Guardian Pharmacy Services (GRDN) Q3 2024 earnings summary

Executive summary

• Revenue grew 20% year-over-year to $314.4 million in Q3 2024, driven by organic growth and acquisitions, with resident count increasing 12% to 180,000.

• Adjusted EBITDA rose 20% year-over-year to $23.0 million, with margin steady at 7.3%.

• Net loss of $105.8 million in Q3, primarily due to $122.4 million in non-cash, non-recurring share-based compensation from the IPO and corporate reorganization.

• Completed IPO and Corporate Reorganization in September 2024, raising $119.8 million in net proceeds and issuing 9.2 million Class A shares at $14.00 per share.

• Company now serves 180,000 residents in 6,800 LTCFs across 37 states, focusing on assisted living and behavioral health.

Financial highlights

• Q3 2024 revenue: $314.4 million (+20% year-over-year); nine-month revenue: $889.8 million (+16% year-over-year).

• Gross profit for Q3: $60.9 million, with gross margin at 19.4%.

• Adjusted EBITDA: $23.0 million in Q3 (+20% year-over-year); $64.9 million for nine months (+15% year-over-year).

• Q3 net loss: $105.8 million, mainly due to $122.4 million in share-based compensation; diluted EPS for Q3 and nine months: $(2.00).

• Ended the quarter with $37.2 million in cash and minimal net debt.

Outlook and guidance

• Full-year 2024 revenue guidance: $1.205–$1.215 billion; adjusted EBITDA expected between $86.5–$87.0 million.

• Management expects continued growth through organic expansion and acquisitions, leveraging demographic trends and increased demand in assisted living and behavioral health.

• Sufficient liquidity is anticipated for at least the next 12 months, with cash, expected operations, and credit facility availability.