Slide 1: Q3 2024 Financial and Business Presentation
Q3 2024 Financial and Business Presentation November 4, 2024 Patrick G, Kidney Transplant Recipient
Slide 2: Safe Harbor Statement
Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of histor
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights Financial Results and FY 2024 Guidance Business Updates Revenue CMS Coverage Reaffirmed Total revenue of $82.9 million increased 23% year-over-year CMS reaffirmed longstanding Medicare coverage for AlloSure® and AlloMap® Testing Testing Volume Testing Services volume of 44,600 tes
Slide 4: Business Highlights
Business Highlights é CareDx
Slide 5: CareDx Synergistic Portfolio Drives Customer Adoption
CareDx Synergistic Portfolio Drives Customer Adoption ORGAN MATCHING/WAIT LISTING CARE QUALITY/SYSTEM EFFICACY GRAFT HEALTH SOLUTIONS ACROSS PATIENT JOURNEY LAB PRODUCTS TRANSPLANT CENTER PATIENT DX & SOLUTIONS ▪ HLA Typing ▪ Transplant EMR ▪ Remote Monitoring ▪ Lab Management Software ▪ Quality Rep
Slide 6: QTYPE Now Features Single Bead Resolution for Rapid Deceased Donor Typing
QTYPE Now Features Single Bead Resolution for Rapid Deceased Donor Typing QTYPE DETECTS 100% OF ANTIGENS PRESENT ON AVAILABLE ANTIBODY DETECTION ASSAYS1 • QTYPE now includes single bead Antibody Detection QTYPE Coverage antigen resolution RECIPIENT DONOR SAB Panel I SAB Panel II • Ideal for compatib
Slide 7: Early Access Program
Early Access Program Innovative Solution for Donor-Recipient Matching at Haplotype Level AlloSeq Tx 17 High Resolution HLA Typing + Hi-C LinkPrep Technology for Haplotyping Paternal Haplotype HLA Region on Maternal Haplotype Chromosome 6 New Data at ASHI Shows 3-D View of Haplotyping Without Need fo
Slide 8: Charting a Path to Profitable Growth and Strategic Capital Allocation
Charting a Path to Profitable Growth and Strategic Capital Allocation 2027 Financial Targets PROFITABLE GROWTH PROFITS AND CASH CAPITAL ALLOCATION ▪ M&A $500M 20% ▪ Invest in Core 2027 Revenue Target 2027 Adjusted Business EBITDA Target ▪ Share Buyback 15% +$100M 3-Year Revenue CAGR Target 3-Year In
Slide 9: Financial Highlights
Financial Highlights
Slide 10: CareDx Q3 2024 Financial Highlights
CareDx Q3 2024 Financial Highlights TESTING NON-GAAP ADJUSTED REVENUE CASH BALANCE VOLUME GROSS MARGIN1 EBITDA Q3 2024 $82.9 ~44,600 69% $6.9M $241 million positive million YEAR- 23% 16% +240 +$17.9M -$27.3 OVER-YEAR increase increase basis points million 1. GAAP Gross Margin in Q3 2024 was 67%, as
Slide 11: Strong Year-Over-Year Revenue Growth
Strong Year-Over-Year Revenue Growth +23% $82.9 Drivers of Growth ▪ Five quarters of sequential testing services volume growth $67.2 in millions USD ▪ Expanded payor coverage and collections driving higher ASP’s ▪ Strong growth in Patient and Digital Solutions Q3 2023 Q3 2024 11
Slide 12: Revenue Growth Across All Businesses
Revenue Growth Across All Businesses Patient & Digital Testing Services Lab Products Solutions +27% +20% $60.8 +7% $11.9 in millions USD $47.8 $10.2 $9.9 $9.5 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 12
Slide 13: Achieved Fifth Consecutive Quarter of Testing Services Volume Growth Across All Organs
Achieved Fifth Consecutive Quarter of Testing Services Volume Growth Across All Organs +16% +2% +4% +6% +4% +2% 49.9k 43.7k 44.6k 39.9k 42.1k 37.5k 38.4k Q1 20231 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 1. Drop in Testing Services volume from Q1 2023 to Q2 2023 due to the impact of Billing A
Slide 14: Revenue Growth Drives Improved Adjusted EBITDA
Revenue Growth Drives Improved Adjusted EBITDA +$18 $6.9 Drivers of Improved EBITDA in millions USD ▪ Strong revenue growth ▪ Improved gross margin ▪ Lower operating expenses -$10.9 Q3 2023 Q3 2024 14
Slide 15: Revised 2024 Guidance
Revised 2024 Guidance Guide Assumptions July 2024 November 2024 Total Revenue $320M - $328M $327M – $331M Testing Services Testing Services • Volume to grow high teens and revenue to grow in mid twenties • Volume to grow mid teens and implied revenue growth of 30% year- year-over-year in second half
Slide 16: CareDx: Your Partner in Transplant Care
é CareDx’ Your Partner in Transplant Care™
Slide 17: Appendix
Appendix » §CareDx a
Slide 18: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA in millions USD Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 GAAP Net Loss (23.5) (118.1) (16.7) (1.4) (7.4) Stock-based compensation expense 12.7 10.0 13.3 13.2 13.7 Unrealized loss (gain) on investments 0.3 - - - - Realized gain on investments - (1.5) - - - Acquisition
Slide 19: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin Q3 Q4 Q1 Q2 Q3 in millions USD (except %) 2023 2023 2024 2024 2024 Revenue 67.2 65.6 72.0 92.3 82.9 GAAP Cost of Revenue 24.5 25.8 25.9 28.0 27.6 GAAP Gross Profit 42.7 39.8 46.1 64.3 55.3 GAAP Gross Margin % 64% 61% 64% 70% 67% Non-GAAP Expense: Stock-based c