CareDx Reports Second Quarter 2020 Results
Second Quarter 2020 and Recent Highlights:
- Achieved total revenue of
$41.8 million for the three months endedJune 30, 2020 , increasing 33% year-over-year - Provided over 17,100 AlloSure Kidney and AlloMap Heart patient results, with over 40% originating from RemoTraC and mobile phlebotomy
- Recorded first-ever AlloCell revenue from a cell therapy partnership
- Completed successful public offering raising
$134.6 million in net proceeds, increasing cash and cash equivalents to$211.4 million
“Throughout this challenging time, our team at
Second Quarter 2020 Financial Results
Revenue for the three months ended
For the second quarter of 2020, the net loss was
Non-GAAP net income was
Adjusted EBITDA for the second quarter of 2020 was a loss 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
While
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 |
Six Months Ended |
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2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
Testing services revenue | $ | 36,293 | $ | 25,677 | $ | 67,735 | $ | 47,195 | ||||||||
Product revenue | 3,291 | 4,593 | 7,986 | 9,026 | ||||||||||||
Digital and other revenue | 2,217 | 1,184 | 4,460 | 1,215 | ||||||||||||
Total revenue | 41,801 | 31,454 | 80,181 | 57,436 | ||||||||||||
Cost of revenue | 15,025 | 11,512 | 27,417 | 21,245 | ||||||||||||
Gross profit | 26,776 | 19,942 | 52,764 | 36,191 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 13,129 | 7,630 | 23,142 | 13,244 | ||||||||||||
Sales and marketing | 12,134 | 10,644 | 23,857 | 17,569 | ||||||||||||
General and administrative | 12,316 | 8,512 | 22,319 | 17,618 | ||||||||||||
Total operating expenses | 37,579 | 26,786 | 69,318 | 48,431 | ||||||||||||
Loss from operations | (10,803 | ) | (6,844 | ) | (16,554 | ) | (12,240 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest income, net | 21 | 300 | 117 | 642 | ||||||||||||
Change in estimated fair value of common stock warrant liability | (664 | ) | (1,351 | ) | (1,069 | ) | (4,360 | ) | ||||||||
4,813 | — | 4,813 | — | |||||||||||||
Other expense, net | (255 | ) | (172 | ) | (318 | ) | (246 | ) | ||||||||
Total other income (expense) | 3,915 | (1,223 | ) | 3,543 | (3,964 | ) | ||||||||||
Loss before income taxes | (6,888 | ) | (8,067 | ) | (13,011 | ) | (16,204 | ) | ||||||||
Income tax benefit | 330 | 220 | 630 | 826 | ||||||||||||
Net loss | $ | (6,558 | ) | $ | (7,847 | ) | $ | (12,381 | ) | $ | (15,378 | ) | ||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.19 | ) | $ | (0.28 | ) | $ | (0.37 | ) | ||||
Diluted | $ | (0.15 | ) | $ | (0.19 | ) | $ | (0.28 | ) | $ | (0.37 | ) | ||||
Weighted-average shares used to compute net loss per share: | ||||||||||||||||
Basic | 44,708,037 | 42,132,396 | 43,765,732 | 41,873,337 | ||||||||||||
Diluted | 44,708,037 | 42,132,396 | 43,765,732 | 41,873,337 | ||||||||||||
Condensed Consolidated Balance Sheets (Unaudited) (In thousands) |
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Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 211,409 | $ | 38,223 | |||
Accounts receivable | 27,111 | 24,057 | |||||
Inventory | 8,741 | 6,014 | |||||
Prepaid and other current assets | 4,286 | 3,628 | |||||
Total current assets | 251,547 | 71,922 | |||||
Property and equipment, net | 7,313 | 4,430 | |||||
Operating leases right-of-use assets | 16,416 | 4,730 | |||||
Intangible assets, net | 44,356 | 45,541 | |||||
23,857 | 23,857 | ||||||
Restricted cash | 253 | 256 | |||||
Other assets | 1,000 | 1,000 | |||||
Total assets | $ | 344,742 | $ | 151,736 | |||
Liabilities and stockholders’ equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,675 | $ | 5,506 | |||
