GeneDx Holdings Corp (WGS) 2024 Q2 法說會逐字稿

Good day and thank you for standing by.

美好的一天，感謝您的支持。

Welcome to the GeneDX second quarter 2024 earnings conference call.

歡迎參加 GeneDX 2024 年第二季財報電話會議。

At this time, all participants are in a listen only mode.

此時，所有參與者都處於只聽模式。

After the speakers' presentation, there will be a question and answer session to ask a question.

演講者演講結束後，將進行問答環節。

During this session, you'll need to press star one one on your telephone You will then hear an automated message.

在此會話期間，您需要在電話上一一按星號，然後您將聽到一條自動訊息。

Advising your hand is raised to withdraw your question, please press star one one.

建議舉手撤回問題，請按星號一一。

Again.

再次。

Please be advised that today's conference is being recorded.

請注意，今天的會議正在錄製中。

I would now like to hand the conference over to Sabrina Dunbar, Investor Relations.

我現在想將會議交給投資者關係部門的 Sabrina Dunbar。

Please go ahead.

請繼續。

Thank you, Operator, and thank you to everyone for joining us today.

謝謝運營商，也謝謝大家今天加入我們。

On the call, we have Katherine Stueland, President and Chief Executive Officer; and Kevin Feeley, Chief Financial Officer.

總裁兼執行長凱瑟琳·斯圖蘭 (Katherine Stueland) 出席了電話會議。和財務長凱文·菲利。

Earlier today, GeneDx released financial results for the second quarter ended June 30, 2024.

今天早些時候，GeneDx 發布了截至 2024 年 6 月 30 日的第二季財務業績。

Before we begin, please take note of our cautionary statement.

在我們開始之前，請注意我們的警告聲明。

We may make forward-looking statements on today’s call, including about our business plans, guidance and outlook.

我們可能會在今天的電話會議上發表前瞻性聲明，包括我們的業務計劃、指導和前景。

Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 30, and we are under no obligation to update.

前瞻性陳述本質上涉及風險和不確定性，僅反映我們截至今天 7 月 30 日的觀點，我們沒有義務更新。

When discussing our results, we refer to non-GAAP measures, which exclude certain items from reported results.

在討論我們的結果時，我們指的是非公認會計準則衡量標準，這些衡量標準從報告的結果中排除了某些項目。

Please refer to our second quarter 2024 earnings release and slides available at ir.genedx.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements.

請參閱我們在ir.genedx.com 上發布的2024 年第二季度收益報告和幻燈片，以了解非GAAP 指標的定義和調節以及有關我們結果的其他信息，包括對可能導致實際結果與前瞻性結果存在重大差異的因素的討論。

And with that, I will turn the call over to Katherine.

然後，我會將電話轉給凱瑟琳。

Thanks, Sabrina, and thank you all for joining us.

謝謝薩布麗娜，也謝謝大家加入我們。

The second quarter proved to be another strong quarter by all measures.

從所有方面來看，第二季都被證明是另一個強勁的季度。

We delivered nearly $69 million in revenues, expanded gross margins to 62% and achieved our ninth consecutive quarter of cash burn reduction.

我們實現了近 6,900 萬美元的收入，將毛利率擴大到 62%，並實現了連續第九個季度現金消耗減少。

We’ve been relentlessly focused on these three metrics, and that focus continues to pay off.

我們一直不懈地關注這三個指標，而這種關注持續得到回報。

Given the strength in the first half of the year, I’m happy to say that we’re raising our revenue guidance for the year to $255 million to $265 million and we’re even closer to our goal of becoming profitable.

考慮到今年上半年的強勁表現，我很高興地說，我們將今年的營收指引提高到 2.55 億美元至 2.65 億美元，我們距離獲利目標更近了。

This is an important milestone for us as a company because of the massive opportunity in front of us to serve an ever-growing number of families and to positively impact the future of health care.

對於我們公司來說，這是一個重要的里程碑，因為我們面臨著巨大的機會，可以為越來越多的家庭提供服務，並對醫療保健的未來產生積極影響。

Today, GeneDx is primarily focused on pediatric patients and the providers that care for these patients, including medical geneticists, genetic counselors, pediatric neurologists, developmental pediatricians and neonatologists.

如今，GeneDx 主要關注兒科患者和照顧這些患者的提供者，包括醫學遺傳學家、遺傳諮詢師、兒科神經科醫生、發育兒科醫生和新生兒科醫生。

We have now sequenced more than 665,000 exomes and genomes and have performed more than 1 million genetic tests, working tirelessly to carry one of the largest and most diverse databases, of disease-associated genomic variants.

我們現已對超過 665,000 個外顯子組和基因組進行了測序，並進行了超過 100 萬次基因測試，我們不懈地努力建立最大、最多樣化的疾病相關基因組變異資料庫之一。

This industry-leading data set, combined with our proprietary bioinformatics and variant identification and interpretation capabilities, colorless us to create the most advanced diagnostic exome and genome sequencing options available.

這一行業領先的數據集與我們專有的生物資訊學以及變異識別和解釋能力相結合，讓我們能夠創建最先進的診斷外顯子組和基因組測序選項。

And those tests continue to become recommended as first-line test and the standard-of-care resulting in better health outcomes and cost benefits for both patients and health care systems.

這些測試繼續被推薦作為第一線測試和護理標準，從而為患者和醫療保健系統帶來更好的健康結果和成本效益。

So to track our success, one of the key metrics we focus on is test mix.

因此，為了追蹤我們的成功，我們關注的關鍵指標之一是測試組合。

This quarter, exome and genome has accounted for over 74% of our total revenue, reflecting our successful transition towards a more streamlined and impactful product mix.

本季度，外顯子組和基因組收入占我們總收入的 74% 以上，反映出我們成功過渡到更精簡、更有影響力的產品組合。

The upshot of strong commercial execution has been amplified by our team’s operational and technological excellence.

我們團隊卓越的營運和技術進一步增強了強大商業執行力的成果。

These teams continue to put additional wind in our sales by reducing costs, shortening turnaround times by identifying opportunities for improved efficiency, scaling our lab with support from AI and machine learning technologies and improving our billing workflows in service of better patient provider and payer experiences.

這些團隊透過降低成本、透過識別提高效率的機會來縮短週轉時間、在人工智慧和機器學習技術的支持下擴展我們的實驗室以及改進我們的計費工作流程以提供更好的患者提供者和付款人體驗來繼續為我們的銷售帶來更多動力。

In the third quarter of last year, I shared that we had adopted a mindset of discipline and focus on near-term highest impact business drivers.

去年第三季度，我表示我們已經採取了紀律思維，並專注於近期影響最大的業務驅動因素。

And that we must earn our right to invest in longer-term strategies as the point of profitability approach.

我們必須贏得投資長期策略的權利，作為獲利方法的重點。

It’s the right time to lean in and invest in our future, starting with a focus on whole genome sequencing.

現在正是從全基因組定序開始關注和投資我們的未來的最佳時機。

This quarter, we announced a partnership with Epic to integrate with health system workflows and improve provider and patient journeys via Epic electronic connections.

本季度，我們宣布與 Epic 合作，與衛生系統工作流程集成，並透過 Epic 電子連接改善提供者和患者的旅程。

And today, we shared more information about investments in our products as we translate our leadership in exome to pave the way for a genome future.

今天，我們分享了更多有關產品投資的信息，我們將在外顯子組領域的領先地位轉化為基因組的未來鋪平道路。

We unveiled a series of enhancements to our genome product to reduce turnaround time, expand accepted sample types and increased diagnostic yield.

