Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q1 2024 Earnings Presentation
21 slides from Guardant Health's earnings presentation, May 9, 2024
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q1 2024 Earnings Call May 9, 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 Therapy Selection Technology Market Biopharma Attractive Leader Leader Partnerships Financial Profile Pipeline of multi-billion dollar revenue opportunities MRD / Recurrence Monitoring Screening 1st and only Medicare-reimbursed tissue-fr
Slide 4: Robust topline growth driven by precision oncology revenue
Robust topline growth driven by precision oncology revenue Total Revenue 31% Precision Oncology Revenue 38% $168M YoY Growth $156M YoY Growth $129M $113M Q1 2023 Q1 2024 Q1 2023 Q1 2024 4
Slide 5: Strong growth in clinical and biopharma volumes
Strong growth in clinical and biopharma volumes Clinical Volumes 20% YoY Growth Biopharma Volumes 8,450 37% YoY Growth 46,900 39,100 6,150 Q1 2023 Q1 2024 Q1 2023 Q1 2024 5
Slide 6: Q1 Therapy Selection highlights
Q1 Therapy Selection highlights Generated positive free cash flow in Therapy Selection business Significant improvement in Guardant360 ASP from recent commercial payer coverage wins and CMS Guardant360 LDT increase to $5,000 Continued Guardant360 volume growth across all cancer types More than one t
Slide 7: Partnership to benefit lung cancer patients through expanded NHS study
Partnership to benefit lung cancer patients through expanded NHS study • Launched new service at The Royal Marsden in England to test advanced NSCLC patients using Guardant360 • NHS England study has already enabled >2,000 patients with suspected NSCLC to receive a liquid biopsy at time of diagnosis
Slide 8: Demonstrating first-of-its-kind capabilities powered by our Smart Liquid Biopsy Platform
Demonstrating first-of-its-kind capabilities powered by our Smart Liquid Biopsy Platform Adverse event prediction Histologic subtyping Disease monitoring Prognostic assessment Highlights the potential for greater insights from Smart Liquid Biopsy beyond genotyping and therapy monitoring 8
Slide 9: 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 10: Publication of ECLIPSE study validates strength and quality of clinical data
Publication of ECLIPSE study validates strength and quality of clinical data • Publication in the New England Journal of Medicine, the world’s leading medical journal • Endorsement of the clinical data and study quality • Data meets the benchmark for Medicare reimbursement and to be the first FDA ap
Slide 11: Publication of ECLIPSE study generated significant interest with media, consumer advocacy, and opinion leaders
Publication of ECLIPSE study generated significant interest with media, consumer advocacy, and opinion leaders “…many patients are reluctant to undergo colonoscopies or conduct at-home tests. Now, doctors see potential in another screening method: The blood test.” “…this publication gets us one step
Slide 12: Preparing to launch Shield IVD following expected FDA approval
Preparing to launch Shield IVD following expected FDA approval 2024 2025 2026 • ECLIPSE Journal • ADLT Status • USPSTF Guidelines Publication • Improved Medicare • Expanded Market • Advisory Panel (May 23) Pricing Opportunity • FDA Approval • ACS Guidelines • Shield IVD Launch • Positive Gross Margi
Slide 13: Shield is well-positioned to convert unscreened individuals
Shield is well-positioned to convert unscreened individuals 120M Average-risk individuals (Ages 45 – 84)1 Patients >50 years old that visited doctors for any reason in the last 12 months1 87% 50M Unscreened individuals 2 Patients >45 years old that had blood draw in the last 12 months2 91% 75% Of CR
Slide 14: Kaiser study shows improvement in CRC screening rates with added choice of Shield test
Kaiser study shows improvement in CRC screening rates with added choice of Shield test 2.9-Fold Increase 305 Randomized, controlled study of >2,000 individuals 130 “Usual Care” group offered Colonoscopy or FIT “Intervention” group offered Usual Care Intervention N = 1,003 N = 1,001 Colonoscopy or FI
Slide 15: Q1 2024 GAAP financials
Q1 2024 GAAP financials Q1’24 Q1’23 Total Revenue $168.5M $128.7M Precision Oncology $156.2M $113.4M Development Services & Other $12.3M $15.3M Gross Margin 61% 59% Operating Expenses $202.9M $209.7M Loss from Operations $(99.7M) $(134.1M) Net Loss $(115.0M) $(133.5M) EPS $(0.94) $(1.30) 15 Gross ma
Slide 16: Guardant360 ASP benefiting from multiple tailwinds
Guardant360 ASP benefiting from multiple tailwinds Guardant360 ASP Guardant360 LDT Medicare reimbursement increased to $5,000 effective January 1, 2024 ~$2,900-$2,950 Additional ASP tailwinds due to improved ~$2,750 commercial reimbursement ~$2,700 ~$2,650 FY 2024 Guardant360 ASP expected to be $2,9
Slide 17: Q1 2024 non-GAAP financial measures & cash balance
Q1 2024 non-GAAP financial measures & cash balance Non-GAAP Measure Q1’24 Q1’23 Gross Margin 63% 60% Gross Margin excluding Screening 64% 63% Operating Expenses $176.5M $188.3M Net Loss $(56.4M) $(108.5M) EPS $(0.46) $(1.06) Adjusted EBITDA $(61.1M) $(101.0M) March 31, 2024 December 31, 2023 Cash, c
Slide 18: Reduced cash burn driven by improved ASPs and lower Screening spend
Reduced cash burn driven by improved ASPs and lower Screening spend FY 2024 Screening Cash Burn Reduced free cash flow to $(37M) in Q1 2024 compared to $(82M) in Q1 2023 COGS ~10% FY 2024 free cash flow now expected to be $(275M) to $(285M) compared to $(345M) in FY 2023 Driven by improved Guardant3
Slide 19: Updating full year 2024 guidance with improvements across all metrics
Updating full year 2024 guidance with improvements across all metrics Updated Prior Revenue excluding Screening $675M - $685M $655M - $670M 20% - 21% y/y growth 16% - 19% y/y growth Non-GAAP Gross Margin excluding Screening 61% - 63% 60% - 62% Non-GAAP Operating Expenses $720M - $730M $740M - $750M
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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