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Veracyte Announces Second Quarter 2022 Financial Results
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Aug 2, 2022

Veracyte Announces Second Quarter 2022 Financial Results

Grew Total Revenue to $72.9 million, an Increase of 32%

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

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)--Aug. 2, 2022-- Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2022.

“Our second quarter results reflect our continued focus on execution, and as a result, our portfolio delivered robust revenue growth,” said Marc Stapley, Veracyte’s chief executive officer. “In addition, we significantly expanded the library of clinical evidence demonstrating the performance and utility of our genomic tests and biopharma offerings, which we believe will help drive further test adoption and partnerships. We remain firmly focused on exercising financial discipline as we continue to invest in our near- and long-term growth opportunities to deliver on our strategic vision of improving outcomes for patients all over the world.”

Key Business Highlights:

  • Increased second quarter total revenue by 32% to $72.9 million, compared to the second quarter of 2021;
  • Grew total test volume to 24,904, an increase of 19% compared to the second quarter of 2021;
  • Announced that an updated clinical guideline from the American Urological Association and American Society for Radiation Oncology features a favorable statement for genomic testing, including Decipher Prostate, to help guide care for men with localized prostate cancer.
  • Unveiled key clinical evidence across Veracyte’s portfolio:
    • Decipher Prostate – Data was published in Annals of Oncology reinforcing the clinical utility of the Decipher Prostate genomic classifier for helping to guide the timing and intensity of therapy in men experiencing prostate cancer recurrence following radical prostatectomy. Additionally, data unveiled at the 2022 ASCO Annual Meeting demonstrated that population-based prostate cancer treatment patterns are independently associated with Decipher classifier score;
    • Afirma Genomic Sequencing Classifier – Meta-analysis of independent, real-world studies were presented at ENDO 2022 demonstrating consistent and enhanced Afirma GSC performance, compared to the test’s original clinical validation study;
    • Prosigna Breast Cancer Assay – New consensus survey data presented at the ESMO Breast annual meeting showed that leading breast cancer oncologists in Europe agree on the value of gene expression profiling tests, such as Prosigna, and on the importance of molecular subtype information to help inform treatment decisions for patients with early-stage breast cancer;
    • Biopharma – New study findings presented orally at ASCO and in a paper published in Lancet Oncology showed the Immunoscore Immune Checkpoint (IC) biomarker’s ability to identify which patients will benefit from immune checkpoint inhibitors in metastatic non-small cell lung cancer and metastatic colorectal cancer, respectively; and
    • Percepta Nasal Swab – Data presented at the ATS annual meeting showed that the noninvasive genomic test performed similarly well across the spectrum of tobacco-related risk.
  • Ended the second quarter of 2022 with cash, cash equivalents and short-term investments of $164.0 million, compared to $166.4 million at the end of the first quarter of 2022.

Second Quarter 2022 Financial Results

Total revenue for the second quarter of 2022 was $72.9 million, an increase of 32% compared to $55.1 million in the second quarter of 2021. Testing revenue was $59.7 million, an increase of 18% compared to $50.8 million in the second quarter of 2021 driven primarily by the strong performance of our urology tests. Product revenue was $3.1 million, an increase of 16% compared to $2.7 million in the second quarter of 2021. Biopharmaceutical and other revenue was $10.0 million, an increase of $8.4 million compared to $1.6 million in the second quarter of 2021, driven primarily by the contribution of the HalioDx acquisition.

Total gross margin for the second quarter of 2022, including the amortization of acquired intangible assets, was 59%, compared to 62% in the second quarter of 2021. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 66%, compared to 68% in the second quarter of 2021.

Operating expenses, excluding cost of revenue, were $53.7 million, an increase of 29% compared to the second quarter of 2021. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets and other acquisition related expenses, were $49.0 million compared to $38.0 million in the second quarter of 2021.

Second quarter 2022 net loss was $9.5 million, an increase of 5% compared to the second quarter of 2021. Basic and diluted net loss per common share was $0.13, flat to the second quarter of 2021. Net cash used by operating activities in the first six months of 2022 was $9.2 million, an improvement of $29.4 million compared to the same period in 2021.

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."