Accrued compensation | 11,089 | 12,484 | |||||
Accrued and other liabilities | 16,682 | 16,838 | |||||
Deferred revenue - CMS advance payment | 20,496 | — | |||||
Total current liabilities | 56,942 | 34,828 | |||||
Deferred tax liability | 1,313 | 1,973 | |||||
Common stock warrant liability | 1,681 | 6,607 | |||||
Deferred payments for intangible assets | 5,400 | 5,207 | |||||
Operating lease liability, less current portion | 17,025 | 2,370 | |||||
Other liabilities | 1,614 | 1,751 | |||||
Total liabilities | 83,975 | 52,736 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Common stock | 47 | 42 | |||||
Additional paid-in capital | 612,228 | 437,976 | |||||
Accumulated other comprehensive loss | (5,314 | ) | (5,205 | ) | |||
Accumulated deficit | (346,194 | ) | (333,813 | ) | |||
Total stockholders’ equity | 260,767 | 99,000 | |||||
Total liabilities and stockholders’ equity | $ | 344,742 | $ | 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 |
Six Months Ended |
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2020 | 2019 | 2020 | 2019 | ||||||||||||
Net loss per share | $ | (6,558 | ) | $ | (7,847 | ) | $ | (12,381 | ) | $ | (15,378 | ) | |||
Stock-based compensation expense | 6,417 | 4,992 | 10,676 | 11,045 | |||||||||||
Acquisition related-amortization of purchased intangibles | 1,160 | 822 | 2,309 | 1,576 | |||||||||||
Acquisition related fees and expenses | — | 568 | — | 568 | |||||||||||
Change in estimated fair value of contingent consideration | 76 | — | 266 | — | |||||||||||
Change in estimated fair value of common stock warrant liability | 664 | 1,351 | 1,069 | 4,360 | |||||||||||
Accretion of liability | 88 | — | 192 | — | |||||||||||
Tax effect related to amortization of purchased intangibles | (119 | ) | (122 | ) | (239 | ) | (245 | ) | |||||||
Impairment | — | 150 | — | 150 | |||||||||||
Non-GAAP net income (loss) | $ | 1,728 | $ | (86 | ) | $ | 1,892 | $ | 2,076 | ||||||
GAAP basic and diluted net loss per share | $ | (0.15 | ) | $ | (0.19 | ) | $ | (0.28 | ) | $ | (0.37 | ) | |||
Non-GAAP basic net income (loss) per share | $ | 0.04 | $ | (0.00 | ) | $ | 0.04 | $ | 0.05 | ||||||
Non-GAAP diluted net income (loss) per share | $ | 0.04 | $ | (0.00 | ) | $ | 0.04 | $ | 0.05 | ||||||
Shares used in computing non-GAAP basic net income (loss) per share | 44,708,037 | 42,132,396 | 43,765,732 | 41,873,337 | |||||||||||
Shares used in computing non-GAAP diluted net income (loss) per share | 45,882,569 | 42,132,396 | 44,604,886 | 44,897,442 | |||||||||||
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures (Unaudited) (In thousands) |
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Three Months Ended |
Six Months Ended |
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2020 | 2019 | 2020 | 2019 | ||||||||||||
Non-GAAP net income (loss) | $ | 1,728 | $ | (86 | ) | $ | 1,892 | $ | 2,076 | ||||||
Interest expense | (21 | ) | (300 | ) | (117 | ) | (642 | ) | |||||||
Income tax benefit | (211 | ) | (98 | ) | (391 | ) | (581 | ) | |||||||
Depreciation expense | 381 | 397 | 748 | 804 | |||||||||||
(4,813 | ) | — | (4,813 | ) | — | ||||||||||
Other expense, net | 167 | 172 | 126 | 246 | |||||||||||
Adjusted EBITDA | $ | (2,769 | ) | $ | 85 | $ | (2,555 | ) | $ | 1,903 | |||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) |
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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 |
Income tax benefit (expense) |
Net income (loss) |
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GAAP | $ | 41,801 | $ | 15,025 | $ | 13,129 | $ | 12,134 | $ | 12,316 | $ | 3,915 | $ | 330 | $ | (6,558 | ) | |||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | (711 | ) | (1,456 | ) | (1,581 | ) | (2,669 | ) | 6,417 | |||||||||||||||||||||||
