Veracyte Announces Second Quarter 2023 Financial Results

Grew Total Revenue to $90.3 million, an Increase of 24%

Conference Call and Webcast Today at 4:30 p.m. ET

SOUTH SAN FRANCISCO, Calif.--()--Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2023.

“We delivered outstanding second quarter results, with revenue and test volume that exceeded our expectations. We also generated a record $17 million in cash from operations this quarter, driven by our exceptional top-line performance and strong cash collections,” said Marc Stapley, Veracyte’s chief executive officer. “The compelling clinical data we shared this quarter demonstrates our focus on producing further evidence that our tests are helping to better guide patient care at pivotal moments in the race to diagnose and treat cancer.”

Key Business Highlights

  • Increased second quarter total revenue by 24% to $90.3 million, compared to the second quarter of 2022.
  • Grew total test volume to 31,809, an increase of 28% compared to the second quarter of 2022.
  • Presented 12 abstracts for our diagnostic tests and biopharmaceutical offerings at major medical conferences. Study findings demonstrate our tests’ positive real-world impact on patient care, and also advance the scientific understanding of a number of diseases that we and our biopharmaceutical customers address.
  • Published real-world Decipher Prostate Genomic Classifier findings in JNCI Cancer Spectrum from a population-based study of the National Cancer Institute’s SEER program database. The findings reinforce the ability of our Decipher Prostate Genomic Classifier to help guide personalized treatment approaches for men with prostate cancer.
  • Generated approximately $17 million of cash from operating activities, ending the second quarter with cash, cash equivalents and short-term investments of $191 million, compared to $178 million at the end of the first quarter.

Second Quarter 2023 Financial Results

Total revenue for the second quarter of 2023 was $90.3 million, an increase of 24% compared to $72.9 million reported in the second quarter of 2022. Testing revenue was $81.7 million, an increase of 37% compared to $59.7 million in the second quarter of 2022 driven primarily by the strong performance of our Decipher Prostate and Afirma tests. Product revenue was $4.0 million, an increase of 29% compared to $3.1 million in the second quarter of 2022. Biopharmaceutical and other revenue was $4.6 million, a decrease of 55% compared to $10.0 million in the second quarter of 2022.

Total gross margin for the second quarter of 2023, including the amortization of acquired intangible assets, was 62%, compared to 59% in the second quarter of 2022. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 67%, compared to 66% in the second quarter of 2022.

Operating expenses, excluding cost of revenue, were $63.9 million, an increase of 19% compared to the second quarter of 2022. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets, other acquisition related expenses and other restructuring costs, were $59.3 million compared to $49.0 million in the second quarter of 2022.

Net loss for the second quarter of 2023 was $8.4 million, an improvement of 12% compared to the second quarter of 2022. Basic and diluted net loss per common share was $0.12, an improvement of 8% compared to the second quarter of 2022. Net cash provided by operating activities in the first six months of 2023 was $14.5 million, an improvement of $23.7 million compared to the same period in 2022.

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."

2023 Financial Outlook

The company is raising full-year 2023 total revenue guidance to $342 million to $350 million, representing year-over-year growth of 15% to 18%, and an improvement compared to prior guidance of $330 million to $340 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/iwy5xkbf. 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/BI62f03c15042b4d5dadeed4e37ed31fd8

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 high-performing tests enable clinicians to make more confident diagnostic, prognostic and treatment decisions for some of the most challenging diseases such as thyroid, prostate, breast, bladder and lung cancers, as well as interstitial lung diseases. We help patients avoid unnecessary procedures and speed time to diagnosis and appropriate treatment. In addition to making our tests available in the U.S. through our central laboratories, we also aim to deliver our tests to patients worldwide through a distributed model to laboratories that can perform them locally. For more information, please visit www.veracyte.com and follow the company on Twitter (@veracyte).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, our statements related to our expected total revenue and other financial and operating results for 2023 and our plans, objectives, expectations (financial and otherwise) or intentions with respect to our tests and products, including our biopharma atlas, for use in diagnosing and treating diseases, and our commercial organization. Forward-looking statements can be identified by words such as: “appears,” "anticipate," "intend," "plan," "expect," "believe," "should," "may," "will," “positioned,” “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; to demonstrate the validity and utility of our genomic tests and biopharma offerings; to continue to integrate and expand the HalioDx and Decipher businesses and execute on our business plans; to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine on European economies and energy supply, as well as our facilities in France; the impact of the COVID-19 pandemic and its variants on our business and general economic conditions; the impact of foreign currency fluctuations, increasing interest rates, inflation, and turmoil in the global banking and finance system; 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 March 1, 2023, and our Quarterly Report on Form 10-Q for the three months ended June 30, 2023 to be filed 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, Afirma, Percepta, Envisia, Prosigna, Lymphmark, TMExplore, Brightplex, Immunosign, “Know by Design” and “More about You” are registered trademarks of Veracyte, Inc. and its subsidiaries in the U.S. and selected countries. Immunoscore IC® is a trademark of Veracyte SAS registered in France. Immunoscore is a registered trademark of Inserm used by Veracyte under license. nCounter is the registered trademark of NanoString Technologies used by Veracyte under license.

