Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide some color on the pricing assumptions for 2025, given the expected 30% revenue and volume growth? A: Kevin Feeley, CFO: The average reimbursement rate in Q4 was $3,500, which exceeded expectations. We consider rates stable with potential for increase, as nearly half of all tests are still being denied. We are optimistic about improving these rates and will update as the year progresses.
Q: How should we think about operating expenses and profitability in 2025? A: Kevin Feeley, CFO: There will be a step-up in OpEx to accelerate growth and reduce costs, such as the $5 million annual investment in Epic. We aim to maintain profitability each quarter and for the full year, balancing revenue growth with disciplined spending.
Q: What new opportunities are included in the 2025 guidance, particularly in the second half? A: Kevin Feeley, CFO: The NICU is a key focus, with the Epic Aura integration ahead of schedule. We expect a ramp in the NICU and new indications for exome and genome testing, such as cerebral palsy and hearing loss, to drive growth in the second half.
Q: Can you elaborate on the expansion of the sales team and its impact on costs? A: Katherine Stueland, CEO: We've expanded our enterprise team from 5 to 10 and hired 25 inside sales reps to focus on outpatient opportunities. This investment is not large compared to the Epic investment, and we aim to enhance productivity and customer experience.
Q: What is the market opportunity for the ultra-rapid whole-genome sequencing product? A: Katherine Stueland, CEO: The NICU setting represents a $1 billion market opportunity, with fewer than 5% of NICU babies currently receiving genetic tests. The ultra-rapid genome product, with a 48-hour turnaround, addresses this underutilization and offers a higher price point for urgent cases.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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