Guardant Health(US:GH)2024-05-09 20:59Financial Performance - Total revenue for Q1 2024 was $168.491 million, a 30.9% increase from $128.714 million in Q1 2023[15] - Revenue from precision oncology testing reached $156.229 million, up 37.8% compared to $113.393 million in the same period last year[15] - Net loss for Q1 2024 was $114.985 million, a decrease from a net loss of $133.533 million in Q1 2023, representing a 13.9% improvement[15] - Basic and diluted net loss per share improved to $0.94 in Q1 2024 from $1.30 in Q1 2023[15] - The company reported a comprehensive loss of $116.109 million for Q1 2024, compared to a comprehensive loss of $126.161 million in Q1 2023[19] - The net loss for the three months ended March 31, 2024, was $114.985 million, an improvement from a net loss of $133.533 million in the same period of 2023, representing a decrease of approximately 14%[26] - The company reported a net cash provided by investing activities of $28.066 million in Q1 2024, a decrease from $157.224 million in Q1 2023[26] - The company had an accumulated deficit of $2.3 billion as of March 31, 2024, and expects to incur additional operating losses in the near future[199] Assets and Liabilities - Total current assets decreased to $1.309 billion as of March 31, 2024, from $1.347 billion as of December 31, 2023[13] - Total liabilities increased slightly to $1.636 billion as of March 31, 2024, compared to $1.628 billion as of December 31, 2023[13] - Cash, cash equivalents, and restricted cash totaled $1.129 billion as of March 31, 2024, compared to $1.134 billion as of December 31, 2023[13] - Cash and cash equivalents, along with restricted cash, totaled $1.129 billion as of March 31, 2024, compared to $223.714 million at the end of Q1 2023, showing a significant increase[26] - As of March 31, 2024, the company had cash, cash equivalents, and restricted cash of approximately $1.1 billion[155] Research and Development - Research and development expenses were $83.802 million in Q1 2024, down from $93.128 million in Q1 2023, indicating a 10% reduction[15] - Research and development expenses include costs incurred for technology development, totaling significant amounts related to salaries, supplies, and infrastructure[67] - The company collaborates with biopharmaceutical companies for drug development, generating revenue from milestone achievements and ongoing support[56] Revenue Recognition - The company recognizes revenue from precision oncology testing when results are reported to physicians, with variable consideration based on historical reimbursement data[53] - Revenue recognized in Q1 2024 from deferred revenue was $7.1 million, compared to $6.4 million in Q1 2023[63] - The company expects to recognize substantially all remaining transaction price allocated to performance obligations in the next 1-2 years[64] Customer Contributions - Revenue from significant customers included Customer B contributing 31% of total revenue for both Q1 2024 and Q1 2023, while Customer A accounted for 16% of accounts receivable as of March 31, 2024[44] - Revenue from clinical tests for patients covered by Medicare represented approximately 41% of precision oncology revenue from clinical customers for the three months ended March 31, 2024[156] Stock and Financing - The Company issued $1.15 billion principal amount of 0% Convertible Senior Notes due 2027, with a net carrying amount of $1.140611 billion as of March 31, 2024[92][98] - The total estimated fair value of the 2027 Notes was $782.8 million as of March 31, 2024[99] - The Company may seek additional funding through equity sales or debt financing due to liquidity concerns[202] Legal and Compliance - The Company received a Civil Investigative Demand in January 2022 regarding billing for its Guardant360 genetic tests, and is cooperating with the investigation[117] - The Company is involved in a false advertising dispute with Natera, with a trial scheduled for August 2024[116] Future Outlook - The company expects to increase sales and marketing expenses to support international expansion and enhance its commercial footprint globally[159] - The company anticipates that capital expenditure requirements could increase if additional laboratory capacity is needed due to rising demand for its tests[199] Operational Highlights - The company launched the Shield LDT test for colorectal cancer screening, with a premarket approval application submitted to the FDA in March 2023, and a review scheduled for May 2024[30] - Guardant Health has launched several advanced tests, including Guardant360 LDT and Guardant360 CDx, which are FDA-approved for tumor mutation profiling in solid tumors[28] - The company launched the Shield LDT test for colorectal cancer detection in May 2022, with a premarket approval application submitted to the FDA in March 2023[153] - The company operates one segment and primarily generates revenue from precision oncology testing and development services[147] - The company’s Redwood City laboratory is certified and accredited, supporting its testing capabilities and compliance with regulatory standards[154]