Guardant Health, Inc. (GH) Bundle
A Brief History of H3
As of 2024, H3 has experienced significant operational and financial developments, particularly in the precision oncology sector. The company's performance has been marked by substantial revenue growth driven by increased sample volumes and improved reimbursement rates for its testing services.
Financial Performance Overview
For the nine months ended September 30, 2024, H3 reported total revenue of $537.2 million, representing an increase of 31% from $408.9 million during the same period in 2023 . This growth was primarily fueled by a 35% increase in precision oncology testing revenue, which reached $503.4 million compared to $372.1 million in 2023 .
| Metric | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $537.2 million | $408.9 million | 31% |
| Precision Oncology Testing Revenue | $503.4 million | $372.1 million | 35% |
Revenue Breakdown
In the nine months ending September 30, 2024, revenue from clinical customers increased by 34% to $397.2 million, while revenue from biopharmaceutical customers grew by 39% to $106.1 million . The total tests conducted for clinical customers increased to approximately 149,400, up from 126,500 in the prior year .
| Customer Type | Revenue (2024) | Revenue (2023) | Change (%) |
|---|---|---|---|
| Clinical Customers | $397.2 million | $295.7 million | 34% |
| Biopharmaceutical Customers | $106.1 million | $76.4 million | 39% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $254.2 million in research and development, $260.2 million in sales and marketing, and $128.2 million in general and administrative expenses . Notably, sales and marketing expenses increased by 20% year-over-year, reflecting investments in commercial team expansion and marketing initiatives .
| Expense Type | 2024 (9 Months) | 2023 (9 Months) | Change (%) |
|---|---|---|---|
| Research and Development | $254.2 million | $277.3 million | -8% |
| Sales and Marketing | $260.2 million | $216.1 million | 20% |
| General and Administrative | $128.2 million | $118.1 million | 9% |
Net Loss and Shareholder Equity
H3 reported a net loss of $325.4 million for the nine months ended September 30, 2024, compared to a loss of $292.4 million in the same period of 2023 . As of September 30, 2024, the company had total stockholders’ equity of $(60.1 million), reflecting ongoing investments and operating losses .
| Metric | 2024 (9 Months) | 2023 (9 Months) |
|---|---|---|
| Net Loss | $325.4 million | $292.4 million |
| Total Stockholders’ Equity | $(60.1 million) | $228.3 million |
Liquidity and Capital Resources
As of September 30, 2024, H3 had cash, cash equivalents, restricted cash, and marketable debt securities amounting to approximately $1.0 billion. This robust liquidity position is expected to support ongoing operational needs and strategic initiatives .
| Liquidity Metric | Amount |
|---|---|
| Cash and Cash Equivalents | $1.0 billion |
A Who Owns Guardant Health, Inc. (GH)
Major Shareholders
As of 2024, Guardant Health, Inc. has a diverse ownership structure, including institutional investors, insiders, and retail shareholders.
| Shareholder Type | Number of Shares Owned | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 90,000,000 | 73% |
| Insider Ownership | 10,000,000 | 8% |
| Retail Investors | 23,158,418 | 19% |
Institutional Ownership
Institutional investors hold a significant portion of Guardant Health's shares. Some of the largest institutional shareholders include:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| Vanguard Group | 10,500,000 | 8.5% |
| BlackRock, Inc. | 9,000,000 | 7.3% |
| State Street Corporation | 8,500,000 | 6.9% |
| Fidelity Investments | 7,500,000 | 6.1% |
| Other Institutions | 54,500,000 | 44.2% |
Insider Ownership
Insider ownership remains a critical aspect of the company's governance. Key insiders include:
| Name | Position | Shares Owned |
|---|---|---|
| AmirAli Talasaz | Co-CEO | 4,000,000 |
| Helmy Eltoukhy | Co-CEO | 3,000,000 |
| Other Executives | Various | 3,000,000 |
Recent Stock Performance
Guardant Health's stock performance has been influenced by several factors, including market conditions and financial results. As of September 30, 2024, the stock closed at $29.50, reflecting a year-to-date increase of 15%.
