Caredx, Inc. (NASDAQ: CDNA) has reported its preliminary financial results for the fourth quarter and full year ended December 31, 2023, showing a mix of positive and negative trends. The company's stock moved 2.5% following the release, and is now trading at a price of $12.37 per share.
For the full year 2023, Caredx expects its revenue to be in the range of $279 million to $280 million, surpassing the high end of guidance for the fiscal year. This positive revenue outlook is accompanied by growth in testing services patient results, which increased by 4% compared to the third quarter of 2023. Additionally, the company repurchased 2.8 million shares of common stock for $26 million under its share buyback program, maintaining a strong balance sheet with approximately $235 million in cash and cash equivalents and marketable securities, and no debt.
However, there are also areas of concern in the preliminary results. The fourth quarter revenue for testing services is expected to be between $46 million and $47 million, a decrease of 3% compared to the third quarter of 2023. Furthermore, the full year revenue for 2023 is expected to be approximately 13% lower than in 2022, primarily due to the impact of the medicare billing article on testing services revenue.
Alex Johnson, President of Patient and Testing Services at Caredx, commented on the results, saying, "After setting a new volume baseline in testing services in the third quarter of 2023, we finished the year with upward momentum. The fourth quarter showed a second sequential quarter of patient testing volume growth. Our team continues to execute well as we advance transplant patient care."
Caredx will report its final fourth quarter and full year 2023 financial results and anticipates providing 2024 financial guidance during its earnings call for the fourth quarter of 2023.
Caredx, Inc., headquartered in Brisbane, California, is focused on the discovery, development, and commercialization of clinically differentiated, high-value healthcare solutions for transplant patients and caregivers, offering testing services, products, and digital healthcare solutions along the pre- and post-transplant patient journey.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $76,569 | $127,068 | $192,194 | $296,397 | $321,793 | $297,139 |
| Revenue Growth | n/a | 65.95% | 51.25% | 54.22% | 8.57% | -7.66% |
| Operating Margins | -20% | -19% | -12% | -10% | -24% | -34% |
| Net Margins | -61% | -17% | -10% | 0% | -24% | -30% |
| Net Income (k) | -$46,756 | -$21,968 | -$18,714 | $160 | -$76,613 | -$90,516 |
| Net Interest Expense (k) | -$3,701 | $985 | $271 | $160 | $3,762 | $10,578 |
| Earnings Per Share | -$1.31 | -$0.52 | -$0.4 | -$0.59 | -$1.44 | -$1.67 |
| EPS Growth | n/a | 60.31% | 23.08% | -47.5% | -144.07% | -15.97% |
| Diluted Shares (k) | 40,104 | 42,457 | 46,482 | 52,241 | 53,322 | 54,179 |
| Free Cash Flow (k) | -$6,042 | -$3,345 | $33,157 | -$23,247 | -$26,662 | -$4,622 |
| Capital Expenditures | $2,035 | $576 | $274 | $3,953 | $1,423 | $1,800 |
| Current Ratio | 4.16 | 2.07 | 3.95 | 5.61 | 5.1 | 4.75 |
