Guardant Health(US:GH)2025-07-30 21:32Financial Data and Key Metrics Changes - Q2 revenue grew 31% year over year to $232,100,000, driven by strong performance across oncology, biopharma, and screening businesses [8][28] - Non-GAAP gross profit increased by $47,000,000 or 44% year over year, with a non-GAAP gross margin of 66%, up from 60% in 2024 [35] - Adjusted EBITDA loss improved to $51,900,000 for Q2 2025, compared to a loss of $61,900,000 in Q2 2024 [37] Business Line Data and Key Metrics Changes - Oncology revenue increased 22% to $158,700,000, with volumes growing 30% year over year to approximately 64,000 tests [29][30] - Biopharma revenue reached a record $56,000,000, growing 28% year over year [32] - Shield testing revenue totaled $15,000,000 in Q2, driven by approximately 16,000 tests [20][33] Market Data and Key Metrics Changes - Guardant360 Liquid saw over 20% year-over-year volume growth for the fourth consecutive quarter [30] - Guardant360 tissue achieved an average selling price (ASP) of approximately $2,000, reaching the 2028 target three years ahead of schedule [31] - Shield ASP increased to over $900 in Q2, up from approximately $600 in Q1 [34][54] Company Strategy and Development Direction - The company is focused on expanding its commercial infrastructure, expecting to surpass 250 sales reps by year-end to support growth [21] - Shield is positioned as a multi-cancer detection platform, with ongoing efforts to broaden its impact across various cancer types [25][26] - The company aims to achieve cash flow breakeven by 2028, with a commitment to reducing cash burn each year [41][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the oncology business's durable growth, supported by CGP penetration and favorable ASP dynamics [18] - The company raised its full-year 2025 revenue guidance to $915,000,000 to $925,000,000, representing growth of approximately 24% to 25% compared to 2024 [39] - Management remains optimistic about the potential for Shield and its inclusion in national screening guidelines [23][81] Other Important Information - The company is actively working on the Shield V2 program, with ongoing developments and no specific timeline committed for data release [52][86] - The National Comprehensive Cancer Network (NCCN) updated its CRC screening guidelines to include Shield, enhancing its market position [23][24] Q&A Session Summary Question: Did you see any benefit from the New England Journal publication in Q2? - Management noted that the impact from the publication was minimal, with most growth attributed to product market fit and ongoing demand [46] Question: What is driving Shield's impressive growth? - Management highlighted strong demand from physicians, increased sales rep productivity, and the recent NCCN guideline update as key drivers [51][52] Question: Can you provide insights on the growth of Guardant360? - Management indicated broad-based growth, with increased utilization and significant share gains in the market [59][60] Question: What are the next steps for Shield to be marketed as an MSEAD test? - Management confirmed that Shield is operationally ready for patient testing and is not waiting for additional pivotal study readouts [66][67] Question: How confident is management about Reveal Medicare reimbursement? - Management expressed high confidence based on previous experiences and the speed of past approvals [78][80] Question: What is the timeline for Shield V2 data? - Management stated that the program is active, with ongoing work, but no specific timeline for data release was provided [86]