| Metric | Value |
|---|---|
| Current Stock Price | $29.50 |
| Market Capitalization | $3.63 billion |
| 52-Week High | $32.00 |
| 52-Week Low | $23.00 |
Financial Overview
Guardant Health reported the following financial results for the nine months ended September 30, 2024:
| Financial Metric | Value |
|---|---|
| Total Revenue | $537.2 million |
| Net Loss | ($325.4 million) |
| Cash and Cash Equivalents | $1.0 billion |
| Accumulated Deficit | ($2.5 billion) |
Conclusion
Guardant Health's ownership structure is characterized by a substantial presence of institutional investors, alongside key insiders and retail shareholders. The company continues to navigate its financial landscape while striving for growth in the precision oncology market.
Guardant Health, Inc. (GH) Mission Statement
Guardant Health, Inc. aims to transform cancer care through the development of cutting-edge blood tests that enable early detection and monitoring of cancer. The mission of the company is to provide patients with actionable insights that can lead to improved outcomes in their cancer treatment journey.
Company Overview
Guardant Health specializes in precision oncology, offering advanced blood tests that help detect and monitor cancer. The company’s flagship product, Guardant360, is utilized by clinicians to inform treatment decisions. In addition, the recently approved Shield test marks a significant advancement in the realm of colorectal cancer screening.
Financial Performance
The financial performance of Guardant Health reflects its growth trajectory and operational efficiency. For the three months ended September 30, 2024, the company reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $191.5 million | $143.0 million | 34% |
| Precision Oncology Testing Revenue | $180.6 million | $133.4 million | 35% |
| Development Services Revenue | $10.9 million | $9.6 million | 13% |
| Net Loss | $(107.8) million | $(86.1) million | 25% |
For the nine months ended September 30, 2024, the company reported:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $537.2 million | $408.9 million | 31% |
| Precision Oncology Testing Revenue | $503.4 million | $372.1 million | 35% |
| Development Services Revenue | $33.9 million | $36.8 million | (8%) |
| Net Loss | $(325.4) million | $(292.4) million | 11% |
Operational Highlights
Guardant Health’s operational achievements include:
- Launch of the Shield test for colorectal cancer screening, which received FDA approval in July 2024.
- Increase in sample volume contributing to revenue growth, with total tests for clinical customers rising from approximately 43,900 in Q3 2023 to approximately 53,100 in Q3 2024.
- Expansion of reimbursement for Guardant360 tests, with Medicare reimbursement increasing to $5,000 effective January 1, 2024.
Research and Development
Research and development remains a core focus for Guardant Health, with expenses for the three months ended September 30, 2024, reported at:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $87.3 million | $93.9 million | (7%) |
| Sales and Marketing | $97.9 million | $68.9 million | 42% |
| General and Administrative | $49.1 million | $36.2 million | 36% |
The company’s commitment to innovation is reflected in the significant investments made in R&D, aimed at developing next-generation testing capabilities.
Market Position and Future Outlook
Guardant Health continues to solidify its market position as a leader in precision oncology, with a strategic focus on expanding its portfolio of tests and enhancing patient access to its products. As of September 30, 2024, the company reported cash, cash equivalents, restricted cash, and marketable debt securities of approximately $1.0 billion, providing a strong foundation for future growth initiatives.
Overall, Guardant Health's mission to revolutionize cancer care through innovation and precision testing is supported by its robust financial performance and ongoing commitment to research and development.
How Guardant Health, Inc. (GH) Works
Business Overview
Guardant Health, Inc. specializes in precision oncology, focusing on blood-based tests for cancer detection and treatment monitoring. The company operates primarily through its Guardant360 and Shield products, providing insights into tumor genomics to enhance patient care.
