Shares of GeneDx Holdings (NASDAQ:WGS) surged 5.62% on October 30, 2024, following the company's impressive third-quarter 2024 results and raised full-year guidance. The genetic testing firm reported significant revenue growth, margin expansion, and achieved profitability for the first time since its inception.

GeneDx Holdings' revenue from continuing operations reached $76.6 million in the third quarter, a remarkable 52% increase year-over-year. This growth was primarily driven by strong demand for the company's exome and genome testing services, which contributed $60 million in revenue, up 77% from the prior year. Exome and genome test volumes also grew substantially, rising 46% year-over-year to over 19,000 tests.

The company's adjusted gross profit soared 103% year-over-year to $49.3 million, resulting in an impressive gross margin of 64%, up from 48% a year ago. This margin expansion was attributed to better average reimbursement rates, lower costs per test, and a favorable shift in product mix towards higher-margin exome and genome testing.