NeoGenomics : Reports 18% Revenue Growth to $126 Million in the Fourth Quarter

February 24, 2021

NeoGenomics Reports 18% Revenue Growth to $126 Million in the Fourth Quarter

Fourth-Quarter 2020 Results and Highlights:

Consolidated revenue increased 18% to $126 million

Clinical Services revenue increased 14% to $107 million

Pharma Services revenue increased 43% to $19 million

Pharma Services backlog increased 60% to $209 million

FT. MYERS, FL / ACCESSWIRE / February 24, 2021 / NeoGenomics, Inc. (NASDAQ:NEO), a leading provider of cancer-focused genetic testing services, today announced fourth-quarter and full-year 2020 results for the period ended December 31, 2020.

Douglas M. VanOort, the company's Chairman and CEO said "2020 was a remarkable year for NeoGenomics, and one that obviously no one could have prepared for or anticipated. We are proud of the outstanding NeoGenomics team for responding and excelling in this most challenging environment. They never wavered from delivering high-quality results for the physicians and patients we serve.

We are also proud of our financial performance, as Fourth Quarter revenue increased 18% year-over-year to a record $126 million. For the first time since the pandemic began, we saw year-over-year growth in all of our core divisions. As the pandemic subsides, we believe that growth will recover steadily back to our longer-term growth targets, and we remain highly confident in the strength of our core oncology business and long-term growth opportunities.

Although I have made the decision to retire as CEO of NeoGenomics after 12 years, I believe that our company's future has never been brighter. Mark Mallon is an incredible leader and we are very excited to be able to attract an executive of his caliber to execute towards our goal of becoming the world's leading oncology diagnostics and information company."

Fourth-Quarter Results

Consolidated revenue for the fourth quarter of 2020 was $126 million, an increase of 18% over the same period in 2019. Clinical Services revenue increased year-over-year by 14% to $107 million, primarily driven by COVID-19 Polymerase Chain Reaction ("PCR") testing revenue of $9 million. Clinical test volume(1) increased by 5% year-over-year. Average revenue per clinical test ("revenue per test") was flat at $369 when compared to the fourthquarter of 2019. Pharma Services revenue grew by 43% to $19 million compared to the fourth quarter of 2019, primarily driven by an increase in research and informatics.

Gross profit increased by $7.5 million, or 15.1%, compared to the fourth quarter of 2019, to $57.5 million. This increase was the result of higher test volume.

Operating expenses increased by $4 million, or 9%, compared to the fourth quarter of 2019, reflecting investments in informatics, growth initiatives and costs associated with the integration of HLI-Oncology.

Net income for the fourth quarter was $15 million compared to $6 million in the fourth quarter of 2019.

Adjusted EBITDA(2) was $18 million compared to $14 million in the fourth quarter of 2019. Adjusted Net Income(2) was $17 million compared to $11 million in the fourth quarter of 2019.

Cash and cash equivalents, including restricted cash, was $251 million and short-term marketable securities were $68 million. Days sales outstanding ("DSO") was 78 days at the end of the fourth quarter of 2020.

Full-Year Results

Consolidated revenue for 2020 was $444 million, an increase of 9% over 2019. This increase was primarily driven by COVID-19 PCR testing revenue of approximately $28 million and growth in our Pharma Services segment. Net income for 2020 was $4 million compared to net income of $8 million in 2019. Adjusted EBITDA(2) for 2020 was $35 million compared to $57 million in 2019. Adjusted Net Income(2) for 2020 was $17 million compared to $32 million in 2019.

Subsequent Event

On January 11, 2021, the Company closed on concurrent underwritten public offerings of its common stock and 0.25% convertible senior notes due 2028. The net proceeds from these offerings were approximately $553 million after deducting the underwriting discounts, commissions and estimated offering expenses. The Company used $29 million of the net proceeds from the offerings to enter into capped call transactions. The Company intends to use the remaining net proceeds from the offerings for general corporate purposes and/or to acquire or invest in complementary businesses and technologies.

