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Veracyte Announces Second Quarter 2024 Financial Results

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Veracyte reported a 27% increase in total revenue for Q2 2024, reaching $114.4 million, driven by robust performance of Decipher and Afirma tests.

Testing revenue grew by 31%, while test volume increased by 23% to 39,023. Net income rose to $5.7 million, up 168%, and adjusted EBITDA was $24.0 million, representing 21% of revenue.

Decipher Prostate test volumes surged to nearly 19,900, aided by updated NCCN guidelines. Afirma test volume was approximately 15,700, bolstered by new Medicare coverage.

Total gross margin improved to 68%, and non-GAAP gross margin to 71%. Despite a 3% decrease in product revenue and a 22% decline in biopharmaceutical revenue, operational cash generation was strong at $26.7 million, ending the quarter with $235.9 million in cash and equivalents.

The company has updated its 2024 financial outlook, raising full-year revenue guidance to $432-$438 million and expecting year-end cash reserves of $260-$270 million.

Veracyte ha riportato un incremento del 27% del fatturato totale per il secondo trimestre del 2024, raggiungendo 114,4 milioni di dollari, sostenuto da una performance robusta dei test Decipher e Afirma.

Il fatturato dei test è cresciuto del 31%, mentre il volume dei test è aumentato del 23%, raggiungendo 39.023. L'utile netto è salito a 5,7 milioni di dollari, in aumento del 168%, e l'EBITDA rettificato è stato di 24,0 milioni di dollari, pari al 21% del fatturato.

I volumi del test Decipher Prostate sono aumentati a quasi 19.900, grazie alle nuove linee guida NCCN. Il volume dei test Afirma è stato di circa 15.700, sostenuto da una nuova copertura Medicare.

Il margine lordo totale è migliorato al 68%, e il margine lordo non GAAP al 71%. Nonostante una diminuzione del 3% nel fatturato dei prodotti e un calo del 22% nel fatturato biopharmaceutical, la generazione di cassa operativa è stata forte, pari a 26,7 milioni di dollari, chiudendo il trimestre con 235,9 milioni di dollari in cassa e equivalenti.

L'azienda ha aggiornato le sue previsioni finanziarie per il 2024, aumentando la guida al fatturato annuale a 432-438 milioni di dollari e prevedendo riserve di cassa a fine anno di 260-270 milioni di dollari.

Veracyte informó un aumento del 27% en los ingresos totales para el segundo trimestre de 2024, alcanzando 114,4 millones de dólares, impulsado por el sólido desempeño de las pruebas Decipher y Afirma.

Los ingresos por pruebas crecieron un 31%, mientras que el volumen de pruebas aumentó un 23%, alcanzando 39,023. El ingreso neto se elevó a 5,7 millones de dólares, un aumento del 168%, y el EBITDA ajustado fue de 24,0 millones de dólares, representando el 21% de los ingresos.

Los volúmenes de pruebas del test Decipher Prostate se dispararon a casi 19,900, ayudados por las nuevas pautas de la NCCN. El volumen de pruebas de Afirma fue de aproximadamente 15,700, respaldado por una nueva cobertura de Medicare.

El margen bruto total mejoró al 68%, y el margen bruto no GAAP al 71%. A pesar de una disminución del 3% en los ingresos por productos y una caída del 22% en los ingresos biofarmacéuticos, la generación de efectivo operativo fue fuerte, alcanzando 26,7 millones de dólares, cerrando el trimestre con 235,9 millones de dólares en efectivo y equivalentes.

La compañía ha actualizado su pronóstico financiero para 2024, elevando la guía de ingresos anuales a 432-438 millones de dólares y esperando reservas de efectivo a fin de año de 260-270 millones de dólares.

Veracyte는 2024년 2분기 총 수익이 27% 증가하여 1억 1,440만 달러에 도달했다고 발표했습니다. 이는 Decipher 및 Afirma 테스트의 강력한 실적에 힘입은 것입니다.

테스트 수익은 31% 증가했으며, 테스트 수량은 23% 증가하여 39,023개에 이릅니다. 순이익은 570만 달러로 168% 증가했으며, 조정된 EBITDA는 2,400만 달러로 수익의 21%를 차지합니다.

Decipher Prostate 테스트의 수량은 거의 19,900개로 급증하였고, 이는 업데이트된 NCCN 지침 덕분입니다. Afirma 테스트 수량은 약 15,700개로, 새로운 Medicare 커버리지로 인해 강화되었습니다.

