Guardant Health (GH) came out with a quarterly loss of $0.45 per share versus the Zacks Consensus Estimate of a loss of $0.55. This compares to loss of $0.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.18%. A quarter ago, it was expected that this provider of oncology testing services would post a loss of $0.57 per share when it actually produced a loss of $0.48, delivering a surprise of 15.79%.Over the last four quarte ...

Revenue Performance - Total revenue for Q3 2024 was $191.5 million, a 34% increase from $143.0 million in Q3 2023[10] - Precision oncology testing revenue reached $180.6 million, up 35% from $133.4 million year-over-year[10] - Total revenue for the three months ended September 30, 2024, was $191.5 million, an increase of $48.4 million, or 34%, compared to $143.0 million for the same period in 2023[185] - Precision oncology testing revenue increased to $180.6 million for the three months ended September 30, 2024, from $133.4 million for the same period in 2023, representing a growth of $47.2 million, or 35%[185] - Total revenue for the nine months ended September 30, 2024, was $537.2 million, an increase of $128.3 million, or 31%, compared to $408.9 million for the same period in 2023[201] Financial Losses - Net loss for Q3 2024 was $107.8 million, compared to a net loss of $86.1 million in Q3 2023[12] - The company reported a comprehensive loss of $105.4 million for Q3 2024, compared to a comprehensive loss of $83.3 million in Q3 2023[12] - Net loss for the three months ended September 30, 2024, was $(107.8) million, compared to $(86.1) million for the same period in 2023[182] - Net loss for the nine months ended September 30, 2024, was $325,367, compared to a net loss of $292,406 for the same period in 2023, representing an increase of approximately 11.3%[20] - Net losses for Q3 2024 were $107.8 million, compared to $86.1 million in Q3 2023, indicating a 25.3% increase in losses[154] Assets and Liabilities - Total current assets decreased to $1.23 billion as of September 30, 2024, down from $1.35 billion at the end of 2023[8] - Cash, cash equivalents, and restricted cash decreased to $688.4 million from $1.13 billion at the end of 2023[8] - Total liabilities decreased to $1.60 billion as of September 30, 2024, from $1.63 billion at the end of 2023[8] - Total stockholders' equity as of September 30, 2024, was $158,684, down from $228,299 as of September 30, 2023, indicating a decrease of about 30.5%[18] - Cash, cash equivalents, and marketable securities totaled approximately $1.0 billion as of September 30, 2024[154] Expenses - Research and development expenses for Q3 2024 were $87.3 million, slightly down from $93.9 million in Q3 2023[10] - Sales and marketing expenses increased to $97.9 million in Q3 2024, compared to $68.9 million in Q3 2023[10] - Total costs and operating expenses for the three months ended September 30, 2024, were $308.8 million, compared to $256.6 million for the same period in 2023[182] - General and administrative expenses for the three months ended September 30, 2024, were $49.1 million, compared to $36.2 million for the same period in 2023[182] - Research and development expenses for the three months ended September 30, 2024, were $18.6 million, up from $8.5 million in the same period in 2023, reflecting a significant investment in innovation[130] Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2024, was $104,045, significantly higher than $66,439 for the same period in 2023, marking a rise of about 56.5%[20] - The company recorded a cumulative stock-based compensation expense of $23.5 million in Q3 2024 related to performance-based restricted stock units (PSUs)[126] - Future stock-based compensation for unvested restricted stock units as of September 30, 2024 is estimated at $119.1 million, expected to be recognized over 2.0 years[124] - The company recognized total stock-based compensation expense of $49.8 million for the three months ended September 30, 2024, compared to $21.8 million in the same period of 2023[130] - Stock-based compensation recorded for PSUs was $22.7 million for Q3 2024, compared to $0.8 million for Q3 2023[127] Product Development and Launches - The company launched the Shield blood test for colorectal cancer screening, which received FDA approval in July 2024 and became commercially available in August 2024[23] - The Guardant360 LDT and Guardant360 CDx tests are now being used as companion diagnostics for non-small cell lung cancer and breast cancer, enhancing the company's product offerings in precision oncology[22] - The company has developed the GuardantINFORM platform to assist biopharmaceutical companies in accelerating precision oncology drug development[22] - The Shield blood test demonstrated 83% sensitivity and 90% specificity in detecting colorectal cancer, exceeding CMS performance criteria[162] - The Guardant360 CDx test received ADLT status from CMS, leading to increased reimbursement rates effective January 1, 2022[158] Market and Customer Insights - For the three months ended September 30, 2024, Customer B represented 28% of total revenue, down from 33% in the same period of 2023[39] - Precision oncology revenue from clinical tests covered by Medicare was approximately 38% in Q3 2024, down from 45% in Q3 2023[155] - Precision oncology revenue from clinical customers was $141.2 million for the three months ended September 30, 2024, up 36% from $103.9 million for the same period in 2023, driven by increased sample volume and reimbursement[186] - Total tests for clinical customers increased to approximately 53,100 for the three months ended September 30, 2024, from approximately 43,900 for the same period in 2023[186] - Precision oncology revenue from biopharmaceutical customers was $39.4 million for the three months ended September 30, 2024, up 34% from $29.5 million for the same period in 2023, primarily due to increased sample volume[187] Compliance and Legal Matters - The company recorded a liability of $83.4 million in Q4 2023 due to a jury verdict for willful infringement of patents, resulting in a 6% royalty on past sales[110] - The company has entered into a Collaboration Agreement with Illumina to advance cancer research and dismissed a prior lawsuit with prejudice[111] - The company is seeking an injunction and compensatory damages in a patent infringement suit against Tempus AI, Inc.[112] Future Outlook - The Company expects to recognize substantially all of the remaining transaction price allocated to performance obligations in the next 1-2 years, indicating a strong revenue pipeline[59] - The company expects to expand into lung and multi-cancer screening with the next-generation Shield assay[151] - The company signed a partnership with Agostino Gemelli University Polyclinic Foundation IRCCS in September 2024 to establish liquid biopsy testing services in Italy[164]

