CareDx (CDNA) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of a loss of $0.13 per share. This compares to loss of $0.18 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 292.31%. A quarter ago, it was expected that this molecular diagnostics company would post a loss of $0.19 per share when it actually produced a loss of $0.03, delivering a surprise of 84.21%. Over the last four quar ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-Q __________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-36536 __ ...

```markdown [Executive Summary](index=1&type=section&id=Executive%20Summary) [Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) CareDx reported strong Q2 2024 results, featuring significant revenue growth, increased testing volumes, and a shift to positive adjusted EBITDA and non-GAAP net income Second Quarter 2024 Financial Highlights Summary (in millions, except percentages) | Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | Change (YoY) | | :-------------------------------- | :-------------------- | :-------------------- | :----------- | | Total Revenue | $92.3 | $70.3 | +31% | | Testing Services Volume | 43,700 tests | N/A | +17% | | GAAP Net Loss | ($1.4) | ($25.0) | -94.4% | | Non-GAAP Net Income (Loss) | $13.6 | ($9.9) | N/A (swing to profit) | | Adjusted EBITDA | $12.9 | ($10.4) | N/A (swing to profit) | | Cash from Operations | $18.9 | N/A | N/A | | Cash, Cash Equivalents, Marketable Securities | $228.9 | N/A | N/A | | Debt | $0 | N/A | N/A | [Business Highlights](index=1&type=section&id=Business%20Highlights) CareDx expanded market reach and achieved significant scientific validation for its diagnostic tools in H1 2024, reinforcing leadership in transplant care - Expanded coverage by **27 million lives nationwide** in the first half of 2024[3](index=3&type=chunk) - Published SHOREstudy data demonstrating HeartCare's **superior performance** over dd-cfDNA alone in identifying allograft rejection[3](index=3&type=chunk) - Nature Medicine publication **validated CareDx AlloView™ AI-enabled risk prediction model** and demonstrated AlloSure Kidney® **detects subclinical rejection** in stable patients[3](index=3&type=chunk) [Second Quarter 2024 Detailed Financial Results](index=1&type=section&id=Second%20Quarter%202024%20Detailed%20Financial%20Results) [Revenue Performance](index=1&type=section&id=Revenue%20Performance) CareDx achieved substantial Q2 2024 year-over-year revenue growth across all segments, primarily driven by Testing Services revenue Revenue Performance Summary (in millions, except percentages) | Revenue Stream | Q2 2024 (in millions) | Q2 2023 (in millions) | YoY Change | | :------------------------------ | :-------------------- | :-------------------- | :--------- | | Total Revenue | $92.3 | $70.3 | +31% | | Testing Services Revenue | $70.9 | $53.4 | +33% | | Patient and Digital Solutions Revenue | $10.7 | $9.0 | +19% | | Product Revenue | $10.6 | $7.9 | +35% | - Testing Services revenue for Q2 2024 included **$13.2 million** for tests performed in prior periods[4](index=4&type=chunk) [Profitability and Earnings Per Share](index=1&type=section&id=Profitability%20and%20Earnings%20Per%20Share) CareDx significantly improved Q2 2024 profitability, achieving positive non-GAAP net income and adjusted EBITDA, a substantial shift from prior year's losses Profitability and Earnings Per Share Summary (in millions, except per share data and percentages) | Metric | Q2 2024 (in millions) | Q2 2023 (in millions) | YoY Change | | :-------------------------------- | :-------------------- | :-------------------- | :--------- | | GAAP Net Loss | ($1.4) | ($25.0) | -94.4% | | Basic & Diluted GAAP Net Loss Per Share | ($0.03) | ($0.46) | -93.5% | | Non-GAAP Net Income (Loss) | $13.6 | ($9.9) | Swing to profit | | Diluted Non-GAAP Net Income (Loss) Per Share | $0.25 | ($0.18) | Swing to profit | | Adjusted EBITDA Income (Loss) | $12.9 | ($10.4) | Swing to profit | [2024 Financial Guidance Update](index=2&type=section&id=2024%20Financial%20Guidance%20Update) CareDx significantly raised its full-year 2024 