CareDx Reports First Quarter 2020 Results
First Quarter 2020 and Recent Highlights:
- Achieved total revenue of
$38.4 million for the three months endedMarch 31, 2020 , increasing 48% year-over-year - Provided over 15,000 AlloSure Kidney and AlloMap Heart patient results
- Recorded seventh straight quarter of positive adjusted EBITDA
- Strengthened balance sheet by increasing cash to approximately
$80 million - Successfully introduced RemoTraC, a service to provide at-home blood draws for transplant patients
“We are very pleased with our first quarter results, which reflect strong execution and the continued growth and penetration of our innovative and intelligent solutions for transplant patients and caregivers,” said
First Quarter 2020 Financial Results
Revenue for the three months ended
For the first quarter of 2020, the net loss was
Non-GAAP net income was
Adjusted EBITDA for the first quarter of 2020 was a gain of
Cash and cash equivalents were
For additional information regarding non-GAAP financial measures discussed herein, please see “Use of Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures,” and “Reconciliation of GAAP to Non-GAAP Adjusted EBITDA Financial Measures” below.
2020 Guidance
Due to the continued uncertainties from the impact of COVID-19,
About
Forward-Looking Statements
This press release includes forward-looking statements, including expectations regarding the achievement of our financial and operational goals and our prospects. These forward-looking statements are based upon information that is currently available to
Use of Non-GAAP Financial Measures
Investor Relations Contact
347-620-7010
investor@caredx.com
Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share data) |
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Three Months Ended |
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2020 | 2019 | ||||||
Revenue: | |||||||
Testing services revenue | $ | 31,442 | $ | 21,518 | |||
Product revenue | 4,695 | 4,433 | |||||
Digital and other revenue | 2,243 | 31 | |||||
Total revenue | 38,380 | 25,982 | |||||
Cost of revenue | 12,392 | 9,733 | |||||
Gross profit | 25,988 | 16,249 | |||||
Operating expenses: | |||||||
Research and development | 10,013 | 5,614 | |||||
Sales and marketing | 11,723 | 6,925 | |||||
General and administrative | 10,003 | 9,106 | |||||
Total operating expenses | 31,739 | 21,645 | |||||
Loss from operations | (5,751 | ) | (5,396 | ) | |||
Other income (expense): | |||||||
Interest income, net | 96 | 342 | |||||
Change in estimated fair value of common stock warrant liability | (405 | ) | (3,009 | ) | |||
Other expense, net | (63 | ) | (74 | ) | |||
Total other expense | (372 | ) | (2,741 | ) | |||
Loss before income taxes | (6,123 | ) | (8,137 | ) | |||
Income tax benefit | 300 | 606 | |||||
Net loss | $ | (5,823 | ) | $ | (7,531 | ) | |
Net loss per share: | |||||||
Basic | $ | (0.14 | ) | $ | (0.18 | ) | |
Diluted | $ | (0.14 | ) | $ | (0.18 | ) | |
Weighted-average shares used to compute net loss per share: | |||||||
Basic | 42,823,427 | 41,611,399 | |||||
Diluted | 42,823,427 | 41,611,399 |
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
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As of |
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2020 | 2019 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 32,191 | $ | 38,223 | |||
Accounts receivable | 22,841 | 24,057 | |||||
Inventory | 6,947 | 6,014 | |||||
Prepaid and other current assets | 4,089 | 3,628 | |||||
Total current assets | 66,068 | 71,922 | |||||
Property and equipment, net | 5,501 | 4,430 | |||||
Operating leases right-of-use assets | 17,004 | 4,730 | |||||
Intangible assets, net | 43,112 | 45,541 | |||||
23,857 | 23,857 | ||||||
Restricted cash | 242 | 256 | |||||
Other assets | 1,000 | 1,000 | |||||
Total assets | $ | 156,784 | $ | 151,736 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 6,621 | $ | 5,506 | |||
Accrued compensation | 6,127 | 12,484 | |||||
Accrued and other liabilities | 15,576 | 16,838 | |||||
Total current liabilities | 28,324 | 34,828 | |||||
Deferred tax liability | 1,502 | 1,973 | |||||
Common stock warrant liability | 1,017 | 6,607 | |||||
Deferred payments for intangible assets | 5,311 | 5,207 | |||||
Operating lease liability, less current portion | 17,503 | 2,370 | |||||
Other liabilities | 1,743 | 1,751 | |||||
Total liabilities | 55,400 | 52,736 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 42 | 42 | |||||
