GeneDx Holdings Corp. (WGS) stock surged more than 34% in pre-market trading on Tuesday, as the company reported strong fourth-quarter 2024 results that exceeded analysts' expectations and issued an upbeat fiscal 2025 revenue outlook.

The leading provider of exome and genome testing services reported Q4 2024 revenue of $95.3 million, up 64% year-over-year and 24% sequentially. This comfortably surpassed the consensus estimate of $82.23 million. The robust revenue growth was driven by a 101% year-over-year increase in exome and genome test revenue to $78.8 million.

Adjusted gross margin expanded to 70% in Q4, significantly higher than 56% in the year-ago period and 64% in Q3 2024. GeneDx generated adjusted net income of $16.8 million in the quarter, compared to the consensus estimate of $2.9 million.

For fiscal 2025, GeneDx expects revenue in the range of $350 million to $360 million, representing growth in exome/genome volume and revenue of at least 30%. This outlook exceeds analysts' consensus estimate of $338.8 million.

The company's strong performance and robust outlook are attributable to several factors, including the growing adoption of exome and genome sequencing by state Medicaid programs, the launch of new products like ultraRapid Whole Genome Sequencing, and strategic partnerships to expand its reach and capabilities.

"The fourth quarter capped an outstanding year for GeneDx, as we work to end the diagnostic odyssey with earlier intervention using our industry-leading exome and genome testing," said Katherine Stueland, President and Chief Executive Officer. "Looking ahead, we'll introduce our testing to a larger population of patients, as we expand in the outpatient pediatric setting, the NICU, adult conditions, and eventually realize the promise of newborn screening."