NeoGenomics (NEO) 23 Feb 232022 Q4 Earnings call transcript

Good morning. Welcome to the NeoGenomics Fourth Quarter and Full Year 2020 Earnings Conference Call.

As a reminder, this call is being webcast live and recorded, and there will be references to a slide presentation in conjunction with remarks. Because there is a short delay between the live telephone audio and the presentation being shown on the webcast, for the best experience, please either use the webcast for both the audio and video content or if you're dialed in by phone, please download the slides on the Investor Relations site at www.ir.neogenomics.com, and advance the slides yourselves.

I will now turn the call over to Chris Smith at NeoGenomics.

morning, good and Paul, everyone. Thanks, welcome I'd quarter the fourth to conference like call. to XXXX NeoGenomics' you

Joining this newly-created Officer; Service Operations. Vishal Warren me Chief President Division; Sikri, our for Stone, President President call and are Melody of of our our of Advanced Harris, Division; Sherman, Diagnostics Clinical Jeff Enterprise Financial

begin we non-GAAP Jeff used this for remarks, measures the discuss Before will prepared call. our and forward-looking Jeff? statement

operating could statements forward-looking growth conference our and initiatives, XXXX such forward-looking includes outlook, is materially and anticipated results statements. This financial to opportunities and in differ statement XXXX about results those Each cause performance. risks call projected to from subject uncertainties actual that

the statements issued the call Exchange section for the under report heading obligation be and factors Commission. Additional revise information filed will XX-K to Statements risk in date update of forward-looking on regarding in Form December original only ended Forward with the these speak we the Risk the morning our these call or this and The release annual Factors undertake that in statements. XXXX XX, appears of we and this no Securities year as during Looking any the made of press

measures The available press the measure comparable are other an order companies. to financial to in by required directly are financial referenced addition, to certain considered issued performance, morning. financial results. the comparable by transparency we financial adjustments release measures liquidity, GAAP should In non-GAAP a non-GAAP measures involve be and to of measures this non-GAAP call refer presented most provided the table reconciled to on not be financial this call, considered in this we non-GAAP during regarding financial conference GAAP unlikely be not GAAP, to Any be in to to greater should provide our operating alternative measures measures that

per the to hour has person more give that to ask of people that been in Please to this number a one going one to for be we the are chance call. questions allotted limit advised order within questions

Jeff. Thanks,

call, the in I year and before the today's then provide the to quarter And financial review fourth detail discussing for me fourth call quarter On back focus our guidance call. areas then, We'll and key our begin up XXXX. Jeff operating the turning share XXXX for goals line to full will will we open Q&A conclude results. of by as and

want or If before global organization do every all on in thank so call, teammates investor, the mission, an to a many at you single motivates it's customers, daily because transform our patients' basis. our love I the lives. for it's drives just what we all with to our it's dive to even way teammates And our look presentations, they our I whether start our day all and

Turning $XXX revenue This quarter X% the significant on our of and Services some note over growth. Clinical to XX% by a to the last Slide X. business sequentially, and in was a up show fourth Service quarter a was of million, fourth Revenue increase as began increase high row operating strategic year sequential also of results. We Pharma initiatives finished XXXX driven our business. in both recovery

driven These profit lower last both loss higher year in improvement operating improvements expenses $X was $XX improvement and gross margin business. XX.X%, consecutive quarter. an per operating were saw both EBITDA by leverage was the gross gross of adjusted representing seventh and highlights we prior significant Adjusted from quarter, from the Adjusted million, year the a In which significant sequentially. was QX and the million. for in revenue this an test profit

Services Division; joined We Jeff quarter Sherman President CFO; Stone our Harris us us joined Melody Warren as as finished the and as Clinical in joined Operations. team building out of President our as executive Enterprise of

this will approximately restructuring that revenue we We business. organizational operating growth. believe the initiated process, in an to helping integrating $XX result including savings, million accelerate while Inivata reorganization us Finally, of annualized

I will sales strategic income right the savings sustainable cycle flow that through investing management, to invest as in This in drive in we optimization as continue to well not investing RaDaR, all of and initiatives note as strategic the revenue including would R&D includes efforts. growth. our these in priorities, strategic investing long-term the statement commercial expansion force,

investing drive business are customers. efficiencies turnaround we the for help addition, and as in in our In to improving our as well patients automation times our

X. Slide to Turning

million, X% adjusted was gross versus For up million. $XXX year an Adjusted Adjusted million, revenue. margin results, loss gross full profit increase Clinical and $XXX an to prior XX%. by $XX of Pharma was year XXXX EBITDA driven representing the revenue was both in

During served over of the to mission over is the had and patients order, year, million test we XXX,XXX testament a X which company. the

have shown revenue, accelerated the throughout in gross improvements on year. that EBITDA. profit, consistent the of quarter continued our I'm Now has quarter Slide and adjusted growth throughout X. XXXX we revenue the pleased each adjusted profit trend margin sequential adjusted fourth gross Notably,

throughout improvement pleased operating of in some XXXX have we to continue that our believe the year While are to beyond. initiatives have with the in ability the improvements taken and drive hold, the we shown as we business

up panel mix even Service of Turning test continued Revenue results. value over fourth towards the higher Revenue a larger X and volume we and XXXX. highlighting and as quarter Clinical shift and increased increased the saw to Slide X.X% tests. was per the X% X.X%,

pleased some pay are of made the We we investments the that to year the are in off. that field in resources beginning earlier

focus second that driven X. the modalities record the quarter Performance growth was represented with quarters, Slide showing timely prioritization in XX% year. revenue in prior a of QX Pharma over revenue ensuring and recovery higher-margin QX to the to manner. in by XXXX. strong Both fourth to was addition to a project half like lab NGS, able on Service deliver moving Turning showed

growth prior performance highlights for with expect RaDaR of data XXX% in growth value and conferences, Pharma strong in presented sets the key other we year. fourth RaDaR growth from RaDaR over seeing into strong as continue XXXX. especially saw at ASCO and This quarter the We the we of

division delivered a well the from solid Informatics year. revenue driven of by as prior over XX% the record quarter revenue Lastly, growth