我們推出了基因組產品的一系列增強功能，以縮短週轉時間、擴大可接受的樣本類型並提高診斷率。

We will remain absolutely disciplined as we approach future investments and focus on commercial liability for the dollars we invest.

當我們進行未來投資時，我們將保持絕對的紀律，並專注於我們投資的美元的商業責任。

We’re also making progress on key policies across the United States that ensure there is expanding access to exome and genome testing nationwide.

我們也在美國各地的關鍵政策上取得進展，以確保在全國範圍內擴大外顯子組和基因組檢測的範圍。

We’re pleased by the adoption of additional biomarker legislation in the second quarter and know the direct impact these laws will have on patients and families.

我們對第二季度通過更多生物標誌物立法感到高興，並且知道這些法律將對患者和家庭產生直接影響。

As a company headquartered in Connecticut, we were proud to see rapid whole genome sequencing passed into law here effective July 1.

作為一家總部位於康乃狄克州的公司，我們很自豪地看到快速全基因組定序已於 7 月 1 日在該州成為法律。

Today, 14 states cover rapid genome sequencing, with North Carolina announcing added coverage in just the last few days.

如今，已有 14 個州涵蓋了快速基因組定序，北卡羅來納州在過去幾天內宣布擴大覆蓋範圍。

We also see certain commercial payers taking steps in the right direction as shown through our partnership with United Healthcare to offer whole genome sequencing to their patients across the country.

我們也看到某些商業付款人正在朝著正確的方向採取措施，正如我們與聯合醫療保健公司的合作所示，為全國各地的患者提供全基因組定序。

We believe that equitable access to testing is fundamental and are thrilled to see bipartisan support among policymakers throughout the country.

我們認為，公平地獲得檢測機會至關重要，並很高興看到全國決策者得到兩黨的支持。

In addition to the supremely important work being done by state Medicaid programs and commercial payers, we’ve taken our own steps to drive progress forward.

除了州醫療補助計劃和商業付款人所做的極其重要的工作外，我們還採取了自己的步驟來推動進步。

In the second quarter, we launched a patient access program for epilepsy patients in partnership with biopharmaceutical leaders to open up access to exome testing while helping eligible patients enroll in clinical trials and other therapeutic opportunities.

在第二季度，我們與生物製藥領導者合作，為癲癇患者推出了一項患者准入計劃，以開放外顯子組檢測的機會，同時幫助符合條件的患者參加臨床試驗和其他治療機會。

Our proprietary genomics data set was built by patients across America.

我們專有的基因組學資料集是由美國各地的患者建立的。

Thus offering one of the most representative and diverse looks at genomic data available.

因此提供了最具代表性和多樣化的可用基因組數據之一。

As we think about differentiation, we appreciate the steps we’ve taken historically to prioritize equitability and remove barriers to cost on our journey to servicing patients and providers in every circumstance, but we’re not done yet.

當我們考慮差異化時，我們讚賞我們歷史上採取的優先考慮公平性並消除在各種情況下為患者和提供者提供服務的過程中的成本障礙的步驟，但我們還沒有完成。

There are millions of patients and families in the U.S. and globally that can benefit from the actionability of a genetic diagnosis.

美國和全球有數百萬患者和家庭可以從基因診斷的可操作性中受益。

The diagnosis can immediately change clinical management, unlock clinical trial opportunities, qualify patients for the financial support they desperately need, connect families to communities unified around their child diagnosis by way of patient advocacy groups and much more.

診斷可以立即改變臨床管理，釋放臨床試驗機會，使患者有資格獲得他們迫切需要的財務支持，透過患者倡導團體等方式將家庭與圍繞兒童診斷統一的社區聯繫起來。

We recognize the privilege that a market-leading position offers us, and we are continuing to invest in accelerators for our business while balancing growth and scale with financial discipline and strength.

我們認識到市場領先地位為我們帶來的特權，我們將繼續投資於我們的業務加速器，同時平衡成長和規模與財務紀律和實力。

With that, I’ll pass it over to Kevin to go through our results.

這樣，我會將其交給凱文來查看我們的結果。

Great.

偉大的。

Thanks, Katherine.

謝謝，凱瑟琳。

Second quarter 2024 revenues from continuing operations grew to $68.9 million compared to $45.2 million in the second quarter of 2023 and $61.5 million in the first quarter of 2024.

2024 年第二季持續營運收入成長至 6,890 萬美元，而 2023 年第二季為 4,520 萬美元，2024 年第一季為 6,150 萬美元。

That’s an increase of 52% year-over-year and 12% sequentially in total.

年增 52%，季增 12%。

Drilling into that, exome and genome revenues grew 77% year-over-year and 15% sequentially, delivering $50 million in revenue this quarter.

深入研究，外顯子組和基因組收入年增 77%，季增 15%，本季營收達到 5,000 萬美元。

Both volume and collection performance contributed nicely.

數量和收集性能都做出了很好的貢獻。

Adjusted gross profit from continuing operations was $42.8 million in the second quarter of 2024.

2024 年第二季持續經營業務調整後毛利為 4,280 萬美元。

That’s up 153% compared to Q2 2023, and up 13% from the first quarter of 2024.

與 2023 年第二季相比成長 153%，與 2024 年第一季相比成長 13%。

Adjusted gross margin from continuing operations was 62% in the second quarter of 2024, up from 37% a year ago and up from 61% in the first quarter.

2024 年第二季持續經營業務調整後毛利率為 62%，高於一年前的 37%，高於第一季的 61%。

Gross profit growth and margin expansion is driven by increased volume, improved average reimbursement rate, continued cost per test leverage and favorable mix shift.

毛利成長和利潤率擴張是由銷售增加、平均報銷率提高、持續的每次測試成本槓桿和有利的組合轉變所推動的。

On volume and mix, exome and genome was 31% of all tests resulted this quarter, up from 22% a year ago and up from 30% in the first quarter.

就數量和組合而言，外顯子組和基因組佔本季所有測試結果的 31%，高於一年前的 22%，也高於第一季的 30%。

Overall, I’m quite pleased with the mix, given the strong underlying exome and genome volume, whereby our team delivered over 18,000 tests this quarter, an increase of 52% year-over-year and 9% sequentially.

總體而言，鑑於強大的基礎外顯子組和基因組數量，我對這種組合非常滿意，我們的團隊本季度進行了超過 18,000 次測試，同比增長 52%，環比增長 9%。

We’ll continue to optimize the test portfolio towards exome and genome balancing unit economics, clinical impact and customer satisfaction over time.

隨著時間的推移，我們將繼續優化測試組合，以平衡外顯子組和基因組的單位經濟效益、臨床影響和客戶滿意度。

On average reimbursement rate, our exhaustive effort to improve exome reimbursement rates through denial reduction is working.

就平均報銷率而言，我們透過減少拒絕來提高外顯子組報銷率的竭盡全力正在發揮作用。

In the second quarter of 2024, our average reimbursement rate for exome and genome after all denials was approximately $2,800, up from $2,600 last quarter and up from $2,500 in the fourth quarter of 2023.

2024 年第二季度，在所有拒絕後，我們的外顯子組和基因組平均報銷率約為 2,800 美元，高於上季度的 2,600 美元，也高於 2023 年第四季的 2,500 美元。

Across the commercial insurance payer environment, we continue to enable and calibrate insurance specific workflow to reduce administrative and procedural denials.

在整個商業保險付款人環境中，我們繼續啟用和校準保險特定工作流程，以減少行政和程序拒絕。

That said, we remain clear about the complex operating environment where some payer business models are inherently predicated on collecting premiums while narrowly interpreting archaic medical policy and administrative requirements to suit their own business needs.