2022 Financial Outlook

The company is currently projecting full-year 2022 total revenue of $272 million to $280 million, representing year-over-year growth of 24% to 28% compared to the prior year, assuming currency rates as of August 2, 2022. This represents an improved outlook compared to our prior guidance of $265 million to $275 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/xvodmkry. 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/BI2d52800c01ef45e7b962619638558741

About Veracyte

Veracyte (Nasdaq: VCYT) is a global diagnostics company that improves patient care by answering important clinical questions to inform diagnosis and treatment decisions. Our growing menu of advanced diagnostic tests help patients avoid risky, costly procedures and interventions, and reduce time to appropriate treatment. In addition to making our tests available in the United States through our central laboratories, our exclusive license to our best-in-class diagnostics instrument positions us to deliver our tests to patients worldwide through laboratories that can perform them locally. Veracyte is based in South San Francisco, California. 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 2022 and our plans, objectives, expectations (financial and otherwise) or intentions with respect to our Prosigna, Afirma, Percepta, Envisia, LymphMark, Decipher Prostate, Percepta Nasal Swab, Percepta Genomic Atlas and Decipher Bladder tests and products, including our biopharma atlas, for use in diagnosing and treating diseases, Medicare coverage, 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 COVID-19 pandemic and its variants on our business and general economic conditions; the impact of foreign currency fluctuations and inflation; 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 28, 2022, and our Quarterly Report on Form 10-Q to be filed for the three months ended June 30, 2022. Copies of these documents, when available, may be found in the Investors section of our website at www.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, Decipher GRID, 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 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 of dollars, except share and per share amounts)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenues:

 

 

 

 

 

 

 

Testing revenue

$

59,718

 

 

$

50,793

 

 

$

115,698

 

 

$

83,871

 

Product revenue

 

3,108

 

 

 

2,688

 

 

 

6,087

 

 

 

5,747

 

Biopharmaceutical and other revenue

 

10,038

 

 

 

1,624

 

 

 

18,862

 

 

 

2,190

 

Total revenue

 

72,864

 

 

 

55,105

 

 

 

140,647

 

 

 

91,808

 

 

 

 

 

 

 

 

 

Operating expenses (1):

 

 

 

 

 

 

 

Cost of testing revenue

 

18,584

 

 

 

15,589

 

 

 

36,107

 

 

 

26,421

 

Cost of product revenue

 

1,646

 

 

 

1,323

 

 

 

3,221

 

 

 

2,813

 

Cost of biopharmaceutical and other revenue

 

4,800

 

 

 

560

 

 

 

9,415

 

 

 

641

 

Research and development

 

9,377

 

 

 

6,249

 

 

 

18,543

 

 

 

11,585

 

Selling and marketing

 

24,001

 

 

 

19,662

 

 

 

47,755

 

 

 

35,958

 

General and administrative

 

19,798

 

 

 

15,473

 

 

 

40,710

 

 

 

61,755

 

Intangible asset amortization

 

5,391

 

 

 

3,723

 

 

 

10,877

 

 

 

5,524

 

Total operating expenses

 

83,597

 

 

 

62,579

 

 

 

166,628

 

 

 

144,697

 

Loss from operations

 

(10,733

)

 

 

(7,474

)

 

 

(25,981

)

 

 

(52,889

)

Other income (loss), net

 

1,086

 

 

 

(1,716

)

 

 

1,870

 

 

 

(1,964

)

Loss before income taxes

 

(9,647

)

 

 

(9,190

)

 

 

(24,111

)

 

 

(54,853

)

Income tax benefit

 

(115

)

 

 

(152

)

 

 

(118

)

 

 

(3,947

)

Net loss

$

(9,532

)

 

$

(9,038

)

 

$

(23,993

)

 

$

(50,906

)

Net loss per common share, basic and diluted

$

(0.13

)

 

$

(0.13

)

 

$

(0.34

)

 

$

(0.78

)

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

 

71,476,966

 

 

 

67,316,065

 

 

 

71,354,002

 

 

 

65,334,890

 

 

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,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Cost of revenue

$

386

 

$

156

 

$

657

 

$

287

Research and development

 

1,452

 

 

1,072

 

 

3,108

 

 

1,916

Selling and marketing

 

1,660

 

 

600

 

 

2,705

 

 

1,636

General and administrative

 

2,627

 

 

2,236

 

 

6,510

 

 

4,080

Total stock-based compensation expense

$

6,125

 

$

4,064

 

$

12,980

 

$

7,919

 

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(9,532

)

 

$

(9,038

)

 

$

(23,993

)

 

$

(50,906

)

Other comprehensive loss:

 

 

 

 

 

 

 

Change in currency translation adjustments

 

(17,369

)

 

 

 

 

 

(22,967

)

 

 

 

 

 

 

 

 

 

 

 

Net comprehensive loss

$

(26,901

)

 

$

(9,038

)

 

$

(46,960

)

 

$

(50,906

)

 

VERACYTE, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

June 30,

 

December 31,

 

2022

 

2021

 

(Unaudited)