financial guidance, reflecting increased confidence in revenue growth, improved gross margins, and projected positive adjusted EBITDA 2024 Financial Guidance Update Summary (in millions, except percentages) | Metric | New 2024 Guidance (in millions) | Prior 2024 Guidance (in millions) | Change (in millions) | | :-------------------- | :------------------------------ | :------------------------------ | :--------------------------- | | Annual Revenue | $320 - $328 | $274 - $282 | Increased by $46 - $46 | | Non-GAAP Gross Margin | 67% - 68% | 63% - 65% | Increased by 2-4 percentage points | | Adjusted EBITDA | Gain of $9 - $15 | Loss of $14 - $24 | Swing to gain of $23 - $39 | [Company Information](index=2&type=section&id=Company%20Information) [About CareDx – The Transplant Company](index=2&type=section&id=About%20CareDx%20%E2%80%93%20The%20Transplant%20Company) CareDx, Inc. is a precision medicine company providing high-value healthcare solutions for transplant patients and caregivers, including testing, products, and digital services - CareDx is a **leading precision medicine solutions company** focused on transplant patients and caregivers[7](index=7&type=chunk) - The company provides testing services, products, and digital healthcare solutions throughout the pre- and post-transplant patient journey[7](index=7&type=chunk) [Legal and Accounting Disclosures](index=2&type=section&id=Legal%20and%20Accounting%20Disclosures) [Forward Looking Statements](index=2&type=section&id=Forward%20Looking%20Statements) This section cautions that the press release contains forward-looking statements subject to numerous risks and uncertainties that could cause actual results to differ materially - The press release includes forward-looking statements regarding **2024 revenue, non-GAAP gross margin, adjusted EBITDA, company focus, and path to profitability**[8](index=8&type=chunk) - These statements are subject to numerous risks and uncertainties, many beyond the company's control, as discussed in SEC filings[8](index=8&type=chunk) - CareDx expressly disclaims any obligation to update or revise forward-looking statements, except as required by law[8](index=8&type=chunk) [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) CareDx presents non-GAAP financial measures to offer additional insights into core operating results, used internally for planning and comparison, but not as a substitute for GAAP results - Non-GAAP net income (loss) and per share results exclude impacts of **stock-based compensation, changes in fair value of contingent consideration, acquisition-related charges, unrealized investment losses, restructuring charges, and other specific items**[10](index=10&type=chunk) - Adjusted EBITDA is defined as non-GAAP net income (loss) before **interest income, income tax expense (benefit), depreciation, and other expense, net**[10](index=10&type=chunk) - These non-GAAP measures assist investors in assessing operating results through management's perspective and for comparing core business performance over multiple periods, but are not a substitute for GAAP information[11](index=11&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=4&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The Q2 2024 GAAP income statement shows a significant net loss reduction compared to Q2 2023, driven by increased revenue and decreased operating expenses Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2023 (in thousands) | | :------------------------------------ | :---------------------------------------------- | :---------------------------------------------- | | Total Revenue | $92,274 | $70,301 | | Total Operating Expenses | $96,372 | $97,925 | | Loss from Operations | ($4,098) | ($27,624) | | Total Other Income | $2,726 | $2,603 | | Loss Before Income Taxes | ($1,372) | ($25,021) | | Net Loss | ($1,394) | ($24,953) | | Basic & Diluted Net Loss Per Share | ($0.03) | ($0.46) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The June 30, 2024 balance sheet shows a stable financial position with slight increases in current assets and stockholders' equity, and