Guardant Health Reports Second Quarter 2024 Financial Results and Increases 2024 Revenue Guidance
Revenue growth of 29% driven by strong clinical and biopharma volume and Guardant360 ASP tailwinds
Shield approved by FDA as primary option for CRC screening and is commercially available in
Second Quarter 2024 Financial Highlights
-
Revenue of
$177.2 million for the second quarter of 2024, an increase of 29% over the second quarter of 2023 - Reported 49,400 tests to clinical customers and 10,475 tests to biopharmaceutical customers in the second quarter of 2024, representing increases of 14% and 56%, respectively, over the second quarter of 2023
-
Raised 2024 annual guidance for revenue to a new range of
$690 to$700 million , representing growth of 22% to 24%
Recent Operating Highlights
- Received FDA approval for Shield as a first-line CRC screening option and initiated commercial launch of Shield IVD
- Shield now meets the requirements for Medicare coverage for 45 million eligible individuals
- Launched major upgrade of Guardant360 on Smart Liquid Biopsy platform, further extending best-in-class performance
- Upgraded Guardant360 TissueNext to a 498 gene panel to identify more treatment options for patients with advanced cancer
-
Publication of COSMOS study data in
Clinical Cancer Research further validates Reveal for MRD CRC surveillance testing in Stage II and III patients
“We had another strong quarter driven by solid volume growth, particularly for biopharma, and continued improvements to Guardant360 reimbursement,” said
“FDA approval of our Shield blood test for first-line colorectal cancer screening is a huge victory for Guardant and patients,” said AmirAli Talasaz, co-founder and co-CEO. “Commercial launch of Shield and CMS coverage make our blood-based screening option accessible to more than 45 million Medicare beneficiaries. Shield offers a more pleasant way to stay up to date with colorectal cancer screening and detect the disease early, when it is more easily treated.”
Second Quarter 2024 Financial Results
Revenue was
Gross profit, or total revenue less cost of precision oncology testing and cost of development services and other, was
Non-GAAP gross profit was
Non-GAAP gross profit excluding screening was
Operating expenses were
Net loss was
Non-GAAP net loss was
Adjusted EBITDA loss was
Free cash flow for the second quarter of 2024 was
2024 Guidance
Webcast Information
Non-GAAP Measures
We define our non-GAAP measures as the applicable GAAP measure adjusted for the impacts of stock-based compensation and related employer payroll tax payments, contingent consideration, amortization of intangible assets, fair value adjustments on marketable equity securities, impairment of non-marketable equity securities and other related assets, and other non-recurring items.
Adjusted EBITDA is defined as net loss adjusted for interest income; interest expense; other income (expense), net; provision for income taxes; depreciation and amortization expense; stock-based compensation expense and related employer payroll tax payments; contingent consideration; and other non-recurring items. Free cash flow is defined as net cash used in operating activities in the period less purchase of property and equipment in the period.
We believe that the exclusion of certain income and expenses in calculating these non-GAAP financial measures can provide a useful measure for investors when comparing our period-to-period core operating results, and when comparing those same results to that published by our peers. We exclude certain items because we believe that these income and expenses do not reflect expected future operating performance. Additionally, certain items are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. We use these non-GAAP financial measures to evaluate ongoing operations, for internal planning and forecasting purposes, and to manage our business.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitute for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not present the full measure of our recorded costs against its revenue. In addition, our definition of the non-GAAP financial measures may differ from non-GAAP measures used by other companies.
