Guardant Health, Inc. Q3 FY2024 earnings call

• Launched Shield in asymptomatic cancer screening on August 1, with early positive reception and strong demand.
• Case study illustrated Guardant360's impact in providing lifesaving info for patients.
• Total revenue grew 34% to $191.5 million, driven by precision oncology and biopharma.
• Guardant360 ASP reached $3,000 in Q3 2024, ahead of the 2028 target.
• Biopharma samples grew 40% YOY, with smart liquid biopsy over 50% of samples.
• Reveal has an extensive pipeline for establishing validity and utility, with submissions for publications in 2025.

Total revenue grew 34% to a record $191.5 million. Precision oncology revenue increased 35% to $180.6 million, with clinical test volume growing 21% YOY to 53,100 tests. Biopharma revenue grew 34% YOY to $39.4 million, with samples up 40% YOY. Shield was launched in August, with early positive reception. Guardant360 ASP reached $3,000 in Q3 2024, ahead of target. Reveal continues to grow with an extensive pipeline.

• Revised full-year 2024 revenue to $720-725 million (28-29% growth from 2023).
• Expect biopharma revenue growth in the high-20s for 2024.
• Free cash flow for 2024 expected to be in the range of negative $265 million to $275 million.
• Anticipate oncology clinical volume growth above 20% in 2025, driven by Guardant360, Reveal, and TissueNext.

• Potential competition for Shield in the future.
• Regulatory hurdles for Reveal reimbursement, including possible delays in CRC surveillance coverage.
• Structural market issues in Japan affecting Guardant360 adoption due to reimbursement policies.

Q: Bill Bonello asked about Shield's sales and marketing efforts and reimbursement without USPSTF recommendations.

A: AmirAli Talasaz stated commitment to sales and marketing spend within budget, and Shield has a deep market even without USPSTF.

Q: Mark Massaro asked about Shield metrics and upside to Analyst Day targets.

A: AmirAli Talasaz said Shield volume post-launch is ahead of expectations, and Mike Bell noted Medicare pricing and market dynamics support upside to targets.

Q: Subbu Nambi inquired about therapy selection TAM and repeat ordering for Guardant360.

A: Helmy Eltoukhy discussed growth in therapy selection due to repeat testing opportunities and adaptive management of patients.

Q: Tejas Savant asked about clinical volume acceleration in 2025 and Shield lab setup lessons.

A: Mike Bell said clinical volume will accelerate above 20% in 2025, and AmirAli Talasaz discussed learnings from Shield lab setup and early ordering process.