 

(See Note 1)

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

153,447

 

$

173,197

Short-term investments

 

10,551

 

 

3,964

Accounts receivable

 

40,448

 

 

41,461

Supplies and inventory

 

14,600

 

 

11,225

Prepaid expenses and other current assets

 

15,999

 

 

13,255

Total current assets

 

235,045

 

 

243,102

Property and equipment, net

 

17,188

 

 

15,098

Right-of-use assets, operating leases

 

14,816

 

 

16,043

Intangible assets, net

 

184,367

 

 

202,731

Goodwill

 

690,040

 

 

707,904

Restricted cash

 

749

 

 

749

Other assets

 

1,993

 

 

2,198

Total assets

$

1,144,198

 

$

1,187,825

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

10,328

 

$

12,360

Accrued liabilities

 

33,565

 

 

39,475

Current portion of long-term debt

 

1,133

 

 

1,127

Current portion of deferred revenue

 

4,193

 

 

4,646

Current portion of acquisition-related contingent consideration

 

5,998

 

 

2,682

Current portion of operating lease liabilities

 

3,930

 

 

3,630

Current portion of other liabilities

 

198

 

 

231

Total current liabilities

 

59,345

 

 

64,151

Deferred revenue, net of current portion

 

 

 

343

Deferred tax liabilities

 

4,605

 

 

5,592

Acquisition-related contingent consideration, net of current portion

 

2,358

 

 

5,722

Operating lease liabilities, net of current portion

 

12,529

 

 

14,096

Other liabilities

 

1,210

 

 

1,407

Total liabilities

 

80,047

 

 

91,311

Total stockholders’ equity

 

1,064,151

 

 

1,096,514

Total liabilities and stockholders’ equity

$

1,144,198

 

$

1,187,825

 

 

 

 

1. The condensed consolidated balance sheet at December 31, 2021 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 28, 2022.

VERACYTE, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands of dollars)

 

 

 

 

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

Operating activities

 

 

 

Net loss

$

(23,993

)

 

$

(50,906

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation and amortization

 

13,048

 

 

 

7,050

 

Stock-based compensation

 

12,584

 

 

 

7,919

 

Benefit from income taxes

 

(118

)

 

 

(3,947

)

Interest on end-of-term debt obligation

 

107

 

 

 

107

 

Noncash lease expense

 

1,638

 

 

 

885

 

Revaluation of acquisition-related contingent consideration

 

(48

)

 

 

247

 

Effect of foreign currency on operations

 

716

 

 

 

1,866

 

Impairment of intangible assets

 

3,318

 

 

 

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(2,936

)

 

 

(6,713

)

Supplies and inventory

 

(3,654

)

 

 

(375

)

Prepaid expenses and other current assets

 

(1,830

)

 

 

(1,288

)

Other assets

 

284

 

 

 

(30

)

Operating lease liabilities

 

(1,680

)

 

 

(1,017

)

Accounts payable

 

(1,373

)

 

 

2,758

 

Accrued liabilities and deferred revenue

 

(5,298

)

 

 

4,770

 

Net cash used in operating activities

 

(9,235

)

 

 

(38,674

)

Investing activities

 

 

 

Acquisition of Decipher Biosciences, net of cash acquired

 

 

 

 

(574,411

)

Purchase of short-term investments

 

(8,972

)

 

 

 

Proceeds from maturity of short-term investments

 

2,175

 

 

 

 

Proceeds from sale of equity securities

 

 

 

 

3,000

 

Purchases of property and equipment

 

(4,963

)

 

 

(2,723

)

Net cash used in investing activities

 

(11,760

)

 

 

(574,134

)

Financing activities

 

 

 

Proceeds from the issuance of common stock in a public offering, net of issuance costs

 

 

 

 

593,821

 

Payment of long-term debt

 

(97

)

 

 

 

Payment of taxes on vested restricted stock units

 

(1,865

)

 

 

(7,484

)

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

 

3,877

 

 

 

6,595

 

Net cash provided by financing activities

 

1,915

 

 

 

592,932

 

Decrease in cash, cash equivalents and restricted cash

 

(19,080

)

 

 

(19,876

)

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

 

(670

)

 

 

(1,797

)

Net decrease in cash, cash equivalents and restricted cash

 

(19,750

)

 

 

(21,673

)

Cash, cash equivalents and restricted cash at beginning of period

 

173,946

 

 

 

349,967

 

Cash, cash equivalents and restricted cash at end of period

$

154,196

 

 

$

328,294

 

 

 

 

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

(Unaudited)

(In thousands of dollars)

 

 

 

 

 