I our more to to financial results will turn Jeff over now discuss in the detail. call

Thanks, Chris.

very excited to and join the I'm growth long-term NeoGenomics advance mission and to drive help sustainable company's profitability.

the Turning and pricing with strong volume clinical driven mix XX. quarter. improving year improving was growth financial results growth finished to test of business. XX.X% in our performance and X.X% Slide the revenue by improvements complexity We fourth accelerating of tests, Revenue growth and higher of in Pharma

to over the of XX.X%, sequentially, adjusted excludes operating reducing points basis our growth revenue expense, quarter demonstrates the adjusted while revenue gross of test. was year. EBITDA with with by Adjusted gross the falling XXX and growth leverage cost Inivata-related to generate The Adjusted amortization gross basis per an points which also improvement XX%. the most was business profit margin our gross GAAP gross also over fourth in performance last margin, margin ability margin XXX QX improved lines. adjusted of

to from operating This million, to increased Sales $XX.X now year-over-year expense from to $X.X quarter-to-quarter. revenue or commissions due million fluctuate category X.X% growth. by Turning expense some primarily will marketing the higher expenses. and

basis, million. G&A costs $X.X X.X%. year-over-year $XX.X to or sequential decreased a or by decreased On million G&A by million X.X% $X.X

strategic spend fourth an reorganization As and quarter effort in of G&A our execution Chris optimize the our noted, enable priorities. we started to a in

we which forward, to in plan, driving has well operating regard initiatives operational Therefore, been With will annual prior longer Catalyst-specific discussed updates. focused efficiencies are our are Catalyst, going they and primarily provide those been financial into have quarters, and on underway. built no

operating negative drove and $X.X both in The and improvement a the and million million expenses and In EBITDA $XX.X increase quarter, in a was from in the profit EBITDA adjusted last significant adjusted $X.X quarter. year sequential versus million last improvement decrease improvement gross a basis. year-over-year on

fourth sheet marketable cash Turning We XX.X Slide securities. the to days XXXX. in DSO balance in improvement the the with each million quarter XX. quarter in at on and year $XXX finished with exited

position and the and to financial financial the invest objectives. our provides continue to us strong strategic financial flexibility in business achieve Our

operating and turning priorities. Now XXXX our to guidance

Slide XX. to Turning

year full expect For to million, X% we of $XXX revenue to $XXX X% growth. the XXXX, million representing

million business EBITDA the $XX a to work in we to $XX continue profitability. to negative to drive negative as back Adjusted million,

be to in positive fourth the of EBITDA XXXX. quarter expect adjusted We

to business, we our providing are for do quarterly guidance we annual of given guardrails the to some and expect providing guidance be provide in not While wanted seasonality the the quarter. first future,

been the end fourth our deductible screening typically in the The and has quarter year. health at patients visits as increased years plans high of strongest their recent

Our Pharma the ramp also clients up year as progresses. spending tend to

year-over-year QX. to X% While growth versus will see be QX revenue prior we we the in X% to of down from sequentially year, expect

of improvement from expect also adjusted We EBITDA -- last QX year. to over see

revenue will drive growth will on structure, our our EBITDA our leverage cost revenue growth exceed adjusted this Based operating and growth.

in to continue business to efficiencies, focused be we driving to will While our on also invest operational the will future opportunities. we growth expand continue

I will to turn our for to call now over XXXX. review the back priorities operating Chris

Jeff. Thanks,

Slide with marketplace can the competitive the to we am position and forward. progress our impressed going unique and business more spend in assets XX. the Turning more I time this business, The leverage in I advantage the to

in an the particular, market. In with with community deep share advantage significant volume our provide the us patient a in leader in of oncology testing with States. We the pathologists are United a relationships test

collaborative and data, relationships, us pathologists, to view and Our oncologists testing biopharma partner has as to patient primary we companies. allowed focus ourselves on a oncology extensive databases and develop

Jeff indicated, returning a us As we top-line drive has profitable growth meaningful while to should allow being believe to company. this

a XXXX Slide be April and we've overview much to more on XX. you into established a Day. to beyond. and how Investor of our for give at detail We want strategy We'll brief X organized business going the Moving

these of our to our we best we about business the and decided enterprise long-term business realign how into Advanced group to will Clinical This vision, in thought position As the the two take the support strategic of long-term Diagnostics developed success. unique well us units the as marketplace or advantage division division. Services our The divisions, support two operation will divisions. optimization to as allow

