Press Release

Veracyte Announces Third Quarter 2023 Financial Results

November 7, 2023

Grew Total Revenue to $90.1 million, an Increase of 19%
Grew Testing Revenue by 27%

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

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Nov. 7, 2023-- Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the third quarter ended September 30, 2023.

“I am pleased to share we delivered another quarter of strong revenue growth, fueled by continued demand for our Decipher Prostate and Afirma tests,” said Marc Stapley, Veracyte’s chief executive officer. “These products are serving a critical unmet need for patients dealing with prostate and thyroid cancer, indications for which we believe there remains ample opportunity to fuel outsized, long-term growth.”

Key Business Highlights

  • Increased third quarter total revenue by 19% to $90.1 million, compared to the third quarter of 2022.
  • Grew total test volume to 32,544, an increase of 23% compared to the third quarter of 2022.
  • Presented 13 abstracts for our diagnostic tests and capabilities, as well as our biopharmaceutical offerings, at leading medical conferences. These included an oral presentation, at the American Society for Radiation Oncology (ASTRO) annual meeting, of findings from a phase 3, randomized trial demonstrating the Decipher Prostate Genomic Classifier’s performance as a tool to help guide therapeutic decisions for patients with prostate cancer.
  • Published study findings in JCO Precision Oncology, which suggest the potential of Decipher Genomic Resource for Intelligent Discovery (GRID)-derived gene signatures to predict treatment response in patients with recurrent prostate cancer.
  • Unveiled the Afirma GRID, a new research-use-only tool that leverages Veracyte’s Afirma-based whole-transcriptome sequencing platform to help identify new molecular hallmarks of thyroid nodules and cancer.
  • Entered into a multi-year in vitro diagnostic agreement with Illumina to broaden availability of our tests for patients globally by offering them on Illumina’s NextSeq 550Dx next-generation sequencing instrument.
  • Further strengthened the Veracyte leadership team with the additions of Phil Febbo, M.D., as chief scientific officer and chief medical officer and Marie-Claire Taine, Ph.D., as GM, IVD Business Unit.
  • Generated $14.2 million of cash from operations and ended the third quarter with $202.5 million of cash and cash equivalents.

Third Quarter 2023 Financial Results

Total revenue for the third quarter of 2023 was $90.1 million, an increase of 19% compared to $75.6 million reported in the third quarter of 2022. Testing revenue was $82.0 million, an increase of 27% compared to $64.6 million in the third 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 21% compared to $3.3 million in the third quarter of 2022. Biopharmaceutical and other revenue was $4.1 million, a decrease of 47% compared to $7.7 million in the third quarter of 2022.

Total gross margin for the third quarter of 2023, including the amortization of acquired intangible assets, was 64%, compared to 59% in the third quarter of 2022. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 69%, compared to 66% in the third quarter of 2022.

Operating expenses, excluding cost of revenue, were $89.4 million, which included an impairment charge of $34.9 million associated with the nCounter Analysis System license given the company’s decision to move to a multi-platform strategy for its IVD tests. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets, other acquisition related expenses and other restructuring costs, grew 13% to $57.7 million compared to $51.1 million in the third quarter of 2022.

Net loss for the third quarter of 2023 was $29.6 million, an increase of 240% compared to the third quarter of 2022, primarily related to the impairment charge. Basic and diluted net loss per common share was $0.41, an increase of $0.29 compared to the third quarter of 2022. Net cash provided by operating activities in the first nine months of 2023 was $28.7 million, an improvement of $30.9 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 $352 million to $354 million, representing year-over-year growth of approximately 19%, and an improvement compared to prior guidance of $342 million to $350 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/e88ivgzk. 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/BI6a0979098d6445eba9396420f175fc44

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, 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 and other regional conflicts, 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, potential government shutdowns 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 September 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, impairment charges associated with the nCounter license intangible assets 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
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2022

 

2023

 

2022

Revenues:

 

 

 

 

 

 

 

Testing revenue

$

82,012

 

 

$

64,577

 

 

$

236,157

 

 

$

180,275

 

Product revenue

 

4,020

 

 

 

3,314

 

 

 

11,923

 

 

 

9,401

 

