Financial Performance - Total revenue for Q1 2024 was $168.491 million, a 30.9% increase from $128.714 million in Q1 2023[15] - Revenue from precision oncology testing reached $156.229 million, up 37.8% compared to $113.393 million in the same period last year[15] - Net loss for Q1 2024 was $114.985 million, a decrease from a net loss of $133.533 million in Q1 2023, representing a 13.9% improvement[15] - Basic and diluted net loss per share improved to $0.94 in Q1 2024 from $1.30 in Q1 2023[15] - The company reported a comprehensive loss of $116.109 million for Q1 2024, compared to a comprehensive loss of $126.161 million in Q1 2023[19] - The net loss for the three months ended March 31, 2024, was $114.985 million, an improvement from a net loss of $133.533 million in the same period of 2023, representing a decrease of approximately 14%[26] - The company reported a net cash provided by investing activities of $28.066 million in Q1 2024, a decrease from $157.224 million in Q1 2023[26] - The company had an accumulated deficit of $2.3 billion as of March 31, 2024, and expects to incur additional operating losses in the near future[199] Assets and Liabilities - Total current assets decreased to $1.309 billion as of March 31, 2024, from $1.347 billion as of December 31, 2023[13] - Total liabilities increased slightly to $1.636 billion as of March 31, 2024, compared to $1.628 billion as of December 31, 2023[13] - Cash, cash equivalents, and restricted cash totaled $1.129 billion as of March 31, 2024, compared to $1.134 billion as of December 31, 2023[13] - Cash and cash equivalents, along with restricted cash, totaled $1.129 billion as of March 31, 2024, compared to $223.714 million at the end of Q1 2023, showing a significant increase[26] - As of March 31, 2024, the company had cash, cash equivalents, and restricted cash of approximately $1.1 billion[155] Research and Development - Research and development expenses were $83.802 million in Q1 2024, down from $93.128 million in Q1 2023, indicating a 10% reduction[15] - Research and development expenses include costs incurred for technology development, totaling significant amounts related to salaries, supplies, and infrastructure[67] - The company collaborates with biopharmaceutical companies for drug development, generating revenue from milestone achievements and ongoing support[56] Revenue Recognition - The company recognizes revenue from precision oncology testing when results are reported to physicians, with variable consideration based on historical reimbursement data[53] - Revenue recognized in Q1 2024 from deferred revenue was $7.1 million, compared to $6.4 million in Q1 2023[63] - The company expects to recognize substantially all remaining transaction price allocated to performance obligations in the next 1-2 years[64] Customer Contributions - Revenue from significant customers included Customer B contributing 31% of total revenue for both Q1 2024 and Q1 2023, while Customer A accounted for 16% of accounts receivable as of March 31, 2024[44] - Revenue from clinical tests for patients covered by Medicare represented approximately 41% of precision oncology revenue from clinical customers for the three months ended March 31, 2024[156] Stock and Financing - The Company issued $1.15 billion principal amount of 0% Convertible Senior Notes due 2027, with a net carrying amount of $1.140611 billion as of March 31, 2024[92][98] - The total estimated fair value of the 2027 Notes was $782.8 million as of March 31, 2024[99] - The Company may seek additional funding through equity sales or debt financing due to liquidity concerns[202] Legal and Compliance - The Company received a Civil Investigative Demand in January 2022 regarding billing for its Guardant360 genetic tests, and is cooperating with the investigation[117] - The Company is involved in a false advertising dispute with Natera, with a trial scheduled for August 2024[116] Future Outlook - The company expects to increase sales and marketing expenses to support international expansion and enhance its commercial footprint globally[159] - The company anticipates that capital expenditure requirements could increase if additional laboratory capacity is needed due to rising demand for its tests[199] Operational Highlights - The company launched the Shield LDT test for colorectal cancer screening, with a premarket approval application submitted to the FDA in March 2023, and a review scheduled for May 2024[30] - Guardant Health has launched several advanced tests, including Guardant360 LDT and Guardant360 CDx, which are FDA-approved for tumor mutation profiling in solid tumors[28] - The company launched the Shield LDT test for colorectal cancer detection in May 2022, with a premarket approval application submitted to the FDA in March 2023[153] - The company operates one segment and primarily generates revenue from precision oncology testing and development services[147] - The company’s Redwood City laboratory is certified and accredited, supporting its testing capabilities and compliance with regulatory standards[154]

