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NEO Neogenomics

Participants
Doug VanOort Chairman, CEO
Kathryn McKenzie CFO
Rob Shovlin President, Clinical Division
Bill Bonello President, Informatics Division
Doug Brown Chief Strategy, CDO
Charlie Eidson Manager, IR
Larry Weiss CMO, Director of R&D
George Cardoza President, Pharma Services Division
Lynn Tetrault LID of Board of Directors
David Westenberg Guggenheim Securities
Alex Nowak Craig-Hallum Capital Group
Mark Massaro BTIG Research
Tejas Savant Morgan Stanley
Brian Weinstein William Blair
Ivy Ma Bank of America
Call transcript
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Operator

Good morning, ladies and gentlemen. And welcome to the NeoGenomics Quarter Four and Full Year 2020 Earnings Call. At this time, all participants have been placed on a listen-only mode and the floor will be open for questions and comments after the presentation. It is now my pleasure to turn the floor over to your host Doug VanOort, Chairman and CEO of NeoGenomics. Sir, the floor is yours.

Doug VanOort

Paul. you, thank Well, morning. Good to conference welcome fourth like to everyone XXXX call. quarter I’d NeoGenomics

for Investor number Informatics Development McKenzie, Eidson, Joining members call Bonello, and of this me are Corporate Division; Services Brown, Relations. Fort Officer; Shovlin, Manager Bill headquarters our our our Financial Strategy Clinical from of of Charlie Myers including Doug Chief Officer; Kathryn our and our President Rob of President Division; our team management Chief

were phone from Chief morning via Committee, Division. is Independent about Dr. Director Joining R&D our CEO our serving call who members of and is our on us Cardoza, I is Services Lead Director California Succession available succession. Larry Board's Weiss, our Medical of questions this she Special the Tetrault, Also joining address Board Pharma to and Officer help Lynn President of is and Search George of our as of CEO Directors. and Lynn

begin our Before read language statements. prepared standard will we forward-looking about remarks, Charlie the

Charlie Eidson

statements we prove events these incorrect, more undertake and Any update or not in differ are or call of forward-looking statements only statement substantial made beliefs statements. condition of or after their statements, and our our expectations performance, as current operations, underlying and indicated that risks our and reflect risks fact such actual These from certain today. nature to about obligation control. outcomes of forward-looking growth circumstances uncertainties contain should conference call are this are results assumptions uncertainties forward-looking opportunities. one historical any the Should beyond Any and may on those or no forward-looking to which statements which statements. represent materially materialize the today This involve speaks statements by financial of could

has call available Before remarks let Investor a on making know morning’s turn our for website of we completed. copy call our prepared of to to Doug, want shortly Relations everyone section call I will this the back the I that be the after

want limit the number more know within to to we chance in allotted We two for are that order let been that give one has also the everyone questions ask hour of to to person per people this questions going call. a to

Doug VanOort

Charlie. you, Thank

our For the for is environment or in have challenge, year prepared lived one through. one challenging great we excelled remarkable the commenting we NeoGenomics resilience take will We'll character XXXX. reflect this by quarter and in then financial questions today's share morning's briefly I'll plan. call, have review pride conclude four XXXX team and no perhaps detailed announcement the XXXX times about thinking of review the in responded of our I'll full-year anticipated succession that our And Kathryn In have and answers. on a about a some could other CEO results. highlights. dynamic more market on obviously year, time provide how When for. for McKenzie current then opportunities of and was in I'll exciting operational and tested. any NeoGenomics most us

quality labs, Our deserve test. They them. work on effort performing up people their dedication laser kept physicians employees want cancer America high call to great work NeoGenomics for showed delivered on and across them. world for around appreciation clearly among a we our recognizing for despite results going NeoGenomics around the patients are start our by saving that lives. passed and team who specimens to and They in and the I this focus the was to all their patients our process and essential continue is serve. There

their oncologist this in were Yet grew fully a by our for patients confident the throughout reluctant of volume to growth in are and that participate year. clinical X% pandemic was in tests volume year-over-year remained labs high rates to pandemic. growth or revenue of to ready see processing total oncology tests, the Many our accelerate business. to good While most affected capable or higher of trials of a of we challenge, great subsides. return core of in even be There's our reason year as the unable

Our incidence business correlation core of we the the rates second year. a in of times recovered volume And nicely COVID-XX direct at lower saw test higher of levels cases. half between

that strong relatively growth under addition, January, measures. in In areas restrictive less were in we achieved geographic

While like the California and were where place. we saw areas in negative in growth Northeast more restrictions

for nationwide increased quickly unfolds. volume of open. volume entire of more more oncology of all Demand and our we're disruptions that in The the year generated revenue South confidence fourth in XX% grew regions we levels giving XXXX and division alone higher of XXXX. Southeast, Florida the XX% this vaccinations Central month may services rates us incidence will lower growth quarter And country to is return allow the and January core our despite as and it to Pharma during did Midwest, in achieve rates the division Informatics combined future hopeful Our XXXX in than strong. is for growth us products when

Interestingly, to these areas service five and just were size next minimal ago. and years fastest Our growth generation of sequencing, product Pharma in continued be Services offerings Informatics.