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, and non-GAAP loss from operations. These 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 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 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 and HalioDx and certain costs related to restructuring from certain of our non-GAAP measures. Management has excluded the effects of these items in non-GAAP 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.

Reconciliations between our GAAP results and non‐GAAP financial measures are presented in the tables of this release.

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,

 

2023

 

2022

 

2023

 

2022

Revenues:

 

 

 

 

 

 

 

Testing revenue

$

81,749

 

 

$

59,718

 

 

$

154,145

 

 

$

115,698

 

Product revenue

 

4,011

 

 

 

3,108

 

 

 

7,903

 

 

 

6,087

 

Biopharmaceutical and other revenue

 

4,562

 

 

 

10,038

 

 

 

10,696

 

 

 

18,862

 

Total revenue

 

90,322

 

 

 

72,864

 

 

 

172,744

 

 

 

140,647

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

Cost of testing revenue

 

23,333

 

 

 

18,584

 

 

 

42,981

 

 

 

36,107

 

Cost of product revenue

 

2,315

 

 

 

1,646

 

 

 

4,477

 

 

 

3,221

 

Cost of biopharmaceutical and other revenue

 

4,040

 

 

 

4,800

 

 

 

8,459

 

 

 

9,415

 

Research and development

 

12,541

 

 

 

9,377

 

 

 

25,310

 

 

 

18,543

 

Selling and marketing

 

25,756

 

 

 

24,001

 

 

 

51,886

 

 

 

47,755

 

General and administrative

 

25,047

 

 

 

19,798

 

 

 

47,510

 

 

 

40,710

 

Intangible asset amortization

 

5,341

 

 

 

5,391

 

 

 

10,670

 

 

 

10,877

 

Total operating expenses

 

98,373

 

 

 

83,597

 

 

 

191,293

 

 

 

166,628

 

Loss from operations

 

(8,051

)

 

 

(10,733

)

 

 

(18,549

)

 

 

(25,981

)

Other income (loss), net

 

(226

)

 

 

1,086

 

 

 

2,181

 

 

 

1,870

 

Loss before income taxes

 

(8,277

)

 

 

(9,647

)

 

 

(16,368

)

 

 

(24,111

)

Income tax expense (benefit)

 

125

 

 

 

(115

)

 

 

125

 

 

 

(118

)

Net loss

$

(8,402

)

 

$

(9,532

)

 

$

(16,493

)

 

$

(23,993

)

Net loss per common share, basic and diluted

$

(0.12

)

 

$

(0.13

)

 

$

(0.23

)

 

$

(0.34

)

Shares used to compute net loss per common share, basic and diluted

 

72,478,662

 

 

 

71,476,966

 

 

 

72,327,897

 

 

 

71,354,002

 

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,

 

2023

 

2022

 

2023

 

2022

Cost of revenue

$

497

 

$

386

 

$

884

 

$

657

Research and development

 

1,439

 

 

 

1,452

 

 

 

2,696

 

 

 

3,108

 

Selling and marketing

 

2,494

 

 

 

1,660

 

 

 

4,606

 

 

 

2,705

 

General and administrative

 

6,019

 

 

 

2,627

 

 

 

10,364

 

 

 

6,510

 

Total stock-based compensation expense

$

10,449

 

 

$

6,125

 

 

$

18,550

 

 

$

12,980

 

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2023

 

2022

 

2023

 

2022

Net loss

$

(8,402

)

 

$

(9,532

)

 

$

(16,493

)

 

$

(23,993

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in currency translation adjustments

 

(917

)

 

 

(17,369

)

 

 

3,563

 

 

 

(22,967

)

 

 

 

 

 

 

 

 