Also, Clinical and on engagement Functions structured patient and core oncology or clinical commercial client portfolio business revenue decision our which core our execution. division sales, used by optimization be to will maximize and The oncology this pathology focus and is diagnostics profitability the group within enhancing Trapelo. business, growth to Service include community-based experience. called base support, it or

future tip a MultiOmyx as Functions evaluating the RaDaR, as spear that data former informatics, industry, products the and which MRD and Services, division R&D, this NGS market as well for centralized our renewed Diagnostics help position leadership for in Advanced market. and believe responsible the This developing is in focus of driving business. is Pharma innovation its the will oncology we and capture technologies NeoGenomics commercialization. technologies in such Inivata division trends maintain on The means include

capitalize to The operation innovation of us This units and Inivata laboratory key new of of enhancing on focus enable centralized end-to-end R&D process delivery development new the is products. while for function will the diagnostic to and facilities. enterprise services group test supply services, in the from all regulatory chain, Functions quality delivery. support technology, services, report in include order way information both and laboratory through this business excellence, group data operational of

XX. Turning to Slide

we profitably accelerating growing our few strategic our to buckets: and improving into broadly years people and As four the core they key business, diagnostics, look culture, enhancing next our advanced profitability. priorities, fall and

critical We NeoGenomics and this culture our to success. is have our a enhance strong long-term to team at great team continuing mission-driven and

visible outside this do the key basis. everything is of on work day-to-day a organization, be we a won't much operationally to foundation While the

initiative look to organization, in the we In growth, our force. accelerate as key oncology XXXX will sales expanding the optimize field be a business, including to Clinical

focus We points all addressing end-to-end systematically client touch patient the improving process. experience on the and improving customer will and

operational me, and be will through a efficiency focus including on excuse automation. there deep addition, -- turnaround In times

in in a and activity our With we the excited look as XXXX the strategy Diagnostics RaDaR Neo database. enterprise developing on businesses, we data profitability. the QX focus Coming QX formation as XXXX market-leading of are new patient The Pharma in and our in of offering. will Informatics continued extensive four growth division, improved to realization a and on for with team started capitalizing well specific strong off Comprehensive, drive product NGS especially our launches Advanced for about indications

we as Finally, growth on each we plans these will of work divisions, execute to improved profitability. the within drive

and productivity and our as increasing our managing spend. SG&A by this do well will as efficiency R&D We

the controls addition, growth. business cost we drive enhanced long growth make strategic revenue focus the this in will focus In drivers. to Despite on help on management will believe we cycle these intense -- profitability, continue support profitable long-term term and an to investment

year. summary, quarter significant pleased In we that the the amount in progress are we by of throughout the and made fourth

we full-service that I to of a diagnostics our market XXXX have lies position look do, what we work in in still lot we a our We to returning believe in put reference the sharing growing quarter excited between the front sustainable digits place to unique believe and that companies. primarily profitability NGS-only places have about labs in high-single long-term am While Paul? for large us forward of foundation first progress in on and and us call. growth.

Thank the Nowak for first we line And you. questions. Instructions] like from from At is point, today the to Craig-Hallum. is live. line Alex your question this Alex, open would coming [Operator

right. everyone. All Hey, Good great. morning,

places going So, on sales the ask I a we stuff on of yes, could ask on. lot first want a questions of to organization. this here, lot one

that core sales to force higher growth they're business the be to and the makes in as going split here to products, going they're selling forward, ensure the going but be advanced still selling just going well? diagnostics think I the organization focusing to But structured is also be how sense. on the

give Yes. separate to have overview, I'll director. add difference two been are look, call together because little points, but organizations color they Thanks, then on plan. I'll the to sales going Warren just But same will and Alex. in our view quick exact since the of working regional we a is maybe a report that more have we've

in So, and to capitalize on able partnerships. being synergies pause about think to be

really In one been really where RaDaR, think offered pathologists. even there's of haven't things done we've there. that incredible NGS days focusing we there early spending full We been time our we with the oncology the all menu addition, side, opportunities. in cross-selling had discussions we and around the And on haven't

-- let -- let me NGS more some maybe a we're around on difference between But Warren the little focus how core give the going color the and to business.

Appreciate Chris. you, Thank that.

of two the the forces an pathologists director, are a and that's reporting two the single that clearly required separate So from points different, We higher oncologist sales to perspective. understand regional strategy. points oncologists certainly, touch touch

hence, the as expansion so And that's well. part of

think oncologist to that value with services expand our team market wrap imperative available team for us they increased sales to were portfolio our has to drive able I it's amount segment. to and also to the them of sales the oncologist the provide obviously

right Yes. And Alex, that on expansion is going now.

expand we don't -- I group. sales we've that that number, but positions So, several, for have exact the think several disclosed recruiting to we're

one. to I will Okay. you. it keep Thank

right. Thanks. All

line Mark from question live. The Massaro is you. Thank next coming from your BTIG. Mark, is

are How doing? you Mark. Hey,

Chris. Hey, it How going? is

Great.

