UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 March 31, 2023 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: 001-38683 _____________________ GUARDANT HEALTH, INC. (Exact Name of Registrant as Specif ...

Shield LDT screening commercial team • Implementing efficiencies and workforce reduction across all areas of the business • Therapy Selection on-track to be breakeven in ~12 months • $1B cash balance provides >3 year runway and will fund continued investments in MRD and Screening 16 FY 2023 guidance ▪ Total Revenue: $525 – $540 million, growth of 17% to 20% y/y ▪ Precision Oncology Revenue: >20% growth over 2022 ▪ Development Services & Other Revenue: > $50 million ▪ Operating Expenses: below FY 2022 ▪ Free ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $126.9 million, up 17% from $108.1 million in the prior year quarter [51] - Full year revenue reached $449.5 million, representing a 20% increase from $373.7 million in the previous year [23] - Gross profit for Q4 2022 was $79.8 million, compared to $74.7 million in the same period of the prior year, with a gross margin of 63% [22] - Operating expenses for Q4 2022 were $225.9 million, an increase of 31% compared to $172.9 million in Q4 2021 [23] - Net loss for Q4 2022 was $139.9 million, or $1.36 per share, compared to a net loss of $90.9 million, or $0.89 per share, in Q4 2021 [23] Business Line Data and Key Metrics Changes - Precision oncology revenue from clinical tests was $83.7 million, up 13% from $64.2 million for the prior year quarter [5] - Clinical test volume for the year grew to 124,800, up 42% year-over-year from 87,600 tests [25] - Biopharma testing revenue in Q4 totaled $30.1 million, up 23% from $24.5 million in the prior year quarter [20] - Development services and other revenue in Q4 totaled $13.1 million, down 33% from the prior year quarter [21] Market Data and Key Metrics Changes - Guardant360 ASP was in the range of $2,600 to $2,700, consistent with the last few quarters [19] - Blended clinical ASP for 2022 was approximately $2,400, lower than the $2,700 in 2021 [25] - Biopharma ASP in the full year was approximately $3,610, slightly down from $3,650 in the prior year [26] Company Strategy and Development Direction - The company aims to reduce operating expenses below 2022 levels and improve free cash outflow to $350 million in 2023 [32] - Focus on maximizing opportunities in precision oncology while managing costs and expanding market penetration for new products [33] - The company plans to continue investing in clinical data development for reimbursement and technical development for lung and other cancers [33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of the Shield screening test and its potential to improve compliance and save lives [4][3] - The company expects full year 2023 revenue to be in the range of $525 million to $540 million, representing growth of approximately 17% to 20% compared to 2022 [34] - Management highlighted the importance of operational efficiencies and infrastructure to support growth in oncology diagnostics [32] Other Important Information - The company has initiated a prospective study, U-Screen, to examine whether Shield improves overall CRC screening in medically underserved populations [49] - The company ended 2022 with approximately $1 billion in cash, reflecting a free cash outflow of $387 million [31] Q&A Session Summary Question: Insights on Reveal assumptions for 2023 revenue guidance - Management indicated optimism about Reveal's growth, projecting low double-digit millions in revenue for 2023, driven by increasing traction in key tumor types [10] Question: Dynamics in the biopharma market and competitive landscape - Management acknowledged headwinds from the Inflation Reduction Act but maintained a strong pipeline and order book for 2023 [84][103] Question: Expected timeline for FDA approval and publication of ECLIPSE data - Management expects PMA submission to the FDA by the end of the quarter and anticipates approval in early 2024 [71][105] Question: Importance of U-Screen study for guideline inclusion - Management emphasized that U-Screen is part of a broader strategy to generate evidence supporting guideline inclusion and commercial adoption of the Shield test [112]

