CDNA - Earnings call 3 2023

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Operator

Good day, everyone, and welcome to today's CareDx Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this call is being recorded. [Operator Instructions] It is now my pleasure to turn the call over to Greg Chodaczek, Managing Director. Please go ahead.

Gregory Chodaczek

you us thank and afternoon, for today. joining Good results quarter ended today, CareDx XX, the financial released Earlier September for XXXX. The the release company's on website at is www.caredx.com. currently available

President Testing Joining Board. CareDx's Woodward, of today Chief joining Financial Alex is today Also the Robert Johnson, Officer. the call Officer; and Patient Abhishek Services, the on and Scientific Jain, Michael Chief is Chairperson of call Goldberg,

pursuant include started, the in forward-looking made during Act laws our upon this Reform limitation, that harbor decisions, be uncertainties get of financial historical statements. we without to risks based contained not that statements management are statements. All of this that should safe I statements be be statements making not which provisions are to pricing including, meaning everyone Before or Private to Securities the anticipated to results materially involve and call enrollment trends, forward-looking differ coverage expectations matters, would material and statements, on remind examination and will our actual statements cause those historical that securities call of of forward-looking within various XXXX. by assumptions. Any federal like the current are expectations facts Litigation results regarding reliance these Accordingly, These of undue could forward-looking estimates and you from place these statements. should implied statements operating and deemed

future intention to most update to law, with accepted financial turn accordance except GAAP Exchange otherwise. revise and of information the the SEC. I directly only over descriptions obligation, November principles. risks filings information, Reconciliation business, of call financial by measure not uncertainties or of financial now conference or other the forward-looking call see that list or projections required Alex. disclaims include to XXXX. found the also this discussion the CareDx in measures today, broadcast accounting call new provided in will with release any events This with Commission. The generally with a earnings information, and to certain a any X, may be will associated because our or are For live please in of statements, whether Securities speaks calculated our the comparable today's

Alexander Johnson

Good call Michael and I search we by the Thank Michael, everyone, priorities announced on and Abhishek shareholder CareDx's the you, transition strategic you for Services, Board CEO. a the increasing call. Patient Abishek the of new Greg. Testing President joining the Alex a conducts week. Goldberg, its executing The afternoon, I'd like covering briefly begin of the for of Johnson, newly against today's thank Chairperson Board; of CEO and along Jain, formed and today's with while last of CEO, member and to office are returns, I'm aligned CareDx's CFO. importance

We our have the forward. strong team CareDx and company leadership move entire to confidence the in in team

during of On know for Abhishek responsibility member current Maag, on transplant as business those Peter also from years, the for and better worked X decade time have services of our many advanced Novartis. of I [ lab have Reg XX and IPO largest to yet thank Board the former work well I've we his I've who to the past at behalf have past with CEO testing ] X been CareDx's dating business to together privileged with for longtime development. tenure. been CareDx's for CareDx, ago you care nearly Michael years. part as our you contributions of the have business, products to as Prior I our that, met, managed business a I incredibly for years. For not fortunate whom with for had

very best. the for foundation strong a have We growth, wish him future we and

and our quarter million, Moving normalized patient of to results, and year In increase X% first of financial and from as will our that transplant market CareDx advocacy our recognized the revenue an revenue. million excludes Today, revenue efforts. QX second quarter $XX.X XXXX raise held around QX to Normalized XXXX third the environment guidance Medicare QX, reported additional the previously going claims quarter to our full in XXXX I billing of on quarter decision compared were discussed revenue XXXX performance. to of and $X.X third discuss finally, discuss performance provide I'm impact results over to revenue. related context

compared QX X% to at growth $XX.X the revenue services quarter million, for in XXXX. second came normalized of of Our testing