June 30,

 

December 31,

 

2022

 

2021

Cash and cash equivalents

$

153,447

 

$

173,197

Restricted cash

 

749

 

 

749

Total cash, cash equivalents and restricted cash

$

154,196

 

$

173,946

 

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

(Unaudited)

(In thousands of dollars)

 

 

 

Identified Expenses

 

 

 

GAAP

 

Acquisition
Related
Expenses (1)

 

Intangible
Assets
Amortization

Expense

 

Other
(4)

 

Total Non-GAAP
Measure

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

)

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Total revenue

$

55,105

 

 

$

 

 

$

 

$

 

$

55,105

 

Cost of testing revenue

 

15,589

 

 

 

 

 

 

 

 

 

 

15,589

 

Cost of product revenue

 

1,323

 

 

 

 

 

 

 

 

 

 

1,323

 

Cost of biopharmaceutical and other revenue

 

560

 

 

 

 

 

 

 

 

 

 

560

 

Intangible asset amortization (2)

 

3,402

 

 

 

 

 

 

3,402

 

 

 

 

 

Gross margin $

 

34,231

 

 

 

 

 

 

3,402

 

 

 

 

37,633

 

Gross margin %

 

62

%

 

 

 

 

 

 

 

 

68

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

6,249

 

 

 

 

 

 

 

 

 

 

6,249

 

Selling and marketing

 

19,662

 

 

 

12

 

 

 

 

 

 

 

19,650

 

General and administrative

 

15,473

 

 

 

3,380

 

 

 

 

 

 

 

12,093

 

Intangible asset amortization

 

321

 

 

 

 

 

 

321

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

41,705

 

 

 

3,392

 

 

 

321

 

 

 

 

37,992

 

Loss from operations

$

(7,474

)

 

$

3,392

 

 

$

3,723

 

$

 

$

(359

)

 

 

 

 

 

 

 

 

 

 

1. Includes transaction related expenses as well as post-combination compensation expenses. For 2021, adjustments consist primarily of transaction-related expenses associated with the acquisition of Decipher Biosciences. For 2022, 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 ($25.0 and $17.5 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($4.9 and $3.4 million) for Q2 2022 and 2021 respectively.

4. Includes $3.3 million expense related to the impairment charge associated with certain developed technology intangible assets

 

 

 

 

 

 

 

 

 

 

 
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands of dollars)

 

 

 

 

 

 

 

 

 

 

Identified Expenses

GAAP

 

Acquisition
Related
Expenses (1)

 

Intangible
Assets
Amortization

Expense

 

Other
(4)

 

 

Total Non-GAAP
Measure

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

)

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2021

 

 

 

 

 

 

 

 

Total revenue

$

91,808

 

 

$

 

 

$

 

$

 

$

91,808

 

Cost of testing revenue

 

26,421

 

 

 

 

 

 

 

 

 

 

26,421

 

Cost of product revenue

 

2,813

 

 

 

 

 

 

 

 

 

 

2,813

 

Cost of biopharmaceutical and other revenue

 

641

 

 

 

 

 

 

 

 

 

 

641

 

Intangible asset amortization (2)

 

5,038

 

 

 

 

 

 

5,038

 

 

 

 

 

Gross margin $

 

56,895

 

 

 

 

 

 

5,038

 

 

 

 

61,933

 

Gross margin %

 

62

%

 

 

 

 

 

 

 

 

67

%

 

 

 

 

 

 

 

 

 

 

Research and development

 

11,585

 

 

 

1

 

 

 

 

 

 

 

11,584

 

Selling and marketing

 

35,958

 

 

 

68

 

 

 

 

 

 

 

35,890

 

General and administrative

 

61,755

 

 

 

39,368

 

 

 

 

 

 

 

22,387

 

Intangible asset amortization

 

486

 

 

 

 

 

 

486

 

 

 

 

 

Total operating expenses excluding cost of revenue (3)

 

109,784

 

 

 

39,437

 

 

 

486

 

 

 

 

69,861

 

Loss from operations

$

(52,889

)

 

$

39,437

 

 

$

5,524

 

$

 

$

(7,928

)

 

 

 

 

 

 

 

 

 

 

1. Includes transaction related expenses as well as post-combination compensation expenses. For 2021, adjustments consist primarily of transaction-related expenses associated with the acquisition of Decipher Biosciences. For 2022, 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 ($48.7 and $29.9 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($9.8 and $5.0 million) for H1 2022 and 2021 respectively

4. Includes $3.3 million expense related to the impairment charge associated with certain developed technology intangible assets

 

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

Source: Veracyte, Inc.