Part I [Business](index=5&type=section&id=Item%201.%20Business) Guardant Health is a precision oncology company offering proprietary tests and analytics for cancer care, generating revenue from clinical testing and biopharmaceutical collaborations, subject to extensive regulation and focused on international expansion - The company focuses on precision oncology, offering proprietary tests such as **Guardant360 CDx**, **Guardant Reveal**, and the new **Shield LDT** for colorectal cancer screening[21](index=21&type=chunk)[23](index=23&type=chunk) - International expansion is a key strategy, highlighted by the full acquisition of the Guardant Health AMEA joint venture for **$177.8 million** in June 2022, enhancing control over operations in Asia, the Middle East, and Africa[49](index=49&type=chunk)[50](index=50&type=chunk) - Significant investment in clinical evidence includes the **20,000-patient ECLIPSE study** for the Shield blood test, demonstrating **83% sensitivity** in detecting colorectal cancer[33](index=33&type=chunk)[43](index=43&type=chunk) - The company relies on a limited number of suppliers, including a long-term agreement with **Illumina** for sequencers and consumables until **January 2033**[69](index=69&type=chunk) [Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks including significant net losses, market acceptance challenges, intense competition, complex regulatory hurdles for LDTs, and cybersecurity threats - The company has a history of significant financial losses, with a **net loss of $654.6 million** in 2022 and an accumulated deficit of **$1.7 billion** as of December 31, 2022, making profitability a primary risk[165](index=165&type=chunk) - A significant portion of revenue is from a limited number of payers, with **Medicare accounting for approximately 45%** of precision oncology revenue in 2022, posing a risk from policy changes[185](index=185&type=chunk) - Regulatory changes for Laboratory Developed Tests (LDTs) like **Guardant360** and **Guardant Reveal** pose a key risk, potentially leading to more stringent and costly FDA requirements[218](index=218&type=chunk)[219](index=219&type=chunk) - Intense competition exists from liquid biopsy and traditional genomic profiling companies, including **Foundation Medicine (Roche)**, **GRAIL**, and **Exact Sciences**, some with greater resources[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk) - Cybersecurity is a notable risk due to handling sensitive patient health information (PHI), where a breach could result in substantial liability and reputational harm[393](index=393&type=chunk)[394](index=394&type=chunk) [Properties](index=82&type=section&id=Item%202.%20Properties) Guardant Health's headquarters are in Palo Alto, California, with primary CAP-accredited and CLIA-certified laboratories in Redwood City and San Diego, California - The company's headquarters are in **Palo Alto, CA**, with a **12-year lease** for approximately **249,500 sq. ft.** from July 2020[400](index=400&type=chunk) - Primary laboratory operations are in **Redwood City, CA**, and **San Diego, CA**, totaling approximately **200,000 sq. ft.**[400](index=400&type=chunk) [Legal Proceedings](index=82&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in significant legal proceedings, including patent infringement lawsuits and a civil investigative demand regarding billing practices, with uncertain outcomes - The company is engaged in ongoing patent infringement litigation with **TwinStrand Biosciences** and a separate suit with **Illumina** alleging trade secret misappropriation[657](index=657&type=chunk)[658](index=658&type=chunk) - In January 2022, Guardant Health received a Civil Investigative Demand (CID) from the U.S. Attorney's Office regarding an investigation under the **False Claims Act** concerning billing for its **Guardant360** test[660](index=660&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=82&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Guardant Health's common stock trades on Nasdaq under "GH"; the company has never paid cash dividends and intends to retain all earnings for growth - The company's common stock trades on the **Nasdaq Global Select Market** under the symbol **"GH"**[403](index=403&type=chunk) - Guardant Health has never declared or paid dividends, intending to retain all future earnings for business operations and expansion[404](index=404&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=83&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal year 2022, total revenue grew **20%** to **$449.5 million**, driven by precision oncology testing, though net loss widened to **$654.6 million** due to fair value adjustments and increased operating expenses, while maintaining strong liquidity Key Financial Results (2022 vs. 2021) | Metric | 2022 (in millions) | 2021 (in millions) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **$449.5** | **$373.7** | **+20%** | | Precision