Acquisition related-amortization of purchased intangibles | (804 | ) | (356 | ) | 1,160 | |||||||||||||||||||||||||||
Change in estimated fair value of contingent consideration | (76 | ) | 76 | |||||||||||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 664 | 664 | ||||||||||||||||||||||||||||||
Accretion of liability | 88 | 88 | ||||||||||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (119 | ) | (119 | ) | ||||||||||||||||||||||||||||
Non-GAAP | $ | 41,801 | $ | 13,510 | $ | 11,673 | $ | 10,197 | $ | 9,571 | $ | 4,667 | $ | 211 | $ | 1,728 |
Six Months Ended |
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Total revenue |
Cost of revenue |
Research and development |
Sales and marketing |
General and administrative |
Total other income |
Income tax benefit (expense) |
Net income (loss) |
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GAAP | $ | 80,181 | $ | 27,417 | $ | 23,142 | $ | 23,857 | $ | 22,319 | $ | 3,543 | $ | 630 | $ | (12,381 | ) | |||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | (1,076 | ) | (2,267 | ) | (2,550 | ) | (4,783 | ) | 10,676 | |||||||||||||||||||||||
Acquisition related-amortization of purchased intangibles | (1,596 | ) | (713 | ) | 2,309 | |||||||||||||||||||||||||||
Change in estimated fair value of contingent consideration | (266 | ) | 266 | |||||||||||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 1,069 | 1,069 | ||||||||||||||||||||||||||||||
Accretion of liability | 192 | 192 | ||||||||||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (239 | ) | (239 | ) | ||||||||||||||||||||||||||||
Non-GAAP | $ | 80,181 | $ | 24,745 | $ | 20,875 | $ | 20,594 | $ | 17,270 | $ | 4,804 | $ | 391 | $ | 1,892 | ||||||||||||||||
Reconciliation of GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) |
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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 | $ | 31,454 | $ | 11,512 | $ | 7,630 | $ | 10,644 | $ | 8,512 | $ | (1,223 | ) | $ | 220 | $ | (7,847 | ) | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | (508 | ) | (1,441 | ) | (940 | ) | (2,103 | ) | 4,992 | |||||||||||||||||||||||
Acquisition related-amortization of purchased intangibles | (539 | ) | (283 | ) | 822 | |||||||||||||||||||||||||||
Acquisition related fees and expenses | (568 | ) | 568 | |||||||||||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 1,351 | 1,351 | ||||||||||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (122 | ) | (122 | ) | ||||||||||||||||||||||||||||
Impairment | (150 | ) | 150 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 31,454 | $ | 10,465 | $ | 6,189 | $ | 9,271 | $ | 5,841 | $ | 128 | $ | 98 | $ | (86 | ) |
Six 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 | $ | 57,436 | $ | 21,245 | $ | 13,244 | $ | 17,569 | $ | 17,618 | $ | (3,964 | ) | $ | 826 | $ | (15,378 | ) | ||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||||||||||||||
Stock-based compensation expense | (1,284 | ) | (2,273 | ) | (1,667 | ) | (5,821 | ) | 11,045 | |||||||||||||||||||||||
Acquisition related-amortization of purchased intangibles | (1,030 | ) | (546 | ) | 1,576 | |||||||||||||||||||||||||||
Acquisition related fees and expenses | (568 | ) | 568 | |||||||||||||||||||||||||||||
Change in estimated fair value of common stock warrant liability | 4,360 | 4,360 | ||||||||||||||||||||||||||||||
Tax effect related to amortization of purchased intangibles | (245 | ) | (245 | ) | ||||||||||||||||||||||||||||
Impairment | (150 | ) | 150 | |||||||||||||||||||||||||||||
Non-GAAP | $ | 57,436 | $ | 18,931 | $ | 10,971 | $ | 15,206 | $ | 11,229 | $ | 396 | $ | 581 | $ | 2,076 | ||||||||||||||||
Source: CareDx, Inc.