Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q3 2024 Earnings Presentation
21 slides from Guardant Health's earnings presentation, Nov 6, 2024
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q3 2024 Earnings Call November 6, 2024
Slide 2: Safe harbor and non-GAAP disclosures
Safe harbor and non-GAAP disclosures Certain statements in this presentation and the accompanying oral commentary are forward-looking projections are reasonable, such forward-looking statements are only predictions and involve known and statements within the meaning of federal securities laws. These
Slide 3: Transforming patient lives across the continuum of cancer care
Transforming patient lives across the continuum of cancer care Screening Minimal Residual Disease Therapy Selection Early Disease Detection Recurrence Detection & Surveillance Advanced Cancer Care Cancer Surgery Detection Recurrence +/- Adjuvant 1st Line Tx 2nd Line Tx +Tx FDA Approved 3
Slide 4: Strong topline growth driven by precision oncology
Strong topline growth driven by precision oncology Total Revenue 34% Precision Oncology Revenue 35% $191M YoY Growth $181M YoY Growth $143M $133M Q3 2023 Q3 2024 Q3 2023 Q3 2024 4
Slide 5: Record clinical and biopharma volumes
Record clinical and biopharma volumes Clinical Volume1 21% YoY Growth Biopharma Volume 10,500 40% YoY Growth 53,100 43,900 7,500 Q3 2023 Q3 2024 Q3 2023 Q3 2024 5 1. Clinical test volume is specific to oncology tests only (Guardant360, TissueNext, Response, and Reveal), and does not include Shield t
Slide 6: Q3 Therapy Selection highlights
Q3 Therapy Selection highlights Strong year-over-year and quarter-over-quarter Guardant360 volume growth Guardant360 LDT on Smart Liquid Biopsy platform is resonating strongly in the marketplace Continued improvement in Guardant360 ASPs Medicare pricing for TissueNext will increase from $3,100 to $3
Slide 7: Record biopharma volumes driven by Smart Liquid Biopsy
Record biopharma volumes driven by Smart Liquid Biopsy • Another record quarter of biopharma samples (+40% y/y) • Strong biopharma revenue growth of +34% y/y • Rapid adoption of Infinity Smart Liquid Biopsy platform Biopharma Clinical driven by novel biomarker discovery applications R&D testing pati
Slide 8: Deep Reveal clinical data pipeline supporting efforts for additional reimbursement
Deep Reveal clinical data pipeline supporting efforts for additional reimbursement Indication Specific Studies 1H 2024 2H 2024 1H 2025 2H 2025 CRC Surveillance COSMOS Breast Multiple Lung SMC Pancreatic COSMOS Gastric COSMOS Longer term Phase II Phase III Phase III prospective trials PEGASUS TRACC P
Slide 9: Reveal on track for inflection in 2025
Reveal on track for inflection in 2025 CRC surveillance COGS Volume reimbursement reduction acceleration ASP Gross margin Cash burn improvement inflection point reduction 9
Slide 10: FDA approved for first-line CRC screening
FDA approved for first-line CRC screening Intended Use The Shield test is a qualitative, in vitro diagnostic test intended to detect colorectal cancer derived alterations in cell-free DNA from blood collected in the Guardant Blood Collection Kit. Covered by Medicare Shield is intended for colorectal
Slide 11: Finally, a colon cancer screening option to get excited about
Finally, a colon cancer screening option to get excited about… Commercially available in U.S. Launch targeting covered patients 11
Slide 12: Strong momentum following targeted Shield launch
Strong momentum following targeted Shield launch Initial volume post-launch ahead of expectations Successful targeting with majority of volume coming from covered patients Strong depth of ordering by prescribing physicians Excellent adherence rate of >90% post-launch On track to have >100 trained sa
Slide 13: Shield received favorable Medicare pricing
Shield received favorable Medicare pricing $920 Establishing a new class of Effective as of August 1, 2024 innovative CRC screening 13
Slide 14: CMS finalizes policy to remove barriers to patient adoption of blood-based screening tests
CMS finalizes policy to remove barriers to patient adoption of blood-based screening tests • "Like stool-based CRC screening tests, which are already in the definition of a “complete CRC Screening,” Expanded coverage for follow-up a blood-based biomarker test with a positive result will colonoscopy
Slide 15: Achieved 2024 key milestones for Shield
Achieved 2024 key milestones for Shield 2024 2025 2026 • ECLIPSE Journal • Multi-cancer Data • USPSTF Guidelines Publication • ADLT Status • Expanded Market • Advisory Panel Opportunity • Improved Medicare • FDA Approval Price ($1,495) • Medicare Coverage • ACS Guidelines • Shield IVD Launch • Posit
Slide 16: Q3 2024 GAAP financials
Q3 2024 GAAP financials Q3’24 Q3’23 Total Revenue $191.5M $143.0M Precision Oncology $180.6M $133.4M Development Services & Other $10.9M $9.6M Gross Margin 61% 60% Operating Expenses $234.3M $199.0M Loss from Operations $(117.3M) $(113.5M) Net Loss $(107.8M) $(86.1M) EPS $(0.88) $(0.73) 16 Gross mar
Slide 17: Guardant360 ASP benefiting from multiple tailwinds
Guardant360 ASP benefiting from multiple tailwinds Guardant360 ASP ~$3,000 $2,950-$3,000 $2,900-$2,950 ~$2,750 ~$2,700 ~$2,650 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 17
Slide 18: Q3 2024 non-GAAP financial measures
Q3 2024 non-GAAP financial measures Non-GAAP Measure Q3’24 Q3’23 Gross Margin 63% 61% Gross Margin excluding Screening 65% 63% Operating Expenses $187.3M $177.3M Net Loss $(55.0M) $(79.2M) EPS $(0.45) $(0.67) Adjusted EBITDA $(56.2M) $(79.7M) Free cash flow $(55.3M) $(80.2M) September 30, 2024 Decem
Slide 19: Increasing full year 2024 revenue guidance
Increasing full year 2024 revenue guidance Revenue Non-GAAP Gross Margin (excluding Screening) $720M – $725M 61% – 63% 28% - 29% y/y growth Raised from previous expectations of $690M – $700M Non-GAAP Operating Expenses Free Cash Flow $720M – $730M $(265M) – $(275M) 1% y/y decrease – flat Includes ma
Slide 20: Transforming patient lives across the continuum of cancer care
Transforming patient lives across the continuum of cancer care Therapy Selection MRD Screening Profitable core business Data publications for Shield FDA approval CRC and Breast Increased G360 ASP Shield Medicare MolDX submissions reimbursement Launch of Smart Liquid Biopsy for G360 Volume growth Shi
Slide 21: Guardant
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