decreased total liabilities Condensed Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2024 (in thousands) | December 31, 2023 (in thousands) | | :------------------------------------ | :--------------------------- | :------------------------------- | | Cash and Cash Equivalents | $95,782 | $82,197 | | Marketable Securities | $133,089 | $153,221 | | Accounts Receivable | $66,161 | $51,061 | | Total Current Assets | $320,609 | $313,713 | | Total Assets | $466,777 | $466,826 | | Total Current Liabilities | $78,331 | $78,072 | | Total Liabilities | $202,108 | $205,498 | | Total Stockholders' Equity | $264,669 | $261,328 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=6&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Cost of Sales Reconciliations](index=6&type=section&id=Cost%20of%20Sales%20Reconciliations) This section reconciles GAAP to non-GAAP cost of sales for testing services, product, and digital solutions, adjusting for non-cash items like stock-based compensation and acquisition amortization Cost of Testing Services Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP cost of testing services | $14,308 | $15,324 | | Stock-based compensation expense | ($357) | ($492) | | Acquisition related-amortization of purchased intangibles | ($329) | ($329) | | Non-GAAP cost of testing services | $13,622 | $14,503 | Cost of Product Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP cost of product | $6,298 | $3,926 | | Stock-based compensation expense | ($225) | ($274) | | Acquisition related-amortization of purchased intangibles | ($411) | ($416) | | Restructuring costs | ($53) | — | | Non-GAAP cost of product | $5,609 | $3,236 | Cost of Patient and Digital Solutions Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP cost of patient and digital solutions | $7,393 | $6,651 | | Stock-based compensation expense | ($350) | ($367) | | Acquisition related-amortization of purchased intangibles | ($238) | ($255) | | Restructuring costs | — | ($14) | | Non-GAAP cost of patient and digital solutions | $6,805 | $6,015 | [Operating Expenses Reconciliations](index=6&type=section&id=Operating%20Expenses%20Reconciliations) This section details adjustments to GAAP operating expenses (R&D, S&M, G&A) for non-GAAP figures, primarily excluding stock-based compensation and other non-recurring items Research and Development Expenses Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP research and development expenses | $19,693 | $20,478 | | Stock-based compensation expense | ($1,628) | ($1,704) | | Restructuring costs | ($15) | ($245) | | Non-GAAP research and development expenses | $18,050 | $18,529 | Sales and Marketing Expenses Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP sales and marketing expenses | $21,002 | $22,178 | | Stock-based compensation expense | ($2,927) | ($2,779) | | Acquisition related-amortization of purchased intangibles | ($628) | ($606) | | Restructuring costs | — | ($548) | | Non-GAAP sales and marketing expenses | $17,447 | $18,245 | General and Administrative Expenses Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP general and administrative expenses | $27,678 | $29,368 | | Stock-based compensation expense | ($7,683) | ($7,084) | | Change in estimated fair value of contingent consideration | ($210) | ($67) | | Acquisition related fees and expenses | ($5) | — | | Restructuring costs and charges | — | ($41) | | Other (charges) income | ($44) | — | | Non-GAAP general and administrative expenses | $19,736 | $22,176 | [Gross Profit and Gross Margin Reconciliations](index=9&type=section&id=Gross%20Profit%20and%20Gross%20Margin%20Reconciliations) The reconciliation shows significant Q2 2024 non-GAAP gross profit and gross margin improvement year-over-year, after adjusting for stock-based compensation, restructuring, and acquisition amortization Gross Profit and Gross Margin Reconciliation (in thousands, except percentages) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | Total revenue | $92,274 | $70,301 | | GAAP cost of sales | $27,999 | $25,901 | | GAAP gross profit | $64,275 | $44,400 | | Stock-based