Congrats the on us the guess, and had sense some guys year, questions. know recovery the I challenges. the prior taking drivers you you I the can to volume for Thanks puts with here. just a give for of increase? of respect some the takes

lines on So perspective could where growth maybe maybe seeing of the you're some or through you walk from? product come some maybe high-level just the if

you of to that, to year, you're related company business Do think you you this X% the see pick in then, of about a seeing full is speak for X% you maybe that are specific? bit And Pharma just what some as the Or the if an think And areas the up? this industry think trend? is strength do more more could you little will Services?

all move try of look, I'll to you gene growth, answer one Look, are panel. -- single people quarter, QX a NGS of sell your unit about think the looked Well, to historically without from a parts up question. trying question. was Okay. I three business we that, intentionally We and give may And NGS. an results at think a at talked lot have into tests to I good it three

one I in saw reason mean, growth I to give say will saw in right, gross I this tests quarter move core into QX. up didn't you two really what also NGS, about was saw is nice revenue that both. but unit the fourth you good growth, that think giving And you're business we continue in the to and dollars. tests call and it would was while up to I you're talked just business. profit we we gaining you actually get volume, So, two three

lost Early in market believe the we year, we share.

happen, time seeing what move I that reps And segments. but middle I takes we some not look, and adding lost reps the we think think greater, traction. start year, entire the the field we through you're losing had I share with initial to year back. like oncology of it's of think six an and were get in certain moving of started it XX-plus That didn't account. And in months is expansion it. And going last maybe to ever new sales

So, I think that's one.

we'll sales base Pharma guidance businesses. been some also with if of think the saw through importance year start and a this and I I these and or those that's X% see both what portfolio fourth think our what the this a portfolio we core to been in underestimated. business we offering it's factor, the will all just Informatics is tests, in forces, times, believe a in both two it's especially manage business. it's pathologist Without -- for things. can look roll the to effect. year do but our won't X% of quarter throughout Look, you'll business, higher-value around probably that you as you in QX, And and really it from RaDaR effect at or growth question, be we this at NGS those the It perspective, but layering what levers. of happened believe also one And be year And we new is which key has out our the

and leader I discipline And we really right to half look, happened second some, how finally, a -- do group. governance is this I profitable on would we it's the shout and about identify partner think Pharma, that brought And year. customers, vision. we Vishal with to what of just into sales then putting And his a the to the right in real him think how say, do out look strong And in identify he started I test.

So, be where and the look, up And a going fourth much our opportunities company say job I as that in team don't was a business clients, RaDaR that are our an as know have it's deep the it's getting broad I of industry trend with that did menu. with we quarter, a taking advantage look, And testing in that's XXX%. why to would fantastic relationships. fair,

So, -- all. I think, I I I hope got them all got

Thanks, Yes. That's helpful. guys.

you. Thank right. All

the Thank from coming live. is line Brackmann from Andrew, you. question Andrew next Blair. your And William is

Andrew. Hey,

sort guys Chris, Hey, gauge of trying thanks are how given obviously, Hey, a the the in questions. model? But see just Maybe how taking moving just guys. improvement forward? expected Thanks. guide progression term of I EBITDA around doing? I'm the little are as for we to morning, leverage starting and you're there. incremental about that the you over bit guess, margins the that of sort sort Good about longer here, here, think on the the to term, the just intermediate of thinking you

Andrew, and level high have I'm Jeff. opportunity to going But leverage. business question, you you without a get the it throw let know just a Yes, to hit me this and look,

some decisions growth. we business to is there started we I think that rightsized look, tough as to really with the you had But And drive made. operating there. opportunity expense, the

the thinking more give me insight about maybe he's on some margins. let how have But you Jeff

we're think EBITDA $XX $XX you midpoint to of we're mean, expecting you guidance midpoint, our consistent Thanks, revenue Chris. the at adjusted growing and as million. if year. the at looking at our EBITDA see took and we're at looking guidance performance our then of And XXXX the I as adjusted million improvement throughout XXXX, I look guidance, Yes, revenue and

of pretty revenue getting conversion XX%. good almost we're growth, So, the

costs operating you business our improvements. improvement to a great can continue we throughout we cost in operating and growth think ability and leverage, incremental And can about the and into XXXX we and that top-line as improvement think And future, the think and think holding see and of to adding I generate seeing we as get about I revenue the leverage. do drivers margin example think generate was We margin QX both. revenue think

quarter. that be I said we So, in going formula will think EBITDA forward. the positive the We to expect fourth be

should throughout And similar progression so, saw the a we think you XXXX. as I in see year,

the that, talking of one we haven't thing way invested on Yes, Andrew, look, cycle just believe spent business, lot company just earnings. that you I And think where talk the about the unpacking a one in we're cycle whole of we've around heard built We're in because started initiatives other the still of that. of opportunity management, our time. just and we revenue around thing management, the me But about revenue we QX there's history the the resources. key this and

to do And but to to us that, margin also so, improvement. obviously drive is going look, that to it's going take help time continue

great. guys. Thanks That's

Thank you.

coming Puneet, The you. is Securities. Thank next line from is live. your Puneet Souda question from SVB

Thanks. Thanks, Chris, for taking the questions.

XXXX So, growth -- remind on there? the guide? time just was where of a us about for of about you and And should the from within could like NGS, context bit little to improvement AUP sort turnaround levels, that sort you would today be? talk we the you improvement where you the are guide can the the of what think how current within

we the specifics not growth. we question, in move of look, But have market. closer QX. excited are Look, I Thanks, that place into and say to very nice been seeing would Puneet. gone really have growth starting around the And out the without I we given it's behind historically We're we're a and NGS. modalities think Yes. where kind and market, the about

us kind continue aim move really big maybe because so side. a that's behind on and have gives But very about you to lead especially Neo the forward, for business our -- marketplace, as bit us which where we've tumor, of offering we lift launching be a our as Comprehensive, solid that in going think in QX, is we going little -- forward. offering I been think we we to NGS in competitive So, think a think

-- time... Yes. the What's turnaround other the oh,

AUP...

