Guardant Health Reports First Quarter 2022 Financial Results
Guardant Health, Inc. (Nasdaq: GH) reported Q1 2022 revenue of $96.1 million, a 22% increase from the previous year. Clinical testing volumes surged 47% and biopharma volumes rose 45%. Gross profit reached $64.1 million, with a gross margin of 67%. However, operating expenses also increased by 19% to $187.5 million, leading to a net loss of $123.2 million for the quarter. The company maintains guidance for full-year 2022 revenue of $460 million to $470 million, reflecting 23% to 26% growth.
- Q1 2022 revenue of $96.1 million, a 22% increase from Q1 2021.
- Clinical and biopharma testing volumes increased by 47% and 45%, respectively.
- Gross profit rose to $64.1 million, with a gross margin of 67%.
- Launch of the Shield test for early-stage colorectal cancer.
- Regulatory approval for Guardant360® CDx in Japan.
- Operating expenses increased by 19% to $187.5 million.
- Net loss attributable to common stockholders was $123.2 million.
- Non-GAAP net loss was $93.2 million, up from $49.4 million year-over-year.
Q1 clinical and biopharma volumes up
Recent Highlights
-
Revenue of
$96.1 million 22% over the corresponding period of 2021
-
Reported 27,100 tests to clinical customers and 5,100 tests to biopharmaceutical customers in the first quarter of 2022, representing an increase of
47% and45% , respectively, over the first quarter of 2021
- Launched Shield as a Laboratory Developed Test (LDT) test, the Company’s first blood-based test for detection of early-stage colorectal cancer
-
Announced a partnership with Epic, a widely used comprehensive health record system in
the United States , making the Company’s broad portfolio of cancer tests available to over 250 million patients with a record in Epic
-
Received regulatory approval for Guardant360® CDx in
Japan for use in patients with advanced solid cancers as well as a companion diagnostic to identify patients with microsatellite instability-high, or MSI-High, solid tumors who may benefit from Keytruda® and patients with MSI-High advanced colorectal cancer who may benefit from Opdivo®
- Received Medicare coverage for Guardant360 TissueNext™ test under the Molecular Diagnostics Services program (MolDX) LCD
“We delivered strong clinical volume growth this quarter and I am proud of our team’s work to establish Guardant as the leader in liquid biopsy through our high-performance testing portfolio and excellent customer service,” said
“The recent launch of our Shield LDT screening test represents a major milestone in our commitment to transform cancer screening,” said AmirAli Talasaz, co-founder and co-CEO. “If the ECLIPSE readout is close to our LDT validation performance, we are confident that Shield will become the leading non-invasive CRC screening methodology. Colorectal cancer screening is the start of this journey. We will soon expand into high-sensitivity multi-cancer screening, including lung and pancreas, where we believe cancer screening can save lives.”
First Quarter 2022 Financial Results
Revenue was
Gross profit, or total revenue less cost of precision oncology testing and cost of development services and other, was
Operating expenses were
Net loss attributable to
Adjusted EBITDA loss was
Cash, cash equivalents and marketable securities were
2022 Guidance
Webcast Information
Non-GAAP Measures
We define our non-GAAP measures as the applicable GAAP measure adjusted for the impacts of stock-based compensation and related employer payroll tax payments, changes in estimated fair value of redeemable noncontrolling interest, contingent consideration, acquisition related expenses, amortization of intangible assets, and other non-recurring items.
Adjusted EBITDA is defined as net loss attributable to
We believe that the exclusion of certain income and expenses in calculating these non-GAAP financial measures can provide a useful measure for investors when comparing our period-to-period core operating results, and when comparing those same results to that published by our peers. We exclude certain other items because we believe that these income (expenses) do not reflect expected future operating expenses. Additionally, certain items are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. We use these non-GAAP financial measures to evaluate ongoing operations, for internal planning and forecasting purposes, and to manage our business.
These non-GAAP financial measures are not intended to be considered in isolation from, as substitute for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not present the full measure of our recorded costs against its revenue. In addition, our definition of the non-GAAP financial measures may differ from non-GAAP measures used by other companies.