Our XX,XXX now in see stabilized. [ as testing set we last result period a patient the quarters, volumes the After uncertainty the to services appear testing being business ]. patient services have few testing grew of baseline services X% to in quarter-over-quarter

which the We market, to be expected transplant continue continue to growing placed is grow. well in and to is

to acquisitions. growth million recent by $X.X our Next, organic business our year-over-year XX% solutions driven from transplant digital grew

earlier nicely, and Some beginning to helping leverage our drive operating to of both our us scale acquisitions moat. are strengthening

year-over-year $X.X driven business lab million revenue Our realized by growth NGS-based the XX%, products portfolio. success of with of of our

been improved pleased of is improved an a ongoing result our are and revenue performance, an in products, efficiency on driving lab which which effort. We enhanced with focus has

reduce progress full helped results. impact revenue overall We mitigate to base, are continued year has lower our our expense on pleased article the with billing our which actively

to continue for efficient. ways will to be more look and We effective

as with $XX.X loss EBITDA EBITDA million adjusted of the quarter loss compared was QX. adjusted in normalized Our $XX.X million current in

operating be and EBITDA to this flow we positive, adjusted is are and demonstrable show goal pleased to metric. Our on cash progress

forward. our in confidence have We going outlook

opportunistically of remarks. our repurchase his of XXXX guidance to be year $XXX part we will and in full undervalued, during range week, last Abhishek of stock stock program. previously $XXX our announced are In provide repurchases additional belief that million, announced we light position pursue details the to cash million our revenue now raising strong to currently and will expect continue CareDx's is as stock As

established catalysts and for its QX, Lung AlloSure Since coverage discuss care. Lung has approved reimbursement for coverage that AlloSure in such reimbursement testing surveillance. patient portfolio a as was care. received Kidney AlloSure other generalizable valuable has for multimodality XXXX, our This lung coverage. Heart heart I'll increasingly came for UroMap. and announced modalities Medicare our fruition. be launch can Next, for X in become for multimodality We previously In care path to transplant

increasing continue focus payer We coverage. to on commercial

national compared For example, AlloSure at for X year. plan plans to to X months and expanded start coverage regional X as Heart X

plans also We Kidney. regional for X for coverage AlloSure gained new

], we QX, kidney variety [ our allograft AlloSure in will additional wide have a calls. is surveillance anticipate is to Today, solutions, payer We now that highlight in can the potential progress Medicare, exciting, greater in facilitate want highlighted kidney have we to past, registry ]. our to KOR move payers, patients. and has about use in XXXX. [ outcomes including provide and [ the to of of pipeline one, When and a Moving I catalyst. analysis. data KOR a different on with we clinical catalyst, respect visits including ] KOR testing Kidney, for has which insights AlloSure will completed Kidney, the talked cover future of catalysts next in clinical last publication to of slightly clinical to the we utility coverage robust which continue

in be us bring our products To most to patient that strongest investors our Our also priority while midterm. to value and creating capital the in innovation mission help to is transplant businesses short the of this on deliver stewards to good pipeline new care invest for to environment. in

Our strategy has not changed.

survival. long-term And allograft to a century improving outcomes, We transplant this commitment have continue. extending patient quarter nearly will

expertise We the that both of and commercialization benefit CareDx can and team. are confident the patients innovation investors from

to the about drugs potential year, kidneys Next, continuing U.S. be There and the dialysis only the and XX,XXX limiting want transplants I kidney around per in conversations volumes. address organ factor. GLP-X transplant impact patients XXX,XXX about with are supply their to on

may impact the ] to potential beyond current note eliminate to [ kidney. have become transplant be GLP donors there's due drugs some improving the to GLP feel reducing as dialysis to need the kidney number a overall pool, of patients the of is the a dialysis in their respect delay supply, donate also useful eligible volumes. their more the health patients, confident kidney drugs With transplant donor on and for living to to increase potential may by it for or potential major help While driver BMI. potential ones of trend lines healthier Living increase have volumes their GLP potential the which donation to or

advocacy call Abhishek, I would efforts on over touch Before turn transplant our on of behalf patients. the like to I to

restore have We efforts well as as and Medicare Medicare beneficiaries. to advocacy in action with discussions [ full legislative HHS engaged patient access for and helping ] to support been actively

In [ transplant wrote patients. Brooks in access on Street to decrying for in to bipartisan patients. coverage On new mid-September, to Journal Editorial date. Medicare September, rollback have [ We reconsider of editorials a Moldex benefit from of Board quarterly held administrator, proposed on progress to the meetings to CMS [ ] published molecular MolDx proud the for fight both X made results the XX meetings to to transplant We rejection. comment Then for LeSure the on critical group tests Palmetto open members outlook, Congress will August good limits public Tokita to turn that details on the testing ]. Wall open CMS ], challenge the that, these we'll I'd Noridian and XX, discuss Abishek? go and molecular call LCD transplant like allograft there to to Q&A. Abhishek CareDx innovation. With access for continue our broad presented at over have and the community and to was additional to