compensation expense | $932 | $1,133 | | Restructuring costs | $53 | $14 | | Acquisition related-amortization of purchased intangibles | $978 | $1,000 | | Non-GAAP gross profit | $66,238 | $46,547 | | Non-GAAP gross margin % | 72% | 66% | [Net Income (Loss) and EPS Reconciliations](index=10&type=section&id=Net%20Income%20(Loss)%20and%20EPS%20Reconciliations) This reconciliation highlights the substantial difference between GAAP net loss and non-GAAP net income, showing the impact of non-cash and non-recurring adjustments on profitability and EPS Net Income (Loss) and EPS Reconciliation (in thousands, except per share data) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP net loss | ($1,394) | ($24,953) | | Stock-based compensation expense | $13,170 | $12,700 | | Acquisition related-amortization of purchased intangibles | $1,606 | $1,606 | | Change in estimated fair value of contingent consideration | $210 | $67 | | Acquisition related fees and expenses | $5 | — | | Other charges | $44 | $7 | | Restructuring costs and charges | $68 | $848 | | Tax effect related to amortization of purchased intangibles | ($98) | ($100) | | Unrealized (gain) loss on long-term marketable equity securities | — | ($53) | | Non-GAAP net income (loss) | $13,611 | ($9,878) | | GAAP basic and diluted net loss per share | ($0.03) | ($0.46) | | Non-GAAP basic net income (loss) per share | $0.26 | ($0.18) | | Non-GAAP diluted net income (loss) per share | $0.25 | ($0.18) | [Adjusted EBITDA Reconciliation](index=11&type=section&id=Adjusted%20EBITDA%20Reconciliation) The reconciliation from non-GAAP net income (loss) to Adjusted EBITDA demonstrates operational performance before interest, taxes, depreciation, and other non-operating expenses, showing a significant swing to positive EBITDA in Q2 2024 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2024 (in thousands) | Q2 2023 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | Non-GAAP net income (loss) | $13,611 | ($9,878) | | Interest income | ($2,826) | ($2,871) | | Income tax expense (benefit) | $121 | $68 | | Depreciation expense | $1,937 | $2,052 | | Other expense, net | $100 | $279 | | Adjusted EBITDA | $12,943 | ($10,350) | [Company Contacts](index=11&type=section&id=Company%20Contacts) [Media and Investor Relations](index=11&type=section&id=Media%20and%20Investor%20Relations) Contact information for media and investor inquiries is provided for CareDx, Inc. - Media Relations Contact: **Anna Czene, 818-731-2203, aczene@caredx.com**[20](index=20&type=chunk) - Investor Relations Contact: **Greg Chodaczek, investor@caredx.com**[20](index=20&type=chunk) ```

CareDx, Inc. (NASDAQ:CDNA) Q1 2024 Earnings Conference Call May 9, 2024 4:30 PM ET Company Participants Greg Chodaczek - Managing Director of Investor Relations John Hanna - President & Chief Executive Officer Abhishek Jain - Chief Financial Officer Alex Johnson - President-Patient & Testing Services Conference Call Participants Bill Bonello - Craig-Hallum Capital Group Prashant Kota - Goldman Sachs Mason Carrico - Stephens Operator Good day, everyone, and welcome to today's CareDx, Inc. First Quarter 2024 ...

For the quarter ended March 2024, CareDx (CDNA) reported revenue of $72.05 million, down 6.7% over the same period last year. EPS came in at -$0.03, compared to -$0.11 in the year-ago quarter.The reported revenue represents a surprise of +13.24% over the Zacks Consensus Estimate of $63.63 million. With the consensus EPS estimate being -$0.19, the EPS surprise was +84.21%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine the ...

7 Strong Testing Services Revenue Growth in Q1 2024 in millions USD Strong Year-Over-Year Revenue Growth Across Products and Digital Solutions Businesses Products Patient and Digital Solutions Significant Improvement in Adjusted EBITDA Losses in Q1 2024 1.Reported adjusted EBITDA losses; 2.Testing Services revenue associated with revenue cycle management (RCM) initiatives including collections from unpaid claims from test results delivered in prior quarters Revised 2024 Guidance | --- | --- | --- | --- | |- ...

