Guardant Health (NASDAQ:GH): Q2 GAAP EPS of -$0.13 beats by $0.22.
• Revenue of $53.98M (+178.5% Y/Y) beats by $18.01M.
Oh my goodness!!
Recently built this out into a full position. GH Doing something right for sure.
Do we need to know more? I guess but for now, celebrate just that growth.
Darth
hey Darth,
Nice work!
That kind of growth merits revisiting the stock a bit. I forget why it fell out of favor a bit…it was always very expensive but also the usual concerns with approvals and/or competition were the main concerns (I think).
What motivated you to get into a full position…was there recent news/changes?
Interested in reading the CC to understand how mgmt views future Q trends from here.
I note in the Press Release that there was an ASC606 accounting change…and we all saw how that dramatically affected AYX earlier in the year.
An SA article from last week:
https://seekingalpha.com/article/4278947-guardant-health-loo…
Today’s ER:
https://seekingalpha.com/pr/17595388-guardant-health-reports…
Total revenue for the second quarter of 2019 was $54.0 million, a 178% increase over the second quarter of 2018
Reported 11,875 tests to clinical customers and 5,285 tests to biopharmaceutical customers in the second quarter of 2019, representing increases of 77% and 112%, respectively, over the second quarter 2018
Guardant Health adopted a new revenue recognition standard (“ASC 606”) effective January 1, 2019, which primarily impacted the company’s recognition of revenue related to patient claims paid by third-party commercial and governmental payors. The company adopted ASC 606 using the modified retrospective method, which means that the total amount of revenue reported for the second quarter 2018 has not been restated in the current financial statements. Instead, the accumulated difference resulting from applying the new revenue standard to all contracts that were not completed as of adoption was recorded to accumulated deficit as of January 1, 2019.
Total revenue was $54.0 million for the three months ended June 30, 2019, a 178% increase from $19.4 million for the corresponding prior year period. Without the adoption of ASC 606, total revenue for the three months ended June 30, 2019 would have been $53.6 million, a 177% increase over the corresponding prior year period. Precision oncology revenue increased 136% driven by higher testing volume and increased revenue per test. There were 11,875 clinical tests and 5,285 biopharmaceutical tests performed during the second quarter of 2019. Development services revenue increased 664% primarily from new projects in 2019 related to companion diagnostic development and regulatory approval services for biopharmaceutical customers.
Gross profit, or total revenue less cost of precision oncology testing and cost of development services, was $37.1 million for the second quarter of 2019, an increase of $27.7 million from $9.4 million in the corresponding prior year period. Gross margin, or gross profit divided by total revenue, was 69% as compared to 49% in the corresponding prior year period.
Cash, cash equivalents and marketable securities were $822.9 million as of June 30, 2019.
2019 Financial Guidance
Guardant Health now expects full year 2019 total revenue to be in the range of $180 million to $190 million, representing 99% to 110% growth over the full year 2018. This compares to the company’s previous full year 2019 total revenue guidance of $145 to $150 million.
Dreamer
I couldn’t believe this incredible earnings report! I just got finished with the conference call. I wish I had more faith in the company last quarter when the shares traded for under 80 but it is what it is. I added this to a 4% position after hours. I was extremely impressed with the strong increased revenue growth and significant change on EPS and gross margin.
One thing I did catch in the conference call that they made clear is that half their revenues are lumpy while half are linear. I forgot which type of test this is.
Also they clearly mentioned that while there was a significant positive change to gross margin this quarter that it was unusual and should not be expected moving forward to next quarter and subsequent quarters. They do want to improve gross margins on average but they clearly said this quarter was unusually positive.
Regardless this was a blowout quarter and I’m excited to see where we go from here!
Dreamer,
https://boards.fool.com/the-gene-sequencing-endgame-guardant…
First took a big dive into GH in December. Then saw that guidance(schmidance) was for like 40% growth and sold out with a huge one day gain. But then realized that GH nor anyone else can predict what GH will return because they are in that tornadic crazy level of innovation and distribution.
The endgame.
In and out. But then with Q1, just totally saw they were kicking butt and had cash and went big in AH before big pop, in 70’s? or something. Added over last few weeks.
Wish I had more. Made a few posts over the months, just see them as real deal of where genomics are taking us to detect and more importantly to what GH does, treat diseases. Others are out there but no one seems to directly overlap each other.
Darth