Abhishek Jain

digital quarter. and revenue one, to revenue that highlights million. compared reconciliations XX% $XX.X on net will EBITDA testing reported the with as as million, to In Number from $XX.X last refer another million of Patient the of approximately second otherwise of and positive information. Key second 'XX not the additional as financial Number million revenue, vertical focus to of collection. over Alex. down on residual patient Medicare first you, remarks my cash to two, provide we intend million QX detail making were and quarter. update non-GAAP were I to year-over-year. Also, strong four, the second exclude the and held to appears close and of refer as X% compared our each $XXX.X Number will enforcement financial consecutive results. my to on demand were: to over $XX.X million last impact quarter growing compared three, will in of action for $XX.X adjusted business strong impact as collections volume normalized paid five, XXX% GAAP products cash my services increased recognized billing a results it Unless of Number its $X.X on well normalized testing of QX tests revenue delivered financials revisions detailed our an services our quarter $XX.X inquiry were not SEC and with to position as stabilizing as increased quarterly test be an comparisons QX million. it in results, results X% 'XX least, non-GAAP related Thank quarter does of losses remarks with company. maintained noted, the And businesses at against Please the performance solution reported quarter. today, the services guidance. but fourth some normalized revenue number concluded to our

$XXX the in our we full to Given $XXX for quarter announced of million of to the the $XXX million are third strong million to from guidance previously guidance $XXX [ 'XX, ]. our million raising year 'XX results revenue

of was the volume heart details. the not for the second tests the revenues [ $XX.X to quarter, were third X% recognized the quarter. covered reported In across care criteria ], QX up first transplant. Noridian of third test the approximately article. post in million, compared quarter Moving the for the approximately distributed out. revenue million was meeting was services surveillance XX,XXX compared Reported hard X% quarter to as testing quarter. transplant billing for in XX third volume use all as testing increase to post in services up in adoption normalized revenue not $XX.X the coverage for [indiscernible] The MolDx months last

a onetime with Lastly, payer our revenues a by settlement in large medical outstanding positively QX impacted for claim claims. advantage were

in 'XX quarter. quarter margin Our compared services XX% was as gross third last XX% the testing to of non-GAAP

services testing XX%. was quarter gross second normalized margin Our non-GAAP

discussed as quarter benefit onetime current at be rate. margin Our previously of settlement royalty included Stanford [ the approval which benefit gross ] reversal, claims will of the and now a the a lower paid

businesses. turning Now to other

XX% third third the $X.X ago. to improved percentage of XX XX% patient revenue recorded to a in Our digital growth year gross of of 'XX points margin business XX% a quarter continued and expansion our compared the initiatives by year. cost same million, acquisitions. gross quarter in driven solutions Non-GAAP has in margin last as quarter savings as profile growth, been of organic to higher the margin compared revenue new the Gross and

delivered year. million business increase revenue the XX% the Non-GAAP XX% gross to as in quarter XX% of 'XX products $X.X improved of quarter quarter last same percentage 'XX, an compared points. in the as same last third of increase Our year, third in the in to compared to quarter XX an of margin

Our for business. improve gross look opportunities margin to goal this to is further continue to for

consolidation throughout chain to that increased our on importantly, patient supply work improve We streamline efficiency continuing site and are operations, will manufacturing our care.

million, impact expenses from $XX.X down The in and to workforce decrease marketing Non-GAAP in EBITDA. adjusted by savings in million actions our to our R&D to as quarter for R&D last as were 'XX. the QX and response spend cost $X.X $X.X was investments to expenses to full Turning driven compared reduction, million division. third article last quarter and compared driven quarter, sequentially matters sales discretionary of the and the increased of approximately by and spend. our million operating of litigation expense operating $X.X continued quarter G&A related various billing prioritization and our

elevated We [ to actively reduce are to these transient working ] expenses.

of in an third improvement For normalized to reported second EBITDA quarter EBITDA $X.X adjusted of million quarter. we $XX.X 'XX, million adjusted quarter $XX.X compared compared million 'XX, the of as to the of of last negative negative

the adjusted EBITDA with in we pleased losses. are have We progress made reducing

to Turning cash.