儘管如此，我們仍然清楚複雜的營運環境，一些付款人業務模式本質上是以收取保費為基礎的，同時狹隘地解釋過時的醫療政策和管理要求，以滿足自己的業務需求。

Our focus on generating clinical data and articulating the value proposition of our differentiated exome as a first-in-line test will continue to underpin our advocacy for equitable access and patient-centric medical policy.

我們專注於產生臨床數據並闡明我們的差異化外顯子組作為第一線測試的價值主張，這將繼續支持我們倡導公平獲取和以患者為中心的醫療政策。

All so that we can help get more families the care they need and get reimbursed fairly.

所有這些都是為了我們能夠幫助更多的家庭獲得他們所需的護理並獲得公平的報銷。

Across Medicaid populations, denials are and should continue to come down as medical policy continues its momentum towards broad coverage for exome and genome.

隨著醫療政策繼續擴大外顯子組和基因組覆蓋範圍，醫療補助人群的拒絕率正在而且應該繼續下降。

In particular, state Medicaid programs continue to expand coverage for rapid genetic testing in the NICU.

特別是，州醫療補助計劃繼續擴大新生兒加護病房快速基因檢測的覆蓋範圍。

We highlighted North Carolina, Texas and Connecticut in our release today.

我們在今天的新聞稿中重點介紹了北卡羅來納州、德克薩斯州和康涅狄格州。

And on cost per test, the team has done a great job optimizing the wet lab, and there remains opportunity to couple our unparalleled genomic data set with new generation of automation tools to drive scalability and efficiency across drive side clinical interpretation analysis, abstracting and report reading.

在每次測試的成本方面，該團隊在優化濕實驗室方面做得非常出色，並且仍然有機會將我們無與倫比的基因組數據集與新一代自動化工具結合起來，以推動驅動端臨床解釋分析、摘要和報告的可擴展性和效率閱讀。

Now moving down to operating expense.

現在轉向營運費用。

Total adjusted operating expense was $45 million in the second quarter of 2024.

2024 年第二季調整後營運費用總額為 4,500 萬美元。

That’s a reduction of 24% year-over-year and 1% sequentially.

年減 24%，季減 1%。

I now consider us to be at a normalized relative OpEx base for the business, ready to drive operating leverage as we grow.

我現在認為我們的業務處於標準化的相對營運支出基礎，準備隨著我們的發展而提高營運槓桿。

One call out this quarter, GAAP expense and GAAP net loss in the second quarter of 2024 includes a onetime litigation charge, net of expected insurance recovery of approximately $13 million.

本季的一項調查顯示，2024 年第二季的 GAAP 費用和 GAAP 淨虧損包括一次性訴訟費用，扣除預計約 1,300 萬美元的保險賠償。

The charge relates to a stockholder commenced lawsuit brought in the prior year as a class action on behalf of former stockholders of CM Life Sciences who did not redeem their shares in connection with the 2021 business combination between CM Life Sciences and legacy Sema4.

該指控涉及一位股東在上一年代表 CM Life Sciences 前股東提起的集體訴訟，這些股東沒有贖回與 CM Life Sciences 和遺留 Sema4 之間的 2021 年業務合併有關的股份。

The suit named CM Life Sciences and its directors at the time of that business combination.

該訴訟的名稱為 CM Life Sciences 及其在該業務合併時的董事。

And on the bottom line, total company adjusted net loss for the second quarter of 2024 narrowed to $2.7 million.

整體而言，2024 年第二季公司調整後淨虧損收窄至 270 萬美元。

That is an improvement of 93% year-over-year and 68% sequentially, driven by gross profit growth and operating expense rationalization.

在毛利成長和營運費用合理化的推動下，年增 93%，較上季成長 68%。

With that, we’re approaching the turn to profitability.

至此，我們即將獲利。

Our second quarter net cash burn was $6.1 million, which improved 89% year-over-year and 65% sequentially.

我們第二季的淨現金消耗為 610 萬美元，年增 89%，季增 65%。

And we’ve now delivered 9 consecutive quarters of cash burn reduction.

我們現在已經連續 9 個季度實現了現金消耗減少。

On the balance sheet, cash, cash equivalents, marketable securities and restricted cash was a total of $108 million as of June 30, 2024.

截至 2024 年 6 月 30 日，資產負債表上的現金、現金等價物、有價證券及限制性現金總計 1.08 億美元。

And as of June 30, 2024, there are 26,926,383 Class A common shares outstanding.

截至 2024 年 6 月 30 日，已發行 A 類普通股數量為 26,926,383 股。

The outstanding share count includes the issuance of 645,414 shares of Class A common stock to Perceptive in April 2024 to satisfy a cashless exercise of the 800,000 warrants they received in connection with the October 2023 debt placements.

已發行股票數包括 2024 年 4 月向 Perceptive 發行的 645,414 股 A 類普通股，以滿足其在 2023 年 10 月債務配售中收到的 800,000 份認股權證的無現金行使。

And now turning to guidance.

現在轉向指導。

We are again raising previously issued revenue guidance and now expect to deliver revenues between $255 million and $265 million for the full year 2024.

我們再次提高先前發布的營收指引，目前預計 2024 年全年營收將在 2.55 億至 2.65 億美元之間。

We are re-iterating previously issued adjusted gross margin guidance to land full year 2024 at 60% or higher.

我們重申先前發布的調整後毛利率指引，目標是 2024 年全年達到 60% 或更高。

And we’re improving our net cash burn guide and now anticipate using $65 million to $75 million of net cash for the full year 2024.

我們正在改進淨現金消耗指南，目前預計 2024 年全年將使用 6,500 萬至 7,500 萬美元的淨現金。

That latest guide here contemplates fully absorbing the legal settlement should that be required in 2024.

如果 2024 年需要的話，這裡的最新指南考慮完全吸收法律解決方案。

The ultimate timing of that payment is still uncertain at this time.

目前該付款的最終時間仍不確定。

And as a reminder, the next scheduled payment under the 2022 legacy Sema4 payer settlement is $10 million and that will be paid in December of 2024.

提醒一下，2022 年遺留 Sema4 付款人和解協議下的下一次預定付款為 1000 萬美元，將於 2024 年 12 月支付。

Finally, we once again reiterate our expectation to turn the business profitable in 2025.

最後，我們再次重申我們預計業務將在 2025 年實現盈利。

With that, I’ll turn you back to Katherine.

這樣，我就把你轉回凱瑟琳那裡。

Wonderful.

精彩的。

Thanks, Kevin.

謝謝，凱文。

Over the past few years, we have successfully transformed GeneDx into a driving force in genetic diagnostics, and we couldn’t have gotten here alone.

在過去的幾年裡，我們已經成功地將 GeneDx 轉變為基因診斷的驅動力，而我們單槍匹馬無法實現這一目標。

Our patients and their families, our customers, collaborators, our team members and our shareholders make all of this possible, and I want to thank each one of those constituents for their ongoing dedication and support.

我們的病人及其家人、我們的客戶、合作者、我們的團隊成員和我們的股東使這一切成為可能，我要感謝每一位成員的持續奉獻和支持。

We’re painting a vision for a better future in health care, one, where every family can benefit from earlier diagnosis of disease through genomics and with another successful quarter under our belt or one step closer to realizing that future.

我們正在描繪醫療保健領域更美好未來的願景，其中每個家庭都可以從透過基因組學進行疾病的早期診斷中受益，並且我們將在另一個季度取得成功，或者距離實現這一未來又近了一步。

I’ll now open the call up for questions.

