GeneDx Holdings Corp (WGS) shares plummeted 23.06% in pre-market trading on Wednesday, despite reporting better-than-expected first-quarter revenue. The dramatic drop comes as investors grapple with mixed signals from the company's financial results and future outlook.

GeneDx announced Q1 revenue of $87.1 million, surpassing the IBES estimate of $79.5 million. However, the company reported a net loss of $6.5 million for the quarter, which appears to have spooked investors despite an adjusted net income of $7.7 million. This disparity between GAAP and non-GAAP results may have raised concerns about the company's true profitability.

Adding to the complexity, GeneDx provided a full-year revenue outlook of $360 to $375 million, which aligns with the current IBES estimate of $358.9 million. While this guidance suggests continued growth, it may not have been enough to offset worries about the company's path to sustainable profitability. The sharp stock decline indicates that investors are reassessing the company's valuation in light of these mixed results, prioritizing bottom-line performance over top-line growth.