0001576280false00015762802024-05-092024-05-09

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 9, 2024
GUARDANT HEALTH, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-38683
45-4139254
(State or other jurisdiction
of incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
3100 Hanover Street
Palo Alto, California 94304
(Address of principal executive offices) (Zip Code)
855-698-8887
(Registrant’s telephone number, include area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.00001 par value per share
GH
The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐







Item 2.02 Results of Operations and Financial Condition.
On May 9, 2024, Guardant Health, Inc. (the “Company”) issued a press release announcing financial results for the fiscal quarter ended March 31, 2024. The full text of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information furnished in this Current Report on Form 8-K (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No.Description
99.1
104Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
GUARDANT HEALTH, INC.
Date:May 9, 2024By:
/s/ Michael Bell
Michael Bell
Chief Financial Officer
(Principal Accounting Officer and Principal Financial Officer)


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Guardant Health Reports First Quarter 2024 Financial Results and Increases 2024 Revenue Guidance
Revenue growth of 31% driven by strong clinical and biopharma volume and Guardant360 ASP tailwinds
PALO ALTO, Calif. May 9, 2024 – Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company, today reported financial results for the quarter ended March 31, 2024.
First Quarter 2024 Financial Highlights
•Revenue of $168.5 million for the first quarter of 2024, an increase of 31% over the first quarter of 2023
•Reported 46,900 tests to clinical customers and 8,450 tests to biopharmaceutical customers in the first quarter of 2024, representing increases of 20% and 37%, respectively, over the first quarter of 2023
•Reduced free cash flow to $(37.2) million in the first quarter of 2024, compared to $(82.0) million in the prior year
•Raised 2024 annual guidance for revenue to a new range of $675 to $685 million, representing growth of 20% to 21%
•Improved annual free cash flow guidance to $(275) to $(285) million, a reduction of $60 to $70 million compared to 2023
Recent Operating Highlights
•Validated the strength and quality of ECLIPSE clinical data with the study publication in The New England Journal of Medicine
•Launched new service at The Royal Marsden to test advanced NSCLC patients in England through an expanded NHS study
•Presented new data demonstrating the value of epigenomic analysis and methylation sequencing using the Smart Liquid Biopsy platform at the 2024 AACR Annual Meeting
•Surpassed 500 peer-reviewed publications highlighting Guardant Health technology in scientific literature
“We started the year off very strongly with first quarter revenue growing 31%, driven by both solid volume growth and significant improvements to Guardant360 reimbursement,” said Helmy Eltoukhy, co-founder and co-CEO. “In addition to strong topline performance, this was the first quarter of generating positive cash flow in our Therapy Selection business. We also recently surpassed a significant milestone with over 500 peer-reviewed publications highlighting our technology in scientific literature, demonstrating the impact our innovative suite of products have on both patients and the scientific community.”
“The publication of ECLIPSE data in The New England Journal of Medicine, one of the world’s leading medical journals, underscores the quality of our clinical data,” said AmirAli Talasaz, co-founder and co-CEO. “Our team has worked incredibly hard and is now well-prepared for the upcoming FDA Advisory Committee review on May 23. We are eagerly anticipating the launch of Shield IVD shortly after the expected FDA approval in 2024 and are confident this test is well positioned for rapid adoption.”
First Quarter 2024 Financial Results
Revenue was $168.5 million for the first quarter of 2024, a 31% increase from $128.7 million for the corresponding prior year period. Precision oncology revenue grew 38%, to $156.2 million for the first quarter of 2024, from $113.4 million for the corresponding prior year period, driven by an increase in clinical and biopharma testing volume, which grew 20% and 37%, respectively, over the prior year period. The increase in precision oncology revenue was also attributable to an increase in reimbursement for our tests, due to an increase in the Medicare reimbursement rate for our Guardant360 LDT test to $5,000, effective January 1, 2024, and an increase in reimbursement received from commercial payers. Development services and other revenue was $12.3 million for the first quarter of 2024, compared to $15.3 million for the corresponding prior year period.
Gross profit, or total revenue less cost of precision oncology testing and cost of development services and other, was $103.2 million for the first quarter of 2024, an increase of $27.6 million from $75.6 million for the corresponding prior year period. Gross margin, or gross profit divided by total revenue, was 61%, as compared to 59% for the corresponding prior year period. Precision oncology gross margin was 62% in the first quarter of 2024, as compared to 60% in the prior year period. Development services and other gross margin was 51% in the first quarter of 2024, as compared to 48% in the prior year period.