我現在將開始提問。

(Operator Instructions).

（操作員說明）。

Tycho Peterson, Jefferies.

第谷·彼得森，杰弗里斯。

Hey good afternoon.

嘿下午好。

Maybe starting with pharma, biopharma.

也許從製藥、生物製藥開始。

It looks like you added 11, I think you had 21 at the end of the first quarter.

看起來你增加了 11 個，我認為第一節結束時你有 21 個。

So maybe just talk a little bit about momentum, spend on biopharma, how much is data versus kind of new program ads?

所以也許只是談談動力、生物製藥的支出、數據與新節目廣告的成本是多少？

Certainly.

當然。

And so we added, as you pointed out and several new programs for the quarter, and we're really pleased.

因此，正如您所指出的，我們添加了本季度的幾個新計劃，我們真的很高興。

Some of that is repeat business from existing biopharma partners.

其中一些是現有生物製藥合作夥伴的重複業務。

And these are the nature of these programs on predominantly connecting biopharma partners with providers who have patients who may be eligible for a clinical trial.

這些計劃的本質是主要將生物製藥合作夥伴與擁有可能有資格參加臨床試驗的患者的提供者聯繫起來。

And then as you saw in June, we announced a program in support from biopharma companies to open up access to epilepsy exome testing.

然後，正如您在 6 月看到的那樣，我們宣布了一項由生物製藥公司支持的計劃，以開放癲癇外顯子組測試。

And so we are through that program able to run all patients through insurance work with biopharma companies on those patients who have been denied on to be able to ensure that no patient has a barrier to that testing.

因此，我們透過該計劃能夠為所有患者提供與生物製藥公司合作的保險工作，為那些被拒絕進行檢測的患者提供保險，以確保沒有患者對檢測有障礙。

So its data by way of connecting biopharma companies to patients and and we continue to see that as being the most, I think, Representative commercial approach for the data business over the next 18 months or so.

因此，它的數據透過將生物製藥公司與患者聯繫起來，我認為，我們繼續認為這是未來 18 個月左右的數據業務最具代表性的商業方法。

And it's meaningful not only in terms of building up that ecosystem, diversifying our revenue streams.

這不僅對於建立生態系統、使我們的收入來源多樣化方面具有意義。

But I think importantly, really paving a path forward for a lot of these patients to make sure that they know what they can do beyond getting a diagnosis being able to connect them with those next steps.

但我認為重要的是，真正為許多患者鋪平了一條前進的道路，以確保他們知道除了獲得診斷能夠將他們與後續步驟聯繫起來之外，他們還能做什麼。

And then what are you assuming for whole exome genomics and the revised guidance, can you kind of bridge the new guide with the old?

那麼您對全外顯子組基因組學和修訂後的指南有何假設，您能否將新指南與舊指南聯繫起來？

And what was what's getting better?

什麼是變得更好了？

Yes.

是的。

So I look, we're really encouraged with the trajectory of exome and genome volumes.

所以我認為，我們對外顯子組和基因組體積的發展軌跡感到非常鼓舞。

And from a mix perspective, the 31% was a function of really strong underlying volume growth for exome and genome, but then also growth in other lines.

從混合的角度來看，31% 是外顯子組和基因組真正強勁的基礎體積增長的函數，但其他品係也有成長。

I mean, we continue to look at the test, our menu and our offerings to optimize for unit economics as well as clinical impact.

我的意思是，我們將繼續專注於測試、菜單和產品，以優化單位經濟效益和臨床影響。

And we've said previously, we expect sequential growth in Exosome genomics in terms of total tests anywhere from 1% to 3% per quarter.

我們之前說過，我們預計外泌體基因組學的總測試量每季將連續成長 1% 至 3%。

We deliver that this quarter, and I'd expect the similar pacing and for the remainder of 2024.

我們將在本季實現這一目標，我預計 2024 年剩餘時間也會有類似的進度。

And last one, just on pricing, over 2,800 in 2Q.

最後一項，僅就定價而言，第二季超過 2,800。

Is there still kind of room to go in the back half of the year?

下半年還有空間嗎？

And then, Kevin, I think you talked about reaching profitability in next couple of quarters.

然後，凱文，我想你談到了在接下來的幾個季度實現盈利。

I mean, that's a little bit different than what you previously said on 2025.I'm just curious if you could give us a sense of when in 2025, you think you'll hit?

我的意思是，這與您之前所說的 2025 年有點不同。

Really encouraged about the performance on collection and bringing down denials to raise that average reimbursement rate.

對於收款和減少拒絕以提高平均報銷率的表現感到非常鼓舞。

Previously, we said expect with each passing quarter of 2024 to assume something close to $100 in uplift in that aggregate rate.

先前，我們表示預計 2024 年每季的總利率都會上漲近 100 美元。

We were able to outperform that in the second quarter, and I think that remains the expectation is that we ought to be able to raise that rate something in the order of magnitude of $100 per quarter for each of the remaining quarters in 2024.

我們在第二季度的表現超過了這一水平，我認為我們仍然期望能夠在 2024 年剩餘的每個季度將這一比率提高到每季度 100 美元的數量級。

Overall, really strong with where we came out in the second quarter.

總的來說，我們在第二季的表現非常強勁。

We’re really pleased with where we came out.

我們對我們的結果非常滿意。

Overall, on timing for returns [ph] of profitability, look, we just posted a net loss of sub-$3 million, $2.7 million.

總體而言，就獲利回報的時機而言，我們剛剛公佈了低於 300 萬美元、270 萬美元的淨虧損。

So we’re right on the doorstep.

所以我們就在門口。

It will be in the coming quarter.

它將在下個季度進行。

The guide reiterated that the full year of 2025 on that measure of adjusted net loss, the balance of the full year $25 million will be profitable, and there will be a quarter upcoming here, likely in the first half off 2025, but we’re on the precipice of hitting that milestone.

該指南重申，按照調整後淨虧損衡量，2025 年全年餘額 2500 萬美元將實現盈利，並且將有一個季度即將到來，可能是在 2025 年上半年，但我們 –我們正處於實現這一里程碑的邊緣。

great.

偉大的。

Thank you very much.

非常感謝。

Bill Bonello, Craig Hallum.

比爾·博內羅，克雷格·哈勒姆。

Hey guys.

嘿夥計們。

Great quarter.

很棒的季度。

Can you tell us a little bit more about the Epic collaboration?

您能告訴我們更多有關 Epic 合作的資訊嗎？

How quickly do you expect to have that rolled out, maybe the breadth of your clients who are using Epic and then maybe a little bit on the cost?

您希望以多快的速度推出該服務，也許是您使用 Epic 的客戶的廣度，然後可能是一點點成本？

Certainly, I’ll kick it off.

當然，我會開始它。

And thanks, Bill.

謝謝，比爾。

The Epic partnership is one that other companies in our face have proven really can drive patient access and can accelerate utilization.

我們面前的其他公司已經證明，Epic 合作夥伴關係確實可以推動患者就診並加速利用。

And so we took a very data-driven approach to assessing the opportunity and whether or not the timing was right for us to make the investment now.

因此，我們採用了一種非常數據驅動的方法來評估機會以及我們現在進行投資的時機是否合適。

And we saw a really impressive pipeline of opportunity, particularly in the NICU, to be able to drive our rapid whole genome sequencing product into that space.

我們看到了一系列令人印象深刻的機會，特別是在新生兒加護病房，能夠將我們的快速全基因組定序產品推向該領域。

And strategically, that becomes a fantastic opportunity in terms of being able to embed our services.