Net comprehensive loss

$

(9,319

)

 

$

(26,901

)

 

$

(12,930

)

 

$

(46,960

)

VERACYTE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

June 30,
2023

 

December 31,
2022

 

(Unaudited)

 

(See Note 1)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

191,142

 

$

154,247

Short-term investments

 

 

 

 

24,605

 

Accounts receivable

 

42,365

 

 

 

44,021

 

Supplies and inventory

 

11,572

 

 

 

14,294

 

Prepaid expenses and other current assets

 

14,401

 

 

 

11,469

 

Total current assets

 

259,480

 

 

 

248,636

 

Property, plant and equipment, net

 

18,510

 

 

 

17,702

 

Right-of-use assets, operating leases

 

12,455

 

 

 

13,160

 

Intangible assets, net

 

164,744

 

 

 

174,866

 

Goodwill

 

698,920

 

 

 

695,891

 

Restricted cash

 

889

 

 

 

749

 

Other assets

 

6,116

 

 

 

5,418

 

Total assets

$

1,161,114

 

 

$

1,156,422

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

12,895

 

 

$

11,911

 

Accrued liabilities

 

34,427

 

 

 

37,774

 

Current portion of deferred revenue

 

2,378

 

 

 

2,613

 

Current portion of acquisition-related contingent consideration

 

3,359

 

 

 

6,060

 

Current portion of operating lease liabilities

 

4,973

 

 

 

4,070

 

Current portion of other liabilities

 

119

 

 

 

186

 

Total current liabilities

 

58,151

 

 

 

62,614

 

Deferred tax liabilities

 

4,707

 

 

 

4,531

 

Acquisition-related contingent consideration, net of current portion

 

4,855

 

 

 

2,498

 

Operating lease liabilities, net of current portion

 

9,891

 

 

 

10,648

 

Other liabilities

 

792

 

 

 

931

 

Total liabilities

 

78,396

 

 

 

81,222

 

Total stockholders’ equity

 

1,082,718

 

 

 

1,075,200

 

Total liabilities and stockholders’ equity

$

1,161,114

 

 

$

1,156,422

 

1. The condensed consolidated balance sheet at December 31, 2022 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 March 1, 2023.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

Six Months Ended June 30,

 

2023

 

2022

Operating activities

 

 

 

Net loss

$

(16,493

)

 

$

(23,993

)

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

 

 

 

Depreciation and amortization

 

13,529

 

 

 

13,048

 

Loss on disposal of property, plant and equipment

 

136

 

 

 

 

Stock-based compensation

 

18,366

 

 

 

12,584

 

Deferred income taxes

 

125

 

 

 

(118

)

Interest on end-of-term debt obligation

 

 

 

 

107

 

Noncash lease expense

 

1,977

 

 

 

1,638

 

Revaluation of acquisition-related contingent consideration

 

(344

)

 

 

(48

)

Effect of foreign currency on operations

 

(167

)

 

 

716

 

Impairment loss

 

1,410

 

 

 

3,318

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

1,789

 

 

 

(2,936

)

Supplies and inventory

 

2,782

 

 

 

(3,654

)

Prepaid expenses and other current assets

 

(2,530

)

 

 

(1,830

)

Other assets

 

(1,048

)

 

 

284

 

Operating lease liabilities

 

(2,091

)

 

 

(1,680

)

Accounts payable

 

792

 

 

 

(1,373

)

Accrued liabilities and deferred revenue

 

(3,734

)

 

 

(5,298

)

Net cash provided by (used in) operating activities

 

14,499

 

 

 

(9,235

)

Investing activities

 

 

 

Purchase of short-term investments

 

(19,700

)

 

 

(8,972

)

Proceeds from sale of short-term investments

 

39,773

 

 

 

 

Proceeds from maturity of short-term investments

 

5,000

 

 

 

2,175

 

Purchases of property, plant and equipment

 

(4,662

)

 

 

(4,963

)

Net cash provided by (used in) investing activities

 

20,411

 

 

 

(11,760

)

Financing activities

 

 

 

Payment of long-term debt

 

 

 

 

(97

)

Payment of taxes on vested restricted stock units

 

(3,168

)

 

 

(1,865

)

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

 

5,250

 

 

 

3,877

 

Net cash provided by financing activities

 

2,082

 

 

 

1,915

 

Increase (decrease) in cash, cash equivalents and restricted cash

 

36,992

 

 

 

(19,080

)

