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Sep 30, 2024

Guardant Health Q3 2024 Earnings Report

Reported a revenue increase of 34% driven by clinical and biopharma volume and Guardant360 ASP tailwinds.

Key Takeaways

Guardant Health reported a 34% increase in revenue for Q3 2024, reaching $191.5 million, driven by strong clinical and biopharma volume and Guardant360 ASP tailwinds. The company raised its 2024 annual revenue guidance to $720 to $725 million and improved its free cash flow to $(55) million. Shield received favorable Medicare pricing of $920.

Revenue increased by 34% to $191.5 million compared to Q3 2023.

Clinical tests (excluding Shield) increased by 21% and biopharma tests increased by 40% compared to Q3 2023.

Guardant360 ASP exceeded $3,000.

2024 annual revenue guidance raised to $720 to $725 million, representing 28% to 29% growth.

Total Revenue
$191M
Previous year: $143M
+33.9%
EPS
-$0.45
Previous year: -$0.67
-32.8%
Gross Profit
$117M
Previous year: $85.4M
+37.0%
Cash and Equivalents
$688M
Previous year: $457M
+50.5%
Free Cash Flow
-$55.3M
Previous year: -$80.2M
-31.0%
Total Assets
$1.54B
Previous year: $1.8B
-14.4%

Guardant Health

Guardant Health

Guardant Health Revenue by Segment

Forward Guidance

Guardant Health now expects full year 2024 revenue to be in the range of $720 to $725 million, representing growth of 28% to 29% compared to full year 2023. Guardant Health continues to expect full year 2024 non-GAAP gross margin excluding screening to be in the range of 61% to 63% and total non-GAAP operating expenses to be in the range of $720 to $730 million, representing a flat to 1% decrease compared to 2023. Guardant Health now expects free cash flow to be in the range of $(265) to $(275) million in 2024, representing an improvement of $70 million to $80 million compared to 2023.

Positive Outlook

  • Revenue growth of 28% to 29% expected for full year 2024.
  • Non-GAAP gross margin excluding screening expected to be in the range of 61% to 63%.
  • Total non-GAAP operating expenses expected to decrease flat to 1% compared to 2023.
  • Free cash flow expected to improve by $70 million to $80 million compared to 2023.
  • Revenue expected between $720 to $725 million.

Challenges Ahead

  • Free cash flow to be in the range of $(265) to $(275) million in 2024.
  • Non-GAAP operating expenses expected to be in the range of $720 to $730 million.
  • Still expecting a loss on free cash flow.
  • Still expecting a loss on Non-GAAP net income.
  • No positive EPS guidance given.