CareDx Reports Second Quarter 2022 Results
CareDx, Inc. (Nasdaq: CDNA) reported its Q2 2022 financial results, achieving revenues of $80.6 million, up 9% year-over-year. The company delivered 45,000 patient test results, reflecting a 21% growth compared to Q2 2021. Despite a net loss of $21.7 million, the company boasts a strong capital position with $306 million in cash and no debt. CareDx revised its 2022 revenue guidance to $325 million to $335 million, attributing growth to an increased mix of commercial patients.
- Achieved revenue of $80.6 million, a 9% increase year-over-year.
- Delivered 45,000 patient test results, marking a 21% growth.
- Strong cash position with $306 million and no debt.
- Revised 2022 revenue expectations to $325 million to $335 million.
- Net loss of $21.7 million in Q2 2022 compared to $1.9 million in Q2 2021.
- Non-GAAP net loss of $7.0 million, a decline from a $5.9 million net income in Q2 2021.
- Adjusted EBITDA loss of $5.7 million, down from a gain of $6.8 million in Q2 2021.
Recent Highlights:
-
Delivered 45,000 patient test results, representing growth of
21% compared to second quarter of 2021 -
Achieved revenue of
, increasing$80.6 million 9% year-over-year -
Sustained strong overall GAAP gross margin of
66% - Project to achieve profitable growth with positive adjusted EBITDA by first half of 2023
-
Strong capital position with
cash, cash equivalents, marketable securities, and no debt$306M -
Revised 2022 revenue expectations to the range of
to$325 million due to higher than expected mix of commercial patients from the success of new launches and market expansion$335 million
"We ended the first half of 2022 in an excellent financial position and are pleased to see the momentum in our testing volume and growth in the patient digital solutions," said
Second Quarter 2022 Financial Results
Revenue for the three months ended
For the second quarter of 2022, net loss was
Non-GAAP net loss was
Adjusted EBITDA for the second quarter of 2022 was a loss of
Cash, cash equivalents and marketable securities were
For additional information regarding non-GAAP financial measures discussed herein, please see “Use of Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Adjusted EBITDA Financial Measures” below.
2022 Guidance
For the full year 2022,
About
Forward-Looking Statements
This press release includes forward-looking statements, including expectations regarding
Use of Non-GAAP Financial Measures
Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Revenue: |
|
|
|
|
|
|
|
||||||||
Testing services revenue |
$ |
67,135 |
|
|
$ |
64,890 |
|
|
$ |
133,579 |
|
|
$ |
124,171 |
|
Product revenue |
|
6,714 |
|
|
|
6,861 |
|
|
|
13,502 |
|
|
|
12,639 |
|
Patient and digital solutions revenue |
|
6,785 |
|
|
|
2,437 |
|
|
|
12,969 |
|
|
|
4,778 |
|
Total revenue |
|
80,634 |
|
|
|
74,188 |
|
|
|
160,050 |
|
|
|
141,588 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of testing services |
|
18,230 |
|
|
|
17,235 |
|
|
|
35,858 |
|
|
|
33,718 |
|
Cost of product |
|
3,887 |
|
|
|
5,205 |
|
|
|
8,286 |
|
|
|
8,852 |
|
Cost of patient and digital solutions |
|
5,422 |
|
|
|
1,533 |
|
|
|
10,277 |
|
|
|
2,982 |
|
Research and development |
|
22,632 |
|
|
|
19,036 |
|
|
|
44,512 |
|
|
|
35,040 |
|
Sales and marketing |
|