전체 총 매출률은 68%로 개선되었고, 비GAAP 총 매출률은 71%에 달했습니다. 제품 수익이 3% 감소하고 생물 제약 수익이 22% 감소했음에도 불구하고, 운영 현금 생성은 2,670만 달러로 강력했고, 분기 말에는 2억 3,590만 달러의 현금 및 현금성 자산을 보유하고 있었습니다.

회사는 2024년 재무 전망을 업데이트하여 연간 수익 목표를 4억 3,200만에서 4억 3,800만 달러로 상향 조정하였고, 연말에는 2억 6,000만에서 2억 7,000만 달러의 현금 잔고를 예상하고 있습니다.

Veracyte a annoncé une augmentation de 27 % de son chiffre d'affaires total pour le deuxième trimestre 2024, atteignant 114,4 millions de dollars, soutenue par la solide performance des tests Decipher et Afirma.

Les revenus des tests ont augmenté de 31 %, tandis que le volume des tests a augmenté de 23 %, atteignant 39 023. Le bénéfice net a atteint 5,7 millions de dollars, en hausse de 168 %, et l'EBITDA ajusté s'élevait à 24,0 millions de dollars, représentant 21 % des revenus.

Les volumes des tests Decipher Prostate ont bondi à près de 19 900, soutenus par les nouvelles directives NCCN. Le volume des tests Afirma était d'environ 15 700, renforcé par une nouvelle couverture Medicare.

La marge brute totale s'est améliorée à 68 %, et la marge brute non-GAAP à 71 %. Malgré une baisse de 3 % des revenus des produits et une baisse de 22 % des revenus biopharmaceutiques, la génération de trésorerie opérationnelle a été forte, atteignant 26,7 millions de dollars, et l'entreprise a terminé le trimestre avec 235,9 millions de dollars en espèces et équivalents.

L'entreprise a mis à jour ses prévisions financières pour 2024, augmentant la prévision des revenus annuels à 432-438 millions de dollars, et s'attendant à des réserves de trésorerie en fin d'année de 260-270 millions de dollars.

Veracyte meldete einen Anstieg des Gesamtumsatzes um 27 % für das zweite Quartal 2024, der 114,4 Millionen Dollar erreichte und durch die starke Leistung der Decipher- und Afirma-Tests angetrieben wurde.

Der Umsatz aus Tests wuchs um 31 %, während das Testvolumen um 23 % auf 39.023 anstieg. Der Nettogewinn stieg auf 5,7 Millionen Dollar, ein Plus von 168 %, und das bereinigte EBITDA betrug 24,0 Millionen Dollar, was 21 % des Umsatzes entspricht.

Die Testvolumina des Decipher Prostate-Tests stiegen auf fast 19.900, unterstützt durch aktualisierte NCCN-Richtlinien. Das Testvolumen von Afirma lag bei etwa 15.700, gestärkt durch eine neue Medicare-Abdeckung.

Die gesamte Bruttomarge verbesserte sich auf 68 %, während die nicht-GAAP Bruttomarge bei 71 % lag. Trotz eines Rückgangs der Produktumsätze um 3 % und eines Rückgangs der Biopharmazeutika-Umsätze um 22 % war die operative Cash-Generierung mit 26,7 Millionen Dollar stark und das Unternehmen beendete das Quartal mit 235,9 Millionen Dollar in Bar und Äquivalenten.

Das Unternehmen hat seinen finanziellen Ausblick für 2024 aktualisiert und die Jahresprognose für die Einnahmen auf 432 bis 438 Millionen Dollar angehoben und erwartet zum Jahresende Bargeldreserven von 260 bis 270 Millionen Dollar.

Positive
  • Total revenue increased by 27% to $114.4 million.
  • Testing revenue grew by 31% to $107.0 million.
  • Net income increased by 168% to $5.7 million.
  • Adjusted EBITDA improved by 118% to $24.0 million.
  • Record Decipher Prostate test volume close to 19,900 tests.
  • Afirma test volume reached approximately 15,700 tests.
  • Gross margin increased to 68%, and non-GAAP gross margin to 71%.
  • Operational cash generation of $26.7 million, ending the quarter with $235.9 million in cash and equivalents.
  • Raised full-year 2024 revenue guidance to $432-$438 million.
Negative
  • Product revenue decreased by 3% to $3.9 million.
  • Biopharmaceutical and other revenue declined by 22% to $3.6 million.