About
Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements relating to Guardant Health’s future results, regulatory approval for products or regarding the potential benefits and advantages of Guardant Health’s platforms, assays and tests, which involve risks and uncertainties that could cause Guardant Health’s actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended
Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Precision oncology testing |
$ |
166,518 |
|
|
$ |
125,244 |
|
|
$ |
322,747 |
|
|
$ |
238,637 |
|
Development services and other |
|
10,717 |
|
|
|
11,906 |
|
|
|
22,979 |
|
|
|
27,227 |
|
Total revenue |
|
177,235 |
|
|
|
137,150 |
|
|
|
345,726 |
|
|
|
265,864 |
|
Costs and operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of precision oncology testing |
|
65,715 |
|
|
|
49,357 |
|
|
|
125,021 |
|
|
|
94,463 |
|
Cost of development services and other |
|
6,706 |
|
|
|
4,491 |
|
|
|
12,696 |
|
|
|
12,458 |
|
Research and development expense |
|
83,102 |
|
|
|
90,359 |
|
|
|
166,904 |
|
|
|
183,487 |
|
Sales and marketing expense |
|
81,867 |
|
|
|
71,043 |
|
|
|
162,292 |
|
|
|
147,166 |
|
General and administrative expense |
|
40,463 |
|
|
|
41,516 |
|
|
|
79,114 |
|
|
|
81,961 |
|
Total costs and operating expenses |
|
277,853 |
|
|
|
256,766 |
|
|
|
546,027 |
|
|
|
519,535 |
|
Loss from operations |
|
(100,618 |
) |
|
|
(119,616 |
) |
|
|
(200,301 |
) |
|
|
(253,671 |
) |
Interest income |
|
13,913 |
|
|
|
6,727 |
|
|
|
28,781 |
|
|
|
9,787 |
|
Interest expense |
|
(645 |
) |
|
|
(645 |
) |
|
|
(1,290 |
) |
|
|
(1,289 |
) |
Other income (expense), net |
|
(15,145 |
) |
|
|
41,259 |
|
|
|
(44,265 |
) |
|
|
39,605 |
|
Loss before provision for income taxes |
|
(102,495 |
) |
|
|
(72,275 |
) |
|
|
(217,075 |
) |
|
|
(205,568 |
) |
Provision for income taxes |
|
133 |
|
|
|
496 |
|
|
|
538 |
|
|
|
736 |
|
Net loss |
$ |
(102,628 |
) |
|
$ |
(72,771 |
) |
|
$ |
(217,613 |
) |
|
$ |
(206,304 |
) |
Net loss per share, basic and diluted |
$ |
(0.84 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.78 |
) |
|
$ |
(1.95 |
) |
Weighted-average shares used in computing net loss per share, basic and diluted |
|
122,447 |
|
|
|
108,808 |
|
|
|
122,080 |
|
|
|
105,752 |
|
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share data) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash, cash equivalents and restricted cash |
$ |
1,035,239 |
|
|
$ |
1,133,537 |
|
Short-term marketable debt securities |
|
— |
|
|
|
35,097 |
|
Accounts receivable, net |
|
100,519 |
|
|
|
88,783 |
|
Inventory, net |
|
66,984 |
|
|
|
61,948 |
|
Prepaid expenses and other current assets, net |
|
87,232 |
|
|
|
27,741 |
|
Total current assets |
|
1,289,974 |
|
|
|
1,347,106 |
|
Property and equipment, net |
|
132,317 |
|
|
|
145,096 |
|
Right-of-use assets, net |
|
146,111 |
|
|
|
157,616 |
|
Intangible assets, net |
|
7,742 |
|
|
|
8,979 |
|
|
|
3,290 |
|
|
|
3,290 |
|
Other assets, net |
|
29,906 |
|
|
|
124,334 |
|
Total Assets |
$ |
1,609,340 |
|
|
$ |
1,786,421 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
42,447 |
|
|
$ |
51,741 |
|
Accrued compensation |
|
59,067 |
|
|
|
72,736 |
|
Accrued expenses |
|
70,680 |
|
|
|
63,475 |
|
Deferred revenue |
|
29,375 |
|
|
|
17,965 |
|
Total current liabilities |
|
201,569 |
|
|
|
205,917 |
|
Convertible senior notes, net |
|
1,141,256 |
|
|
|
1,139,966 |
|
Long-term operating lease liabilities |
|
172,194 |
|
|
|
185,848 |
|
Other long-term liabilities |
