NeoGenomics, Inc. (NEO) Bundle
A Brief History of NeoGenomics
Company Overview
NeoGenomics, Inc. is a leading provider of cancer-focused genetic testing services. Founded in 2001, the company has established a strong reputation in the oncology diagnostics market, offering an extensive range of tests to assist in cancer diagnosis and treatment.
Recent Financial Performance (2024)
As of September 30, 2024, NeoGenomics reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|---|---|---|
| Total Revenue | $167,824,000 | $151,954,000 | +10.4% | $488,566,000 | $436,091,000 | +12.0% |
| Net Loss | $(17,699,000) | $(18,516,000) | +4.4% | $(63,402,000) | $(73,642,000) | +13.9% |
| Gross Profit | $74,880,000 | $62,311,000 | +20.2% | $212,843,000 | $177,016,000 | +20.2% |
Revenue Breakdown
In Q3 2024, the revenue from different service lines was as follows:
| Service Line | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Clinical Services | $145,783,000 | $127,553,000 | +14.3% |
| Advanced Diagnostics | $22,041,000 | $24,401,000 | -9.7% |
Cost and Expenses
The cost of revenue and operating expenses for the third quarter of 2024 were:
| Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Cost of Revenue | $92,944,000 | $89,643,000 | +3.7% |
| Operating Expenses | $96,077,000 | $86,506,000 | +11.1% |
Liquidity and Cash Flow
As of September 30, 2024, NeoGenomics reported the following cash flow metrics:
| Cash Flow Category | YTD 2024 | YTD 2023 | Change |
|---|---|---|---|
| Operating Activities | $(2,777,000) | $(19,737,000) | +85.9% |
| Investing Activities | $18,322,000 | $59,512,000 | -69.1% |
| Financing Activities | $3,959,000 | $3,284,000 | +20.5% |
Stock Performance and Shareholder Equity
As of September 30, 2024, NeoGenomics had:
| Equity Metric | Value |
|---|---|
| Shares Outstanding | 128,061,944 |
| Common Stock | $128,000 |
| Additional Paid-In Capital | $1,219,182,000 |
| Accumulated Deficit | $(310,457,000) |
| Total Stockholders' Equity | $908,210,000 |
Future Outlook
For the remainder of 2024, NeoGenomics anticipates continued growth driven by the expansion of its clinical services and advancements in diagnostic technologies. The company plans to invest between $35 million to $40 million in capital expenditures to support these initiatives.
A Who Owns NeoGenomics, Inc. (NEO)
Shareholder Composition
As of 2024, NeoGenomics, Inc. (NEO) has a diverse shareholder base consisting of institutional investors, individual shareholders, and company insiders. Below is the detailed breakdown of ownership:
| Type of Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 85.2% | 109,000,000 |
| Insider Ownership | 4.8% | 6,130,000 |
| Retail Investors | 10.0% | 12,930,000 |
Major Institutional Shareholders
Several institutional investors are significant shareholders of NeoGenomics, which influence the company's strategic direction. The following table lists the major institutional shareholders and their respective ownership stakes:
| Institution | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| The Vanguard Group | 10.5% | 13,500,000 |
| BlackRock, Inc. | 9.8% | 12,600,000 |
| Wellington Management | 8.2% | 10,500,000 |
| State Street Corporation | 7.5% | 9,700,000 |
| Fidelity Investments | 6.7% | 8,500,000 |
Insider Ownership
Insider ownership reflects the confidence of company executives and board members in the company's future. The following table summarizes insider holdings:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Mark Mallon | CEO | 1,200,000 | 0.94% |
| Kimberly O’Neill | CFO | 950,000 | 0.74% |
| Michael Kelly | Director | 800,000 | 0.62% |
| Cheryl H. C. Dyer | Director | 400,000 | 0.31% |
Stock Performance Overview
As of 2024, NeoGenomics' stock has shown various trends influenced by market conditions. Here are the financial metrics related to stock performance:
| Metric | Value |
|---|---|
| Current Stock Price | $7.50 |
| Market Capitalization | $960 million |
| 52-Week High | $10.20 |
| 52-Week Low | $5.60 |
| Dividend Yield | 0% |
Financial Performance
NeoGenomics reported a net loss of $63.4 million for the nine months ended September 30, 2024. The company's revenue for the same period was $488.6 million, reflecting a strong growth trajectory. A summary of the financial performance is provided below:
| Financial Metric | Value (in thousands) |
|---|---|
| Total Revenue | $488,566 |
| Net Loss | $(63,402) |
| Gross Profit | $212,843 |
| Operating Expenses | $286,548 |
| Adjusted EBITDA | $27,735 |
Conclusion on Ownership Structure
The ownership structure of NeoGenomics, Inc. is characterized by significant institutional investment, with a diverse range of shareholders contributing to its strategic direction. The company has demonstrated resilience and growth potential, despite recent losses, supported by a robust revenue base and strong institutional backing.