nearly remained maintaining in books XXXX, XXXX Even year, million the with revenue. we profitable accounted drivers these finished volume year $XX the NeoGenomics entire disruptive full growth for adjusted a infrastructure EBITDA. for of a of cost core and on close and one-third we three As despite

significant Jolla, a trying in Oncology Inivata California acquired have even oncology in over of growth Human Longevity modified We minority and are and made most marketplace. competitive with the La We results. both We're investments or developed the these in proud organic assets launched financial position of made in We of we and strengthened XX our partnership inorganic. proud tests. equally times, that established internally in investment these strategic

members do to a help We to the laboratory endured, see worked hard we all continue America as in continued our through scores. our company build importantly, PCR XXX,XXX performed the COVID-XX to in our and our quickly value success. tests part of and demonstration facility battle company employees our perhaps precious resources most customer we support team times pandemic. culture We culture we for organization. We also invest starts and difficult Carlsbad value reallocated And to and have to positioning survey a satisfaction with know the that a our our that in over

at to for even increase net future Our organic promoter This bodes and critical scores pandemic reached high continue division score XXXX during the time our in an XX. well all growth. net promoter

now final a was The for good increased a quarter of quarter to XX% revenue million. Let's to NeoGenomics. turn $XXX fourth quarter. our XXXX record one attention Fourth the year-over-year

was nearly Importantly, in fourth core oncology our year-over-year quarter XX%. business growth

that pandemic divisions. first quarter recall the saw was growth time three may testing, the for due You year-over-year entirely revenue COVID-XX almost since all PCR fourth to with core our the Quarter began, growth down. In actually in oncology we core of three

oncology Division record. year-over-year Clinical growth driven Services four sequencing grew on Our Quarter to generation up highest volume by X% in quarter of core the XX% next revenue Pharma revenue was XX%.

currently XX% capacity. believe lessened oncology Quarter in a as and area We revenue. X% proliferation now Our in in increased significantly quickly PCR the an that and capacity nearly test as on as the in a testing role this testing reducing year-over-year. paying rapid demand increased of of core exists quarter, core PCR overflow laboratory. over sequential lieu excess revenue growing is declined off of XX% clinical COVID-XX represents are basis our sizable PCR tests services COVID In four, country, testing our this fourth segment investments for volumes

generation other we FISH continued in sequencing testing with next grew While to testing. growth drive particular services nicely, modalities strength in

strong our continues to most the acquire unable While sales new growing volume in customers, supplier challenge members the it's volatility to affect for field. as was be frankly, good a our volumes ability a And to time we and variety disruptions. turnaround to see levels team us, test service experienced actively of remain again, pandemic maintaining as

extremely share. And a customer quarter in that we our reflects increase our strong. remained clinical retention However, slight market volume fourth growth rates believe

Informatics record new contracts. segment revenue and quarter Services in million which includes signed the backlog Pharma Our of bookings fourth had with $XX over ending

diagnostic XX% an which benefit includes our lab companion over exome a next our including China grow. ago. whole oncology diagnostics at we partner to from and Our with place million; sequencing continues companion Services, now year We continue to backlog our in In now increasing new in PPD and of $XXX pharma. projects in positioning investments Pharma our than expertise stands of generation active sequencing XX alliance signed domain as contracts one from bio global global increase our have greater footprint, portfolio to and

our continues I’ll mix. the our results. fuel business Officer Pharma worldwide bio it Quarter financial the to to Informatics been larger of well-positioned as has demand. and discuss details list overall including growing The four rate McKenzie, Financial become it is turn in share and call Chief of revenue some products Our is Kathryn corporate pharma over our other to stronger growth of for is to the of ever increasingly industry than a services now

Kathryn McKenzie

Thank you, Doug.

revenue overall highlighted, million. $XXX Doug As XX% grew year-over-year to

strong fourth and our Division XXXX. test was Clinical NGS, nearly $XX excluding from to COVID-XX increased X% Pharma per growth in increase million down testing million and of Clinical the from $XXX flat Informatics. X% of year-over-year oncology driven by Importantly, and quarter quarter. XXXX return in contributed last revenue over PCR growth $XXX revenue Services up with Quarter is sequentially a $X XX% Division core three. COVID-XX revenues of from revenue testing

the testing test driven initiatives. are volume product this relative continued mix FISH in rates. results is favorable reimbursement next services sequencing is generation by and favorable a there pressure, billing of modest is and mix which The at and higher growing offset While change improve by much reimbursement from

of from all down XXXX, per about revenue full-year $XXX X% was $XXX XXXX. test For for

Research volume XX% quarter, clinical As $XX in year-over-year returned Doug a while pre-pandemic quarter the for show year. revenue grew increase to the fully to million continued $XX during record mentioned, fourth have we and strength. XX% over the increased rates. related Services revenue trial not And to full to Pharma million yet

year-end for drive diagnostic to backlog that Our growth XX products. evident Pharma our clients to a pipeline. in are through interested in led $XXX the over Informatics is $XX accelerator. of a is bookings our And value projects million. of also programs sponsors for companion Record in quarter our active ability million our increasingly

the quarter very infrastructure. recovery of we improved XX.X%, significant in gross cost impact a during optimistic the which margin cogs We in the the approximately fourth Gross of points quarter reflects this primarily beyond. and revenues Pharma continued and of XXXX. for fixed on strength basis look sequentially a the both about reflecting largely XXX pandemic, year are XXXX as Clinical forward business to XX.X% was Overall to margins the second

margin gross These margin into Jolla investments. have in and Division, certain includes capacity our before, international our La grown we laboratories. rate our fully including not investments locations As longer we discussed our we many Pharma have that of Particularly have support our million $XX in Operating and the term investments and continued growth facilities, and million new $X and for Jolla with of in are our to line support including an expenses long-term Informatics, La and increased international strategic year-over-year expansion. priorities. included in backlog and bookings yet

high technology travel. of QX initiatives businesses to significantly record by We higher offset our have well The million from level $XX increases reduced relatively and as marketing sales COVID-XX also oncology a higher driven PCR COVID-XX recovery We services contribution core EBITDA other a were and margin in these in testing support partially testing. of expense. achieved EBITDA and adjusted expense by

