EX-99.1 2 cdna-20240731_earningsrele.htm EX-99.1 Document
Exhibit 99.1
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CareDx Reports Second Quarter 2024 Results and Increases Revenue Guidance
BRISBANE, Calif., July 31, 2024, CareDx, Inc. (Nasdaq: CDNA) — today announced financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Highlights
•Reported total revenue of $92.3 million, an increase of 31% year-over-year.
•Grew Testing Services volume to 43,700 tests, an increase of 17% year-over-year.
•Reported GAAP net loss of $1.4 million, non-GAAP net income of $13.6 million, and positive adjusted EBITDA of $12.9 million, a significant improvement from the second quarter 2023.
•Generated $18.9 million cash from operations. Ended the quarter with cash, cash equivalents, and marketable securities of approximately $228.9 million, with no debt.
•Raised 2024 guidance for annual revenue to $320 to $328 million and adjusted EBITDA to a gain of $9 to $15 million.
Business Highlights
•In the first half of 2024, expanded coverage by 27 million lives nationwide.
•Published SHORE study data demonstrating that HeartCare® outperforms dd-cfDNA alone in identifying allograft rejection.
•Nature Medicine publication validates CareDx AlloView™ AI-enabled risk prediction model and demonstrates AlloSure® Kidney detects subclinical rejection in stable patients.

“We are pleased to announce yet another strong quarter, marked by growth across all our businesses. The dedication and hard work of our team over the past year have been instrumental in our performance. As we approach the second half of the year, we remain focused on maintaining our growth rate,” said John W. Hanna, CareDx President and CEO.
Second Quarter 2024 Financial Results
Total revenue for the three months ended June 30, 2024, was $92.3 million, an increase of 31% compared to $70.3 million for the second quarter of 2023. Testing Services revenue for the second quarter 2024 was $70.9 million, an increase of 33% compared to $53.4 million for the second quarter of 2023. Testing Services revenue for the second quarter included $13.2 million for tests performed in prior periods. Patient and Digital Solutions revenue for the second quarter of 2024 was $10.7 million, an increase of 19% compared to $9.0 million for the second quarter 2023. Product revenue for the second quarter of 2024 was $10.6 million, an increase of 35% compared to $7.9 million for the second quarter 2023.
For the second quarter of 2024 net loss was $1.4 million compared to a net loss of $25.0 million in the second quarter of 2023. Basic and diluted net loss per share in the second quarter of 2024 was $0.03, compared to basic and diluted net loss per share of $0.46 in the second quarter of 2023.
Non-GAAP net income was $13.6 million in the second quarter of 2024, compared to a non-GAAP net loss of $9.9 million in the second quarter of 2023. Diluted non-GAAP net income per share was $0.25 in the second quarter of 2024, compared to a diluted non-GAAP net loss per share of $0.18 in the second quarter of 2023.
Adjusted EBITDA income for the second quarter of 2024 was $12.9 million, compared to an adjusted EBITDA loss of $10.4 million for the second quarter of 2023.



2024 Guidance
CareDx now expects full year 2024 revenue to be in the range of $320 million to $328 million, compared to the prior range of $274 million to $282 million. CareDx now expects full year 2024 non-GAAP gross margin to be in the range of 67% to 68%, compared to the prior range of 63% to 65%. CareDx now expects full year 2024 adjusted EBITDA gain to be in the range of $9 million to $15 million, compared to an adjusted EBITDA loss of $14 million to $24 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, non-GAAP gross margin and adjusted EBITDA, 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, the quarterly report on Form 10-Q for the quarter ended June 30, 2024 filed by CareDx with the SEC on July 31, 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 income (loss), non-GAAP basic and diluted net income (loss) per share, adjusted EBITDA and non-GAAP operating expenses.
We define non-GAAP net income (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 income (loss) before interest income, income tax expense (benefit), 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 June 30,Six Months Ended June 30,
2024202320242023
Revenue:
Testing services revenue$70,918 $53,414 $124,755 $115,198 
Product revenue10,610 7,876 19,204 14,737 
Patient and digital solutions revenue10,746 9,011 20,364 17,628 
Total revenue92,274 70,301 164,323 147,563 
Operating expenses:
Cost of testing services14,308 15,324 27,940 30,620 
Cost of product6,245 3,926 11,589 7,992 
Cost of patient and digital solutions7,393 6,637 14,351 13,241 
Research and development19,678 20,233 38,389 44,590 
Sales and marketing21,002 21,630 40,832 44,861 
General and administrative27,678 29,327 54,589 57,359 
Restructuring costs68 848 68 848 
Total operating expenses96,372 97,925 187,758 199,511 
Loss from operations(4,098)(27,624)(23,435)(51,948)
Other income:
Interest income, net2,826 2,871 5,711 5,537 
    Change in estimated fair value of common stock warrant liability
— 3 — 10 
Other expense, net(100)(271)(390)(2,245)
Total other income2,726 2,603 5,321 3,302 
Loss before income taxes(1,372)(25,021)(18,114)(48,646)
Income tax (expense) benefit(22)68 61 (56)
Net loss$(1,394)$(24,953)$(18,053)$(48,702)
Net loss per share:
Basic$(0.03)$(0.46)$(0.35)$(0.91)
Diluted$(0.03)$(0.46)$(0.35)$(0.91)
Weighted-average shares used to compute net loss per share:
Basic52,195,620 53,846,260 51,943,989 53,745,299 
Diluted52,195,620 53,846,260 51,943,989 53,745,299 