Insights

Veracyte's Q2 2024 results demonstrate strong financial performance and market penetration. Total revenue grew 27% to $114.4 million, primarily driven by a 31% increase in testing revenue. The company's flagship tests, Decipher Prostate and Afirma, showed robust growth, indicating market share gains. Notably, Decipher Prostate achieved record volume following updated NCCN guidelines, while Afirma benefited from expanded Medicare coverage.

Profitability metrics improved significantly, with net income reaching $5.7 million and adjusted EBITDA at $24.0 million (21% of revenue). The company's strong cash position ($235.9 million) and positive cash flow ($26.7 million generated in Q2) provide financial flexibility for future growth initiatives. The raised full-year guidance suggests continued momentum, projecting 20-21% total revenue growth for 2024.

Veracyte's Q2 results reflect strong market dynamics in precision medicine diagnostics. The record volumes for Decipher Prostate (19,900 tests) and Afirma (15,700 tests) indicate growing physician adoption and expanding market opportunities. The updated NCCN guidelines favoring Decipher Prostate and expanded Medicare coverage for Afirma are significant catalysts for future growth.

The company's focus on evidence expansion, demonstrated by three published Decipher Prostate studies, enhances its competitive position. The real-world analysis linking Decipher data to the SEER database underscores the test's clinical utility and the strength of Veracyte's diagnostic platform. This commitment to clinical validation could drive further market penetration and potentially open new revenue streams in the biopharmaceutical sector, despite the 22% decrease in biopharma revenue this quarter.

Veracyte's Q2 results highlight the growing importance of precision diagnostics in oncology and endocrinology. The strong performance of Decipher Prostate, particularly following its highest-level rating among gene expression tests in NCCN guidelines, demonstrates the increasing reliance on molecular diagnostics for treatment decisions in prostate cancer. This trend is likely to continue as more oncologists recognize the value of personalized risk stratification.

The expanded Medicare coverage for Afirma in Bethesda V thyroid nodules is a significant development, potentially improving patient care by reducing unnecessary surgeries. The company's focus on evidence generation, including real-world studies linking diagnostic data to clinical outcomes, is important for long-term success in the competitive diagnostics market. This approach not only validates existing tests but also paves the way for future test development and market expansion.

Grew total revenue to $114.4 million, an increase of 27%

Grew testing revenue by 31%

Conference call and webcast today at 4:30 p.m. ET

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2024.

“Our exceptional second quarter results are a testament to the strength and robustness of Decipher and Afirma,” said Marc Stapley, Veracyte’s chief executive officer. “With both tests clearly gaining share in their respective markets and plenty of headroom for durable future expansion, our confidence in their long-term prospects continues to grow. Meanwhile, our positive cash generation and class-leading profitability profile are fueling a portfolio of tests that are poised to drive meaningful advances in precision medicine.”

Key Business Highlights

  • Increased second quarter total revenue by 27%, to $114.4 million, compared to the second quarter of 2023.
  • Grew total test volume to 39,023, an increase of 23% compared to the second quarter of 2023.
  • Increased second quarter net income to $5.7 million and delivered adjusted EBITDA of $24.0 million, or 21% of revenue.
  • Achieved record Decipher Prostate test volume of close to 19,900 tests, driven by recently updated NCCN* prostate cancer guidelines, in which the Decipher Prostate test received the highest-level rating among gene expression tests.
  • Delivered record Afirma test volume of approximately 15,700 and received Medicare coverage for Afirma testing of patients with thyroid nodules classified as “Bethesda V,” giving more patients annually access to the test.
  • Reinforced Veracyte’s commitment to evidence expansion with three published Decipher Prostate test studies, including a real-world, population-based analysis of Decipher data linked to the National Cancer Institute’s SEER database demonstrating the test’s clinical utility and underscoring the power of the Veracyte Diagnostics Platform.
  • Generated $26.7 million of cash during the second quarter to end the quarter with $235.9 million of cash and cash equivalents.

* National Comprehensive Cancer Network. NCCN makes no warranties of any kind whatsoever regarding their content, use or application and disclaims any responsibility for their application or use in any way.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."

Second Quarter 2024 Financial Results

Total revenue for the second quarter of 2024 was $114.4 million, an increase of 27% compared to $90.3 million reported in the second quarter of 2023. Testing revenue was $107.0 million, an increase of 31% compared to $81.7 million in the second quarter of 2023, driven by the strong performance of our Decipher Prostate and Afirma tests. Product revenue was $3.9 million, a decrease of 3% compared to $4.0 million in the second quarter of 2023. Biopharmaceutical and other revenue was $3.6 million, a decrease of 22% compared to $4.6 million in the second quarter of 2023.