Non-GAAP gross profit was $105.3 million for the first quarter of 2024, an increase of $27.6 million, from $77.7 million for the corresponding prior year period. Non-GAAP gross margin was 63% for the first quarter of 2024, as compared to 60% for the corresponding prior year period.
Non-GAAP gross profit excluding screening was $108.0 million for the first quarter of 2024, an increase of $26.9 million, from $81.1 million for the corresponding prior year period. Non-GAAP gross margin excluding screening was 64% for the first quarter of 2024, as compared to 63% for the corresponding prior year period.
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Operating expenses were $202.9 million for the first quarter of 2024, as compared to $209.7 million for the corresponding prior year period. Non-GAAP operating expenses were $176.5 million for the first quarter of 2024, as compared to $188.3 million for the corresponding prior year period.
Net loss was $115.0 million for the first quarter of 2024, as compared to $133.5 million for the corresponding prior year period. Net loss per share was $0.94 for the first quarter of 2024, as compared to $1.30 for the corresponding prior year period. The year-over-year decrease in net loss is primarily due to a $34.4 million year over year improvement in loss from operations, and a $11.8 million increase in interest income, partially offset by a $33.9 million increase in unrealized losses recorded for our investment in Lunit, Inc.
Non-GAAP net loss was $56.4 million for the first quarter of 2024, as compared to $108.5 million for the corresponding prior year period. Non-GAAP net loss per share was $0.46 for the first quarter of 2024, as compared to $1.06 for the corresponding prior year period.
Adjusted EBITDA loss was $61.1 million for the first quarter of 2024, as compared to a $101.0 million loss for the corresponding prior year period.
Free cash flow for the first quarter of 2024 was $(37.2) million, as compared to $(82.0) million for the corresponding prior year period. Cash, cash equivalents, and restricted cash were $1.1 billion as of March 31, 2024.
2024 Guidance
Guardant Health now expects full year 2024 revenue excluding screening to be in the range of $675 to $685 million, representing growth of 20% to 21% compared to full year 2023 This compares to the prior range of $655 to $670 million, representing growth of 16% to 19%. Guardant Health now expects full year 2024 non-GAAP gross margin excluding screening to be in the range of 61% to 63%, compared to the prior range of 60% to 62%. Guardant Health now expects total non-GAAP operating expenses to be in the range of $720 to $730 million, representing a flat to 1% decrease compared to 2023, an improvement compared to the prior range of $740 to $750 million. Guardant Health now expects free cash flow to be in the range of $(275) to $(285) million in 2024, an improvement compared to the prior range of $(320) to $(330) million.
Webcast Information
Guardant Health will host a conference call to discuss the first quarter 2024 financial results after market close on Thursday, May 9, 2024 at 1:30 pm Pacific Time / 4:30 pm Eastern Time. A webcast of the conference call can be accessed at http://investors.guardanthealth.com. The webcast will be archived and available for replay for at least 90 days after the event.
Non-GAAP Measures
Guardant Health has presented in this release certain financial information in accordance with U.S. Generally Accepted Accounting Principles (GAAP) and also on a non-GAAP basis, including non-GAAP cost of precision oncology testing, non-GAAP cost of development services and other, non-GAAP cost of screening, non-GAAP gross profit, non-GAAP gross profit excluding cost of screening, non-GAAP research and development expense, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss per share, basic and diluted, adjusted EBITDA, and free cash flow.
We define our non-GAAP measures as the applicable GAAP measure adjusted for the impacts of stock-based compensation and related employer payroll tax payments, contingent consideration, amortization of intangible assets, fair value adjustments on marketable equity securities, impairment of non-marketable equity securities and other related assets, and other non-recurring items.
Adjusted EBITDA is defined as net loss adjusted for interest income; interest expense; other income (expense), net; provision for income taxes; depreciation and amortization expense; stock-based compensation expense and related employer payroll tax payments; contingent consideration; and other non-recurring items. Free cash flow is defined as net cash used in operating activities in the period less purchase of property and equipment in the period.
We believe that the exclusion of certain income and expenses in calculating these non-GAAP financial measures can provide a useful measure for investors when comparing our period-to-period core operating results, and when comparing those same results to that published by our peers. We exclude certain items because we believe that these income and expenses do not reflect expected future operating performance. Additionally, certain items are inconsistent in amounts and frequency, making it difficult to perform a meaningful evaluation of our current or past operating performance. We use these non-GAAP financial measures to evaluate ongoing operations, for internal planning and forecasting purposes, and to manage our business.
