GeneDx (WGS) 30 Jul 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the GeneDx Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to Sabrina Dunbar, Investor Relations. Please go ahead.

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

have Feeley, President Chief we Officer; Chief call, Kevin and Financial the Katherine and Stueland, Executive On Officer. Earlier for today, XXXX. the results second quarter GeneDx ended June released financial XX,

We note including call, our business outlook. our take on and about please guidance begin, forward-looking statements we cautionary Before statement. may plans, make today's of

refer earnings materially release July information reconciliations regarding which at and update. When are from that, with we under certain obligation differ to involve Forward-looking cause only reported of refer turn our and for additional statements of including risks results, results. inherently definitions could a discussion measures, view forward-looking quarter call statements. And and and to Katherine. XXth, reflect our slides to results, will over items available to our from our we discussing and exclude factors XXXX uncertainties as I and to non-GAAP the non-GAAP of results measures today, Please that ir.genedx.com actual no second

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

The gross been all nearly X revenues, burn quarter We've measures. cash in strong on $XX focused focus and million second We expanded quarter by of be metrics, off. proved to our ninth and delivered XX% reduction. achieved consecutive to quarter these that continues relentlessly margins another to pay

geneticists, to care. Today, pediatric that counselors, neonatologists. and is pediatric developmental ever-growing in and serve opportunity primarily focused future even as guidance becoming we're medical these milestone for the in and of providers neurologists, important year genetic of front revenue because Given a profitable. for health to million that our $XXX massive This GeneDx the an company of the half the million, number the year, first the our say an for including and of families impact to us strength to pediatricians raising patients, positively care I'm on happy us goal is we're patients the to to closer $XXX of of

to sequencing more available. carry than X of sequenced diagnostic and most proprietary combined capabilities, And benefits now variant to advanced health those to performed continue and have create options and of more and in genetic the patients industry-leading genomic of as become care disease-associated genomes set, most databases, one first-line data have largest and XXX,XXX outcomes identification and systems. We genome care cost [indiscernible] better tests tirelessly bioinformatics exome health and exomes with interpretation and our million and the the working standard for both resulting test variants. This recommended than tests, diverse

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

starting in we full sequencing. on additional our to and opportunities must excellence. put the and scaling It's of that billing on identifying These earn in This focus our quarter, has more has time service discipline revenue, I in highest amplified of mix. The for by upshot reflecting streamlined third workflows technological costs, the times continue exome experiences. In impactful that sales successful our total operational our our future, wind profitability business our near-term for efficiency, team's point transition by commercial AI accounted and with and our shared patient right payer better impact support in by had and in been right product with approach. XX% lab over of and turnaround and as of a focus quarter of last invest to strong our drivers. towards of a a longer-term mindset improving lean execution strategies invest learning technologies machine the adopted and genome And from reducing teams provider to genome shortening we year, improved

the electronic Epic's we improve and announced to information health about leadership with sample our series types of diagnostic journeys unveiled integrate with future. yield. and provider genome product partnership we workflows quarter, increased a enhancements a accepted in via to turnaround We we pave products system way shared our investments to in today, as for exome expand reduce Epic to connections. And and time, more a translate our This patient genome

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

in We're by that and quarter know We're and also the is these United the direct the policies biomarker to across impact States adoption nationwide. laws there access will exome making of progress pleased families. and on testing the on key genome ensure additional expanding legislation have patients second

to states rapid just cover announcing in into the sequencing headquartered July days. were genome rapid here company few Connecticut, we see As passed sequencing, effective whole added coverage law last genome in with Carolina proud XX a Xst. Today, North

see among steps support and direction payers see are certain whole to the right country. the their shown fundamental thrilled our believe testing as to partnership taking patients through bipartisan United also in policymakers We with genome to to across that equitable commercial the access is offer throughout sequencing Healthcare country. We