Total gross margin for the second quarter of 2024 was 68%, compared to 62% in the second quarter of 2023. Non-GAAP gross margin, which excludes the amortization of acquired intangible assets, stock-based compensation, other acquisition related expenses, and certain other adjustments was 71%, compared to 68% in the second quarter of 2023.

Operating expenses were $73.3 million for the second quarter of 2024. Non-GAAP operating expenses, which excludes amortization of acquired intangible assets, stock-based compensation, other acquisition related expenses, and other restructuring costs, grew 14% to $59.0 million compared to $51.7 million in the second quarter of 2023.

Net income for the second quarter of 2024 was $5.7 million, an improvement of 168% compared to the second quarter of 2023. Basic and diluted net earnings per common share was $0.07, an improvement of $0.19 compared to the second quarter of 2023. Non-GAAP diluted net earnings per common share was $0.30, an improvement of $0.18 compared to the second quarter of 2023. Net cash provided by operating activities in the first six months of 2024 was $20.6 million, an improvement of $6.1 million compared to the same period in 2023.

Adjusted EBITDA for the second quarter of 2024 was $24.0 million, an improvement of 118% compared to the second quarter of 2023, representing 21% of revenue compared to 12% of revenue respectively.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."

2024 Financial Outlook

The company is raising full-year 2024 total revenue guidance to $432 million to $438 million, representing year-over-year growth of 20% to 21% and testing revenue growth of approximately 25%. This guidance range represents an increase compared to prior guidance of $402 million to $410 million. In addition, the company now expects cash, cash equivalents and short-term investments at the end of the year to be $260 million to $270 million compared to prior guidance of $236 million to $240 million.

Conference Call and Webcast Details

Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: https://edge.media-server.com/mmc/p/p5tuszv4. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at https://investor.veracyte.com/events-presentations.

The conference call dial-in can be accessed by registering at the following link: https://register.vevent.com/register/BIbb7f6b70b4ce4820b6391059390d6139

About Veracyte

Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit www.veracyte.com or follow us on LinkedIn or X (Twitter).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with respect to 2024 financial and operating results; and our intentions with respect to our tests and products, for use in diagnosing and treating diseases, in and outside of the United States. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “will,” “enable,” “positioned,” “offers,” “designed” and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies and our facilities in France; the impact of foreign currency fluctuations, increasing interest rates, inflation, the U.S. election and turmoil in the global banking and finance system; the ongoing conflict in the Middle East and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption “Risk Factors” in our Annual Report on Form 10-K filed on February 29, 2024, and our Quarterly Report on Form 10-Q filed for the three months ended June 30, 2024, to be filed August 7, 2024, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise.

Veracyte, the Veracyte logo, Decipher, C2i Genomics, and Afirma are registered trademarks of Veracyte, Inc., and its subsidiaries in the U.S. and selected countries.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non‐GAAP results including non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA and non-GAAP earnings per share (EPS). These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We use non-GAAP financial measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP financial measures we present may be different from those used by other companies.

We exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from certain of our non-GAAP financial measures. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

Testing revenue

$

106,970

 

$

81,749

 

 

$

197,273

 

 

$

154,145

 

Product revenue

 

3,906

 

 

4,011

 

 

 

7,443

 

 

 

7,903

 

Biopharmaceutical and other revenue

 

3,552

 

 

4,562

 

 

 

6,556

 

 

 

10,696

 

Total revenue

 

114,428

 

 

90,322

 

 

 

211,272

 

 

 

172,744

 

 

 

 

 

 

 

 

 

Cost of revenue (1):

 

 

 

 

 

 

 

Cost of testing revenue

 

27,920

 

 

23,333

 

 

 

53,899

 

 

 

42,981

 

Cost of product revenue

 

1,874

 

 

2,315

 

 

 

4,518

 

 

 

4,477

 

Cost of biopharmaceutical and other revenue

 

3,812

 

 

4,040

 

 

 

6,650

 

 

 

8,459

 

Intangible asset amortization - cost of revenue

 

2,909

 

 

4,814

 

 

 

5,824

 

 

 

9,618

 

Total cost of revenue

 

36,515

 

 

34,502

 

 

 

70,891

 

 

 

65,535

 

Gross profit

 