We to headquarters state-of-the-art restricted million new cash designated securities laboratory additional $XXX balance the Quarter an exited of four for global marketable in million $XX cash in construction our sheet. excludes Fort Florida. Myers, and and and with Turning which

to at have strong January DSOs now with cash and $XXX XX I call four our marketable million this since over We securities. to VanOort. now added will days. cash Doug in financing turn balance the Quarter have in and over back remained

Doug VanOort

Thank you, Kathryn.

business ahead, long-term look remain strength confident highly opportunities. growth oncology core our As and we of we in the

and term mid-teens. steadily back our more that our of in than We core are our business long-term to Post-pandemic, before. volume longer markets the will believe confident short-term not XXXX recovery, Because growth In segment recovery to targets revenue XX% previous financial growth the this from pace return reinstate decided the pace unpredictable pandemic. is target. about of clinical growth to we recover our believe we Pharma of guidance ever There will however uncertainty we full yet. fact, exceed growth oncology significant have formal of the

generate we mid-single the Notwithstanding anticipate and will we Quarter will allow that to uncertainties our that businesses. uncertainty, formal Clinical We guidance resume one digit feel when comfortable the guide pandemic surrounding short-term will in that more revenue us confidently. growth Pharma

compared But For quarter, with last the was severe the test caused shipments year. in weather to volume flat disruptions first week's test of significant prior our Clinical this few labs. weeks

Services continue one We XX% revenue segment expect our be to goal. Pharma to long-term growth -year our Quarter strong exceeding with year-over

volumes We expect oncology in exceed exit now on the Clinical in on track month will that and of XXXX. COVID business and we testing rise half we the rates daily maybe our decline, as second pandemic. to volumes the daily anticipating historical improve With every cases are growth vaccinations the

visit business and and say their professionals potential their for accounts. XXXX only are I development initiatives volume Pharma in the and customers but that Informatics will excited able about our environment Our it. oncology to also leadership again of new NeoGenomics strategic must with work market. management excited in to for Clinical, we is recovery position share very actively team pipeline are that on I'll not for be that our preparing quite of some

planning priorities. I In Our can full we'll advance transactions market were our recall. public the raised to as of in be has we advantage opportunities to as $XXX the equity proceeds. million raise This January, strategic and over have us net XXXX post-pandemic environment. several Both our markets. early able opportunities capital outcome a position team terms oncology was more convertible of weeks busy assess leadership quite financing the oversubscribed of been the in company successful our a to we competitive executed in as and positioning and M&A in These first that debt as been allows in take be we

In there. precision and announced other strategic Informatics collaboration medicine and we there Division are out addition, opportunities one a we in with many Parexel like believe future our this

have the of In several is opportunities of months transactions. very XXXX been first be two As you active. there are M&A many aware, may market also Other the alone available.

M&A recently XXXX. to are aware disease is option La Longevity. Many a in history novel have you Human purchase a of success with business MRD is and Jolla We Clarient, that on build that technology Genoptix to of to shown success want long have be a Oncology with test of or the minimal company Inivata, We that highly developing we an residual with sensitive. that

nicely we’ll We're by for minimal build While foundation diligence well and no have as are decisions very progressing that radar encouraged areas been inorganic on we is made, on in the partnership very investing assay sustainable and our our disease. strategic organic also that as growth. residual support growth rates

and processes goals hard working addition our for year, class XXXX on levels. This based world established focus on done on aligned strong to plans, a have culture, and now for service the decade. over a We NeoGenomics incentive objectives and further our we've in be we'll differentiating as

that leads traditionally net times. them Whether NeoGenomics its and has Our very high sure thought make to liquid retention clients. innovation. important competitively well-positioned privilege years future. and had the believe for Mallon industry-leading a NeoGenomics number the had RNA customer honor well to for has a been. to are have very CEO release We're of for now XX and stronger promoter moving I've is spent in is and where treated grown and He to next AstraZeneca patients circulating serve team best CEO selection press and CEO NGS The issued that to in score of a want that Mark rates it's Executive that have company introduced CEO. confident pleased of this Rather but we be Fusion year nicely ever as years even next I opportunities we about described great precision number advanced exciting I our time right that the be as I Turnaround time the record. is are and personally at the offerings of of and that, earlier. been we morning to I We're enormous discussing Succession. great so I NeoGenomics. will process, deliberate better. transition and a XX and also We and Mark's company. track into the strong We believe NeoGenomics. why can more very repeat world financial me faster the Senior the NeoGenomics deeper Board lives has company tests. believe this capability very lead Mark or than industry. succession successful And DNA We that a CEO it a want if and transformation tissue and is save working healthcare. panels topic: provides on for the grow monitoring Pharmaceuticals recently based career and some the detail that recently therapy experience class a make for Board as we're led to Directors helpful it will brings for for by be informing a After are CEO might tumor he years. is We will so very disease search a excited succession on testing, than and Mark assay, the and Ironwood an the thoughtful rapid and have turnaround that these be the company. residual are XXXX

