EX-99.1 2 gh-06302021xexhibit991.htm EX-99.1 Document
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Guardant Health Reports Second Quarter 2021 Financial Results
Achieved revenue of $92.1 million, driven by 52% year over year growth in clinical volume
REDWOOD CITY, Calif. August 5, 2021 – Guardant Health, Inc. (Nasdaq: GH), a leading precision oncology company focused on helping conquer cancer globally through use of its proprietary tests, vast data sets and advanced analytics, today reported financial results for the quarter ended June 30, 2021.
Recent Highlights
•Revenue of $92.1 million for the second quarter of 2021, an increase of 39% over the corresponding period of 2020
•Reported 20,830 tests to clinical customers and 3,653 tests to biopharmaceutical customers in the second quarter of 2021, representing an increase of 52% and 30%, respectively, over the second quarter of 2020
•Enrolled 10,000th patient in ECLIPSE trial and plans to launch a blood-based screening LDT in the first half of 2022
•Expanded Guardant360 portfolio with launch of TissueNext™ and Response™ tests
•Received FDA approvals for Guardant360 CDx as a companion diagnostic for LUMAKRAS and RYBREVANT in advanced non-small cell lung cancer
•Appointed Chris Freeman as Chief Commercial Officer of Oncology
“I am proud of our team’s execution this quarter as we continued to expand our product portfolio and establish our solutions as best-in-class in cancer testing,” said Helmy Eltoukhy, co-founder and CEO. “I am especially proud of the progress our clinical team has made running our ECLIPSE study during the pandemic and am excited to announce we have enrolled more than 10,000 patients to date. We are making great strides across our business to be a leader in cancer care and we are looking forward to continuing to make important progress in the second half of the year.”
Second Quarter 2021 Financial Results
Revenue was $92.1 million for the three months ended June 30, 2021, a 39% increase from $66.3 million for the three months ended June 30, 2020. Precision oncology revenue grew 42% driven predominantly by an increase in clinical testing revenue which grew 54% over the prior year period. There were 20,830 clinical tests and 3,653 biopharmaceutical tests performed during the second quarter of 2021. Development services and other revenue increased 27% primarily due to the timing of project milestones related to the receipt of regulatory approval for two of our companion diagnostic programs during the three months ended June 30, 2021 .
Gross profit, or total revenue less cost of precision oncology testing and cost of development services and other, was $62.2 million for the second quarter of 2021, an increase of $18.3 million from $43.9 million for the corresponding prior year period. Gross margin, or gross profit divided by total revenue, was 68%, as compared to 66% for the corresponding prior year period.
Operating expenses were $159.8 million for the second quarter of 2021, as compared to $98.5 million for the corresponding prior year period, an increase of 62%. Non-GAAP operating expenses were $124.7 million for the second quarter of 2021, as compared to $72.9 million for the corresponding prior year period.
Net loss attributable to Guardant Health, Inc. common stockholders was $97.6 million for the second quarter of 2021, as compared to $54.6 million for the corresponding prior year period. Net loss per share attributable to Guardant Health, Inc. common stockholders was $0.96 for the second quarter of 2021, as compared to $0.57 for the corresponding prior year period. Non-GAAP net loss was $61.4 million for the second quarter of 2021, as compared to $23.5 million for the corresponding prior year period. Non-GAAP net loss per share was $0.61 for the second quarter of 2021, as compared to $0.25 for the corresponding prior year period.
Adjusted EBITDA loss was $56.4 million for the second quarter of 2021, as compared to a $25.1 million loss for the corresponding prior year period.
Cash, cash equivalents and marketable securities were $1.8 billion as of June 30, 2021.
2021 Guidance
Due to continued uncertainty around the global COVID pandemic, Guardant Health is maintaining its previous 2021 revenue guidance. The Company continues to expect full year 2021 revenue to be in the range of $360 million to $370 million, representing 26% to 29% growth over full year 2020. Clinical volumes for 2021 are expected to be greater than 90,000 tests, growing at least 42% over 2020.
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Webcast Information
Guardant Health will host a conference call to discuss the second quarter 2021 financial results after market close on Thursday, August 5, 2021 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 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 attributable to Guardant Health, Inc., common stockholders, non-GAAP net loss per share attributable to Guardant Health, Inc. common stockholders, basic and diluted, and Adjusted EBITDA.

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; changes in estimated fair value redeemable noncontrolling interest; contingent consideration; acquisition related expenses, amortization of intangible assets, and other non-recurring items.

