Slide 1: Earnings Presentation Q4 and FY 2022
Leslie M, Kidney Transplant Recipient Focused on improving care across the entire transplant patient journey The Transplant Company™ Earnings Presentation Q4 and FY 2022
Slide 2: Forward-looking statements
These slides and the accompanying oral presentation contain forward-looking statements, including statements with respect to expectations regarding CareDx’s upcoming milestones, vision and 2023 revenue guidance. All statements other than statements of historical fact contained in this presentation,
Slide 3: Q4 Financial and Operational Highlights
Q4 Financial and Operational Highlights 3 (1) Shown on Non-GAAP basis, closest GAAP equivalents provided. Please refer to the Appendix included in these slides for a reconciliation of the non-GAAP financial measures included in these slides and the accompanying oral presentation to the most directly
Slide 4: 2023 Focus On The Three C's - Catalysts, Coverage, Collections
Infrastructure Built to Address Prior Authorizations and Denials/Appeals 2023 Focus On The Three C’s - Catalysts, Coverage, Collections 4 Drive Leadership into Solid Organ Transplants Pipeline Catalysts Leverage Best in Class Data and Clinical Utility and Guidelines Increasing Coverage Improving Col
Slide 5: Key Pipeline Catalysts
Key Pipeline Catalysts Proven stable platform Signature has not changed since discovery and NEJM. Other unstable approaches need to modify algorithm to fit current data Differentiated utility Rejection + BK Nephropathy Robust validation Clinical validation in multiple publications with NEJM as co
Slide 6: Artificial Intelligence Core Part of Pipeline Development
Artificial Intelligence (AI) Core Part of Pipeline Development AlloView Adds Another Layer of Utility to AlloSure Surveillance Prognostic algorithm Predictive algorithm Incorporates Source: Publications and data on file. 6
Slide 7: Strong Payor Coverage is Core Part of the Business Model
Strong Payor Coverage is Core Part of the Business Model 7 Patient Coverage Total Launch CMS Commercial (inc. MA) Current Coverage Strong Payor Coverage* AlloMap Heart 2005 ~25% >50% >75% AlloSure Kidney 2017 ~60% >10% >70% Early in Coverage Cycle* AlloSure Heart 2020 ~25% 1-5% ~25-30% AlloSure Lung
Slide 8: Major Payor Coverage Opportunity in Heart: ISHLT Guidelines
Major Payor Coverage Opportunity in Heart: ISHLT Guidelines 8 AlloMap Heart AlloSure Heart HeartCare Earlier use from 6 months to 2 months Surveillance part of standard/routine testing Recognition of clinical studies New technology recognition Surveillance part of standard/routine testing
Slide 9: Record Cash Collection in Q4 2022
Record Cash Collection in Q4 2022 9 H1 2022 Investments in infrastructure scale are starting to show in the cash ramp collected especially in Q4 2022 2022 vs 2021 2022 Improving Qtr by Qtr Scaling infrastructure
Slide 10: Driving Leadership in the Ecosystem Building Blocks
Post Transplant Biomarkers1 Driving Leadership in the Ecosystem Building Blocks 10 Leadership across the patient journey Electronic Medical Records6 Quality & Analytics3 Transplant focused App4 Medication Discharge2 CareDx is #1 CareDx is #1 CareDx is #1 CareDx is #2 CareDx is #2 Over 100,000 transp
Slide 11: Recent Market Volume Trends
-10% -5% 0% 5% 10% 15% 20% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23TD Transplant Volume % Growth - Quarter-over-Quarter 4000 4500 5000 5500 6000 6500 7000 7500 8000 8500 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Quarterly Transplant Volumes - Kidney/Heart/Lung COVID Impacted Recent Market Volume T
Slide 12: Kidney Transplant Recovery Driven by Deceased Donors
0 1000 2000 3000 4000 5000 6000 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 LD DD Kidney Transplant Recovery Driven by Deceased Donors Source: UNOS Weekly Pre-COVID up to Q1, 2020 COVID no Vaccines (Vx) Vx to Omicron Early Recovery Stages 12
Slide 13: Transplant Volume Expected to Double in 5-10 Years
Potential for Transplant Volume Expected to Double in 5-10 Years* Increased use of high-risk organs Increased and expanded use of organs through perfusion and improved transport Increased transplantation and post-transplant monitoring from the Advancing American Kidney Health Initiative across Tx Re
Slide 14: Record Cash Collection in Q4 2022
14 Record Cash Collection in Q4 2022 H1 2022 Investments in infrastructure scale are starting to show in the cash ramp collected especially in Q4 2022 2022 vs 2021 2022 Improving Qtr by Qtr Scaling infrastructure
Slide 15: Test ASP Trend (Testing Quarter)
$- $1,000 $2,000 $3,000 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 All Paid Test ASP Trend (Testing Qtr) 15 Testing Services – ASP has not changed on Reimbursed Tests FLAT
Slide 16: Testing Services Payor Strategy to Increase Reimbursement
Testing Services Payor Strategy to Increase Reimbursement Situation: Increasing mix of Commercial Patients from New Launches Strategy 16 % Commercial Volume Increase in payer mix + CN expansion + AlloSure Lung (ASL) ASH MA 52% End 2020 62% End 2021 2023 Plan+ AlloSure Heart (ASH) + Medicare Advantag
Slide 17: Opportunity of >$20M Through Collections for Medicare Advantage Claims
Opportunity of >$20M Through Collections for Medicare Advantage Claims 17 Medicare Advantage Claims Opportunity (unpaid claims) as Collections Improve. No Coverage Needed. $- $10.0 $20.0 $30.0 FY20 FY21 FY22 Medicare Advantage - Potential Revenue/Cash Revenue potential @$2500 ASP
Slide 18: 2023 Revenue Guidance of $328-$338 Million
2023 Revenue Guidance of $328-$338 Million* 18 2023 Guidance Assumptions 1. No contribution from catalysts 2. No new major payor coverage 3. No change in reimbursement on paid tests of ~$2,500 4. Low teens Testing Services volume growth 5. Low double-digit decline in overall ASP *As of February 27,
Slide 19: Your Partner in Transplant Care
é Care Dx’ Your Partner in Transplant Care 1 é CareDx
Slide 20: Appendix
Appendix 20 &éCareDx:
Slide 21: Reconciliation of Non-GAAP Gross Margin
Reconciliation of Non-GAAP Gross Margin FY 2018 FY 2019 FY 2020 FY 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Revenue 76.6 127.1 192.2 296.4 79.2 79.4 80.6 79.4 82.4 321.8 GAAP Cost of Revenue 33.0 45.5 63.1 97.4 27.0 26.9 27.5 28.3 29.5 112.2 GAAP Gross Profit 43.6 81.6 129.1 199.0 52.2 5
Slide 22: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA