Guardant Health, Inc. (GH) Bundle
A Brief History of Guardant Health, Inc.
Company Overview
Guardant Health, Inc. (NASDAQ: GH) is a leading precision oncology company focused on transforming cancer care through its innovative genomic testing solutions. Established in 2012, the company has developed tests that help clinicians and biopharmaceutical companies make informed decisions regarding cancer treatment.
Financial Performance
As of June 30, 2024, Guardant Health reported total revenue of $177.2 million for the second quarter, marking a 29% increase from $137.2 million in the same period of 2023. For the first half of 2024, total revenue was $345.7 million, up 30% from $265.9 million in the first half of 2023.
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $177.2 million | $137.2 million | 29% |
| Net Loss | $(102.6) million | $(72.8) million | 40% |
| Precision Oncology Testing Revenue | $166.5 million | $125.2 million | 33% |
Key Revenue Sources
The majority of Guardant's revenue comes from precision oncology testing. For Q2 2024, revenue from clinical customers reached $130.3 million, while revenue from biopharmaceutical customers was $36.2 million, reflecting growth rates of 30% and 45% respectively year-over-year.
Cost Structure
Guardant Health's total cost of revenue for Q2 2024 was $72.4 million, an increase of 34% compared to $53.8 million in Q2 2023. The costs associated with precision oncology testing contributed $65.7 million to this total, up from $49.4 million in the prior year, driven by increased sample volumes and material costs.
| Cost Item | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Cost of Revenue | $72.4 million | $53.8 million | 34% |
| Cost of Precision Oncology Testing | $65.7 million | $49.4 million | 33% |
| Cost of Development Services | $6.7 million | $4.5 million | 49% |
Operating Expenses
Operating expenses for Q2 2024 totaled $277.9 million, an increase from $256.8 million in Q2 2023. The largest components included:
| Expense Type | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $83.1 million | $90.4 million | (8)% |
| Sales and Marketing | $81.9 million | $71.0 million | 15% |
| General and Administrative | $40.5 million | $41.5 million | (3)% |
Stock Performance
As of June 30, 2024, Guardant Health's stock was trading at approximately $8.30 per share, reflecting a decline from its price of $9.00 per share at the same time in 2023. The company has faced challenges in maintaining stock price due to ongoing operational losses.
Accumulated Deficit
As of June 30, 2024, Guardant Health reported an accumulated deficit of $2.4 billion, which reflects the cumulative losses since the company's inception.
Future Outlook
Guardant Health continues to invest in research and development to enhance its product offerings and expand its market presence. The company aims to leverage its advanced genomic testing technologies to drive growth in both clinical and biopharmaceutical sectors.
A Who Owns Guardant Health, Inc. (GH)
Major Shareholders
As of June 30, 2024, the ownership structure of Guardant Health, Inc. (GH) is comprised of both institutional and individual investors. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership (%) | Number of Shares |
|---|---|---|
| Vanguard Group Inc. | 10.5% | 12,927,504 |
| BlackRock Inc. | 9.8% | 11,855,472 |
| Fidelity Investments | 8.2% | 10,031,536 |
| State Street Corporation | 7.5% | 9,122,033 |
| Wellington Management Co. LLP | 6.9% | 8,435,120 |
| Insider Holdings (Executives and Directors) | 5.3% | 6,500,000 |
| Others (Retail Investors) | 51.8% | 63,252,000 |
Recent Capital Raises
In 2023, Guardant Health raised significant capital through public offerings. Details include:
- May 2023: Issued 14,375,000 shares at $28.00 per share, netting approximately $381.4 million after costs.
- December 2023: Issued 3,387,446 shares at $26.77 per share, netting approximately $90.6 million after costs.
Financial Performance Overview
For the three months ended June 30, 2024, Guardant Health reported:
- Total Revenue: $177.2 million, a 29% increase year-over-year.
- Net Loss: $102.6 million, compared to a net loss of $72.8 million for the same period in 2023.
- Cash, Cash Equivalents, and Restricted Cash: Approximately $1.0 billion as of June 30, 2024.
Stock Performance
The stock price of Guardant Health, Inc. (GH) has fluctuated significantly over the past year. As of June 30, 2024, the stock was trading at approximately $24.00 per share.
Future Outlook
Guardant Health is focused on expanding its precision oncology testing services, with anticipated growth in testing volumes and increased reimbursement rates. The company expects to continue incurring operational losses in the near future as it invests in clinical studies and product development.
Ownership Summary
The total shares outstanding for Guardant Health, Inc. as of June 30, 2024, is approximately 122.97 million. The table below summarizes the equity structure:
| Equity Component | Amount (in thousands) |
|---|---|
| Total Shares Outstanding | 122,970 |
| Common Stock | $1 |
| Additional Paid-in Capital | $2,363,501 |
| Accumulated Other Comprehensive Loss | $(5,640) |
| Accumulated Deficit | $(2,359,475) |
| Total Stockholders’ Equity (Deficit) | $(1,613) |
Guardant Health's ownership landscape reflects a significant institutional investment, indicating confidence in the company's future in the precision oncology space.
Guardant Health, Inc. (GH) Mission Statement
Mission Statement Overview
As of 2024, Guardant Health, Inc. continues to emphasize its mission to transform cancer care through its innovative precision oncology testing solutions. The company aims to provide actionable insights that enhance treatment decisions for patients, ultimately striving to improve outcomes in cancer management.
Key Financial Metrics
In line with its mission, Guardant Health has demonstrated significant growth in its financial performance. The following table summarizes essential financial metrics for the second quarter of 2024:
| Metric | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $177.2 million | $137.2 million | $40.1 million | 29% |
| Precision Oncology Testing Revenue | $166.5 million | $125.2 million | $41.3 million | 33% |
| Net Loss | $(102.6 million) | $(72.8 million) | $(29.8 million) | 41% |
| Cash, Cash Equivalents, and Restricted Cash | $1.0 billion | N/A | N/A | N/A |
Operational Highlights
Guardant Health reported a total of approximately 49,400 clinical tests conducted in Q2 2024, an increase from approximately 43,500 tests in Q2 2023. This growth was driven by heightened demand for its Guardant360 LDT test, which saw an increased Medicare reimbursement rate to $5,000 effective January 1, 2024.
Research and Development Investments
The commitment to innovation is reflected in the company's research and development expenses, which were reported as follows:
| Expense Category | Q2 2024 | Q2 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | $83.1 million | $90.4 million | $(7.3 million) | (8%) |
| Sales and Marketing | $81.9 million | $71.0 million | $10.9 million | 15% |
| General and Administrative | $40.5 million | $41.5 million | $(1.0 million) | (3%) |
Future Outlook
Looking forward, Guardant Health is poised to expand its market presence and enhance its product offerings. The company’s financial strategy includes a focus on increasing its operational capacity and continuing to drive the adoption of its precision oncology solutions.
Conclusion of Financial Performance
The financial results and operational metrics underscore Guardant Health's commitment to its mission in the evolving landscape of cancer care. The company remains focused on leveraging its innovative technologies to deliver impactful solutions for patients and healthcare providers alike.
How Guardant Health, Inc. (GH) Works
Company Overview
Guardant Health, Inc. (GH) operates in the precision oncology sector, focusing on developing blood tests for cancer detection and treatment management. Their primary product is the Guardant360 test, which analyzes circulating tumor DNA (ctDNA) from blood samples to provide insights into the genetic makeup of tumors.
Financial Performance
As of June 30, 2024, Guardant Health reported total revenue of $177.2 million for the second quarter, representing a 29% increase compared to $137.2 million in the same period in 2023. For the six months ended June 30, 2024, total revenue was $345.7 million, up from $265.9 million in 2023, marking a 30% growth.
| Metric | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $177.2 million | $137.2 million | 29% |
| Precision Oncology Testing Revenue | $166.5 million | $125.2 million | 33% |
| Development Services Revenue | $10.7 million | $11.9 million | -10% |
Cost Structure
Guardant's cost of revenue for the three months ended June 30, 2024, was $72.4 million, a 34% increase from $53.8 million in Q2 2023. The cost of precision oncology testing alone was $65.7 million in Q2 2024, up from $49.4 million in Q2 2023, reflecting a 33% increase.
| Cost Component | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Total Cost of Revenue | $72.4 million | $53.8 million | 34% |
| Cost of Precision Oncology Testing | $65.7 million | $49.4 million | 33% |
| Cost of Development Services | $6.7 million | $4.5 million | 49% |
Operating Expenses
Operating expenses totaled $277.9 million for Q2 2024, compared to $256.8 million in Q2 2023, an increase of 8%. Key components include:
- Research and Development: $83.1 million in Q2 2024, down from $90.4 million in Q2 2023.
- Sales and Marketing: $81.9 million in Q2 2024, an increase from $71.0 million in Q2 2023.
