Guardant Health(US:GH)2022-02-24 02:22Financial Data and Key Metrics Changes - Guardant Health reported record revenue of $108 million for Q4 2021, a 38% increase year-over-year, bringing total revenue for 2021 to $374 million, up 30% from 2020 [12][40] - Gross profit for Q4 2021 was $74.7 million, with a gross margin of 69%, compared to 64% in the prior year quarter [37][42] - The net loss attributable to common stockholders was $90.9 million for Q4 2021, slightly improved from a loss of $93.7 million in Q4 2020 [39] Business Line Data and Key Metrics Changes - Clinical test volume reached 25,600 in Q4 2021, a 48% increase from the prior year quarter, while total clinical volumes for 2021 were 87,600 tests, up 39% year-over-year [13][41] - Precision oncology revenue from clinical tests was $64.2 million in Q4 2021, up 40% from the prior year quarter [33] - Biopharma testing revenue totaled $24.5 million in Q4 2021, a 30% increase year-over-year, with sample volume of 6,600, also up 36% [35] Market Data and Key Metrics Changes - Approximately 70% of clinical test volume in Q4 2021 came from community settings, up from 63% in the same period last year [14] - The total addressable market (TAM) for recurrence monitoring has grown from $15 billion to over $20 billion due to increased utilization and favorable reimbursement [17] Company Strategy and Development Direction - The company aims to expand its oncology product portfolio and is focused on launching new products, including Guardant SHIELD for colorectal cancer screening [43][31] - Guardant Health is investing in a smart liquid biopsy platform, expected to significantly enhance its capabilities and market position [22][23] - The company is also expanding its international presence, particularly in Japan and Europe, to tap into large market opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about clinical volume growth for 2022, projecting over 50% growth year-over-year despite some initial impacts from COVID-19 [52] - The company expects total revenue for 2022 to be between $460 million and $470 million, representing approximately 24% growth over 2021 [46] - Management highlighted the importance of reimbursement pathways for new products and the anticipated impact of the Guardant SHIELD launch on future revenue [34][27] Other Important Information - The company ended 2021 with $1.6 billion in cash, providing a strong financial position to support ongoing operations and investments [45] - Guardant Health plans to complete the acquisition of the remaining 50% of its EMEA joint venture by the end of Q2 2022 [44] Q&A Session Summary Question: ASP decline in the quarter - Management confirmed that the decline in average selling price (ASP) was primarily due to new products with lower reimbursement impacting the overall blended ASP [51] Question: Guidance and clinical volume trends - Management remains bullish about clinical volumes for 2022, projecting 50% growth year-over-year, despite some impact from COVID-19 [52] Question: Smart liquid biopsy timelines and reimbursement updates - The smart liquid biopsy platform is expected to launch to biopharma customers first, with more details to be shared at the Investor Day in the fall [56] Question: Competitive dynamics in biopharma - Management discussed the competitive landscape and how partners are choosing Guardant based on its unique offerings and capabilities [85]