Guardant Health, Inc. Q1 FY2025 earnings call

• Product upgrades and launches: Started the year with strong momentum across the portfolio, fueled by ground - breaking product upgrades in 2024 leveraging the smart liquid biopsy platform and the launch of Shield. - Oncology business highlights: Q1 was another quarter of strong oncology performance with revenue growth, volume growth, and Guardant360 ASP improvement. Reveal had positive gross margin for the first time and had a new breast cancer publication. - Biopharma & Data business highlights: Strong quarter with increasing biopharma partnerships and growing mix of volume leveraging methylation analysis from the smart liquid biopsy platform. - Screening business highlights: Continued strong traction for Shield in the second full quarter of commercial launch, achieved positive gross margin, received coverage from the VA Community Care Network, and was selected for the National Cancer Institute’s Vanguard study. Also presented validation performance data from Shield MCD at AACR.

Guardant Health's Q1 2025 revenue was $203 million, growing 21% year - over - year. Oncology business: Q1 revenue was $151 million, an increase of 20% year - over - year, with oncology volumes increasing 25% year - over - year to approximately 59,000 tests. Oncology revenue contributed approximately 74.38% to total revenue. Biopharma & Data business: Q1 revenue was $45.4 million, an increase of 21% year - over - year, contributing approximately 22.36% to total revenue. Screening business: Q1 revenue was $5.7 million, contributing approximately 2.81% to total revenue. Licensing & Other business: Q1 revenue was $1.9 million, contributing approximately 0.93% to total revenue.

• Raised full - year 2025 revenue to the range of $880 million to $890 million, representing growth of approximately 19% to 20% compared to 2024. - Expected oncology revenue to grow approximately 18% year - over - year in 2025, with total oncology volume expected to grow greater than 25%. - Biopharma & Data revenue expected to have low double - digit growth. - Raised full - year 2025 Shield revenue guidance forecast to $40 million to $45 million from prior $25 million to $30 million. - Confident of delivering full - year non - GAAP gross margins in the range of 62% to 63%. - Expect 2025 non - GAAP operating expenses to be in the range of $830 million to $840 million. - Expect full - year 2025 free cash flow burn to be in the range of $225 million to $235 million, an improvement compared to 2024.

• Monitored tariff news closely, but based on current knowledge, any tariff impact is likely to be minimal.

Q: Hey, guys. Congrats on the quarter. Thanks for taking the questions. Maybe the first one for you, Helmy. You’ve had Guardant360 in the market now for I think this is year number 11. And yet you are raising the oncology volume to accelerate to over 25% growth. As this is accelerating, I was wondering if you could help us perhaps rank order what these opportunities are. To what extent is this epic? To what extent is this potentially competitive takeaways? And then to what extent could this be some boost from attachment to the Guardant360 Tissue A: Yes. Thanks for the question, Mark. We are very pleased in terms of the progress that we are making. And I was looking at where we were with the 360 over the last couple of years. And with the recent smart liquid biopsy upgrade, we are actually seeing some of the strongest growth we’ve seen in a number of years. This is the third quarter of sequential sort of accelerating growth for that product. And so we really know we’ve achieved product market fit with respect to the sort of liquid biopsy marketing therapy selection. So that’s going to continue to be a really nice growth driver. Obviously, Reveal is growing nicely. We are seeing accelerating growth there for the last two quarters as well, and we are going to really lean into that now that we are gross margin positive on that product. And then last but not least, this massive upgrade we’ve done on tissue where we are really taking everything that has worked so well and liquid for us, especially last few quarters, and essentially putting all of that into the tissue product. And then everything else you mentioned that increases depth, that like simplifies the ordering experience in terms of EMR and digital and so on is sort of gravy on top of all of that. So it’s a really nice setup in 2025 for us, and we are really excited for this next chapter.

Q: Hey, thanks. Maybe just sticking with the guidance theme, there still seems like a lot that’s – you’re not fully baking in here. But can you give us a sense, G360 ASPs, you guided flat previously, what you’re baking in for G360 tissue next? And then Reveal adoption in the surveillance setting, where do you ultimately think you end the year on test per patient A: Yes. I can answer the ASP. On Guardant360, at the start of the year, we were guiding to $3,000. We saw a nice uplift in Q1, mainly coming again from Medicare advantage and commercial reimbursement being stronger than expected, and we’re in this new range now of $3,000 to $3,100. So we expect that to continue for the remainder of the year. And for TissueNext, current ASP is around $1,700, $1,800. And so we’re effectively assuming a similar rate for the remainder of the year. And we got a nice uplift at the start of the year for tissue with the Medicare rate going from $3,140 to $3,500.

Q: Hey, guys. Thank you for taking my questions. AmirAli, what are the potential drivers or catalysts to drive upside or downside to your Shield volume guidance of 52,000 to 58,000?

A: So in terms of upside, like, if we continue to outperform the productivity of our reps in the field, that could be upside of what we are assuming right now. The other upside could be the inclusion in the ACS guidelines, any kind of guideline inclusion definitely has some kind of impact on the commercial adoption of the test. And although we are very optimistic about the timing for that guideline inclusion for some time this year since we don’t know when, we are not assuming that in our volume guidance. The other potential upside could be on this Abu Dhabi contract. It’s kind of a sizable contract, we’re just assuming there’s small fraction of it in our numbers. And lastly is, as we talked about it in our prepared remarks, there are additional positive gross profit that we are getting because of this sooner than expected ADLT pricing. We are reinvesting it back in building more commercial infrastructure, a lot more kind of reps in the field. We are just going through that process right now. It would help us to have more reps deployed very late this year. It’s mainly a 2026 kind of upside for us, but if we can bring the reps and deploy them to the field sooner than the current plan, maybe there would be some upside there too. Downside, I think, we'll see. So it's hard to say.