PART I. FINANCIAL INFORMATION [ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201.%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) CareDx's unaudited Q1 2024 and 2023 consolidated financial statements, covering balance sheets, operations, equity, cash flows, and accounting notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | March 31, 2024 | December 31, 2023 | | :---------------------------------- | :------------- | :---------------- | | **Assets:** | | | | Cash and cash equivalents | $93,299 | $82,197 | | Marketable securities | $122,622 | $153,221 | | Accounts receivable | $60,149 | $51,061 | | Inventory | $20,130 | $19,471 | | Total current assets | $303,095 | $313,713 | | Property and equipment, net | $34,411 | $35,246 | | Operating leases right-of-use assets | $28,591 | $29,891 | | Intangible assets, net | $43,330 | $45,701 | | Goodwill | $40,336 | $40,336 | | Total assets | $452,406 | $466,826 | | **Liabilities and Stockholders' Equity:** | | | | Accounts payable | $9,976 | $12,872 | | Accrued compensation | $14,565 | $19,703 | | Accrued and other liabilities | $45,670 | $45,497 | | Total current liabilities | $70,211 | $78,072 | | Operating lease liability, less current portion | $26,893 | $28,278 | | Other liabilities | $97,686 | $96,551 | | Total liabilities | $196,181 | $205,498 | | Total stockholders' equity | $256,225 | $261,328 | | Total liabilities and stockholders' equity | $452,406 | $466,826 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :----------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue: | | | | Testing services revenue | $53,837 | $61,784 | | Product revenue | $8,594 | $6,861 | | Patient and digital solutions revenue | $9,618 | $8,617 | | **Total revenue** | **$72,049** | **$77,262** | | Operating expenses: | | | | Cost of testing services | $13,632 | $15,296 | | Cost of product | $5,344 | $4,066 | | Cost of patient and digital solutions | $6,958 | $6,604 | | Research and development | $18,711 | $24,357 | | Sales and marketing | $19,830 | $23,231 | | General and administrative | $26,911 | $28,032 | | **Total operating expenses** | **$91,386** | **$101,586** | | Loss from operations | $(19,337)$ | $(24,324)$ | | Total other income | $2,595 | $699 | | Loss before income taxes | $(16,742)$ | $(23,625)$ | | Income tax benefit (expense) | $83 | $(124)$ | | **Net loss** | **$(16,659)$** | **$(23,749)$** | | Net loss per share (Basic and Diluted) | $(0.32)$ | $(0.44)$ | | Weighted-average shares used to compute net loss per share | 51,692,358 | 53,643,216 | [Condensed Consolidated Statements of Comprehensive Loss](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) Condensed Consolidated Statements of Comprehensive Loss (in thousands) | Metric | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(16,659)$ | $(23,749)$ | | Other comprehensive (loss) gain: | | | | Foreign currency translation adjustment, net of tax | $(1,145)$ | $64 | | **Comprehensive loss** | **$(17,804)$** | **$(23,685)$** | [Condensed Consolidated Statements of Stockholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) | Metric | Common Shares (Number) | Stock Amount | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders' Equity | | :------------------------------------------------- | :--------------------- | :----------- | :------------------------- | :----------------------------------- | :------------------ | :------------------------- | | Balance at December 31, 2023 | 51,503,377 | $49 | $946,511 | $(6,963)$ | $(678,269)$ | $261,328 | | Issuance of common stock under employee stock purchase plan | 73,759 | — | $532 | — | — | $532 | | Repurchase and retirement of common stock | (55,500) | — | — | — | $(522)$ | $(522)$ | | RSU settlements, net of shares withheld | 252,662 | — | $(668)$ | — | — | $(668)$ | | Issuance of common stock for services | 6,813 | — | $56 | — | — | $56 | | Issuance of common stock for cash upon exercise of stock options | 1,501 | — | $8 | — | — | $8 | | Employee stock-based compensation expense | — | — | $13,295 | — | — | $13,295 | | Foreign currency translation adjustment, net of tax | — | — | — | $(1,145)$ | — | $(1,145)$ | | Net loss | — | — | — | — | $(16,659)$ | $(16,659)$ | | Balance at March 31, 2024 | 51,782,612 | $49 | $959,734 | $(8,108)$ | $(695,450)$ | $256,225 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :------------------------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash (used in) provided by operating activities | $(15,312)$ | $671 | | Net cash provided by (used in) investing activities | $27,660 | $(14,771)$ | | Net cash used in financing activities | $(1,275)$ | $(1,138)$ | | Effect of exchange rate changes on cash and cash equivalents | $26 | $(25)$ | | Net increase (decrease) in cash, cash equivalents and restricted cash | $11,099 | $(15,263)$ | | Cash, cash equivalents and restricted cash at beginning of period | $82,783 | $90,443 | | Cash, cash equivalents and restricted cash at end of period | $93,882 | $75,180 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [1. ORGANIZATION AND DESCRIPTION OF BUSINESS](index=9&type=section&id=1.