CareDx, Inc. Q1 FY2025 earnings call

• First quarter revenue was $84.7 million, up 18% year-over-year with an adjusted EBITDA gain of $4.6 million. - Testing services grew across all 3 organs: heart, kidney and lung, with volume up 12% year-over-year. - Launched two expanded indications for AlloSure: AlloSure Heart for pediatric heart transplant patients under age seven and AlloSure Kidney for simultaneous pancreas kidney transplant patients. - Made progress with payers, submitting manuscripts from studies and expanding medical policy coverage. - Participated in the 45th Annual Meeting of the International Society of Heart and Lung Transplantation with 60 abstracts, including 19 oral talks, showcasing clinical data. - Began integrating Epic Aura to make it easier for healthcare providers to order testing services. - Added Jen Foley as Chief Product Officer to lead product strategy and expansion into hematology.

In the first quarter, CareDx reported quarterly revenue of $84.7 million. Testing Services revenue was $61.9 million for the quarter, up 15% year-over-year, contributing approximately 73.1% to total revenue. Patient and Digital Solutions revenue was approximately $12 million, up 24% year-over-year, contributing about 14.2% to total revenue. Lab Products revenue was $10.8 million, up 26% year-over-year, contributing roughly 12.7% to total revenue. Testing services volume was approximately 47,100 tests, up 12% from the prior year.

• Reiterated 2025 revenue guidance of $365 million to $375 million and adjusted EBITDA guidance of between $29 million and $33 million. - Long-range plan to achieve $500 million in revenue and 20% adjusted EBITDA in 2027. - Testing services expected to have mid-teens year-over-year volume growth, ASP of approximately $1,360 per test, with sequential growth by quarter: 5%-6% in Q2, 2%-3% in Q3, 5%-6% in Q4. - Patient and Digital Solutions and lab products revenue expected to grow in the mid-teens year-over-year. - Non-GAAP gross margin expected to be approximately 70% and operating expenses to be approximately $235 million for 2025.

• Forward-looking statements involve material risks and uncertainties that could cause actual results to differ materially from those anticipated, including risks related to coverage decisions, pricing, enrollment matters, and financial expectations. - Risks associated with the business, such as competition, market dynamics, and regulatory changes, which could impact financial performance.

Q: On transplant pharmacy and its impact on testing services revenue?

A: Synergy between patient and digital solutions and testing services business. Software products, pharmacy offering, etc., help unlock growth in Testing Services by capturing more patients on testing protocols and ensuring adherence.

Q: Competitive developments like OncoCyte?

A: Don't anticipate OncoCyte having impact on guidance. CareDx is market leader in transplant segment with over 25 years of participation in relevant conferences.