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

 

43

 

 

 

(670

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

37,035

 

 

 

(19,750

)

Cash, cash equivalents and restricted cash at beginning of period

 

154,996

 

 

 

173,946

 

Cash, cash equivalents and restricted cash at end of period

$

192,031

 

 

$

154,196

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(Unaudited)

(In thousands)

 

 

 

 

 

June 30,
2023

 

December 31,
2022

Cash and cash equivalents

$

191,142

 

$

154,247

Restricted cash

 

889

 

 

 

749

 

Total cash, cash equivalents and restricted cash

$

192,031

 

 

$

154,996

 

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

 

 

 

 

(Unaudited)

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

Identified Expenses

 

 

 

GAAP

 

Acquisition
Related
Expenses (1)

 

Intangible
Assets
Amortization
Expense

 

Other
(4)

 

Total Non-GAAP
Measure

Three Months Ended June 30, 2023

Total revenue

$

90,322

 

 

$

 

 

$

 

 

$

 

 

$

90,322

 

Cost of testing revenue

 

23,333

 

 

 

 

 

 

 

 

 

 

 

 

23,333

 

Cost of product revenue

 

2,315

 

 

 

 

 

 

 

 

 

 

 

 

2,315

 

Cost of biopharmaceutical and other revenue

 

4,040

 

 

 

25

 

 

 

 

 

 

 

 

 

4,015

 

Intangible asset amortization (2)

 

4,814

 

 

 

 

 

 

4,814

 

 

 

 

 

 

 

Gross margin $

 

55,820

 

 

 

25

 

 

 

4,814

 

 

 

 

 

 

60,659

 

Gross margin %

 

62

%

 

 

 

 

 

 

 

 

67

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

12,541

 

 

 

17

 

 

 

 

 

 

 

 

 

12,524

 

Selling and marketing

 

25,756

 

 

 

889

 

 

 

 

 

 

 

 

 

24,867

 

General and administrative

 

25,047

 

 

 

1,720

 

 

 

 

 

 

1,437

 

 

 

21,890

 

Intangible asset amortization

 

527

 

 

 

 

 

 

527

 

 

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

63,871

 

 

 

2,626

 

 

 

527

 

 

 

1,437

 

 

 

59,281

 

Loss from operations

$

(8,051

)

 

$

2,651

 

 

$

5,341

 

 

$

1,437

 

 

$

1,378

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

Total revenue

$

72,864

 

 

$

 

 

$

 

 

$

 

 

$

72,864

 

Cost of testing revenue

 

18,584

 

 

 

51

 

 

 

 

 

 

 

 

 

18,533

 

Cost of product revenue

 

1,646

 

 

 

 

 

 

 

 

 

 

 

 

1,646

 

Cost of biopharmaceutical and other revenue

 

4,800

 

 

 

65

 

 

 

 

 

 

 

 

 

4,735

 

Intangible asset amortization (2)

 

4,869

 

 

 

 

 

 

4,869

 

 

 

 

 

 

 

Gross margin $

 

42,965

 

 

 

116

 

 

 

4,869

 

 

 

 

 

 

47,950

 

Gross margin %

 

59

%

 

 

 

 

 

 

 

 

66

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

9,377

 

 

 

293

 

 

 

 

 

 

 

 

 

9,084

 

Selling and marketing

 

24,001

 

 

 

858

 

 

 

 

 

 

 

 

 

23,143

 

General and administrative

 

19,798

 

 

 

(285

)

 

 

 

 

 

3,318

 

 

 

16,765

 

Intangible asset amortization

 

522

 

 

 

 

 

 

522

 

 

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

53,698

 

 

 

866

 

 

 

522

 

 

 

3,318

 

 

 

48,992

 

Loss from operations

$

(10,733

)

 

$

982

 

 

$

5,391

 

$

3,318

 

$

(1,042

)

1.

Includes transaction related expenses as well as post-combination compensation expenses. For each of the three months ended June 30, 2022, and June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.

2.

Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of revenue.

3.

Includes only amortization of intangible assets, which otherwise would have been allocated to research and development, selling and marketing or general and administrative expense and excludes the cost of revenue ($29.7 million and $25.0 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($4.8 million and $4.9 million) for the three months ended June 30, 2023 and for the three months ended June 30, 2022 respectively.

4.