addition steps progress patient our and eligible Medicaid testing we drive other In we've launched while exome opportunities. access for partnership program forward. the epilepsy trials work with being up open access enroll to own to commercial taken supremely the to done In to state payers, clinical patients a in therapeutic helping biopharmaceutical and leaders by patients important quarter, in programs second

one set looks was Thus America. the data data of built and genomic by at genomics offering patients representative across most available. proprietary diverse Our

prioritize qualify diagnosis. market-leading benefit and privilege journey appreciate about and their offers in financial the taken by historically can diagnosis equitability done we're recognize steps discipline actionability and we every they can accelerators a position servicing As way immediately our around of for we management, patients of business on circumstance, not cost desperately balancing to patients continuing patient invest we and that unified strength. With opportunities, that to genetic millions results. families the connect differentiation, The groups communities, clinical and U.S. more. We and providers in patients yet. advocacy barriers we've the change support to clinical much of remove us, but unlock growth with need, There trial pass a child our the the financial think I'll that, go diagnosis to from and globally Kevin in over to families to and to are while it scale for our through are

Great. Thanks, Katherine.

quarter and and to up $XX.X XXXX an quarter total. of profit revenues a XX% the portfolio tests X% over operations team Overall, second year-over-year XX% genome from in reimbursement our delivered effort That's working. continue from from first of rates the balancing sequentially. We'll some unit $XX.X genome from ago XXXX, On Second Both Drilling in I'm through performance is increased per leverage In specific rate, towards and the XXXX. Across and improve quarter volume, up reduce from quarter. all quarter, second $X,XXX, exome exome collection second and the insurance quarter with rate of first of average clinical quarter first XX% our million and continuing to XXXX. in for quarter. in commercial up the our denials up and of compared from interpreting and procedural volume up and Adjusted in to and into expansion from approximately QX in and underlying denials. XXXX. gross satisfaction continued to impact of time. volume all continue the and exome given narrowly to That margin exome genome XX% sequentially XXX% XX% operations $XX.X $XX.X was and optimize whereby grew quarter, average year reimbursement by enable collecting second from the and and of to margin pleased favorable denial improved test of in inherently XXXX. environment, cost increase needs. premiums XX% reduction and XXXX, volume, genome XX% that, this a XX% $X,XXX requirements was business calibrate administrative genome from exome on quarter. clear compared and this in the and this payer over driven reimbursement test average of environment mix, the increase to year models shift. On year-over-year we contributed and was That's XX% policy up XX,XXX exome quarter operations up revenue remain resulted own million complex the in where XX% quarter operating XXXX after and XX% payer medical Gross fourth while mix quite an million quarter quarter $X,XXX their the year-over-year up growth delivering workflow and gross revenues to the ago profit first from business strong continuing predicated insurance continuing the of economics, million grew we mix, $XX reimbursement the sequentially, rate, archaic nicely. Adjusted million was suit administrative XXXX, said, exhaustive XX% are last tests about customer is

Our equitable so for generation across remains interpretation patient-centric as should more dry Across unparalleled optimizing to they highlighted for the down help the medical and and for we coverage set as North testing generating team the job access in report wet proposition with Texas policy. care programs and writing. policy done and and our its will new our differentiated abstracting Medicaid today. And and families tools exome denials broad great genome. automation Connecticut side coverage advocacy first-in-line lab, a data fairly. focus are NICU. continue scalability come that and state on and exome to value rapid our populations, continues drive has a genomic release Carolina, per particular, clinical to towards our on get couple the to clinical efficiency opportunity analysis, of continue articulating continue underpin We expand in momentum medical genetic Medicaid and All there test, In the need data cost test to of can reimbursed get