positioning. and Mark into important deep disciplined competitive a keen through has of Mark intellect in strategic is globally. with a intrigued He both operational experience has impressive very and and has That the strengths. First, in record a growth in U.S. broad NeoGenomics leading experience. track and execution is strategic that also He NeoGenomics future. demonstrated the

to strategically, my role, He I heavily in values looking Chairman. Chairman CEO rooted with closely success. his XX. forward an excited continue will have and Executive conclude about serve to many next who leader it investors proud continued authenticity Board ability our transition. most very In in is a of We're CEO businesses. impressive our our to personally and was challenging that to and a importantly, a and analysts with that and And the Mark people. our growth in is fit I'm meeting care. Informatics company drive to operationally to our patient officially for NeoGenomics of Mark he out us I'm confident and deeply vision, great stood culture market to to Directors to and the believed XXXX working so. and truly continue and our becoming and do in with a I'll as formal by will is importantly employees our great for Clinical, NeoGenomics company. opportunities truly for to that that of commitment values, our is our our year our and for and diagnostics. role performance in And an on involved remarkable smooth remarks Mark forward continue as team April Mark looking join Pharma has was NeoGenomics align of a fit I which great and and teams saying He to interviewed him ours. while And culture. people terrific for ensure team, work of and outstanding see as lead developer exciting will our oncology was is being selection critical You process NeoGenomics this I'm in our

diagnostics and diagnostics enhancing life a around increasing are the opportunities in ahead. before. of a place and science improved oncology of survival and tremendous therapies be than for quality to ever proliferation both is in Oncology exciting world. patients more have technology We cancer Advances

advantages even and our proving working diagnostics lead to Our to to the are significant that offer now company. position the hand to the pursue Charlie in to through we answers. us leading sustainable become we competitive stronger vision leading position competitive some world's over Eidson questions I'll as call is and make oncology market

Charlie Eidson

question, like At this please like call submit to are to webcast if a the if we call Incidentally, listening open to only, up this via would for point, conference you questions. we will the end the matter email if address calling to hasn't your during addressed the already at free charlie.eidson@neogenomics.com our us at by questions session feel Q&A been and list. subject you'd

ask we one may to questions would Operator, As allotted of hour the mentioned within and call, beginning limit that everyone two, so you we the person hear may to for the open their call call. to like now each from this still number the of for up at question. keep

Operator

David, affiliation your you. [Operator is your the Please coming question. line Instructions] Westenberg. Thank is live. pose first question And your from and note David

David Westenberg

I getting with I'm can you thank not with to mentioned. of you for on some pretty radar Hi, start-off sure is want the question. say products. you the taking that attractive CRC exactly but kind space what

maybe Thank what specific some you think wondering product if terms of I have if if cancers? was some other talk a you the market dynamics. maybe then us of in know to reimbursement. could can't quickly And transitioning kinds terms just follow-ups? about give launch of talk in you this see CRC So, you. you from And Do you of you can about about timelines of couple and I

Doug VanOort

Well thank for Thanks the question. David. you,

you that is in job a are in our strategic great charge As partner radar doing and assay. development they a and Inivata developing by of assay know,

intended is around us space for for patients residual that believe very We for disease radar really and attractive also a is the which minimal world. encouraging very

planning is reimbursement development this year. And of Inivata this they're at as is to to near go think for would in future the MolDX some development year. probably said, product to what as the process. I currently later apply continue they in-charge through do the point we I of But like

a of sensitive most market types tumor Inivata's And target developed. product dynamics, aware breast, solid potentially tumors. of that that believe the other disease number being terms like In that colon would of assay this believe We that's is there variety including minimal are we lung, radar residual a a are assay a we terrific is and the the market. of

and We're about with radar Inivata very the optimistic this for So, us. assay. about our relationship is encouraging

David Westenberg

that go I'm regional very commentary you of to Thank Great. going in gave to you dynamics. back terms much.

and said more Could little what demand? Northeast a West X to said you it represent some might of dynamics. think X pent-up terms give just I'm Coast and represent, I trying think maybe if region's for the it get back as that in like other lot you fact there hop a might there economy if the if wasn't and the of analysts? look a reopens on feel XX% XX% the pent-up you indication I parts So queue you in of that have that. bit after did of demand in and I'll

Doug VanOort

bodes David. made Okay. less in markets. that experience. hard It's But a that in the Well, was us of demand just are much big country that of to January and the the more-or-less the bit our that we we're surprising volume freeing as the areas pinpoint the see of as for Clinical Thank a of that growth. you, that restrictive COVID regions observation month was difference up our much and a exactly correlation we growth the terms for about restrictions to us. growth to be volume restrictive might to our volume And of And COVID XX% that there's decline how between in continue actually might well cases were little unfolds. of pent-up how Division be year hopeful

David Westenberg

retirement. on much, very you and Thank congrats

Doug VanOort

Thank you, David.

