CareDx Reports Fourth Quarter and FY 2018 Results
Recent highlights:
- Continued the acceleration of AlloSure penetration
- In the fourth quarter of 2018, 100 U.S. transplant centers provided 4,575 AlloSure tests to approximately 3,400 patients
- Continued progress in AlloSure Registry (K-OAR) enrollment, with 47 centers initiated and 748 patients enrolled as of
December 31, 2018
- Achieved total revenue of
$23.5 million for the fourth quarter of 2018, increasing 88% year-over-year- Testing services revenue of
$18.9 million , with 4,575 AlloSure and 4,057 AlloMap patient results provided - Product revenue of
$4.6 million
- Testing services revenue of
- Generated a net loss of
$3.8 million , positive adjusted EBITDA of$0.8 million and positive net cash from operations of$2.0 million in the fourth quarter of 2018 - Strengthened balance sheet through public equity offering and repayment of all outstanding debt
- Cash and cash equivalents of
$64.6 million atDecember 31, 2018
- Cash and cash equivalents of
“The CareDx team delivered another consecutive record quarter, including 88% year-over-year revenue growth. We achieved positive adjusted EBITDA and operating cash flow results for the second straight quarter. We strengthened our first mover advantage as the strong clinical value of AlloSure continues to resonate with the transplant community and, just over a year into the launch, we are 3% penetrated into this patient population,” said
Fourth Quarter 2018 Financial Results
Revenue for the three months ended
For the fourth quarter of 2018, the net loss was
Non-GAAP net income was
Adjusted EBITDA for the fourth quarter of 2018 was a gain of
Net cash provided by operating activities in the fourth quarter of 2018 was
Full Year 2018 Financial Results
Revenue for the full year ended
Net loss for the full year ended
Non-GAAP net loss was
For additional information regarding non-GAAP financial measures discussed herein, please see “Use of Non-GAAP financial Measures” and “Reconciliation of GAAP to Non-GAAP Financial Measures” below.
2019 Guidance
For the full year 2019,
About
For more information, please visit: www.CareDx.com.
Forward Looking Statements
This press release includes forward-looking statements, including expectations regarding the Company’s fiscal 2019 revenue, 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
CONTACTS:
Investor Relations
Integrated Corporate Relations, Inc.
646-277-1266
david.clair@icrinc.com
CareDx, Inc. | |||||||||||||||||
Consolidated Statements of Operations | |||||||||||||||||
(Unaudited) | |||||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||||
Three Months Ended December 31, | 12 Months Ended December 31, | ||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||
Revenue: | |||||||||||||||||
Testing services revenue | $ | 18,852 | $ | 8,621 | $ | 60,300 | $ | 33,106 | |||||||||
Product revenue | 4,594 | 3,718 | 15,674 | 14,634 | |||||||||||||
Collaboration and license revenue | 63 | 164 | 595 | 584 | |||||||||||||
Total revenue | 23,509 | 12,503 | 76,569 | 48,324 | |||||||||||||
Operating expenses: | |||||||||||||||||
Cost of testing services | 7,024 | 3,121 | 21,456 | 12,345 | |||||||||||||
Cost of product | 3,485 | 2,468 | 11,531 | 9,026 | |||||||||||||
Research and development | 3,782 | 3,028 | 14,514 | 12,388 | |||||||||||||
Sales and marketing | 5,754 | 3,061 | 21,670 | 12,808 | |||||||||||||
General and administrative | 5,879 | 4,241 | 21,959 | 18,913 | |||||||||||||
Goodwill impairment | - | - | - | 1,958 | |||||||||||||
Change in estimated fair value of contingent consideration | - | 871 | 1,017 | 1,180 | |||||||||||||
Total operating expenses | 25,924 | 16,790 | 92,147 | 68,618 | |||||||||||||
Loss from operations | (2,415 | ) | (4,287 | ) | (15,578 | ) | (20,294 | ) | |||||||||
Interest expense | (174 | ) | (1,708 | ) | (3,701 | ) | (5,863 | ) | |||||||||
Debt extinguishment expenses | (2,974 | ) | (274 | ) | (5,780 | ) | (459 | ) | |||||||||
Other expense, net | (93 | ) | (14 | ) | (178 | ) | (1,031 | ) | |||||||||
Change in estimated fair value of common stock warrant liability and derivative liability | 1,562 | (26,218 | ) | (22,978 | ) | (29,622 | ) | ||||||||||
Loss before income taxes | (4,094 | ) | (32,501 | ) | (48,215 | ) | (57,269 | ) | |||||||||
Income tax benefit | 339 | 872 | 1,434 | 1,709 | |||||||||||||
Net loss | (3,755 | ) | (31,629 | ) | (46,781 | ) | (55,560 | ) | |||||||||
Net loss attributable to noncontrolling interest | — | 42 | (25 | ) | (91 | ) | |||||||||||
Net loss attributable to CareDx, Inc. | $ | (3,755 | ) | $ | (31,671 | ) | $ | (46,756 | ) | $ | (55,469 | ) | |||||
Net loss per share attributable to CareDx, Inc.: | |||||||||||||||||
Basic | $ | (0.09 | ) | $ | (1.13 | ) | $ | (1.31 | ) | $ | (2.38 | ) | |||||
