CareDx, Inc.

Greetings, and welcome to the CARE-DX third quarter 2020 earnings conference call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Mr. Greg Hadachek, Managing Director. Please go ahead, sir. Thank you.

Good afternoon, and thank you for joining us today. Earlier today, CareDX released financial results for the quarter ending September 30, 2020. The release is currently available on the company's website at www.caredx.com. Peter Mogg, Chief Executive Officer, Reg Cito, President and Chief Business Officer, and Michael Bell, Chief Financial Officer, will host this afternoon's call. Before we get started, I would like to remind everyone that management will be making statements during this call that include forward-looking statements within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this call that are not statements of historical facts should be deemed to be forward-looking statements. All forward-looking statements, including without limitation, are examination of historical operating trends Expectations regarding coverage decisions, pricing and enrollment matters, and our future financial expectations and results are based upon current estimates and various assumptions. These statements involve material risks and uncertainties that could cause actual results to differ materially from those anticipated or implied by these forward-looking statements. Accordingly, you should not place undue reliance on these statements. For a list and descriptions of the risks and uncertainties associated with our business, please see our filings with the Securities and Exchange Commission. The information provided in this conference call speaks only to the live broadcast today, October 29th, 2020. CareDX disclaims any intention or obligation, except as required by law, to update or revise any information, financial projections, or other forward-looking statements, whether because of new information future events, or otherwise. This call will also include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles. Reconciliation to the most directly comparable GAAP financial measure may be found in today's earnings release filed with the SEC. I will now turn the call over to Peter.

Thanks, Greg, and good afternoon, everyone. I'm excited to talk to you today about our outstanding third quarter results and the great work our company is doing to improve the lives of transplant patients and caregivers. Before I get to our quarterly results, I would like to thank every member of the CareDx team once again. We have asked a lot from our team during these trying times, and they continue to bring their A-game. Their tireless work and dedication to transplant patients is driving our company to record financial results. In the third quarter of 2020, we reported revenue of $53.4 million, an increase of 58% compared with the third quarter of 2019. Once again, our year-over-year growth primarily came from our testing services, with revenue of $45.5 million. Product revenue for the quarter was $5.4 million, and digital and other revenue added $2.5 million to the top line. We have shown that because of our strategy to lean in and to expand our team, CareDX has never been stronger. And it is a pleasure to have seen Reg grow into the CEO position in this long-planned transition, which we announced earlier today. You have seen us executing a successful business strategy to become a leader in precision medicine, combining patient impact, incredible growth, and building a valuable, profitable company. The same has been true for our people strategy. Reg joined the organization in 2018 and has worked closely with me, the board of directors, and the management team to set the company's strategic direction. Reg has also led the commercial, clinical, manufacturing, and research and development organizations over the past two years, which has significantly and positively impacted the company's performance. Reg has also been instrumental in CareDX's evolution and has successfully executed multiple major initiatives, most notably the acceleration of the penetration of Allashore. In my new active role of executive chairman, I'm looking forward to working together with Reg in the years to come to continue to build CareDX into an incredible powerhouse in transplant care and beyond as we accelerate the growth from our existing platform.