NEW YORK – CareDx reported after the close of the market Thursday that third quarter revenues grew 5 percent year over year to $79.4 million from $75.6 million, falling shy of analysts' consensus estimate of $82.6 million.
For the three months ended Sept. 30, testing services revenue dipped 3 percent to $64.8 million from $66.5 million in the same period of 2021. Meanwhile, product revenue grew 11 percent to $7.2 million from $6.5 million, and patient and digital solutions revenue nearly tripled to $7.4 million from $2.6 million.
In a conference call with investors, CareDx President and CEO Reg Seeto pointed to the impact of foreign currency, ongoing staffing shortages in HLA laboratories, and "decreased living donor kidney transplants" as headwinds against growth in Q3.
Conversely, Seeto noted that potential future tailwinds could come from anticipated reimbursement decisions.
"AlloMap Kidney is currently under MolDX review," he said, "and we're completing CLIA implementation work on UroMap in preparation for a future MolDX submission."
The firm reported a Q3 net loss of $16.9 million, or $.32 per share, compared to $11.9 million, or $.23 per share, in the same period last year. CareDx did not provide an adjusted loss per share figure. On average, analysts had expected a loss per share of $.14.
CareDx revised its revenue guidance for the year downward to between $320 million and $325 million from a previous range of $325 million to $335 million, citing lower Q3 revenue and a higher-than-expected shift toward commercial payors.
Nonetheless, Seeto expressed optimism for future growth, citing the planned commercial launches of AlloMap Kidney and UroMap, improvements in collections, possible AlloSure guidelines inclusion, and coverage expansion through AlloSure Lung reimbursement.
"We're starting to see signs of improvements in our cash collection with improved collections in Q3 versus the prior quarter and year over year," Seeto said. "However, the reality of long collection cycles of Medicare Advantage and commercial plans mean that visual progress will show up with a lag."
Although asked during the call, Seeto declined to provide an estimate for the company's anticipated KidneyCare launch.
CareDx ended the quarter with $83.0 million in cash and cash equivalents, and $208.3 million in marketable securities.