計，從報銷的角度來看，至少對於醫療保險來說，美元金額將與我們在組織方面看到的金額類似，有可能更高，這取決於我們在這方面獲得的狀態。

But the reality is that we are also seeing NCCN guidelines get updated at the same time. And you saw that on the lung space in late 2023 where it changed from tissue not being available, especially in lung cancer to tissue or liquid being done at the same time or independent of each other.

但現實情況是，我們也看到 NCCN 指南同時更新。您在 2023 年底的肺部空間中看到了這一點，從組織不可用（尤其是在肺癌中）變為組織或液體同時或彼此獨立進行。

So I think you're seeing the guidelines are changing and that also helps with the whole reimbursement story and the clinical adoption, of course, especially in the community-based setting. I think having a liquid offering that is widespread is going to be critical for us for commercial growth.

因此，我認為您會看到指南正在發生變化，這當然也有助於整個報銷故事和臨床採用，尤其是在社區為基礎的環境中。我認為擁有廣泛的流動性產品對於我們的商業成長至關重要。

Great. And then maybe just sticking with NGS, clinical market volumes probably growing north of 30%. Just wondering for your volume growth, how much -- if we're thinking about like the market growth versus converting your customers from, say, legacy test to NGS, could you just give us a sense of like maybe -- I know you're not going to distill the exact numbers for each, but I'm just wondering how far along your customers are. And is that a big driver for you that you're kind of bringing forward some of these more community hospitals and doctors towards NGS? Thank you.

偉大的。然後也許只是堅持 NGS，臨床市場容量可能會成長 30% 以上。只是想知道你們的銷量成長了多少——如果我們考慮的是市場成長與將客戶從傳統測試轉向NGS，你能給我們一種感覺嗎——我知道你。我們不會提取每個人的確切數字，但我只是想知道您的客戶走了多遠。您將更多的社區醫院和醫生推向 NGS，這對您來說是一個很大的推動力嗎？謝謝。

Yes, I'll let Warren take it. But remember, we have three distinct strategies that we focus on. And really from a field compensation perspective, they're incentivized on all of them. Do you want to talk a little bit about what's going on?

是的，我會讓華倫接受。但請記住，我們專注於三種不同的策略。事實上，從現場補償的角度來看，他們都受到了所有這些激勵。你想談談正在發生的事情嗎？

Yes. I think there's a couple of dynamics that are taking place. Certainly, we've got customers that may not be using NGS today using a different modality that we're moving into NGS. That's the first kind of motion.

是的。我認為正在發生一些動態。當然，我們的客戶可能現在還沒有使用 NGS，而他們使用的是我們正在轉向 NGS 的不同模式。這是第一種運動。

Second is we have a number of smaller genes, single gene and smaller panels that are available; and these, we're moving customers to larger panels. And then obviously we have the dynamic of customers, which haven't been near customers in the past that are now -- we're now addressing and this is particularly relevant in the community oncology setting.

其次，我們有許多可用的較小基因、單基因和較小的panel；這些，我們正在將客戶轉移到更大的面板。顯然，我們有客戶的動態，這些客戶過去沒有接近現在的客戶——我們現在正在解決這個問題，這在社區腫瘤學環境中尤其重要。

Those are kind of the three areas where we see sort of growth from an NGS perspective. It really plays into with our commercial strategy, which again is around protecting existing customers, but secondly, expanding share of wallet where we drive various GAAP analysis strategies to identify which customers to target with different NGS offerings, which could be one of those three -- not using NGS, moving to NGS, or using a single or small panel into a larger panel.

從 NGS 的角度來看，這些是我們看到成長的三個領域。它確實符合我們的商業策略，即保護現有客戶，但其次，擴大錢包份額，我們推動各種 GAAP 分析策略來確定不同 NGS 產品的目標客戶，這可能是這三個之一 - - 不使用NGS ，轉向NGS，或使用單一或小面板到更大的面板。

And then thirdly, it's the acquire elements of our commercial strategy, which is gaining new customers which haven't been supporters of Neo in the past.

第三，這是我們商業策略的取得要素，即贏得過去不是 Neo 支持者的新客戶。

And the third one is obviously the toughest: getting new customers, thus by far the biggest opportunity where we just have been spending time for starting lab 12 months ago, which is just community oncologists.

第三個顯然是最困難的：獲得新客戶，因此是迄今為止最大的機會，我們 12 個月前剛花時間啟動了實驗室，該實驗室只有社區腫瘤學家。

Great. Thank you.

偉大的。謝謝。

Thank you.

謝謝。

We have reached the end of the question-and-answer session, and I will now turn the call over to Chris Smith for closing remarks.

問答環節已經結束，現在我將把電話轉給克里斯史密斯做總結發言。

Okay. Thank you. Look, I just appreciate everybody taking the time to get together and get some more color on what's going on inside the business. We kind of talk about the state of the business. I think we feel incredibly good about where the business is and where the business is heading.

好的。謝謝。聽著，我很感謝大家花時間聚在一起，對企業內部正在發生的事情有更多的了解。我們談論的是業務狀況。我認為我們對業務現狀和發展方向感到非常滿意。

I think we're ahead of where we thought the early plans were being. And I think as we continue to go for each quarter, we'll try to give you more insight into the business and how we continue to build this long-term sustainable growth. Again, thanks, for your time today and take care.

我認為我們已經超出了我們最初計劃的預期。我認為，隨著我們繼續每個季度的發展，我們將盡力讓您更深入地了解業務以及我們如何繼續實現長期可持續成長。再次感謝您今天抽出時間並保重。

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的會議到此結束。此時您可以斷開線路。感謝您的參與。