Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q2 2022 Earnings Presentation
17 slides from Guardant Health's earnings presentation, Aug 4, 2022
Slide 1: Q2 2022 Earnings Call
Q2 2022 Earnings Call August 4, 2022
Slide 2: Safe harbor
Safe harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking unknown risks and uncertainties, many of which are beyond the Company's control. These and other statements within the meaning of federal securities laws. These statements relate to future ev
Slide 3: Q2 revenue up 19% year over year
Q2 revenue up 19% year over year +19% $109M $92M • Precision Oncology revenue of $92m, +27% y/y • Development Services & Other revenue of $17m, -12% y/y • Commercial traction with oncologists • Targeting sequential improvement in clinical volume growth in H2 Q2 2021 Q2 2022 3
Slide 4: Q2 Clinical volumes up 40% year over year
Q2 Clinical volumes up 40% year over year +40% 29.3K 27.1K 25.6K Record number of ordering oncologists 22.8K 20.8K Increasing number of Guardant tests 18.4K ordered per customer New products driving multi-product ordering Maintained leadership in liquid CGP and share of voice Q1 ’21 Q2 ’21 Q3 ’21 Q4
Slide 5: Reveal Medicare reimbursement and multi-cancer availability key catalysts for precision oncology growth
Reveal Medicare reimbursement and multi-cancer availability key catalysts for precision oncology growth H2 Precision Oncology growth drivers: Guardant Reveal received Medicare reimbursement for certain stage II or III colorectal cancer patients Reveal expected to be available in H2 for multi-cancer
Slide 6: Biopharma sample volumes up 65% year over year
Biopharma sample volumes up 65% year over year +65% 6.6K >130 biopharma partners since launch 6.0K Market leader in ctDNA 5.1K 4.8K Continued traction at ASCO fueling robust pipeline 3.5K 3.7K Increased engagement with Smart Liquid Biopsy launch Expanded global footprint with Adicon lab partnership
Slide 7: International growth strategy focused on large core markets
International growth strategy focused on large core markets Guardant’s First Liquid Biopsy Lab Service performed in Europe Europe through Vall d’Hebron Institute of Oncology, Spain Completed purchase of Guardant Health AMEA Joint Venture AMEA Japan reimbursement expected late 2022 In China, strategi
Slide 8: Unlocking a $20B opportunity for CRC screening in 2022 & beyond
Unlocking a $20B opportunity for CRC screening in 2022 & beyond Positive progress with central pathology review ECLIPSE sample processing underway Modular FDA submission progressing 59 CRCs confirmed, approaching target of 60-70 CRCs Launched ECLIPSE Submit for FDA Approval Medicare Coverage Guideli
Slide 9: SHIELD LDT launch learnings
SHIELD LDT launch learnings Better than expected early uptake CBC Real-world adherence rate of 90%+ in first 1,000 samples A1C CRC Preparing to launch compliance focused ISTs in 2H’22 LIPIDS TSH 9
Slide 10: Forecasted adoption of blood-based screening across technical performance levels
Forecasted adoption of blood-based screening across technical performance levels Market Size • 3-4m tests / year by 2032 75% • Profitable $2bn+ revenue opportunity • 60% + gross margin CRC Sensitivity 85% • 10m+ tests / year by 2032 • Profitable $5bn+ revenue opportunity • 60% + gross margin 92% 0%
Slide 11: Driving transition from stool-based, single-cancer tests to blood based, multi-cancer test
Driving transition from stool-based, single-cancer tests to blood based, multi-cancer test in the mid term FROM stool-based SHIELD Multi-Cancer Evolution single-cancer CRC ONE ASSAY DETECTS PANEL OF INDICATIONS test • CRC • CRC, Lung • Multi-cancer BEFORE CURRENT NEAR TERM (2023) MID TERM 11
Slide 12: Q2 2022 financial overview
Q2 2022 financial overview Q2’22 Q2’21 Total Revenue $109M $92M Precision Oncology Revenue $92M $73M Development Services & Other Revenue $17M $19M Gross Margin 66% 68% Operating Expenses $203M $160M FV Adjustment for Non-controlling Interest Liability -$100M -- Net Loss -$229M -$98M EPS -$2.25 -$0.
Slide 13: Q2 2022 non-GAAP financial measures & cash
Q2 2022 non-GAAP financial measures & cash Q2’22 Q2’21 Non-GAAP Operating Expenses $176M $125M Adjusted EBITDA -$94M -$56M Non-GAAP EPS -$1.00 -$0.61 June 30, June 30, 2022 2021 Cash, cash equivalents & investments $1.2B $1.8B 13 Non-GAAP operating expenses exclude stock-based compensation and relat
Slide 14: Capital allocation focused on key long term growth opportunities
Capital allocation focused on key long term growth opportunities Oncology Screening Oncology business cash flow Milestone-driven Shield commercial breakeven in approximately 2 years investments Cash flow breakeven 1-2 years after Shield CRC guideline Includes continued investments inclusion Multi-ca
Slide 15: FY 2022 guidance
FY 2022 guidance Total Revenue: $460 - $470 million, growth of 24% over 2021 at midpoint Precision Oncology Revenue: ~35% growth over 2021 Development Services & Other Revenue: >$50 million Clinical Volume*: ~45% growth over 2021 (previously 50%) Biopharma Volume: >30% growth over 2021 * E
Slide 16: Key milestones transforming the continuum of care in 2022 and beyond
Key milestones transforming the continuum of care in 2022 and beyond Therapy Selection Recurrence Monitoring Screening • TissueNext reimbursement • Demonstrated strong performance • Launched Shield CRC LDT in multi-cancer with Reveal • 2H: ECLIPSE readout • Regulatory approval in Japan • CMS reimbur
Slide 17: Guardant
(@) GUARDANT