Guardant Health(US:GH)2025-04-30 21:10Revenue Performance - Revenue for the three months ended March 31, 2025, was $203,471,000, representing a 20.7% increase from $168,491,000 in the same period of 2024[15] - Total revenue for the three months ended March 31, 2025, was $203.471 million, a 20.7% increase from $168.491 million in the same period of 2024[151] - Oncology revenue reached $150.559 million, up 19.7% from $125.748 million year-over-year[50] - Biopharma and data revenue increased to $45.376 million, representing a 20.7% growth compared to $37.587 million in the prior year[50] - Screening revenue was $5.677 million, with no prior year comparison available[50] - Revenue from significant customers included 29% from Customer B and 18% from Customer C for the three months ended March 31, 2025[42] - Revenue from the United States was $193.609 million in Q1 2025, a 23.0% increase from $157.348 million in Q1 2024[152] - International revenue decreased to $9.862 million in Q1 2025 from $11.143 million in Q1 2024, a decline of 11.5%[152] Costs and Expenses - Total costs and operating expenses increased to $314,512,000 for the three months ended March 31, 2025, up from $268,174,000 in 2024, reflecting a 17.3% rise[15] - Research and development expenses for the first quarter of 2025 were $88,521,000, compared to $83,802,000 in 2024, marking a 5.2% increase[15] - Cost of revenue for Q1 2025 was $72.185 million, up from $63.170 million in Q1 2024, reflecting a 17.0% increase[151] - Total accrued expenses increased to $76.0 million as of March 31, 2025, compared to $68.3 million as of December 31, 2024, driven by higher operating lease liabilities and other accrued expenses[75] Net Loss and Financial Position - The net loss for the first quarter of 2025 was $95,159,000, compared to a net loss of $114,985,000 in the same quarter of 2024, indicating a 17.3% improvement[15] - The company reported a basic and diluted net loss per share of $0.77 for the first quarter of 2025, an improvement from $0.94 in the same quarter of 2024[15] - The net loss for the three months ended March 31, 2025, was $95.2 million, an improvement from a net loss of $115.0 million in the same period of 2024, representing a 17% decrease in losses[26] - The company had a total stockholders' deficit of $250,789,000 as of March 31, 2025, worsening from a deficit of $139,647,000 at the end of 2024[13] Cash and Liquidity - Cash and cash equivalents increased to $698,572,000 as of March 31, 2025, up from $525,540,000 at the end of 2024, showing a 32.8% growth[13] - Cash, cash equivalents, and restricted cash at the end of the period totaled $803.9 million, down from $1.1 billion at the end of Q1 2024, reflecting a decrease of approximately 29%[26] - The fair value of cash equivalents and restricted cash was $753.0 million as of March 31, 2025, up from $590.0 million as of December 31, 2024, primarily due to increases in U.S. government debt securities[80][81] - The total cash equivalents and restricted cash increased by approximately 27.6% from December 31, 2024, to March 31, 2025, reflecting improved liquidity management[80][86] Investments and Impairments - The company recorded an impairment of $5.0 million for non-marketable equity securities in Q1 2025, following a prior impairment of $22.1 million in fiscal year 2023[38] - The company recorded $30.1 million in unrealized losses on its investment in Lunit for the three months ended March 31, 2024, reflecting market volatility post-IPO[82] - The fair value of money market funds was $3.7 million as of March 31, 2025, a decrease from $57.2 million as of December 31, 2024, indicating a shift in investment strategy[86] Stockholder Equity and Compensation - The total stock-based compensation expense was $37.8 million, an increase from $27.0 million in the same period of 2024[137] - Future stock-based compensation for unvested options as of March 31, 2025, is estimated at $48.8 million, expected to be recognized over a weighted-average period of 2.3 years[130] - The balance of restricted stock units as of March 31, 2025, was 8,430,026, with a weighted-average grant date fair value of $33.34[131] - The total intrinsic value of options exercised was $1.1 million for the three months ended March 31, 2025, compared to $0.6 million for the same period in 2024[129] Regulatory Approvals and Product Development - The Guardant360 LDT and Guardant360 CDx tests are now FDA-approved for tumor mutation profiling, enhancing the company's product offerings in precision oncology[28] - The Shield LDT test for colorectal cancer screening received FDA approval in July 2024 and became commercially available in August 2024, marking a significant milestone for early cancer detection[30] Debt and Interest - The outstanding principal amount of the 2027 Notes is $490.7 million as of March 31, 2025, down from $1.150 billion as of December 31, 2024[105] - Total interest expense recognized for the three months ended March 31, 2025, was $791,000, an increase from $645,000 in 2024[106] - The effective interest rate for the 2027 Notes is 0.2%, while the effective interest rate for the 2031 Notes is 0.4%[106] Future Outlook and Risks - The Company expects to recognize substantially all remaining transaction price allocated to performance obligations in the next 1-2 years[63] - The company expects future operations and cash flows to be increasingly affected by foreign currency exchange rate fluctuations as it expands internationally[219] - A hypothetical 100 basis point change in interest rates would have an immaterial impact on the fair value of the company's investments as of March 31, 2025[218]