BIODESIX INC Q4 FY2024 earnings call

• 2024 was an excellent year for Biodesix with $71.3 million in total revenue, 45% year-over-year growth, and 78% gross margin. - The company focuses on transforming patient care through personalized diagnostics for lung disease, leveraging multimodal approaches. - Lung diagnostic testing grew 43% Y/Y in 2024 driven by test volume growth and reimbursement expansion. - Conducted a successful pilot program in Q4 2024 assessing sales approach to primary care providers. - Launched the Clarify study in Q4 2024 to collect patient outcomes. - Diagnostic development services grew 70% Y/Y with $12.2 million under contract at year-end. - Presented new clinical data and research in 2024.

Lung diagnostic testing: In the fourth quarter of 2024, lung diagnostic testing revenue was $17.2 million from approximately fourteen thousand six hundred tests, compared to $12.8 million from approximately ten thousand nine hundred for the fourth quarter of 2023, representing 34% growth in revenue and test volume. For the full year, lung diagnostic testing revenues were $64.7 million from fifty-four thousand three hundred tests, with 43% growth in revenue and 40% growth in tests. Diagnostic development services: Diagnostic development services revenue was $3.2 million in the fourth quarter of 2024 and $6.6 million for the full year 2024, representing 72% and 70% growth over prior periods. Total revenue for 2024 was $71.3 million, a 45% increase over 2023. The full-year gross margin was 78.2%, up five percentage points over the full year of 2023.

• 2025 revenue guidance: $92 to $95 million, driven by growth in lung diagnostic testing and diagnostic development services. - Maintain gross margins in the mid to upper seventies. - Aim for adjusted EBITDA profitability in the second half of 2025 based on cost-disciplined approach and revenue growth.

• Uncertainties in SEC filings where actual events may differ from forward-looking statements. - Reimbursement and regulatory risks that could impact business performance. - Competition in the diagnostic space affecting market share and growth.

Q: Appreciate you guys reiterating the adjusted EBITDA target for the back half of this year. You maybe just sort of talk to us though about the drivers of that? How do we bridge from today to that goal on the adjusted EBITDA front?

A: Robin Harper Cowie said it's the combination of revenue growth and tight control on expenses, with sales and marketing costs increasing to support lung diagnostic testing growth and tight control on other expenses.

Q: You gave a lot of nice color on sort of the expansion of the sales team and also the pilot that you ran in the back half of 2024. You maybe just talk a little bit more specifically about what you saw in that pilot? What you learned from it and sort of the key takeaways and what drives confidence in the expansion of that model?

A: Scott Hutton explained the pilot showed primary care physicians are accessible, they were comfortable with phlebotomy services, and patients were viable with high utility of the test, driving confidence in expanding the sales model.

Q: You're getting closer to EBITDA breakeven. Could you just provide an update on the pipeline?

A: Scott Hutton discussed the BMRD program, MSK partnership, and potential impact of quality measure updates on lung cancer screening, highlighting ongoing research and development efforts.

Q: With respect to the sales force expansion plan. Would you be able to comment on what kind of what inning you're in in terms of, you know, at the end of the year with ninety-five reps and fifty territories, kind of in terms of optimizing or rightsizing your commercial structure?

A: Scott Hutton said territory alignment is consistent, pilot learnings are integrated into the plan, and they're in the midst of implementing the expansion with approximately six sales reps added per quarter, focusing on primary care physician call points as needed.