從策略上講，這成為嵌入我們服務的絕佳機會。

It ensures that it is easier for these providers to order.

它確保這些提供者更容易訂購。

And then if you think about then extending that same sort of service through an entire health system more broadly into the pediatric setting, we think that it will translate nicely and I would remind you of the business on the NICU side of things is predominantly institutional.

然後，如果您考慮將相同類型的服務通過整個衛生系統更廣泛地擴展到兒科環境中，我們認為這會很好地轉化，我想提醒您，新生兒重症監護室方面的業務主要是機構性的。

So we took a look at the pipeline of opportunity and we’re really pleased with what we believe we can realize likely in the second half of 2025.

因此，我們審視了一系列機會，我們對 2025 年下半年可能實現的目標感到非常滿意。

That requires some work later this year and into the first part of next year to actually make sure that the engineering side of things is well planned and well deployed in partnership with Epic.

這需要在今年稍後和明年上半年進行一些工作，以真正確保工程方面與 Epic 合作得到良好規劃和部署。

And so we’ve got that on our road map for Q4 and into next year.

因此，我們已將其納入第四季和明年的路線圖上。

But as I said, we expect to start to see the benefits of that in the second half of 2025, but even more so broadly into 2026 and beyond.

但正如我所說，我們預計將在 2025 年下半年開始看到其好處，更廣泛的是到 2026 年及以後。

Okay, thanks.

好的，謝謝。

And then just one other, maybe you could talk a little bit more about the what you're calling the reinvestment in whole genome and sort of specifically what it is you're spending on, but what the improvements will be that and I am assuming those expenditures are probably in the in the guidance, but just to confirm that,

然後還有一個，也許你可以多談談你所說的對整個基因組的再投資，以及具體來說你正在花什麼錢，但我假設改進將是什麼這些支出可能在指南中，但只是為了確認這一點，

Yes.

是的。

All of the investments are contemplated in the guide that we provided today, the updated guide.

我們今天提供的更新指南中考慮了所有投資。

So the reality is when we prioritize the company’s efforts last fall.

因此，現實是我們去年秋天優先考慮公司的工作。

Everything was organized around really driving exome utilization and we put a pause on some of the genome improvements that we would have wanted to invest in earlier.

一切都是圍繞著真正推動外顯子組的利用而組織的，我們暫停了一些我們本來想早些時候投資的基因組改進。

Those are namely faster turnaround times, getting a written report out in five days.

也就是說，週轉時間更快，五天內即可獲得書面報告。

We previously have been doing a verbal in a number of days.

我們之前幾天一直在進行口頭交流。

And that is no longer what customers seem to be the right product delivery.

這不再是客戶認為的正確產品交付方式。

So being able to drive a write report in five days, making it easier for sample collection.

因此能夠在五天內寫出一份報告，讓樣本收集變得更加容易。

So a cheek swab or a buckle sample is something that is an additional product feature and then repeat expansion to help us drive a higher diagnostic yield and ensure that there doesn’t need to be any retesting.

因此，臉頰拭子或扣環樣本是一個附加的產品功能，然後重複擴展，以幫助我們提高診斷率並確保不需要任何重新測試。

So those features, we have put a pause on, but because of the strength of our performance, we’re really, really pleased to be able to be in a place where we can start as we said, reinvesting in genome and ensuring that we can continue to translate our leadership that we’ve enjoyed with 80% of clinical exome coming through GeneDx having that same sort of market leadership on the rapid whole genome side of things as well.

因此，我們暫停了這些功能，但由於我們的表現強勁，我們真的非常高興能夠像我們所說的那樣開始，對基因組進行再投資並確保我們可以繼續轉化我們所享有的領先地位，80% 的臨床外顯子組來自GeneDx，在快速全基因組方面也擁有相同的市場領先地位。

Yes.

是的。

The only other thing I'd add to that is just overall reducing friction in the customer experience.

我要補充的唯一一件事就是從整體上減少客戶體驗中的摩擦。

And the Epic collaboration is a prime example of that.

Epic 合作就是一個很好的例子。

We've heard loud and clear from, in particular, hospital-based physicians that the Epic ordering process and really important to their experience.

我們從醫院醫生那裡清楚地聽到，Epic 的訂購流程對他們的體驗非常重要。

And we want to meet customers where they are in that regard.

我們希望滿足客戶在這方面的需求。

And just to follow up on that, I assume Epic sort of a two way street.

為了跟進這一點，我認為 Epic 是一條雙向道路。

It’s ordering and results delivery.

它是訂購和結果交付。

Yes, yes.

是的，是的。

Okay.

好的。

Thank you very much.

非常感謝。

Mark Massaro, BTIG.

馬克·馬薩羅，BTIG。

Hey guys, congratulations on a solid quarter.

嘿夥計們，恭喜您取得了穩定的季度業績。

When I look at the Q2, I guess this might be for you, Kevin.

當我看到 Q2 時，我想這可能適合你，凱文。

The $69 million of revenue from continuing ops, that’s approximately $7 million or $8 million up sequentially.

持續營運帶來的 6,900 萬美元收入，比上一季增加了約 700 萬美元或 800 萬美元。

Can you quantify if there was any material contribution from prior period collections?

您能否量化前期收藏是否有任何實質貢獻？

Yes.

是的。

And the way I’d characterize that is that average reimbursement rate, the $2,800 that we cited is looking at resulted volume in the quarter as a function of revenue and the calculations there taking a historic look back in order to quantify the rate.

我描述這一點的方式是平均報銷率，我們引用的 2,800 美元是將本季度的結果量視為收入的函數，並透過回顧歷史來量化該比率。

And we continue to see overall improvements in collection performance, vis-a-vis a reduction in denials and we’ve seen that consistently over the past three quarters or so.

我們繼續看到追收績效的整體改善，而拒絕的情況有所減少，並且在過去三個季度左右的時間裡我們一直看到這一點。

And so those calculations used to derive revenue are continuing to be refined to pick up the improved performance.

因此，用於獲取收入的計算將繼續完善，以提高效能。

And so the way you see that is in the uplift in the overall rate there.

所以你看到的方式是整體利率的上升。

I think the $2800 or so is a good baseline to assume moving forward as a new baseline from which we’ll look to improve in future quarters.

我認為 2800 美元左右是一個很好的基線，可以作為新的基線，我們將在未來幾季尋求改進。

Okay.

好的。

And then when I look back the last couple of years, and I know that you guys underwent transformation and a management change.

當我回顧過去幾年時，我知道你們經歷了轉型和管理變革。

But the last couple of years, you had about 55% of revenue in the second half, obviously, $45 million in the first half.

但過去幾年，下半年大約有 55% 的收入，顯然，上半年有 4​​500 萬美元。

When I look at your guidance split this year, it’s 50-50 right down the middle.

當我查看你們今年的指導分配時，結果是 50-50 就在中間。

And that would sort of imply that like Q3 and Q4, if they come in flat with Q2 levels, you’re still going to come in above the high end of your guidance.

這在某種程度上意味著，就像第三季和第四季一樣，如果它們與第二季的水平持平，您的業績仍將高於指導的上限。

So I guess I’m really asking about seasonality and pacing and maybe walk me through how what could happen in Q3 or Q4 that could cause revenue to come in down sequentially from the Q2 level.

因此，我想我實際上是在詢問季節性和節奏，也許會引導我了解第三季度或第四季度會發生什麼，從而導致收入比第二季度水平依次下降。

Yes.

是的。

Maybe one way to think about it, Mark, is the revised guide still puts us at the low end there.