Biopharmaceutical and other revenue

 

4,076

 

 

 

7,701

 

 

 

14,772

 

 

 

26,563

 

Total revenue

 

90,108

 

 

 

75,592

 

 

 

262,852

 

 

 

216,239

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

Cost of testing revenue

 

21,827

 

 

 

19,816

 

 

 

64,808

 

 

 

55,923

 

Cost of product revenue

 

2,436

 

 

 

1,981

 

 

 

6,913

 

 

 

5,202

 

Cost of biopharmaceutical and other revenue

 

3,347

 

 

 

4,211

 

 

 

11,806

 

 

 

13,626

 

Research and development

 

13,322

 

 

 

10,773

 

 

 

38,632

 

 

 

29,316

 

Selling and marketing

 

24,344

 

 

 

25,678

 

 

 

76,230

 

 

 

73,433

 

General and administrative

 

16,334

 

 

 

17,600

 

 

 

62,434

 

 

 

54,992

 

Impairment of long-lived assets

 

34,900

 

 

 

 

 

 

36,310

 

 

 

3,318

 

Intangible asset amortization

 

5,337

 

 

 

5,213

 

 

 

16,007

 

 

 

16,090

 

Total operating expenses

 

121,847

 

 

 

85,272

 

 

 

313,140

 

 

 

251,900

 

Loss from operations

 

(31,739

)

 

 

(9,680

)

 

 

(50,288

)

 

 

(35,661

)

Other income, net

 

1,967

 

 

 

805

 

 

 

4,148

 

 

 

2,675

 

Loss before income taxes

 

(29,772

)

 

 

(8,875

)

 

 

(46,140

)

 

 

(32,986

)

Income tax benefit

 

(154

)

 

 

(152

)

 

 

(29

)

 

 

(270

)

Net loss

$

(29,618

)

 

$

(8,723

)

 

$

(46,111

)

 

$

(32,716

)

Net loss per common share, basic and diluted

$

(0.41

)

 

$

(0.12

)

 

$

(0.64

)

 

$

(0.46

)

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

 

72,804,770

 

 

 

71,656,694

 

 

 

72,488,601

 

 

 

71,456,008

 

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
September 30,

 

Nine Months Ended
September 30,

 

 

2023

 

 

2022

 

 

2023

 

 

2022

Cost of revenue

$

502

 

$

290

 

$

1,386

 

$

947

Research and development

 

1,135

 

 

1,692

 

 

3,831

 

 

4,801

Selling and marketing

 

2,521

 

 

2,015

 

 

7,126

 

 

4,721

General and administrative

 

3,174

 

 

3,445

 

 

13,539

 

 

9,954

Total stock-based compensation expense

$

7,332

 

$

7,442

 

$

25,882

 

$

20,423

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

2023

 

2022

 

2023

 

2022

Net loss

$

(29,618

)

 

$

(8,723

)

 

$

(46,111

)

 

$

(32,716

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

Change in currency translation adjustments

 

(6,414

)

 

 

(16,016

)

 

 

(2,851

)

 

 

(38,983

)

 

 

 

 

 

 

 

 

Net comprehensive loss

$

(36,032

)

 

$

(24,739

)

 

$

(48,962

)

 

$

(71,699

)

VERACYTE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

September 30,

 

December 31,

 

2023

 

2022

 

(Unaudited)

 

(See Note 1)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

202,463

 

$

154,247

Short-term investments

 

 

 

24,605

Accounts receivable

 

39,297

 

 

44,021

Supplies and inventory

 

15,887

 

 

14,294

Prepaid expenses and other current assets

 

13,516

 

 

11,469

Total current assets

 

271,163

 

 

248,636

Property, plant and equipment, net

 

19,288

 

 

17,702

Right-of-use assets, operating leases

 

11,297

 

 

13,160

Intangible assets, net

 

123,567

 

 

174,866

Goodwill

 

693,176

 

 

695,891

Restricted cash

 

870

 

 

749

Other assets

 

5,582

 

 

5,418

Total assets

$

1,124,943

 

$

1,156,422

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

12,531

 

$

11,911

Accrued liabilities

 

34,828

 

 