$XXX.X We debt. no cash sheet ] [ continue to with equivalents securities balance maintain a and strong cash, million of and marketable

For in a services of quarter the testing greater collections our our XXX% revenue. fourth row, were than

collected quarters. in now in over last X have cash incremental million We $XX the

note to reminder, $X.X include we earned interest from like program quarter income would 'XX. payments in million third expanded Medicare and overdue that have I Payers also As to a to Advantage. our similar collection commercial Medicare the in we of

on position pursue continuing earlier, undervalued, mentioned stock are stock currently and based is to Alex our that opportunistically As cash our believe we repurchases.

of and impact our plan. on the revisions billing to financials mitigation article Turning

revisions with and progress, to speak requirements, made new added quarters, article uncertainty efforts billing First, disruptive in centers. past and operational [ production billing tier We and In article business. themselves both complexity X ] internally of were of our focused we our the for and transplant on supplementation. results that terms great implementation the

We that our our September, are XX% and over services pleased end to of of the report target. for [ kidney heart ahead at tier production ] was test initial

billings Second, revenue testing 'XX, in stabilize processes we volumes have changes services [ ]. necessary are in we [indiscernible] across implemented seeing our and QX and recognition

being As heard set. from believe you a are we baseline we Alex, seeing

is the largely Our partially reduction program previously impact announced complete, of financials. cost the our us article helping offset on billing

have revenue. test; drive be G&A reimbursement to on is And elevated and expenses. goal spend further cash of one, our in based increased Our number we our the operating level gap, number number specifically new of profitable adjusted growth; and reduced to operating two, levers legal unpaid three, organic EBITDA this efficiencies flow expenses, positive finally, bridge

actively We one of each levers. are these pursuing

increase the million, of midpoint. Finally, guidance. to are in year in the on turning at guidance 'XX $XXX $XX be full million strong an to our $XXX Based to we of QX results range million 'XX, raising revenue

approximately three, we cash and remains the of post of adjusted flow [ revenue a tests outstanding currently to X% impact which $X into number volume need claims Noridian hot raise in advantage levers expect revised assumption new with coverage potential disruption. Based revenue services onetime and lower the seasonality not Our for also and we due number that full X, weather testing to with associated holidays reimbursement two, positive, and of large with going assumes to assumes the are the assume as guidance, care the criteria payers and a gap Medicare QX being adoption in headwinds set million to ] cash around approximately EBITDA medical settlement QX baseline our hear outside future. number implemented, viable the do foreseeable new quarter on

of by questions. the that, demonstrated financial line to open proud continue I'll discipline during to the to hand We the over the for be entire moderator the excellence quarter. With and the team optional

Operator

Our question [Operator Instructions] Raymond first Andrew comes James. from Cooper,

Andrew Cooper

just first, you Maybe want margin on right, dynamics. the to sure caught I probably make check gross

can the amount So what there of does a just us that? like? adjust of for gross more to the settlement MA can the XQ for services stable the room to front? trajectory Or so just maybe like of you And think testing that a to on as rise? margin look we calculus sort of dollar really then the from feel give we in sort purely there about terms improve see continue cost Is it on place goods can reimbursement is onetime

Abhishek Jain

talk you. the testing XX% gross onetime called higher Yes. Andrew, I as the million. out good And couple And I in of guidance, margin for side called because events, they $X about those of were the slightly couple to services, on also is of out. events that to my the

gross take of you about kind going about which forward, ]. So was I'll you if QX back normalized [ were XX% the to margin, gross think to margin

QX. that, said have progress having more we in Now on made gross our margin

as we So and forward. not of two, to one, and continue [indiscernible] as the leverage were in next probably bad move we grow revenue modeling operating to we at that for the as more a in forward look may idea, come on course, go to more be number number and come But call.

Andrew Cooper

surveillance headwind heart appreciate in And then you Helpful. the XQ. sizing Okay. I

already to Do incremental of that you beyond to that be a how there's repackaged and care potentially docket Just of what surveillance? you way curious way Do that XX-month feel you in what to may fight and expanding in studies? Just expansion move trajectory like can on window? need trying the there the there? should for on months we needle have a take heart terms maybe for XX about think the beyond

Robert Woodward

for customers, We of Yes, do that these from studies coming from accounts question. in the anticipate we publishing this Robert. CareDx up, tests both are and that is using our Thanks see some and opportunities publications various independently. key and

So XXXX. those looking for those in difference make and tracking a we'll be to sometime