NeoGenomics, Inc. (NEO) Mission Statement
NeoGenomics, Inc. operates with a mission to save lives by improving patient care. The company aims to become the world’s leader in cancer testing, information, and decision support by providing uncompromising quality, exceptional service, and innovative solutions.
Corporate Overview
As of September 30, 2024, NeoGenomics operates a network of cancer-focused testing laboratories accredited by the College of American Pathologists (CAP) and certified under the Clinical Laboratory Improvement Amendments (CLIA). The laboratory locations include:
- Fort Myers, Florida
- Aliso Viejo, California
- Carlsbad, California
- Research Triangle Park, North Carolina
- Houston, Texas
- Cambridge, United Kingdom
Financial Performance
The financial performance of NeoGenomics for the three and nine months ended September 30, 2024, reflects strong growth in clinical services despite declines in advanced diagnostics. The following table summarizes the net revenues and gross profit:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Clinical Services Revenue ($ in thousands) | $145,783 | $127,553 | $421,706 | $365,578 |
| Advanced Diagnostics Revenue ($ in thousands) | $22,041 | $24,401 | $66,860 | $70,513 |
| Total Revenue ($ in thousands) | $167,824 | $151,954 | $488,566 | $436,091 |
| Gross Profit ($ in thousands) | $74,880 | $62,311 | $212,843 | $177,016 |
| Gross Profit Margin (%) | 44.6% | 41.0% | 43.6% | 40.6% |
Operational Highlights
Revenue growth in the Clinical Services segment is attributed to increased testing volume and higher average unit prices due to the introduction of more valuable tests and strategic reimbursement initiatives. In contrast, Advanced Diagnostics revenue saw a decline due to international site closures and restructuring activities.
Cost Structure and Profitability
The cost of revenue and operating expenses for NeoGenomics are detailed in the following table:
| Metric | Three Months Ended September 30, 2024 ($ in thousands) | Three Months Ended September 30, 2023 ($ in thousands) | Nine Months Ended September 30, 2024 ($ in thousands) | Nine Months Ended September 30, 2023 ($ in thousands) |
|---|---|---|---|---|
| Cost of Revenue | $92,944 | $89,643 | $275,723 | $259,075 |
| General and Administrative Expenses | $66,969 | $61,486 | $196,094 | $183,343 |
| Research and Development Expenses | $7,684 | $5,285 | $23,190 | $20,182 |
| Sales and Marketing Expenses | $20,415 | $17,610 | $62,313 | $52,770 |
| Total Operating Expenses | $96,077 | $86,506 | $286,548 | $266,178 |
Net Loss and Earnings Per Share
For the three months ended September 30, 2024, NeoGenomics reported a net loss of $17,699 thousand, with a basic and diluted net loss per share of $(0.14). The following table summarizes the net loss per share:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Loss ($ in thousands) | $(17,699) | $(18,516) | $(63,402) | $(73,642) |
| Basic Net Loss Per Share | $(0.14) | $(0.15) | $(0.50) | $(0.59) |
| Diluted Net Loss Per Share | $(0.14) | $(0.15) | $(0.50) | $(0.59) |
Conclusion
NeoGenomics continues to focus on its mission of improving patient care through innovative cancer testing services while navigating financial challenges and operational restructuring. The company remains committed to enhancing its service offerings and maintaining its position as a leader in the oncology testing market.