Revenue and Growth - Revenue for Q3 2024 was $191.5 million, a 34% increase from $143.0 million in Q3 2023[2] - The company raised its 2024 revenue guidance to $720 to $725 million, reflecting a growth of 28% to 29%[4] - Guardant360 average selling price (ASP) exceeded $3,000, contributing to revenue growth[1] Clinical and Operational Performance - Clinical tests totaled 53,100, up 21%, and biopharma tests reached 10,500, up 40% compared to Q3 2023[1] - Medicare pricing for Shield was set at $920, effective August 1, 2024, enhancing its market position[1] - The company entered a partnership with Policlinico Gemelli in Italy to test advanced cancer patients locally[1] Financial Performance - Gross profit for Q3 2024 was $117.0 million, with a gross margin of 61%, up from 60% in the prior year[3] - Net loss for Q3 2024 was $107.8 million, compared to a net loss of $86.1 million in Q3 2023[3] - GAAP net loss for the three months ended September 30, 2024, was $107,754 thousand, compared to a net loss of $86,102 thousand for the same period in 2023, representing a 25% increase in losses[17] - Non-GAAP net loss for the nine months ended September 30, 2024, was $169,898 thousand, down from $276,441 thousand in the same period of 2023, indicating a 39% improvement[17] Expenses and Cash Flow - Operating expenses increased to $234.3 million in Q3 2024, compared to $199.0 million in Q3 2023[3] - Free cash flow improved to $(55) million in Q3 2024, compared to $(80) million in Q3 2023[3] - Stock-based compensation expense for the three months ended September 30, 2024, was $50,022 thousand, significantly higher than $22,099 thousand for the same period in 2023[18] - Net cash used in operating activities for the nine months ended September 30, 2024, was $(175,345) thousand, down from $(246,247) thousand in the same period of 2023, reflecting a decrease of 28.8%[19] Assets and Liabilities - Total current assets decreased to $1,226,715 thousand from $1,347,106 thousand, a decline of approximately 9%[14] - Cash and cash equivalents dropped significantly from $1,133,537 thousand to $688,368 thousand, a decrease of about 39%[14] - Total liabilities decreased slightly from $1,627,737 thousand to $1,598,823 thousand, a reduction of approximately 2%[14] Other Financial Metrics - Non-GAAP gross profit excluding cost of screening increased to $123,963 thousand from $89,679 thousand, a growth of 38%[16] - Adjusted EBITDA for the nine months ended September 30, 2024, was $(179,180) thousand, an improvement from $(265,834) thousand for the same period in 2023[18] - Interest income for the three months ended September 30, 2024, was $(13,257) thousand, compared to $(11,690) thousand in the same period of 2023, showing an increase of 13.4%[18] - Other expense (income), net for the three months ended September 30, 2024, was $3,007 thousand, a significant change from $(16,885) thousand in the same period of 2023[18]

Wall Street analysts forecast that Guardant Health (GH) will report quarterly loss of $0.55 per share in its upcoming release, pointing to a year-over-year increase of 24.7%. It is anticipated that revenues will amount to $169.87 million, exhibiting an increase of 18.8% compared to the year-ago quarter.Over the last 30 days, there has been an upward revision of 1.8% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration o ...

