01—Abstract
Summary
Summary of the 10-Q filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Guardant Health, Inc. reported a 31% increase in total revenue for the first quarter of 2024, reaching $168.5 milliona, 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 millionb, 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.
02—Key points
Key Highlights
- Total revenue increased by 31% year-over-year to $168.5 million in Q1 2024.
- Precision oncology testing revenue grew by 38% to $156.2 million, driven by increased sample volume and improved reimbursement rates.
- Net loss improved to $115.0 million from $133.5 million in the same period last year.
- The company maintained a strong liquidity position with $1.1 billion in cash, cash equivalents, and restricted cash as of March 31, 2024.
- Research and development expenses decreased by 10% to $83.8 million, reflecting a strategic shift in spending.
- Sales and marketing expenses increased by 6% to $80.4 million, indicating continued investment in market expansion.
- The Shield LDT test for colorectal cancer screening is progressing towards an FDA review in May 2024.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2024, Guardant Health, Inc. lost $0.68.
- Revenue$168.5M100.0%
- Cost of revenue−$65.3M38.8%
- Gross profit$103.2M61.2%
- Operating costs−$202.9M120.4%
- Operating income−$99.7M59.2%
- Interest, other & tax−$15.3M9.1%
- Net income−$115.0M68.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 9, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $168.49M$128.71M | +30.9% |
| Cost of Revenue | $65.30M— | — |
| Gross Profit | $103.19M— | — |
| R&D Expenses | $83.80M$93.13M | −10.0% |
| Operating Expenses | $268.17M$262.77M | +2.1% |
| Operating Income | -$99.68M-$134.06M | +25.6% |
| Interest Expense | $645K$644K | +0.2% |
| Net Income | -$114.98M-$133.53M | +13.9% |
| EPS (Basic) | $-0.94$-1.30 | +27.7% |
| EPS (Diluted) | $-0.94$-1.30 | +27.7% |
| Shares Outstanding (Basic) | 121.71M102.66M | +18.6% |
| Shares Outstanding (Diluted) | 121.71M102.66M | +18.6% |
05—Questions
Frequently Asked Questions
What was Guardant Health's primary revenue driver in Q1 2024?
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.
Is Guardant Health profitable?
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.
What is the company's current financial health and liquidity situation?
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.
What are the key developments regarding Guardant Health's early cancer detection efforts?
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.
06—Continue