Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q2 2023 Earnings Presentation
18 slides from Guardant Health's earnings presentation, Aug 3, 2023
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q2 2023 Earnings Call August 3, 2023
Slide 2: Safe harbor
Safe harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking statements within the with or furnished to the Securities and Exchange Commission. Except as required by law, the Company assumes no obligation meaning of federal securities laws. These state
Slide 3: High growth core business approaching breakeven with a potentially higher growth pipeline
High growth core business approaching breakeven with a potentially higher growth pipeline Therapy Selection TECHNOLOGY MARKET BIOPHARMA ATTRACTIVE LEADER LEADER PARTNERSHIP FINANCIAL PROFILE Pipeline of multi-billion dollar revenue opportunities in early stages MRD / Recurrence Monitoring Screening
Slide 4: Robust topline growth driven by precision oncology revenue
Robust topline growth driven by precision oncology revenue Total Revenue Precision Oncology Revenue ($ million) ($ million) +26% +36% $137.2 $125.2 $109.1 $92.1 Q2 2022 Q2 2023 Q2 2022 Q2 2023 4
Slide 5: Surpassed 50,000 precision oncology tests in Q2
Surpassed 50,000 precision oncology tests in Q2 Clinical Volume Biopharma Volume +49% +12% 43.5K 6.7K 6.0K 29.3K Q2 2022 Q2 2023 Q2 2022 Q2 2023 5
Slide 6: Strong performance across our product portfolio
Strong performance across our product portfolio Continued to see strength in lung volumes for Guardant360 Acceleration in breast fueled by recent Guardant360 approval for ESR1 Growth in TissueNext, differentiated by our Lunit-powered Galaxy AI Continued traction with Reveal across CRC, lung & breast
Slide 7: Recent breakthroughs in payer coverage
Recent breakthroughs in payer coverage Therapy Selection Secured coverage from Anthem Blue Cross and Blue Shield, Aetna and Humana for Guardant360 Crossed 300 million covered lives for Guardant360 Approaching 200 million covered lives for TissueNext MRD / Recurrence Monitoring Received first commerc
Slide 8: Received national reimbursement for Guardant360 in Japan
Received national reimbursement for Guardant360 in Japan Japan market landscape Guardant in Japan 1M new cancer cases per year with ~390K cancer Received national reimbursement approval from deaths per year the Japanese MHLW for Guardant360 CDx Centralized care with around 260 core genomic Pricing i
Slide 9: Blazing a trail to the first FDA approved and reimbursed multi-cancer screening test
Blazing a trail to the first FDA approved and reimbursed multi- cancer screening test Filed Published Launched ECLIPSE PMA with staging data Launch Shield Medicare & ACS USPSTF Shield LDT Readout FDA at DDW IVD-CRC ADLT Status Guidelines Guidelines May 2022 4Q’ 22 1Q’ 23 2Q’ 23 2024 2026 CRC Drives
Slide 10: Life-years gained per 1,000 individuals
Shield is in range with other guideline recommended modalities Real-world longitudinal adherence model Model parameters Lifetime number of colonoscopies and life-years gained for simulated cohort CRC One-Time Screening Specificity2,3 Sensitivity2,3 Adherence3-6 Interval1-3 Life-years gained per 1,00
Slide 11: Pathway to multi-cancer screening with expansion into lung cancer
Pathway to multi-cancer screening with expansion into lung cancer Indication expansion for Guardant Reveal powered by Smart Liquid Biopsy #1 15M <15% >6k Leading cause of cancer- High risk individuals Compliance to Enrolled in Shield- related death eligible for lung cancer screening LUNG screening 1
Slide 12: Q2 2023 financial overview
Q2 2023 financial overview Q2’23 Q2’22 Total Revenue $137.2M $109.1M Precision Oncology Revenue $125.2M $92.1M Development Services & Other $11.9M $17.1M Gross Margin 61% 66% Precision Oncology Gross Margin 61% 63% Development Services & Other Gross Margin 62% 86% Operating Expenses $202.9M $202.7M
Slide 13: Q2 2023 non-GAAP financial measures
Q2 2023 non-GAAP financial measures Q2’23 Q2’22 Non-GAAP Operating Expenses $180.5M $176.2M Non-GAAP Net Loss ($88.7M) ($101.8M) Non-GAAP EPS ($0.82) ($1.00) Adjusted EBITDA ($85.2M) ($94.3M) Q2’23 Q2’22 Free Cash Flow ($100.5M) ($135.0M) Non-GAAP operating expenses exclude stock-based compensation
Slide 14: Equity offering extends runway to reach cash flow breakeven
Equity offering extends runway to reach cash flow breakeven Five Year Capital Allocation Assumptions Therapy • On-track for cash flow breakeven in 3-6 months Selection • Will generate positive cash flow from 2024 onward $1.2B of cash at end of Q2 2023 MRD • Spend focused on market penetration and cl
Slide 15: Raising our guidance for FY 2023 revenue
Raising our guidance for FY 2023 revenue ▪ Total Revenue: $545 – $550 million, growth of 21% to 22% y/y ▪ Raised from previous expectations of $535 - $545 million ▪ Operating Expenses: below FY 2022 ▪ Free Cash Flow: ~($350) million in 2023 15
Slide 16: Key 2023 milestones transforming the continuum of care
Key 2023 milestones transforming the continuum of care Therapy Selection CMS reimbursement for Guardant Response Guardant360 reimbursement in Japan Ongoing rapid deployment of EMR customer integration Exceed 200M covered lives for TissueNext MRD / Recurrence Monitoring Screening First commercial rei
Slide 17: Investor Day
Investor Day Thursday, September 7, 2023 Hosted in New York City with virtual webcast Contact investors@guardanthealth.com for more information 17
Slide 18: Guardant
(@) GUARDANT