- General and Administrative: $40.5 million in Q2 2024, down from $41.5 million in Q2 2023.
| Expense Category | Q2 2024 | Q2 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $83.1 million | $90.4 million | -8% |
| Sales and Marketing | $81.9 million | $71.0 million | 15% |
| General and Administrative | $40.5 million | $41.5 million | -3% |
Net Loss
Guardant Health reported a net loss of $102.6 million for Q2 2024, compared to a net loss of $72.8 million in Q2 2023. The net loss for the six months ended June 30, 2024, was $217.6 million, slightly up from $206.3 million in the same period last year.
| Metric | Q2 2024 | Q2 2023 | Six Months Ended Jun 30, 2024 | Six Months Ended Jun 30, 2023 |
|---|---|---|---|---|
| Net Loss | ($102.6 million) | ($72.8 million) | ($217.6 million) | ($206.3 million) | Net Loss per Share | ($0.84) | ($0.67) | ($1.78) | ($1.95) |
Cash Position
As of June 30, 2024, Guardant Health had approximately $1.0 billion in cash, cash equivalents, and restricted cash, which provides a solid liquidity position to fund ongoing operations and future growth initiatives.
Market Dynamics
Guardant Health's revenue is increasingly driven by the volume of testing and reimbursement rates. The company reported an increase in the number of tests conducted, with approximately 49,400 tests for clinical customers in Q2 2024, compared to 43,500 in Q2 2023. The average reimbursement for the Guardant360 LDT test increased to $5,000 effective January 1, 2024, contributing to revenue growth.
Future Outlook
Guardant Health anticipates continued growth in testing volumes and revenues as the demand for precision oncology solutions expands. The company is focused on enhancing its product offerings and expanding its market presence through strategic partnerships and collaborations.
How Guardant Health, Inc. (GH) Makes Money
Revenue Streams
Guardant Health, Inc. generates revenue primarily through two segments: precision oncology testing and development services.
Precision Oncology Testing
In the second quarter of 2024, Guardant Health reported precision oncology testing revenue of $166.5 million, a 33% increase from $125.2 million in the same period of 2023. For the first half of 2024, revenue from precision oncology testing reached $322.7 million, up 35% from $238.6 million in 2023.
Revenue from clinical customers accounted for $130.3 million in Q2 2024, representing a 30% increase from $100.2 million in Q2 2023. The total tests performed for clinical customers rose to approximately 49,400 from 43,500 year-over-year.
For biopharmaceutical customers, revenue was $36.2 million in Q2 2024, up 45% from $25.0 million in Q2 2023. The total tests for biopharmaceutical customers increased to approximately 10,475 in Q2 2024 from 6,700 in Q2 2023.
Development Services and Other Revenue
In the second quarter of 2024, development services and other revenue decreased to $10.7 million, down 10% from $11.9 million in the same quarter of 2023. For the first half of 2024, this segment generated $22.979 million, compared to $27.227 million in 2023, marking a decrease of 16%.
Cost Structure
The total cost of revenue for Guardant Health in Q2 2024 was $72.4 million, representing a 34% increase from $53.8 million in Q2 2023. The cost of precision oncology testing accounted for $65.7 million, a 33% increase from $49.4 million in Q2 2023. For the first half of 2024, the total cost of revenue was $137.7 million, up 29% from $106.9 million in 2023.
Operating Expenses
Operating expenses for the second quarter of 2024 totaled $277.9 million, compared to $256.8 million in Q2 2023, an increase of 8%. The breakdown of operating expenses is as follows:
| Expense Type | Q2 2024 (in thousands) | Q2 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Research and Development | 83,102 | 90,359 | (7,257) | (8%) |
| Sales and Marketing | 81,867 | 71,043 | 10,824 | 15% |
| General and Administrative | 40,463 | 41,516 | (1,053) | (3%) |
Net Loss
Guardant Health reported a net loss of $102.6 million for Q2 2024, compared to a net loss of $72.8 million for Q2 2023. For the first half of 2024, the net loss was $217.6 million, compared to $206.3 million in the same period of 2023.
Funding Sources
As of June 30, 2024, Guardant Health had cash, cash equivalents, and restricted cash of approximately $1.0 billion, providing a strong liquidity position to support ongoing operations and growth initiatives.
Market Position and Factors Affecting Performance
Guardant Health's revenue is influenced by several factors, including testing volume, pricing, customer mix, and payer coverage and reimbursement. Approximately 40% of precision oncology revenue from clinical customers is derived from tests covered by Medicare. The company aims to expand its market share by increasing the adoption of its tests among both clinical and biopharmaceutical customers.
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