26,950 |
|
|
|
19,599 |
|
|
|
50,098 |
|
|
|
35,051 |
|
General and administrative |
|
25,232 |
|
|
|
16,322 |
|
|
|
51,791 |
|
|
|
31,545 |
|
Total operating expenses |
|
102,353 |
|
|
|
78,930 |
|
|
|
200,822 |
|
|
|
147,188 |
|
Loss from operations |
|
(21,719 |
) |
|
|
(4,742 |
) |
|
|
(40,772 |
) |
|
|
(5,600 |
) |
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest income, net |
|
478 |
|
|
|
1 |
|
|
|
667 |
|
|
|
127 |
|
Change in estimated fair value of common stock warrant liability |
|
48 |
|
|
|
(65 |
) |
|
|
75 |
|
|
|
(38 |
) |
Other (expense) income, net |
|
(553 |
) |
|
|
2,779 |
|
|
|
(1,376 |
) |
|
|
2,534 |
|
Total other (expense) income |
|
(27 |
) |
|
|
2,715 |
|
|
|
(634 |
) |
|
|
2,623 |
|
Loss before income taxes |
|
(21,746 |
) |
|
|
(2,027 |
) |
|
|
(41,406 |
) |
|
|
(2,977 |
) |
Income tax benefit |
|
49 |
|
|
|
100 |
|
|
|
61 |
|
|
|
363 |
|
Net loss |
$ |
(21,697 |
) |
|
$ |
(1,927 |
) |
|
$ |
(41,345 |
) |
|
$ |
(2,614 |
) |
Net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.41 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.05 |
) |
Diluted |
$ |
(0.41 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.05 |
) |
Weighted-average shares used to compute net loss per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
53,249,545 |
|
|
|
52,224,300 |
|
|
|
53,133,149 |
|
|
|
51,705,587 |
|
Diluted |
|
53,249,545 |
|
|
|
52,224,300 |
|
|
|
53,133,149 |
|
|
|
51,705,587 |
|
Condensed Consolidated Balance Sheets (Unaudited) (in thousands) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
166,832 |
|
|
$ |
348,485 |
|
Marketable securities |
|
139,388 |
|
|
|
— |
|
Accounts receivable |
|
70,142 |
|
|
|
59,761 |
|
Inventory |
|
18,861 |
|
|
|
17,186 |
|
Prepaid and other current assets |
|
8,657 |
|
|
|
7,928 |
|
Total current assets |
|
403,880 |
|
|
|
433,360 |
|
Property and equipment, net |
|
32,904 |
|
|
|
22,044 |
|
Operating leases right-of-use assets |
|
15,841 |
|
|
|
17,993 |
|
Intangible assets, net |
|
46,318 |
|
|
|
50,195 |
|
|
|
37,084 |
|
|
|
36,983 |
|
Restricted cash |
|
204 |
|
|
|
211 |
|
Other assets |
|
5,057 |
|
|
|
5,835 |
|
Total assets |
$ |
541,288 |
|
|
$ |
566,621 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
16,892 |
|
|
$ |
13,337 |
|
Accrued compensation |
|
14,631 |
|
|
|
26,042 |
|
Accrued and other liabilities |
|
46,933 |
|
|
|
37,922 |
|
Total current liabilities |
|
78,456 |
|
|
|
77,301 |
|
Deferred tax liability |
|
25 |
|
|
|
415 |
|
Common stock warrant liability |
|
64 |
|
|
|
139 |
|
Deferred payments for intangible assets |
|
2,877 |
|
|
|
5,041 |
|
Operating lease liability, less current portion |
|
16,065 |
|
|
|
17,394 |
|
Other liabilities |
|
252 |
|
|
|
455 |
|
Total liabilities |
|
97,739 |
|
|
|
100,745 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Common stock |
|
52 |
|
|
|
52 |
|
Additional paid-in capital |
|
875,213 |
|
|
|
853,683 |
|
Accumulated other comprehensive loss |
|
(7,182 |
) |
|
|
(4,670 |
) |
Accumulated deficit |
|
(424,534 |
) |
|
|
(383,189 |
) |
Total stockholders’ equity |
|
443,549 |
|
|
|
465,876 |
|
Total liabilities and stockholders’ equity |
$ |
541,288 |
|
|
$ |
566,621 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Cost of testing services reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP cost of testing services |