Oncology Testing Revenue | $392.0 | $304.3 | +29% | | Development Services & Other Revenue | $57.5 | $69.3 | -17% | | **Net Loss** | **($654.6)** | **($384.8)** | **+70%** | | R&D Expense | $373.8 | $263.2 | +42% | | Sales & Marketing Expense | $299.8 | $191.9 | +56% | - Precision oncology revenue growth was driven by a significant increase in clinical test volume, from approximately **87,600 tests** in 2021 to **124,800** in 2022[445](index=445&type=chunk) - The 2022 net loss included a **$99.8 million non-cash charge** for fair value adjustments related to the full acquisition of the Guardant Health AMEA joint venture[458](index=458&type=chunk)[467](index=467&type=chunk) - As of December 31, 2022, the company maintained a strong liquidity position with approximately **$1.0 billion** in cash, cash equivalents, and marketable debt securities[414](index=414&type=chunk)[463](index=463&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=102&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on its investment portfolio, with foreign currency risk expected to increase with international expansion - The company faces interest rate risk on its investment portfolio; a hypothetical **100 basis point** change would impact available-for-sale securities by approximately **$4.2 million** as of year-end 2022[512](index=512&type=chunk) - Foreign currency risk is currently insignificant due to U.S.-centric revenue, but is expected to increase with international expansion[513](index=513&type=chunk) [Financial Statements and Supplementary Data](index=103&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Guardant Health's audited consolidated financial statements for fiscal year 2022, including balance sheets, statements of operations, and cash flows, reflecting **$1.61 billion** in total assets and a **$654.6 million** net loss [Consolidated Balance Sheets](index=106&type=section&id=Consolidated%20Balance%20Sheets) As of December 31, 2022, total assets decreased to **$1.61 billion**, total liabilities were **$1.55 billion**, and total stockholders' equity significantly decreased to **$60.2 million** due to the net loss Consolidated Balance Sheet Highlights (as of Dec 31) | Account | 2022 (in millions) | 2021 (in millions) | | :--- | :--- | :--- | | Cash, cash equivalents, & marketable securities | $1,011.2 | $1,630.8 | | Total Assets | $1,610.0 | $2,204.5 | | Convertible senior notes, net | $1,137.4 | $1,134.8 | | Total Liabilities | $1,549.8 | $1,559.5 | | Total Stockholders' Equity | $60.2 | $645.0 | [Consolidated Statements of Operations](index=108&type=section&id=Consolidated%20Statements%20of%20Operations) For 2022, total revenue increased to **$449.5 million**, but loss from operations widened to **$544.4 million**, resulting in a net loss of **$654.6 million** or **($6.41) per share**, exacerbated by fair value adjustments Consolidated Statement of Operations (Year Ended Dec 31) | Metric | 2022 (in millions) | 2021 (in millions) | 2020 (in millions) | | :--- | :--- | :--- | :--- | | Total Revenue | $449.5 | $373.7 | $286.7 | | Total Costs and Operating Expenses | $993.9 | $784.7 | $541.7 | | Loss from Operations | ($544.4) | ($411.0) | ($255.0) | | Net Loss | ($654.6) | ($384.8) | ($246.3) | | Net Loss Per Share | ($6.41) | ($4.00) | ($2.60) | [Consolidated Statements of Cash Flows](index=111&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For 2022, net cash used in operating activities increased to **$309.5 million**, while investing activities provided **$149.8 million**, and financing activities used **$189.1 million**, resulting in a **$350.3 million** net decrease in cash Consolidated Cash Flow Summary (Year Ended Dec 31) | Activity | 2022 (in millions) | 2021 (in millions) | | :--- | :--- | :--- | | Net cash used in operating activities | ($309.5) | ($209.0) | | Net cash provided by (used in) investing activities | $149.8 | ($63.2) | | Net cash used in financing activities | ($189.1) | ($66.8) | | **Net decrease in cash, cash equivalents and restricted cash** | **($350.3)** | **($340.7)** | [Controls and Procedures](index=147&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, a conclusion affirmed by the independent auditor - Management concluded that the company's disclosure controls and procedures were effective as of **December 31, 2022**[718](index=718&type=chunk) - Based on the **COSO framework**, management concluded that internal control over financial reporting was effective as of **December 31, 2022**, a conclusion audited and confirmed by the independent registered public accounting