Operator

is coming question the And question. Please affiliation you. next your your Alex Alex Nowak. mention and line live. from is pose Thank

Alex Nowak

Congrats Maybe another lab and looking experience the someone you up Neo? transition What path Neo of to about And Craig-Hallum. the company? just Enjoyed obviously about built you've Mark. to were does Doug, from working what Great. with prior it in signal a lab. impressive transitions bring team your the on pulled does Pharma actually the versus everyone. it signal start, team, Good new straight with the is the from how Perhaps to in sort for on how Doug bringing the or Alex future guess, does expertise this Board space. through everyone. and walk very diagnostic I you you This welcome morning,

Doug VanOort

terms CEO. Alex. some different There the script, looked our for question, our experience of number us, Mark's AstraZeneca. lot strategic of were in experience in a we he at history you special is operational culture and that selection experiences, the with mentioned next thank of skills we're encouraged very Well, important of experience. has But a to obviously that deep healthcare very experience, of in variables I and

but is also know company. one a leading you of the companies as only oncology not Pharma AstraZeneca, leading

lot has of in so he like -- Informatics minimal next And the disease. about Division, oncology. And in are Division past, our generation talked what we've sequencing Pharma experience These the a things our of to us think, I his abilities drive And growth the undertake going those and help in for future. that very opportunities. kinds with to experience products are us positioned outsized strategic Mark residual is nicely

about and mentioned Mark. Lynn we have other our she is I some Alex, here Now, Committee Search also Director. Lead joined comments as who Tetrault have is Independent And Lynn me may the on

Lynn Tetrault

Thanks, the question. thanks for Doug. Alex And

I'd of him XX Mark for privilege had for XX is, years have what years think and start-off I with saying the at knowing I AstraZeneca. work

is. the and the a build what drive to of and and he performance strategic is with continuing the unique firsthand on record no the be seen to he's what capable delivering. excellent and have experience ensure think I strategy we've to real innovation, financial delivery continue operational follow the to Board's of So, intention culture I been fit is growth And that that terrific Board is Mark makes what a and company And tremendous confident a strong great that. strategically incredibly am know the track I've bring to culture. it entire I He will he'll I is. individual an really bright, in confident leader that

bring global his leadership Neo perspective be to a will Pharma experience. and in broad that experience his think I helpful will

be the done also company. will about think is we I the the Board to-date. But, follow excited the that advantage strategy opportunities to continuing I and a tremendous for think so have

Alex Nowak

Neo; And we a a with in a as of maybe dollars think unit pitch can obviously loss out lab help the going large the unit to revenue gross your own in be or you its Informatics to build there more could more share; appreciate its about unit standalone out some build a later But oncologists on be I there's using its to own profit to should the loss being tests; Informatics business help term but more out out specifics later? or generating market the piece, is that capabilities that. you That's as expand don't give and that want business? to out Pharma I great, just the primary in Informatics with unique diagnostics. Informatics And mean negative and to it generating a help with about Neo? bring And

Doug VanOort

I'm turn say and for to But also Informatics for us revenue Bill a I and for It so grower Clinical profitable us go is is Division. that benefiting to it about excited I our as Division independent But might want we forward. to our think be reasons. Well, couple in we're going over a that Pharma an second.

very it little But there? is that the a So, you much we're NeoGenomics. excited products building to color And rest about of do with Bill synergistic want here. the we're give

Bill Bonello

Sure, absolutely.

clinical trials. right at will a least they are up with site as to to core, patients And the number for industry. the those on actual patients to anywhere involving design tools is providers. trial the projects clinical out Pharma them with help that screening we're them or ensure from primary selection most patients So of medicine, that of therapies building The different to follow their the Services working and for today of of trials Alex, precision some involving at the we're tools get customer get access the services

testing Some of that and to market a commercial understanding dynamics them access the trends and impact therapy. launches and diagnostic particular involve might

to with basically way they're of ecosystem. to that more that the at where today throughout lot formulate or standpoint. either using in commercially data will them done is broadly sort are drug sort place being cohorts doing from background the building of of the a automated of them the development tools we're sort information future A Pharma allow level tough plans and of investigational broader oncology Some but a we're build work

down developing. the if We're road. I revenue. generating generating not what one basically extremely profit disappointed we're that's will absolutely we're for be good So, And

Alex Nowak

Thank very Okay, you. helpful.

Operator

you. live. and line Massaro. next affiliation your Thank note Please the Mark is question your is pose from And your question. coming Mark

Mark Massaro

for guess you of tenure the thanks the you in share at is think time NeoGenomics Chair? why down congrats role and to guys, I moved on Hey questions. strong CEO step CEO. right the I now Doug, as Executive guess really for can taking sort a you to

Doug VanOort

Well, good morning Mark.

it's I been think it before. company stronger The the ever than is right time. is

We strategy. have a very good

next higher the to a of I great company to really think is in a performance. And company a leader very to time for experienced level it's new the take well-positioned the bring future. the

I are it's can be better transitioning for come I a that's opportunities thing have think to I when time And really in we it's things In a a We and best tremendous the And it's think new those. it's ahead. about case, thoughtful decided my a company. good retire new great pursue that in CEO. person so that a for shape think the to I

Mark Massaro

understood. Yes,

least how to around commentary the related related and I shifting were would up question and it's your year-over-year. point-of-care. from COVID at testing then expect offer away margins guess down guess So, I help? margins what expect COVID you XXXX do to gross is your to shifting I long have certainly COVID do to qualitatively, to go extent you maybe and gross how testing another that to in

