GeneDx Holdings Corp.

Ladies and gentlemen, thank you for standing by and welcome to the GeneDx first quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising that your hand has been raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. It is now my pleasure to introduce Commercial Chief of Staff, Sabrina Dunbar.

Thank you, Operator, and thank you to everyone for joining us today. On the call, we have Catherine Stuland, President and Chief Executive Officer, and Kevin Feely, Chief Financial Officer. Earlier today, GNDX released financial results for the first quarter ended March 31, 2024. Before we begin, please take note of our cautionary statements. We may make forward-looking statements on today's call, including about our business plans, guidance, and outlook. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, April 29th, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures, which exclude certain items from the reported results. Please refer to our first quarter 2024 earnings release and slides available at ir.gndx.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. And with that, I'll turn the call over to Catherine.

Thanks, Sabrina, and thank you all for joining us. We're excited to share the strong results from the first quarter. With the continued execution from our team, we're raising our guidance for the year, bolstered by our view that we can sustainably deliver profitable growth in service of a critically important unmet need for diagnosing rare disease to an ever-growing group of patients and their families. We have transformed GDX over the past few years, but it's also fair to say that our entire industry has changed tremendously in that time. The companies that are thriving are those that are focused on their distinct strengths. and in our case, it's our industry-leading exome and genome. Our team is working with exceptional focus, purpose, and care to put an end to the diagnostic odyssey by delivering the most comprehensive answers to clinicians and their patients. We're proud to say that we've hit yet another milestone. We've interpreted more than 600,000 clinical exomes since 2012. To give you a sense of how we've accelerated the growth, we interpreted half of those in the past three years and 100,000 since the fall. These exomes contribute to our proprietary data assets, which enables more definitive diagnoses for more patients. That data asset is key to our competitive advantage and it's only getting stronger with our growth. We organized our entire team around three goals in the middle of last year. One, driving exome utilization. two, improving our average reimbursement rates, and three, reducing cash burn. This focus is paying off. In the first quarter, we delivered more than $61 million in revenues, 61% in gross margins, and an eighth consecutive quarter of cash burn reduction. As a result, we're raising our annual revenue guidance to $235 to $245 million, We'll continue to expand our gross margins off of Q1, and we're reducing our cash burn guidance, which Kevin will walk through. There's a lot that went well in Q1. Our commercial and medical affairs teams are driving exome and genome as the standard of care in the pediatric setting. This increased utilization positively impacted our product mix, which came in at about 30% exome and genome, but this representing over 70% of our total revenue. Over time, we expect to drive substantially all of our volumes and revenues to exome and genome, so our product mix this quarter is a sign of early success on this path to a two-test future. We continue to drive market leadership with 80% of all clinical exomes being run at GeneDx. The providers that we're targeting fall into two categories, geneticists and pediatric specialists, including pediatric neurologists and pediatric developmental specialists. We're focusing on deeper penetration in existing accounts, as well as new customers. Improving reimbursement was also a bright spot for the team in the first quarter. We saw faster than planned improvements in our average reimbursement rates, which also positively contributed to the strength of the quarter. We still believe there's room to improve that over time. We're operating with a strong bias towards cash management efficiency and scalability, and we've seen market improvements as we integrate new tools and technologies, streamline processes, introduce machine learning features, and drive down COGs in our labs. Our team also retired more than 400 tests to simplify our menu in line with our strategy. We continue to say that our flagship exome and genome products have the rare attributes of being both what is best for patient care and best for our business. Today, one in 10 Americans have a rare disease, with 50% of them being children. We know that the expanded utilization of testing reveals that far more people are impacted by genetic diseases, and we are committed to serving this growing patient population in the future. Our sites are set on diagnosing all hereditary disease in as many families as possible. So over time, we'll introduce GeneDx to broader patient populations to inform health decisions through every stage of life. But for now, our team is focused on helping end the diagnostic odyssey for as many children and families as quickly as we can. And that purpose motivates our team each and every day. And with that, I'll hand the call over to Kevin.