77,913

 

 

55,820

 

 

 

140,381

 

 

 

107,209

 

Operating expenses (1):

 

 

 

 

 

 

 

Research and development

 

16,465

 

 

12,541

 

 

 

32,430

 

 

 

25,310

 

Selling and marketing

 

24,216

 

 

25,756

 

 

 

47,998

 

 

 

51,886

 

General and administrative

 

31,745

 

 

25,047

 

 

 

57,955

 

 

 

46,100

 

Impairment of long-lived assets

 

 

 

 

 

 

429

 

 

 

1,410

 

Intangible asset amortization - operating expenses

 

881

 

 

527

 

 

 

1,619

 

 

 

1,052

 

Total operating expenses

 

73,307

 

 

63,871

 

 

 

140,431

 

 

 

125,758

 

Income (loss) from operations

 

4,606

 

 

(8,051

)

 

 

(50

)

 

 

(18,549

)

Other income (loss), net

 

2,755

 

 

(226

)

 

 

5,503

 

 

 

2,181

 

Income (loss) before income taxes

 

7,361

 

 

(8,277

)

 

 

5,453

 

 

 

(16,368

)

Income tax provision

 

1,627

 

 

125

 

 

 

1,583

 

 

 

125

 

Net Income (loss)

$

5,734

 

$

(8,402

)

 

$

3,870

 

 

$

(16,493

)

Earnings (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.07

 

$

(0.12

)

 

$

0.05

 

 

$

(0.23

)

Diluted

$

0.07

 

$

(0.12

)

 

$

0.05

 

 

$

(0.23

)

Shares used to compute earnings (loss) per common share:

 

 

 

 

 

 

 

Basic

 

76,538,325

 

 

72,478,662

 

 

 

75,649,057

 

 

 

72,327,897

 

Diluted

 

77,163,149

 

 

72,478,662

 

 

 

76,600,079

 

 

 

72,327,897

 

  1. Cost of revenue, research and development, sales and marketing and general and administrative expenses include the following stock-based compensation related expenses:

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Cost of revenue

$

604

 

$

497

 

$

1,091

 

$

884

Research and development

 

1,895

 

 

1,439

 

 

3,658

 

 

2,696

Selling and marketing

 

2,142

 

 

2,494

 

 

3,235

 

 

4,606

General and administrative

 

5,213

 

 

6,019

 

 

9,889

 

 

10,364

Total stock-based compensation expense

$

9,854

 

$

10,449

 

$

17,873

 

$

18,550

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Net income (loss)

$

5,734

 

 

$

(8,402

)

 

$

3,870

 

 

$

(16,493

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in currency translation adjustments

 

(1,703

)

 

 

(917

)

 

 

(6,592

)

 

 

3,563

 

Net comprehensive income (loss)

$

4,031

 

 

$

(9,319

)

 

$

(2,722

)

 

$

(12,930

VERACYTE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

June 30,

 

December 31,

 

2024

 

2023

 

(Unaudited)

 

(See Note 1)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

235,915

 

$

216,454

Accounts receivable

 

50,304

 

 

40,378

Supplies and inventory

 

19,258

 

 

16,128

Prepaid expenses and other current assets

 

15,629

 

 

12,661

Total current assets

 

321,106

 

 

285,621

Property, plant and equipment, net

 

22,291

 

 

20,584

Right-of-use assets, operating leases

 

18,116

 

 

10,277

Intangible assets, net

 

112,532

 

 

88,593

Goodwill

 

752,107

 

 

702,984

Restricted cash

 

1,088

 

 

876

Other assets

 

7,087

 

 

5,971

Total assets

$

1,234,327

 

$

1,114,906

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

12,084

 

$

12,943

Accrued liabilities

 

43,455

 

 

38,427

Current portion of deferred revenue

 

2,195

 

 

2,008

Current portion of acquisition-related contingent consideration

 

7,348

 

 

2,657

Current portion of operating lease liabilities

 

7,185

 

 

5,105

Current portion of other liabilities

 

72

 

 

101

Total current liabilities

 

72,339

 

 

61,241

Deferred tax liabilities

 

1,483

 

 

734

Acquisition-related contingent consideration, net of current portion

 

13,889

 

 

518

Operating lease liabilities, net of current portion

 

13,553

 

 

7,525

Other liabilities

 

540

 

 

786

Total liabilities

 

101,804

 

 

70,804

Total stockholders’ equity

 

1,132,523

 

 

