Slide 1: The Transplant Company - Q4 and FY 2022 Earnings Presentation
The Transplant Company™ Focused on improving care across the entire transplant patient journey Leslie M, Kidney Transplant Recipient Earnings Presentation Q4 and FY 2022
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements, including statements with respect to expectations regarding CareDx’s upcoming milestones, vision and 2023 revenue guidance. All statements other than statements of historical fact contained
Slide 3: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights Volume Gross Balance Sheet Revenue Profitability1,2 Growth Margin $293M Cash & $82.4M 47,700 Tests 64% GAAP Net Loss ($18.3M) Equivalents and Up 4% y/y Marketable Up 2% 67% Adjusted1 Adjusted EBITDA Securities sequentially and ($3.7M) $65.4M Testing 73% Testin
Slide 4: 2023 Focus On The Three C's - Catalysts, Coverage, Collections
2023 Focus On The Three C’s - Catalysts, Coverage, Collections Pipeline Increasing Improving Catalysts Coverage Collections Drive Leadership Leverage Best in Infrastructure Built into Solid Organ Class Data and to Address Prior Transplants Clinical Utility and Authorizations and Guidelines Denials/A
Slide 5: Key Pipeline Catalysts
Key Pipeline Catalysts Urine Tests Proven stable platform Signature has not changed since discovery and NEJM. Other unstable approaches need to modify algorithm to fit current data Differentiated utility Rejection + BK Nephropathy Robust validation Clinical validation in multiple publications
Slide 6: Artificial Intelligence Core Part of Pipeline Development
Artificial Intelligence (AI) Core Part of Pipeline Development AlloView Adds Another Layer of Utility to AlloSure Surveillance Incorporates Prognostic algorithm Predictive algorithm Source: Publications and data on file. 6
Slide 7: Strong Payor Coverage is Core Part of the Business Model
Strong Payor Coverage is Core Part of the Business Model Patient Coverage Total Launch Commercial Current CMS (inc. MA) Coverage Strong Payor Coverage* AlloMap Heart 2005 ~25% >50% >75% AlloSure Kidney 2017 ~60% >10% >70% Early in Coverage Cycle* AlloSure Heart 2020 ~25% 1-5% ~25-30% AlloSure Lung 2
Slide 8: Major Payor Coverage Opportunity in Heart: ISHLT Guidelines
Major Payor Coverage Opportunity in Heart: ISHLT Guidelines Earlier use from 6 months to 2 months AlloMap Heart Surveillance part of standard/routine testing Recognition of clinical studies New technology recognition AlloSure Heart Surveillance part of standard/routine testing Benefits v
Slide 9: Record Cash Collection in Q4 2022
Record Cash Collection in Q4 2022 H1 2022 2022 vs 2021 2022 Improving Qtr by Qtr Investments in infrastructure scale Scaling are starting to show infrastructure in the cash ramp collected especially in Q4 2022 9
Slide 10: Driving Leadership in the Ecosystem Building Blocks
Driving Leadership in the Ecosystem Building Blocks Leadership across the patient journey Post Medication Quality Transplant NGS Electronic Transplant Transplant Discharge2 & focused HLA Medical Patient Biomarkers1 Analytics3 App4 Typing5 Records6 Referrals7 CareDx is CareDx is CareDx is CareDx is C
Slide 11: COVID Impacted Recent Market Volume Trends
COVID Impacted Recent Market Volume Trends Quarterly Transplant Volumes - Kidney/Heart/Lung Transplant Volume % Growth - Quarter-over-Quarter 8500 20% Extended time for Recovery 8000 15% 7500 7000 10% 6500 5% 6000 5500 0% 5000 -5% 4500 4000 -10% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q21 2Q21 3Q21
Slide 12: Kidney Transplant Recovery Driven by Deceased Donors
Kidney Transplant Recovery Driven by Deceased Donors Pre-COVID up to Q1, 2020 COVID no Vaccines (Vx) Vx to Omicron Early Recovery Stages 6000 5000 4000 3000 2000 1000 0 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 LD DD Source: UNOS Weekly 12
Slide 13: Potential for Transplant Volume Expected to Double in 5-10 Years