Yes.

again, the been journey. competitive. competitive. I with little again, quick real has We I Look, coming that I'm NGS. was in would time. bit a day, probably turnaround stated end the us of that turnaround I for time -- say the think, at marketplace on behind Look, the think to a our So, back new Neo Comprehensive will is with is goal I company, or outperform And days, as goal is is to whether think, -- our say with to look, patients or promise over investors deliver. and XX under that we is which a it's always, customers our

our days So be time stated -- but will XX out there.

look, moving. turnaround focuses fronts good has trends on key continued all So, be to comes one where to Melody's we in, going about she improve. and think time I it's of It's the but as feel

And AUP the to panels, that's revenue per per test. we're shifts then, see revenue higher finally, as drive helping test, complexity that on continuing to or business some

think revenue. We Chris management some cycle improvement, we And benefits we'll have year. almost expect one to bottom is of we falling is bigger finally, and are the continuing going noted, opportunities our see already revenue pricing that line. there drive typically as And to some be throughout to the the to to obviously, see further those XXX% of

right. quarter improvements. and Got Congrats the on it. All Thanks.

you. Thank

is from Tejas is Morgan you. live. Savant coming The your Thank from Stanley. line question next Tejas,

here. Hey, thanks guys. for Good morning, time the and

a just on guidance philosophy RaDaR So, big here. the on one then I'll picture and one ask

share there. recently of to Chris, to peers conversations One on really reimbursement, impact cetera? sort your got CRC? following conversation a or a your you perhaps generation noted your that Does with RaDaR, updates et strong in on of of your on terms Any strategy side. breast your the data CMS MRD So, -- timelines traction decision your Pharma

through one this guide. curious level, which can to Jeff, probably on going including color share a that are shift team, at any on assumption, of the to it's calibrate, you basis? go-forward NGS a is on -- mix numbers one just Can driving new your clearly baked the biggest factors you obviously then, conservatism perhaps so be high upside you've here to in And walk the a us for investors management

kind of the Yes, touch let NGS. going can Tejas, briefly, on first and the throw and that then Vishal the me it part I'm back Jeff then around stuff to come to of

market is good That's -- much it's really important. obviously, pretty test for think we differentiator disclosed. the our the publicly -- got I are now highly our these breast. big Look, believe we is what the that is where mean, Natera we sensitive in

launch breast industry for think But when indication is is in we really think next here by So, the significantly we traction it's the good marketplace in underpenetrated. we in us whole important in the industry getting out because month. an for the

thinking a how do and you Vishal, want little maybe add more to rollout around But color RaDaR you're about the and...

Yes. I going separate with we're four Chris mean, indications mentioned, rolling as out into QX.

in this getting a shows that's adoption going start Natera it I opportunities, the for indication, there So, think is help our With us. good and to out breast will marketplace. be really that CMS looking expansion at

a actually also very this good for we signal there. that there's sign more is the from practice a a as view perspective, this strong occurring adoption that So, clinical

in is know and publicly year, as of I Medicare. as of beat that of we at disclosed will indication as time And that other breast far think half in the one we've kind we're year as this year, colorectal the the Yes. lines, second first we submitting right, half the well want to where all be those

in But can think guidance, could we We negatively then, as guiding achieve that operating And think we're into look, through happen we've the investing We're on baked cost investments. have already, annual it force. about our sales We're technology. in also have savings RaDaR we plan. But making We're to that. that anything we factor in to as think try been in what talked we I realistically we're investing year. the investing our well. in

look approach so, at I to that, a think And as XXXX. it's I you think balanced

the quarter. improving I performance saw year think strong we finished and each

I better we to team But XXXX. think at and to realistic get would and committed go I achievable, we delivering say we're it. believe it's continuing it as looking through the is definitely

Yes.

that, focused, on really the long-term other that, sustainable thing this when Jeff think talks we're growth. Tejas, I about around

and year years it's about three So, what's not strong this happened. wondering earnings now, driving just from

the XX look from think like XX I is years five now. years years business of the had the business one from now, now, what's challenges from

talked script $XX years we is that rework, So, we this of picked a I of why really long-term sustainable million -- dividends we will that the being this see look, two, for from brick-on-brick now. growth. building And we'll want in in continually that's a three that and reinvested about the lot on to see up the

Thanks, Very guys. helpful.

you. Thank

is is Thank Piper David from you. your live. David, line Sandler. next Westenberg The question coming from

Hey, David.

on progress Hey, Chris. Thank congrats here. the of and lot a question really you for taking

with and So, kind I'm NGS molecular. going to of the stick the

where the historically, there has a the NGS color hotspot on the kind think a plus even conversion does kind that bit more And from even a about and NGS share to is how Comprehensive or kind was Can Or overall question, Are a of that little And is PCR? equation I you around Is it positive? is, more been maybe I of And business? purely And taking from looking? single kind taking kind of hotspot test conversion? gene small to to from? a Neo of long really of finally, about is testing taking this in just change Is then, some realize is then, so... can NGS we looking whole? kind that NGS really comprehensive? molecular of fraction this you that. Anything of then NGS whole as was business, XX% of molecular the as talk PCR there? on this maybe talk growing a

of getting try and That two parts it. into and on you to tag was, of the to then can into but okay, then team some to going I'll throw Vishal unpack insights it I'm the of deeper -- Warren, them that's David. it,