1,044,102

Total liabilities and stockholders’ equity

$

1,234,327

 

$

1,114,906

  1. The condensed consolidated balance sheet at December 31, 2023 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated February 29, 2024.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

Six Months Ended June 30,

 

2024

 

2023

Operating activities

 

 

 

Net income (loss)

$

3,870

 

 

$

(16,493

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

11,328

 

 

 

13,529

 

Loss on disposal of property, plant and equipment

 

68

 

 

 

136

 

Stock-based compensation

 

17,873

 

 

 

18,366

 

Deferred income taxes

 

23

 

 

 

125

 

Noncash lease expense

 

2,287

 

 

 

1,977

 

Revaluation of acquisition-related contingent consideration

 

863

 

 

 

(344

)

Effect of foreign currency on operations

 

896

 

 

 

(167

)

Impairment loss

 

429

 

 

 

1,410

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(10,086

)

 

 

1,789

 

Supplies and inventory

 

(3,266

)

 

 

2,782

 

Prepaid expenses and other current assets

 

(2,183

)

 

 

(2,530

)

Other assets

 

(1,213

)

 

 

(1,048

)

Operating lease liabilities

 

(2,446

)

 

 

(2,091

)

Accounts payable

 

(1,706

)

 

 

792

 

Accrued liabilities and deferred revenue

 

3,872

 

 

 

(3,734

)

Net cash provided by operating activities

 

20,609

 

 

 

14,499

 

Investing activities

 

 

 

Acquisition of C2i, net of cash acquired

 

5,012

 

 

 

 

Purchase of short-term investments

 

 

 

 

(19,700

)

Proceeds from sale of short-term investments

 

 

 

 

39,773

 

Proceeds from maturity of short-term investments

 

 

 

 

5,000

 

Purchases of property, plant and equipment

 

(4,904

)

 

 

(4,662

)

Net cash provided by investing activities

 

108

 

 

 

20,411

 

Financing activities

 

 

 

Payment of taxes on vested restricted stock units

 

(5,135

)

 

 

(3,168

)

Proceeds from the exercise of common stock options and employee stock purchases

 

4,260

 

 

 

5,250

 

Net cash (used in) provided by financing activities

 

(875

)

 

 

2,082

 

Increase in cash, cash equivalents and restricted cash

 

19,842

 

 

 

36,992

 

Effect of foreign currency on cash, cash equivalents and restricted cash

 

(169

)

 

 

43

 

Net increase in cash, cash equivalents and restricted cash

 

19,673

 

 

 

37,035

 

Cash, cash equivalents and restricted cash at beginning of period

 

217,330

 

 

 

154,996

 

Cash, cash equivalents and restricted cash at end of period

$

237,003

 

 

$

192,031

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(Unaudited)

(In thousands)

 

 

 

 

 

June 30,

 

December 31,

 

2024

 

2023

Cash and cash equivalents

$

235,915

 

$

216,454

Restricted cash

 

1,088

 

 

876

Total cash, cash equivalents and restricted cash

$

237,003

 

$

217,330

VERACYTE, INC.

RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Reconciliation of Non-GAAP Gross Margin:

 

 

 

 

 

 

 

GAAP Gross Profit

$

77,913

 

 

$

55,820

 

 

$

140,381

 

 

$

107,209

 

GAAP Gross Margin

 

68

%

 

 

62

%

 

 

66

%

 

 

62

%

Amortization of intangible assets

 

2,909

 

 

 

4,814

 

 

 

5,824

 

 

 

9,618

 

Stock-based compensation expense

 

604

 

 

 

497

 

 

 

1,091

 

 

 

884

 

Acquisition related expenses (1)

 

 

 

 

 

 

 

60

 

 

 

74

 

Other adjustments (2)

 

 

 

 

 

 

 

6

 

 

 

 

Non-GAAP Gross Profit

$

81,426

 

 

$

61,131

 

 

$

147,362

 

 

$

117,785

 

Non-GAAP Gross Margin

 

71

%

 

 

68

%

 

 

70

%

 

 

68

%

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Operating Expenses:

 

 

 

 

 

 

 

GAAP research and development

$

16,465

 

 

$

12,541

 

 

$

32,430

 

 

$

25,310

 

Stock-based compensation expense

 

(1,895

)

 

 

(1,439

)

 

 

(3,658

)

 

 

(2,696

)

Acquisition related expenses (1)

 

23

 

 

 

 

 

 

(397

)

 

 

 

