• Total Revenue: $71.3 million for 2024, a 45% increase year-over-year.
• Q4 Revenue: $20.4 million, a 39% increase over the prior year.
• Gross Margin: 78.2% for the full year, up 5 percentage points from 2023.
• Lung Diagnostic Testing Revenue: $64.7 million for 2024, a 43% increase year-over-year.
• Diagnostic Development Services Revenue: $6.6 million for 2024, a 70% increase year-over-year.
• Net Loss: $42.9 million for 2024, an 18% improvement over 2023.
• Adjusted EBITDA Loss: $22.1 million for 2024, a 32% improvement over 2023.
• Cash and Cash Equivalents: $26.2 million at the end of Q4 2024.
• Revenue Guidance for 2025: Expected to be between $92 million and $95 million.

• Warning! GuruFocus has detected 7 Warning Signs with BDSX.

Release Date: March 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Biodesix Inc (NASDAQ:BDSX) reported a 45% year-over-year revenue growth, reaching $71.3 million in 2024.
• The company achieved a strong gross margin of 78% for the year, indicating efficient cost management.
• Lung diagnostic testing revenues grew by 43% over 2023, driven by a 40% increase in test volume and expanded reimbursement coverage.
• Biodesix Inc (NASDAQ:BDSX) successfully conducted a pilot program to expand its sales force, demonstrating the viability of targeting primary care providers.
• The company expects to achieve adjusted EBITDA profitability in the second half of 2025, based on revenue growth and cost discipline.

Negative Points

• Despite improvements, Biodesix Inc (NASDAQ:BDSX) reported a net loss of $42.9 million for 2024, though this was an 18% improvement over 2023.
• Operating expenses increased by 17% year-over-year, driven by higher sales and marketing costs and non-cash depreciation expenses.
• The company ended the year with $26.2 million in unrestricted cash, down from $31.4 million at the end of the third quarter.
• Biodesix Inc (NASDAQ:BDSX) has not provided specific guidance on cash burn for 2025, creating uncertainty about future cash flow management.
• The company does not plan to launch or commercialize any new tests in 2025, potentially limiting short-term growth opportunities.

Q & A Highlights

Q: Can you provide more details on the revenue guidance for 2025, particularly between the testing business and the biopharma business? Also, how do you plan to achieve profitability? A: Robin Harper Cowie, CFO: We expect the biopharma services to contribute about 8% to 9% of total revenue, with the rest from lung diagnostic services. Most revenue growth will come from volume rather than price increases. For profitability, we aim to grow revenue while maintaining tight control on expenses, particularly by adding sales teammates strategically.

Q: Can you elaborate on the pilot program for expanding the sales team and its outcomes? A: Scott Hutton, CEO: The pilot program showed that primary care physicians are accessible and can effectively refer patients for testing. Primary care physicians are comfortable with phlebotomy services, making the process efficient. The pilot's success has led us to expand our sales force, focusing on primary care networks to increase market access.

Q: Could you update us on the pipeline and any potential new product launches? A: Scott Hutton, CEO: We have a robust pipeline but will not launch new tests in 2025. We are focusing on our partnership with Memorial Sloan Kettering and expect to provide updates on risk of recurrence and MRD. We aim to leverage our commercial channel to advance care for lung disease patients.

Q: How do you plan to manage the expansion of your sales territories and the focus on primary care physicians? A: Scott Hutton, CEO: We will expand to 50 territories with approximately 95 sales professionals by year-end. The focus will be on primary care physicians, guided by pulmonologists who know the referral patterns. This targeted approach will help us access a larger market while maintaining focus on pulmonologists in less mature territories.

Q: What are your expectations for cash burn and reaching break-even? A: Robin Harper Cowie, CFO: We expect to reach adjusted EBITDA break-even and cash flow break-even with the cash on hand. Cash burn will be higher in Q1 due to annual expenses but will decrease steadily throughout the year. We have extended access to a loan tranche and have an ATM in place for additional financial flexibility.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.