37,774

Current portion of deferred revenue

 

2,214

 

 

2,613

Current portion of acquisition-related contingent consideration

 

2,574

 

 

6,060

Current portion of operating lease liabilities

 

5,007

 

 

4,070

Current portion of other liabilities

 

106

 

 

186

Total current liabilities

 

57,260

 

 

62,614

Deferred tax liabilities

 

3,644

 

 

4,531

Acquisition-related contingent consideration, net of current portion

 

484

 

 

2,498

Operating lease liabilities, net of current portion

 

8,720

 

 

10,648

Other liabilities

 

776

 

 

931

Total liabilities

 

70,884

 

 

81,222

Total stockholders’ equity

 

1,054,059

 

 

1,075,200

Total liabilities and stockholders’ equity

$

1,124,943

 

$

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)

 

 

Nine Months Ended
September 30,

 

2023

 

2022

Operating activities

 

 

 

Net loss

$

(46,111

)

 

$

(32,716

)

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

 

 

 

Depreciation and amortization

 

20,852

 

 

 

19,372

 

Loss on disposal of property, plant and equipment

 

136

 

 

 

72

 

Stock-based compensation

 

25,629

 

 

 

19,867

 

Deferred income taxes

 

(843

)

 

 

(270

)

Interest on end-of-term debt obligation

 

 

 

 

161

 

Noncash lease expense

 

3,130

 

 

 

2,487

 

Revaluation of acquisition-related contingent consideration

 

(5,500

)

 

 

(80

)

Effect of foreign currency on operations

 

657

 

 

 

1,563

 

Impairment loss

 

36,310

 

 

 

3,318

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

4,650

 

 

 

(4,356

)

Supplies and inventory

 

(1,636

)

 

 

(2,841

)

Prepaid expenses and other current assets

 

(1,578

)

 

 

(25

)

Other assets

 

(586

)

 

 

160

 

Operating lease liabilities

 

(3,225

)

 

 

(2,570

)

Accounts payable

 

185

 

 

 

(325

)

Accrued liabilities and deferred revenue

 

(3,400

)

 

 

(6,026

)

Net cash provided by (used in) operating activities

 

28,670

 

 

 

(2,209

)

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

 

 

 

12,696

 

Purchases of property, plant and equipment

 

(7,464

)

 

 

(6,677

)

Net cash provided by (used in) investing activities

 

17,609

 

 

 

(2,953

)

Financing activities

 

 

 

Payment of long-term debt

 

 

 

 

(94

)

Payment of taxes on vested restricted stock units

 

(5,614

)

 

 

(2,639

)

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

 

7,806

 

 

 

6,134

 

Net cash provided by financing activities

 

2,192

 

 

 

3,401

 

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

 

48,471

 

 

 

(1,761

)

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

 

(134

)

 

 

(1,324

)

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

 

48,337

 

 

 

(3,085

)

Cash, cash equivalents and restricted cash at beginning of period

 

154,996

 

 

 

173,946

 

Cash, cash equivalents and restricted cash at end of period

$

203,333

 

 

$

170,861

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(Unaudited)

(In thousands)

 

 

 

 

 

September 30,

 

December 31,

 

2023

 

2022

Cash and cash equivalents

$

202,463

 

$

154,247

Restricted cash

 

870

 

 

749

Total cash, cash equivalents and restricted cash

$

203,333

 

$

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 September 30, 2023

 

 

 

 

 

 

 

 

 

Total revenue

$

         90,108

 

 

$

                     —

 

 

$

                       —

 

$

          —

 

$

                      90,108

 

Cost of testing revenue

 

           21,827

 

 

 

                       —

 

 

 

                         —

 

 

            —

 

 

                       21,827

 

Cost of product revenue

 

             2,436

 

 

 

                       —

 

 

 

                         —

 

 

            —

 

 

                         2,436

 

Cost of biopharmaceutical and other revenue

 

             3,347

 

 

 

                      26

 

 

 

                         —

 

 

            —

 

 

                         3,321

 

Intangible asset amortization (2)

 

             4,811

 

 

 

                       —

 

 

 

                    4,811 

 

 

            —

 

 

                              —

 

Gross margin $

 