Additional paid-in capital | 447,888 | 437,976 | |||||
Accumulated other comprehensive loss | (6,910 | ) | (5,205 | ) | |||
Accumulated deficit | (339,636 | ) | (333,813 | ) | |||
Total stockholders’ equity | 101,384 | 99,000 | |||||
Total liabilities and stockholders’ equity | $ | 156,784 | $ | 151,736 |
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) |
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Three Months Ended |
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2020 | 2019 | ||||||
Net loss per share | $ | (5,823 | ) | $ | (7,531 | ) | |
Stock-based compensation expense | 4,259 | 6,053 | |||||
Acquisition related-amortization of purchased intangibles | 1,149 | 736 | |||||
Change in estimated fair value of contingent consideration | 190 | — | |||||
Change in estimated fair value of common stock warrant liability | 405 | 3,009 | |||||
Accretion of liability | 104 | — | |||||
Tax effect related to amortization of purchased intangibles | (120 | ) | (123 | ) | |||
Acquisition-related amortization of inventory valuation adjustment | — | 18 | |||||
Non-GAAP net income | $ | 164 | $ | 2,162 | |||
GAAP basic and diluted net loss per share | $ | (0.14 | ) | $ | (0.18 | ) | |
Non-GAAP basic net income per share | $ | 0.00 | $ | 0.05 | |||
Non-GAAP diluted net income per share | $ | 0.00 | $ | 0.05 | |||
Shares used in computing non-GAAP basic net income per share | 42,823,427 | 41,611,399 | |||||
Shares used in computing non-GAAP diluted net income per share | 43,606,998 | 43,975,282 |
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures (Unaudited) (In thousands) |
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Three Months Ended |
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2020 | 2019 | ||||||
Non-GAAP net income | $ | 164 | $ | 2,162 | |||
Interest income | (96 | ) | (342 | ) | |||
Income tax benefit | (180 | ) | (483 | ) | |||
Depreciation expense | 367 | 407 | |||||
Other (income) expense, net | (41 | ) | 74 | ||||
Adjusted EBITDA | $ | 214 | $ | 1,818 |
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands, except share and per share data) |
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Three Months Ended |
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Total revenue |
Cost of revenue |
Research and development |
Sales and marketing |
General and administrative |
Total other income (expense) |
Income tax benefit (expense) |
Net income (loss) |
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GAAP | $ | 38,380 | $ | 12,392 | $ | 10,013 | $ | 11,723 | $ | 10,003 | $ | (372 | ) | $ | 300 | $ | (5,823 | ) | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||
Stock-based compensation expense | (365 | ) | (810 | ) | (971 | ) | (2,113 | ) | 4,259 | ||||||||||||||||
Acquisition related-amortization of purchased intangibles | (792 | ) | (357 | ) | 1,149 | ||||||||||||||||||||
Change in estimated fair value of contingent consideration | (190 | ) | 190 | ||||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 405 | 405 | |||||||||||||||||||||||
Accretion of liability | 104 | 104 | |||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (120 | ) | (120 | ) | |||||||||||||||||||||
Non-GAAP | $ | 38,380 | $ | 11,235 | $ | 9,203 | $ | 10,395 | $ | 7,700 | $ | 137 | $ | 180 | $ | 164 |
Three Months Ended |
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Total revenue |
Cost of revenue |
Research and development |
Sales and marketing |
General and administrative |
Total other income (expense) |
Income tax benefit (expense) |
Net income (loss) |
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GAAP | $ | 25,982 | $ | 9,733 | $ | 5,614 | $ | 6,925 | $ | 9,106 | $ | (2,741 | ) | $ | 606 | $ | (7,531 | ) | |||||||
Non-GAAP adjustments: | |||||||||||||||||||||||||
Stock-based compensation expense | (776 | ) | (832 | ) | (727 | ) | (3,718 | ) | 6,053 | ||||||||||||||||
Acquisition related-amortization of purchased intangibles | (472 | ) | (264 | ) | 736 | ||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 3,009 | — | 3,009 | ||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (123 | ) | (123 | ) | |||||||||||||||||||||
Acquisition-related amortization of inventory valuation adjustment | (18 | ) | 18 | ||||||||||||||||||||||
Non-GAAP | $ | 25,982 | $ | 8,467 | $ | 4,782 | $ | 5,934 | $ | 5,388 | $ | 268 | $ | 483 | $ | 2,162 |
Source: CareDx, Inc.