insurance not sequentially. Total drive expense of million lawsuit adjusted as at leverage to a the out grow. to XX% Now $XX to million. XX% on Sciences combination. And CM did Life second connection in named behalf stockholders GAAP year-over-year of business onetime consider The company to line, of for us XXXX the this net was of of improvement charge total growth driven in Life $XX narrowed to loss combination business commenced quarter year-over-year moving profit million. quarter quarter, business, the be Sciences XX% ready the approximately a expense Life normalized XXXX in now directors that, XXXX. relates second for expected of Sciences action Legacy operating suit year and bottom sequentially, of CM and gross loss we X% GAAP and operating time is charge, the a prior One class operating of recovery down approaching stockholder XXXX operating a relative the SemaX. to That's That The who litigation and of quarter and its the in reduction expense at redeem their rationalization. base CM turn the brought as between a on adjusted by I With shares second call and that former the net we're OpEx expense. net includes of $X.X profitability. an with

$X.X burn year-over-year cash we've quarters reduction. which Our was sequentially. cash consecutive and of And XX% second delivered burn net now XX% quarter X improved million,

count includes connection exercise share Perceptive shares XXXX satisfy of the cash was now the are debt A a million of they XXX,XXX the XXXX, outstanding. in of as XX,XXX,XXX And $XXX cashless the common securities XX, warrants equivalents, to outstanding of guidance. common restricted XXX,XXX Class XXXX A of cash placements. And in issuance April as On XX, cash, total June with October The to there turning balance and to June sheet, shares Class received stock of XXXX. marketable a

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

latest $XX anticipate We XXXX The of that of improving previously to $XX margin guide for or gross is the to timing higher. a and as paid absorbing fully net here in year required payer reminder, XX% adjusted be guide is the and uncertain still at Legacy that And issued that full million, the of legal million full time. And million in should under That ultimate settlement December our using reiterating net contemplates XXXX. XXXX. now are SemaX land year next cash settlement the guidance XXXX. burn will be scheduled we're at XXXX $XX payment this cash payment

Finally, Katherine. to business we you our in that, I'll turn expectation profitable again reiterate XXXX. With back once the turn to

Wonderful. Thanks, Kevin.

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

our to collaborators, painting those family and families, earlier or and dedication each for their better one under a step our ongoing shareholders customers, a that Our successful future future. I'll for constituents support. now all of team every thank our want health through where open patients another for realizing in with disease make from up possible, their of and members benefit and I vision care, this and can one one, diagnosis our genomics closer quarter of belt the questions. call to We're

question of Peterson Our the first Jefferies. line Instructions] from comes [Operator Tycho with

pharma, biopharma. with you starting Maybe looks added It like XX.

think you the had XX end I quarter. first the at of

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

Certainly.

of repeat partners programs be quarter. from pleased out, programs existing for we pointed business are of the these as We're from a These nature may June, new program announced in So added, open to in companies biopharma for the who saw as connecting epilepsy partners. several we patients exome predominantly that to you biopharma testing. eligible And biopharma really have is who some you -- trial. providers up access support then, clinical a with

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

with in So not of that patients steps. the importantly, revenue but our representative or building companies we that patients continue the of as really and I see do I can sure of know being it's over for these the diversifying meaningful beyond connecting commercial data diagnosis a XX the It's data connect paving forward by for able biopharma business being path think streams, them make think, lot ecosystem, what next approach those a to a they that getting way they months so. to only most, next up to terms to

better? guidance? and old of and are for revised mix whole then new you you assuming Can what's And the what exome kind bridge genome getting the with guide

Yes.

trajectory look, volume and from strong also really to but was of from So, volumes we're growth continue with lines. we in XX% to the a genome other really the test for quarter, pacing look to optimize exome of well expect our function genome, exome and economics mix perspective as impact. previously, of encouraged I menu exome expect to in terms growth for per And at of a We then, the XXXX. underlying growth delivered total offerings I'd X% sequential remainder mix tests said as clinical for in We've anywhere and unit similar genome this and X% quarter. a that

little you sense when previously bit XXXX. can what hit quarters. you of a I'm curious you over just couple profitability of last mean think I And the in in Kevin, a think on you XQ. if in in half room different you'll just that's give said us back XXXX, about next to than of the reaching Is And go I kind then, it? year? one pricing, on X,XXX there of the still talked can