Andrew Cooper

quickly. one Great. one Okay. And just maybe last

decision of in terms of body. closing SEC any what's remaining DOJ closure from been progress? UPIC the time frame without With can the hearing amount conversations? the outstanding issue some of or audit terms just inquiries. potentially else the move provide Or you Anything to there the the Has of forward in we on think about should ongoing

Abhishek Jain

Yes, Andrew. sure,

this In fact, investigative not they matters similar the that previously any us and the received month DOJ. And sent kind the the demand had outcome. And taking whole letter enforcement we that the are of pleased we into that the SEC from in to with disclosed looking were we they we extremely are inquiry course, of September of action. civil

letter this having and us. is from a SEC good for the So outcome conclusion

we'll do And talk you side. matter side. Robert, be soon as there -- of I'll DOJ would as want for if a say concerned, provide to I is but matter out resolving, about As the cooperating speculating years. to far more kind color are probably I how want more we the been UPIC were to has this just to the to but DOJ on this nothing that of say there, be couple see

Robert Woodward

taking any ongoing on requested Yes. eventually some process they and claims indefinite there's I just -- them. movement the or haven't to in we an these could that at appeal UPIC And audits, quarter to get additional and intend always point. intend appeal an like there other of obviously, mention any some review actions. the we'll was that

Operator

Sukes, Our next Matt from question Goldman comes Sachs.

Unknown Analyst

Matt. is Prashad [ This ] on for

like? a to your the get and your new for what Just for looking you're on what wanted thoughts duration search the in search of looks CEO

Michael Goldberg

takes our plan We're who somebody but profitable Michael. performance install, and for improve growth X experience, new that This my investors. identify, In are generally that's it on. to to long-term strategic to we that take to X I'll is to to looking execute one. a the can months Sure. install CEO. deliver currently continue

So today executive leadership the confident for in executing able in place be the they be put responsible Board to is to XXXX. will plan that team solely together of entirely

Operator

comes Jefferies. Brandon Our next from question Couillard,

Unknown Analyst

in the should provide can adjusted This number initiatives kind around the the feel now color those comfortable volumes? that is stabilization and flow bit Brandon. EBITDA goals. and you a we on think targets? then timing get kind could stabilizing Matt on of volumes more to about of of underway both for hit more Any cost you with terms when I to of positive and appreciate cash How actions you of those clarity

Abhishek Jain

take this had in in that the to you not we profitable of probably an that a testing billing put I'll by million by here first the in $XX like almost profitable on been in like services this that article, would And script. the year. last itself QX in a recall my QX, have stake apple-to-apple were Then dropped quarter, year we our out basis going if billing Yes. the second year. I been they're article. ground of the called we hit back be the step last And half we by in impacted

And bridge on I looking pleased which on to we are at positive. multiple we GAAP we definitely adjusted thoughtful of coverage the made because course, to getting $XX more quarter, are flow that of On goal in we there, will that I levers, of adjusted have if particular this color at alluding EBITDA progress volume in provide we market paid need services being was paid is and and not have And are operating more for how tests of more the next that you positive then, and to table, a about as renewed at kind be cash structure because think call we is on operating million are course, timing, and million secular our of focus volume. our is with able everything. returning testing specific $XXX transplant you to we there. have probably growth effective on about get the And I efficient EBITDA on the that So of proud to some the current look too. in and now, kind and of the there if the extremely

So multiple we quarter there in good where to We are levers, lines, we and call have we'll for next progress. made but little of terms in are, wait specific that a QX. we have the comfortable as how the time things stabilizing feel bit more information are

Operator

question Massaro, next Mark from comes BTIG. Our

Unknown Analyst

This is [indiscernible] Mark. on for

you So surround discussed around like last behind this be testing. hesitation dynamic kidney quarter, ordering clinic It appears us. might

you or that that be any us backing spoke you can headwinds happened in of what just one-timers out? benefit QX? we prior rolled should here And can collections in about know to just just onetime other one-timer, drive discuss for Medicare I remind So off here QX. sort the or any but of you volumes these period factors you

Alexander Johnson

of I And really some seen the last over that progress we've months. pleased Thanks. think X with we're the

One of education. effects lot X this systems, do their centers to of had time now a transplant update is procedures, of the the months having the to their have