For the three months ended June 30, 2022, $3.3 million expense included related to the impairment charge associated with certain developed technology intangible assets. For the three months ended June 30, 2023, includes $1.4 million related to the departure of the former executive chair.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

(Unaudited)

(In thousands)

Identified Expenses

GAAP

 

Acquisition
Related
Expenses (1)

 

Intangible
Assets
Amortization
Expense

 

Other
(4)

 

Total Non-GAAP
Measure

Six Months Ended June 30, 2023

Total revenue

$

172,744

 

 

$

 

 

$

 

 

$

 

 

$

172,744

 

Cost of testing revenue

 

42,981

 

 

 

83

 

 

 

 

 

 

 

 

 

42,898

 

Cost of product revenue

 

4,477

 

 

 

 

 

 

 

 

 

 

 

 

4,477

 

Cost of biopharmaceutical and other revenue

 

8,459

 

 

 

68

 

 

 

 

 

 

 

 

 

8,391

 

Intangible asset amortization (2)

 

9,618

 

 

 

 

 

 

9,618

 

 

 

 

 

 

 

Gross margin $

 

107,209

 

 

 

151

 

 

 

9,618

 

 

 

 

 

 

116,978

 

Gross margin %

 

62

%

 

 

 

 

 

 

 

 

68

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

25,310

 

 

 

41

 

 

 

 

 

 

 

 

 

25,269

 

Selling and marketing

 

51,886

 

 

 

1,779

 

 

 

 

 

 

 

 

 

50,107

 

General and administrative

 

47,510

 

 

 

2,756

 

 

 

 

 

 

2,781

 

 

 

41,973

 

Intangible asset amortization

 

1,052

 

 

 

 

 

 

1,052

 

 

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

125,758

 

 

 

4,576

 

 

 

1,052

 

 

 

2,781

 

 

 

117,349

 

Loss from operations

$

(18,549

)

 

$

4,727

 

 

$

10,670

 

 

$

2,781

 

 

$

(371

)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2022

Total revenue

$

140,647

 

 

$

 

 

$

 

 

$

 

 

$

140,647

 

Cost of testing revenue

 

36,107

 

 

 

104

 

 

 

 

 

 

 

 

 

36,003

 

Cost of product revenue

 

3,221

 

 

 

 

 

 

 

 

 

 

 

 

3,221

 

Cost of biopharmaceutical and other revenue

 

9,415

 

 

 

198

 

 

 

 

 

 

 

 

 

9,217

 

Intangible asset amortization (2)

 

9,823

 

 

 

 

 

 

9,823

 

 

 

 

 

 

 

Gross margin $

 

82,081

 

 

 

302

 

 

 

9,823

 

 

 

 

 

 

92,206

 

Gross margin %

 

58

%

 

 

 

 

 

 

 

 

66

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

18,543

 

 

 

935

 

 

 

 

 

 

 

 

 

17,608

 

Selling and marketing

 

47,755

 

 

 

2,074

 

 

 

 

 

 

 

 

 

45,681

 

General and administrative

 

40,710

 

 

 

2,605

 

 

 

 

 

 

3,318

 

 

 

34,787

 

Intangible asset amortization

 

1,054

 

 

 

 

 

 

1,054

 

 

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

108,062

 

 

 

5,614

 

 

 

1,054

 

 

 

3,318

 

 

 

98,076

 

Loss from operations

$

(25,981

)

 

$

5,916

 

$

10,877

 

$

3,318

 

$

(5,870

)

1.

Includes transaction related expenses as well as post-combination compensation expenses, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.

2.

Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of revenue.

3.

Includes only amortization of intangible assets, which otherwise would have been allocated to research and development, selling and marketing or general and administrative expense and excludes the cost of revenue ($55.9 and $48.7 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($9.6 and $9.8 million) for the first six months of 2023 and 2022 respectively.

4.

2022 includes $3.3 million expense related to the impairment charge associated with certain developed technology intangible assets; 2023 includes $1.4 million related to the departure of the former executive chair and $1.3 million related to restructuring costs.

 

Contacts

Investor Contact:
Shayla Gorman
Director, Investor Relations
619-393-1545
investors@veracyte.com

Media Contact:
Tracy Morris
Vice President of Global Corporate Communications
650-380-4413
tracy.morris@veracyte.com

Contacts

Investor Contact:
Shayla Gorman
Director, Investor Relations
619-393-1545
investors@veracyte.com

Media Contact:
Tracy Morris
Vice President of Global Corporate Communications
650-380-4413
tracy.morris@veracyte.com