%20ORGANIZATION%20AND%20DESCRIPTION%20OF%20BUSINESS) CareDx is a precision medicine company providing diagnostic solutions for transplant patients via testing, products, and digital offerings - **CareDx, Inc.** is a leading **precision medicine company** specializing in **diagnostic solutions** for **transplant patients** and caregivers, with primary operations in Brisbane, California; Omaha, Nebraska; Fremantle, Australia; and Stockholm, Sweden[13](index=13&type=chunk) - The company's commercially available **testing services** include **AlloSure® Kidney**, **AlloMap® Heart**, **AlloSure® Heart**, and **AlloSure® Lung**, all focused on surveillance for various organ transplant patients[13](index=13&type=chunk) - **CareDx** also provides **digital solutions** for transplant centers through acquisitions like **Ottr**, **XynManagement**, **TransChart**, **MedActionPlan**, **TTP**, **HLA Data Systems**, and **MediGO**, enhancing patient management and transplant success[13](index=13&type=chunk) [2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=11&type=section&id=2.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) Details significant accounting policies and estimates for financial statements, covering revenue recognition and new pronouncements - The una

[CareDx Reports First Quarter 2024 Results](index=1&type=section&id=CareDx%20Reports%20First%20Quarter%202024%20Results) [Executive Summary & Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) CareDx reported Q1 2024 revenue of $72.0 million, sequential growth in Testing Services, and raised its full-year 2024 guidance **First Quarter 2024 Key Financial Highlights** | Metric | Q1 2024 Value | YoY Change | QoQ Change | | :--- | :--- | :--- | :--- | | Total Revenue | $72.0 million | -7% | +10% | | Testing Services Revenue | $53.8 million | -13% | +15% | | Patient & Digital Solutions Revenue | $9.6 million | +12% | N/A | | Product Revenue | $8.6 million | +25% | N/A | | Non-GAAP Net Loss | $(1.4) million | N/A | N/A | | Non-GAAP Net Loss Per Share | $(0.03) | N/A | N/A | | Adjusted EBITDA Loss | $(1.9) million | N/A | N/A | | Cash, Cash Equivalents, Marketable Securities | ~$216 million | N/A | N/A | - SHORE data presented at ISHLT demonstrated that **HeartCare® multimodal testing outperforms** donor-derived cell-free DNA (dd-cfDNA) testing alone in identifying allograft rejection[4](index=4&type=chunk) - Over 30 oral presentations, posters, and two symposia highlighting CareDx's scientific advancements in heart and lung transplantation were presented at the International Society for Heart and Lung Transplantation (ISHLT)[11](index=11&type=chunk) - Expanded payer coverage by **14 million lives** nationwide[24](index=24&type=chunk) - Total AlloSure® and AlloMap® patient results provided were approximately 42,000, a decrease of 16% year-over-year but an **increase of 6% quarter-over-quarter**, marking the third consecutive quarter of growth[5](index=5&type=chunk)[36](index=36&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) The CEO highlighted the return to sequential growth in Testing Services and the company's leadership in transplant patient care - CEO John W Hanna stated, 'We set a new baseline in our Testing Services business in the second half of 2023 and are **back to delivering sequential growth** I am pleased with the team's strong performance across all businesses this quarter'[5](index=5&type=chunk) - CareDx is positioned as the leader in transplant patient care, with dedication to serving patients as a catalyst for growth[5](index=5&type=chunk) [First Quarter 2024 Financial Results (GAAP)](index=1&type=section&id=First%20Quarter%202024%20Financial%20Results) The company reported Q1 2024 GAAP revenue of $72.0 million and an improved net loss of $16.7 million amid lower operating expenses [Revenue Performance](index=1&type=section&id=Revenue%20Performance) Q1 2024 total revenue was $72.0 million, with Testing Services showing strong sequential growth and benefiting from RCM initiatives **Revenue Breakdown (Three Months Ended March 31)** | Revenue Type | Q1 2024 (in thousands) | Q1 2023 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Testing Services Revenue | $53,837 | $61,784 | -13% | | Product Revenue | $8,594 | $6,861 | +25% | | Patient and Digital Solutions Revenue | $9,618 | $8,617 | +12% | | **Total Revenue** | **$72,049** | **$77,262** | **-7%** | - Testing Services revenue benefited from continued revenue cycle management initiatives, adding approximately **$3.7 million in revenue** in the first quarter[13](index=13&type=chunk) [Operating Expenses](index=4&type=section&id=Operating%20Expenses) Total GAAP operating expenses decreased by 10% year-over-year to $91.4 million, driven by reductions across key expense categories **GAAP Operating Expenses (Three Months Ended March 31, in thousands)** | Expense Type | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Cost of testing services | $13,632 | $15,296 | -11% | | Cost of product | $5,344 | $4,066 | +31% | | Cost of patient and digital solutions | $6,958 | $6,604 | +5% | | Research and development | $18,711 | $24,357 | -23% | | Sales and marketing | $19,830 | $23,231 | -15% | | General and administrative | $26,911 | $28,032 | -4% | | **Total Operating Expenses** | **$91,386** | **$101,586** | **-10%** | [Net Loss and EPS](index=2&type=section&id=Net%20Loss%20and%20EPS) The company's GAAP net loss improved to $16.7 million, or $0.32 per share, compared to a loss of $23.7 million in the prior year **GAAP Net Loss and EPS (Three Months Ended March 31)** | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net Loss | $(16,659) thousand | $(23,749) thousand | | Basic Net Loss Per Share | $(0.32) | $(0.44) | | Diluted Net Loss Per Share | $(0.32) | $(0.44) | | Weighted-Average Shares (Basic & Diluted) | 51,692,358 | 53,643,216 | [Balance Sheet Highlights](index=5&type=section&id=Balance%20Sheet%20Highlights) The balance sheet shows total assets of $452.4 million and stockholders' equity of $256.2 million as of March 31, 2024 **Balance Sheet Highlights (in thousands)** | Asset/Liability/Equity | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $93,299 | $82,197 | | Marketable securities | $122,622 | $153,221 | | Accounts receivable | $60,149 | $51,061 | | Total current assets | $303,095 | $313,713 | | Total assets | $452,406 | $466,826 | | Total current liabilities | $70,211 | $78,072 | | Total liabilities | $196,181 | $205,498 | | Total stockholders' equity | $256,225 | $261,328 | [Non-GAAP Financial Measures and Reconciliation](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) CareDx presents non-GAAP measures, which show improved net loss and adjusted EBITDA, to supplement GAAP results and aid analysis [Non-GAAP Definitions](index=2&type=section&id=Non-GAAP%20Definitions) Non-GAAP results exclude items like stock-based compensation and acquisition-related charges to reflect core operating performance - Non-GAAP net loss and per share results exclude impacts of stock-based compensation, changes in estimated fair value of contingent consideration, acquisition-related impairment charges and amortization of purchased intangible assets and related tax effects, costs involved with completing an acquisition, unrealized loss on investments, restructuring charges, and certain other charges[29](index=29&type=chunk) - Adjusted EBITDA is defined as non-GAAP net loss before net interest income, income tax (benefit) expense, depreciation and other expense, net[17](index=17&type=chunk) [Non-GAAP Operating Expenses](index=6&type=section&id=Non-GAAP%20Operating%20Expenses) Total non-GAAP operating expenses were reduced by 15% year-over-year to $52.3 million in Q1 2024 **Non-GAAP Operating Expenses (Three Months Ended March 31, in thousands)** | Expense Type | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Non-GAAP cost of testing services | $12,846 | $14,488 | -11% | | Non-GAAP cost of product | $4,607 | $3,288 | +40% | | Non-GAAP cost of patient and digital solutions | $6,320 | $5,954 | +6% | | Non-GAAP research and development expenses | $16,926 | $22,395 | -24% | | Non-GAAP sales and marketing expenses | $16,145 | $18,899 | -15% | | Non-GAAP general and administrative expenses | $19,229 | $20,455 | -6% | | **Total Non-GAAP