Slide 1: The Transplant Company - Q1 2024 Earnings Presentation
The Transplant Company™ Q1 2024 Earnings Presentation May 9, 2024 Patrick G, Kidney Transplant Recipient
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of histor
Slide 3: John W. Hanna Appointed CareDx President and CEO
John W. Hanna Appointed CareDx President and CEO Profile • Molecular diagnostics and life sciences tools industry • Prior CEO with record of delivering consistent, strong results • Deep corporate strategy experience • Significant public company investor relations John W. Hanna, President and CEO 3
Slide 4: Q1 2024 Financial and Business Highlights
Q1 2024 Financial and Business Highlights • Strong Q1 revenue of $72.0 million • Third consecutive quarter of Testing Services volume growth; revenue increased 10% quarter over quarter • SHORE data demonstrated that HeartCare outperforms dd-cfDNA alone in identifying allograft rejection • Expanded p
Slide 5: HeartCare Outperforms dd-cfDNA Testing Alone in Identifying Allograft Rejection
HeartCare Outperforms dd-cfDNA Testing Alone in Identifying Allograft Rejection Test Results Paired with EMB-Proven Acute Cellular Rejection.1 SHORE (Surveillance in HeartCare Dual Positive Results with Outcomes Registry) Study Details 9.1% HeartCare® Better Largest heart transplant study of Identif
Slide 6: HeartCare Predicts Clinically Relevant Long-Term Outcomes
HeartCare Predicts Clinically Relevant Long-Term Outcomes Patients with dual positive results in the first 6-months post-transplant are at higher risk of allograft dysfunction or The occurrence of rejection in the first 6-months does not death 2 years post-transplant.1 prognosticate outcomes.1 100%
Slide 7: Three Consecutive Quarters of Testing Services Volume Growth
Three Consecutive Quarters of Testing Services Volume Growth Billing Article Impact Back to Growth +6% +2% +4% 49.9k 39.9k 42.1k 37.5k 38.4k Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 7
Slide 8: Strong Testing Services Revenue Growth in Q1 2024
Strong Testing Services Revenue Growth in Q1 2024 Actual $53.8 +15% $3.7 Revenue associated with $46.7 RCM initiatives, including $0.3 collections from unpaid claims from test results delivered in prior quarters. Adjusted in millions USD $50.1 +8%1 $46.4 Q4 2023 Q1 2024 1. Adjusted for revenue assoc
Slide 9: Strong Year-Over-Year Revenue Growth Across Products and Digital Solutions Businesses
Strong Year-Over-Year Revenue Growth Across Products and Digital Solutions Businesses Products Patient and Digital Solutions +12% +25% $9.6 $8.6 $8.6 $6.9 in millions USD in millions USD Q1 2023 Q1 2024 Q1 2023 Q1 2024 9
Slide 10: Significant Improvement in Adjusted EBITDA Losses in Q1 2024
Significant Improvement in Adjusted EBITDA Losses in Q1 2024 Q4 2023 Q1 2024 Actual -$1.91 +$8.4 in millions USD -$3.72 -$10.31 -$5.6 Adjusted +$5.0 -$0.32 -$10.6 1.Reported adjusted EBITDA losses; 2.Testing Services revenue associated with revenue cycle management (RCM) initiatives including collec
Slide 11: Revised 2024 Guidance
Revised 2024 Guidance Guide Prior Guidance Revised Assumptions Total Revenue $260M - $274M $274M - $282M Testing Services • Low double-digit growth for Testing Services based on annualized actual testing services revenue for the fourth quarter 2023 • Other previously reported assumptions remain unch
Slide 12: Revised 2024 Guidance Assumes High Single-Digit Growth Based on Adjusted 2023 Revenue
Revised 2024 Guidance Assumes High Single-Digit Growth Based on Adjusted 2023 Revenue 2023 Revenue Revised Guidance May 2024 Patient and Digital Solutions Products +8% Testing Services $280 $278 $257 $257 $37 $34 in millions USD in millions USD $187 Actual Actual Adjusted1 1 Adjusted 2023 2024 Adjus
Slide 13: CareDx - Your Partner in Transplant Care
és CareDx’ Your Partner in Transplant Care™ » § CareDe rT
Slide 14: Appendix
Appendix 14 é Car eDx:
Slide 15: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA Q1 Q2 Q3 Q4 Q1 in millions USD 2023 2023 2023 2023 2024 GAAP Net Loss (23.7) (25.0) (23.5) (118.1) (16.7) Stock-based compensation expense 13.8 12.7 12.7 10.0 13.3 Impairments & write-downs 1.0 - - - - Unrealized loss (gain) on investments 0.9 (0.1) 0.3 - - Realized
Slide 16: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin Q1 Q2 Q3 Q4 Q1 in millions USD (except %) 2023 2023 2023 2023 2024 Revenue 77.3 70.3 67.2 65.6 72.0 GAAP Cost of Revenue 26.0 25.9 24.5 25.8 25.9 GAAP Gross Profit 51.3 44.4 42.7 39.8 46.1 GAAP Gross Margin % 66% 63% 64% 61% 64% Non-GAAP Expense: Stock-based c