Guardant Health (GH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 29% year-over-year to $177.2 million, driven by strong precision oncology and biopharma test volumes, higher Guardant360 ASP, and increased reimbursement rates.

• FDA approved and launched Shield, the first blood-based colorectal cancer (CRC) screening test, now commercially available in the U.S. with Medicare coverage for 45 million eligible individuals.

• Major upgrades to Guardant360 and TissueNext platforms expanded genomic profiling and clinical utility, supporting market leadership.

• Published pivotal ECLIPSE and COSMOS studies, supporting reimbursement and adoption of MRD and CRC surveillance products.

• Cash, cash equivalents, and marketable securities totaled $1.0–$1.035 billion as of June 30, 2024, supporting ongoing operations and growth initiatives.

Financial highlights

• Precision oncology revenue increased 33% to $166.5 million; biopharma revenue up 45% to $36.2 million; development services and other revenue was $10.7 million, down from $11.9 million.

• Gross margin for Q2 2024: 59% (GAAP), 60% (non-GAAP), and 62% (non-GAAP, excluding screening); gross profit was $104.8 million (GAAP).

• Net loss for Q2 2024 was $102.6 million ($0.84/share GAAP), mainly due to higher costs and unrealized investment losses; non-GAAP net loss improved to $58.5 million ($0.48/share).

• Adjusted EBITDA loss improved to $61.9 million from $85.2 million year-over-year.

• Free cash flow for Q2 was negative $99.1 million, a slight improvement year-over-year.

Outlook and guidance

• 2024 revenue guidance raised to $690–$700 million, representing 22%–24% growth over 2023.

• Non-GAAP gross margin (excluding screening) expected at 61%–63%; non-GAAP operating expenses projected at $720–$730 million.

• Free cash flow for 2024 projected at $(275)–$(285) million, an improvement of $60–$70 million over 2023.

• Clinical volume growth for 2024 expected at approximately 20%.

• Biopharma revenue growth expectation raised to high teens for the full year.