Operating Expenses** | **$52,300** | **$61,749** | **-15%** | [Non-GAAP Gross Profit and Margin](index=9&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Gross%20Margin) Non-GAAP gross profit was $48.3 million in Q1 2024, with a non-GAAP gross margin of 67% **Non-GAAP Gross Profit and Margin (Three Months Ended March 31, in thousands, except percentages)** | Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | GAAP gross profit | $46,115 | $51,296 | -10% | | Non-GAAP gross profit | $48,276 | $53,532 | -10% | | Non-GAAP gross margin % | 67% | 69% | -2 ppts | [Non-GAAP Net Loss and EPS](index=2&type=section&id=Non-GAAP%20Net%20Loss%20and%20EPS) The non-GAAP net loss significantly improved to $1.4 million, or $0.03 per share, from $5.8 million in the prior year **Non-GAAP Net Loss and EPS (Three Months Ended March 31)** | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Non-GAAP Net Loss | $(1,448) thousand | $(5,818) thousand | | Non-GAAP Basic Net Loss Per Share | $(0.03) | $(0.11) | | Non-GAAP Diluted Net Loss Per Share | $(0.03) | $(0.11) | | Shares used in computing non-GAAP basic/diluted net loss per share | 51,692,358 | 53,643,216 | [Adjusted EBITDA](index=2&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA loss improved to $1.9 million in Q1 2024, a substantial reduction from losses in prior year and quarter **Adjusted EBITDA (Three Months Ended March 31, in thousands)** | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Adjusted EBITDA | $(1,856) | $(6,415) | | Adjusted EBITDA (Q4 2023) | N/A | $(10,300) | | Adjusted EBITDA assuming recognition of paused claims (Q1 2023) | N/A | $2,497 | [Business Overview](index=2&type=section&id=About%20CareDx%20%E2%80%93%20The%20Transplant%20Company) CareDx is a leading precision medicine company providing high-value healthcare solutions for transplant patients and caregivers - CareDx, Inc is a leading precision medicine solutions company focused on clinically differentiated, high-value healthcare solutions for transplant patients and caregivers[15](index=15&type=chunk) - The company offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey[15](index=15&type=chunk) - CareDx is the leading provider of genomics-based information for transplant patients[15](index=15&type=chunk) [2024 Financial Guidance](index=1&type=section&id=Raises%202024%20Revenue%20Guidance%20to%20%24274%20to%20%24282%20Million) The company raised its full-year 2024 revenue guidance to a range of $274 million to $282 million **Full Year 2024 Revenue Guidance** | Metric | Range | | :--- | :--- | | Full Year 2024 Revenue | $274 million to $282 million | [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward%20Looking%20Statements) The report contains forward-looking statements regarding financial guidance and strategy, which are subject to risks and uncertainties - The press release includes forward-looking statements concerning CareDx's 2024 revenue, strategic focus, and proposed path to profitability[28](index=28&type=chunk) - These statements are subject to numerous risks and uncertainties, including general economic and market factors, as detailed in SEC filings (Form 10-K for FY2023, Form 10-Q for Q1 2024)[28](index=28&type=chunk) - CareDx expressly disclaims any obligation to update or revise forward-looking statements, except as required by law[28](index=28&type=chunk) [Contact Information](index=12&type=section&id=Media%20Relations) This section provides contact details for media and investor relations inquiries - Media Relations Contact: Anna Czene, 818-731-2203, aczene@caredx.com[22](index=22&type=chunk) - Investor Relations Contact: Greg Chodaczek, investor@caredx.com[35](index=35&type=chunk)

The upcoming report from CareDx (CDNA) is expected to reveal quarterly loss of $0.19 per share, indicating a decline of 72.7% compared to the year-ago period. Analysts forecast revenues of $63.63 million, representing a decrease of 17.7% year over year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Before a company reveals its earnings, it is vital to ...

CareDx (CDNA) shares rallied 5.5% in the last trading session to close at $8.28. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 20.3% loss over the past four weeks.CareDx scored a strong price increase, driven by investors’ optimism surrounding the recent appointment of John W. Hanna as the new President and Chief Executive Officer of the company. Hanna joins CareDx with more than two decades of executive le ...