Guardant Health, Inc. · NASDAQ:GH
Guardant Health — Q1 2023 Earnings Presentation
20 slides from Guardant Health's earnings presentation, May 9, 2023
Slide 1: Transforming Cancer Care
Transforming Cancer Care Q1 2023 Earnings Call May 9, 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: Core business growing rapidly today with most exciting pipeline in diagnostics
Core business growing rapidly today with most exciting pipeline in diagnostics High growth core business approaching breakeven with multi-billion dollar revenue potential Therapy Selection Technology leader Market leader Biopharma partnerships Attractive financial profile Pipeline of multi-billion d
Slide 4: Strong revenue growth in Q1 2023
Strong revenue growth in Q1 2023 First Quarter Revenue 34% YoY revenue growth led by Guardant360 with +34% robust growth across the business $129M Focus on execution, operations, customer service $96M Seeing benefits of platform investments around customer experience Breast CDx and payer coverage ex
Slide 5: Guardant360 Response now reimbursed by Medicare
Guardant360 Response now reimbursed by Medicare ✓ First blood-only liquid biopsy test for monitoring molecular response to immune checkpoint inhibitors ✓ Covered for US Medicare patients with metastatic or inoperable solid tumors with rate updated to $1,943 ✓ Coverage includes a Guardant360 CDx or L
Slide 6: Therapy Selection core business: the most complete portfolio with four Medicare-reimbursed precision oncology tests
Therapy Selection core business: the most complete portfolio with four Medicare-reimbursed precision oncology tests 1st FDA-Approved Next-Generation 1st Blood-Only Liquid Biopsy Next-Generation Comprehensive Liquid Liquid Biopsy Assay to Monitor Therapeutic Tissue Assay Biopsy Response Reimbursed by
Slide 7: Q1 clinical volumes up 45% year over year
Q1 clinical volumes up 45% year over year Clinical Volume +45% 45% YoY growth in clinical volumes led by 39.1K Guardant360, Reveal, TissueNext 36.0K 32.4K Strong Guardant360 growth in lung boosted by 29.3K 27.1K breast cancer following ESR1 CDx approval 25.6K 22.8K Gaining operating leverage from pa
Slide 8: Biopharma testing volumes up 21% year over year
Biopharma testing volumes up 21% year over year Biopharma Volume +21% Continued ctDNA leadership with >150 biopharma partners since launch 6.2K Guardant Infinity continues to exhibit 5.1K strong growth Multiple Guardant360 CDx programs in ESR1 signed including recently announced with study Sermonix
Slide 9: Spotlight ESR1: emerging mutation with high unmet need fueling Guardant360 CDx growth
Spotlight ESR1: emerging mutation with high unmet need fueling Guardant360 CDx growth ~67%–80% of breast cancers in ESR1 mutations are present in up to women are ER+, HER2-1 40% of ER+, HER2- advanced breast cancers2 Breast cancer is the second leading cause of cancer ESR1 is an emergent mutation th
Slide 10: ECLIPSE met co-primary endpoints
ECLIPSE met co-primary endpoints CRC Sensitivity Specificity Guardant Reveal powered by Smart Liquid Biopsy 83% 90% N=65 10 Chung, et al. Digestive Diseases Week 2023. Abstract #913e
Slide 11: Stage-specific CRC sensitivity
Stage-specific CRC sensitivity Stage I – III Sensitivity: 81%# 100% 100% # Excludes 3 lost to clinical 72% follow-up (2/3 detected) Sensitivity (%) Localized Regional Distant Stage I/II Stage III Stage IV Stage I* Stage II Stage III Stage IV 55% (12/22) 100% 100% (16/16) 100% (14/14) (10/10) *Assume
Slide 12: cfDNA blood-based test: potential to have high impact on CRC screening
cfDNA blood-based test: potential to have high impact on CRC screening CRC Sensitivity1,2 Patient Adherence Rates3-9 (From Literature) (From Literature) cfDNA Blood Test 83% 85-96%10 Colonoscopy 95% 28-59% FIT Stool Test 74% 43-65% Guardant Reveal powered Multitarget Stool DNA Test by Smart 92% Liqu
Slide 13: Blazing a trail to the first FDA approved and reimbursed multi-cancer test
Blazing a trail to the first FDA approved and reimbursed multi-cancer test Filed Published Launched ECLIPSE PMA staging data Launch Shield Medicare & ACS USPSTF Shield LDT Readout with FDA at DDW IVD-CRC ADLT Status Guidelines Guidelines May 2022 4Q’ 22 1Q’ 23 2Q’ 23 2024 2026 CRC Drives ADLT Pricin
Slide 14: Q1 2023 financial overview
Q1 2023 financial overview Q1’23 Q1’22 Total Revenue $128.7M $96.1M Precision Oncology Revenue $113.4M $84.1M Development Services & Other $15.3M $12.0M Gross Margin 59% 67% Precision Oncology Gross Margin 60% 64% Development Services & Other Gross Margin 48% 89% Operating Less Expenses than half ac
Slide 15: Q1 2023 non-GAAP financial measures
Q1 2023 non-GAAP financial measures Q1’23 Q1’22 Non-GAAP Operating Expenses $188.3M $158.7M Non-GAAP Net Loss ($108.5M) ($93.2M) Non-GAAP EPS ($1.06) ($0.91) Adjusted EBITDA ($101.0M) ($86.6M) Less than half accessible with tissue- based approaches Non-GAAP operating expenses exclude stock-based com
Slide 16: Reduced operating expenses and cash burn in Q1 2023
Reduced operating expenses and cash burn in Q1 2023 Non-GAAP Operating Expenses Free Cash Outflow $201M $101M $188M $8M* $82M $6M* $180M $76M Q4 22 Q1 23 Q1 22 Q1 23 *Severance costs related to Q1 2023 workforce reduction Non-GAAP operating expenses exclude stock-based compensation and related emplo
Slide 17: Continued focus on cash management to extend runway and achieve Therapy Selection breakeven
Continued focus on cash management to extend runway and achieve Therapy Selection breakeven • Demonstrated leverage in Q1 from infrastructure investments and recent workforce reduction • $937M cash balance at end Q1 2023, runway extends to 2026 • Therapy Selection on-track to be breakeven in 6-9 mon
Slide 18: FY 2023 guidance
FY 2023 guidance ▪ Total Revenue: $535 – $545 million, growth of 19% to 21% y/y ▪ Previously $525 - $540 million ▪ Operating Expenses: below FY 2022 ▪ Free Cash Outflow: ~$350 million in 2023 18
Slide 19: Key 2023 milestones transforming the continuum of care
Key 2023 milestones transforming the continuum of care Core Business Drivers Therapy Selection CMS reimbursement for Guardant Response Ongoing rapid deployment of EMR customer integration Guardant360 reimbursement in Japan Exceed 200M covered lives for TissueNext Pipeline Catalysts MRD / Recurrence
Slide 20: Guardant
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