NASDAQ$GH

Guardant Health Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported a revenue increase of 34% year over year, driven by a 45% growth in clinical volume.

Guardant Health reported a strong start to 2023 with a 34% increase in revenue compared to Q1 2022, driven by significant growth in clinical testing volume. The company has raised its full-year revenue guidance and is making strides in CRC screening with its Shield test.

  • Revenue increased by 34% year over year, reaching $128.7 million.
  • Clinical test volume increased by 45% and biopharmaceutical test volume increased by 21%.
  • Received Medicare coverage for Guardant Response, expanding coverage across Therapy Selection and MRD product portfolios.
  • Filed PMA application for Shield blood-based CRC screening, with FDA review underway.

Headline financials

Total Revenue

$129M

Previous: $96.1M+33.9%
EPS (adj)

-$1.06

Previous: -$0.91-16.5%
Capital Expenditures

-$7.52M

Previous: -$22.7M+66.9%
Free Cash Flow

-$141M

Previous: -$146M+3.3%
Net Income

-$134M

Previous: -$123M-8.4%
Operating Income

-$134M

Previous: -$123M-8.7%
Gross Profit

$129M

Previous: $96.1M+33.9%
Cash & Equivalents

$224M

Previous: $574M-61.0%
Total Assets

$1.51B

Previous: $2.13B-29.0%
Stock-Based Comp

$22.3M

Previous: $24.8M-10.2%

Revenue & EPS history

Guardant Health · Revenue · Quarterly

$129M

Q1 2023+33.9%vs Q1 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Guardant Health · $113M total across 1 segment · Q1 2023

  • Oncology Revenue
    $113M+34.8%

Forward guidance

Guardant Health expects full year 2023 revenue to be in the range of $535 million to $545 million. The company continues to expect full year 2023 operating expenses to be below full year 2022, and free cash outflow to be approximately $350 million in 2023.

Tailwinds

  • Full year 2023 revenue expected to be in the range of $535 million to $545 million.
  • Revenue guidance represents growth of 19% to 21% compared to full year 2022.
  • Operating expenses expected to be below full year 2022.
  • Efficiency measures and continued leverage of existing infrastructure.
  • Focus on driving operating efficiency and scale.

Headwinds

  • Free cash outflow to be approximately $350 million in 2023.
  • Gross margin decreased due to change in mix between clinical and biopharma revenue.
  • Reduction in gross margin due to increased proportion of volume coming from Reveal, TissueNext and Response.
  • One-time cost incurred related to partnership agreements.
  • Inclusion of the cost of processing Shield LDT samples as part of screening market development activities.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+3.8%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+3.9%

Avg return

30 days after

60%

18 / 30 earnings

Positive

+41.3%

Q4 2018

Best reaction

-30.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.3%+6.6%+36.1%
Q4 2025-3.0%-10.4%-19.9%
Q3 2025+28.5%+35.8%+50.0%
Q1 2025+3.5%-11.2%-14.0%
Q4 2024-9.6%-8.9%-2.7%
Q3 2024+21.6%+24.8%+56.8%
Q2 2024-5.9%-5.3%-26.2%
Q1 2024+20.0%+32.7%+53.8%
Q4 2023-14.3%-13.8%-23.9%
Q3 2023-8.5%-24.7%-10.2%
Q2 2023+4.6%+1.9%-3.1%
Q1 2023+17.2%+12.1%+38.5%
Q4 2022+4.4%+11.7%-12.6%
Q3 2022+3.3%-3.1%+17.5%
Q2 2022+1.6%-6.0%+2.0%
Q1 2022-30.0%-44.3%-32.3%
Q4 2021+6.0%+7.0%-4.3%
Q3 2021-3.8%-5.8%-20.8%
Q2 2021+0.2%-7.7%+15.7%
Q1 2021-3.1%-14.0%-15.8%
Q4 2020-6.7%-5.0%-15.3%
Q3 2020-0.4%-1.1%+9.0%
Q2 2020+0.6%-4.0%+6.8%
Q1 2020+9.0%+19.6%+2.9%
Q4 2019-14.7%-2.1%-25.9%
Q3 2019+11.2%+13.8%+14.4%
Q2 2019+25.8%+18.2%-5.2%
Q1 2019+17.4%+12.0%+40.3%
Q4 2018+41.3%+46.6%+7.9%
Q3 2018-6.7%+3.1%-2.7%
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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