• Q4 2024 Revenue: $202 million, a 30% year-over-year increase.
• Full Year 2024 Revenue: $739 million, a 31% year-over-year increase.
• Clinical Revenue Growth: 34% year-over-year.
• Oncology Clinical Volumes: Increased 24% in Q4 and 20% for the full year 2024.
• Garden 360 ASP: Achieved $3000, ahead of the 2028 target.
• Medicare Reimbursement for Reveal: $1,644 per test.
• Biopharma Revenue Growth: 31% year-over-year to $145 million.
• Non-GAAP Gross Margin: 63% in Q4 2024, up from 61% in Q4 2023.
• Non-GAAP Operating Expenses: $757 million for the full year 2024, a 4% increase.
• Adjusted EBITDA: Loss of $258 million for the full year 2024, an improvement of $86 million from 2023.
• Free Cash Flow Burn: $275 million for the full year 2024, an improvement of $70 million from 2023.
• Cash and Equivalents: Approximately $944 million at year-end 2024.
• Convertible Debt Exchange: $600 million extended to 2031 with a 1.25% annual coupon.

• Warning! GuruFocus has detected 8 Warning Signs with GH.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Guardant Health Inc (NASDAQ:GH) reported a 30% year-over-year revenue growth in Q4 2024, reaching $202 million, with full-year revenue totaling $739 million, a 31% increase.
• The company achieved significant improvements in ASP for its Guardant 360 test, reaching $3000, four years ahead of its target, due to reimbursement wins.
• Guardant Health Inc (NASDAQ:GH) received FDA approval and Medicare coverage for its Shield blood test for CRC, opening a large market for early cancer detection.
• The company successfully reduced costs for its Reveal test by over 50%, which will save tens of millions of dollars in 2025.
• Guardant Health Inc (NASDAQ:GH) expanded its biopharma partnerships to over 180, contributing to a 31% revenue growth in its biopharma segment in 2024.

Negative Points

• Despite strong demand, Guardant Health Inc (NASDAQ:GH) managed Reveal volumes ahead of Medicare reimbursement to manage cash burden, indicating potential limitations in meeting market demand.
• The company faces challenges in expanding commercial payer coverage for its Guardant 360 test, as not all national payers cover every test run.
• There is uncertainty regarding the timing of ADLT status designation for Shield, which affects the ASP guidance.
• The company anticipates a back-end loaded volume growth for Shield in 2025 due to the time required to ramp up the productivity of newly hired sales reps.
• Guardant Health Inc (NASDAQ:GH) is still in early conversations with commercial payers for Shield, indicating potential delays in broader market adoption outside of Medicare.

Q & A Highlights

Q: Could you discuss the Salesforce expansion for Shield and the factors contributing to the $25 to $30 million guidance? Also, how do you expect the adoption of Reveal to progress given the NCCN guidelines? A: We launched Shield with 50 reps and increased to 100 by the end of 2024. Most new hires came late in the year, so productivity will ramp up in 2025. We plan to have about 150 reps by the end of 2025. Regarding Reveal, we are encouraged by the NCCN guidelines recognizing the value of ctDNA testing, and we expect adoption to grow as clinical practice evolves. (Respondent: Unidentified Executive)

Q: Are there any preliminary discussions with commercial payers about Shield, and what is the strategy for engaging them? A: We are in early conversations with commercial payers, mainly through advisory boards to gather feedback. We plan to ramp up engagements after Shield is included in guidelines, potentially in 2025. (Respondent: Unidentified Executive)

Q: Can you explain the expected ASP movement for Shield and whether Abu Dhabi volumes are included in the guidance? A: We are pleased with the Q4 ASP but are cautious about projecting ASPs for the first full year. The guidance does not include ADLT designation impacts. Abu Dhabi volumes are not expected to dilute ASP, and only a fraction of the 10,000 expected tests are included in the guidance. (Respondent: Unidentified Executive)

Q: What are the expectations for Reveal's volume growth and additional indications like breast cancer? A: We expect Reveal's volume to accelerate, especially in the second half of the year. We submitted data for breast cancer and monitoring, and we anticipate potential indication expansion in the second half of the year. (Respondent: Unidentified Executive)

Q: How is the G360 business performing, and what are the growth drivers? A: The G360 business is seeing strong growth, driven by greater depth from existing accounts and increased utilization. The upgraded G360 liquid product is resonating well with physicians, and we expect continued growth as we roll out new applications. (Respondent: Unidentified Executive)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.