Guardant Health reported a net loss per share of USD 1.36 for Q4 2022, in line with analyst expectations. Revenue for the quarter grew by 17% YoY to USD 126.9 million, beating analyst consensus by 2%. Net losses for the quarter increased by 54% YoY to USD 139.9 million. Revenue for the full year increased by 20% YoY to USD 449.5 million. In addition, the company reported 124,800 tests to clinical customers and 26,000 tests to biopharmaceutical customers in the full year 2022, representing an increase of 42% and 40% YoY respectively.

The increase in revenue in Q4 2022 was mainly attributable to growth in precision oncology testing revenue (up 28% YoY) on the back of higher clinical and biopharma testing volumes, which grew 41% and 24% YoY respectively. The company performed 36,000 clinical tests (up 41% YoY) and 8,200 biopharmaceutical tests (up 24% YoY) during the quarter. However, development services and other revenue declined by 33% YoY due to a one-time catch-up royalty payment that was recognized in Q4 2021. 

The gross profit margin was 65% in Q4 2022 compared to 67% in Q4 2021. Operating expenses rose by 31%YoY to USD 225.9 million due to higher R&D expenses and higher selling expenses. In addition, the adjusted EBITDA loss worsened considerably to USD 109.8 million for the quarter from USD 64.6 million in Q4 2021. 

The company highlighted a few milestones for the quarter: 1) obtained coverage for Guardant360 CDx tests in lung and breast cancer; 2) launched Guardant Galaxy suite of advanced AI analytics in partnership with Lunit; and 3) received FDA approval for Guardant360 CDx as companion diagnostic for ORSERDU for treatment of patients with ESR1 mutations in ER+, HER2- advanced or metastatic breast cancer.

Cash, cash equivalents, and marketable debt securities for the year were $1.0 billion (up 7.2% YoY) . In terms of guidance for 2023, Guardant Health expects revenue to range from USD 525 million–540 million, implying a growth rate of 17%–20%.