Revenue Performance - Total revenue for Q3 2024 was 191.5million,a34143.0 million in Q3 2023[10] - Precision oncology testing revenue reached 180.6million,up35133.4 million year-over-year[10] - Total revenue for the three months ended September 30, 2024, was 191.5million,anincreaseof48.4 million, or 34%, compared to 143.0millionforthesameperiodin2023[185]−Precisiononcologytestingrevenueincreasedto180.6 million for the three months ended September 30, 2024, from 133.4millionforthesameperiodin2023,representingagrowthof47.2 million, or 35%[185] - Total revenue for the nine months ended September 30, 2024, was 537.2million,anincreaseof128.3 million, or 31%, compared to 408.9millionforthesameperiodin2023[201]FinancialLosses−NetlossforQ32024was107.8 million, compared to a net loss of 86.1millioninQ32023[12]−Thecompanyreportedacomprehensivelossof105.4 million for Q3 2024, compared to a comprehensive loss of 83.3millioninQ32023[12]−NetlossforthethreemonthsendedSeptember30,2024,was(107.8) million, compared to (86.1)millionforthesameperiodin2023[182]−NetlossfortheninemonthsendedSeptember30,2024,was325,367, compared to a net loss of 292,406forthesameperiodin2023,representinganincreaseofapproximately11.3107.8 million, compared to 86.1millioninQ32023,indicatinga25.31.23 billion as of September 30, 2024, down from 1.35billionattheendof2023[8]−Cash,cashequivalents,andrestrictedcashdecreasedto688.4 million from 1.13billionattheendof2023[8]−Totalliabilitiesdecreasedto1.60 billion as of September 30, 2024, from 1.63billionattheendof2023[8]−Totalstockholders′equityasofSeptember30,2024,was158,684, down from 228,299asofSeptember30,2023,indicatingadecreaseofabout30.51.0 billion as of September 30, 2024[154] Expenses - Research and development expenses for Q3 2024 were 87.3million,slightlydownfrom93.9 million in Q3 2023[10] - Sales and marketing expenses increased to 97.9millioninQ32024,comparedto68.9 million in Q3 2023[10] - Total costs and operating expenses for the three months ended September 30, 2024, were 308.8million,comparedto256.6 million for the same period in 2023[182] - General and administrative expenses for the three months ended September 30, 2024, were 49.1million,comparedto36.2 million for the same period in 2023[182] - Research and development expenses for the three months ended September 30, 2024, were 18.6million,upfrom8.5 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,significantlyhigherthan66,439 for the same period in 2023, marking a rise of about 56.5%[20] - The company recorded a cumulative stock-based compensation expense of 23.5millioninQ32024relatedtoperformance−basedrestrictedstockunits(PSUs)[126]−Futurestock−basedcompensationforunvestedrestrictedstockunitsasofSeptember30,2024isestimatedat119.1 million, expected to be recognized over 2.0 years[124] - The company recognized total stock-based compensation expense of 49.8millionforthethreemonthsendedSeptember30,2024,comparedto21.8 million in the same period of 2023[130] - Stock-based compensation recorded for PSUs was 22.7millionforQ32024,comparedto0.8 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 141.2millionforthethreemonthsendedSeptember30,2024,up36103.9 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 39.4millionforthethreemonthsendedSeptember30,2024,up3429.5 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]
Guardant Health(GH)2024-11-06 22:12