Guardant Health(US:GH)2022-08-03 16:00Revenue Performance - Total revenue for the three months ended June 30, 2022, was $109,144,000, representing a 18.5% increase from $92,101,000 in the same period of 2021[17]. - Precision oncology testing revenue increased to $92,062,000 for the three months ended June 30, 2022, up 26.7% from $72,604,000 in the prior year[17]. - The company’s revenue from the United States for the three months ended June 30, 2022, was $100.836 million, up from $87.868 million in the same period of 2021, marking an increase of approximately 14.1%[170]. - Revenue from clinical tests for patients covered by Medicare represented approximately 45% of precision oncology revenue from clinical customers for the three months ended June 30, 2022[180]. - Revenue from clinical customers for precision oncology testing was $70.5 million for the three months ended June 30, 2022, a 15% increase from $61.1 million for the same period in 2021[209]. - Revenue from biopharmaceutical customers for precision oncology testing was $21.6 million for the three months ended June 30, 2022, compared to $11.6 million for the same period in 2021[210]. Financial Losses - The net loss for the three months ended June 30, 2022, was $229,432,000, compared to a net loss of $97,575,000 for the same period in 2021, reflecting a significant increase in losses[17]. - The company reported a comprehensive loss of $235,379,000 for the three months ended June 30, 2022, compared to a comprehensive loss of $98,446,000 in the same period of 2021[20]. - For the three months ended June 30, 2022, the net loss was $229,432 thousand, compared to a net loss of $97,575 thousand for the same period in 2021, representing an increase in loss of approximately 134%[24]. - The net loss attributable to common stockholders was calculated at $0.75 per share for the period, with diluted net loss per share also reflecting the same amount due to anti-dilutive effects[84]. - The net loss attributable to Guardant Health, Inc. common stockholders for the three months ended June 30, 2022, was $229.432 million, compared to a net loss of $97.575 million for the same period in 2021, representing an increase of approximately 134%[166]. Research and Development - Research and development expenses for the six months ended June 30, 2022, totaled $167,212,000, a 40.2% increase from $119,232,000 in the same period of 2021[17]. - Research and development expenses for the three months ended June 30, 2022, were $85.5 million, an increase from $63.7 million for the same period in 2021[205]. - The company anticipates continued investment in research and development to drive future growth and innovation in precision oncology[11]. - The company expects that research and development expenses will continue to increase in absolute dollars as it innovates and develops additional products[197]. Assets and Liabilities - Total current assets decreased to $1,037,139,000 as of June 30, 2022, down from $1,114,126,000 at the end of 2021[14]. - Total liabilities as of June 30, 2022, were $1,534,650,000, slightly down from $1,559,494,000 at the end of 2021[14]. - The total stockholders' equity as of June 30, 2022, was $319,087 thousand, a decrease from $788,065 thousand as of June 30, 2021, indicating a decline of approximately 60%[24]. - The company had cash and cash equivalents of $215,169,000 as of June 30, 2022, a decrease from $492,202,000 at the end of 2021[14]. - The company had cash, cash equivalents, and marketable securities of approximately $1.2 billion as of June 30, 2022[178]. Investments and Acquisitions - The company completed the acquisition of Guardant Health AMEA, Inc. in June 2022, gaining full ownership of the joint venture previously held with SoftBank, enhancing its market presence in the AMEA region[2]. - The company completed the purchase of all shares held by SoftBank for $177.8 million in June 2022, gaining full control over operations in the Asia, Middle East, and Africa region[183]. - As of June 30, 2022, the company's non-marketable equity investments totaled $52.2 million, up from $39.4 million as of December 31, 2021, indicating a strategic focus on expanding its investment portfolio[3]. Stock-Based Compensation - The total stock-based compensation expense was $25.544 million for the three months ended, compared to $34.507 million in the same period of 2021, reflecting a decrease of approximately 26.5%[153]. - The total intrinsic value of options exercised was $2.0 million for the three months ended June 30, 2022, compared to $11.1 million for the same period in 2021, indicating a decrease of 82%[139]. - The weighted-average grant date fair value of options granted was $23.41 per share for the three months ended June 30, 2022, down from $81.79 per share in 2021, representing a decline of 71%[140]. - Future stock-based compensation for unvested options as of June 30, 2022, is estimated at $32.7 million, expected to be recognized over a weighted-average period of 2.9 years[140]. Operational Highlights - Guardant Health has launched several proprietary tests, including Guardant360 LDT and Guardant360 CDx, which are FDA-approved for tumor mutation profiling in solid tumors[1]. - The company is expanding into multi-cancer screening with its investigational next-generation Guardant SHIELD assay, which has shown high accuracy in detecting early-stage cancers[9]. - The Guardant360 CDx test received regulatory approval in Japan for identifying patients with advanced solid tumors who may benefit from specific cancer treatments[186]. - The company initiated a 1,000-patient prospective study for the Guardant Reveal test in October 2021, aimed at evaluating its performance in predicting cancer recurrence[186]. - A strategic partnership was signed with Adicon Holdings Limited in June 2022 to offer genomic profiling tests to biopharmaceutical companies in China[185]. Future Outlook - The company expects to recognize substantially all of the remaining transaction price allocated to performance obligations in the next 1-2 years[75]. - The company expects sales and marketing expenses to increase in absolute dollars as it expands its sales force and marketing activities[198]. - The company believes its existing cash and cash equivalents will be sufficient to fund operations for at least one year from the financial statement date, although it continues to incur losses[7].