I understanding things, of of how where not was do. but there lack to just think to So a do

institutionalize they're had Now what and absorb clinicians thinking. really enough this have time to

for opportunities and ahead looking much very the their understanding future. very we're these very good that ordering good today centers feel and a of have So is where

Abhishek Jain

couple second those a in let onetimers out pieces. the of called the take Sure. QX. question I around part your And of me

billing The first heart post after adoption. are one [indiscernible] that not recognizing the is care, article on [indiscernible] we of the revenue the adopted

recognize into second So event the that Noridian hard the the tests that care QX, to for not going million means those X be [ And events. will $X available and this settlement these is claim about into prior revenue adoption, ] is we for the onetime QX. that number

So call there standpoint. onetime. would be need numbers isn't that on material modeled the the out than But the a piece to that, that's I that from would other

Unknown Analyst

what might evidence care when completed of updates Sure additional And about these how to remind any I and guess, underway just [ thinking Understood. on that you study. or Perfect. we on front. Can then we've see on that heart support us provide generation readout a Okay. ] just you're the studies

Robert Woodward

them actively appeal demands. We're covered And getting in interim X when about the the The combined best desire and specific without management the putting patients some will that or restriction order to [ only ongoing and results. study many analysis have heart but care payments any on just care And publication question earlier reminder are is so those with -- of is extending out in of beyond for months the looking docs for heart data, ] This cases, readout XX submit publications a time. to Sure working need work for and data resend to for including already from Medicare Heart X together and with in Sure. monitoring. we're both at AlloMap that Heart an XXXX. goal on an a on AlloSure

Operator

Our next Capital Group. question comes from Alex Craig-Hallum Nowak,

Alexander Nowak

a story. of parts the I lot the back expand here just departure want CEO go around Maybe with Reg. on obviously to transition. the of There's moving

to those now? [indiscernible] just And name to moving departure needs is out there to ] important [ this I a successor how challenging the parts fairly quickly company to here why time. think the Board during leader company the guide the the

Michael Goldberg

in is are there's and These are elements personal of nature. it complex this Alex, Yes. that situations Michael.

that wanted because I'm other for we're going set In right Board plan was establishing budget more operating in at the company it themselves right. now. provide was process into and to part, for time than say XXXX, to much So and up success not time was mutual the and to the on planning that the

that execution. its leaders group because So going be senior we they're capable wanted We're responsible XXX% a cultivated. that plan position had to to extraordinarily of to that constructing for make for sure responsible Reg [ be ] XXX% in

We or think here functional beats a Abhishek, that there business. up deferred the an Now the We business experienced set CEO with a of decisions that meet structure think is we There the as and basis. executive well qualified extraordinarily myself. Alex stable. and on the and missed office this capable no virtue by team CEO. we've daily operating in And of we're is

So the in until we've we're is comfortable prepared that identified a got installed. CEO and to operate that Board fashion

wouldn't worry. I So

In fact, I would be cautiously excited.

Alexander Nowak

from we Okay. Understood. can into revenue again, burn, the there. of I of cash can and set same us, we go of going on pieces the annualized to all $XXX appreciate thing off that basis, level cash this kind then for there. revenue an burn. it, little the kind is we a the on then million quarter, But grow if the just And to then call be XXXX? on information that floor take And

about look change, just be I the Is cash point going to that's burn and low better of all you this quarter. got the assume to go that If correct? get $XX we're annualized on million here, forward. at only cash the

Abhishek Jain

there Yes, the changes cash, for maybe example. in those a Alex, couple of But assumptions. firstly, on

out overall the that reduction million, acquisitions there. $XX.X called activities of about investing we the includes So your

If you that's look about at our operating cash, million. $XX

piece would a billing the will that that QX. second the So because we would suggest have I And impacted probably out. by cash piece the that look burn call I the maybe on be articles first in to were

did last and the burn of the have impact the X last in services operating how testing on the billing cash we at quarters. quarters really article look the side in So X much

any do company I I to the okay, give that, called to in be as burn. sense So that how you range going that would reduce taking then probably cash out burn forward actions. And some without cash

losses the million the the we again, from current of the comes assessing. We from, So impact million cash levers say, adjusted say, currently the quarter. are multiple the now EBITDA the $XXX to burn, article that of, $XX billing in in brought down reduction