Conference Call

The Company has scheduled a webcast and conference call to discuss its fourth quarter results on Wednesday, February 24, 2021 at 8:30 AM EDT. Interested investors should dial [phone] (domestic) and [phone] (international) at least five minutes prior to the call. A replay of the conference call will be available until 8:30 AM EDT on March 10, 2021, and can be accessed by dialing [phone] (domestic) and [phone] (international). The playback conference ID number is 39893. The webcast may be accessed under the Investor Relations section of our website atwww.neogenomics.com. An archive of the web-cast will be available until 08:30 AM EDT on February 24, 2022.

About NeoGenomics, Inc.

NeoGenomics, Inc. specializes in cancer genetics testing and information services. The Company provides one of the most comprehensive oncology-focused testing menus in the world for physicians to help them diagnose and treat cancer. The Company's Pharma Services Division serves pharmaceutical clients in clinical trials and drug development.

Headquartered in Fort Myers, FL, NeoGenomics operates CAP accredited and CLIA certified laboratories in Fort Myers and Tampa, Florida; Aliso Viejo, Carlsbad and San Diego, California; Houston, Texas; Atlanta, Georgia; Nashville, Tennessee; and CAP accredited laboratories in Rolle, Switzerland, and Singapore. NeoGenomics serves the needs of pathologists, oncologists, academic centers, hospital systems, pharmaceutical firms, integrated service delivery networks, and managed care organizations throughout the United States, and pharmaceutical firms in Europe and Asia. For additional information about NeoGenomics, visithttp://www.neogenomics.com/.

Forward Looking Statements

Certain information contained in this press release constitutes forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These forward looking statements involve a number of risks and uncertainties that could cause actual future results to differ materially from those anticipated in the forward-looking statements as the result of the Company's ability to continue gaining new customers, respond to the effects of the COVID-19 outbreak, offer new types of tests, integrate its acquisitions and otherwise implement its business plan, as well as additional factors discussed under the heading "Risk Factors" and elsewhere in the Company's Annual Report on Form 10-K filed with the SEC on February 28, 2020. As a result, this press release should be read in conjunction with the Company's periodic filings with the SEC. In addition, it is the Company's practice to make information about the Company available by posting copies of its Company Overview Presentation from time to time on the Investor Relations section of its website athttp://ir.neogenomics.com/.

Forward-looking statements represent the Company's estimates only as of the date such statements are made (unless another date is indicated) and should not be relied upon as representing the Company's estimates as of any subsequent date. While the Company may elect to update forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, even if its estimates change.

For further information, please contact:

NeoGenomics, Inc.

Doug Brown

Chief Strategy and Corporate Development Officer T: 239.768.0600 x2539

M: [e-mail]

Charlie Eidson

Manager of Investor Relations and Manager of Strategy and Corporate Development

T: 239.768.0600 x2726 M: [e-mail]

NeoGenomics, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

December December

31, 2020

31, 2019

ASSETS
Cash and cash equivalents	$	228,713	$ 173,016
Marketable securities, at fair value	67,546	-
Accounts receivable, net	106,843	94,242
Inventories	29,526	14,405
Prepaid assets	11,547	6,327
Other current assets	4,555	2,748
Total current assets	448,730	290,738
Property and equipment (net of accumulated depreciation of
$92,895 and $68,809, respectively)	85,873	64,188
Operating lease right-of-use assets	45,786	26,492
Intangible assets, net	120,653	126,640
Goodwill	211,083	198,601
Restricted cash	21,919	-
Prepaid lease asset	20,229	-
Investment in non-consolidated affiliate	29,555	-
Other assets
4,503	2,847
Total non-current assets	539,601	418,768
TOTAL ASSETS	$	988,331	$ 709,506
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and other current liabilities	$	65,375
Current portion of equipment financing obligations	2,841
Current portion of operating lease liabilities	4,967
Total current liabilities	73,183
Convertible senior notes, net	168,120
Operating lease liabilities	42,296
Term loan, net	-

$

50,091

10,432

3,381

63,904 -

24,034

91,829