firm[719](index=719&type=chunk)[724](index=724&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=150&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2023 Proxy Statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming **2023 Proxy Statement**[732](index=732&type=chunk) [Executive Compensation](index=150&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation is incorporated by reference from the forthcoming 2023 Proxy Statement - Information regarding executive compensation is incorporated by reference from the forthcoming **2023 Proxy Statement**[733](index=733&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=150&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information concerning security ownership of certain beneficial owners and management is incorporated by reference from the forthcoming 2023 Proxy Statement - Information regarding security ownership is incorporated by reference from the forthcoming **2023 Proxy Statement**[734](index=734&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=150&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning certain relationships, related transactions, and director independence is incorporated by reference from the forthcoming 2023 Proxy Statement - Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the forthcoming **2023 Proxy Statement**[735](index=735&type=chunk) [Principal Accounting Fees and Services](index=150&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information concerning principal accounting fees and services is incorporated by reference from the forthcoming 2023 Proxy Statement - Information regarding principal accounting fees and services is incorporated by reference from the forthcoming **2023 Proxy Statement**[736](index=736&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=150&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists exhibits filed with the 10-K, noting the omission of financial statement schedules as information is included elsewhere or not applicable - All financial statement schedules have been omitted as the required information is either not applicable or included within the consolidated financial statements or notes[738](index=738&type=chunk)

Financial Data and Key Metrics Changes - Guardant Health reported record revenue of $117 million for Q3 2022, representing a 24% increase year-over-year [12][45] - Precision oncology revenue reached $102.1 million, up 29% compared to the prior year [45] - Gross profit for Q3 2022 was $76.9 million, with a gross margin of 66%, slightly down from 67% in the prior year [52] - The net loss for Q3 2022 was $162 million, or $1.58 per share, compared to a net loss of $107.5 million, or $1.06 per share, in Q3 2021 [53] Business Line Data and Key Metrics Changes - Clinical test volume increased to over 32,400 tests, a 42% rise compared to the prior year [13][47] - Biopharma volume reached 6,750 samples, up 40% year-over-year [17][50] - Development services and other revenue totaled $15.4 million, down 1% from the prior year [51] Market Data and Key Metrics Changes - The company noted a significant increase in the number of oncologists ordering multiple Guardant products, contributing to growth despite staffing shortages and access restrictions [14][60] - The Medicare reimbursement rate for Guardant Reveal for colorectal cancer increased from approximately $3,600 to over $4,900 [16][46] Company Strategy and Development Direction - Guardant Health is focused on expanding its oncology product pipeline and enhancing its commercial infrastructure, particularly for the Shield LDT test [55][65] - The company aims to address the unmet need in colorectal cancer screening, targeting the noncompliant population with its Shield test [11][27] - Guardant Health is optimistic about the potential of its new smart liquid biopsy platform, Guardant Infinity, which is expected to drive future growth [18][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the operating environment, including staffing shortages and lingering access restrictions, which have impacted growth expectations [59][60] - Despite lowering revenue guidance for 2022 to a range of $440 million to $450 million, management remains confident in the core business's strength, citing a 40% year-over-year volume growth [58][63] - The company is preparing for continued growth in 2023, although it anticipates a lower growth rate compared to previous expectations [100] Other Important Information - The company has a strong cash position, ending Q3 2022 with approximately $1.1 billion in cash and equivalents, allowing it to fund operations for the foreseeable