CareDx, Inc. (NASDAQ:CDNA) Q2 2024 Earnings Conference Call July 31, 2024 4:30 PM ET Company Participants Greg Chodaczek - Managing Director John Hanna - President and CEO Abhishek Jain - Chief Financial Officer Robert Woodward - Chief Scientific Officer Alex Johnson - President, Patient and Testing Services Conference Call Participants Bill Bonello - Craig-Hallum Kayla Hostetler - Jefferies Prashant Kota - Goldman Sachs Andrew Cooper - Raymond James Nathan Kariko - Stephens Vivian Bais - BTIG Yi Chen - H.C ...

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 ...