Really rate. sub-$X quarter uplift $X.X something the We we ought where to out. Overall, of $XXX with and net million, magnitude to came I to average the strong pleased the is $XXX XXXX. down -- of profitability, timing the we raise quarter, in really were said in on expect of rate Previously, something that the just of a that outperform each and second be in able really think denials we to the assume expectation we posted encouraged to raise in quarter reimbursement loss that passing We're that with the that Overall, that for performance XXXX million. term close bringing in collection rate. aggregate on we remains look, in of per where quarter. each to able for came second order quarters with out of about remaining

that So the reiterated adjusted year 'XX, measure the will year quarter be the net be The $XX on we're likely will guide first of milestone. coming million a but right off the there of loss, profitable, upcoming of on here, in hitting the the in quarter. that be we're precipice It doorstep. and of that full half the on XXXX balance full will

come will of Bonello with from question the next line Bill Our Craig-Hallum.

more your tell have expect a bit breadth on who Great the little maybe are using us Epic rolled the quarter. quickly to that you clients Can out, bit then and maybe collaboration? do about you little How of the cost. Epic a

other can have I'll patient companies Bill. in proven is kick thanks, Epic partnership utilization. Certainly, face one it that really off. drive and access can accelerate And our The

for more easier the we health I and our right opportunity, about embed that the nicely, it of drive broadly And think you in the very assessing into make of into same sort It system And genome to predominantly approach sequencing the NICU, then it able investment service took to then or was a timing terms and a of our in fantastic institutional. remind setting, NICU things that that whether of being is to so we services. for us the really the will not entire a we of opportunity through opportunity space. And data-driven ensures extending product rapid that saw strategically, to side providers pediatric translate pipeline And you business particularly to becomes on able to if impressive be that order. whole would think these is the an now.

in in partnership at year XXXX. second the and planned first of we is believe with pipeline of next to some likely things part Epic. really actually look and deployed that sure the later side of a we're the and opportunity engineering what make work year this well with well into took of can we we So half realize the pleased requires That

next we've and as but and road beyond. to in But 'XX to expect I of even that start see so on 'XX, broadly the for said, map second that into so our we of benefits got QX year. half the And into more

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

Yes.

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

a exome of organized was invest Those fall, we getting are days. So is days. company's a the turnaround earlier. been no doing wanted that efforts out a pause improvements X And that genome the number longer when a namely the some product put times, would previously to driving be reality faster have on written is We what customers seem prioritize we report and everything really around of delivery. we last right in in the verbal utilization to have in

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

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

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

heard prime that. want only experience is meet in customers and loud they physicians where particular, that the add a reducing to experience, and Yes. customer to we friction other are ordering thing that their the is important Epic Epic collaboration really just from in We've The I'd regard. and process of that clear hospital-based example the overall to in

I delivery. on results up follow a It's Epic X-way ordering street. to just assume sort And of that, and

yes. Yes,

Our next the from question will line Mark of come with Massaro BTIG.

material or Kevin. might quarter. was When from $XX contribution you the quantify continuing period for QX, million prior sequentially. any revenue from million collections? at I a up $X of guess on Can solid The approximately you, Congratulations if I there look be ops, $X million that's this

calculations in we characterize consistently back we quarter in or the volume $X,XXX in the so. and is at that and revenue order I'd past look improvements the that historic looking as over reduction that is And denials taking Yes. the of average vis-a-vis reimbursement to a rate. the way see rate, cited to there a quantify in the resulted a quarters collection that continue X And we've performance, overall seen function

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

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

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

When change. in the first I Okay. half, look I couple transformation that QX XX% years, the I But in of right you would back XX-XX your you had obviously, the and end couple imply with of look flat and come at And of last a about of of the the still your in guidance you're guys that down split this $XX if when years, then guidance. sort that half. And revenue they last high underwent above to know in year, come second middle. million going QX, and levels, management like the it's QX