Revenue Growth and Performance - Revenue for Q1 2024 was $168.5 million, a 31% increase from $128.7 million in Q1 2023[4] - Precision oncology revenue grew 38% to $156.2 million in Q1 2024, driven by a 20% increase in clinical testing volume and a 37% increase in biopharma testing volume[4] - The company raised 2024 revenue guidance to $675-$685 million, representing 20-21% growth compared to the previous range of $655-$670 million[14] - Guardant Health reported 46,900 clinical tests and 8,450 biopharma tests in Q1 2024, representing year-over-year increases of 20% and 37%, respectively[5] - The Medicare reimbursement rate for Guardant360 LDT increased to $5,000 effective January 1, 2024, contributing to revenue growth[4] Profitability and Financial Metrics - Non-GAAP gross profit was $105.3 million in Q1 2024, up from $77.7 million in Q1 2023, with a gross margin of 63% compared to 60% in the prior year[2] - Free cash flow improved to $(37.2) million in Q1 2024 from $(82.0) million in Q1 2023[5] - Non-GAAP net loss improved to $56.4 million in Q1 2024 from $108.5 million in Q1 2023[6] - GAAP net loss improved from $(133,533) thousand in Q1 2023 to $(114,985) thousand in Q1 2024[30] - Adjusted EBITDA improved from $(100,987) thousand in Q1 2023 to $(61,142) thousand in Q1 2024[30] - Non-GAAP net loss improved from $(108,527) thousand in Q1 2023 to $(56,417) thousand in Q1 2024[31] - Non-GAAP gross profit increased from $77,684 thousand in Q1 2023 to $105,321 thousand in Q1 2024[29] Operational and Testing Metrics - Guardant Health surpassed 500 peer-reviewed publications highlighting its technology in scientific literature[5] - The company anticipates FDA approval for Shield IVD in 2024 and expects rapid adoption post-launch[1] Asset and Expense Changes - Total assets decreased from $1,786,421 thousand in December 2023 to $1,704,598 thousand in March 2024[27] - Total current assets decreased from $1,347,106 thousand in December 2023 to $1,308,546 thousand in March 2024[27] - GAAP cost of precision oncology testing increased from $45,106 thousand in Q1 2023 to $59,306 thousand in Q1 2024[29] - GAAP research and development expense decreased from $93,128 thousand in Q1 2023 to $83,802 thousand in Q1 2024[29] - GAAP sales and marketing expense increased from $76,123 thousand in Q1 2023 to $80,425 thousand in Q1 2024[29] - Weighted-average shares used in computing GAAP and Non-GAAP net loss per share increased from 102,663 thousand in Q1 2023 to 121,712 thousand in Q1 2024[31]

Guardant Health (GH) is scheduled to report first-quarter 2024 results on May 9, after market close. In the last reported quarter, the company’s earnings missed expectations by 69.89%.Factors to ConsiderThe Zacks Consensus Estimate for Guardant’s total revenues is pegged at around $151 million, while the same for earnings is pegged at a loss of 72 cents per share. Both metrics indicate improvements over the year-ago quarter’s levels.Through its screening business, Guardant intends to provide critical insigh ...

Wall Street analysts expect Guardant Health (GH) to post quarterly loss of $0.72 per share in its upcoming report, which indicates a year-over-year increase of 44.6%. Revenues are expected to be $150.51 million, up 16.9% from the year-ago quarter.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 announces its earnings, it is essential to ...

Editor's note: Seeking Alpha is proud to welcome Kevin Murphy as a new contributor. It's easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more » angelp/iStock via Getty Images Investment Thesis Guardant Health (NASDAQ:GH) has come under recent stock price pressure, unjustly based on the assumption that their Shield product will be uncompetitive in the CRC market and from fears of compe ...

PALO ALTO, Calif.--(BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today announced that results from the ECLIPSE study showing the effectiveness of its ShieldTM blood test for detecting colorectal cancer (CRC) in average-risk adults will be published in the March 14 issue of The New England Journal of Medicine. “Over 50 million eligible Americans do not get recommended screenings for colorectal cancer, partly because current screening methods are inconvenient or ...

PALO ALTO, Calif.--(BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today announced that on February 15, 2024, the Compensation Committee of Guardant’s Board of Directors approved the granting of restricted stock units (“RSUs”) representing 218,236 shares of its common stock to 82 new non-executive employees and non-qualified stock option awards to purchase an aggregate of 29,048 shares of its common stock to one new non-executive employee with a grant date of Febru ...

PALO ALTO, Calif.--(BUSINESS WIRE)--Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today announced the results of a new survey showing patients and physicians overwhelmingly agree that blood-based testing could help close the colorectal cancer (CRC) screening gap by offering a more pleasant and convenient option. Conducted by The Harris Poll, the ‘Closing the Gap: CRC Screening Insights’ survey was commissioned by Guardant Health to better understand perceptions and attitudes i ...

Guardant Health, Inc. (NASDAQ:GH) Q4 2023 Results Earnings Conference Call February 23, 2024 4:30 PM ET Company Participants Carrie Mendivil - Investor Relations, Gilmartin Group LLC Helmy Eltoukhy - Chairman and co-Chief Executive Officer AmirAli Talasaz - Co-Chief Executive Officer Michael Bell - Chief Financial Officer Conference Call Participants Mark Massaro - BTIG Puneet Souda - Leerink Partners Dan Leonard - UBS Tejas Savant - Morgan Stanley Daniel Arias - Stifel Financial Matthew Sykes - Goldman Sac ...

• Surpassed 300M covered lives for Guardant360 and 200M covered lives for TissueNext 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 ...