future [57] - Guardant Health is actively pursuing FDA approval for its Shield test and plans to submit its final PMA module for the ECLIPSE study in Q4 [26][65] Q&A Session Summary Question: Timeline and learnings from the Shield launch - Management confirmed that the ECLIPSE trial readout is expected in Q4, with database locking imminent [71] - Performance data from the Shield LDT is anecdotal, making it difficult to assess true sensitivity and specificity [72] Question: Staffing challenges and competition - Management noted that while growth is strong, it has not met initial expectations due to slower recovery from COVID-19 impacts [75] - The company believes it is still gaining market share in the liquid biopsy field despite competitive pressures [77] Question: Reveal reimbursement and cost management - The price increase for Reveal was due to ongoing discussions with MolDX, reflecting the test's value [81] - Management is carefully managing operating expenses to mitigate the impact of reduced revenue guidance [84] Question: Future growth expectations - Management is cautious about providing specific 2023 guidance but is comfortable with a growth rate around 20% based on current trends [100] Question: Shield test commercialization and sales force - The current sales force is about 100 people, with plans to expand as the company builds ASP and approaches FDA approval [115]

Q3 2022 Earnings Call November 3, 2022 Safe Harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking statements within the meaning of federal securities laws. These statements relate to future events or Guardant Health, Inc. (the "Company")'s future results and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially differe ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 September 30, 2022 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: 001-38683 _____________________ GUARDANT HEALTH, INC. (Exact Name of Registrant as Sp ...

Guardant Health, Inc. (NASDAQ:GH) Q2 2022 Earnings Conference Call August 4, 2022 4:30 PM ET Company Participants Alex Kleban - Vice President, Investor Relations Helmy Eltoukhy - Co-Chief Executive Officer AmirAli Talasaz - Co-Chief Executive Officer Mike Bell - Chief Financial Officer Conference Call Participants Puneet Souda - SVB Securities Jack Meehan - Nephron Research Mark Massaro - BTIG Brian Weinstein - William Blair Kyle Mikson - Canaccord Matt Sykes - Goldman Sachs Daniel Macek - Stifel David We ...

Q2 2022 Earnings Call August 4, 2022 Safe harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking statements within the meaning of federal securities laws. These statements relate to future events or Guardant Health, Inc. (the "Company")'s future results and involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the Company or its industry to be materially different ...

Revenue Performance - Total revenue for the three months ended June 30, 2022, was $109,144,000, representing a 18.5% increase from $92,101,000 in the same period of 2021[17]. - Precision oncology testing revenue increased to $92,062,000 for the three months ended June 30, 2022, up 26.7% from $72,604,000 in the prior year[17]. - The company’s revenue from the United States for the three months ended June 30, 2022, was $100.836 million, up from $87.868 million in the same period of 2021, marking an increase of approximately 14.1%[170]. - Revenue from clinical tests for patients covered by Medicare represented approximately 45% of precision oncology revenue from clinical customers for the three months ended June 30, 2022[180]. - Revenue from clinical customers for precision oncology testing was $70.5 million for the three months ended June 30, 2022, a 15% increase from $61.1 million for the same period in 2021[209]. - Revenue from biopharmaceutical customers for precision oncology testing was $21.6 million for the three months ended June 30, 2022, compared to $11.6 million for the same period in 2021[210]. Financial Losses - The net loss for the three months ended June 30, 2022, was $229,432,000, compared to a net loss of $97,575,000 for the same period in 2021, reflecting a significant increase in losses[17]. - The company reported a comprehensive loss of $235,379,000 for the three months ended June 30, 2022, compared to a comprehensive loss of $98,446,000 in the same period of 2021[20]. - For the three months ended June 30, 2022, the net loss was $229,432 thousand, compared to a net loss of $97,575 thousand for the same period in 2021, representing an increase in loss of approximately 134%[24]. - The net loss attributable to common