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These non-GAAP financial measures are not intended to be considered in isolation from, as substitute for, or as superior to, the corresponding financial measures prepared in accordance with GAAP. There are limitations inherent in non-GAAP financial measures because they exclude charges and credits that are required to be included in a GAAP presentation, and do not present the full measure of our recorded costs against its revenue. In addition, our definition of the non-GAAP financial measures may differ from non-GAAP measures used by other companies.
About Guardant Health
Guardant Health is a leading precision medicine company focused on guarding wellness and giving every person more time free from cancer. Founded in 2012, Guardant is transforming patient care by providing critical insights into what drives disease through its advanced blood and tissue tests, real-world data and AI analytics. Guardant tests help improve outcomes across all stages of care, including screening to find cancer early, monitoring for recurrence in early-stage cancer, and helping doctors select the best treatment for patients with advanced cancer. For more information, visit guardanthealth.com and follow the company on LinkedIn, X (Twitter) and Facebook.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including statements relating to Guardant Health’s future results, regulatory approval for products or regarding the potential benefits and advantages of Guardant Health’s platforms, assays and tests, which involve risks and uncertainties that could cause Guardant Health’s actual results to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors. These and additional risks and uncertainties that could affect Guardant Health’s financial and operating results and cause actual results to differ materially from those indicated by the forward-looking statements made in this press release include those discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operation” and elsewhere in its Annual Report on Form 10-K for the year ended December 31, 2023, and any current and periodic reports filed with or furnished to the Securities and Exchange Commission thereafter. The forward-looking statements in this press release are based on information available to Guardant Health as of the date hereof, and Guardant Health disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Guardant Health’s views as of any date subsequent to the date of this press release.
Investor Contact:
investors@guardanthealth.com
Media Contact:
Melissa Marasco
press@guardanthealth.com
+1 650-647-3711
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Guardant Health, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended March 31,
20242023
Revenue:
Precision oncology testing
$156,229 $113,393 
Development services and other12,262 15,321 
Total revenue
168,491 128,714 
Costs and operating expenses:
Cost of precision oncology testing 59,306 45,106 
Cost of development services and other5,990 7,967 
Research and development expense 83,802 93,128 
Sales and marketing expense 80,425 76,123 
General and administrative expense 38,651 40,445 
Total costs and operating expenses
268,174 262,769 
Loss from operations
(99,683)(134,055)
Interest income
14,868 3,060 
Interest expense
(645)(644)
Other income (expense), net (29,120)(1,654)
Loss before provision for income taxes (114,580)(133,293)
Provision for income taxes 405 240 
Net loss $(114,985)$(133,533)
Net loss per share, basic and diluted $(0.94)$(1.30)
Weighted-average shares used in computing net loss per share, basic and diluted121,712 102,663 
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 Guardant Health, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands, except share and per share data)
March 31, 2024December 31, 2023
ASSETS
Current assets:
Cash, cash equivalents and restricted cash
$1,129,257 $1,133,537 
Short-term marketable debt securities
— 35,097 
Accounts receivable, net
84,562 88,783 
Inventory, net
62,991 61,948 
Prepaid expenses and other current assets, net
31,736 27,741 
Total current assets
1,308,546 1,347,106 
Property and equipment, net
138,387 145,096 
Right-of-use assets, net
151,881 157,616 
Intangible assets, net
8,294 8,979 
Goodwill
3,290 3,290 
Other assets, net
94,200 124,334 
Total Assets
$1,704,598 $1,786,421 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$37,603 $51,741 
Accrued compensation92,639 72,736 
Accrued expenses
67,211 63,475 
Deferred revenue
22,556 17,965 
Total current liabilities
220,009 205,917 
Convertible senior notes, net1,140,611 1,139,966 
Long-term operating lease liabilities
178,907 185,848 
Other long-term liabilities
96,786 96,006 
Total Liabilities
1,636,313 1,627,737 
Stockholders’ equity:
