NeoGenomics, Inc. (NASDAQ:NEO) Q4 2023 Earnings Call Transcript

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Dan Brennan : And then maybe just sticking with NGS, clinical market volumes probably growing north of 30%. Just wondering for your volume growth, how much if we’re thinking about like the market growth versus converting your customers from say legacy test to NGS. Could you just give us a sense of like maybe I know you’re not going to distill the exact numbers for each, but I’m just wondering how far along your customers are and is that a big driver for you that you’re kind of bringing forward some of these more community hospitals and doctors towards NGS?

Chris Smith: Yes, I’ll let Warren take it. But remember, we have three distinct strategies that we focus on and really from a field compensation perspective they’re incentivized on all of them. Do you want to talk a little bit about what’s going on?

Warren Stone: Yes. I think there’s a couple of dynamics that are taking place. Certainly, we’ve got customers that may not be using NGS today using a different modality that we’re moving into NGS. That’s the first kind of motion. Second is, we have a number of smaller genes single gene and smaller panels that are available and these we’re moving customers to larger panels. And then obviously we have the dynamic of customers, which haven’t been near customers in the past that are now we’re now addressing and this is particularly relevant in the community oncology setting. Those are kind of the three areas where we see sort of growth from an NGS perspective. It really plays into with our commercial strategy, which again is around protecting existing customers, but secondly expanding share of wallet where we drive various GAAP analysis strategies to identify which customers to target with different NGS offerings, which could be one of those three not using NGS moving to NGS or using a single or small panel into a larger panel.

And then thirdly, it’s the acquire elements of our commercial strategy, which is gaining new customers which haven’t been supporters of Neo in the past.

Chris Smith: And the third one is obviously the toughest getting new customers, thus by far the biggest opportunity where we have to spend time for starting lab 12 months ago, which is just community oncologists.

Operator: We have reached the end of the question-and-answer session, and I will now turn the call over to Chris Smith for closing remarks.

Chris Smith: Thank you. Look, I just appreciate everybody taking the time to get together and get some more color on what’s going on inside the business. We kind of talked about the state of the business and I think we feel incredibly good about where the business is and where the business is heading. I think we’re ahead of where we thought the early plans are being. And I think as we continue to go forward each quarter, we’ll try to give you more insight into the business and how we continue to build this long-term sustainable growth. Again, thanks for your time today and take care.

Operator: This concludes today’s conference and you may disconnect your lines at this time. Thank you for your participation.

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