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.

• Cash flow from operations was $12.5 million, with $241 million in cash and no debt at quarter-end.

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

• Launched next-gen Assign software for HLA typing, expanded executive team, and continued commercial expansion.

Financial highlights

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

• Adjusted EBITDA: $6.9 million (vs. $10.9 million loss in Q3 2023); Non-GAAP net income: $8.0 million; GAAP net loss: $7.4 million (improved from $23.5 million loss in Q3 2023).

• Non-GAAP gross margin: 69% (up 240 bps year-over-year); testing services gross margin: 79%.

• Operating expenses: $52.2 million, down $5.5 million year-over-year and $3 million sequentially.

• Cash, cash equivalents, and marketable securities: $241 million; no debt.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $327–$331 million (previously $320–$328 million), with adjusted EBITDA expected between $18–$22 million (previously $9–$15 million).

• Non-GAAP gross margin for 2024 guided to approximately 69%.

• Targeting 15% CAGR over the next three years, accelerating to high teens by 2027.

• Sufficient liquidity anticipated for at least the next 12 months.

• Q4 guidance incorporates a 1% volume impact from Hurricane Milton and expects blended ASP of $1,335 per test.