What happened

Shares of Guardant Health (GH -3.35%) jumped 12% on Friday following the company's announcement of its third-quarter results after the market closed on Thursday. Guardant Health reported that its revenue skyrocketed 181% year over year in Q3 to $60.8 million. The company posted a net loss of $12.8 million, or $0.14 per share, a significant improvement from the prior-year period and much better than Wall Street estimates.

In addition to its stellar Q3 results, Guardant boosted its full-year 2019 guidance. The company now projects revenue between $202 million and $207 million, up from its previous guidance of full-year revenue between $180 million and $190 million. This midpoint of Guardant Health's revised range reflects year-over-year growth of nearly 126%.

Test tubes with DNA helixes

Image source: Getty Images.

So what

Guardant Health's Q3 update shows that its liquid biopsy products continue to enjoy tremendous momentum. The company said that 13,259 tests were performed by clinical customers and 5,280 tests were performed by biopharmaceutical customers during the third quarter. Those numbers were up 89% and 111%, respectively.

While the test usage numbers were up, Guardant's revenue soared even more for a simple reason: It was able to charge more per test. A growing market for the company's liquid biopsy products with the ability to command higher prices is exactly what investors wanted to hear.

Now what

There could be even more good news on the way. The company awaits Food and Drug Administration approval for its Guardant360 liquid biopsy used in clinical testing of cancer patients. FDA approval could boost sales for the product even more.

Guardant Health also recently kicked off a big registrational study of its LUNAR-2 blood test to screen adults for colorectal cancer. The company thinks that the potential market opportunity for its LUNAR liquid biopsy tests is significantly larger than the market for its current products that are driving its revenue higher and higher.

With seemingly nothing but tailwinds, Guardant appears to be one of the most attractive growth stocks on the market right now. There could be some bumps in the future, but for now, it's all fair skies for this high-flying healthcare stock.