EX-99.1 2 cdna-20230227_earningsrele.htm EX-99.1 Document
Exhibit 99.1
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CareDx Reports Fourth Quarter and Full Year 2022 Results
BRISBANE, Calif., February 27, 2023 -- CareDx, Inc. (Nasdaq: CDNA) – The Transplant Company™ focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers – today reported financial results for the fourth quarter and full year ended December 31, 2022.
Recent Highlights
•Achieved full year revenue of $321.8 million, an increase of 9% compared with full year 2021 revenue. Highest ever Q4 revenue of $82.4 million, representing year-over-year growth of 4%.
•Full year 2022 AlloMap® and AlloSure® testing volumes grew year-over-year by 19% to approximately 182,000 tests. Provided approximately 47,700 AlloMap and AlloSure patient results in the fourth quarter, growing 14% year-over-year. Q4 test volume included 2,300 AlloSure Lung tests.
•Achieved highest ever cash collections in Q4 at 110% of revenue for testing services, representing an approximately 10% year-over-year increase demonstrating strong operational progress on this key initiative.
•New International Society of Heart and Lung Transplantation (ISHLT) guidelines were published, supporting the expanded use of CareDx’s HeartCare solutions, AlloMap and now AlloSure, in routine monitoring of heart transplant patients.
•Commenced authorized share buyback program of up to $50 million and in Q4 repurchased common stock for approximately $0.6 million. Program demonstrates Board of Directors’ and management’s confidence in the business, cash position and long-term growth opportunities.
•Maintained strong balance sheet with $293 million cash and cash equivalents, and marketable securities, with no debt.
“In 2023 we plan to build on the 3 C’s – catalysts in the pipeline, collections improvements and coverage expansion across the portfolio. We were thrilled to see the first of the C’s make significant progress in Q4, where we achieved our highest ever collections quarter, delivering collections at 110% of testing service revenues,” said Reg Seeto, CEO and President of CareDx. “As we continue to build through the 3 C’s, we remain focused on delivering on adjusted EBITDA profitability in the first half of 2023.”
Q4 2022 Financial Results:
Revenue for the three months ended December 31, 2022 was $82.4 million, an increase of 4% compared with $79.2 million in the fourth quarter of 2021. Testing services revenue for the quarter was $65.4 million, compared with $68.7 million in the same period in 2021. Total AlloSure® and AlloMap® patient results provided in the quarter were 47,700, including 2,300 AlloSure® Lung patient results. Product revenue in the three months ended December 31, 2022 was $8.6 million, compared to $7.7 million in the same period in 2021. Patient and digital solutions revenue in the fourth quarter of 2022 was $8.4 million, compared to $2.9 million in the same period in 2021.
For the fourth quarter of 2022, net loss was $18.3 million, compared to a net loss of $16.2 million in the same period in 2021. Basic and diluted net loss per share in the fourth quarter of 2022 was $0.34, compared to basic and diluted net loss per share of $0.31 in the fourth quarter of 2021.
Non-GAAP net loss was $3.7 million in the fourth quarter of 2022, compared to a non-GAAP net loss of $1.5 million in the fourth quarter of 2021. Basic and diluted non-GAAP net loss per share was $0.07 in the fourth quarter of 2022, compared to a basic and diluted non-GAAP net loss per share of $0.03 in the fourth quarter of 2021.



Adjusted EBITDA for the fourth quarter of 2022 was a loss of $3.7 million, compared to an adjusted EBITDA loss of $1.4 million in the fourth quarter of 2021.
Cash and cash equivalents, and marketable securities was $293 million as of December 31, 2022.
Full Year 2022 Financial Results
Revenue for the full year ended December 31, 2022, was $321.8 million, an increase of 9% compared with $296.4 million in 2021. Testing services revenue for the full year ended December 31, 2022 was $263.7 million, compared with $259.3 million in 2021. Product revenue for the full year ended December 31, 2022 was $29.3 million, compared to $26.8 million in 2021. Patient and digital solutions revenue for the full year 2022 was $28.8 million, compared to $10.3 million in 2021.
Net loss for the full year ended December 31, 2022 was $76.6 million, compared to a net loss of $30.7 million in 2021. Basic and diluted net loss per share for the full year ended December 31, 2022 was $1.44, compared to basic and diluted net loss per share of $0.59 in the full year ended December 31, 2021.
Non-GAAP net loss was $20.9 million for the full year ended December 31, 2022, compared to a non-GAAP net income of $15.5 million for the full year ended December 31, 2021. Basic and diluted non-GAAP net loss per share was $0.39 in the full year of 2022, compared to a basic and diluted non-GAAP net income per share of $0.30 and $0.29, respectively, in the full year of 2021.
Adjusted EBITDA for the full year of 2022 was a loss of $17.5 million, compared to an adjusted EBITDA gain of $17.8 million for the full year of 2021.
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 Non-GAAP to Adjusted EBITDA Financial Measures” below.
2023 Guidance
For the full year 2023, CareDx expects revenue to be in the range of $328 million to $338 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 with respect to expectations regarding CareDx’s upcoming milestones, vision and 2023 revenue guidance. All statements other than statements of historical fact contained in this press release, including statements regarding the future financial position of CareDx, including financial targets, business strategy, and plans and objectives for future operations, are forward-looking statements. 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, and global economic and marketplace uncertainties related to the COVID-19 pandemic, 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, 2022 to be filed by CareDx with the SEC on or about February 27, 2023. 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 (expense), net, non-GAAP income tax (expense) benefit, non-GAAP gross profit, non-GAAP gross margin (%), non-GAAP net (loss) income, non-GAAP basic and diluted net (loss) income per share and adjusted EBITDA. We define non-GAAP net (loss) income 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; and certain other charges. We define adjusted EBITDA as non-GAAP net (loss) income before net interest income, income tax expense (benefit), depreciation and other (income) 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.