About
Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements relating to Guardant Health’s future results, or regarding the potential benefits and advantages of Guardant Health’s platforms, assays and tests, which involve risks and uncertainties that could cause Guardant Health’s actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended
Condensed Consolidated Statements of Operations (unaudited) (in thousands, except per share data) |
|||||||
|
Three Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
||||
Revenue: |
|
|
|
||||
Precision oncology testing |
$ |
84,136 |
|
|
$ |
63,729 |
|
Development services and other |
|
11,963 |
|
|
|
14,936 |
|
Total revenue |
|
96,099 |
|
|
|
78,665 |
|
Costs and operating expenses: |
|
|
|
||||
Cost of precision oncology testing |
|
30,684 |
|
|
|
23,590 |
|
Cost of development services and other |
|
1,297 |
|
|
|
5,157 |
|
Research and development expense |
|
81,757 |
|
|
|
55,508 |
|
Sales and marketing expense |
|
64,432 |
|
|
|
34,338 |
|
General and administrative expense |
|
41,267 |
|
|
|
67,935 |
|
Total costs and operating expenses |
|
219,437 |
|
|
|
186,528 |
|
Loss from operations |
|
(123,338 |
) |
|
|
(107,863 |
) |
Interest income |
|
778 |
|
|
|
1,551 |
|
Interest expense |
|
(644 |
) |
|
|
(646 |
) |
Other income (expense), net |
|
(48 |
) |
|
|
(290 |
) |
Loss before provision for income taxes |
|
(123,252 |
) |
|
|
(107,248 |
) |
Provision for (benefit from) income taxes |
|
(24 |
) |
|
|
110 |
|
Net loss |
|
(123,228 |
) |
|
|
(107,358 |
) |
Adjustment of redeemable noncontrolling interest |
|
— |
|
|
|
(2,300 |
) |
Net loss attributable to |
$ |
(123,228 |
) |
|
$ |
(109,658 |
) |
Net loss per share attributable to |
$ |
(1.21 |
) |
|
$ |
(1.09 |
) |
Weighted-average shares used in computing net loss per share attributable to |
|
101,853 |
|
|
|
100,955 |
|
Condensed Consolidated Balance Sheets (unaudited) (in thousands, except share and per share data) |
|||||||
|
|
|
|
||||
ASSETS |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
573,604 |
|
|
$ |
492,202 |
|
Short-term marketable securities |
|
388,662 |
|
|
|
440,546 |
|
Accounts receivable, net |
|
84,331 |
|
|
|
97,652 |
|
Inventory |
|
36,613 |
|
|
|
30,674 |
|
Prepaid expenses and other current assets, net |
|
30,070 |
|
|
|
53,052 |
|
Total current assets |
|
1,113,280 |
|
|
|
1,114,126 |
|
Long-term marketable securities |
|
588,453 |
|
|
|
698,034 |
|
Property and equipment, net |
|
151,322 |
|
|
|
124,461 |
|
Right-of-use assets, net |
|
188,607 |
|
|
|
189,443 |
|
Intangible assets, net |
|
13,727 |
|
|
|
14,207 |
|
|
|
3,290 |
|
|
|
3,290 |
|
Other assets, net |
|
70,919 |
|
|
|
60,938 |
|
Total Assets |
$ |
2,129,598 |
|
|
$ |
2,204,499 |
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
32,230 |
|
|
$ |
17,580 |
|
Accrued compensation |
|
56,158 |
|
|
|
42,496 |
|
Accrued expenses |
|
51,851 |
|
|
|
45,285 |
|
Noncontrolling interest liability |
|
78,000 |
|
|
|
78,000 |
|
Deferred revenue |
|
10,570 |
|
|
|
11,326 |
|
Total current liabilities |
|
228,809 |
|
|
|
194,687 |
|
Convertible senior notes, net |
|
1,135,463 |
|
|
|
1,134,821 |
|
Long-term operating lease liabilities |
|
225,377 |
|
|
|
226,053 |
|
Other long-term liabilities |
|
6,909 |
|
|
|
3,933 |
|
Total Liabilities |
|
1,596,558 |
|
|
|
1,559,494 |
|
Stockholders’ equity: |
|
|
|
||||
Common stock, par value of |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
1,682,406 |
|
|
|
1,657,593 |
|
Accumulated other comprehensive (loss) income |
|
(18,314 |
) |
|
|
(4,764 |
) |
Accumulated deficit |
|
(1,131,053 |
) |
|
|
(1,007,825 |
) |
Total Stockholders’ Equity |
|
533,040 |
|
|
|
645,005 |
|
Total Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity |
$ |
2,129,598 |
|
|
$ |
2,204,499 |
|
Reconciliation of Selected GAAP Measures to Non-GAAP Measures (unaudited) (in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
||||
GAAP cost of precision oncology testing |
$ |
30,684 |
|
|
$ |
23,590 |
