GeneDx Holdings Corp (WGS) stock plummeted 5.05% in pre-market trading on Wednesday, despite the company reporting strong fourth-quarter and full-year 2024 results. The genomic testing company's revenue and earnings exceeded expectations, driven by robust growth in its flagship exome and genome testing services.

However, the company's outlook for 2025 appears to have dampened investor sentiment. While GeneDx expects at least 30% growth in exome and genome testing volume and revenue, its overall revenue guidance of $350 million to $360 million fell short of analysts' expectations. The company cited a slower-than-anticipated ramp-up in new market segments like the neonatal intensive care unit (NICU) and new indications for outpatient testing as contributing factors.

According to CEO Katherine Stueland, GeneDx is investing heavily in product innovation, customer experience, and commercial expansion to drive long-term growth. The company plans to launch new features to streamline the customer experience, expand its enterprise sales team, and target new patient populations such as cerebral palsy and hearing loss. However, these initiatives are expected to gain traction primarily in the second half of 2025, tempering the near-term growth outlook.