Guardant Health(US:GH)2023-11-05 16:00Financial Performance - Total revenue for Q3 2023 was $143.03 million, a 21.8% increase from $117.40 million in Q3 2022[16] - Precision oncology testing revenue reached $133.42 million, up 30.7% from $102.05 million year-over-year[16] - Net loss for Q3 2023 was $86.10 million, compared to a net loss of $161.99 million in Q3 2022, representing a 46.8% improvement[16] - The company reported a comprehensive loss of $83.31 million for Q3 2023, compared to a comprehensive loss of $164.59 million in Q3 2022[20] - For the nine months ended September 30, 2023, the net loss was $292,406 thousand, a decrease from the net loss of $514,654 thousand for the same period in 2022, representing a 43% improvement[29] - Total revenue for the three months ended September 30, 2023, was $143.0 million, up from $117.4 million in 2022, representing a 21.8% increase[162] - Net loss for the three months ended September 30, 2023, was $86.1 million, compared to a net loss of $162.0 million in 2022[158] Assets and Cash Position - Total assets increased to $1.80 billion as of September 30, 2023, from $1.61 billion at the end of 2022[14] - Cash and cash equivalents rose significantly to $457.34 million from $141.65 million at the end of 2022[14] - Total cash, cash equivalents, and restricted cash increased to $457,363 thousand as of September 30, 2023, compared to $158,612 thousand at the end of the same period in 2022[30] - The total fair value of financial assets was $1,176.0 million, an increase from $905.9 million as of December 31, 2022[91] - As of September 30, 2023, cash and cash equivalents totaled $457.3 million, with short-term marketable debt securities amounting to $697.5 million[247] Stockholder Equity and Shares - Total stockholders' equity increased to $228.30 million as of September 30, 2023, from $60.18 million at the end of 2022[14] - The company had 117.85 million shares outstanding as of September 30, 2023, compared to 102.62 million shares at the end of 2022[14] - The total shares available for issuance under various plans increased to 25,109,231 from 16,249,546 as of December 31, 2022, reflecting a significant growth in potential equity compensation[129] Research and Development - Research and development expenses for Q3 2023 were $93.85 million, slightly down from $100.02 million in Q3 2022[16] - Research and development expense for the nine months ended September 30, 2023, was $25.4 million, an increase from $18.5 million in 2022[146] - The Company’s research and development expenses include costs for technology development, totaling significant amounts for compensation, supplies, and infrastructure[75] Investments and Impairments - The Company recorded an impairment of $22.1 million for non-marketable equity security investments for the nine months ended September 30, 2023[42] - The Company’s non-marketable equity investments totaled $8.6 million as of September 30, 2023, down from $25.0 million as of December 31, 2022[41] - The investment in Lunit Inc. was valued at $102.8 million as of September 30, 2023, up from $18.3 million at the end of 2022, with unrealized gains of $16.6 million for Q3 2023[93] Revenue Recognition and Customer Concentration - Revenue from significant customer B accounted for 33% of total revenue for the three months ended September 30, 2023[46] - The Company evaluates contracts with multiple performance obligations to ensure appropriate revenue recognition, allocating transaction prices based on standalone selling prices[69] - The Company recognized revenue from companion diagnostic development and regulatory approval services over the period in which biopharmaceutical research and development services are provided, using an input method based on costs incurred[65] Stock-Based Compensation - Stock-based compensation for the nine months ended September 30, 2023, was $66,439 thousand, slightly lower than $70,982 thousand for the same period in 2022[29] - Total stock-based compensation expense for the three months ended September 30, 2023, was $21.8 million, compared to $20.6 million for the same period in 2022[146] - The weighted-average grant date fair value of options granted was $24.42 for the three months ended September 30, 2023, compared to $33.66 for the same period in 2022[134] Debt and Interest - Interest income for Q3 2023 was $11.69 million, a significant increase from $1.75 million in Q3 2022[16] - Interest expense related to amortization of debt issuance costs was $0.6 million for the three months ended September 30, 2023, maintaining an effective interest rate of 0.2%[113] - The net carrying amount of the 2027 Convertible Senior Notes is $1.14 billion as of September 30, 2023, slightly up from $1.14 billion at the end of 2022[112] Operational Activities - The company reported a net cash used in operating activities of $246,247 thousand for the nine months ended September 30, 2023, compared to $218,714 thousand for the same period in 2022[29] - Cash provided by investing activities for the nine months ended September 30, 2023, was $176,796 thousand, compared to $79,189 thousand for the same period in 2022[29] Regulatory and Legal Matters - The company is fully cooperating with a Civil Investigative Demand related to the billing of government-funded programs for its genetic tests, but is unable to predict the outcome[127] - The Company has a collaboration agreement with Illumina, Inc. to advance cancer research and has dismissed a related lawsuit[125] Currency and Foreign Operations - The majority of the company's revenue is generated in the United States, with an insignificant amount from foreign currencies as of September 30, 2023[248] - The company anticipates that its results of operations and cash flows will increasingly be affected by fluctuations in foreign currency exchange rates as it expands internationally[248] - A hypothetical 10% change in foreign currency exchange rates would not be material to the company's financial condition or results of operations as of September 30, 2023[248]