And remaining growth, revenue transplant ] this our the to our that the market, bridge testing the digits the volume been and our would market That grow to could in secular in be alongside need gap. first we continue [ of growth be tale high lever. volume Now how has that. single kind services we growing

we the table expand reduce that work paid to structure, the of has G&A second will second of last been on back were burn. to the cash commercial is be as few article the sense down The billing collection pay is higher the coverage to been be improve levels third the continue the where prior able last cost our another impact of because if legal the that that be all you definitely to do in to is in spend year to the to course, the how paid, the looking And to our G&A lever, were the how expenses, with get give into to how we going have course, article. spend half and payers you billing to the our to it program continue quarters specifically much we SG&A, lever of

certain have So we reduce levers here the burn. be to able make that basically assumptions. I'll cash to

in I'm earnings provide our the cash my But next the is these ballpark. in on burn call. of I'll third that in $XX quarter. million And So color mind more most the for not

Alexander Nowak

to trying always I on I'm of then was a I And talks question understand the through why was remarks final hard helpful. tricky interpretation submitted a the XX-Q claiming know should some is heart Very XX-Q just And here. to in language reimbursement Noridian care the letters care during Excellent. and being just prepared about be XX-Q, item. looking the covered. the the

question really, paid now that? the care? the actually getting heart that Noridian company so And more interpretation is paid [indiscernible] for care be is right Noridian for should and reimbursing for hard getting is Or

Abhishek Jain

we that So Andrew, we been But and the more where disclosures year in to so more unravel lot XX-Q, have things have and in detail. transparent this for very has a be me you. been want provided complicated, our let a

after was [ revenue one heart care On and care, is, on for which greater any recognized test post heart not we have surveillance than ], year. Noridian say, that, the not which the XXX adoption, the basically

So that's completely out.

So that's on [ XXX that. simple in says, that as exactly nothing what it is more than Noridian adopted as compliance ] with what are

the the been set coverage the out on do on baseline So from based has article which been is we've and everything what standpoint. asked already billing there to standpoint

Operator

comes Carrico, next question Stephens. from Mason Our

Jacob Krahenbuhl

level on across I heart found recent This But us growth room specifically kidney? this around heart the you like the more multiple quantitatively to stabilized as the give coverage is given Jacob well or iterations whether maybe stabilized organ care. the color Krahenbuhl slightly a the sequentially. as wondering, increased building on quarter volumes just given actually qualitatively color Mason. level, with a Could article for some appreciate funding you type, LCD and and

Alexander Johnson

-- I Sure. context can of little bit can Jake. a Yes. give this Alex. I is on that,

think the past all volumes organs. in growth growth I from for we X quarter, and service test and this volumes saw

stabilization this is we from. that can so really created grow we this the -- And now baseline very good has felt that

Operator

question H.C. Our final Dipesh from comes Weinright. Patel,

Dipesh Patel

Could of regarding Dipesh from monitoring on further part you Yi. molecular to you to detect tests if transplant clarify see MolDx of for expect as is updates coverage perhaps the rejection. care organ any This routine

Robert Woodward

article of at comment. draft the is we're a they that couple of community, open iterations after right think bill then the now I changes LCD are and to where a a those propose coverage. and is And for perspective now that of

And has X forward based open move final comments expect them the of received policy so then a and we more passed ] coverage to and for period already [ comment from X it they've draft the was process. on the And produce max in that. the are would

so normal the there's to surprised timing And before that that's but rule often I different we're finished if We've been August be that's and the happen. around original from a asked, was process. to we released. what past, expectations, And the would before the year, of something expect has that our that's, think, sometimes is in draft next

Dipesh Patel

how grow Got might lastly, going to sequentially helpful. the And very volume it. forward? expect you That's then testing

Alexander Johnson

far. guidance us Look, we're seen I so would certainly that certainly, change nothing think that thinking the and make we've quarter, from the in there's this

growth see weather of some we've baseline the So certainly can seen from. in out, and I now being of think that think ahead how a to hit certainly we're we'll set grow us, like quarter we But feeling stabilization baseline storms that terms and a we've in such. there's have plays and I winter

Operator

would questions over like back the queue I turn at call We this to have no now time. the in further to today's speakers.

Alexander Johnson

you Great. Thank very the best Thank you. you this afternoon. We all. wish

Operator

you program. for conclude today's does This participation. Thank your

time. disconnect You may any at

CareDx (CDNA) 8 Nov 232023 Q3 Earnings call transcript