Guardant Health Inc. (NASDAQ: GH), a leading precision oncology company, reported stellar financial results for the third quarter of 2024, driven by robust demand for its liquid biopsy tests and higher reimbursement rates. The company's performance exceeded Wall Street expectations, prompting a significant surge in its stock price.
For the quarter ended September 30, 2024, Guardant Health posted revenue of $191.5 million, a remarkable 34% increase compared to the same period last year. This figure surpassed the consensus estimate of $170.6 million, reflecting the company's strong growth trajectory. The impressive revenue growth was fueled by a 21% increase in clinical test volume and a 40% rise in biopharma test volume.
Guardant Health also achieved a major milestone, reporting an average selling price (ASP) of over $3,000 for its flagship Guardant360 test, meeting its long-term target four years ahead of schedule. The company attributed this achievement to higher Medicare reimbursement rates, which increased to $5,000 effective January 1, 2024, as well as improved reimbursement from Medicare Advantage and commercial payers.
Buoyed by its robust third-quarter performance, Guardant Health raised its full-year 2024 revenue guidance to a range of $720 million to $725 million, representing growth of 28% to 29% compared to the previous year. The company also improved its free cash flow outlook for 2024, projecting it to be in the range of $(265) million to $(275) million, an improvement of $70 million to $80 million compared to 2023.
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