Veracyte Announces Second Quarter 2024 Financial Results
Grew total revenue to
Grew testing revenue by 31%
Conference call and webcast today at
“Our exceptional second quarter results are a testament to the strength and robustness of Decipher and Afirma,” said
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
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
Net income for the second quarter of 2024 was
Adjusted EBITDA for the second quarter of 2024 was
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
Conference Call and Webcast Details
The conference call dial-in can be accessed by registering at the following link: https://register.vevent.com/register/BIbb7f6b70b4ce4820b6391059390d6139
About
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
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
|
||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||
(Unaudited) |
||||||||||||||
(In thousands, except share and per share amounts) |
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||
|
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 |
|
- 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 |
|
Six Months Ended |
||||||||
|
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 |
|
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
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 |
) |
|
|||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||
(In thousands) |
|||||
|
|
|
|
||
|
|
|
|
||
|
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 |
|
|
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 |
-
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 theSecurities and Exchange Commission datedFebruary 29, 2024 .
|
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(Unaudited) |
|||||||
(In thousands) |
|||||||
|
|
|
|
||||
|
Six Months Ended |
||||||
|
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) |
|||||
|
|
|
|
||
|
|
|
|
||
|
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 |
|
|||||||||||||||
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
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 |
|
-
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 endedJune 30, 2023 , adjustments consist primarily of post-combination compensation expenses associated with the acquisition ofHalioDx . For the six months endedJune 30, 2024 , adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months endedJune 30, 2023 , adjustments consist primarily of post-combination compensation expenses associated with the acquisition ofHalioDx . -
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 endedJune 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 endedJune 30, 2023 , includes$1.3 million related to impairment charges.
|
|||||||||||||||
RECONCILIATION OF |
|||||||||||||||
(Unaudited) |
|||||||||||||||
(In thousands) |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
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 |
|
-
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 endedJune 30, 2023 , adjustments consist primarily of post-combination compensation expenses associated with the acquisition ofHalioDx . For the six months endedJune 30, 2024 , adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months endedJune 30, 2023 , adjustments consist primarily of post-combination compensation expenses associated with the acquisition ofHalioDx . - Includes interest income and income related to research tax credits.
-
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 endedJune 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 endedJune 30, 2023 , includes$1.3 million related to impairment charges. - Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed.
- 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.
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650-380-4413
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