Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries CareDx Reports First Quarter 2024 Results By: CareDx, Inc. via Business Wire May 09, 2024 at 16:05 PM EDT Raises 2024 Revenue Guidance to $274 to $282 Million CareDx, Inc. (Nasdaq: CDNA) – today reported financial results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights Reported first quarter revenue of $72.0 million. Revenue for Testing Services of $53.8 million, an increase of 15% as compared to the fourth quarter 2023. Grew testing services patients results for the third consecutive quarter to approximately 42,000, an increase of 6% as compared to the fourth quarter 2023. Over 30 oral presentations, posters and two symposia highlighting CareDx’s scientific advancements in heart and lung transplantation presented at the International Society for Heart and Lung Transplantation (ISHLT). SHORE data presented at ISHLT demonstrated that HeartCare® multimodal testing outperforms donor-derived cell-free DNA (dd-cfDNA) testing alone in identifying allograft rejection. Expanded payer coverage by 14 million lives nationwide. Reported first quarter revenue of $9.6 million for Patient and Digital Solutions and $8.6 million for Products, representing year-over-year growth of 12% and 25%, respectively. Ended the quarter with cash, cash equivalents, and marketable securities of approximately $216 million, with no debt. “We set a new baseline in our Testing Services business in the second half of 2023 and are back to delivering sequential growth. I am pleased with the team’s strong performance across all businesses this quarter,” said John W. Hanna, CareDx President and CEO. “CareDx is the leader in transplant patient care and our dedication to serving patients will continue to be our catalyst for growth.” First Quarter 2024 Financial Results Revenue for the three months ended March 31, 2024, was $72.0 million, a decrease of 7% compared with $77.3 million for the first quarter of 2023, and an increase of 10% compared with $65.6 million in the fourth quarter of 2023. Testing Services revenue for the first quarter 2024 was $53.8 million, a decrease of 13% compared with $61.8 million in the same period in 2023, and an increase of 15% compared with $46.7 million in the fourth quarter of 2023. Testing Services revenue benefited from continued revenue cycle management initiatives including unpaid claims from test results delivered in prior quarters. These efforts added approximately $3.7 million in revenue in the first quarter. Total AlloSure® and AlloMap® patient results provided in the first quarter 2024 were approximately 42,000, a decrease of 16% as compared to the same quarter a year ago, and an increase of 6% compared to the fourth quarter of 2023. Patient and Digital Solutions revenue for the first quarter 2024 was $9.6 million, compared to $8.6 million in the same period in 2023, an increase of 12%. Product revenue for the first quarter 2024 was $8.6 million, compared to $6.9 million in the same period in 2023, an increase of 25%. For the first quarter of 2024 net loss was $16.7 million, compared to a net loss of $23.7 million in the first quarter of 2023. Basic and diluted net loss per share in the first quarter of 2024 was $0.32, compared to basic and diluted net loss per share of $0.44 in the first quarter of 2023. Non-GAAP net loss was $1.4 million in the first quarter of 2024, compared to a non-GAAP net loss of $5.8 million in the first quarter of 2023. Basic and diluted non-GAAP net loss per share was $0.03 in the first quarter of 2024, compared to a basic and diluted non-GAAP net loss per share of $0.11 in the first quarter of 2023. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.9 million, compared to an adjusted EBITDA loss of $6.4 million in the first quarter of 2023, and $10.3 million adjusted EBITDA loss in the fourth quarter of 2023. CareDx delivered strong financial and operational performance in the first quarter and is raising guidance for the full year 2024 revenue which is expected to be in the range of $274 million to $282 million. About CareDx – The Transplant Company CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com. Forward Looking Statements This press release includes forward-looking statements, including expectations regarding CareDx’s 2024 revenue, CareDx’s focus in 2024 and CareDx’s proposed path to profitability. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, all of which are difficult to predict and many of which are beyond our control, including general economic and market factors, among others discussed in CareDx’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed by CareDx with the SEC on February 28, 2024, the quarterly report on Form 10-Q for the quarter ended March 31, 2024 filed by CareDx with the SEC on May 9, 2024 and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures CareDx 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 testing services, non-GAAP cost of product, non-GAAP cost of patient and digital solutions, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other income, net, non-GAAP income tax expense, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP net loss, non-GAAP