Guardant Health(GH) - 2024 Q3 - Quarterly Results

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]