Benzinga | Aug 6, 2021 09:35AM EDT

Precision Oncology Sales Boost Guardant Health Q2 Topline, Backs FY21 Outlook, Management Updates

* After the market close on Thursday, Guardant Health Inc (NASDAQ:GH) reported Q2 revenues increased 39% Y/Y to $92.1 million, beating the consensus of $84.61 million.

* Guardant's oncology testing revenue grew 42% to $72.6 million, driven primarily by a 54% increase in clinical testing revenue.

* Development services and other revenue was $19.5 million, up 27%, reflecting several companion diagnostic project milestones achieved during the quarter.

* It reported 20,830 tests to clinical customers and 3,653 tests to biopharmaceutical customers during the quarter, increasing 52% and 30%, respectively. The firm expects to launch the blood-based colorectal cancer screening test being validated in that trial in 1H of 2022.

* The gross margin expanded from 66% to 68%.

* Guardant's adjusted net loss swelled to $(0.61) from $(0.25) a year ago, beating the consensus Wall Street estimate of $0.87.

* As of June 30, Guardant had $938.6 million in cash and cash equivalents and $853.1 million in short-term marketable securities.

* Concurrent with its earnings, Guardant also announced management rearrangement whereby Eltoukhy and AmirAli Talasaz, formerly Guardant's president and chief operating officer, will now serve as co-CEOs.

* Moving forward, Eltoukhy will lead the Company's oncology division, while Talasaz will oversee its screening division. Talasaz will also retain the title of president, and Eltoukhy will become the firm's board chairman.

* Guardant also increased the number of directors on its board to eight.

* Due to continued uncertainty around the global COVID pandemic, Guardant Health maintains its previous FY21 revenue guidance of $360 million - $370 million.

* Clinical volumes are expected to be over 90,000 tests, growing at least 42% Y/Y.

* Price Action: GH shares are trading up 0.12% at $115.53 on the last check Friday.