|
95,934 |
|
|
|
96,006 |
|
Total Liabilities |
|
1,610,953 |
|
|
|
1,627,737 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, par value of |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
2,363,501 |
|
|
|
2,304,220 |
|
Accumulated other comprehensive loss |
|
(5,640 |
) |
|
|
(3,675 |
) |
Accumulated deficit |
|
(2,359,475 |
) |
|
|
(2,141,862 |
) |
Total Stockholders’ (Deficit) Equity |
|
(1,613 |
) |
|
|
158,684 |
|
Total Liabilities and Stockholders’ (Deficit) Equity |
$ |
1,609,340 |
|
|
$ |
1,786,421 |
|
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (unaudited) (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP cost of precision oncology testing |
$ |
65,715 |
|
|
$ |
49,357 |
|
|
$ |
125,021 |
|
|
$ |
94,463 |
|
Amortization of intangible assets |
|
(150 |
) |
|
|
(149 |
) |
|
|
(299 |
) |
|
|
(297 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(1,309 |
) |
|
|
(1,225 |
) |
|
|
(2,587 |
) |
|
|
(2,443 |
) |
Non-GAAP cost of precision oncology testing |
$ |
64,256 |
|
|
$ |
47,983 |
|
|
$ |
122,135 |
|
|
$ |
91,723 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP cost of development services and other |
$ |
6,706 |
|
|
$ |
4,491 |
|
|
$ |
12,696 |
|
|
$ |
12,458 |
|
Amortization of intangible assets |
|
(67 |
) |
|
|
(201 |
) |
|
|
(267 |
) |
|
|
(402 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(498 |
) |
|
|
(478 |
) |
|
|
(997 |
) |
|
|
(954 |
) |
Non-GAAP cost of development services and other |
$ |
6,141 |
|
|
$ |
3,812 |
|
|
$ |
11,432 |
|
|
$ |
11,102 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP gross profit |
$ |
104,814 |
|
|
$ |
83,302 |
|
|
$ |
208,009 |
|
|
$ |
158,943 |
|
Amortization of intangible assets |
|
217 |
|
|
|
350 |
|
|
|
566 |
|
|
|
699 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
1,807 |
|
|
|
1,703 |
|
|
|
3,584 |
|
|
|
3,397 |
|
Non-GAAP gross profit |
$ |
106,838 |
|
|
$ |
85,355 |
|
|
$ |
212,159 |
|
|
$ |
163,039 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP cost of screening |
$ |
3,459 |
|
|
$ |
2,966 |
|
|
$ |
6,788 |
|
|
$ |
7,031 |
|
Amortization of intangible assets |
|
(67 |
) |
|
|
(201 |
) |
|
|
(267 |
) |
|
|
(402 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(498 |
) |
|
|
(478 |
) |
|
|
(997 |
) |
|
|
(954 |
) |
Non-GAAP cost of screening |
$ |
2,894 |
|
|
$ |
2,287 |
|
|
$ |
5,524 |
|
|
$ |
5,675 |
|
Non-GAAP gross profit excluding cost of screening |
$ |
109,732 |
|
|
$ |
87,642 |
|
|
$ |
217,683 |
|
|
$ |
168,714 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP research and development expense |
$ |
83,102 |
|
|
$ |
90,359 |
|
|
$ |
166,904 |
|
|
$ |
183,487 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
(10,001 |
) |
|
|
(8,518 |
) |
|
|
(20,065 |
) |
|
|
(17,266 |
) |
Contingent consideration |
|
(110 |
) |
|
|
(531 |
) |
|
|
(485 |
) |
|
|
(1,101 |
) |
Non-GAAP research and development expense |
$ |
72,991 |
|
|
$ |
81,310 |
|
|
$ |
146,354 |
|
|
$ |
165,120 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing expense |
$ |
81,867 |
|
|
$ |
71,043 |
|
|
$ |
162,292 |
|
|
$ |
147,166 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
(7,258 |
) |
|
|
(5,977 |
) |
|
|
(14,587 |
) |
|
|
(13,520 |
) |
Non-GAAP sales and marketing expense |
$ |
74,609 |
|
|
$ |
65,066 |
|
|
$ |
147,705 |
|
|
$ |
133,646 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP general and administrative expense |
$ |
40,463 |
|
|
$ |
41,516 |
|
|
$ |
79,114 |
|
|
$ |
81,961 |
|