Doug VanOort

at our had testing COVID half by business. in core amount declined in did point, was make that altruistically happen fair never we were We lab. Mark oncology to COVID always about testing our have of this three But to overflow Well, a be this for that to wanted doing this and an did buffer We volume our business. in relatively it four. primary Quarter strategy Quarter decline the some of we

occurred. four COVID sort actually testing the in of as resurgence occurred Our Quarter

probably so And testing our COVID so as will the a think now cases if be we or you as resurgence testing can in the has And not business. declined, COVID future unfolds, that for in imagine don't COVID I us see month to then we as business. next happened what has declined, have

gross say margins. would Kathryn EBITDA testing in necessarily there our us as would testing impact -- want declines, forward. that for In margins for helped may an not be margins, just terms expect to I of us that would EBITDA our our here. COVID so But COVID going weigh we gross

Kathryn McKenzie

Mark. margin gross perspective, from And Yes. a

keeping our pressure about for thinking the the assess mind in we're core have investments the areas But qualitatively, additional Pharma and and Just do have gross we in margin business. QX. on continuing to improvement in and capacity the on we continued experiencing are volumes pandemic in

the year. room get continued for prior year, the over through absolutely we As there's rest improvement of

Mark Massaro

you. Okay, thank

Operator

Tejas, is Please your is your next And question. from note and pose you. line your coming affiliation Savant. live. Thank Tejas the question

Tejas Savant

you. morning. for as thanks your congratulations with stage was this the pleasure of a all, next guys, It Hey, the working Doug, Chairman. on Executive time first

In is your the to digit terms that fair starting guide COVID of a capacity of essentially you testing? that around just field? are in goes million excess XQ in comments assuming from And it zero given the to think low-single contribution XQ here, just here sort

Doug Brown

Doug it’s Hi, Brown here.

that, the as say to has testing. fair said, it's PCR think had pandemic subsiding on the Doug an I impact

quarter as that mentioned to about think in down hopeful when business. not we're you that the we're year evolves, the rest continue As can we and go that envision of that Doug the

think I some assumptions that reasonable you So, off. may pay get

Tejas Savant

getting there? here recent phlebotomy terms Okay, the good. has I launch, in on color, as in then year And a back of launch terms mean just getting launched you liquid know biopsy November, it's share two ramp out you to That's other you that but can offering the assays in word mobile volumes helpful. relatively the helped I anything and of

Doug VanOort

test. have Yes two Inivata, we biopsy products. liquid InVisionFirst-Lung and Tejas, then our enhanced just own so and knows, test, cancer everyone The

about difficult have that are -- of had feedback since And readily little get a our unable a had our and to folks offices. then very been market have from the due clients We we those we to both sales have it's good uptake oncology tests. into

that we've things So, for we we offering. which done offering. significant our is XX% in know we've the mobile impacted further to of care biopsy. think biopsy now launched things. have We've had just a changes But uptake improve And to liquid some are reporting improved going has offered some made and clearly phlebotomy, service our we other and community have occurs. we number where there the our liquid penetrated get play and cancer out in we folks The in penetration. the hopes of the terms high very under really have more probably market field, as or community in And you setting as of for

So, of got we a lot room growth. we've for think

Tejas Savant

Got would here made your one on sort it? 'XX. pursue sort Can front interesting and sort lot what think what the and very would of where it to one you more make for final sense to comments highlight plans be be And Doug, whether or those Inivata like of me the two a out of build the kind it's rather there. than buy you on capital adjacencies of beyond then opportunities you M&A would on I the thought deployment. year-end three assets more

Doug Brown

Doug Pharma, Hey, Brown we've Tejas. as had say, is tissue the focused It’s whether narrative last NGS, Informatics we're or really it's I for would liquid. the again. year on and

sequencing the us exome business a back put Pharma in If on look whole strategically in purchase you the thing we the side. did last

about and scene Pharma think both high in growth areas. to continue We Informatics and areas

the that's focus. So,

Tejas Savant

it. helpful, Got guys. Super thanks

Doug VanOort

Thank you.

Operator

is line Souda. question a the Puneet live. And your Thank next is Puneet from coming you.

Unidentified Analyst

us our side dig Westley I extend morning. if have liquid the fun me. this quarters we more in and impact hoping was wondering XX%, easier forward. the the a to the quarter. what think Dupray of then obviously coming It's a up launch to is there, what guys, impact quarter. you years well. talk to could to onto strong expectations few per cost biopsy I on as test. bit Hey, comps that's mean, over the revenue your been next the a I about just for I some in team's are Puneet want congratulations we have NGS of am really moving this and I for business Doug few the actually can expect just

Doug VanOort

our lab next have Well brand a in comments sequencing. made it, by the next it. for sequencing we're next a a continuing we Myers for product And sequencing make which the is to changes laboratory nicely. and grow service. fair Hi line Westley, new to thank continuing new generation improve generation to of question. think changes you We're to generation lot to is our We've going investing amount way, Fort the will Yes,

and we East we have then have, As Coast West will capabilities. Coast

gain investment just The the it's the I generation just think R&D really going testament the think development in And facilities I we're assay is well that fusion So, we team as traction continued well. as in to unfolds. as sequentially sequencing. RNA and recently as Dr. launched next launch going our in infrastructure. year And mentioned, biopsy liquid is investing in think a I Weiss that

area to sequencing area sequencing mentioned us. been us. And in that So, just has We us will it will traction well. continue think also exome that be a it as think next high gain high generation continue Doug for for growth our line We a whole growth to for Brown Pharma.

