Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q4 2023 Earnings Presentation
19 slides from Guardant Health's earnings presentation, Feb 22, 2024
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q4 2023 & FY 2023 Earnings Call February 22, 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: Demonstrated execution in 2023
Demonstrated execution in 2023 Therapy Selection Minimal Residual Disease Screening Advanced Cancer Care Recurrence Detection & Surveillance Early Disease Detection • Achieved cash flow breakeven in Therapy • Upgraded to Smart Liquid • Completed PMA submission Selection at year end Biopsy platform f
Slide 4: Strong revenue growth in Q4 and FY 2023
Strong revenue growth in Q4 and FY 2023 Q4 Revenue 22% FY Revenue 25% $155M YoY Growth $564M YoY Growth $127M $450M Q4 2022 Q4 2023 FY 2022 FY 2023 4
Slide 5: Strong clinical volume growth primarily driven by Guardant360
Strong clinical volume growth primarily driven by Guardant360 Q4 Clinical Volumes 29% YoY Growth FY Clinical Volumes 39% YoY Growth 46,400 172,900 36,000 124,800 Q4 2022 Q4 2023 FY 2022 FY 2023 5
Slide 6: Robust growth in biopharma volumes
Robust growth in biopharma volumes Q4 Biopharma Volumes 16% FY Biopharma Volumes 15% 9,500 YoY Growth 29,900 YoY Growth 8,200 26,000 Q4 2022 Q4 2023 FY 2022 FY 2023 6
Slide 7: Guardant360 ASP benefiting from multiple tailwinds
Guardant360 ASP benefiting from multiple tailwinds Guardant360 ASP $2,850 - $2,900 Guardant360 LDT crosswalked to CDx rate for CMS reimbursement ~$2,750 From $3,500 to $5,000 ~$2,700 Effective January 1, 2024 Additional ASP tailwinds from further commercial payer wins Q3 2023 Q4 2023 Q1 2024E 7
Slide 8: Other recent highlights
Other recent highlights Continued to make excellent progress integrating with the three largest oncology EMR systems with rapid growth of digital adoption Collaboration with US Oncology Network and leading community oncology practices to increase the use of biomarker testing to identify patients who
Slide 9: The only tissue-free MRD test available clinically
Launched Smart Liquid Biopsy to achieve even higher performance for MRD The only tissue-free MRD test available clinically Methylome-wide panel enables hypersensitive MRD detection across 100s of features per patient, without tissue Precise epigenomic-based tumor fraction quantification for disease
Slide 10: Smart Liquid Biopsy MRD data
Smart Liquid Biopsy MRD data COSMOS-Colon surveillance 3 breast cancer publications in preparation Stage II/III colon cancer Pooled analysis across cohorts: 80% Surveillance 99% Specificity 82% Surveillance 97% Specificity Sensitivity Sample-level Sensitivity Sample-level 801 samples from 136 patien
Slide 11: Deep Reveal clinical data pipeline: 80K samples from 20K patients
Deep Reveal clinical data pipeline: 80K samples from 20K patients across solid tumors 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 TRAC
Slide 12: Launching Shield IVD following FDA approval
Launching Shield IVD following FDA approval Growth is stage-gated by market conditions allowing for steady growth while ring- fencing expenses 2024 2025 2026 • ECLIPSE Journal • ADLT Status • USPSTF Guidelines Publication • Improved Medicare • Expanded Market • Advisory Panel Pricing Opportunity • F
Slide 13: Unprecedented compliance for Shield experienced by PCPs and health systems
Unprecedented compliance for Shield experienced by PCPs and health systems Patient preferred blood test modality Prospective Study with drives higher compliance Kaiser Permanente3 Randomized study offering 94% Shield blood test to patients that haven’t completed FIT Participants were Adherence rate
Slide 14: Q4 and full year 2023 financial overview
Q4 and full year 2023 financial overview Q4’23 Q4’22 FY’23 FY22 Total Revenue $155.1M $126.9M $563.9M $449.5M Precision Oncology $142.2M $113.8M $514.2M $392.0M Development Services & Other $12.9M $13.1M $49.7M $57.5M Gross Margin 60% 63% 60% 65% Precision Oncology 60% 62% 60% 62% Development Servic
Slide 15: Q4 and full year 2023 non-GAAP financial measures & free cash flow
Q4 and full year 2023 non-GAAP financial measures & free cash flow Non-GAAP Measure Q4’23 Q4’22 FY’23 FY’22 Gross Margin 61% 65% 61% 67% Gross Margin excluding Screening 63% 66% 63% 67% Operating Expenses $183.1M $201.2M $729.2M $736.6M Net Loss $(75.9)M $(119.6M) $(352.3M) $(435.4M) EPS $(0.64) $(1
Slide 16: Current cash provides runway to reach cash flow breakeven
Current cash provides runway to reach cash flow breakeven 2022 2023 2024 2025 2026 2027 2028 • $1.2B cash at YE Cash flow breakeven • Reached Therapy Selection breakeven end of 2023 • Systematically reducing cash burn in 2024 and beyond • Combined Therapy Selection + MRD generates positive cash flow
Slide 17: Initiating full year 2024 guidance
Initiating full year 2024 guidance Revenue $655M – $670M Excludes revenue contribution from Shield excluding Screening 16% - 19% y/y growth Non-GAAP Gross Margin 60% – 62% Excludes Shield COGS currently recorded in Development Services & Other cost of revenue excluding Screening Non-GAAP $740M – $75
Slide 18: 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 19: Guardant
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