basic and diluted net loss per share, adjusted EBITDA and non-GAAP operating expenses. We define non-GAAP net loss and per share results as the GAAP net loss and per share results excluding the impacts of stock-based compensation; changes in estimated fair value of contingent consideration; acquisition-related impairment charges and amortization of purchased intangible assets and related tax effects; costs involved with completing an acquisition; unrealized loss on investments; restructuring charges and certain other charges. We define adjusted EBITDA as non-GAAP net loss before net interest income, income tax (benefit) expense, depreciation and other expense, net. We are presenting these non-GAAP financial measures to assist investors in assessing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods. Management believes this non-GAAP information is useful for investors, when considered in conjunction with CareDx’s GAAP financial statements, because management uses such information internally for its operating, budgeting, and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of CareDx’s operating results as reported under GAAP. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not necessarily comparable to similarly titled measures presented by other companies. A reconciliation between GAAP and non-GAAP financial information is provided immediately following the financial tables. CareDx, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenue: Testing services revenue $ 53,837 $ 61,784 Product revenue 8,594 6,861 Patient and digital solutions revenue 9,618 8,617 Total revenue 72,049 77,262 Operating expenses: Cost of testing services 13,632 15,296 Cost of product 5,344 4,066 Cost of patient and digital solutions 6,958 6,604 Research and development 18,711 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total operating expenses 91,386 101,586 Loss from operations (19,337 ) (24,324 ) Other income: Interest income, net 2,885 2,666 Change in estimated fair value of common stock warrant liability — 7 Other expense, net (290 ) (1,974 ) Total other income 2,595 699 Loss before income taxes (16,742 ) (23,625 ) Income tax benefit (expense) 83 (124 ) Net loss $ (16,659 ) $ (23,749 ) Net loss per share: Basic $ (0.32 ) $ (0.44 ) Diluted $ (0.32 ) $ (0.44 ) Weighted-average shares used to compute net loss per share: Basic 51,692,358 53,643,216 Diluted 51,692,358 53,643,216 CareDx, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 93,299 $ 82,197 Marketable securities 122,622 153,221 Accounts receivable 60,149 51,061 Inventory 20,130 19,471 Prepaid and other current assets 6,895 7,763 Total current assets 303,095 313,713 Property and equipment, net 34,411 35,246 Operating leases right-of-use assets 28,591 29,891 Intangible assets, net 43,330 45,701 Goodwill 40,336 40,336 Restricted cash 583 586 Other assets 2,060 1,353 Total assets $ 452,406 $ 466,826 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 9,976 $ 12,872 Accrued compensation 14,565 19,703 Accrued and other liabilities 45,670 45,497 Total current liabilities 70,211 78,072 Deferred tax liability 43 136 Deferred payments for intangible assets 1,348 2,461 Operating lease liability, less current portion 26,893 28,278 Other liabilities 97,686 96,551 Total liabilities 196,181 205,498 Commitments and contingencies Stockholders’ equity: Common stock 49 49 Additional paid-in capital 959,734 946,511 Accumulated other comprehensive loss (8,108 ) (6,963 ) Accumulated deficit (695,450 ) (678,269 ) Total stockholders’ equity 256,225 261,328 Total liabilities and stockholders’ equity $ 452,406 $ 466,826 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Cost of testing services reconciliation: GAAP cost of testing services $ 13,632 $ 15,296 Stock-based compensation expense (457 ) (479 ) Acquisition related-amortization of purchased intangibles (329 ) (329 ) Non-GAAP cost of testing services $ 12,846 $ 14,488 Cost of product reconciliation: GAAP cost of product $ 5,344 $ 4,066 Stock-based compensation expense (317 ) (360 ) Acquisition related-amortization of purchased intangibles (420 ) (418 ) Non-GAAP cost of product $ 4,607 $ 3,288 Cost of patient and digital solutions reconciliation: GAAP cost of patient and digital solutions $ 6,958 $ 6,604 Stock-based compensation expense (372 ) (402 ) Acquisition related-amortization of purchased intangibles (271 ) (248 ) Other income 5 — Non-GAAP cost of patient and digital solutions $ 6,320 $ 5,954 Research and development expenses reconciliation: GAAP research and development expenses $ 18,711 $ 24,357 Stock-based compensation expense (1,760 ) (1,962 ) Other charges (25 ) — Non-GAAP research and development expenses $ 16,926 $ 22,395 Sales and marketing expenses reconciliation: GAAP sales and marketing expenses $ 19,830 $ 23,231 Stock-based compensation expense (3,044 ) (3,737 ) Acquisition related-amortization of purchased intangibles (633 ) (595 ) Other charges (8 ) — Non-GAAP sales and marketing expenses $ 16,145 $ 18,899 General and administrative expenses reconciliation: GAAP general and administrative expenses $ 26,911 $ 28,032 Stock-based compensation expense (7,394 ) (6,814 ) Change in estimated fair value of