NGS bullish pretty we're portfolio. So, our on

Lynn Tetrault

higher a will at contribution; we're cost than And test. our even thus faster in a and revenue test in looking and higher test various carry per also carries They those are Then though well that the Pharma our bit NGS overall offset perspective, is modalities. a growing. per treatment other growing margin NGS cost AUP per your but all as

So some on modalities and that the because significantly of revenue a just growing. that higher increase, overall are realized impact to AUP time our test take be a it reminder, all as increase per will AUP

Unidentified Analyst

on weather really how throughout backlog about forward. here. And I you. to it moving think Pharma. really can thank Great, in we continuing strong year mean, then nicely Really, just of grow I growth the the is seem second to year? the half just storm the guess

know And comparing first in last about the of XX% to get -- first mentioned the growth to probably higher -- much that's I about a conversion. XX% just quarter, we're if you than mean the trying trying think think the you to more at mentioned But I I I accelerating. you quarter But rate. core quarter. year business. of backlog run mean, there fourth

So, how forward. just looking any expect to for we moving perform Pharma you. can on color Thank

Doug VanOort

job. Quarter backlog our backlog impact has combined year for the a ended will about about Pharma. should business a Cardoza is Pharma really growth one million is great I contracts, the want think team our I in Wes and the may might of seasonality pandemic demand has Pharma Yes, the Informatics couple Pharma to added bit some also. the a on and is is backlog to -- to doing comments of We conversion. lot business very in want is there said, the impacted But new traditionally the line the revenue of growth George make but make a lower sales business a do George, backlog converting. mean, strong. XX%. say two that the with and continues previous Pharma of a opportunities targets I we're our year very or Pharma as And there. long-term our you revenue want next to long-term growth little our the exceed somewhat. think And for business that I been about I $XXX conversion? comment And at we excited

George Cardoza

see year-on-year you that is in no I starting it to absolutely. Doug, obviously growth, Yes I certainly. XX% mean, hope convert the

So, year, and of you growth. see look I half XX% the back you if at think the

growth in XXXX. more back we and line that's in So, XX% have

that seeing and but little so. the lifts has rates. there We're they're enrollees the drag pandemic not pretty quite are we're But enrollee hopeful think trials. The get be or And that anticipated some would some been is out back are active the to certainly is people side on strong. in enrollee hearing of still bit an there people having of is these sort but we that the Informatics trials. a counts still impact frustration getting strong a of like certainly trials high growth still certainly and the can I research and we pandemic clinical So, very side on

I So, think the but little optimistic lifts about COVID still half a of very headwind second when that the of we're a bit especially XXXX.

Unidentified Analyst

you. thank Great,

George Cardoza

Thank you.

Operator

Jacob affiliation from is Jacob is live. line your announce Please coming Johnson. Thank your a you. the question And question. next and pose your

Unidentified Analyst

is Mason for Hey, Jacob. this guys, on

Just a few quick ones from me.

on a of First around excitement biopsy. lot Inivata, liquid

investors here. think understanding timeline better are in the interested I

make timing we a and potentially are decision? the you see the to should you about things how what to of the company So, key think buying need

Doug VanOort

we a Well, have great relationship Inivata. with

the we our and folks folks We Board between Inivata Directors Inivata. of have the our commercial seat and and on terrific Clinical Division have Division operating a relationship Pharma in and a

as it's right being and InVisionFirst have uptake commercialized to with now, to that good We like is how us. on we the assay the progressing than and pretty InVisionFirst-Lung progressing. us believe understand But Inivata development We more better MRD assay progressing. assay. insight assay the a the by that work is So And would that MRD is nicely. very to how frankly that interesting is

option decision dependent our the on our for that residual terms be in exercising progress company So, of disease. largely will and development with minimal acquiring the assay

Unidentified Analyst

maybe just And one it. then big picture Got question.

your As how we at liquid and come should couple Services business from your Services legacy mix Informatics could look years, about we of compared a biopsy? to we How of much Clinical how be think revenues? expect could to large and Services Clinical Pharma

Doug VanOort

how Well, we've will I would different we think answer in I some question two hint to maybe that. say ways. as And to about that give that tried

organically and the inorganically. is is other one So, then

place. put you year we to good and and So the occurred infrastructure margins organically, last our It's rate why for we've we other which think of grow we at And see see at areas actually least have Informatics of Clinical that numbers. would I and combination margins heavily And could you Division. that. some in is in pressure invested the very in the Pharma both twice evidence the as on gross expect in

Pharma and speak have in a could there. third that think and lot Pharma those the few possible you to a it's I think addition be least of the investments that strategic about think And mergers would Informatics. years. when in growth the I we of revenue also to fuel we're rates I a and like boost we acquisitions that can want a though, and sort growth to we would we at math rocket of think And do In working the on as combination to Mason Informatics

Unidentified Analyst

for it. taking the questions. Got Thanks

Operator

live. question your question. your Brian announce Thank you. from is Brian, Please and coming line And the Weinstein. next is pose your affiliation

Brian Weinstein

go people on good Doug in congrats there. guys, Florida Hi transition. because where people Chicago in to sure the not retired down I'm morning.

come So something a that. months actually us June, in it's like nice year visit to or for July and a few where

So, a how curious of this. and become question guys on I'm curious, there. questions Pharma by have made lot here of these others Services on a mandates being I'm you a here. competitive investments series

