Guardant Health (GH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 34% year-over-year to $191.5 million, driven by strong precision oncology and biopharma test volumes, higher Guardant360 ASP, and the successful Shield CRC screening launch with FDA approval and Medicare coverage.

• Precision oncology revenue rose 35% to $180.6 million, with clinical test volume reaching 53,100 (up 21%) and biopharma volume at 10,500 (up 40%).

• Shield test launched commercially in August 2024, received favorable Medicare pricing of $920, and saw strong early demand and high physician adoption.

• Guardant360 ASP reached $3,000 in Q3 2024, achieving the long-term target ahead of schedule.

• Cash, cash equivalents, and marketable debt securities totaled $1.0 billion as of September 30, 2024.

Financial highlights

• Q3 2024 gross margin was 61% GAAP and 63% non-GAAP; non-GAAP gross margin excluding screening was 65%.

• Net loss for Q3 2024 was $107.8 million ($0.88/share), compared to $86.1 million ($0.73/share) prior year; non-GAAP net loss improved to $55.0 million.

• Adjusted EBITDA loss improved to $56.2 million, down from $79.7 million prior year.

• Free cash flow was negative $55.3 million in Q3 2024, an improvement of $24.9 million year-over-year.

• Operating expenses in Q3 2024: R&D $87.3M, Sales & Marketing $97.9M, G&A $49.1M.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $720–$725 million, representing 28%–29% growth.

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

• Free cash flow for 2024 expected to be negative $265–$275 million, an improvement of $70–$80 million over 2023.

• Oncology clinical volume growth expected to accelerate above 20% in 2025, driven by Guardant360, Reveal, and TissueNext.

• Therapy selection business expected to deliver positive free cash flow for 2024.