contingent consideration (319 ) (421 ) Acquisition related fees and expenses (35 ) (284 ) Restructuring charges — (58 ) Other income 66 — Non-GAAP general and administrative expenses $ 19,229 $ 20,455 Total other income (expense) reconciliation: GAAP other income, net $ 2,595 $ 699 Unrealized loss on long-term marketable equity securities — 905 Asset impairments and write-downs — 1,000 Other charges — 20 Non-GAAP other income, net $ 2,595 $ 2,624 Income tax benefit (expense) reconciliation: GAAP income tax benefit (expense) $ 83 $ (124 ) Tax effect related to amortization of purchased intangibles (102 ) (101 ) Non-GAAP income tax expense $ (19 ) $ (225 ) CareDx, Inc. GAAP and Non-GAAP Operating Expenses (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 GAAP operating expenses: Research and development $ 18,711 $ 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total GAAP operating expenses $ 65,452 $ 75,620 Non-GAAP operating expenses: Research and development $ 16,926 $ 22,395 Sales and marketing 16,145 18,899 General and administrative 19,229 20,455 Total Non-GAAP operating expenses $ 52,300 $ 61,749 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Unaudited) (In thousands, except percentages) Three Months Ended March 31, 2024 2023 Total revenue $ 72,049 $ 77,262 GAAP cost of sales 25,934 25,966 GAAP gross profit 46,115 51,296 Stock-based compensation expense 1,146 1,241 Other income (5 ) — Acquisition related-amortization of purchased intangibles 1,020 995 Non-GAAP gross profit $ 48,276 $ 53,532 Non-GAAP gross margin % 67 % 69 % CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 GAAP net loss $ (16,659 ) $ (23,749 ) Stock-based compensation expense 13,344 13,754 Acquisition related-amortization of purchased intangibles 1,653 1,590 Acquisition related fees and expenses 35 284 Change in estimated fair value of contingent consideration 319 421 Other income and charges (38 ) 20 Tax effect related to amortization of purchased intangibles (102 ) (101 ) Asset impairments and write-downs — 1,000 Unrealized loss on long-term marketable equity securities — 905 Restructuring charges — 58 Non-GAAP net loss $ (1,448 ) $ (5,818 ) GAAP basic and diluted net loss per share $ (0.32 ) $ (0.44 ) Non-GAAP basic net loss per share $ (0.03 ) $ (0.11 ) Non-GAAP diluted net loss per share $ (0.03 ) $ (0.11 ) Shares used in computing non-GAAP basic net loss per share 51,692,358 53,643,216 Shares used in computing non-GAAP diluted net loss per share 51,692,358 53,643,216 CareDx, Inc. Reconciliation of Non-GAAP to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Non-GAAP net loss $ (1,448 ) $ (5,818 ) Interest income (2,885 ) (2,666 ) Income tax expense 19 225 Depreciation expense 2,168 1,808 Other expense, net 290 36 Adjusted EBITDA (1,856 ) (6,415 ) Unrecognized AlloSure Kidney Medicare claims — 8,912 Adjusted EBITDA assuming recognition of paused claims $ (1,856 ) $ 2,497 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509171418/en/Contacts CareDx, Inc. Media Relations Anna Czene 818-731-2203 aczene@caredx.com Investor Relations Greg Chodaczek investor@caredx.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
CareDx Reports First Quarter 2024 Results By: CareDx, Inc. via Business Wire May 09, 2024 at 16:05 PM EDT Raises 2024 Revenue Guidance to $274 to $282 Million CareDx, Inc. (Nasdaq: CDNA) – today reported financial results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights Reported first quarter revenue of $72.0 million. Revenue for Testing Services of $53.8 million, an increase of 15% as compared to the fourth quarter 2023. Grew testing services patients results for the third consecutive quarter to approximately 42,000, an increase of 6% as compared to the fourth quarter 2023. Over 30 oral presentations, posters and two symposia highlighting CareDx’s scientific advancements in heart and lung transplantation presented at the International Society for Heart and Lung Transplantation (ISHLT). SHORE data presented at ISHLT demonstrated that HeartCare® multimodal testing outperforms donor-derived cell-free DNA (dd-cfDNA) testing alone in identifying allograft rejection. Expanded payer coverage by 14 million lives nationwide. Reported first quarter revenue of $9.6 million for Patient and Digital Solutions and $8.6 million for Products, representing year-over-year growth of 12% and 25%, respectively. Ended the quarter with cash, cash equivalents, and marketable securities of approximately $216 million, with no debt. “We set a new baseline in our Testing Services business in the second half of 2023 and are back to delivering sequential growth. I am pleased with the team’s strong performance across all businesses this quarter,” said John W. Hanna, CareDx President and CEO. “CareDx is the leader in transplant patient care and our dedication to serving patients will continue to be our catalyst for growth.” First Quarter 2024 Financial Results Revenue for the three months ended March 31, 2024, was $72.0 million, a decrease of 7% compared with $77.3 million for the first quarter of 2023, and an increase of 10% compared with $65.6 million in the fourth quarter of 2023. Testing Services revenue for the first