Common stock, par value of $0.00001 per share; 350,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 121,787,297 and 121,629,861 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively
1 1 
Additional paid-in capital
2,329,930 2,304,220 
Accumulated other comprehensive loss
(4,799)(3,675)
Accumulated deficit
(2,256,847)(2,141,862)
Total Stockholders’ Equity
68,285 158,684 
Total Liabilities and Stockholders’ Equity
$1,704,598 $1,786,421 

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Guardant Health, Inc.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(unaudited)
(in thousands, except per share data)
Three Months Ended March 31,
20242023
GAAP cost of precision oncology testing$59,306 $45,106 
Amortization of intangible assets(149)(148)
Stock-based compensation expense and related employer payroll tax payments(1,278)(1,218)
Non-GAAP cost of precision oncology testing $57,879 $43,740 
GAAP cost of development services and other$5,990 $7,967 
Amortization of intangible assets(200)(201)
Stock-based compensation expense and related employer payroll tax payments(499)(476)
Non-GAAP cost of development services and other$5,291 $7,290 
GAAP gross profit$103,195 $75,641 
Amortization of intangible assets349 349 
Stock-based compensation expense and related employer payroll tax payments1,777 1,694 
Non-GAAP gross profit$105,321 $77,684 
GAAP cost of screening $3,329 $4,065 
Amortization of intangible assets(200)(201)
Stock-based compensation expense and related employer payroll tax payments(499)(476)
Non-GAAP cost of screening $2,630 $3,388 
Non-GAAP gross profit excluding cost of screening$107,951 $81,072 
GAAP research and development expense$83,802 $93,128 
Stock-based compensation expense and related employer payroll tax payments(10,064)(8,748)
Contingent consideration(375)(570)
Non-GAAP research and development expense$73,363 $83,810 
GAAP sales and marketing expense$80,425 $76,123 
Stock-based compensation expense and related employer payroll tax payments(7,329)(7,543)
Non-GAAP sales and marketing expense$73,096 $68,580 
GAAP general and administrative expense$38,651 $40,445 
Amortization of intangible assets(336)(331)
Stock-based compensation expense and related employer payroll tax payments(8,164)(4,468)
Contingent consideration(120)300 
Non-GAAP general and administrative expense$30,031 $35,946 
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Three Months Ended March 31,
20242023
GAAP loss from operations$(99,683)$(134,055)
Amortization of intangible assets685 680 
Stock-based compensation expense and related employer payroll tax payments27,334 22,453 
Contingent consideration495 270 
Non-GAAP loss from operations$(71,169)$(110,652)
GAAP net loss $(114,985)$(133,533)
Amortization of intangible assets685 680 
Stock-based compensation expense and related employer payroll tax payments27,334 22,453 
Contingent consideration495 270 
Unrealized losses (gains) on marketable equity securities30,054 (3,882)
Impairment of non-marketable equity securities and other related assets— 5,485 
Non-GAAP net loss $(56,417)$(108,527)
GAAP net loss per share, basic and diluted$(0.94)$(1.30)
Non-GAAP net loss per share, basic and diluted$(0.46)$(1.06)
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted121,712 102,663 


Reconciliation of GAAP Net Loss to Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended March 31,
20242023
GAAP net loss $(114,985)$(133,533)
Interest income (14,868)(3,060)
Interest expense 645 644 
Other expense (income), net 29,120 1,654 
Provision for income taxes 405 240 
Depreciation and amortization10,712 10,345 
Stock-based compensation expense and related employer payroll tax payments27,334 22,453 
Contingent consideration495 270 
Adjusted EBITDA$(61,142)$(100,987)

Reconciliation of Free Cash Flow to Net Cash Used in Operating Activities
(unaudited)
(in thousands)
Three Months Ended March 31,
20242023
Net cash used in operating activities$(30,284)$(74,441)
Purchase of property and equipment (6,934)(7,524)
Free cash flow$(37,218)$(81,965)
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Document and Entity Information Document
May 09, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 09, 2024
Entity Registrant Name GUARDANT HEALTH, INC.
Entity Central Index Key 0001576280
Amendment Flag false
Entity Incorporation, State or Country Code DE
Entity File Number 001-38683
Entity Tax Identification Number 45-4139254
Entity Address, Address Line One 3100 Hanover Street
Entity Address, City or Town Palo Alto
Entity Address, State or Province CA
Entity Address, Postal Zip Code 94304
City Area Code 855
Local Phone Number 698-8887
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Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Title of 12(b) Security Common Stock, $0.00001 par value per share
Trading Symbol GH
Security Exchange Name NASDAQ
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