Skip to main navigation
CareDx
  • COMPANY
    • Management Team
    • Board of Directors
    • Compliance
    • Careers
      • Current Openings
      • Benefits
  • PRODUCTS
    • HeartCare, AlloMap
    • KidneyCare, AlloSure
    • Laboratory Products
    • Ottr
  • INVESTORS
  • CONTACT US

Press Releases

<< Back
Apr 30, 2020

CareDx Reports First Quarter 2020 Results

Strategically positioned for long-term growth and success

SOUTH SAN FRANCISCO, Calif., April 30, 2020 (GLOBE NEWSWIRE) -- CareDx, Inc. (Nasdaq: CDNA), a leading precision medicine company focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers, today reported financial results for the quarter ended March 31, 2020.

First Quarter 2020 and Recent Highlights:

  • Achieved total revenue of $38.4 million for the three months ended March 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 Peter Maag, CareDx Chief Executive Officer. “Throughout this unprecedented time, our team has shown unrelenting dedication to transforming transplant care and ensuring that foundationally we remain strong and well-positioned for continuous growth.”

First Quarter 2020 Financial Results

Revenue for the three months ended March 31, 2020 was $38.4 million, compared with $26.0 million in the first quarter of 2019. Testing services revenue for the first quarter was $31.4 million, compared with $21.5 million in the same period of 2019. Product revenue in the three months ended March 31, 2020 was $4.7 million, compared to $4.4 million in the same period of 2019. Digital and other revenue for the first quarter of 2020 was $2.2 million, reflecting our acquisitions of OTTR and XynManagement.

For the first quarter of 2020, the net loss was $5.8 million compared to a net loss of $7.5 million in the same period of 2019. Basic and diluted net loss per share was $0.14 in the first quarter of 2020, compared to basic and diluted net loss per share of $0.18 in the first quarter of 2019.

Non-GAAP net income was $0.2 million in the first quarter of 2020 compared to $2.2 million non-GAAP net income in the first quarter of 2019. Basic and diluted non-GAAP net income per share was approximately $0.00 in the first quarter of 2020, compared to a basic and diluted non-GAAP net income per share of $0.05 in the first quarter of 2019.

Adjusted EBITDA for the first quarter of 2020 was a gain of $0.2 million, compared to an adjusted EBITDA gain of $1.8 million in the first quarter of 2019.

Cash and cash equivalents were $32.2 million as of March 31, 2020. During April 2020, cash increased by $48.8 million through our At-the-Market Equity Offering Program, the expanded CMS Accelerated and Advance Payment Program and the CARES Act Relief Fund for Medicare Providers.

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, CareDx withdrew its 2020 guidance on April 8, 2020.

About CareDx

CareDx, Inc., headquartered in South San Francisco, 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 the achievement of our financial and operational goals and our prospects. 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, including general economic and market factors, among others discussed in CareDx’s filings with the SEC, including the Annual Report on Form 10-K for the fiscal year ended December 31, 2019 filed by CareDx with the SEC on February 28, 2020 and the periodic reports that CareDx has subsequently 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. CareDx expressly disclaims any obligation, except as required by law, or undertaking to update or revise any such forward-looking statements.

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 net income, non-GAAP basic and diluted net income per share and adjusted EBITDA. We define non-GAAP net income and per share results as the GAAP net income and per share results excluding the impacts of stock-based compensation; changes in estimated fair value of warrants, derivative liabilities and contingent consideration; acquisition related impairment charges and amortization of intangible assets, purchase accounting adjustments and related tax effects; costs involved with completing an acquisition; amortization of debt discount; and certain other financing charges. We define adjusted EBITDA as non-GAAP net income/(loss) before net interest expense, income tax expense, depreciation and amortization, other expense, and net loss attributable to noncontrolling interest. 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.

Investor Relations Contact

Greg Chodaczek
347-620-7010
investor@caredx.com

 
CareDx, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
 
  Three Months Ended March 31,
  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  


 
CareDx, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
 
  As of March 31,
  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  
Goodwill 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  


 
CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except share and per share data)
 
  Three Months Ended March 31,
  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  


 
CareDx, Inc.
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures
(Unaudited)
(In thousands)
 
  Three Months Ended March 31,
  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  


     
CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except share and per share data)
     
    Three Months Ended March 31, 2020
    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)
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 March 31, 2019
    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)
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  


CareDx logo.jpg

Source: CareDx, Inc.

Investor Relations

  • Investor Relations
  • Press Releases
  • Events & Presentations
  • Corporate Governance
  • Financials & Filings
  • Stock Information
  • Analyst Coverage
  • Investor FAQs
  • Contact Us

Shareholder Tools

Printed Materials
E-mail Alerts
Downloads
RSS
Print
Share
  • Facebook
  • LinkedIn
  • Twitter
  • RSS

    ©2004-2017 CareDx, Inc. All Rights Reserved.    CareDx is a registered trademark of CareDx, Inc.

    Privacy & Compliance