也許一種思考方式是，馬克，修訂後的指南仍然將我們置於低端。

Nearly $10 million higher than the previous high end.

比之前的高點高出近1000萬美元。

So we view it as a substantial increase in the guide, which should tell you our relative confidence on the business to continue its momentum.

因此，我們認為這是指南的大幅成長，這應該告訴您我們對該業務繼續保持成長勢頭的相對信心。

Overall seasonality, as we’ve always said, Q4 is typically the strongest of the quarters, with Q3 being particularly light given available days for physicians to have appointments.

整體季節性，正如我們一直所說，第四季度通常是季度中最強的，考慮到醫生可以預約的天數，第三季度的季節性特別淡。

And so certainly don’t want to signal any hesitancy with respect to continuing on our growth path.

因此，我們當然不想對繼續我們的成長道路表現出任何猶豫。

We think the guide uplift was meaningful and should be read that way.

我們認為指南的提升是有意義的，應該這樣解讀。

The third quarter is expected to come in a little bit lighter than the second in terms of seasonality and then the fourth quarter on top of that.

就季節性而言，第三季預計將比第二季稍微淡一些，然後是第四季。

I’d say all of that within the context of we’ve wanted to leave room in the guide throughout the year with respect to any decisions we might make on the non-exome portion of the portfolio as we continue this effort to rationalize and optimize test offering.

我想說的是，我們希望全年在指南中為我們可能對投資組合的非外顯子組部分做出的任何決定留出空間，因為我們繼續努力合理化並優化測試產品。

And so the guide allows some room to absorb if we make any of those decisions.

因此，如果我們做出任何這些決定，指南都會留出一些吸收的空間。

Okay.

好的。

That’s helpful.

這很有幫助。

And then maybe the last question for me.

也許是我的最後一個問題。

You guys are clearly knocking on the door of profitability and coming in at $2.7 million adjusted net loss.

你們顯然正在敲響獲利之門，並獲得 270 萬美元的調整後淨虧損。

I think for people listening on the line, I think, would you mind just reminding us that your definition of profitability would be to an adjusted net loss of either breakeven or slightly up?

我想，對於在線收聽的人來說，您介意提醒我們，您對盈利能力的定義是調整後的淨虧損達到盈虧平衡或略有上升嗎？

Or is it some other definition?

還是其他定義？

Because it seems like there is an opportunity to potentially get there sooner than 2025.

因為似乎有機會在 2025 年之前實現這一目標。

But maybe just walk me through some of the incremental spending you have in the back half and how we should be thinking about your definition of profitability.

但也許請讓我了解一下您在後半段的一些增量支出，以及我們應該如何考慮您對獲利能力的定義。

Yes, the right definition there being like-for-like with that adjusted net loss of $2.7 million we posted in the second quarter here.

是的，正確的定義是我們在第二季發布的 270 萬美元的調整後淨虧損。

And that’s adjusted really to take out noncash items, depreciation, amortization, share-based compensation and any nonrecurring onetime item.

這實際上是為了剔除非現金項目、折舊、攤提、基於股份的薪酬和任何非經常性一次性項目而進行調整的。

The second part of your question, Mark?

馬克，你問題的第二部分？

Yes, it was.

是的，確實如此。

Obviously, if you keep doing what you’re doing, you have a chance to get to profitability before 2025.

顯然，如果你繼續做你正在做的事情，你就有機會在 2025 年之前實現盈利。

So I’m just trying to think about what type or incremental level of spending do you have contemplated in the second half of this year that -- because you’re, call it, $3 million away from your goal.

所以我只是想思考一下您在今年下半年考慮的支出類型或增量水平 - 因為您距離目標還差 300 萬美元。

So I’m just trying to understand what you have planned for OpEx in the back half of this year that could keep your profitability out to $25 million.

所以我只是想了解一下你們今年下半年的營運支出計畫是什麼，這可以讓你們的獲利能力保持在 2500 萬美元。

Yes.

是的。

Look, I think you’re thinking about it the right way.

聽著，我認為你的思考方式是正確的。

We provided the guide on gross profit of 60% or higher.

我們提供了毛利60%或更高的指導。

We outperformed that in the second quarter here with 62%, would expect fairly stable gross margin profile for the remainder of the year.

我們第二季的表現優於 62%，預計今年剩餘時間毛利率將相當穩定。

And like I said in my prepared remarks, I think that OpEx has really leveled out.

正如我在準備好的發言中所說，我認為營運支出確實已經趨於平穩。

And so if the business were to continue on its top line growth trajectory, which we expected to were imminent with respect to the next couple of quarters having one of those hit that point of breakeven.

因此，如果業務要繼續保持其營收成長軌跡，我們預計在接下來的幾個季度中，其中一個季度將達到盈虧平衡點。

Great.

偉大的。

Thanks for the time.

謝謝你的時間。

Dan Brennan, TD Cowen

丹布倫南，TD·考恩

Great.

偉大的。

Thanks for the questions.

感謝您的提問。

Congrats on the quarter.

恭喜本季。

Maybe just on denial rates.

也許只是拒絕率。

Can you just reflect what they were in Q2, Kevin, I know you said you made progress on it, but I know you’ve talked about a still meaningful opportunity to close those.

你能反映一下第二季度的情況嗎，凱文，我知道你說過你在這方面取得了進展，但我知道你已經談到了一個仍然有意義的機會來完成這些。

And maybe in that context, could you speak to how the progress with state Medicaid coverage plays into that?

也許在這種情況下，您能否談談州醫療補助覆蓋範圍的進展如何發揮作用？

Yes, Dan.

是的，丹。

I think the denial rate slightly less than 50% of all tests now being denied with a fairly equal split between the commercial insurance portfolio and Medicaid, but for vastly different reasons on those denials where we’ve seen nice reduction in denials.

我認為現在被拒絕的所有測試的拒絕率略低於 50%，商業保險投資組合和醫療補助之間的比例相當相等，但由於這些拒絕的原因截然不同，我們看到拒絕的情況明顯減少。

As you can imagine, on the Medicaid side is on the heels of the momentum in various states picking up coverage for exome and/or whole genome sequencing.

正如您可以想像的那樣，醫療補助方面緊跟著各州擴大外顯子組和/或全基因組定序覆蓋範圍的勢頭。

What we tend to see is that when a Medicaid program picks up coverage, this fairly clear medical necessity guidelines, administrative guidelines and therefore, predictable behavior with respect to adjudication of claims.

我們傾向於看到的是，當醫療補助計劃獲得承保時，這種相當明確的醫療必要性指南、管理指南以及因此在索賠裁決方面的可預測行為。

And so it’s a matter of policy becoming effective, working out some initial kinks operationally, but then we tend to see a much lower denial rate and something far more predictable.

因此，這是一個政策變得有效的問題，在操作上解決了一些最初的問題，但隨後我們往往會看到更低的拒絕率和更可預測的事情。

Within the commercial insurance portfolio, almost the opposite, whereby many payers have some published criteria, but then we’re still subject to individual claim adjudication, subjectivity with respect to meeting administrative requirements and/or medical necessity.

在商業保險組合中，情況幾乎相反，許多付款人都有一些公佈的標準，但我們仍然受到個人索賠裁決、滿足行政要求和/或醫療必要性方面的主觀性的影響。

And so we’re attacking the problem by ensuring that we can retrofit payer-specific workflows upfront very different experiences, but slightly less than half of all claims being denied at this point, which is significant progress from where we were at this point a year ago.

