CareDx Inc (NASDAQ: CDNA) shares plummeted nearly 9% in pre-market trading on Monday, despite reporting strong third-quarter results that beat Wall Street expectations. The decline appears to be driven by concerns over the company's slowing growth outlook for 2025, overshadowing its impressive performance in the latest quarter.

For the third quarter of 2024, CareDx reported a 23% year-over-year increase in revenue to $82.9 million, surpassing analysts' estimates of $80.5 million. The company also achieved positive adjusted EBITDA of $6.9 million, marking a significant improvement from a loss of $10.9 million in the same period last year. Additionally, CareDx generated $12.5 million in cash from operations and ended the quarter with a robust cash balance of $241 million and no debt.

However, the company's guidance for 2025 revenue growth in the low-teens percentage range appears to have disappointed investors, sparking concerns about its ability to sustain the strong momentum witnessed in recent quarters. This guidance, coupled with ongoing legal challenges, pressure on product margins, and uncertainty around Medicare reimbursement, has weighed heavily on investor sentiment, leading to the sharp pre-market decline in CareDx's stock price.