10-QPeriod: Q1 FY2021

Guardant Health, Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 6, 2021For Securities:GH

Summary

Guardant Health, Inc. reported a 17% increase in total revenue for the first quarter of 2021 compared to the same period in 2020, reaching $78.7 million. This growth was primarily driven by a 6% increase in precision oncology testing revenue, largely due to higher sample volumes, and a significant 106% surge in development services and other revenue, attributed to new collaboration projects with biopharmaceutical companies. Despite revenue growth, the company's net loss widened to $107.4 million from $31.8 million in the prior year's quarter. This increase in loss was largely influenced by a substantial rise in operating expenses, particularly in research and development (up 50%) and general and administrative expenses (up 243%). The significant increase in G&A expenses was notably impacted by a substantial rise in stock-based compensation, especially related to market-based restricted stock units. The company maintained a strong liquidity position, with cash and cash equivalents and marketable securities totaling approximately $1.9 billion as of March 31, 2021.

Financial Highlights

50 data points
Beta

Revenue

$78.67M

Net Income

-$109.66M

-139.4% Net Margin

EPS (Diluted)

$-1.09

Total Assets

$2.35B

Cash & Equivalents

$869.52M

Free Cash Flow

-$25.88M

Financial Statements
Beta
Revenue$78.67M
R&D Expenses$55.51M
Operating Expenses$186.53M
Operating Income-$107.86M
Interest Expense$646K
Net Income-$109.66M
EPS (Basic)$-1.09
EPS (Diluted)$-1.09
Shares Outstanding (Basic)100.95M
Shares Outstanding (Diluted)100.95M

Key Highlights

  • 1Total revenue increased by 17% to $78.7 million in Q1 2021 compared to Q1 2020.
  • 2Precision oncology testing revenue grew by 6% to $63.7 million, driven by increased sample volume.
  • 3Development services and other revenue more than doubled, increasing by 106% to $14.9 million due to new biopharmaceutical collaborations.
  • 4Net loss widened to $107.4 million from $31.8 million year-over-year, reflecting increased operating expenses.
  • 5Research and development expenses increased by 50% to $55.5 million.
  • 6General and administrative expenses surged by 243% to $67.9 million, significantly impacted by stock-based compensation.
  • 7The company maintained a robust liquidity position with $1.9 billion in cash, cash equivalents, and marketable securities as of March 31, 2021.

Frequently Asked Questions

Revenue growth was driven by a 6% increase in precision oncology testing, primarily due to higher sample volumes, and a significant 106% increase in development services and other revenue, stemming from new collaboration projects with biopharmaceutical customers.

The net loss widened due to a substantial increase in operating expenses. Research and development expenses rose by 50%, and general and administrative expenses increased by 243%, largely driven by increased stock-based compensation, particularly related to market-based restricted stock units.

Guardant Health maintained a strong liquidity position, with cash and cash equivalents and marketable securities totaling approximately $1.9 billion as of March 31, 2021. The company believes this is sufficient to fund its operations for more than 12 months.

The filing mentions the February 2021 launch of Guardant Reveal for residual and recurring cancer. It also highlights the Guardant360 CDx test's FDA approval and its recent approval for Advanced Diagnostic Laboratory Test (ADLT) status by CMS, which will impact Medicare billing.