Guardant Health Inc (GH) Reports 22% Revenue Growth for Q3 2023
Guardant Health Inc (NASDAQ:GH) reported a 22% increase in Q3 2023 revenue, driven by a 35% increase in clinical volume growth.
The company raised its 2023 revenue guidance to $553 to $556 million.
Guardant Health Inc (NASDAQ:GH) reported a net loss of $86.1 million for Q3 2023, a significant decrease from the $162.0 million net loss reported in the same period in 2022.
The company's cash, cash equivalents, and marketable debt securities stood at $1.2 billion as of September 30, 2023.
Guardant Health Inc (NASDAQ:GH), a leading precision oncology company, released its financial results for the third quarter ended September 30, 2023, on November 6, 2023. The company reported a 22% year-over-year increase in revenue, driven by a 35% increase in clinical volume growth. This strong performance led the company to raise its 2023 revenue guidance to $553 to $556 million.
Financial Highlights
Guardant Health Inc (NASDAQ:GH) reported revenue of $143.0 million for Q3 2023, a 22% increase compared to the same period in 2022. The company's precision oncology revenue grew by 31%, primarily driven by an increase in clinical testing volume and biopharma sample volume, which grew by 35% and 11% respectively.
The company's gross profit for Q3 2023 was $85.4 million, an increase of $8.5 million from the same period in 2022. However, the gross margin decreased from 66% in Q3 2022 to 60% in Q3 2023 due to changes in product mix.
Operating expenses for Q3 2023 were $199.0 million, a decrease from $221.5 million in Q3 2022. The company reported a net loss of $86.1 million for Q3 2023, a significant decrease from the $162.0 million net loss reported in Q3 2022. The net loss per share was $0.73 for Q3 2023, compared to $1.58 for Q3 2022.
2023 Guidance
Based on its strong performance, Guardant Health Inc (NASDAQ:GH) has revised its full-year 2023 revenue guidance to be in the range of $553 to $556 million, representing a growth of 23% to 24% compared to full year 2022. The company continues to expect full-year 2023 operating expenses to be below full year 2022, driven by efficiency measures and continued leverage of its existing infrastructure. The company's free cash flow is expected to be approximately negative $350 million in 2023.
Company's Outlook
Guardant Health Inc (NASDAQ:GH) continues to make steady progress in its screening business with its Shield blood test. The company is also advancing its progress in lung and other indications as it develops Shield into a multi-cancer early detection test. With the company's strong performance in Q3 2023 and the upward revision of its 2023 revenue guidance, Guardant Health Inc (NASDAQ:GH) looks forward to a strong finish to the year.
Explore the complete 8-K earnings release (here) from Guardant Health Inc for further details.
This article first appeared on GuruFocus.