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

higher Maybe way end the million puts think Mark, is it, nearly still previous revised the high about than Yes. there, one low $XX the guide end. to at us

QX Overall particularly we the have days to relative for physicians of as given which appointments. its being a momentum. available as should the confidence in always said, light is typically tell it we've So our on the quarters, to view seasonality, business the increase guide, strongest with substantial QX you continue

on respect our read uplift signal was and be with should And certainly to growth to think want don't the We path. way. so meaningful any that guide hesitancy continuing

on the fourth wanted little we the the bit might I'd the all top that say and rationalize of in year The the throughout third room context of to lighter quarter a than test any the on respect guide in in effort portion seasonality quarter to to offering. within of with is this we've of decisions optimize second come then terms to make continue non-exon leave of and we expected that. portfolio the as

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

maybe helpful. for And question last then That's me. the Okay.

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

potentially I think line, an an than and sooner half seems it just on adjusted the listening there spending for breakeven incremental you be about have people definition? is of some would walk some XXXX. like slightly definition me other the to it opportunity just profitability. there that would to should back definition how up? reminding in think, your you be get your But profitability or thinking is maybe I of us of mind we Because net loss of the through either Or

depreciation, second Yes, And share-based there net the item. really quarter adjusted we of noncash that's here. amortization, posted million that $X.X compensation the to and in right nonrecurring being take loss items, onetime definition adjusted like-for-like with out any

The second of your question, part Mark?

a It doing you you're you was XXXX. obviously, to if before get keep doing, on profitability Yes. what have -- to chance

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

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

remarks, said guide about gross like right I that the fairly has profit prepared the I here OpEx of Look, really XX% provided margin that We out. remainder would outperformed the year. my profile gross on or think think the And way. the We thinking stable for in Yes. in expect of it second XX%, quarter higher. leveled with I you're

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

Our come with Dan from line Cowen. the next question Brennan TD of will

made know with what just denial you've didn't the Medicaid you rates. said still I those. on Maybe context, opportunity just that I on know progress -- Congrats And state to in reflect meaningful QX, I quarter. on close but that? they you how you to maybe the could Can it, in were Great. into hear about you Kevin, talked plays coverage progress speak

Yes, Dan.

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

imagine, picking you exome Medicaid sequencing. What the genome when various is the behavior adjudication to program respect side necessity fairly states of for predictable As is with to can a see on tend and guidelines, up medical this of and/or we in that administrative coverage heels on whole up clear the claims. momentum Medicaid picks therefore, guidelines coverage,

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

predictable.

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

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

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

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

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

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

what maybe wondering just enthusiasm Got could have starting seen biomarker that impact staying of kind yet. it. of from happen, just the any, you've bills, pay but they kind for Obviously, had of kind And much if what states? payers theme, progress, like there's those on to in

policymakers, seeing thought we product it's And that together coming look patient Medicaid then at online. advocates, states and a our are of of facing. impact leaders market to are Yes, biomarker direct access, these the team bills the problem a coverage coming take all and

so biomarker they're a but Medicaid between states other without nice coverage there in build, see correlation where And is a Connecticut. here there going really right correlation, it. recently a including to We is

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

it Just you margin kind of from the like standpoint? that extent what a split? And really us revenue have big remind could pick genome how for up -- genome is whole to can business exome today genome, impact does you on within here, your

and to impact And world that's on of be went actually, some broken not forward focus by we'll think we if to in I terms to but volumes, So an way it be have thought percentage, a Dan, flag growing it We're down right? thing small, that, see is directly where on and they're genome not gross note I our and about really though, small, business, no XXXX, exome by that's we -- genome. So will the be expect XXXX, as of percentage, to into rapidly, important It's think a that we greater think genome. small going way moving exome not a planting. put skipped between the well to that. One margins in revenues, as it's really Medicaid Texas, that actually their going reimbursed. of