$ |
18,230 |
|
|
$ |
17,235 |
|
|
$ |
35,858 |
|
|
$ |
33,718 |
|
Stock-based compensation expense |
|
(566 |
) |
|
|
(570 |
) |
|
|
(585 |
) |
|
|
(965 |
) |
Acquisition related-amortization of purchased intangibles |
|
(329 |
) |
|
|
(329 |
) |
|
|
(658 |
) |
|
|
(658 |
) |
Non-GAAP cost of testing services |
$ |
17,335 |
|
|
$ |
16,336 |
|
|
$ |
34,615 |
|
|
$ |
32,095 |
|
Cost of product reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP cost of product |
$ |
3,887 |
|
|
$ |
5,205 |
|
|
$ |
8,286 |
|
|
$ |
8,852 |
|
Stock-based compensation expense |
|
(402 |
) |
|
|
(214 |
) |
|
|
(530 |
) |
|
|
(289 |
) |
Acquisition related-amortization of purchased intangibles |
|
(437 |
) |
|
|
(489 |
) |
|
|
(890 |
) |
|
|
(954 |
) |
Non-GAAP cost of product |
$ |
3,048 |
|
|
$ |
4,502 |
|
|
$ |
6,866 |
|
|
$ |
7,609 |
|
Cost of patient and digital solutions reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP cost of patient and digital solutions |
$ |
5,422 |
|
|
$ |
1,533 |
|
|
$ |
10,277 |
|
|
$ |
2,982 |
|
Stock-based compensation expense |
|
(391 |
) |
|
|
(230 |
) |
|
|
(583 |
) |
|
|
(338 |
) |
Acquisition related-amortization of purchased intangibles |
|
(236 |
) |
|
|
(141 |
) |
|
|
(472 |
) |
|
|
(249 |
) |
Non-GAAP cost of patient and digital solutions |
$ |
4,795 |
|
|
$ |
1,162 |
|
|
$ |
9,222 |
|
|
$ |
2,395 |
|
Research and development expenses reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP research and development expenses |
$ |
22,632 |
|
|
$ |
19,036 |
|
|
$ |
44,512 |
|
|
$ |
35,040 |
|
Stock-based compensation expense |
|
(2,323 |
) |
|
|
(1,940 |
) |
|
|
(4,513 |
) |
|
|
(3,298 |
) |
Non-GAAP research and development expenses |
$ |
20,309 |
|
|
$ |
17,096 |
|
|
$ |
39,999 |
|
|
$ |
31,742 |
|
Sales and marketing expenses reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP sales and marketing expenses |
$ |
26,950 |
|
|
$ |
19,599 |
|
|
$ |
50,098 |
|
|
$ |
35,051 |
|
Stock-based compensation expense |
|
(3,907 |
) |
|
|
(2,632 |
) |
|
|
(7,030 |
) |
|
|
(4,292 |
) |
Acquisition related-amortization of purchased intangibles |
|
(543 |
) |
|
|
(461 |
) |
|
|
(1,148 |
) |
|
|
(842 |
) |
Non-GAAP sales and marketing expenses |
$ |
22,500 |
|
|
$ |
16,506 |
|
|
$ |
41,920 |
|
|
$ |
29,917 |
|
General and administrative expenses reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP general and administrative expenses |
$ |
25,232 |
|
|
$ |
16,322 |
|
|
$ |
51,791 |
|
|
$ |
31,545 |
|
Stock-based compensation expense |
|
(5,004 |
) |
|
|
(3,811 |
) |
|
|
(9,986 |
) |
|
|
(6,763 |
) |
Change in estimated fair value of contingent consideration |
|
(500 |
) |
|
|
147 |
|
|
|
(564 |
) |
|
|
191 |
|
Acquisition related fees and expenses |
|
(186 |
) |
|
|
(210 |
) |
|
|
(329 |
) |
|
|
(381 |
) |
Non-GAAP general and administrative expenses |
$ |
19,542 |
|
|
$ |
12,448 |
|
|
$ |
40,912 |
|
|
$ |
24,592 |
|
Total other income (expense) reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP other (expense) income, net |
$ |
(27 |
) |
|
$ |
2,715 |
|
|
$ |
(634 |
) |
|
$ |
2,623 |
|
Unrealized (gain) loss on long-term marketable equity securities |
|
(21 |
) |
|
|
(3,090 |
) |
|
|
486 |
|
|
|
(3,090 |
) |
Change in estimated fair value of common stock warrant liability |
|
(48 |
) |
|
|