Other adjustments (2)

 

2

 

 

 

 

 

 

(276

)

 

 

 

Non-GAAP research and development

$

14,595

 

 

$

11,102

 

 

$

28,099

 

 

$

22,614

 

 

 

 

 

 

 

 

 

GAAP sales and marketing

$

24,216

 

 

$

25,756

 

 

$

47,998

 

 

$

51,886

 

Stock-based compensation expense

 

(2,142

)

 

 

(2,494

)

 

 

(3,235

)

 

 

(4,606

)

Acquisition related expenses (1)

 

 

 

 

(567

)

 

 

(124

)

 

 

(1,158

)

Other adjustments (2)

 

(194

)

 

 

 

 

 

(1,094

)

 

 

 

Non-GAAP sales and marketing

$

21,880

 

 

$

22,695

 

 

$

43,545

 

 

$

46,122

 

 

 

 

 

 

 

 

 

GAAP general and administrative

$

31,745

 

 

$

25,047

 

 

$

57,955

 

 

$

46,100

 

Stock-based compensation expense

 

(5,213

)

 

 

(6,019

)

 

 

(9,889

)

 

 

(10,364

)

Acquisition related expenses (1)

 

(1,116

)

 

 

(1,134

)

 

 

(4,585

)

 

 

(1,624

)

Other adjustments (2)

 

(2,854

)

 

 

 

 

 

(3,120

)

 

 

66

 

Non-GAAP general and administrative

$

22,562

 

 

$

17,894

 

 

$

40,361

 

 

$

34,178

 

 

 

 

 

 

 

 

 

GAAP total operating expenses

$

73,307

 

 

$

63,871

 

 

$

140,431

 

 

$

125,758

 

Amortization of intangible assets

 

(881

)

 

 

(527

)

 

 

(1,619

)

 

 

(1,052

)

Stock-based compensation expense

 

(9,250

)

 

 

(9,952

)

 

 

(16,782

)

 

 

(17,666

)

Acquisition related expenses (1)

 

(1,093

)

 

 

(1,701

)

 

 

(5,536

)

 

 

(2,782

)

Other adjustments (2)

 

(3,046

)

 

 

 

 

 

(4,490

)

 

 

(1,344

)

Non-GAAP total operating expenses

$

59,037

 

 

$

51,691

 

 

$

112,004

 

 

$

102,914

 

  1. Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2024, adjustments consist primarily of transaction related expenses associated with the acquisition of C2i Genomics ($1.0 million) and adjustments relating to the remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy ($0.1 million). For the three months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.
  2. For the three months ended June 30, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment ($2.9 million) and expense related to restructuring costs associated with portfolio prioritization including the reduction in Envisia commercial support ($0.2 million). For the six months ended June 30, 2024, adjustments include additional restructuring costs associated with the portfolio prioritization including the reduction in Envisia commercial support ($1.4 million). For the six months ended June 30, 2023, includes $1.3 million related to impairment charges.

VERACYTE, INC.

RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Reconciliation of Adjusted EBITDA:

 

 

 

 

 

 

 

GAAP Net Income (Loss)

$

5,734

 

 

$

(8,402

)

 

$

3,870

 

 

$

(16,493

)

Amortization of intangible assets

 

3,790

 

 

 

5,341

 

 

 

7,443

 

 

 

10,670

 

Depreciation expense

 

1,948

 

 

 

1,518

 

 

 

3,885

 

 

 

2,859

 

Stock-based compensation expense

 

9,854

 

 

 

10,449

 

 

 

17,873

 

 

 

18,550

 

Acquisition related expenses (1)

 

1,093

 

 

 

1,701

 

 

 

5,596

 

 

 

2,856

 

Other expense (income), net (2)

 

(3,052

)

 

 

287

 

 

 

(6,313

)

 

 

(1,902

)

Other adjustments (3)

 

3,046

 

 

 

 

 

 

4,496

 

 

 

1,344

 

Income tax expense (benefit)

 

1,627

 

 

 

125

 

 

 

1,583

 

 

 

125

 

Adjusted EBITDA

$

24,040

 

 

$

11,019

 

 

$

38,433

 

 

$

18,009

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Net Income (Loss)

 

 

 

 

 

 

 

GAAP Net Income (Loss)

$

5,734

 

 

$

(8,402

)

 

$

3,870

 

 

$

(16,493

)

Amortization of intangible assets

 

3,790

 

 

 

5,341

 

 

 

7,443

 

