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EX - 99.1 2 a99-109302021 earningsrelea.htm EX - 99.1 NEO GENOMICS Exhibit 99.1 NeoGenomics Reports Revenue of $ 121 Million in the Third Quarter Third - Quarter 2021 Results and Highlights : • • Consolidated revenue of $ 121 million , comprised of Clinical Services revenue of $ 102 million and Pharma Services revenue of $ 19 million Consolidated revenue decreased 3 % due to the discontinuation of prior year COVID - 19 revenue ; consolidated revenue increased 12 % when excluding prior year COVID - 19 revenue Announces plan to double its Clinical Services sales and medical affairs teams to further support RaDaR ™ and drive the next phase of the Company's growth Fort Myers , Florida ( November 4 , 2021 ) - NeoGenomics , Inc. ( NASDAQ : NEO ) ( the “ Company ” ) , a leading provider of cancer - focused genetics testing services and global oncology contract research services , today announced its third - quarter results for the period ended September 30 , 2021 . " In the third quarter , our Clinical Services revenue increased 11 % when excluding COVID - 19 PCR testing revenue in prior year . We also had record bookings for Pharma despite challenges the COVID - 19 Delta variant surge presented for our business . These challenges were particularly impactful in our home state of Florida where the related incidence was hardest felt , " said Mark Mallon , CEO of NeoGenomics . “ While this dynamic impacted near - term results and our sales teams ' access to clients , we remain excited about our longer - term growth prospects across the company and today we are announcing a major step towards accelerating that growth by sharing our intent to double our sales team to support RaDaR ™ . It is clear to us that RaDaR ™ is a special asset and we are committed to making the investments necessary to realize its sizable Clinical and Pharma market opportunities for minimal residual disease and recurrence testing . " Third - Quarter Results Consolidated revenue for the third quarter of 2021 was $ 121 million , a decrease of 3 % over the same period in 2020. Clinical Services revenue of $ 102 million was a decrease year - over - year of 6 % . Excluding COVID - 19 PCR testing , Clinical Services revenue increased by 11 % year - over - year . Clinical test volume ( ¹ ) increased by 7 % year - over - year . Average revenue per clinical test ( " revenue per test " ) increased by 4 % to $ 375 . Pharma Services revenue increased by 14 % to $ 19 million compared to the third quarter of 2020 , primarily due to an increase in revenue related to research studies and informatics . Consolidated gross profit for the third quarter of 2021 was $ 47 million , a decrease of 12.6 % , compared to the third quarter of 2020. This decrease was the result of the termination of COVID - 19 PCR testing , amortization of acquired Inivata developed technology intangibles and higher payroll and payroll - related costs . Consolidated gross profit margin , including amortization of acquired Inivata developed technology intangible assets , was 38.9 % . Adjusted Gross Profit Margin ( 2 ) , excluding amortization of acquired Inivata developed technology intangible assets , was 42.9 % . Operating expenses increased by $ 38 million , or 76 % , compared to the third quarter of 2020 , which includes significant operating expenses related to 2021 acquisitions of Inivata and Trapelo Health subsidiaries . Operating expenses in the third quarter of 2021 also a included loss contingency for the regulatory matter , legal and strategic deal expenses , higher commissions , and payroll and payroll - related costs to support the Company's strategic growth initiatives , including Informatics and Pharma . Net loss for the quarter was $ 20 million compared to net income of $ 3 million for the third quarter of 2020. The net loss for the third quarter of 2021 includes an $ 18 million gain related to the acquisition of Inivata Limited , a private limited company incorporated in England and Wales , and respective prior loan receivable . Net loss for the 1