quarter 2024 was $53.8 million, a decrease of 13% compared with $61.8 million in the same period in 2023, and an increase of 15% compared with $46.7 million in the fourth quarter of 2023. Testing Services revenue benefited from continued revenue cycle management initiatives including unpaid claims from test results delivered in prior quarters. These efforts added approximately $3.7 million in revenue in the first quarter. Total AlloSure® and AlloMap® patient results provided in the first quarter 2024 were approximately 42,000, a decrease of 16% as compared to the same quarter a year ago, and an increase of 6% compared to the fourth quarter of 2023. Patient and Digital Solutions revenue for the first quarter 2024 was $9.6 million, compared to $8.6 million in the same period in 2023, an increase of 12%. Product revenue for the first quarter 2024 was $8.6 million, compared to $6.9 million in the same period in 2023, an increase of 25%. For the first quarter of 2024 net loss was $16.7 million, compared to a net loss of $23.7 million in the first quarter of 2023. Basic and diluted net loss per share in the first quarter of 2024 was $0.32, compared to basic and diluted net loss per share of $0.44 in the first quarter of 2023. Non-GAAP net loss was $1.4 million in the first quarter of 2024, compared to a non-GAAP net loss of $5.8 million in the first quarter of 2023. Basic and diluted non-GAAP net loss per share was $0.03 in the first quarter of 2024, compared to a basic and diluted non-GAAP net loss per share of $0.11 in the first quarter of 2023. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.9 million, compared to an adjusted EBITDA loss of $6.4 million in the first quarter of 2023, and $10.3 million adjusted EBITDA loss in the fourth quarter of 2023. CareDx delivered strong financial and operational performance in the first quarter and is raising guidance for the full year 2024 revenue which is expected to be in the range of $274 million to $282 million. About CareDx – The Transplant Company CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com. Forward Looking Statements This press release includes forward-looking statements, including expectations regarding CareDx’s 2024 revenue, CareDx’s focus in 2024 and CareDx’s proposed path to profitability. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, all of which are difficult to predict and many of which are beyond our control, including general economic and market factors, among others discussed in CareDx’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed by CareDx with the SEC on February 28, 2024, the quarterly report on Form 10-Q for the quarter ended March 31, 2024 filed by CareDx with the SEC on May 9, 2024 and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures CareDx 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 testing services, non-GAAP cost of product, non-GAAP cost of patient and digital solutions, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other income, net, non-GAAP income tax expense, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP net loss, non-GAAP basic and diluted net loss per share, adjusted EBITDA and non-GAAP operating expenses. We define non-GAAP net loss and per share results as the GAAP net loss and per share results excluding the impacts of stock-based compensation; changes in estimated fair value of contingent consideration; acquisition-related impairment charges and amortization of purchased intangible assets and related tax effects; costs involved with completing an acquisition; unrealized loss on investments; restructuring charges and certain other charges. We define adjusted EBITDA as non-GAAP net loss before net interest income, income tax (benefit) expense, depreciation and other expense, net. We are presenting these non-GAAP financial measures to assist investors in assessing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods. Management believes this non-GAAP information is useful for investors, when considered in conjunction with CareDx’s GAAP financial statements, because management uses such information internally for its operating, budgeting, and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of CareDx’s operating results as reported under GAAP. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not necessarily comparable to similarly titled measures presented by other companies. A reconciliation between GAAP and non-GAAP financial information is provided immediately following the financial tables. CareDx, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenue: Testing services revenue $ 53,837 $ 61,784 Product revenue 8,594 6,861 Patient and digital solutions revenue 9,618 8,617 Total revenue 72,049 77,262 Operating expenses: Cost of testing services 13,632 15,296 Cost of product 5,344 4,066 Cost of patient and digital solutions 6,958 6,604 Research and development 18,711 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total operating expenses 91,386 101,586 Loss from operations (19,337 ) (24,324 ) Other income: Interest income, net 2,885 2,666 Change in estimated fair value of common stock warrant liability — 7 Other expense, net (290 ) (1,974 ) Total other