 

 

10,670

 

Stock-based compensation expense

 

9,854

 

 

 

10,449

 

 

 

17,873

 

 

 

18,550

 

Acquisition related expenses (1)

 

1,093

 

 

 

1,701

 

 

 

5,596

 

 

 

2,856

 

Other adjustments (3)

 

3,046

 

 

 

 

 

 

4,496

 

 

 

1,344

 

Tax adjustments (4)

 

(114

)

 

 

(551

)

 

 

(1,246

)

 

 

(1,127

)

Non-GAAP Net Income

$

23,403

 

 

$

8,538

 

 

$

38,032

 

 

$

15,800

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Earnings per Share

 

 

 

 

 

 

 

Diluted earnings per share, GAAP

$

0.07

 

 

$

(0.12

)

 

$

0.05

 

 

$

(0.23

)

Amortization of intangible assets

 

0.05

 

 

 

0.07

 

 

 

0.10

 

 

 

0.15

 

Stock-based compensation expense

 

0.13

 

 

 

0.14

 

 

 

0.23

 

 

 

0.26

 

Acquisition related expenses (1)

 

0.01

 

 

 

0.02

 

 

 

0.07

 

 

 

0.04

 

Other adjustments (3)

 

0.04

 

 

 

 

 

 

0.06

 

 

 

0.02

 

Tax adjustments (4)

 

 

 

 

(0.01

)

 

 

(0.02

)

 

 

(0.02

)

Rounding and impact of dilutive shares

 

 

 

 

0.02

 

 

 

0.01

 

 

 

(0.01

)

Diluted earnings per share, non-GAAP

$

0.30

 

 

$

0.12

 

 

$

0.50

 

 

$

0.21

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding used in computing diluted earnings per share

 

 

 

 

 

 

 

Diluted, GAAP

 

77,163,149

 

 

 

72,478,662

 

 

 

76,600,079

 

 

 

72,327,897

 

Dilutive effect of equity awards (5)

 

 

 

 

1,221,721

 

 

 

 

 

 

1,354,135

 

Diluted, non-GAAP

 

77,163,149

 

 

 

73,700,383

 

 

 

76,600,079

 

 

 

73,682,032

 

  1. Includes transaction-related expenses as well as post-combination compensation expenses. For the three months ended June 30, 2024, adjustments consist primarily of transaction related expenses associated with the acquisition of C2i Genomics ($1.0 million) and adjustments relating to the remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy ($0.1 million). For the three months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.
  2. Includes interest income and income related to research tax credits.
  3. For the three months ended June 30, 2024, adjustments primarily include expense related to restructuring costs associated with a reduction in our Biopharmaceutical and Other segment ($2.9 million) and expense related to restructuring costs associated with portfolio prioritization including the reduction in Envisia commercial support ($0.2 million). For the six months ended June 30, 2024, adjustments include additional restructuring costs associated with the portfolio prioritization including the reduction in Envisia commercial support ($1.4 million). For the six months ended June 30, 2023, includes $1.3 million related to impairment charges.
  4. Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed.
  5. In those periods in which GAAP net (loss) income is negative and Non-GAAP net (loss) income is positive, Non-GAAP diluted weighted average shares outstanding includes potentially dilutive common shares from equity awards as determined using the treasury stock method.

 

Investors:

Shayla Gorman

investors@veracyte.com

619-393-1545

Media:

Tracy Morris

media@veracyte.com

650-380-4413

Source: Veracyte, Inc.

FAQ

What was Veracyte's total revenue for Q2 2024?

Veracyte's total revenue for Q2 2024 was $114.4 million, an increase of 27% compared to Q2 2023.

How much did Veracyte's testing revenue grow in Q2 2024?

Veracyte's testing revenue grew by 31% in Q2 2024, reaching $107.0 million.

What was Veracyte's net income for Q2 2024?

Veracyte's net income for Q2 2024 was $5.7 million, an increase of 168% compared to Q2 2023.

What was Veracyte's adjusted EBITDA for Q2 2024?

Veracyte's adjusted EBITDA for Q2 2024 was $24.0 million, an improvement of 118% compared to Q2 2023.

What is Veracyte's updated revenue guidance for 2024?

Veracyte has updated its 2024 revenue guidance to $432-$438 million, representing year-over-year growth of 20% to 21%.

Veracyte, Inc.

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Diagnostics & Research
Services-medical Laboratories
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United States of America
SOUTH SAN FRANCISCO