因此，我們透過確保能夠在截然不同的體驗之前改造付款人特定的工作流程來解決這個問題，但此時被拒絕的所有索賠略少於一半，這與我們目前的情況相比是顯著的進步一年前。

And in terms of the 14 Medicaid states where you have approval, have you baked in any more expectation for further coverage expansion within your guidance for 2024?

就您已批准的 14 個醫療補助州而言，您是否對 2024 年指導範圍內進一步擴大覆蓋範圍抱有更多期望？

We tend to look at it is to count it once enacted and published publicly.

我們傾向於看它一旦頒布並公開發布就算它。

And I think the uncertainty in the way in which states need to take up the issue individually subject to political and other bureaucratic and fiscal means within the state makes it really hard to predict.

我認為，各州需要以何種方式單獨處理該問題，並受制於該州內部的政治和其他官僚和財政手段，這一不確定性使得難以預測。

So we’re not in the business of predicting, which states will come on next and only incorporate into the guide those states and coverage decisions that we have direct line of sight to.

因此，我們不負責預測接下來會出現哪些州，並且只將我們直接關注的那些州和覆蓋範圍決策納入指南中。

Got it.

知道了。

And maybe just staying on that theme, like the biomarker bills, have they had much impact yet.

也許只是停留在這個主題上，就像生物標記法案一樣，它們已經產生了很大的影響。

Obviously, there’s enthusiasm for what could happen, but just kind of wondering what kind of progress, if any, you’ve seen from payers kind of starting to pay in those states.

顯然，人們對可能發生的事情充滿熱情，但只是想知道這些州的付款人開始付款會帶來什麼樣的進展（如果有的話）。

Yes, we are seeing a direct impact of biomarker bills and then Medicaid coverage coming online.

是的，我們看到了生物標記物帳單和醫療補助覆蓋範圍的直接影響。

And it’s the product of patient advocates, our team and market access, policymakers, thought leaders all coming together to take a look at the problem that these states are facing.

這是病患倡議者、我們的團隊和市場准入、政策制定者、思想領袖齊心協力研究這些州面臨的問題的成果。

And so there is a really nice correlation between it.

因此，它們之間存在著非常好的相關性。

We see other states where they’re going right to medicate coverage without a biomarker build, but there is a correlation, including recently here in Connecticut.

我們看到其他州在沒有建立生物標記的情況下就直接進行藥物覆蓋，但其中存在相關性，包括最近在康乃狄克州。

Got it.

知道了。

And maybe one more just on whole genome since you kind of seem to be an increasing focus now.

也許還有一個關於整個基因組的問題，因為你現在似乎越來越受到關注。

Can you remind us like how big is whole genome today for you within that genome, exome split?

您能否提醒我們，今天的整個基因組在基因組（外顯子組分裂）中有多大？

And to the extent genome does really pick up here, what kind of impact could it have on your business from a revenue margin standpoint?

如果基因組確實在這裡發揮作用，那麼從收入利潤率的角度來看，它會對您的業務產生什麼樣的影響？

So no impact on our 2024 the percentage, we have not broken it down between exome and genome, but a small, small percentage, though, in terms of the business, small, but growing rapidly, right?

所以對我們2024年的百分比沒有影響，我們沒有把它細分為外顯子組和基因組，但是很小很小的百分比，雖然就業務而言，很小，但增長很快，對嗎？

So as we think about 2025, I think that’s where to see that it will really be a greater focus by way of volumes, by way of revenues, and we’ll put some thought into gross margins as well on that.

因此，當我們考慮 2025 年時，我認為從銷售和收入角度來看，我們確實會更加關注這一點，我們也會對毛利率進行一些思考。

Okay, great.

好的，太好了。

Congrats.

恭喜。

One thing to note Dan, is Texas, actually, their Medicaid actually skipped exome and went directly to genome.

需要注意的一件事是，丹，德克薩斯州，實際上，他們的醫療補助實際上跳過了外顯子組，直接進入了基因組。

And I think that, that’s really an important flog that they’re planting.

我認為，這確實是他們種植的重要鞭子。

We’re not going to be moving forward in a genome world if it’s not going to be reimbursed.

如果不得到補償，我們就無法在基因組世界中前進。

And so making sure that we continue to tie back our strategy to ensuring our services is get paid for is something we’re going to continue to have a lot of discipline on, but I think that, that’s a really interesting one to take a look at, and we’ll keep our eyes open to see if other states might also think about leapfrogging over exome straight to genome.

因此，我們將繼續嚴格遵守我們的策略，確保我們的服務得到報酬，但我認為，這對我們來說是一個非常有趣的事情。顯子組直接跨越到基因組。

Yes.

是的。

And the pivot there is more to say, we’ll be ready for that, right?

關鍵還有更多要說的，我們會為此做好準備，對嗎？

If you go back to January 2023, we changed the name of the company to GeneDx and intentionally picked our ticker symbol as WGS knowing there was a day where we’d be leaving towards an exome and genome only backbone.

如果你回到 2023 年 1 月，我們將公司名稱更改為 GeneDx，並特意選擇我們的股票代碼為 WGS，因為我們知道有一天我們將轉向僅外顯子組和基因組的骨幹。

Great.

偉大的。

Sounds good.

聽起來不錯。

Thanks, Kevin.

謝謝，凱文。

Thanks katherine.

謝謝凱瑟琳。

Matt Sykes, Goldman Sachs

馬特·賽克斯，高盛

Hey good afternoon.

嘿下午好。

Hey Katherine, hey Kevin.

嘿凱瑟琳，嘿凱文。

Thanks for taking my questions.

感謝您回答我的問題。

Congrats on the quarter.

恭喜本季。

Kevin, if I could just start out, you made some comments about reducing cost per test.

凱文，如果我可以開始的話，您對降低每次測試的成本發表了一些評論。

You made great progress there.

你在那裡取得了很大的進步。

Is there any way you can kind of help quantify what those changes in cost per test have been historically or maybe on a quarterly basis, just to give us some context what progress you’ve made.

您是否可以透過任何方式幫助量化歷史上或每季每次測試成本的變化，以便讓我們了解您所取得的進展。

Yes.

是的。

Maybe one way to think about it is if you go back to this quarter 2021, when Katherine joined the company, and I think it’s fair to say we nearly have the cost per test on exome in that period of time, predominantly coming from wet lab process improvements fairly modest impact, but appreciative of some lower input costs from manufacturers, but much of those improvements coming in the form of automation and process improvements that we were able to introduce into the laboratory.

也許一種思考方式是，如果你回到 2021 年這個季度，當凱瑟琳加入公司時，我認為可以公平地說，我們在那段時間的外顯子組每次測試成本幾乎為零，主要來自濕實驗室製程改進的影響相當有限，但對製造商的一些較低的投入成本表示讚賞，但其中大部分改進以我們能夠引入實驗室的自動化和製程改進的形式出現。

Certainly, we’re seeing the benefit of scale with more volume come some scalability and efficiency gains on a cost per test basis.

當然，我們看到了規模更大的好處，以及基於每次測試成本的可擴展性和效率提升。

We’ve made good progress in reducing dry side costs that being analysis interpretation, abstracting, report writing, but those processes are still fairly manual, and we have a large dedicated differentiated team there.

我們在降低幹端成本（分析解釋、摘要、報告撰寫）方面取得了良好進展，但這些流程仍然相當手動，而且我們在那裡擁有一支龐大的專門的差異化團隊。

But that’s where we see a major opportunity in the next year to three years in further reducing costs as we scale to be able to further deliver margin expansion via cost per test reduction.