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

is there January changed picked the And the a ticker and be GeneDx go day pivot right? genome ready we'll more knowing name to WGS for backbone. that, exome Yes. intentionally to XXXX, symbol only we'd be If back we leaving say, as was of and there where an towards to company you the our

line from will of the Sykes question Sachs. next Our Goldman Matt come with

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

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

process automation company, to think we coming be laboratory. Certainly, as quarter have much Katherine back of to able think a appreciative but where in we were impact, good a see side large are from the improvements but margin have opportunity in but test form I to some with we benefit the improvements, wet of those cost scale that expansion abstracting, able seeing years of reducing cost is more on improvements time, predominantly reducing next progress lab further made per We've it's still of introduce and XXXX processes to the basis. that reduction. volume if and that on some and to we manual, Maybe nearly go those cost interpretation, process analysis it the is to exome per costs to dedicated Yes. a period into in dry lower one major the coming say gains in the report writing, you scalability way fairly differentiated when manufacturers, scale we team input via test come that's per modest from we're costs about of test deliver efficiency joined and in fair further being this year fairly X there. costs But

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

supporting wondering savings cash So just that other don't burn or reduction know help with is in where continual maybe portfolio that cost tests it's I'm the the But investments and square you've me just shown. from, if leaning areas. into test I those legacy coming

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

year. line, were we're non-exome those the We've look were going test margins exercise to nonetheless, technology, on throughout but and tests clinically remain. our through a say byproduct past and processes the margin gross to find that memory patients, I'd test those But physicians margin also organization retire over gone offerings. From lower to extensive fairly to through a improved gross an do seeing Microarray. is are that test benefit continue line Chromosomal to that that. the been the ways, OpEx at we've see to to we've genome. drags the nicely value We -- last to exome use year get in our process, built over expansion somewhat the margin. We've in panel tests able to volume retired of and bulk made that on standpoint, gross cancer improvements good efficient, along expand release hereditary seeing And muscle other split really the with of we've to we're the more this in you'll those

payer income I So expect million net in lumpy that net that did call million adjusted course, large making settlements loss that quarterly net $XX do quarters, and to settlement. that payment the $XX will on on X in our will coming then out, items. cash for flow XXXX December closely the or of signed be the a conform potentially basis. I SemaX pretty litigation

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

if Got more, Katherine. can one And just it. ask I

closer of have to a exome because whole go your mean one that kind that's Texas Do growing do exome fair genome. you away. done is Just pace following when -- actually of up progress experienced you've I'm in plus mentioned to guys Dan's whole whole acceptance wondering are the questions. what assumption we going the acceptance relative for than you get skipping sort that, bills what exome? what of on so example to exome the think with of more rapidly paved of future to just I forward over you in of with even genome, thoughts whole the that genome exome what biomarker whole sort you achieved believe payers and from mix on the assume shift you that could acceptance far

Yes.

I I as was encouraging think I said, planted, the think, Texas really to flag that us. they

about is to sure the this going, In where ready exome, it order is are of providers that debates terms and genome, we're a it that test is have market we offering. making routinely

think it of of more it. definitely most is support payment an do of turnaround and education on in that important So answers. to lot need for more element do that genome comprehensive by the a policy benefits faster I broadly way There's the we exome times, to still terms of

So say, opportunity genome. But the drive to adoption start see payers there. lining clip we and that behind to there's realize mission we still, exome do to I of would once a and that have for think up continue in an important that will educational faster order I policymakers technology a

come in XX% terms exome, all fortunate, exomes of we're lay the important with So able not for groundwork said, with are -- anonymous, GeneDx we as have genome. we and but to being of -- just I really making through ourselves

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

for back the like I'd Stueland closing turn remarks. to That to session. concludes call Katherine today's question-and-answer

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

safe good you. of Thank a your have summer. So rest

call. Thank This concludes conference participating. for you today's

may now You disconnect.