Adjusted EBITDA is defined as net loss attributable to Guardant Health, Inc. common stockholders adjusted for interest income; interest expense; other income (expense), net, provision for (benefit from) income taxes; depreciation; and amortization expense; stock-based compensation expense and related employer payroll tax payments; adjustments relating to non-controlling interest and contingent consideration and, if applicable in a reporting period, acquisition-related expenses and other non-recurring items.

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 other items because we believe that these income (expenses) do not reflect expected future operating expenses. 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.

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 oncology company focused on helping conquer cancer globally through use of its proprietary tests, vast data sets and advanced analytics. The Guardant Health oncology platform leverages capabilities to drive commercial adoption, improve patient clinical outcomes and lower healthcare costs across all stages of the cancer care continuum. Guardant Health has commercially launched liquid biopsy-based Guardant360®, Guardant360 CDx, Guardant360 TissueNext™, Guardant360 Response™, and GuardantOMNI® tests for advanced stage cancer patients, and Guardant Reveal™ for early-stage cancer patients. These tests fuel development of its LUNAR screening program, which aims to address the needs of asymptomatic individuals eligible for cancer screening.
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, 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, 2020, and in its other reports filed with the Securities and Exchange Commission. 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.
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Investor Contact:
Carrie Mendivil
investors@guardanthealth.com

Media Contact:
Anna Czene
press@guardanthealth.com
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Guardant Health, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
Revenue:
Precision oncology testing
$72,604 $50,991 $136,333 $111,237 
Development services and other19,497 15,344 34,433 22,608 
Total revenue
92,101 66,335 170,766 133,845 
Costs and operating expenses:
Cost of precision oncology testing 24,887 17,809 48,477 36,000 
Cost of development services and other5,040 4,626 10,197 6,941 
Research and development expense 63,724 36,319 119,232 73,335 
Sales and marketing expense 47,716 25,015 82,054 50,130 
General and administrative expense 48,376 37,186 116,311 56,971 
Total costs and operating expenses
189,743 120,955 376,271 223,377 
Loss from operations
(97,642)(54,620)(205,505)(89,532)
Interest income
1,037 2,640 2,588 5,958 
Interest expense
(644)(10)(1,290)(22)
Other income (expense), net (243)2,285 (533)2,076 
Loss before provision for income taxes
(97,492)(49,705)(204,740)(81,520)
Provision for income taxes 83 34 193 48 
Net loss
(97,575)(49,739)(204,933)(81,568)
Adjustment of redeemable noncontrolling interest
— (4,900)(2,300)(800)
Net loss attributable to Guardant Health, Inc. common stockholders
$(97,575)$(54,639)$(207,233)$(82,368)
Net loss per share attributable to Guardant Health, Inc. common stockholders, basic and diluted
$(0.96)$(0.57)$(2.05)$(0.87)
Weighted-average shares used in computing net loss per share attributable to Guardant Health, Inc. common stockholders, basic and diluted
101,172 96,011 101,064 95,196 
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 Guardant Health, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands, except share and per share data)
June 30, 2021December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents
$938,590 $832,977 
Short-term marketable securities
853,072 961,903 
Accounts receivable, net
53,667 53,299 
Inventory
26,494 22,716 
Prepaid expenses and other current assets, net
19,236 17,466 
Total current assets
1,891,059 1,888,361 
Long-term marketable securities
55,368 246,597 
Property and equipment, net
89,737 62,782 
Right-of-use assets
200,958 37,343 
Intangible assets, net
15,189 16,155 
Goodwill
3,290 3,290 
Other assets, net
36,284 17,253 
Total Assets
$2,291,885 $2,271,781 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$21,399 $7,340 
Accrued compensation
34,735 28,280 
Accrued expenses
31,998 22,639 
Deferred revenue
8,480 8,550 
Total current liabilities
96,612 66,809 
Convertible senior notes, net1,133,539 806,292 
Long-term operating lease liabilities
211,783 41,565 
Other long-term liabilities
2,486 1,520 
Total Liabilities
1,444,420 916,186 
Redeemable noncontrolling interest
59,400 57,100 
Stockholders’ equity:
Common stock, par value of $0.00001 per share; 350,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 101,265,100 and 100,213,985 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively
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Additional paid-in capital
1,597,419 1,902,389 
Accumulated other comprehensive income
33 2,697 
Accumulated deficit
(809,388)(606,592)
Total Stockholders’ Equity
788,065 1,298,495 
Total Liabilities, Redeemable Noncontrolling Interest and Stockholders’ Equity
$2,291,885 $2,271,781 