How NeoGenomics, Inc. (NEO) Works
Company Overview
NeoGenomics, Inc. operates a network of cancer-focused testing laboratories in the United States and the United Kingdom, providing diagnostic and prognostic testing services. The company is committed to enhancing patient care and aims to become a leader in cancer testing and information.
Financial Performance
As of September 30, 2024, NeoGenomics reported the following financial figures:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $167,824,000 | $151,954,000 | $15,870,000 (10.4%) |
| Clinical Services Revenue | $145,783,000 | $127,553,000 | $18,230,000 (14.3%) |
| Advanced Diagnostics Revenue | $22,041,000 | $24,401,000 | ($2,360,000) (-9.7%) |
| Net Loss | ($17,699,000) | ($18,516,000) | $817,000 (4.4%) |
| Gross Profit | $74,880,000 | $62,311,000 | $12,569,000 (20.2%) |
Revenue Breakdown by Segment
The revenue generated by NeoGenomics is categorized into two primary segments: Clinical Services and Advanced Diagnostics. Below is a detailed breakdown:
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Change |
|---|---|---|---|
| Clinical Services | $145,783,000 | $127,553,000 | $18,230,000 (14.3%) |
| Advanced Diagnostics | $22,041,000 | $24,401,000 | ($2,360,000) (-9.7%) |
Operating Expenses and Losses
Operating expenses for the company are categorized into general and administrative, research and development, and sales and marketing. The following figures illustrate the operating expenses for Q3 2024:
| Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| General and Administrative | $66,969,000 | $61,486,000 |
| Research and Development | $7,684,000 | $5,285,000 |
| Sales and Marketing | $20,415,000 | $17,610,000 |
| Total Operating Expenses | $96,077,000 | $86,506,000 |
Net Loss and Earnings Per Share
In Q3 2024, NeoGenomics reported a net loss of $17,699,000, translating to a loss per share of $0.14. The following table summarizes the earnings per share:
| Period | Net Loss | Loss Per Share |
|---|---|---|
| Q3 2024 | ($17,699,000) | ($0.14) |
| Q3 2023 | ($18,516,000) | ($0.15) |
Cash Flow Overview
For the nine months ending September 30, 2024, NeoGenomics reported the following cash flow figures:
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | ($2,777,000) | ($19,737,000) |
| Net Cash from Investing Activities | $18,322,000 | $59,512,000 |
| Net Cash from Financing Activities | $3,959,000 | $3,284,000 |
| Cash and Cash Equivalents (End of Period) | $361,992,000 | $306,239,000 |
Segment Information
The company recognizes revenue under two reportable segments: Clinical Services and Advanced Diagnostics. The following table summarizes the segment information for the three months ended September 30, 2024:
| Segment | Net Revenue | Cost of Revenue | Gross Profit |
|---|---|---|---|
| Clinical Services | $145,783,000 | $80,058,000 | $65,725,000 |
| Advanced Diagnostics | $22,041,000 | $12,886,000 | $9,155,000 |
| Total | $167,824,000 | $92,944,000 | $74,880,000 |
Market Position
As of 2024, NeoGenomics continues to expand its reach in the cancer diagnostics market, focusing on enhancing service quality and developing innovative testing solutions. The company operates accredited laboratories in various strategic locations.