CONTACTS:
CareDx, Inc.
Media Relations
Anna Czene
818-731-2203
aczene@caredx.com

Investor Relations
Greg Chodaczek
investor@caredx.com





CareDx, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Revenue:
Testing services revenue$65,418 $68,650 $263,748 $259,285 
Product revenue8,555 7,672 29,251 26,832 
Patient and digital solutions8,411 2,898 28,794 10,280 
Total revenue82,384 79,220 321,793 296,397 
Operating expenses:
Cost of testing services18,657 19,495 72,286 71,251 
Cost of product4,617 5,159 17,639 18,930 
Cost of patient and digital solutions6,216 2,347 22,287 7,208 
Research and development23,570 22,046 90,388 76,525 
Sales and marketing23,668 20,824 96,027 77,245 
General and administrative24,776 24,748 100,397 74,964 
Total operating expenses101,504 94,619 399,024 326,123 
Loss from operations(19,120)(15,399)(77,231)(29,726)
Other income (expense):
Interest income, net1,870 13 3,762 160 
    Change in estimated fair value of common stock warrant liability
18 56 107 106 
Other expense, net(924)(1,722)(2,872)(2,628)
Total other income (expense)964 (1,653)997 (2,362)
Loss before income taxes(18,156)(17,052)(76,234)(32,088)
Income tax (expense) benefit(173)901 (379)1,426 
Net loss$(18,329)$(16,151)$(76,613)$(30,662)
Net loss per share:
Basic$(0.34)$(0.31)$(1.44)$(0.59)
Diluted$(0.34)$(0.31)$(1.44)$(0.59)
Weighted-average shares used to compute net loss per share:
Basic53,524,637 52,854,216 53,321,625 52,241,076 
Diluted53,524,637 52,854,216 53,321,625 52,241,076 




CareDx, Inc.
Consolidated Balance Sheets
(In thousands)
As of December 31,
20222021
Assets
Current assets:
Cash and cash equivalents$89,921 $348,485 
Marketable securities203,168 — 
Accounts receivable66,312 59,761 
Inventory19,232 17,186 
Prepaid and other current assets9,216 7,928 
Total current assets387,849 433,360 
Property and equipment, net35,529 22,044 
Operating leases right-of-use assets34,689 17,993 
Intangible assets, net43,051 50,195 
Goodwill37,523 36,983 
Restricted cash522 211 
Other assets3,828 5,835 
Total assets$542,991 $566,621 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$9,942 $13,337 
Accrued compensation16,902 26,042 
Accrued and other liabilities49,131 37,922 
Total current liabilities75,975 77,301 
Deferred tax liability— 415 
Common stock warrant liability32 139 
Deferred payments for intangible assets2,418 5,041 
Operating lease liability, less current portion33,406 17,394 
Other liabilities249 455 
Total liabilities112,080 100,745 
Commitments and contingencies
Stockholders’ equity:
Common stock
52 52 
Additional paid-in capital898,806 853,683 
Accumulated other comprehensive loss(7,503)(4,670)
Accumulated deficit(460,444)(383,189)
Total stockholders’ equity430,911 465,876 
Total liabilities and stockholders’ equity$542,991 $566,621 




CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands)

Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Cost of testing services reconciliation:
GAAP cost of testing services$18,657 $19,495 $72,286 $71,251 
Stock-based compensation expense(474)(643)(1,529)(2,358)
Acquisition related-amortization of purchased intangibles(329)(329)(1,316)(1,316)
Non-GAAP cost of testing services$17,854 $18,523 $69,441 $67,577 
Cost of product reconciliation:
GAAP cost of product$4,617 $5,159 $17,639 $18,930 
Stock-based compensation expense(269)(133)(1,120)(579)
Acquisition related-amortization of purchased intangibles(411)(471)(1,716)(1,905)
Non-GAAP cost of product$3,937 $4,555 $14,803 $16,446 
Cost of patient and digital solutions reconciliation:
GAAP cost of patient and digital solutions$6,216 $2,347 $22,287 $7,208 
Stock-based compensation expense(449)(173)(1,331)(728)
Acquisition related-amortization of purchased intangibles(236)(226)(945)(684)
Non-GAAP cost of patient and digital solutions$5,531 $1,948 $20,011 $5,796 
Research and development expenses reconciliation:
GAAP research and development expenses$23,570 $22,046 $90,388 $76,525 
Stock-based compensation expense(820)(1,842)(7,391)(7,126)
Asset impairments and write-downs— (2,418)(340)(2,418)
Non-GAAP research and development expenses$22,750 $17,786 $82,657 $66,981 
Sales and marketing expenses reconciliation:
GAAP sales and marketing expenses$23,668 $20,824 $96,027 $77,245 
Stock-based compensation expense(4,701)(2,743)(14,403)(10,887)
Acquisition related-amortization of purchased intangibles(550)(547)(2,252)(1,891)
Non-GAAP sales and marketing expenses$18,417 $17,534 $79,372 $64,467 
General and administrative expenses reconciliation:
GAAP general and administrative expenses$24,776 $24,748 $100,397 $74,964 
Stock-based compensation expense(5,413)(3,964)(20,779)(14,403)
Change in estimated fair value of contingent consideration103 574 (727)609 
Acquisition related fees and expenses(212)(262)(599)(1,127)
Non-GAAP general and administrative expenses$19,254 $21,096 $78,292 $60,043 
Total other income (expense) reconciliation:
GAAP other income (expense), net$964 $(1,653)$997 $(2,362)
Unrealized loss on investments965 1,576 1,181 1,743 
Investment impairment— — 500 — 
Other charges11 (1)43 148 
Non-GAAP other income (expense), net$1,940 $(78)$2,721 $(471)
Income tax (expense) benefit reconciliation:
GAAP income tax (expense) benefit$(173)$901 $(379)$1,426 
Tax effect related to amortization of purchased intangibles(98)(120)(419)(493)
Non-GAAP income tax (expense) benefit$(271)$781 $(798)$933 








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

Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Total revenue$82,384$79,220$321,793$296,397
GAAP cost of sales29,49027,001112,21297,389
GAAP gross profit52,89452,219209,581199,008
Stock-based compensation expense1,1929493,9803,665
Acquisition related-amortization of purchased intangibles9761,0263,9773,905
Non-GAAP gross profit$55,062$54,194$217,538$206,578
Non-GAAP gross margin %67 %68 %68 %70 %





















CareDx, Inc.
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands, except share and per share data)

Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
GAAP net loss$(18,329)$(16,151)$(76,613)$(30,662)
Stock-based compensation expense12,126 9,498 46,553 36,081 
Unrealized loss on investments965 1,576 1,181 1,743 
Acquisition related-amortization of purchased intangibles1,526 1,573 6,229 5,796 
Acquisition related fees and expenses212 262 599 1,127 
Change in estimated fair value of contingent consideration(103)(574)727 (609)
Tax effect related to amortization of purchased intangibles(98)(120)(419)(493)
Asset impairments and write-downs— 2,418 840 2,418 
Other Charges11 (1)43 148 
Non-GAAP net (loss) income$(3,690)$(1,519)$(20,860)$15,549 
GAAP basic and diluted net loss per share$(0.34)$(0.31)$(1.44)$(0.59)
Non-GAAP basic net (loss) income per share$(0.07)$(0.03)$(0.39)$0.30 
Non-GAAP diluted net (loss) income per share$(0.07)$(0.03)$(0.39)$0.29 
Shares used in computing non-GAAP basic net loss/income per share53,524,637 52,854,216 53,321,625 52,241,076 
Shares used in computing non-GAAP diluted net loss/income per share53,524,637 52,854,216 53,321,625 54,410,979 





























CareDx, Inc.
Reconciliation of Non-GAAP to Adjusted EBITDA Financial Measures
(Unaudited)
(In thousands)
Three Months Ended December 31,Twelve Months Ended December 31,
2022202120222021
Non-GAAP net (loss) income$(3,690)$(1,519)$(20,860)$15,549 
Interest income(1,870)(13)(3,762)(160)
Income tax expense (benefit)272 (781)798 (933)
Depreciation expense1,682 860 5,248 2,739 
Other (income) expense, net(70)95 1,041 632 
Adjusted EBITDA$(3,676)$(1,358)$(17,535)$17,827