Financial Performance
For the three months ended September 30, 2024, Guardant Health reported:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $191.5 million | $143.0 million | 34% |
| Precision Oncology Testing Revenue | $180.6 million | $133.4 million | 35% |
| Development Services Revenue | $10.9 million | $9.6 million | 13% |
For the nine months ended September 30, 2024, the financials were as follows:
| Metric | 9M 2024 | 9M 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $537.2 million | $408.9 million | 31% |
| Precision Oncology Testing Revenue | $503.4 million | $372.1 million | 35% |
| Development Services Revenue | $33.9 million | $36.8 million | (8%) |
Cost Structure
The company reported significant costs associated with its operations for the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Cost of Revenue | $74.5 million | $57.6 million | 29% |
| Cost of Precision Oncology Testing | $66.1 million | $53.6 million | 23% |
| Cost of Development Services | $8.4 million | $4.0 million | 112% |
Operating Expenses
For the three months ended September 30, 2024, the breakdown of operating expenses was:
| Expense Type | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Research and Development | $87.3 million | $93.9 million | (7%) |
| Sales and Marketing | $97.9 million | $68.9 million | 42% |
| General and Administrative | $49.1 million | $36.2 million | 36% |
Net Loss
Guardant Health reported net losses for the three months ended September 30, 2024:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss | $(107.8) million | $(86.1) million |
| Net Loss per Share | $(0.88) | $(0.73) |
Cash Position
As of September 30, 2024, Guardant Health reported a strong cash position:
| Metric | Amount |
|---|---|
| Cash, Cash Equivalents, and Marketable Securities | Approximately $1.0 billion |
Market and Reimbursement Trends
Key developments include:
- Medicare reimbursement for the Guardant360 LDT test increased to $5,000, effective January 1, 2024.
- Increased sample volumes contributed to revenue growth across clinical and biopharmaceutical testing segments.
Recent Developments
In July 2024, Guardant Health received FDA approval for its Shield blood test for colorectal cancer screening, marking a significant milestone in its product offerings.
How Guardant Health, Inc. (GH) Makes Money
Revenue Streams
Guardant Health, Inc. primarily generates revenue from two main sources: precision oncology testing and development services and other.
Precision Oncology Testing
For the nine months ended September 30, 2024, Guardant Health reported precision oncology testing revenue of $503.4 million, representing a 35% increase from $372.1 million in the same period of 2023.
Revenue from tests for clinical customers was $397.2 million for the nine months ended September 30, 2024, up 34% from $295.7 million in 2023. The total number of tests for clinical customers increased to approximately 149,400.
Revenue from tests for biopharmaceutical customers reached $106.1 million, up 39% from $76.4 million in 2023, with approximately 29,425 tests conducted.
Development Services and Other
Revenue from development services and other decreased to $33.9 million for the nine months ended September 30, 2024, compared to $36.8 million in 2023.
Cost of Revenue
The total cost of revenue for the nine months ended September 30, 2024, was $212.2 million, an increase of 29% from $164.5 million in 2023.
Cost of precision oncology testing was $191.1 million, reflecting a 29% increase from $148.1 million in 2023.
Cost of development services and other was $21.1 million, compared to $16.4 million in the prior year.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, totaled $854.8 million, up from $776.1 million in 2023. This includes:
- Research and development: $254.2 million (down 8% from $277.3 million)
- Sales and marketing: $260.2 million (up 20% from $216.1 million)
- General and administrative: $128.2 million (up 9% from $118.1 million)
Net Loss
For the nine months ended September 30, 2024, Guardant Health reported a net loss of $325.4 million, compared to $292.4 million in the same period of 2023.
Cash and Financing Activities
As of September 30, 2024, the company had cash, cash equivalents, restricted cash, and marketable debt securities of approximately $1.0 billion.
In May 2023, Guardant Health completed a public offering, issuing 14,375,000 shares at a price of $28.00 per share, resulting in net proceeds of $381.4 million.
In December 2023, the company issued 3,387,446 shares at a price of $26.77 per share, resulting in net proceeds of $90.6 million.
Revenue by Geography
| Region | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) |
|---|---|---|---|---|
| United States | $180,105 | $135,735 | $505,568 | $383,908 |
| International | $11,371 | $7,295 | $31,634 | $24,986 |
| Total Revenue | $191,476 | $143,030 | $537,202 | $408,894 |
Guardant Health, Inc. (GH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Guardant Health, Inc. (GH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Guardant Health, Inc. (GH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Guardant Health, Inc. (GH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.