10-QPeriod: Q1 FY2024

Guardant Health, Inc. Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 9, 2024For Securities:GH

Summary

Guardant Health, Inc. reported a 31% increase in total revenue for the first quarter of 2024, reaching $168.5 million, driven primarily by a 38% surge in precision oncology testing revenue to $156.2 million. This growth was fueled by higher test volumes and improved reimbursement rates, particularly for their Guardant360 LDT and CDx tests. Despite the top-line growth, the company continued to operate at a significant net loss of $115.0 million, though this was an improvement from the $133.5 million loss in the prior year's quarter. The company's substantial cash reserves of $1.1 billion provide a strong liquidity position, enabling continued investment in research and development, including advancements in early cancer detection tests like Shield for colorectal and lung cancer.

Financial Statements
Beta
Revenue$168.49M
Cost of Revenue$65.30M
Gross Profit$103.19M
R&D Expenses$83.80M
Operating Expenses$268.17M
Operating Income-$99.68M
Interest Expense$645K
Net Income-$114.98M
EPS (Basic)$-0.94
EPS (Diluted)$-0.94
Shares Outstanding (Basic)121.71M
Shares Outstanding (Diluted)121.71M

Key Highlights

  • 1Total revenue increased by 31% year-over-year to $168.5 million in Q1 2024.
  • 2Precision oncology testing revenue grew by 38% to $156.2 million, driven by increased sample volume and improved reimbursement rates.
  • 3Net loss improved to $115.0 million from $133.5 million in the same period last year.
  • 4The company maintained a strong liquidity position with $1.1 billion in cash, cash equivalents, and restricted cash as of March 31, 2024.
  • 5Research and development expenses decreased by 10% to $83.8 million, reflecting a strategic shift in spending.
  • 6Sales and marketing expenses increased by 6% to $80.4 million, indicating continued investment in market expansion.
  • 7The Shield LDT test for colorectal cancer screening is progressing towards an FDA review in May 2024.

Frequently Asked Questions

The primary revenue driver was precision oncology testing, which saw a significant increase of 38% year-over-year to $156.2 million. This growth was attributed to higher test volumes and improved reimbursement rates for key products like Guardant360.

No, Guardant Health is not yet profitable. The company reported a net loss of $115.0 million for the first quarter of 2024. However, this represents an improvement compared to the net loss of $133.5 million in the same period of the prior year.

Guardant Health has a strong liquidity position, with $1.1 billion in cash, cash equivalents, and restricted cash as of March 31, 2024. This substantial cash balance is expected to be sufficient to fund operations for more than 12 months, providing a buffer for continued investment in growth and development.

The company's Shield LDT test for colorectal cancer screening is a key focus. The U.S. FDA's review of its Premarket Approval (PMA) application is scheduled for May 2024. Additionally, Guardant Health is exploring next-generation Shield assays for lung cancer screening.