|
Amortization of intangible assets |
|
(148 |
) |
|
|
(148 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(1,176 |
) |
|
|
(799 |
) |
Non-GAAP cost of precision oncology testing |
$ |
29,360 |
|
|
$ |
22,643 |
|
|
|
|
|
||||
GAAP research and development expense |
$ |
81,757 |
|
|
$ |
55,508 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
(5,410 |
) |
|
|
(4,391 |
) |
Contingent consideration |
|
(2,120 |
) |
|
|
— |
|
Non-GAAP research and development expense |
$ |
74,227 |
|
|
$ |
51,117 |
|
|
|
|
|
||||
GAAP sales and marketing expense |
$ |
64,432 |
|
|
$ |
34,338 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
(5,570 |
) |
|
|
(2,934 |
) |
Non-GAAP sales and marketing expense |
$ |
58,862 |
|
|
$ |
31,404 |
|
|
|
|
|
||||
GAAP general and administrative expense |
$ |
41,267 |
|
|
$ |
67,935 |
|
Amortization of intangible assets |
|
(332 |
) |
|
|
(333 |
) |
Stock-based compensation expense and related employer payroll tax payments |
|
(12,835 |
) |
|
|
(49,375 |
) |
Contingent consideration |
|
(2,390 |
) |
|
|
— |
|
Acquisition related expenses |
|
(63 |
) |
|
|
— |
|
Non-GAAP general and administrative expense |
$ |
25,647 |
|
|
$ |
18,227 |
|
|
|
|
|
||||
GAAP loss from operations |
$ |
(123,338 |
) |
|
$ |
(107,863 |
) |
Amortization of intangible assets |
|
480 |
|
|
|
481 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
24,991 |
|
|
|
57,499 |
|
Contingent consideration |
|
4,510 |
|
|
|
— |
|
Acquisition related expenses |
|
63 |
|
|
|
— |
|
Non-GAAP loss from operations |
$ |
(93,294 |
) |
|
$ |
(49,883 |
) |
|
|
|
|
||||
GAAP net loss |
$ |
(123,228 |
) |
|
$ |
(107,358 |
) |
Amortization of intangible assets |
|
480 |
|
|
|
481 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
24,991 |
|
|
|
57,499 |
|
Contingent consideration |
|
4,510 |
|
|
|
— |
|
Acquisition related expenses |
|
63 |
|
|
|
— |
|
Non-GAAP net loss |
$ |
(93,184 |
) |
|
$ |
(49,378 |
) |
GAAP net loss attributable to |
$ |
(123,228 |
) |
|
$ |
(109,658 |
) |
Amortization of intangible assets |
|
480 |
|
|
|
481 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
24,991 |
|
|
|
57,499 |
|
Contingent consideration |
|
4,510 |
|
|
|
— |
|
Acquisition related expenses |
|
63 |
|
|
|
— |
|
Adjustments relating to redeemable non-controlling interest |
|
— |
|
|
|
2,300 |
|
Non-GAAP net loss attributable to |
$ |
(93,184 |
) |
|
$ |
(49,378 |
) |
|
|
|
|
||||
GAAP net loss per share attributable to |
$ |
(1.21 |
) |
|
$ |
(1.09 |
) |
Non-GAAP net loss per share attributable to |
$ |
(0.91 |
) |
|
$ |
(0.49 |
) |
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted |
|
101,853 |
|
|
|
100,955 |
|
Reconciliation of GAAP Net Loss Attributable to to Adjusted EBITDA (unaudited) (in thousands) |
|||||||
|
Three Months Ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
||||
GAAP net loss attributable to |
$ |
(123,228 |
) |
|
$ |
(109,658 |
) |
Interest income |
|
(778 |
) |
|
|
(1,551 |
) |
Interest expense |
|
644 |
|
|
|
646 |
|
Other (income) expense, net |
|
48 |
|
|
|
290 |
|
Provision for (benefit from) income taxes |
|
(24 |
) |
|
|
110 |
|
Depreciation and amortization |
|
7,201 |
|
|
|
5,010 |
|
Stock-based compensation expense and related employer payroll tax payments |
|
24,991 |
|
|
|
57,499 |
|
Contingent consideration |
|
4,510 |
|
|
|
— |
|
Acquisition related expenses |
|
63 |
|
|
|
— |
|
Adjustments relating to redeemable non-controlling interest |
|
— |
|
|
|
2,300 |
|
Adjusted EBITDA |
$ |
(86,573 |
) |
|
$ |
(45,354 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220505006014/en/
Investor Contact:
investors@guardanthealth.com
Media Contact:
press@guardanthealth.com
Source:
FAQ
What were the revenue results for Guardant Health in Q1 2022?
How did clinical and biopharma test volumes perform in Q1 2022?
What is Guardant Health's guidance for full-year 2022 revenue?
What was Guardant Health's net loss in Q1 2022?
What new products were launched by Guardant Health recently?