Look, about last to one share. I your think moving back coming

of where key on years, three, of think I the got take would think what over So, was we we NGS niche the lost about solid tumor challenges started I some these that's And service I this Neo, think off full by you really particularly I suites. did we especially share last if in oncology it to five happened offering And we potentially And our have one accounts. side. behind, a look, of think market. was, created as think testing specialty

things, think, this happened I Two year.

an we was brought the organization get them we'd we and summer, expanded oncology think we on one because RaDaRs field colorectal did. thought we group for in our I with originally and

to especially and that NGS group, the focus on QX pivoted in and oncologist. we start QX on So, had

So, for we was would that That we business winning before. have never, started example, a new had business.

are the I also if had share really of a on relationships market not we did I leader, one the we're say we market really where the we're pathology force existing heme. that going leaders But from people back gaining would NGS. think sight job lose sales and -- And accounts of our that nice on

think of And timeframe. key think things I And August-September lot so, a saw decisions strategic I the that well of coming because you lift. for those that's you maybe us where together saw started in the

of both to Getting them let Vishal into see I'm and and more of it some impact, kind forward Warren to Neo going of that kind to share and we Comprehensive the detail insights. how going throw

bit extremely coming little right? surrounding question see strong your if you It's trend (ph) also only look both to we Warren of that's about hotspot Yes. testing talk on are comprehensive more, is we that's solid these a perspective, impact, side. profiling, make the product even the movement comprehensive profiling. see the launching on areas a or the that [genomic] that side and tests out, side. launches, But And at that really what would the genomic continuing. say, more are heme basically I it And let I we're a that we'll but product to which quarter, tumor mean this single-gene

Yes. two factors. I -- say to other that And addition go before just I'd maybe Vishal, in

us a clients. overall, well reduction seen to we've moving First that on the in Neo also some things, clients solid tumor, heme foremost, side the really, where of and won forward. a lost, our of retained play new so going number weakness done on clients. We've we've really extensively for We've ultimately and is fortunately Comprehensive the that's few

guys. Thanks,

Thanks, David.

you. Thank

you. question is Bruin next De is line The Thank of from Bank America. Derik, live. from coming your Derik

Derik. Hey,

This morning. John Derik. is for good Hey, on

John. Hey,

the to about So, I wanted ask guide.

have growth and nicely. So, of growing had X% you the you the a in Informatics course, X% from had great you business to And growth. RaDaR quarter,

these you contribution all the two kind of and dynamics? Pharma Clinical segments, given expecting from Services, forward, the Going what are Services

Yes.

So, look, not I would we the say, guide. out have in John, split that

thing all and detail the we into this our of can also have pulled. in -- or we we the We that I we lot challenge of I think sometimes a want and will get there'll business it. be key And to Informatics, think to think Investor pathologists to with on and follow-up at that right, April. much early you just has one that areas, effect. portfolio is more And levers more some We ability, focus back oncologists. four I around I unique now with win two. But be in the the in time discussions about Pharm really spend but it's the the have business as been Day looking don't come believe, a think I

four about executing those this portfolio And of getting so, in for us, all really it's effect. areas and

there the our business sometimes, portfolio look, better. quarters do one you are thing have about fact, significant And where in quarter, one may great

in Let's use a have we big of Pharma, that in started RaDaR. record surprised quarter moving how Pharma, in that us, quickly -- for I example. think XX%, movement RaDaR, even QX

in beat guide. kind where you So, our we that managing that when we're comes. even, that, the example, that's and of goal but portfolio, also get where And always you guide to realize you to look, X% is have are for our X% happen,

able contribution XXXX? nicely the to have with But on you. I wanted quarter, impact see might Got of [indiscernible] growing if in that. you're the what still tell us that RaDaR Appreciate to or really kind like

Yes. things Look, that. two on

on business, business, as will to very expect revenue we've be we've in we this meaningful So, disclosed RaDaR and will driving in color but in RaDaR, RaDaR do that start year of the amount XXXX don't exact clinical been as given. I disclosed we side -- for we we will again, We the the share -- and that's for revenue that there much be open, the of pharma haven't have side that the revenue meaningful the no in RaDaR.

As focus on that. it Medicare payers launching without we're or third-party lot you move There'll know, QX, starting to in but reimbursement. a we're to clinical of and going the late MoIDx in launch be side,

key as our we're to meeting. of out -- look, But sales world one this And we had the call talking a night, barbecue global talked they're place. And the him speaking just field from we we've of last to actually doing leading to, organization. the one bought oncologists in and the

oncologist lot that mistake get industry in -- on I this barbecue makes almost this and starts And is get launch think patients a that brought now a for reimbursement. have that's you a when high-level RaDaR sometimes he because And conversation, we criminal listen, like So, of about could that until wait out to like it the but would joint. these his Medicare not products to and be product some And patients, to exciting. this benefit. can the talk of was there's it Medicare impact

in is look, clinical forecast and RaDaR the for revenue XXXX. the side in going to be the but live to learn, we're in meaningful So, no fair, of business

we And investing in will well. as be RaDaR

was continuing our continued and initiatives to of -- we're... expecting we're to RaDaR how terms part strong also are growth, as in invest of in that So, investing in strategic we see

investment in 'XX, yes. of lot A

you. Thank Okay.

that. Appreciate

Thank Stevens Tom, your is from you. And coming live. the next Cowen. line Tom from question is

Hey, Tom.

guys. really quarter. on the good Hey, Congrats A job there.