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Guardant Health, Inc.
Reconciliation of Selected GAAP Measures to Non-GAAP Measures
(unaudited)
(in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
GAAP cost of precision oncology testing$24,887 $17,809 $48,477 $36,000 
Amortization of intangible assets(149)(141)(297)(141)
Stock-based compensation expense and related employer payroll tax payments(888)(394)(1,687)(716)
Non-GAAP cost of precision oncology testing $23,850 $17,274 $46,493 $35,143 
GAAP research and development expense$63,724 $36,319 $119,232 $73,335 
Amortization of intangible assets— (43)— (43)
Stock-based compensation expense and related employer payroll tax payments(4,659)(2,557)(9,050)(5,029)
Acquisition related expenses— — — (8,500)
Non-GAAP research and development expense$59,065 $33,719 $110,182 $59,763 
GAAP sales and marketing expense$47,716 $25,015 $82,054 $50,130 
Stock-based compensation expense and related employer payroll tax payments(3,493)(2,065)(6,427)(3,995)
Non-GAAP sales and marketing expense$44,223 $22,950 $75,627 $46,135 
GAAP general and administrative expense$48,376 $37,186 $116,311 $56,971 
Amortization of intangible assets(336)(349)(669)(578)
Stock-based compensation expense and related employer payroll tax payments(25,735)(20,651)(75,110)(22,562)
Change in fair value of contingent consideration(875)— (875)190 
Acquisition related expenses— — — (1,207)
Non-GAAP general and administrative expense$21,430 $16,186 $39,657 $32,814 
GAAP loss from operations$(97,642)$(54,620)$(205,505)$(89,532)
Amortization of intangible assets485 533 966 762 
Stock-based compensation expense and related employer payroll tax payments34,775 25,667 92,274 32,302 
Change in fair value of contingent consideration875 — 875 (190)
Acquisition related expenses— — — 9,707 
Non-GAAP loss from operations$(61,507)$(28,420)$(111,390)$(46,951)
GAAP net loss$(97,575)$(49,739)$(204,933)$(81,568)
Amortization of intangible assets485 533 966 762 
Stock-based compensation expense and related employer payroll tax payments34,775 25,667 92,274 32,302 
Change in fair value of contingent consideration875 — 875 (190)
Acquisition related expenses— — — 9,707 
Non-GAAP net loss$(61,440)$(23,539)$(110,818)$(38,987)
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Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
GAAP net loss attributable to Guardant Health, Inc. common stockholders$(97,575)$(54,639)$(207,233)$(82,368)
Amortization of intangible assets485 533 966 762 
Stock-based compensation expense and related employer payroll tax payments34,775 25,667 92,274 32,302 
Change in fair value of contingent consideration875 — 875 (190)
Acquisition related expenses— — — 9,707 
Adjustments relating to non-controlling interest
— 4,900 2,300 800 
Non-GAAP net loss attributable to Guardant Health, Inc. common stockholders$(61,440)$(23,539)$(110,818)$(38,987)
GAAP net loss per share attributable to Guardant Health, Inc., common stockholders, basic and diluted$(0.96)$(0.57)$(2.05)$(0.87)
Non-GAAP net loss per share attributable to Guardant Health, Inc., common stockholders, basic and diluted$(0.61)$(0.25)$(1.10)$(0.41)
Weighted-average shares used in computing GAAP and Non-GAAP net loss per share, basic and diluted101,172 96,011 101,064 95,196 



Guardant Health, Inc.
Reconciliation of GAAP Net Loss Attributable to Guardant Health, Inc. Common Stockholders
to Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended June 30,Six Months Ended June 30,
2021202020212020
GAAP net loss attributable to Guardant Health, Inc. common stockholders$(97,575)$(54,639)$(207,233)$(82,368)
Interest income(1,037)(2,640)(2,588)(5,958)
Interest expense644 10 1,290 22 
Other (income) expense, net243 (2,285)533 (2,076)
Provision for income taxes83 34 193 48 
Depreciation and amortization5,627 3,805 10,637 7,109 
Stock-based compensation expense and related employer payroll tax payments34,775 25,667 92,274 32,302 
Change in fair value of contingent consideration875 — 875 (190)
Acquisition related expenses— — — 9,707 
Adjustments relating to non-controlling interest
— 4,900 2,300 800 
Adjusted EBITDA$(56,365)$(25,148)$(101,719)$(40,604)

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