Diluted | $ | (0.09 | ) | $ | (1.13 | ) | $ | (1.31 | ) | $ | (2.38 | ) | |||||
Weighted average shares used to compute net loss per share attributable to CareDx, Inc.: |
|||||||||||||||||
Basic | 40,104,341 | 27,983,033 | 35,638,956 | 23,332,503 | |||||||||||||
Diluted | 40,104,341 | 27,983,033 | 35,638,956 | 23,332,503 |
CareDx, Inc. | |||||||||
Condensed Consolidated Balance Sheets | |||||||||
(In thousands) | |||||||||
December 31, 2018 | December 31, 2017 | ||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 64,616 | $ | 16,895 | |||||
Accounts receivable | 9,760 | 2,991 | |||||||
Inventory | 4,943 | 5,529 | |||||||
Prepaid and other assets | 1,795 | 1,352 | |||||||
Total current assets | 81,114 | 26,767 | |||||||
Property and equipment, net | 4,134 | 2,075 | |||||||
Intangible assets, net | 33,252 | 33,139 | |||||||
Goodwill | 12,005 | 12,005 | |||||||
Restricted cash | 192 | 9,579 | |||||||
Total assets | $ | 130,697 | $ | 83,565 | |||||
Liabilities and stockholders’ (deficit) equity | |||||||||
Current liabilities: | |||||||||
Accounts payable | $ | 4,711 | $ | 3,391 | |||||
Accrued compensation | 9,156 | 5,013 | |||||||
Accrued and other liabilities | 5,408 | 3,735 | |||||||
Deferred revenue | 39 | 39 | |||||||
Deferred purchase consideration | 190 | 407 | |||||||
Derivative liability | - | 14,600 | |||||||
Current debt | - | 15,721 | |||||||
Total current liabilities | 19,504 | 42,906 | |||||||
Deferred rent, net of current portion | 470 | 913 | |||||||
Deferred revenue, net of current portion | 691 | 730 | |||||||
Deferred tax liability | 2,968 | 4,933 | |||||||
Long-term debt, net of current portion | - | 18,338 | |||||||
Contingent consideration | - | 1,672 | |||||||
Common stock warrant liability | 10,003 | 18,712 | |||||||
Other liabilities | 1,133 | 1,315 | |||||||
Total liabilities | 34,769 | 89,519 | |||||||
Stockholders’ equity: | |||||||||
Common stock | 41 | 29 | |||||||
Additional paid-in capital | 412,010 | 264,204 | |||||||
Accumulated other comprehensive loss | (4,278 | ) | (2,345 | ) | |||||
Accumulated deficit | (311,845 | ) | (268,022 | ) | |||||
Total CareDx, Inc. stockholders' equity (deficit) | 95,928 | (6,134 | ) | ||||||
Noncontrolling interest | - | 180 | |||||||
Total stockholders' equity (deficit) | 95,928 | (5,954 | ) | ||||||
Total liabilities and stockholders’ equity | $ | 130,697 | $ | 83,565 | |||||
CareDx, Inc. | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands, except share and per share data) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP net loss | $ | (3,755 | ) | $ | (31,671 | ) | $ | (46,756 | ) | $ | (55,469 | ) | ||||
Stock-based compensation expense | 2,060 | 428 | 7,138 | 1,744 | ||||||||||||
Acquisition related-amortization of purchased intangibles | 735 | 621 | 2,973 | 2,433 | ||||||||||||
Change in estimated fair value of contingent consideration | - | 871 | 1,017 | 1,180 | ||||||||||||
Amortization of debt discount | 47 | 731 | 2,095 | 2,098 | ||||||||||||
Debt financing related fees and expenses | 2,974 | - | 2,974 | 309 | ||||||||||||
Loss on conversion from debt to equity | - | 278 | 2,806 | 278 | ||||||||||||
Change in estimated fair value of common stock warrant and derivative liabilities | (1,562 | ) | 26,218 | 22,978 | 29,622 | |||||||||||
Tax effect related to amortization of purchased intangibles | (195 | ) | (200 | ) | (811 | ) | (735 | ) | ||||||||
Acquisition-related amortization of inventory valuation adjustment | 44 | 89 | 268 | 509 | ||||||||||||
Goodwill impairment | - | - | - | 1,958 | ||||||||||||
Non-GAAP net income (loss) | $ | 348 | $ | (2,635 | ) | $ | (5,318 | ) | $ | (16,073 | ) | |||||
GAAP basic and diluted net loss per share attributable to CareDx | $ | (0.09 | ) | $ | (1.13 | ) | $ | (1.31 | ) | $ | (2.38 | ) | ||||
Non-GAAP basic and diluted net income (loss) per share attributable to CareDx | $ | 0.01 | $ | (0.09 | ) | $ | (0.15 | ) | $ | (0.69 | ) | |||||
Shares used in computing non-GAAP basic net income (loss) per share | 40,104,341 | 27,983,033 | 35,638,956 | 23,332,503 | ||||||||||||
Shares used in computing non-GAAP diluted net income (loss) per share | 41,270,703 | 27,983,033 | 35,638,956 | 23,332,503 | ||||||||||||
CareDx, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Non-GAAP net income (loss) | $ | 348 | $ | (2,635 | ) | $ | (5,318 | ) | $ | (16,073 | ) | |||||
Interest expense | 127 | 977 | 1,606 | 3,765 | ||||||||||||
Income tax benefit | (144 | ) | (672 | ) | (623 | ) | (974 | ) | ||||||||
Depreciation expense | 355 | 283 | 1,155 | 929 | ||||||||||||
Other expense | 93 | 10 | 178 | 903 | ||||||||||||
Net loss attributable to noncontrolling interest | - | 42 | (25 | ) | (91 | ) | ||||||||||
Adjusted EBITDA | $ | 779 | $ | (1,995 | ) | $ | (3,027 | ) | $ | (11,541 | ) | |||||
Source: CareDx, Inc.