income 2,595 699 Loss before income taxes (16,742 ) (23,625 ) Income tax benefit (expense) 83 (124 ) Net loss $ (16,659 ) $ (23,749 ) Net loss per share: Basic $ (0.32 ) $ (0.44 ) Diluted $ (0.32 ) $ (0.44 ) Weighted-average shares used to compute net loss per share: Basic 51,692,358 53,643,216 Diluted 51,692,358 53,643,216 CareDx, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 93,299 $ 82,197 Marketable securities 122,622 153,221 Accounts receivable 60,149 51,061 Inventory 20,130 19,471 Prepaid and other current assets 6,895 7,763 Total current assets 303,095 313,713 Property and equipment, net 34,411 35,246 Operating leases right-of-use assets 28,591 29,891 Intangible assets, net 43,330 45,701 Goodwill 40,336 40,336 Restricted cash 583 586 Other assets 2,060 1,353 Total assets $ 452,406 $ 466,826 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 9,976 $ 12,872 Accrued compensation 14,565 19,703 Accrued and other liabilities 45,670 45,497 Total current liabilities 70,211 78,072 Deferred tax liability 43 136 Deferred payments for intangible assets 1,348 2,461 Operating lease liability, less current portion 26,893 28,278 Other liabilities 97,686 96,551 Total liabilities 196,181 205,498 Commitments and contingencies Stockholders’ equity: Common stock 49 49 Additional paid-in capital 959,734 946,511 Accumulated other comprehensive loss (8,108 ) (6,963 ) Accumulated deficit (695,450 ) (678,269 ) Total stockholders’ equity 256,225 261,328 Total liabilities and stockholders’ equity $ 452,406 $ 466,826 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Cost of testing services reconciliation: GAAP cost of testing services $ 13,632 $ 15,296 Stock-based compensation expense (457 ) (479 ) Acquisition related-amortization of purchased intangibles (329 ) (329 ) Non-GAAP cost of testing services $ 12,846 $ 14,488 Cost of product reconciliation: GAAP cost of product $ 5,344 $ 4,066 Stock-based compensation expense (317 ) (360 ) Acquisition related-amortization of purchased intangibles (420 ) (418 ) Non-GAAP cost of product $ 4,607 $ 3,288 Cost of patient and digital solutions reconciliation: GAAP cost of patient and digital solutions $ 6,958 $ 6,604 Stock-based compensation expense (372 ) (402 ) Acquisition related-amortization of purchased intangibles (271 ) (248 ) Other income 5 — Non-GAAP cost of patient and digital solutions $ 6,320 $ 5,954 Research and development expenses reconciliation: GAAP research and development expenses $ 18,711 $ 24,357 Stock-based compensation expense (1,760 ) (1,962 ) Other charges (25 ) — Non-GAAP research and development expenses $ 16,926 $ 22,395 Sales and marketing expenses reconciliation: GAAP sales and marketing expenses $ 19,830 $ 23,231 Stock-based compensation expense (3,044 ) (3,737 ) Acquisition related-amortization of purchased intangibles (633 ) (595 ) Other charges (8 ) — Non-GAAP sales and marketing expenses $ 16,145 $ 18,899 General and administrative expenses reconciliation: GAAP general and administrative expenses $ 26,911 $ 28,032 Stock-based compensation expense (7,394 ) (6,814 ) Change in estimated fair value of contingent consideration (319 ) (421 ) Acquisition related fees and expenses (35 ) (284 ) Restructuring charges — (58 ) Other income 66 — Non-GAAP general and administrative expenses $ 19,229 $ 20,455 Total other income (expense) reconciliation: GAAP other income, net $ 2,595 $ 699 Unrealized loss on long-term marketable equity securities — 905 Asset impairments and write-downs — 1,000 Other charges — 20 Non-GAAP other income, net $ 2,595 $ 2,624 Income tax benefit (expense) reconciliation: GAAP income tax benefit (expense) $ 83 $ (124 ) Tax effect related to amortization of purchased intangibles (102 ) (101 ) Non-GAAP income tax expense $ (19 ) $ (225 ) CareDx, Inc. GAAP and Non-GAAP Operating Expenses (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 GAAP operating expenses: Research and development $ 18,711 $ 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total GAAP operating expenses $ 65,452 $ 75,620 Non-GAAP operating expenses: Research and development $ 16,926 $ 22,395 Sales and marketing 16,145 18,899 General and administrative 19,229 20,455 Total Non-GAAP operating expenses $ 52,300 $ 61,749 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Unaudited) (In thousands, except percentages) Three Months Ended March 31, 2024 2023 Total revenue $ 72,049 $ 77,262 GAAP cost of sales 25,934 25,966 GAAP gross profit 46,115 51,296 Stock-based compensation expense 1,146 1,241 Other income (5 ) — Acquisition related-amortization of purchased intangibles 1,020 995 Non-GAAP gross profit $ 48,276 $ 53,532 Non-GAAP gross margin % 67 % 69 % CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 GAAP net loss $ (16,659 ) $ (23,749 ) Stock-based compensation expense 13,344 13,754 Acquisition related-amortization of purchased intangibles 1,653 1,590 Acquisition related fees and expenses 35 284 Change in estimated fair value of contingent consideration 319 421 Other income and charges (38 ) 20 Tax effect related to amortization of purchased intangibles (102 ) (101 ) Asset impairments and write-downs — 1,000 Unrealized loss on long-term marketable equity