CareDx (CDNA) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $82.9 million, up 23% year-over-year, driven by 16% growth in testing services volume and higher average selling prices.

• Achieved positive adjusted EBITDA of $6.9 million and non-GAAP net income of $8.0 million, a turnaround from prior year losses.

• Ended the quarter with $241 million in cash and no debt, reflecting a robust balance sheet and strong cash flow from operations of $12.5 million.

• Raised full-year 2024 revenue guidance to $327–$331 million and adjusted EBITDA to $18–$22 million, with a three-year plan targeting $500 million revenue and 20% adjusted EBITDA by 2027.

• CMS reaffirmed Medicare coverage for key testing products; DOJ and SEC investigations closed with no findings of wrongdoing.

Financial highlights

• Total revenue: $82.9 million (+23% year-over-year); Testing services revenue: $60.8 million (+27%); Patient and digital solutions revenue: $11.9 million (+20%); Product revenue: $10.2 million (+7%).

• Testing services volume reached 44,600 tests in Q3 2024, up 16% year-over-year.

• Non-GAAP gross margin improved to 69% in Q3 2024, up 240 basis points year-over-year; GAAP gross margin was 67%.

• Adjusted EBITDA was $6.9 million, compared to a $10.9 million loss in Q3 2023.

• GAAP net loss for Q3 2024 was $7.4 million, improved from $23.5 million in Q3 2023; non-GAAP net income was $8.0 million.

Outlook and guidance

• Raised 2024 revenue guidance to $327–$331 million and adjusted EBITDA to $18–$22 million; non-GAAP gross margin for 2024 expected at approximately 69%.

• Implied Q4 2024 revenue growth of 30% year-over-year; 2025 growth expected in the low teens, accelerating to high teens by 2027.

• Sufficient liquidity is anticipated for at least the next 12 months, with ongoing investments in R&D and commercial expansion.

• Excluding $14 million in one-time 2024 revenue, 2025 growth rate anticipated in the high teens.