Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q4 2022 Earnings Presentation
19 slides from Guardant Health's earnings presentation, Feb 23, 2023
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q4 2022 & FY 2022 Earnings Call February 23, 2023
Slide 2: Safe harbor
Safe harbor Certain statements in this presentation and the accompanying oral commentary are forward-looking achievements to differ materially from those expressed or implied by these forward-looking statements. The statements within the meaning of federal securities laws. These statements relate to
Slide 3: Demonstrated execution across all business areas in 2022
Demonstrated execution across all business areas in 2022 Recurrence Therapy Selection Screening Monitoring / MRD • Additional FDA approvals for Guardant360CDx • Medicare coverage for Guardant Reveal CRC • Positive results from ECLIPSE for CRC detection (ENHERTU) • Guardant Reveal multi-cancer expans
Slide 4: Strong revenue growth in Q4 and full year 2022
Strong revenue growth in Q4 and full year 2022 Fourth Quarter Revenue Full Year Revenue +17% +20% $127M $450M $108M $374M Q4 2021 Q4 2022 2021 2022 4
Slide 5: Record clinical volumes in Q4, up 41% year over year
Record clinical volumes in Q4, up 41% year over year Clinical Volume +41% 36.0K 26% YoY growth in clinical revenue led 32.4K by Guardant360 29.3K 27.1K 25.6K Growth fueled by both new products 22.8K and Guardant360 20.8K Increase in ordering oncologists and Guardant tests per customer Guardant360 AS
Slide 6: Guardant360 a blockbuster diagnostic franchise poised for continued growth in 2023
Guardant360 a blockbuster diagnostic franchise poised for continued growth in 2023 #1 Liquid Biopsy & Highest Rated for CGP1 12,000+ ✓ Market leader in liquid biopsy testing with 2 of 3 NSCLC liquid biopsy tests being a Guardant360 ordering oncologists ✓ Despite new entrance in the field, continued
Slide 7: Guardant's CDx partnerships continue to grow across biomarkers and tumor types
Guardant’s CDx partnerships continue to grow across biomarkers and tumor types Drug Biomarker Indication Status Tagrisso / Osimertinib EGFR L858R, ex 19 del, T790M NSCLC US Approved Lumakras /Sotorasib KRAS G12C NSCLC US Approved Rybrevant /Amivantamab EGFR Exon 20 Insertion NSCLC US Approved Keytru
Slide 8: Biopharma testing volumes up 24% year over year
Biopharma testing volumes up 24% year over year Biopharma Volume +24% 8.2K Record volume of 8,200 tests Market leader in ctDNA with >150 6.6K 6.8K biopharma partners since launch 6.0K 5.1K Guardant Infinity now >20% of 4.8K biopharma volume mix 3.6K Guardant360 CDx approvals across lung and breast i
Slide 9: Guardant Reveal – a potential large franchise in its early innings
Guardant Reveal – a potential large franchise in its early innings Exponential launch trajectory 2023 Growth Drivers >250% YoY clinical volume ✓ Market penetration in key tumor types (CRC, breast, lung) growth in 2022 ✓ Smart liquid biopsy platform technology upgrade Clinical Study Highlights Study
Slide 10: Strong performance in CRC detection (ECLIPSE) and testing adherence
Strong performance in CRC detection (ECLIPSE) and testing adherence (real-world from LDT) 83% 74% CRC Sensitivity (Overall) Sensitivity1 FIT Biopsy 43% 90% Guardant Reveal powered by Smart Liquid Biopsy Real-world Adherence2 Real-world Adherence3 75% 32% Effective Sensitivity Effective Sensitivity 9
Slide 11: Guideline thought leaders are excited about Shield following a positive ECLIPSE readout
Guideline thought leaders are excited about Shield following a positive ECLIPSE readout “Encouraging results from the ECLIPSE study suggest that screening for colorectal cancer using a blood-based test could provide an easier option for patients as the preferred alternative to stool-based testing.”
Slide 12: Effectiveness analysis suggests that Shield will dramatically improve CRC detection
Effectiveness analysis suggests that Shield will dramatically improve CRC detection Effective Sensitivity 75%1 60%2 1 Adherence by modality Guardant Reveal powered by Smart Liquid Biopsy 40%4 32%3 2 Performance (Sensitivity-Specificity) Category 1 Category 2 Category FIT 3 Category 4 Colonoscopy 1.
Slide 13: U-Screen: prospective study to demonstrate improved CRC adherence
U-Screen: prospective study to demonstrate improved CRC adherence in unscreened patient population • Independent, prospective study initiated by University of Chicago Medicine • Up to 2,400 patients of ages 45-75 at average risk of developing CRC and have failed to complete guideline-recommended scr
Slide 14: Q4 and full year 2022 financial overview
Q4 and full year 2022 financial overview Q4’22 Q4’21 FY’22 FY’21 Total Revenue $126.9M $108.1M $449.5M $373.7M Precision Oncology Revenue $113.8M $88.7M $392.0M $304.3M Development Services & Other $13.1M $19.4M $57.5M $69.3M Gross Margin 63% 69% 65% 67% Operating Expenses $225.9M $172.9M $837.6M $6
Slide 15: Q4 and full year 2022 non-GAAP financial measures & cash
Q4 and full year 2022 non-GAAP financial measures & cash Q4’22 Q4’21 FY’22 FY’21 Non-GAAP Operating Expenses $201.2M $146.2M $736.6M $506.8M Non-GAAP EPS -$1.17 -$0.69 -$4.26 -$2.48 Adjusted EBITDA -$109.8M -$64.6M -$403.4M -$231.5M December 31, December 31, Less than half accessible 2022 2021 with
Slide 16: Maximizing market opportunities while reducing operating expenses and cash burn in 2023
Maximizing market opportunities while reducing operating expenses and cash burn in 2023 • Achieving leverage from infrastructure investments made over recent years Single technology platform Consolidated reimbursement operations Oncology commercial infrastructure Scalable centralized lab operations
Slide 17: FY 2023 guidance
FY 2023 guidance ▪ Total Revenue: $525 – $540 million, growth of 17% to 20% y/y ▪ Precision Oncology Revenue: >20% growth over 2022 ▪ Development Services & Other Revenue: > $50 million ▪ Operating Expenses: below FY 2022 ▪ Free Cash Outflow: ~$350 million in 2023 17
Slide 18: Key milestones transforming the continuum of care
Key milestones transforming the continuum of care 2022 2023 Therapy CMS reimbursement for TissueNext CMS reimbursement for Guardant Response Selection Regulatory approval in Japan Guardant360 reimbursement in Japan First liquid biopsy testing in Europe operational Ongoing rapid deployment of EMR cus
Slide 19: Guardant
(@) GUARDANT