GRAIL (GRAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $32 million, up 43% year-over-year, driven by strong Galleri test demand and development services, with over 215,000 tests sold to date.

• Net loss for Q2 2024 was $1.59 billion, primarily due to a $1.42 billion goodwill and intangible asset impairment.

• Completed spin-off from Illumina on June 24, 2024, becoming an independent public company listed on NASDAQ.

• Announced a corporate restructuring to extend cash runway into 2028, including a 30% headcount reduction and focus on core MCED initiatives.

• Focus remains on advancing Galleri through FDA approval and broad reimbursement, with key clinical studies (NHS-Galleri and PATHFINDER 2) completed or in follow-up.

Financial highlights

• Q2 2024 revenue was $32 million, up $9.6 million (43%) from Q2 2023; H1 2024 revenue was $58.7 million, up 40% year-over-year.

• Screening revenue for Q2 was $28.2 million, up 41% year-over-year; development services revenue was $3.8 million, up 59%.

• Adjusted gross profit for Q2 2024 was $16 million, up 66% year-over-year; adjusted EBITDA was -$139.4 million, a 2% higher loss.

• Cash and cash equivalents totaled $958.8 million as of June 30, 2024.

• Net loss per share for Q2 2024 was $(51.06), compared to $(6.22) in Q2 2023.

Outlook and guidance

• Restructuring plan to reduce headcount by 30%, expected to yield $120 million in annual cost savings and extend cash runway into 2028.

• 2024 US Galleri revenue expected to grow 30%-50% over 2023, in line with prior guidance.

• 2024 cash burn estimate reduced from $250 million to $220 million for H2; 2025 full-year burn expected at $325 million.

• PMA submission for Galleri planned for H1 2026, with key clinical data from NHS-Galleri and PATHFINDER 2.

• Galleri revenue growth expected to moderate in 2025 and beyond until broad reimbursement is achieved.