There's nothing like free publicity to help goose the sales of a relatively new product. Cancer-diagnostics specialist Guardant Health (GH 5.87%) was a standout in the biotech sector on Hump Day. Investors cheered the company's news that one of its products made it onto a list of top innovations compiled by a familiar magazine. In response, they traded Guardant's shares up by almost 6%, making it quite the outperformer when matched against the S&P 500 index's 0.3% drop on the day. One of the top innovations ...

Guardant Health (GH) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Nove ...

Guardant Health needs cash. Until it can get it from selling enough services, it must sell its own shares instead. Shares of precision medicine company Guardant Health (GH -11.13%), which specializes in liquid biopsies to test for cancer, fell 10.6% through 10:05 a.m. ET Monday morning. Monday was the first trading day in which investors got to react to a Guardant announcement late Friday, that it plans to sell stock and raise $400 million in new cash to fund its operations. Guardant needs money Guardant's ...

After reaching an important support level, Guardant Health (GH) could be a good stock pick from a technical perspective. GH surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend. The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages. The 20-day moving ...

Financial Data and Key Metrics Changes - Total revenue grew 29% to $177.2 million, driven by precision oncology revenue, which increased 33% to $166.5 million [16][23] - Clinical test volume reached a record 49,400 tests in Q2 2024, with a year-over-year growth of 14% [16][23] - Non-GAAP gross margin excluding screening was 62%, down from 64% in Q2 2023 due to test and revenue mix [27] - Registered EBITDA loss was $61.9 million, a decrease of $23.3 million from $85.2 million in Q2 2023 [28] Business Line Data and Key Metrics Changes - Precision oncology revenue from clinical tests increased 30% to $130.2 million [23] - Biopharma revenue grew 45% to $36.2 million, with a record 10,475 tests performed, reflecting a 56% year-over-year increase [16][24] - The launch of Guardant360 LVT provided a significant upgrade, covering 739 genes and quantifying tumor burden with greater sensitivity [17] Market Data and Key Metrics Changes - The Shield blood test for colorectal cancer screening is now available, addressing a market opportunity of 120 million average-risk individuals aged 45 to 84 [9][10] - Medicare coverage for Shield represents a 15 million annual testing opportunity, contributing to a multi-billion dollar market [9][10] - The company anticipates continued growth in clinical volume, expecting approximately 20% growth for the full year 2024 [23] Company Strategy and Development Direction - The company aims to exceed 1 million Shield tests by 2028, bolstered by FDA approval and Medicare coverage [10][11] - Guardant Health is focused on building a sustainable and profitable business model, emphasizing the value of its tests in improving health outcomes [45] - The company plans to ramp up its sales force to 100 by the end of the year to support the Shield launch [61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term viability of Shield, citing its first-mover advantage and robust clinical evidence [36][39] - The company is optimistic about achieving cash flow breakeven by 2028, with over $1 billion in cash reserves [29][30] - Management highlighted the importance of ongoing clinical studies and publications to support future Medicare coverage and guideline inclusion [49] Other Important Information - The company is actively managing cash burn and expects to achieve gross margin positivity for its MRD business by 2025 [21][31] - The recent FDA approval of Shield is seen as a historic milestone for both the company and the liquid biopsy field [13] Q&A Session Summary Question: Expectations on Medicare coverage in the CRC surveillance space - Management confirmed existing coverage for Guardant Reveal and expressed optimism about obtaining additional coverage for surveillance settings based on recent study outcomes [33][34] Question: Potential for ADLT status on Shield - Management indicated that ADLT designation is expected in 2025, contingent on meeting clear criteria [35][36] Question: Insights on Shield's competitive position - Management emphasized the significant barriers for competitors to achieve similar FDA approvals and performance metrics, reinforcing Shield's market position [38][39] Question: Biopharma business performance and guidance - Management noted strong uptake of Guardant Infinity and a healthy pipeline, leading to an increase in biopharma revenue growth expectations for 2024 [40][42] Question: Rationale behind Shield's pricing strategy - Management justified the pricing based on the health outcome benefits and the economic value of the test, asserting that it reflects the test's value in the marketplace [44][45] Question: Marketing plans for Shield - Management outlined a direct sales approach to promote Shield, leveraging media attention and focusing on educating physicians and patients about the test [63][66]

Wall Street analysts forecast that Guardant Health (GH) will report quarterly loss of $0.57 per share in its upcoming release, pointing to a year-over-year increase of 14.9%. It is anticipated that revenues will amount to $161.93 million, exhibiting an increase of 18.1% compared to the year-ago quarter. The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial p ...