Guardant Health(US:GH)2024-11-06 22:12Revenue 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]