What led to Guardant Health Inc (NASDAQ: GH) stock crash

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Guardant Health Inc (NASDAQ: GH) stock lost over 7.5% in the pre-market session of Feb 25th, 2020 (Source: Google finance) post the fourth quarter of FY 19. The company has reported the net loss attributable to Guardant Health, Inc. common stockholders of $25.2 million for the fourth quarter of 2019, as compared to $25.1 million for the corresponding prior year period. The company’s its Chief Financial Officer, Derek Bertocci, is going to retire during the second quarter of 2020. He will continue to serve in his current role until a successor is hired and plans to remain at Guardant Health and support the company during this transition.

Gross profit, or total revenue less cost of precision oncology testing and cost of development services, was $41.1 million for the fourth quarter of 2019, which represents an increase of $22.1 million from $18.9 million for the corresponding prior year period.

Gross margin has increased to 65.3%, as compared to 57.5% for the corresponding prior year period. At the end of December, 2019, the company’s cash, cash equivalents and marketable securities were $791.6 million.

GH in the fourth quarter of FY 19 has reported the adjusted loss per share of 27 cents, while reported the adjusted revenue growth of 91 percent to $62.90 million in the fourth quarter of FY 19. Precision oncology revenue grew 104% driven mainly by higher testing volume. There were 15,270 clinical tests and 6,316 biopharmaceutical tests performed during the fourth quarter of 2019. Development services revenue grew 15% mainly from new projects in 2019 related to companion diagnostic development and regulatory approval services for biopharmaceutical customers. Total revenue for the fourth quarter included $1.3 million of payments received in that quarter from successful appeals of payers’ denials of reimbursement for samples processed in 2018.

For the full year 2020 the revenue is expected to be in the range of $275.0 million to $285.0 million, representing 31% growth over the full year 2019 at the midpoint of the range. Net loss is projected to be in the range of $155 million to $160 million in 2020.

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