securities — 905 Restructuring charges — 58 Non-GAAP net loss $ (1,448 ) $ (5,818 ) GAAP basic and diluted net loss per share $ (0.32 ) $ (0.44 ) Non-GAAP basic net loss per share $ (0.03 ) $ (0.11 ) Non-GAAP diluted net loss per share $ (0.03 ) $ (0.11 ) Shares used in computing non-GAAP basic net loss per share 51,692,358 53,643,216 Shares used in computing non-GAAP diluted net loss per share 51,692,358 53,643,216 CareDx, Inc. Reconciliation of Non-GAAP to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Non-GAAP net loss $ (1,448 ) $ (5,818 ) Interest income (2,885 ) (2,666 ) Income tax expense 19 225 Depreciation expense 2,168 1,808 Other expense, net 290 36 Adjusted EBITDA (1,856 ) (6,415 ) Unrecognized AlloSure Kidney Medicare claims — 8,912 Adjusted EBITDA assuming recognition of paused claims $ (1,856 ) $ 2,497 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509171418/en/Contacts CareDx, Inc. Media Relations Anna Czene 818-731-2203 aczene@caredx.com Investor Relations Greg Chodaczek investor@caredx.com
CareDx, Inc. (Nasdaq: CDNA) – today reported financial results for the first quarter ended March 31, 2024. First Quarter 2024 Highlights Reported first quarter revenue of $72.0 million. Revenue for Testing Services of $53.8 million, an increase of 15% as compared to the fourth quarter 2023. Grew testing services patients results for the third consecutive quarter to approximately 42,000, an increase of 6% as compared to the fourth quarter 2023. Over 30 oral presentations, posters and two symposia highlighting CareDx’s scientific advancements in heart and lung transplantation presented at the International Society for Heart and Lung Transplantation (ISHLT). SHORE data presented at ISHLT demonstrated that HeartCare® multimodal testing outperforms donor-derived cell-free DNA (dd-cfDNA) testing alone in identifying allograft rejection. Expanded payer coverage by 14 million lives nationwide. Reported first quarter revenue of $9.6 million for Patient and Digital Solutions and $8.6 million for Products, representing year-over-year growth of 12% and 25%, respectively. Ended the quarter with cash, cash equivalents, and marketable securities of approximately $216 million, with no debt. “We set a new baseline in our Testing Services business in the second half of 2023 and are back to delivering sequential growth. I am pleased with the team’s strong performance across all businesses this quarter,” said John W. Hanna, CareDx President and CEO. “CareDx is the leader in transplant patient care and our dedication to serving patients will continue to be our catalyst for growth.” First Quarter 2024 Financial Results Revenue for the three months ended March 31, 2024, was $72.0 million, a decrease of 7% compared with $77.3 million for the first quarter of 2023, and an increase of 10% compared with $65.6 million in the fourth quarter of 2023. Testing Services revenue for the first quarter 2024 was $53.8 million, a decrease of 13% compared with $61.8 million in the same period in 2023, and an increase of 15% compared with $46.7 million in the fourth quarter of 2023. Testing Services revenue benefited from continued revenue cycle management initiatives including unpaid claims from test results delivered in prior quarters. These efforts added approximately $3.7 million in revenue in the first quarter. Total AlloSure® and AlloMap® patient results provided in the first quarter 2024 were approximately 42,000, a decrease of 16% as compared to the same quarter a year ago, and an increase of 6% compared to the fourth quarter of 2023. Patient and Digital Solutions revenue for the first quarter 2024 was $9.6 million, compared to $8.6 million in the same period in 2023, an increase of 12%. Product revenue for the first quarter 2024 was $8.6 million, compared to $6.9 million in the same period in 2023, an increase of 25%. For the first quarter of 2024 net loss was $16.7 million, compared to a net loss of $23.7 million in the first quarter of 2023. Basic and diluted net loss per share in the first quarter of 2024 was $0.32, compared to basic and diluted net loss per share of $0.44 in the first quarter of 2023. Non-GAAP net loss was $1.4 million in the first quarter of 2024, compared to a non-GAAP net loss of $5.8 million in the first quarter of 2023. Basic and diluted non-GAAP net loss per share was $0.03 in the first quarter of 2024, compared to a basic and diluted non-GAAP net loss per share of $0.11 in the first quarter of 2023. Adjusted EBITDA for the first quarter of 2024 was a loss of $1.9 million, compared to an adjusted EBITDA loss of $6.4 million in the first quarter of 2023, and $10.3 million adjusted EBITDA loss in the fourth quarter of 2023. CareDx delivered strong financial and operational performance in the first quarter and is raising guidance for the full year 2024 revenue which is expected to be in the range of $274 million to $282 million. About CareDx – The Transplant Company CareDx, Inc., headquartered in Brisbane, California, is a leading precision medicine solutions company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers. CareDx offers testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey and is