CareDx, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
June 30, 2024December 31, 2023
Assets
Current assets:
Cash and cash equivalents$95,782 $82,197 
Marketable securities133,089 153,221 
Accounts receivable66,161 51,061 
Inventory19,234 19,471 
Prepaid and other current assets6,343 7,763 
Total current assets320,609 313,713 
Property and equipment, net34,202 35,246 
Operating leases right-of-use assets27,188 29,891 
Intangible assets, net41,896 45,701 
Goodwill40,336 40,336 
Restricted cash588 586 
Other assets1,958 1,353 
Total assets$466,777 $466,826 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$5,874 $12,872 
Accrued compensation25,004 19,703 
Accrued and other liabilities47,453 45,497 
Total current liabilities78,331 78,072 
Deferred tax liability50 136 
Deferred payments for intangible assets1,620 2,461 
Operating lease liability, less current portion25,386 28,278 
Other liabilities96,721 96,551 
Total liabilities202,108 205,498 
Commitments and contingencies
Stockholders’ equity:
Common stock
50 49 
Additional paid-in capital969,427 946,511 
Accumulated other comprehensive loss(7,964)(6,963)
Accumulated deficit(696,844)(678,269)
Total stockholders’ equity264,669 261,328 
Total liabilities and stockholders’ equity$466,777 $466,826 




CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cost of testing services reconciliation:
GAAP cost of testing services$14,308 $15,324 $27,940 $30,620 
Stock-based compensation expense(357)(492)(814)(971)
Acquisition related-amortization of purchased intangibles(329)(329)(658)(658)
Non-GAAP cost of testing services$13,622 $14,503 $26,468 $28,991 
Cost of product reconciliation:
GAAP cost of product$6,298 $3,926 $11,642 $7,992 
Stock-based compensation expense(225)(274)(542)(634)
Acquisition related-amortization of purchased intangibles(411)(416)(831)(834)
Restructuring costs(53)— (53)— 
Non-GAAP cost of product$5,609 $3,236 $10,216 $6,524 
Cost of patient and digital solutions reconciliation:
GAAP cost of patient and digital solutions$7,393 $6,651 $14,351 $13,255 
Stock-based compensation expense(350)(367)(722)(769)
Acquisition related-amortization of purchased intangibles(238)(255)(509)(503)
Restructuring costs— (14)— (14)
Other income— — 5 — 
Non-GAAP cost of patient and digital solutions$6,805 $6,015 $13,125 $11,969 
Research and development expenses reconciliation:
GAAP research and development expenses$19,693 $20,478 $38,404 $44,835 
Stock-based compensation expense(1,628)(1,704)(3,388)(3,666)
Restructuring costs(15)(245)(15)(245)
Other charges— — (25)— 
Non-GAAP research and development expenses$18,050 $18,529 $34,976 $40,924 
Sales and marketing expenses reconciliation:
GAAP sales and marketing expenses$21,002 $22,178 $40,832 $45,409 
Stock-based compensation expense(2,927)(2,779)(5,971)(6,516)
Acquisition related-amortization of purchased intangibles(628)(606)(1,261)(1,201)
Restructuring costs— (548)— (548)
Other charges— — (8)— 
Non-GAAP sales and marketing expenses$17,447 $18,245 $33,592 $37,144 
General and administrative expenses reconciliation:
GAAP general and administrative expenses$27,678 $29,368 $54,589 $57,400 
Stock-based compensation expense(7,683)(7,084)(15,077)(13,898)
Change in estimated fair value of contingent consideration(210)(67)(529)(488)
Acquisition related fees and expenses(5)— (40)(284)
Restructuring costs and charges— (41)— (99)
Other (charges) income(44)— 22 — 
Non-GAAP general and administrative expenses$19,736 $22,176 $38,965 $42,631 
Total other income (expense) reconciliation:
GAAP other income, net$2,726 $2,603 $5,321 $3,302 
Unrealized (gain) loss on long-term marketable equity securities— (53)— 857 
Asset impairments and write-downs— — — 1,000 
Other charges— 7 — 28 
Non-GAAP other income, net$2,726 $2,557 $5,321 $5,187 
Income tax (expense) benefit reconciliation:
GAAP income tax (expense) benefit $(22)$68 $61 $(56)
Tax effect related to amortization of purchased intangibles(98)(100)(200)(201)
Non-GAAP income tax expense$(120)$(32)$(139)$(257)