So, of what can curious or And how I'm losing is and winning the you that with becoming the deals that then about changing? talk things about dynamics how also are this determine these you talk partners really competitive that's Thanks. in going you or kind partners terms the more of relationship signing bring existing these you been depth into new with recently. you've the mix? of here? Are deeper Can about

Doug VanOort

I Thank of your will you, And sense humor. Brian. miss

in. I'll of crack a George maybe terms think Pharma weigh In this take can Services, and at I

We list in the broad of fairly and list have working oncology list. oncology major And we broad are on the of a It's are companies broadening very who clients pharmaceutical drug a development. both deepening it.

have one business a Clinical is only the menu Pharma. So, of the also aspects developed for but not of we comprehensive that for

trials reputation, of and offer modalities Pharma. established levels in a research in. they to other we other and modalities an that that participate service test and different have commitments to test for pharma allows a And our engaged lot companies once kinds we've of understand opportunity are So, our us

George, make going of client other list deepening there's you lot think client We're So, for both I forward. that? And I broadening list. the both. would say comments do want any about to it's and the a room

George Cardoza

what you go typically our trade challenges. sales people. shows, team absolutely. heard meet in I earlier, they do and think Yes, Certainly to no have they some did XXXX

have zoom deepening certainly is be successful And everything doing we that's WebEx. they're So, of I via the have our nice to customers. of able relationships. been broad list part very and they think lot a But a

we accounts. well. bit get our have a extremely more. are some of these mean, I them opportunities back But brought new of working I in a lot in So, to if for we greater been really travel and XXXX we that And customers get share did things there think hopefully, job to a in team can normal, good as has hard.

the sort the to push portfolio. think in some the in we to were do coming half. I into relationships growth our logos deepen able especially new and think more XXXX, But bit you what little a maybe second I of see that's do enabled You'll

Brian Weinstein

want Great. focus differentiation you on you're just turnaround that Doug And labs both investments specifically on having or make we simply sides country then on service time. the some to talked Is about their COVID mentioned that that this of with are chain and Thanks, there. then Is is all issues supply there behind short-term? the guys. some now you that making that related other also impacting investments And in you? all

Doug VanOort

occurred our in thigh the Brian, I the even business? and terms kits our how gloves things been and like and of they extraction it's chain What's a some and disruption of logistics mean of were whole downstream with supply number logistics things there and other in challenging interesting, pads have Originally, disruptions frankly, carriers.

kind there looking in been So, disruption more of going environment to we're forward. operate has and much a stable

to team along of lot also pretty a of survey activity, data. analyze we Clinical are customer customers Pharma a our attributes. I I different and And number whole about get we what score. kinds don't a we just rigorous in year. our try one get Rob do times promoter surveying times rich score of and we we and And pour through team these I think a And our mentioned better mean survey Now, of Shovlin variety data. a net can couple of

turnaround too. but And lot attribute important a others are there and of probably most important the time so, an always has been perhaps

fundamental system to continual service number on So, other in laboratories a we're work to differentiators. turnaround part our our time for working continuing reduce changes a on that's it’s of of really quality improvement. of some process us, continuous of And but we're

Brian Weinstein

Great. you. Thank

Operator

is and Ivy line the question is announce your Thank Ivy from next your Please affiliation live. your you. coming pose Ma. And question.

Ivy Ma

wanted retirement, plans just Can Hi, capital likely to if Thank strategic region? your either this your deployment how far in terms the strategy you, if BoA. the metrics you geographic expand in and any on does the of question. all on change on you. Congrats for focus the financial details is there's M&A I appreciate any with succession Ivy to taking the or from so on follow-up and and Thank change Informatics. plan Doug. Pharma

Doug VanOort

and comments you make congratulations. and of then to over turn thank maybe Doug I'll it Ivy, thanks Well a couple Brown. --

our we've First talked a strategy. with of all, about lot Mark Mallon

strategies. and as our rigorous And objectives pretty we the But a XXXX. goals and coming is lot our put objectives year. to at in and I a we change we strategies to our and goals execution going all. paper have our add then of Mark and goals place lot down for I think for the and and point and currently We think have goals that at that operationally circumstances as of and have well we Mark And that strategies on we mean, this we change. our to both are strategically them define process each a dialogue embraces have don't them goals and about them changing obviously

so, will in embraces place our And strategies those. continue. and are our that But goals Mark now and right

Doug Brown

Brown. Doug its Ivy Hi,

strength. about what a comments you of echo says about leaving I also when So, Doug and company his would in think the position

So, operationally also and you and about strategically. culturally think

the fingerprints he he what most to about and get Now, Mallon I a put a his when But brings product on think certainly about and company new going dimension. mentality. Mark is excited brings, Pharma I

convergent this about He's you assay product Pharma and products, also in global. can and and he's service bringing seeing launched think So, you're our where company And this the MRD sector. Services. of go something

that we're really but can to help as inorganically Mark well. organically trying drive So, mix

So, act I going also strategy. he's in of it's more but to that the think same

Operator

the Thank remarks. back call we hand for now And to will closing Doug you. any

Doug VanOort

investors end And X,XXX company. world commitment as us very your NeoGenomics team, our considering would recognize are morning. approximately this for class thank the on listening want you for you Those call, oncology to Paul. our investment you. members company, building you to a or we dedication an in NeoGenomics. interest to that of you team we of the world diagnostics time thank I are Okay. and I much, NeoGenomics behalf around Thank in your their for Thank this like And joining

Operator

call. gentlemen. and Thank conclude you, This ladies conference today's does

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