How NeoGenomics, Inc. (NEO) Makes Money
Overview of Revenue Streams
NeoGenomics, Inc. generates revenue primarily through two segments: Clinical Services and Advanced Diagnostics. As of September 30, 2024, the company reported the following revenue figures:
| Segment | Q3 2024 Revenue ($ in thousands) | Q3 2023 Revenue ($ in thousands) | YTD 2024 Revenue ($ in thousands) | YTD 2023 Revenue ($ in thousands) |
|---|---|---|---|---|
| Clinical Services | 145,783 | 127,553 | 421,706 | 365,578 |
| Advanced Diagnostics | 22,041 | 24,401 | 66,860 | 70,513 |
| Total Revenue | 167,824 | 151,954 | 488,566 | 436,091 |
Clinical Services
The Clinical Services segment includes a variety of testing services provided to community-based pathology and oncology practices, hospital labs, and academic centers. Revenue from this segment increased by 14.3% in Q3 2024 compared to Q3 2023, driven by:
- Increased clinical testing volume.
- Higher average unit pricing due to strategic reimbursement initiatives and a focus on higher-value tests.
Advanced Diagnostics
The Advanced Diagnostics segment supports pharmaceutical clients' drug development through clinical trials and research services. However, revenue from this segment saw a decrease of 9.7% in Q3 2024 compared to Q3 2023, primarily due to:
- International site closures.
- Restructuring activities.
- Lower revenues from RaDaR® tests.
Cost of Revenue and Gross Profit
Cost of revenue for the three months ended September 30, 2024, and 2023, along with gross profit figures, are detailed below:
| Segment | Q3 2024 Cost of Revenue ($ in thousands) | Q3 2023 Cost of Revenue ($ in thousands) | YTD 2024 Cost of Revenue ($ in thousands) | YTD 2023 Cost of Revenue ($ in thousands) |
|---|---|---|---|---|
| Clinical Services | 80,058 | 73,994 | 234,996 | 213,032 |
| Advanced Diagnostics | 12,886 | 15,649 | 40,727 | 46,043 |
| Total Cost of Revenue | 92,944 | 89,643 | 275,723 | 259,075 |
Gross profit for the respective periods is as follows:
| Segment | Q3 2024 Gross Profit ($ in thousands) | Q3 2023 Gross Profit ($ in thousands) | YTD 2024 Gross Profit ($ in thousands) | YTD 2023 Gross Profit ($ in thousands) |
|---|---|---|---|---|
| Clinical Services | 65,725 | 53,559 | 186,710 | 152,546 |
| Advanced Diagnostics | 9,155 | 8,752 | 26,133 | 24,470 |
| Total Gross Profit | 74,880 | 62,311 | 212,843 | 177,016 |
Operating Expenses
Operating expenses for the three and nine months ended September 30, 2024, are as follows:
| Expense Type | Q3 2024 Expense ($ in thousands) | Q3 2023 Expense ($ in thousands) | YTD 2024 Expense ($ in thousands) | YTD 2023 Expense ($ in thousands) |
|---|---|---|---|---|
| General and Administrative | 66,969 | 61,486 | 196,094 | 183,343 |
| Research and Development | 7,684 | 5,285 | 23,190 | 20,182 |
| Sales and Marketing | 20,415 | 17,610 | 62,313 | 52,770 |
| Total Operating Expenses | 96,077 | 86,506 | 286,548 | 266,178 |
Net Loss and Earnings Per Share
For the three months ended September 30, 2024, NeoGenomics reported a net loss of $17.7 million, or $0.14 per share, compared to a net loss of $18.5 million, or $0.15 per share, in the same period in 2023. The net loss for the nine months ended September 30, 2024, was $63.4 million, or $0.50 per share, compared to $73.6 million, or $0.59 per share, in 2023.
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Resources:
- NeoGenomics, Inc. (NEO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of NeoGenomics, Inc. (NEO)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View NeoGenomics, Inc. (NEO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.