Potential for Transplant Volume Expected to Double in 5-10 Years* Return to historical high single digit growth post COVID 1 Increased use of high-risk organs Increased and expanded use of organs through perfusion and 2 improved transport Incremental Drivers of Increased transplantation and post-tra
Slide 14: 2023 Revenue Guidance of $328-$338 Million
2023 Revenue Guidance of $328-$338 Million* 2023 Guidance Assumptions 1. No contribution from catalysts 2. No new major payor coverage 3. No change in reimbursement on paid tests of ~$2,500 4. Low teens Testing Services volume growth 5. Low double-digit decline in overall ASP *As of February 27, 202
Slide 15: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights Volume Gross Balance Sheet Revenue Profitability1,2 Growth Margin $293M Cash & $82.4M 47,700 Tests 64% GAAP Net Loss ($18.3M) Equivalents and Up 4% y/y Marketable Up 2% 67% Adjusted1 Adjusted EBITDA Securities sequentially and ($3.7M) $65.4M Testing 73% Testin
Slide 16: Record Cash Collection in Q4 2022
Record Cash Collection in Q4 2022 H1 2022 2022 vs 2021 2022 Improving Qtr by Qtr Investments in infrastructure scale Scaling are starting to show infrastructure in the cash ramp collected especially in Q4 2022 16
Slide 17: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights Volume Gross Balance Sheet Revenue Profitability1,2 Growth Margin $293M Cash & $82.4M 47,700 Tests 64% GAAP Net Loss ($18.3M) Equivalents and Up 4% y/y Marketable Up 2% 67% Adjusted1 Adjusted EBITDA Securities sequentially and ($3.7M) $65.4M Testing 73% Testin
Slide 18: Testing Services – ASP has not changed on Reimbursed Tests
Testing Services – ASP has not changed on Reimbursed Tests All Paid Test ASP Trend (Testing Qtr) $3,000 FLAT $2,000 $1,000 $- Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 18
Slide 19: Testing Services Payor Strategy to Increase Reimbursement
Testing Services Payor Strategy to Increase Reimbursement Situation: Increasing mix of Commercial Patients from New Launches Strategy + CN expansion Coverage and Guidelines + AlloSure Lung (ASL) Discussions with MolDx ASH Focus on ISHLT Guidelines MA Improve Collections + AlloSure Heart (ASH) 2023 P
Slide 20: Opportunity of >$20M Through Collections for Medicare Advantage Claims
Opportunity of >$20M Through Collections for Medicare Advantage Claims Medicare Advantage - Potential Revenue/Cash $30.0 Medicare Advantage $20.0 Claims Opportunity (unpaid claims) as $10.0 Collections Improve. No Coverage Needed. $- FY20 FY21 FY22 Revenue potential @$2500 ASP 20
Slide 21: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights Volume Gross Balance Sheet Revenue Profitability1,2 Growth Margin $293M Cash & $82.4M 47,700 Tests 64% GAAP Net Loss ($18.3M) Equivalents and Up 4% y/y Marketable Up 2% 67% Adjusted1 Adjusted EBITDA Securities sequentially and ($3.7M) $65.4M Testing 73% Testin
Slide 22: 2023 Revenue Guidance of $328-$338 Million
2023 Revenue Guidance of $328-$338 Million* 2023 Guidance Assumptions 1. No contribution from catalysts 2. No new major payor coverage 3. No change in reimbursement on paid tests of ~$2,500 4. Low teens Testing Services volume growth 5. Low double-digit decline in overall ASP *As of February 27, 202
Slide 23: CareDx: Your Partner in Transplant Care
é Care Dx: Your Partner in Transplant Care 23 é CareDx
Slide 24: Appendix
Appendix a é CareDx:
Slide 25: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin FY FY FY FY Q4 Q1 Q2 Q3 Q4 FY in Millions (except %) 2018 2019 2020 2021 2021 2022 2022 2022 2022 2022 Revenue 76.6 127.1 192.2 296.4 79.2 79.4 80.6 79.4 82.4 321.8 GAAP Cost of Revenue 33.0 45.5 63.1 97.4 27.0 26.9 27.5 28.3 29.5 112.2 GAAP Gross Profit 43.6
Slide 26: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA FY FY FY FY Q4 Q1 Q2 Q3 Q4 FY in Millions 2018 2019 2020 2021 2021 2022 2022 2022 2022 2022 GAAP Net Loss (46.8) (22.0) (18.7) (30.7) (16.2) (19.6) (21.7) (16.9) (18.3) (76.6) Stock-based compensation expense 7.1 22.4 23.4 36.1 9.5 10.6 12.6 11.2 12.1 46.6 Impairmen