stockholders was calculated at $0.75 per share for the period, with diluted net loss per share also reflecting the same amount due to anti-dilutive effects[84]. - The net loss attributable to Guardant Health, Inc. common stockholders for the three months ended June 30, 2022, was $229.432 million, compared to a net loss of $97.575 million for the same period in 2021, representing an increase of approximately 134%[166]. Research and Development - Research and development expenses for the six months ended June 30, 2022, totaled $167,212,000, a 40.2% increase from $119,232,000 in the same period of 2021[17]. - Research and development expenses for the three months ended June 30, 2022, were $85.5 million, an increase from $63.7 million for the same period in 2021[205]. - The company anticipates continued investment in research and development to drive future growth and innovation in precision oncology[11]. - The company expects that research and development expenses will continue to increase in absolute dollars as it innovates and develops additional products[197]. Assets and Liabilities - Total current assets decreased to $1,037,139,000 as of June 30, 2022, down from $1,114,126,000 at the end of 2021[14]. - Total liabilities as of June 30, 2022, were $1,534,650,000, slightly down from $1,559,494,000 at the end of 2021[14]. - The total stockholders' equity as of June 30, 2022, was $319,087 thousand, a decrease from $788,065 thousand as of June 30, 2021, indicating a decline of approximately 60%[24]. - The company had cash and cash equivalents of $215,169,000 as of June 30, 2022, a decrease from $492,202,000 at the end of 2021[14]. - The company had cash, cash equivalents, and marketable securities of approximately $1.2 billion as of June 30, 2022[178]. Investments and Acquisitions - The company completed the acquisition of Guardant Health AMEA, Inc. in June 2022, gaining full ownership of the joint venture previously held with SoftBank, enhancing its market presence in the AMEA region[2]. - The company completed the purchase of all shares held by SoftBank for $177.8 million in June 2022, gaining full control over operations in the Asia, Middle East, and Africa region[183]. - As of June 30, 2022, the company's non-marketable equity investments totaled $52.2 million, up from $39.4 million as of December 31, 2021, indicating a strategic focus on expanding its investment portfolio[3]. Stock-Based Compensation - The total stock-based compensation expense was $25.544 million for the three months ended, compared to $34.507 million in the same period of 2021, reflecting a decrease of approximately 26.5%[153]. - The total intrinsic value of options exercised was $2.0 million for the three months ended June 30, 2022, compared to $11.1 million for the same period in 2021, indicating a decrease of 82%[139]. - The weighted-average grant date fair value of options granted was $23.41 per share for the three months ended June 30, 2022, down from $81.79 per share in 2021, representing a decline of 71%[140]. - Future stock-based compensation for unvested options as of June 30, 2022, is estimated at $32.7 million, expected to be recognized over a weighted-average period of 2.9 years[140]. Operational Highlights - Guardant Health has launched several proprietary tests, including Guardant360 LDT and Guardant360 CDx, which are FDA-approved for tumor mutation profiling in solid tumors[1]. - The company is expanding into multi-cancer screening with its investigational next-generation Guardant SHIELD assay, which has shown high accuracy in detecting early-stage cancers[9]. - The Guardant360 CDx test received regulatory approval in Japan for identifying patients with advanced solid tumors who may benefit from specific cancer treatments[186]. - The company initiated a 1,000-patient prospective study for the Guardant Reveal test in October 2021, aimed at evaluating its performance in predicting cancer recurrence[186]. - A strategic partnership was signed with Adicon Holdings Limited in June 2022 to offer genomic profiling tests to biopharmaceutical companies in China[185]. Future Outlook - The company expects to recognize substantially all of the remaining transaction price allocated to performance obligations in the next 1-2 years[75]. - The company expects sales and marketing expenses to increase in absolute dollars as it expands its sales force and marketing activities[198]. - The company believes its existing cash and cash equivalents will be sufficient to fund operations for at least one year from the financial statement date, although it continues to incur losses[7].