developing Clinical the of bigger how you utilization your some So, years. of picture just on kind next few see a one more bigger over in labs

prior So, margin high margins your I running you with the I the complexity [indiscernible] a pandemic. and test? XX%-s gross you like where guess out higher setting Clinical think do for as was gross up get utilization, to those see something

exiting EBITDA. on then, that on 'XX much. positivity? into free So does adjusted your that cash very 'XX? flow kind feed view And 'XX, How long-term profitability is positive on to boarder of Thanks how linked obviously, you're

Yes. going Jeff when bit we're long-term Day, can the kind guide. And of we little color. of get about on guardrails add talk Investor together a to on

Orange look, close the how We Texas we're Houston have But think in love market, California. opportunities, little labor historically question, center, level But for and tell profitability pharma way that biggest let me haven't can the managing. us. we our But shared a medical give one has maybe We in on she's Houston lab is I the of Houston been not you thinking our loading color. was to about and we a I lab So, here, she great would yesterday. pool. give Without -- and do Melody a the County, And is disclose little largest insight Melody's you that. so lab. by

we expand discussion so, do lot And of a movement around and how there.

is think I amazing. Fort Look, Myers

labor down the in come lab, to places say lab. down Myers would If or you through. to out like is to building it's a California able be been tour it's pool just anything But has I one chance compared get challenges in our that you'll of world. a pull chance Day, Myers to as kind the in I state-of-the-art Fort think good County, get Fort probably Investor to Houston of to Orange

business try and a better locations move to from some going to continue to we're labs job. of do So, our those both busy to California much

to site yet, whole and kind gross who's not has maybe life I'll in so margin chimed Melody plan Melody, her of that maybe improvement. around thinking And about throw is

Tom. Hi, Yes. Chris. Thanks,

leveling. we're load Chris So, as mentioned, working --

too AV perhaps capacity have We our labs. much for in our volume

on focusing space breaking we're Houston. So, new non-integrated I on to touring we're moving in be working old to. that working just processes. And going that was down expanding primarily there some we're

would a that see. I'd acquired they we keep had. much when So, lab, driving not to leverage the like that off as We're as processes operational we of

our is So, to as bringing around revamping all digital processes. And really standardization good leveling a optimization and technology lot services big are automation well as of longer-term site the load lab. XXXX then, and a themes of in of for in process us

So, lots of initiatives.

not I we integrated. think it's one is Melody. really really that had Like a thing good point,

five some in done certain automation Inivata of the for you I standardization restructuring, a been saw in and we've called I in point So, probably as on But integrating, around five time I places. Melody example, that behind, years, out a in about integration. really of processes and good mean, acquisitions think four brings up there's lot -- and spent

like margin, I but front operational it in the runway be we'll of right? in about the about execution, it on think about good is think feel the year, we've identified us before those is really I end now of execution. new we the So, Houston So, in lab, but that opportunities, gross the

right. All

forward much. Thanks to Looking Investor very Day.

in see I you April. hope Yes. we'll

Yes.

coming next Stephens. The line question live. is you. from from Mason your Thank is Mason, Carrico

Mason. Hey,

a quick Maybe guys. business Services Hey, here. one the on Pharma

proportion an earlier-stage I increasing years. which quarters, later-stage faster projects, converts work, commentary there which think backlog goal on focusing have to of was become around past of some the in revenue few previous the over than

is that products adding mix of quarters? few a you have dynamic how in you increasing the last are first, been point? that second, over Or thinking successful at earlier-stage goal? guys an about And So still guys this

Yes.

Vishal, Let you take that? me -- want to

Yes, I can.

a QX previous big we earlier-stage So, for yes, samples samples earlier moving to about success looking that When we from basically at we have have was stage, versus studies. retrospective And the studies. studies been call big collected for us. talk what at had batches, we're coming prospective that driver in

So, we aspect. a focus team saw their that to asked definitely we shift really change in our as sales

and NGS in that work a shift with type RaDaR. also of We saw the

monitor. to focused the we're larger to what It's samples that us our that the start that's team for is into making in coming that QX the going us. really approach. see you in trend and high-margin modalities, as on for heavily uplift caused XXXX, in, that's going you a And and get So, that we're sure focus a

Thanks, Perfect. guys.

Thank you.

your The Sachs. from you. Matt is Sykes live. Matt, Thank coming Goldman next question is line from

Hey, Matt.

is on guys. This Dave Hey, Matt. for

flip where the forces, could partnership opportunities sales oncology savings? you And out revenue the path more the for building find on So, synergies and most Inivata us regarding and opportunity the there? reorg, you about tell the do for side,

the that was say Inivata. reorg just would I Look, Yes. not

better duplication. But around a on big get would clear at at, G&A, to had and component want a looked thought I organization looking leverage. be had lot of majority I redundancies the that. G&A services, I and entire The had Inivata where we we is we Inivata. could operating reorg the we the say So, around was would say, where was we

two organizations. really And that becoming our of I positive came engine. that that process, would say out the is we through that of the Inivata, R&D other combine R&D I think

think, a And pick-up was I that there. good think so, kind I another, really of

-- you second on all question. are you pivoted questions first guys throwing So,

tell sales what was yes. So, force, was -- [indiscernible] it's -- the me just it

Yes.

that to So, you say of like, it's have when be going would what look, each. business our look ultimately I going to every imagine one is will territory

look, throughout I so, building we're that think -- to And it's the year.