the leading provider of genomics-based information for transplant patients. For more information, please visit: www.CareDx.com. Forward Looking Statements This press release includes forward-looking statements, including expectations regarding CareDx’s 2024 revenue, CareDx’s focus in 2024 and CareDx’s proposed path to profitability. These forward-looking statements are based upon information that is currently available to CareDx and its current expectations, speak only as of the date hereof, and are subject to numerous risks and uncertainties, all of which are difficult to predict and many of which are beyond our control, including general economic and market factors, among others discussed in CareDx’s filings with the Securities and Exchange Commission (the “SEC”), including, but not limited to, the Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed by CareDx with the SEC on February 28, 2024, the quarterly report on Form 10-Q for the quarter ended March 31, 2024 filed by CareDx with the SEC on May 9, 2024 and other reports that CareDx has filed with the SEC. Any of these may cause CareDx’s actual results, performance, or achievements to differ materially and adversely from those anticipated or implied by CareDx’s forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise. Use of Non-GAAP Financial Measures CareDx 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 testing services, non-GAAP cost of product, non-GAAP cost of patient and digital solutions, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other income, net, non-GAAP income tax expense, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP net loss, non-GAAP basic and diluted net loss per share, adjusted EBITDA and non-GAAP operating expenses. We define non-GAAP net loss and per share results as the GAAP net loss and per share results excluding the impacts of stock-based compensation; changes in estimated fair value of contingent consideration; acquisition-related impairment charges and amortization of purchased intangible assets and related tax effects; costs involved with completing an acquisition; unrealized loss on investments; restructuring charges and certain other charges. We define adjusted EBITDA as non-GAAP net loss before net interest income, income tax (benefit) expense, depreciation and other expense, net. We are presenting these non-GAAP financial measures to assist investors in assessing our operating results through the eyes of management and because we believe that these measures provide an additional tool for investors to use in comparing our core business operating results over multiple periods. Management believes this non-GAAP information is useful for investors, when considered in conjunction with CareDx’s GAAP financial statements, because management uses such information internally for its operating, budgeting, and financial planning purposes. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of CareDx’s operating results as reported under GAAP. These non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not necessarily comparable to similarly titled measures presented by other companies. A reconciliation between GAAP and non-GAAP financial information is provided immediately following the financial tables. CareDx, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 Revenue: Testing services revenue $ 53,837 $ 61,784 Product revenue 8,594 6,861 Patient and digital solutions revenue 9,618 8,617 Total revenue 72,049 77,262 Operating expenses: Cost of testing services 13,632 15,296 Cost of product 5,344 4,066 Cost of patient and digital solutions 6,958 6,604 Research and development 18,711 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total operating expenses 91,386 101,586 Loss from operations (19,337 ) (24,324 ) Other income: Interest income, net 2,885 2,666 Change in estimated fair value of common stock warrant liability — 7 Other expense, net (290 ) (1,974 ) Total other income 2,595 699 Loss before income taxes (16,742 ) (23,625 ) Income tax benefit (expense) 83 (124 ) Net loss $ (16,659 ) $ (23,749 ) Net loss per share: Basic $ (0.32 ) $ (0.44 ) Diluted $ (0.32 ) $ (0.44 ) Weighted-average shares used to compute net loss per share: Basic 51,692,358 53,643,216 Diluted 51,692,358 53,643,216 CareDx, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) March 31, 2024 December 31, 2023 Assets Current assets: Cash and cash equivalents $ 93,299 $ 82,197 Marketable securities 122,622 153,221 Accounts receivable 60,149 51,061 Inventory 20,130 19,471 Prepaid and other current assets 6,895 7,763 Total current assets 303,095 313,713 Property and equipment, net 34,411 35,246 Operating leases right-of-use assets 28,591 29,891 Intangible assets, net 43,330 45,701 Goodwill 40,336 40,336 Restricted cash 583 586 Other assets 2,060 1,353 Total assets $ 452,406 $ 466,826 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 9,976 $ 12,872 Accrued compensation 14,565 19,703 Accrued and other liabilities 45,670 45,497 Total current liabilities 70,211 78,072 Deferred tax liability 43 136 Deferred payments for intangible assets 1,348 2,461 Operating lease liability, less current portion 26,893 28,278 Other liabilities 