NeoGenomics

strong positioning provides us with significant opportunity to carry our strength forward into the second half of 2023,” he said.

Righting the ship

Under new leadership, the company has worked to right itself. An industry veteran, Smith has now been on the job for a year.

After the departure of its longstanding chairman and CEO in 2021, the company faced myriad operational and industry challenges.

The second-quarter results included amortization costs and restructuring charges that it didn’t incur last year.

NeoGenomics began a restructuring in the fourth quarter that has helped to reduce its operating costs, but they’re still running higher than last year.

Operating expenses rose to $90 million, growing 7% over the year, in part due to higher payroll costs, which include a larger sales force.

Cost increases were partially offset by decreases in professional fees and recruiting expenses in the quarter.

In an earnings call, Smith said he’s proud of the “accelerated growth” the company saw.

“It’s a direct result of the strong execution by our Neo teammates and the growing demand for our products from our existing clients, as well as new customers,” he said.

Moving forward, the company’s primary focus is on its people, culture, strategy and execution, as it works to drive growth and value, and return to profitability.

“We have a great team at NeoGenomics, and continuing to enhance this team and our strong missiondriven culture is critical to our longterm success. While much of this won’t be visible outside of the organization, this work is foundational for everything else we do operationally,” Smith said.

Improved outlook for the year

With its better-than-expected performance in the quarter, the company revised its financial outlook for the year. Losses have been narrowed to 28 to 23 cents a share, and revenues have been increased to $565 million to $575 million for 2023.

“We are well on our way to becoming the leading cancer testing information and decision support company,” Smith said. “We will continue to build on the foundation we have laid over the past several quarters to deliver long-term sustainable growth.”

NeoGenomics handles cancer testing for pathologists, clinicians, oncologists and hospitals throughout the country. It also offers biopharmaceutical and clinical trial services, serving drug companies and others seeking to develop and deploy new cancer treatments and therapies.

Last year, the company served more than 625,000 patients, with more than 1 million tests ordered.