too you'll to I we much said there's first quarter high think add territories, just of kind to to out I XX think closer wave up get we here that in and see a size. oncology in and level, big that probably anywhere group geographies. the opportunity in there's haven't from gone believe Again, able to be XX all people those

you. Thank

Company. coming line from Needham your Thank is Mike Matson you. from next & question The live. is Mike,

thanks. Yes,

RaDaR, on Just couple a I guess.

you -- colorectal, late, the you of MolDX? you something. thought and your you I but and kind both half, I there? team, be a have there apologize, join the felt like I both second the this that did you or this maybe indications you to half. give us and have message of submitting was so breast for those colorectal that a management enough more work mentioned little have to the done of didn't just to the confidence remarks the in prior you're from do data in just going support first can broadly, in more And be reimbursement sense call in data for that -- the in But the prepared -- gone was may through So

Yes.

things two on So, that.

we submit last and have first data year of better colorectal, twofold. the not the for we reason that that of as breast. and did the know, pushed to did we second in And we you more half get. one, we colorectal -- Number was year, believe got So, all, significantly

and between breast the data, how others on the product the in the as industry that as anything and I good think at differentiation on sensitive MRD when is you test market. it's our look

A, get have was we the accelerate MolDX. ability we look, look, -- because, that to that feel So, let's through and like great data

back we data. half do the Look, is of the the that more to had to go second reason candidly, moved colorectal and year,

to we'll add make to more it I also meant half, which the that, like get think we we we the thought breast. do business. this in we in that. to again sure year. submit go team accelerate but that look, would had so, for doing we and back felt in, that repackage a first data the And that want it and third indication approval, everybody want if prudent we, back some We around think has go we was didn't And But

things end So, we would MolDx for the RaDaR. actually to submitted year, we'll have the at three of

in thinking than that it. I Actually, half timing it guess to Got terms was what Okay. second I actually for colorectal thought better get would have taken I of the have was that data. would

saying they're you companies rein a are a biotech that's very I in the was another weakness then was mean, expecting in my worried last given that the to Pharma view. And all guess, kind space. pharma be positive, But are to right. strong, So just Services just headwinds, I business, of company all mean, it but that lot reported spending? night trying I diagnostics third-party of in macro going

number basis, see of are out Yes. on we are on there We consolidation a see occurring see right? trials regular down. side. mean, Pharma this slowing the I the do look, that do We

focus. and our talked prospective the we stage one retrospective comes samples. have also bit a We on However, versus of where late to questions about it stage, versus down little earlier early want to

going So, think are continue as QX. that see the I to growth we also to our right we going the into we to shift focus area, saw

also other able have look, think these I be offer. to And of RaDaR, to think, don't companies I Yes. a lot RaDaR

really on that's us growth think side. I helping So, the

Okay. Got it. you. Thank

Thank you.

James. Thank coming live. question from Andrew, is Cooper next from Andrew your you. line is And the Raymond

Hey, Andrew.

for covered, just A questions. Thanks been everyone. have lot Hey, one. the so maybe

us the I it, little -- out But walk maybe what's that used that. we bit portfolio of Warren think but words about kind optimization. just folks. said expanding oncology through think somebody And the know I don't I generally, who menu. a available I mentioned remember meaning think there for of shrinking

most should And the Pharma, focused with on and about you're RaDaR the how front, the launch Pharma the having interest? clinically where indications regard? there? to be we think that about Is similar the that think traction right we else anything then, in where is thinking And the likely when in assumption about is

product as were Yes. think that into think look, the I growing the tests the a we not of over Look, challenges certain and got I company, offering one rationalization, Neo that I wasn't on were on, years money there demand. big we think making just candidly,

pruning almost rationalization think basically we that So, value, some taking it. not of just the long-term I would we're and profitability bushes, losing that money what away on is there's test call like

anything Warren, add to the have rationalization? product want do you you on else

you that that I slightly to typically this. what I mean, through like mature. business. a the I is mean, exercise need This would in put core it we a go more would is expect is portfolio

time, rationalize. At extend the same maybe to and strategies products looking modalities NGS and few want going a of molecular by cycles areas there's those at no we're are just So, into technologies. longer to that are deploy, will some life other which viable which shifting we from

the both profitability. maximize of ensure portfolio it we complete So, and it's revitalize to a growth can look review the to and

do you about Thanks. And then, Vishal, to Pharma... want talk the

thanks for Andrew, question the there. Yes,

to the nice on what's testing cancer types. across RaDaR wants at MRD-type look really Pharma this side, that multiple Pharma, with So, is the about

patients, So, to looking indications much value where the we while that. clinical launching we Pharma immediate broader four think we'll have are is than with that

broader we starting in see up eventually I on a -- much So, will indications cancer what's the is perspective side, a cancer what actually think our result specific on downstream. -- in on clinical Pharma patent

everybody in momentum really very just morning take that about to think our the the feel where XXXX. I minute we business, join good queue momentum taking Paul, Look, about is and this we QX real us questions. a And with we whichever a moving and into QX through I think that the and of from us thing, carrying excited Hey, want end about we're is of results. and Okay. think we're kind lot business thank the way year-end talk go to to draws momentum for I the is the headed. a time

we're an business. the pulling We in the join Investor for Day, deeper much and that we'll everybody and into levers us strategy get has opportunity on hope Fort Myers some the the to of

that, again, and thanks Before take care.

today's conference. This you. does Thank conclude

for have You a may wonderful day. and Thank at disconnect this time, you your participation.