但這就是我們在未來一年到三年內看到進一步降低成本的重大機會，因為我們能夠透過降低每次測試成本來進一步擴大利潤率。

Got it.

知道了。

And then just on the cash burn guide which you brought down, I’m just trying to square that guidance change with the comments you made about leaning into investments.

然後，就您撤下的現金消耗指南而言，我只是想將指南的變化與您關於傾向於投資的評論進行調整。

So I’m just wondering where that cost savings is coming from, I don’t know if it’s legacy test portfolio and supporting those tests or other areas.

所以我只是想知道節省的成本來自哪裡，我不知道它是否是遺留測試組合併支援這些測試或其他領域。

But maybe just help me square the leaning into investments with the continual reduction in cash burn that you’ve shown.

但也許只是幫助我將投資傾向與您所展示的現金消耗的持續減少結合起來。

Yes, a few different areas to think about there certainly exome cost per test, like we spoke about, we’ve been able to drive meaningful margin expansion both from COGS reductions, but as well as increased average reimbursement rate, therefore, expanding gross profit.

是的，需要考慮幾個不同的領域，每次測試肯定存在外顯子組成本，就像我們談到的那樣，我們已經能夠通過銷售成本的降低以及平均報銷率的提高來推動有意義的利潤成長，因此，毛利率的成長利潤。

I’d say ancillary to improvements we’ve made focused on exome.

我想說的是，我們針對外顯子組所做的改進是輔助的。

We are seeing improved gross margin on the non-exome test that remain.

我們看到剩餘的非外顯子組測試的毛利率有所提高。

We’ve gone through a fairly extensive exercise over the past year to retire tests that were lower value clinically to physicians and patients, but also drags on gross margin.

在過去的一年裡，我們進行了相當廣泛的行動，以淘汰那些對醫生和患者來說臨床價值較低、但也拖累毛利率的測試。

We’ve retired those tests, the bulk of the other panel line that you’ll see in our volume split in the release is Chromosomal Microarray.

我們已經取消了這些測試，您將在我們的版本中看到的其他面板系列的大部分是染色體微陣列。

And that test along with the hereditary cancer line, we’ve been able to expand gross margins nicely over the last year.

透過這項測試以及遺傳性癌症系列，我們在去年已經能夠很好地擴大毛利率。

I’d say those were somewhat a byproduct of the improvements we’ve made through our processes to benefit exome and genome.

我想說，這些在某種程度上是我們為使外顯子組和基因組受益而進行改進的副產品。

But nonetheless, we’re seeing good margin expansion in those test offerings.

但儘管如此，我們還是看到這些測試產品的利潤率出現了良好的成長。

From an OpEx standpoint, we’ve really built muscle memory throughout this organization to find ways to get more efficient to look at process to use technology, and we’re going to continue to do that.

從營運支出的角度來看，我們確實在整個組織中建立了肌肉記憶，以找到更有效地查看技術使用流程的方法，並且我們將繼續這樣做。

So I do expect that in the coming quarters, that adjusted net loss or net income will pretty closely conform to our cash flow on a quarterly basis.

因此，我確實預計在未來幾個季度，調整後的淨虧損或淨收入將與我們的季度現金流非常接近。

I did call out, of course, two large lumpy items.

當然，我確實喊出了兩個大塊狀的東西。

December will be $10 million for the payer settlements that Semafo signed in 2022 and then potentially making that $13 million net payment on the litigation settlement.

Semafo 於 2022 年簽署的付款人和解協議將於 12 月支付 1,000 萬美元，然後可能會在訴訟和解中支付 1,300 萬美元的淨付款。

So that might help bridge the cash burn guide to our current run rate on adjusted net loss.

因此，這可能有助於將現金消耗指南與我們目前調整後淨虧損的運作率連結起來。

Got it.

知道了。

And if I can just ask one more, Katherine.

如果我可以再問一個問題，凱瑟琳。

Just following up on one of Dan’s questions.

只是跟進丹的一個問題。

Do you believe that sort of what you guys have achieved so far in whole exome and sort of the growing acceptance from payers plus the biomarker bills, do you think that’s a fair assumption to assume that when acceptance for whole genome, we get closer to that, that, that mix shift could actually progress even more rapidly than what you’ve done with whole exome because exome is kind of paved away.

您是否相信您迄今為止在全外顯子組方面所取得的成就以及付款人日益增長的接受度以及生物標記物賬單，您是否認為這是一個合理的假設，假設當全基因組被接受時，我們就更接近了對此，這種混合轉變實際上可能比你對整個外顯子組所做的事情進展得更快，因為外顯子組已經被鋪平了。

I mean you mentioned the example with Texas skipping over exome go to genome.

我的意思是你提到了德克薩斯州跳過外顯子組進入基因組的例子。

I’m just wondering what your thoughts are on the future of the pace of whole genome acceptance going forward relative to what you experienced in whole exome?

我只是想知道，相對於您在全外顯子組中經歷的情況，您對全基因組接受速度的未來有何看法？

Yes.

是的。

I think as I said, the Texas flag that they planted, I think, was really encouraging to us in terms of where this market is going.

我認為，正如我所說，他們插上的德克薩斯州旗幟，我認為，就這個市場的發展方向而言，對我們來說確實是鼓舞人心的。

We have debates routinely about is it exome, is it a genome and making sure that providers are ready to order the test that we’re offering.

我們經常爭論它是外顯子組還是基因組，並確保提供者準備好訂購我們提供的測試。

So I do think that an important element of it is most definitely the policy to support payment for it.

所以我確實認為其中一個重要因素絕對是支持支付的政策。

There’s still a lot of education that we need to do on exome and genome more broadly in terms of the benefits by way of faster turnaround times, more comprehensive answers.

我們仍然需要對外顯子組和基因組進行大量的更廣泛的教育，以了解更快的周轉時間和更全面的答案所帶來的好處。

So there’s still, I would say, an important educational mission that we have to continue to drive in order to realize the opportunity for exome and genome.

因此，我想說，我們仍然必須繼續推動一項重要的教育使命，以實現外顯子組和基因組的機會。

But I do think that once payers and policymakers start lining up behind a technology that we will see a faster clip of adoption there.

但我確實認為，一旦付款人和政策制定者開始支持一項技術，我們就會看到更快的採用速度。

So all really important in terms of being able to lay the groundwork for us.

因此，就能夠為我們奠定基礎而言，所有這些都非常重要。

We’re fortunate, as I said, 80% of exomes come through GeneDx and we have, we are making ourselves synonymous not just with exome, but with genome.

我們很幸運，正如我所說，80% 的外顯子組來自 GeneDx，我們不僅使自己成為外顯子組的代名詞，而且使自己成為基因組的代名詞。

And so we intend to be that market leader regardless of whether a provider or a payer wants to be covering exome or genome we will be the leader in either one of those spaces.

因此，無論提供者或付款人想要涵蓋外顯子組或基因組，我們都打算成為市場領導者，我們都將成為這些領域中任一領域的領導者。

Thank you very much.

非常感謝。

That concludes today’s question-and-answer session.

今天的問答環節到此結束。

I’d like to turn the call back to Katherine Stueland for closing remarks.

我想將電話轉回給凱瑟琳‧斯圖蘭 (Katherine Stueland)，讓其致閉幕詞。

Thank you so much.

太感謝了。

We appreciate everyone joining today and look forward to seeing you hopefully in the near future at a conference.

我們感謝今天加入的每個人，並期待在不久的將來在會議上見到您。

So have a good safe rest of your summer.

所以祝你有個安全的夏天。

Thank you.

謝謝。

This concludes today’s conference call.

今天的電話會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。