           57,687

 

 

 

                      26

 

 

 

                    4,811 

 

 

            —

 

 

                       62,524

 

Gross margin %

 

64

%

 

 

 

 

 

 

 

 

69

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

           13,322

 

 

 

                      17

 

 

 

                         —

 

 

            —

 

 

                       13,305

 

Selling and marketing

 

           24,344

 

 

 

                     537

 

 

 

                         —

 

 

            —

 

 

                       23,807

 

General and administrative

 

           16,334

 

 

 

                (4,294

)

 

 

                         —

 

 

            —

 

 

                       20,628

 

Impairment of long-lived assets

 

           34,900

 

 

 

                       —

 

 

 

                         —

 

 

     34,900 

 

 

                              —

 

Intangible asset amortization

 

               526

 

 

 

                       —

 

 

 

                       526 

 

 

            —

 

 

                              —

 

Total operating expenses excluding cost of revenue (3)

 

           89,426

 

 

 

                (3,740

)

 

 

                       526 

 

 

     34,900 

 

 

                       57,740

 

Loss from operations

$

       (31,739

)   

 

$

              (3,714

)

 

$

                  5,337 

 

$

   34,900 

 

$

                       4,784

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

Total revenue

$

         75,592

 

 

$

                     —

 

 

$

                       —

 

$

          —

 

$

                      75,592

 

Cost of testing revenue

 

           19,816

 

 

 

                      49

 

 

 

                         —

 

 

           18

 

 

                       19,749

 

Cost of product revenue

 

             1,981

 

 

 

                       —

 

 

 

                         —

 

 

             3

 

 

                         1,978

 

Cost of biopharmaceutical and other revenue

 

             4,211

 

 

 

                      62

 

 

 

                         —

 

 

            —

 

 

                         4,149

 

Intangible asset amortization (2)

 

             4,703

 

 

 

                       —

 

 

 

                    4,703 

 

 

            —

 

 

                              —

 

Gross margin $

 

           44,881

 

 

 

                     111

 

 

 

                    4,703 

 

 

           21

 

 

                       49,716

 

Gross margin %

 

59

%

 

 

 

 

 

 

 

 

66

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

           10,773

 

 

 

                     251

 

 

 

                         —

 

 

            —

 

 

                       10,522

 

Selling and marketing

 

           25,678

 

 

 

                     923

 

 

 

                         —

 

 

         493

 

 

                       24,262

 

General and administrative

 

           17,600

 

 

 

                  1,272

 

 

 

                         —

 

 

            —

 

 

                       16,328

 

Impairment of long-lived assets

 

                  —

 

 

 

                       —

 

 

 

                         —

 

 

            —

 

 

                              —

 

Intangible asset amortization

 

               510

 

 

 

                       —

 

 

 

                       510 

 

 

            —

 

 

                              —

 

Total operating expenses excluding cost of revenue (3)

 

           54,561

 

 

 

                  2,446

 

 

 

                       510 

 

 

         493

 

 

                       51,112

 

Loss from operations

$

         (9,680

)   

 

$

                2,557

 

 

$

                  5,213 

 

$

        514

 

$

                      (1,396

)   

1.

 

Includes transaction related expenses as well as post-combination compensation expenses. For each of the three months ended September 30, 2022, and September 30, 2023, adjustments consist primarily of remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy and 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 ($27.6 million and $26.0 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($4.8 million and $4.7 million) for the three months ended September 30, 2023 and for the three months ended September 30, 2022 respectively.

4.

 

For the three months ended September 30, 2023, includes $34.9 million expense related to the impairment charge associated with the nCounter license intangible assets. For the three months ended September 30, 2022, includes $0.5 million related to restructuring costs.

