GRAIL (GRAL) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $32 million, up 43% year-over-year, driven by increased Galleri test sales and development services.

• Net loss for Q2 2024 was $1.59 billion, primarily due to a $1.42 billion goodwill and intangible asset impairment.

• Over 215,000 Galleri tests have been prescribed or sold as of June 30, 2024.

• Completed spin-off from Illumina on June 24, 2024, becoming an independent public company listed on NASDAQ.

• Announced a restructuring plan to focus on core MCED business, reduce costs, and extend cash runway into 2028, including a 30% headcount reduction.

Financial highlights

• Screening revenue for Q2 was $28.2 million, up 41% year-over-year; development services revenue was $3.8 million, up 59%.

• Adjusted gross profit for Q2 was $16 million, up 66% year-over-year; adjusted EBITDA was $(139.4) million, a 2% higher loss.

• Cash and cash equivalents totaled $958.8 million as of June 30, 2024.

• Net loss per share for Q2 2024 was $(51.06), compared to $(6.22) in Q2 2023.

• Operating expenses for Q2 2024 included $88.7 million in R&D, $41.0 million in sales and marketing, and $67.2 million in G&A.

Outlook and guidance

• Restructuring plan to reduce headcount by 30% (about 350 employees), expected to yield $120 million in annual cost savings and extend cash runway into 2028.

• 2024 US Galleri revenue expected to grow 30%-50% over 2023, in line with prior guidance.

• Cash burn for H2 2024 expected to be $220 million, with 2025 full-year burn at $325 million; $27 million in 2024 savings net of severance.

• PMA submission for Galleri planned for first half of 2026, with key study readouts in 2025 and NHS-Galleri trial results expected in 2026.

• Focused investment on Galleri and core MCED business; reduced R&D for other programs.