Amortization of intangible assets |
|
(335 |
) |
|
|
(336 |
) |
|
|
(671 |
) |
|
|
(667 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(8,659 |
) |
|
|
(6,755 |
) |
|
|
(16,823 |
) |
|
|
(11,223 |
) |
Contingent consideration |
|
(300 |
) |
|
|
(310 |
) |
|
|
(420 |
) |
|
|
(10 |
) |
Non-GAAP general and administrative expense |
$ |
31,169 |
|
|
$ |
34,115 |
|
|
$ |
61,200 |
|
|
$ |
70,061 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP loss from operations |
$ |
(100,618 |
) |
|
$ |
(119,616 |
) |
|
$ |
(200,301 |
) |
|
$ |
(253,671 |
) |
Amortization of intangible assets |
|
552 |
|
|
|
686 |
|
|
|
1,237 |
|
|
|
1,366 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
27,725 |
|
|
|
22,953 |
|
|
|
55,059 |
|
|
|
45,406 |
|
Contingent consideration |
|
410 |
|
|
|
841 |
|
|
|
905 |
|
|
|
1,111 |
|
Non-GAAP loss from operations |
$ |
(71,931 |
) |
|
$ |
(95,136 |
) |
|
$ |
(143,100 |
) |
|
$ |
(205,788 |
) |
|
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(102,628 |
) |
|
$ |
(72,771 |
) |
|
$ |
(217,613 |
) |
|
$ |
(206,304 |
) |
Amortization of intangible assets |
|
552 |
|
|
|
686 |
|
|
|
1,237 |
|
|
|
1,366 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
27,725 |
|
|
|
22,953 |
|
|
|
55,059 |
|
|
|
45,406 |
|
Contingent consideration |
|
410 |
|
|
|
841 |
|
|
|
905 |
|
|
|
1,111 |
|
Unrealized losses (gains) on marketable equity securities |
|
15,485 |
|
|
|
(63,997 |
) |
|
|
45,539 |
|
|
|
(67,879 |
) |
Impairment of non-marketable equity securities and other related assets |
|
— |
|
|
|
23,569 |
|
|
|
— |
|
|
|
29,054 |
|
Non-GAAP net loss |
$ |
(58,456 |
) |
|
$ |
(88,719 |
) |
|
$ |
(114,873 |
) |
|
$ |
(197,246 |
) |
|
|
|
|
|
|
|
|
||||||||
GAAP net loss per share, basic and diluted |
$ |
(0.84 |
) |
|
$ |
(0.67 |
) |
|
$ |
(1.78 |
) |
|
$ |
(1.95 |
) |
Non-GAAP net loss per share, basic and diluted |
$ |
(0.48 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.94 |
) |
|
$ |
(1.87 |
) |
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted |
|
122,447 |
|
|
|
108,808 |
|
|
|
122,080 |
|
|
|
105,752 |
|
Reconciliation of GAAP Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(102,628 |
) |
|
$ |
(72,771 |
) |
|
$ |
(217,613 |
) |
|
$ |
(206,304 |
) |
Interest income |
|
(13,913 |
) |
|
|
(6,727 |
) |
|
|
(28,781 |
) |
|
|
(9,787 |
) |
Interest expense |
|
645 |
|
|
|
645 |
|
|
|
1,290 |
|
|
|
1,289 |
|
Other expense (income), net |
|
15,145 |
|
|
|
(41,259 |
) |
|
|
44,265 |
|
|
|
(39,605 |
) |
Provision for income taxes |
|
133 |
|
|
|
496 |
|
|
|
538 |
|
|
|
736 |
|
Depreciation and amortization |
|
10,623 |
|
|
|
10,631 |
|
|
|
21,335 |
|
|
|
20,976 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
27,725 |
|
|
|
22,953 |
|
|
|
55,059 |
|
|
|
45,406 |
|
Contingent consideration |
|
410 |
|
|
|
841 |
|
|
|
905 |
|
|
|
1,111 |
|
Adjusted EBITDA |
$ |
(61,860 |
) |
|
$ |
(85,191 |
) |
|
$ |
(123,002 |
) |
|
$ |
(186,178 |
) |
Reconciliation of Free Cash Flow to (unaudited) (in thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
|
|
|
|
||||||||
Net cash used in operating activities |
$ |
(94,002 |
) |
|
$ |
(94,015 |
) |
|
$ |
(124,286 |
) |
|
$ |
(168,456 |
) |
Purchase of property and equipment |
|
(5,077 |
) |
|
|
(6,513 |
) |
|
|
(12,011 |
) |
|
|
(14,037 |
) |
Free cash flow |
$ |
(99,079 |
) |
|
$ |
(100,528 |
) |
|
$ |
(136,297 |
) |
|
$ |
(182,493 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807054615/en/
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