97,686 96,551 Total liabilities 196,181 205,498 Commitments and contingencies Stockholders’ equity: Common stock 49 49 Additional paid-in capital 959,734 946,511 Accumulated other comprehensive loss (8,108 ) (6,963 ) Accumulated deficit (695,450 ) (678,269 ) Total stockholders’ equity 256,225 261,328 Total liabilities and stockholders’ equity $ 452,406 $ 466,826 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Cost of testing services reconciliation: GAAP cost of testing services $ 13,632 $ 15,296 Stock-based compensation expense (457 ) (479 ) Acquisition related-amortization of purchased intangibles (329 ) (329 ) Non-GAAP cost of testing services $ 12,846 $ 14,488 Cost of product reconciliation: GAAP cost of product $ 5,344 $ 4,066 Stock-based compensation expense (317 ) (360 ) Acquisition related-amortization of purchased intangibles (420 ) (418 ) Non-GAAP cost of product $ 4,607 $ 3,288 Cost of patient and digital solutions reconciliation: GAAP cost of patient and digital solutions $ 6,958 $ 6,604 Stock-based compensation expense (372 ) (402 ) Acquisition related-amortization of purchased intangibles (271 ) (248 ) Other income 5 — Non-GAAP cost of patient and digital solutions $ 6,320 $ 5,954 Research and development expenses reconciliation: GAAP research and development expenses $ 18,711 $ 24,357 Stock-based compensation expense (1,760 ) (1,962 ) Other charges (25 ) — Non-GAAP research and development expenses $ 16,926 $ 22,395 Sales and marketing expenses reconciliation: GAAP sales and marketing expenses $ 19,830 $ 23,231 Stock-based compensation expense (3,044 ) (3,737 ) Acquisition related-amortization of purchased intangibles (633 ) (595 ) Other charges (8 ) — Non-GAAP sales and marketing expenses $ 16,145 $ 18,899 General and administrative expenses reconciliation: GAAP general and administrative expenses $ 26,911 $ 28,032 Stock-based compensation expense (7,394 ) (6,814 ) Change in estimated fair value of contingent consideration (319 ) (421 ) Acquisition related fees and expenses (35 ) (284 ) Restructuring charges — (58 ) Other income 66 — Non-GAAP general and administrative expenses $ 19,229 $ 20,455 Total other income (expense) reconciliation: GAAP other income, net $ 2,595 $ 699 Unrealized loss on long-term marketable equity securities — 905 Asset impairments and write-downs — 1,000 Other charges — 20 Non-GAAP other income, net $ 2,595 $ 2,624 Income tax benefit (expense) reconciliation: GAAP income tax benefit (expense) $ 83 $ (124 ) Tax effect related to amortization of purchased intangibles (102 ) (101 ) Non-GAAP income tax expense $ (19 ) $ (225 ) CareDx, Inc. GAAP and Non-GAAP Operating Expenses (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 GAAP operating expenses: Research and development $ 18,711 $ 24,357 Sales and marketing 19,830 23,231 General and administrative 26,911 28,032 Total GAAP operating expenses $ 65,452 $ 75,620 Non-GAAP operating expenses: Research and development $ 16,926 $ 22,395 Sales and marketing 16,145 18,899 General and administrative 19,229 20,455 Total Non-GAAP operating expenses $ 52,300 $ 61,749 CareDx, Inc. Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin (Unaudited) (In thousands, except percentages) Three Months Ended March 31, 2024 2023 Total revenue $ 72,049 $ 77,262 GAAP cost of sales 25,934 25,966 GAAP gross profit 46,115 51,296 Stock-based compensation expense 1,146 1,241 Other income (5 ) — Acquisition related-amortization of purchased intangibles 1,020 995 Non-GAAP gross profit $ 48,276 $ 53,532 Non-GAAP gross margin % 67 % 69 % CareDx, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) Three Months Ended March 31, 2024 2023 GAAP net loss $ (16,659 ) $ (23,749 ) Stock-based compensation expense 13,344 13,754 Acquisition related-amortization of purchased intangibles 1,653 1,590 Acquisition related fees and expenses 35 284 Change in estimated fair value of contingent consideration 319 421 Other income and charges (38 ) 20 Tax effect related to amortization of purchased intangibles (102 ) (101 ) Asset impairments and write-downs — 1,000 Unrealized loss on long-term marketable equity securities — 905 Restructuring charges — 58 Non-GAAP net loss $ (1,448 ) $ (5,818 ) GAAP basic and diluted net loss per share $ (0.32 ) $ (0.44 ) Non-GAAP basic net loss per share $ (0.03 ) $ (0.11 ) Non-GAAP diluted net loss per share $ (0.03 ) $ (0.11 ) Shares used in computing non-GAAP basic net loss per share 51,692,358 53,643,216 Shares used in computing non-GAAP diluted net loss per share 51,692,358 53,643,216 CareDx, Inc. Reconciliation of Non-GAAP to Adjusted EBITDA (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Non-GAAP net loss $ (1,448 ) $ (5,818 ) Interest income (2,885 ) (2,666 ) Income tax expense 19 225 Depreciation expense 2,168 1,808 Other expense, net 290 36 Adjusted EBITDA (1,856 ) (6,415 ) Unrecognized AlloSure Kidney Medicare claims — 8,912 Adjusted EBITDA assuming recognition of paused claims $ (1,856 ) $ 2,497 View source version on businesswire.com: https://www.businesswire.com/news/home/20240509171418/en/
CareDx, Inc. Media Relations Anna Czene 818-731-2203 aczene@caredx.com Investor Relations Greg Chodaczek investor@caredx.com