CareDx, Inc.
GAAP and Non-GAAP Operating Expenses
(Unaudited)
(In thousands)

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GAAP operating expenses:
Research and development$19,693 $20,478 $38,404 $44,835 
Sales and marketing21,002 22,178 40,832 45,409 
General and administrative27,678 29,368 54,589 57,400 
Total GAAP operating expenses$68,373 $72,024 $133,825 $147,644 
Non-GAAP operating expenses:
Research and development$18,050 $18,529 $34,976 $40,924 
Sales and marketing17,447 18,245 33,592 37,144 
General and administrative19,736 22,176 38,965 42,631 
Total Non-GAAP operating expenses$55,233 $58,950 $107,533 $120,699 








































CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Gross Profit and Gross Margin
(Unaudited)
(In thousands, except percentages)

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Total revenue$92,274 $70,301 $164,323 $147,563 
GAAP cost of sales27,999 25,901 53,933 51,867 
GAAP gross profit64,275 44,400 110,390 95,696 
Stock-based compensation expense932 1,133 2,078 2,374 
Other income— — (5)— 
Restructuring costs53 14 53 14 
Acquisition related-amortization of purchased intangibles978 1,000 1,998 1,995 
Non-GAAP gross profit$66,238 $46,547 $114,514 $100,079 
Non-GAAP gross margin %72 %66 %70 %68 %






CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
GAAP net loss$(1,394)$(24,953)$(18,053)$(48,702)
Stock-based compensation expense13,170 12,700 26,514 26,454 
Acquisition related-amortization of purchased intangibles1,606 1,606 3,259 3,196 
Change in estimated fair value of contingent consideration210 67 529 488 
Acquisition related fees and expenses5 — 40 284 
Other charges44 7 6 28 
Restructuring costs and charges68 848 68 906 
Tax effect related to amortization of purchased intangibles(98)(100)(200)(201)
Asset impairments and write-downs— — — 1,000 
Unrealized (gain) loss on long-term marketable equity securities— (53)— 857 
Non-GAAP net income (loss)$13,611 $(9,878)$12,163 $(15,690)
GAAP basic and diluted net loss per share$(0.03)$(0.46)$(0.35)$(0.91)
Non-GAAP basic net income (loss) per share$0.26 $(0.18)$0.23 $(0.29)
Non-GAAP diluted net income (loss) per share$0.25 $(0.18)$0.23 $(0.29)
Shares used in computing non-GAAP basic net income (loss) per share52,195,620 53,846,260 51,943,989 53,745,299 
Shares used in computing non-GAAP diluted net income (loss) per share54,333,731 53,846,260 53,669,762 53,745,299 






























CareDx, Inc.
Reconciliation of Non-GAAP to Adjusted EBITDA
(Unaudited)
(In thousands)
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Non-GAAP net income (loss)$13,611 $(9,878)$12,163 $(15,690)
Interest income(2,826)(2,871)(5,711)(5,537)
Income tax expense (benefit)121 68 139 (56)
Depreciation expense1,937 2,052 4,105 3,860 
Other expense, net
100 279 390 664 
Adjusted EBITDA$12,943 $(10,350)$11,086 $(16,759)






CareDx, Inc.

Media Relations
Anna Czene
818-731-2203
aczene@caredx.com

Investor Relations
Greg Chodaczek
investor@caredx.com