NASDAQ$GH

Guardant Health Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported a revenue increase of 22% year over year, driven by clinical volume growth of 35%.

Guardant Health reported a 22% increase in revenue for Q3 2023, driven by strong clinical volume growth. The company has raised its full year 2023 revenue guidance to $553 to $556 million.

  • Revenue of $143.0 million for the third quarter of 2023, an increase of 22% over the third quarter of 2022
  • Reported 43,900 tests to clinical customers and 7,500 tests to biopharmaceutical customers in the third quarter of 2023, representing increases of 35% and 11%, respectively, over the third quarter of 2022
  • Received regulatory approval in Japan for Guardant360 CDx as a companion diagnostic to ENHERTU for treatment of non-small cell lung cancer patients with HER2 mutations
  • Raises 2023 revenue guidance to $553 to 556 million

Headline financials

Total Revenue

$143M

Previous: $117M+21.8%
EPS (adj)

-$0.67

Previous: -$1.18+43.2%
Capital Expenditures

-$16.4M

Previous: -$67.5M+75.7%
Free Cash Flow

-$103M

Previous: -$229M+55.3%
Net Income

-$86.1M

Previous: -$162M+46.8%
Operating Income

-$114M

Previous: -$145M+21.5%
Gross Profit

$143M

Previous: $117M+21.8%
Cash & Equivalents

$457M

Previous: $158M+188.9%
Total Assets

$1.8B

Previous: $1.7B+5.6%
R&D Expense

$93.4M

No prior period
Stock-Based Comp

$21.8M

Previous: $20.6M+5.7%

Revenue & EPS history

Guardant Health · Revenue · Quarterly

$143M

Q3 2023+21.8%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Guardant Health · $133M total across 1 segment · Q3 2023

  • Oncology Revenue
    $133M+30.7%

Forward guidance

Guardant Health now expects full year 2023 revenue to be in the range of $553 to $556 million, representing growth of 23% to 24% compared to full year 2022. Guardant Health continues to expect full year 2023 operating expenses to be below full year 2022, driven by efficiency measures and continued leverage of its existing infrastructure, and free cash flow to be approximately negative $350 million in 2023.

Tailwinds

  • Full year 2023 revenue to be in the range of $553 to $556 million
  • Revenue growth of 23% to 24% compared to full year 2022
  • Full year 2023 operating expenses to be below full year 2022
  • Driven by efficiency measures
  • Continued leverage of its existing infrastructure

Headwinds

  • Free cash flow to be approximately negative $350 million in 2023
  • Net loss was $86.1 million for the third quarter of 2023
  • Gross margin was 60%, as compared to 66% for the corresponding prior year period
  • Development services and other revenue decreased by 37%
  • Adjusted EBITDA loss was $79.7 million for the third quarter of 2023

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 Q3 2023

Historical avgQ3 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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