65 |
|
|
|
(75 |
) |
|
|
38 |
|
Accretion of liability |
|
37 |
|
|
|
64 |
|
|
|
92 |
|
|
|
144 |
|
Non-GAAP other expense, net |
$ |
(59 |
) |
|
$ |
(246 |
) |
|
$ |
(131 |
) |
|
$ |
(285 |
) |
Income tax benefit reconciliation: |
|
|
|
|
|
|
|
||||||||
GAAP income tax benefit |
$ |
49 |
|
|
$ |
100 |
|
|
$ |
61 |
|
|
$ |
363 |
|
Tax effect related to amortization of purchased intangibles |
|
(107 |
) |
|
|
(117 |
) |
|
|
(220 |
) |
|
|
(251 |
) |
Non-GAAP income tax (loss) benefit |
$ |
(58 |
) |
|
$ |
(17 |
) |
|
$ |
(159 |
) |
|
$ |
112 |
|
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
GAAP net loss |
$ |
(21,697 |
) |
|
$ |
(1,927 |
) |
|
$ |
(41,345 |
) |
|
$ |
(2,614 |
) |
Stock-based compensation expense |
|
12,593 |
|
|
|
9,397 |
|
|
|
23,227 |
|
|
|
15,945 |
|
Unrealized (gain) loss on long-term marketable equity securities |
|
(21 |
) |
|
|
(3,090 |
) |
|
|
486 |
|
|
|
(3,090 |
) |
Acquisition related-amortization of purchased intangibles |
|
1,545 |
|
|
|
1,420 |
|
|
|
3,168 |
|
|
|
2,703 |
|
Acquisition related fees and expenses |
|
186 |
|
|
|
210 |
|
|
|
329 |
|
|
|
381 |
|
Change in estimated fair value of contingent consideration |
|
500 |
|
|
|
(147 |
) |
|
|
564 |
|
|
|
(191 |
) |
Change in estimated fair value of common stock warrant liability |
|
(48 |
) |
|
|
65 |
|
|
|
(75 |
) |
|
|
38 |
|
Accretion of liability |
|
37 |
|
|
|
64 |
|
|
|
92 |
|
|
|
144 |
|
Tax effect related to amortization of purchased intangibles |
|
(107 |
) |
|
|
(117 |
) |
|
|
(220 |
) |
|
|
(251 |
) |
Non-GAAP net (loss) income |
$ |
(7,012 |
) |
|
$ |
5,875 |
|
|
$ |
(13,774 |
) |
|
$ |
13,065 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP basic and diluted net loss per share |
$ |
(0.41 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP basic net (loss) income per share |
$ |
(0.13 |
) |
|
$ |
0.11 |
|
|
$ |
(0.26 |
) |
|
$ |
0.25 |
|
Non-GAAP diluted net (loss) income per share |
$ |
(0.13 |
) |
|
$ |
0.11 |
|
|
$ |
(0.26 |
) |
|
$ |
0.24 |
|
|
|
|
|
|
|
|
|
||||||||
Shares used in computing non-GAAP basic net loss/income per share |
|
53,249,545 |
|
|
|
52,224,300 |
|
|
|
53,133,149 |
|
|
|
51,705,587 |
|
Shares used in computing non-GAAP diluted net loss/income per share |
|
53,249,545 |
|
|
|
54,722,122 |
|
|
|
53,133,149 |
|
|
|
54,311,138 |
|
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures (Unaudited) (In thousands) |
|||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
Non-GAAP net (loss) income |
$ |
(7,012 |
) |
|
$ |
5,875 |
|
|
$ |
(13,774 |
) |
|
$ |
13,065 |
|
Interest income |
|
(478 |
) |
|
|
(1 |
) |
|
|
(667 |
) |
|
|
(127 |
) |
Income tax benefit (expense) |
|
58 |
|
|
|
17 |
|
|
|
159 |
|
|
|
(112 |
) |
Depreciation expense |
|
1,162 |
|
|
|
668 |
|
|
|
2,102 |
|
|
|
1,255 |
|
Other expense, net |
|
537 |
|
|
|
247 |
|
|
|
798 |
|
|
|
412 |
|
Adjusted EBITDA |
$ |
(5,733 |
) |
|
$ |
6,806 |
|
|
$ |
(11,382 |
) |
|
$ |
14,493 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220804005967/en/
Chief Marketing Officer
415-287-2393
sking@CareDx.com
Investor Relations
415-722-4563
investor@CareDx.com
Source:
FAQ
What were CareDx's Q2 2022 revenues?
What was the net loss for CareDx in Q2 2022?
How many patient test results did CareDx deliver in Q2 2022?
What is CareDx's revenue guidance for 2022?