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

Nine Months Ended September 30, 2023

 

 

 

 

 

 

 

 

 

Total revenue

$

       262,852

 

 

$

                     —

 

 

$

                       —

 

$

          —

 

$

                    262,852

 

Cost of testing revenue

 

           64,808

 

 

 

                      83

 

 

 

                         —

 

 

            —

 

 

                       64,725

 

Cost of product revenue

 

             6,913

 

 

 

                       —

 

 

 

                         —

 

 

            —

 

 

                         6,913

 

Cost of biopharmaceutical and other revenue

 

           11,806

 

 

 

                      94

 

 

 

                         —

 

 

            —

 

 

                       11,712

 

Intangible asset amortization (2)

 

           14,429

 

 

 

                       —

 

 

 

                  14,429 

 

 

            —

 

 

                              —

 

Gross margin $

 

         164,896

 

 

 

                     177

 

 

 

                  14,429 

 

 

            —

 

 

                     179,502

 

Gross margin %

 

63

%

 

 

 

 

 

 

 

 

68

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

           38,632

 

 

 

                      58

 

 

 

                         —

 

 

            —

 

 

                       38,574

 

Selling and marketing

 

           76,230

 

 

 

                  2,316

 

 

 

                         —

 

 

            —

 

 

                       73,914

 

General and administrative

 

           62,434

 

 

 

                (1,538

)

 

 

                         —

 

 

       1,371

 

 

                       62,601

 

Impairment of long-lived assets

 

           36,310

 

 

 

                       —

 

 

 

                         —

 

 

     36,310 

 

 

                              —

 

Intangible asset amortization

 

             1,578

 

 

 

                       —

 

 

 

                    1,578 

 

 

            —

 

 

                              —

 

Total operating expenses excluding cost of revenue (3)

 

         215,184

 

 

 

                     836

 

 

 

                    1,578 

 

 

     37,681 

 

 

                     175,089

 

Loss from operations

$

       (50,288

)   

 

$

                1,013

 

 

$

                16,007 

 

$

   37,681 

 

$

                       4,413

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2022

 

 

 

 

 

 

 

 

 

Total revenue

$

       216,239

 

 

$

                     —

 

 

$

                       —

 

$

          —

 

$

                    216,239

 

Cost of testing revenue

 

           55,923

 

 

 

                     153

 

 

 

                         —

 

 

           18

 

 

                       55,752

 

Cost of product revenue

 

             5,202

 

 

 

                       —

 

 

 

                         —

 

 

             3

 

 

                         5,199

 

Cost of biopharmaceutical and other revenue

 

           13,626

 

 

 

                     261

 

 

 

                         —

 

 

            —

 

 

                       13,365

 

Intangible asset amortization (2)

 

           14,526

 

 

 

                       —

 

 

 

                  14,526 

 

 

            —

 

 

                              —

 

Gross margin $

 

         126,962

 

 

 

                     414

 

 

 

                  14,526 

 

 

           21

 

 

                     141,923

 

Gross margin %

 

59

%

 

 

 

 

 

 

 

 

66

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

           29,316

 

 

 

                  1,186

 

 

 

                         —

 

 

            —

 

 

                       28,130

 

Selling and marketing

 

           73,433

 

 

 

                  2,997

 

 

 

                         —

 

 

         493

 

 

                       69,943

 

General and administrative

 

           54,992

 

 

 

                  3,877

 

 

 

                         —

 

 

            —

 

 

                       51,115

 

Impairment of long-lived assets

 

             3,318

 

 

 

                       —

 

 

 

                         —

 

 

       3,318

 

 

                              —

 

Intangible asset amortization

 

             1,564

 

 

 

                       —

 

 

 

                    1,564 

 

 

            —

 

 

                              —

 

Total operating expenses excluding cost of revenue (3)

 

         162,623

 

 

 

                  8,060

 

 

 

                    1,564 

 

 

       3,811 

 

 

                     149,188

 

Loss from operations

$

       (35,661

)   

 

$

                8,474

 

 

$

                16,090 

 

$

     3,832

 

$

                      (7,265

)   

1.

 

Includes transaction related expenses as well as post-combination compensation expenses, adjustments consist primarily of remeasurement of contingent consideration related to our adoption of a multi-platform IVD strategy and 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 ($83.5 and $74.8 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($14.4 and $14.5 million) for the first nine 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 $34.9 million expense related to the impairment charge associated with the nCounter license intangible assets and $1.4 million related to the departure of the former executive chair and $1.4 million related to restructuring costs.

 

Investor Contact:
619-393-1545
investors@veracyte.com

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

Source: Veracyte, Inc.