Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36156 VERACYTE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36156 VERACYTE, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of (I. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-36156 ________________________________ VERAC ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36156 VERACYTE, INC. (Exact Name of Registrant as Specified in its Charter) (State or Other Jurisdiction of Incorpo ...

Revenue and Growth - Revenue for Q3 2019 was $31.0 million, a 32% increase year-over-year; excluding biopharmaceutical services revenue, revenue was $26.7 million, a 15% increase [105]. - Revenue for the three months ended September 30, 2019, increased by $7.5 million, or 32%, compared to the same period in 2018, primarily due to a $4.3 million increase in biopharmaceutical service revenue and a 24% volume increase in genomic classifiers [139]. - Revenue increased by $24.4 million, or 37%, for the nine months ended September 30, 2019, primarily due to a 28% volume increase in genomic classifiers [140]. Gross Margin and Expenses - Gross margin for Q3 2019 was 71%, an increase of six percentage points; excluding biopharmaceutical services revenue, gross margin was 66%, an increase of two percentage points [105]. - Total operating expenses for the three months ended September 30, 2019, were $32.7 million, an increase of 18% compared to $27.8 million in the same period of 2018 [138]. - Research and development expenses for the three months ended September 30, 2019, were $3.6 million, a 7% increase from $3.4 million in the same period of 2018 [138]. - Selling and marketing expenses increased by 30% to $13.1 million for the three months ended September 30, 2019, compared to $10.1 million in the same period of 2018 [138]. - General and administrative expense increased by $3.1 million, or 18%, for the nine months ended September 30, 2019, mainly due to higher stock-based compensation [150]. Test Volume and Product Development - Total genomic test volume grew to 9,941 in Q3 2019, a 24% increase compared to Q3 2018 [108]. - Percepta Genomic Sequencing Classifier volume increased to 793 tests, a 112% increase compared to Q3 2018 [108]. - Afirma test volume grew to 8,925 tests, a 17% increase compared to the same quarter last year [108]. - The company has commercialized seven genomic tests addressing a $2 billion global market opportunity [101]. - The company has expanded its product portfolio with innovations in genomic science and machine learning methodologies to improve patient care [120]. Financial Position and Cash Flow - Cash and cash equivalents were $195.7 million as of September 30, 2019 [105]. - Cash used in operating activities for the nine months ended September 30, 2019 was $5.0 million, a decrease from $12.3 million in the same period of 2018 [164][166]. - Cash provided by financing activities for the nine months ended September 30, 2019 was $124.3 million, significantly higher than $57.7 million in the same period of 2018 [168][169]. - As of September 30, 2019, the company had cash and cash equivalents of $195.7 million, which is expected to meet anticipated cash requirements for at least the next 12 months [155]. Losses and Improvements - Net loss for Q3 2019 was $0.7 million, an improvement of 84% year-over-year [105]. - The company reported a net loss of $730,000 for the three months ended September 30, 2019, a significant improvement compared to a net loss of $4.5 million in the same period of 2018, reflecting a 84% reduction in losses [138]. - The company incurred a net loss of $5.1 million for the nine months ended September 30, 2019, with an accumulated deficit of $239.2 million [154]. - The company reported a net loss of $5.1 million for the nine months ended September 30, 2019, which included non-cash charges of $7.0 million for stock-based compensation [165]. Interest and Debt Management - Interest expense decreased by $831,000, or 58%, for the nine months ended September 30, 2019, due to prepayments of $12.5 million and $12.4 million of the Term Loan Advance [152]. - The average Term Loan Advance interest rate was 6.94% for the nine months ended September 30, 2019, compared to 6.03% for the same period in 2018 [152]. - As of September 30, 2019, the principal balance outstanding under the Loan and Security Agreement was $0.1 million, with compliance to debt covenants [160]. - Future principal payments due under the Loan and Security Agreement are limited to $1.3 million in 2022 [170].

Financial Performance - Revenue for Q2 2019 was $30.1 million, a 32% increase year-over-year; excluding biopharmaceutical services revenue, revenue was $26.7 million, a 20% increase [105]. - Net loss for Q2 2019 was $2.5 million, a 60% improvement; net loss per share improved by 72% to $0.05 [105]. - Revenue increased by $7.4 million, or 32%, for the three months ended June 30, 2019, primarily due to a 26% volume increase in genomic classifiers [135]. - For the six months ended June 30, 2019, revenue increased by $16.9 million, or 39%, driven by a 29% volume increase in genomic classifiers [136]. - The net loss for the three months ended June 30, 2019, was $2.5 million, a reduction of 60% compared to a net loss of $6.2 million in the same period in 2018 [137]. - The company incurred a net loss of $4.4 million for the six months ended June 30, 2019, with an accumulated deficit of $238.5 million as of the same date [150]. Test Volume and Revenue Sources - Total genomic test volume increased by 26% year-over-year to 9,663 tests in Q2 2019 [105]. - The Percepta classifier test volume grew to 744 tests, with revenue exceeding $1.0 million, representing increases of 142% and 159%, respectively [105]. - The Envisia Genomic Classifier test volume increased by over 100% sequentially from Q1 2019, reaching 130 tests across 76 sites [107]. - Revenue from third-party payers for the three months ended June 30, 2019, included 26% from Medicare and 11% from UnitedHealthcare, totaling 37% of total revenue [124]. - The company recognized $3.2 million and $7.0 million of revenue from a diagnostics development agreement with Johnson & Johnson for the three and six months ended June 30, 2019, respectively, representing 10.6% and 11.7% of total revenue [124]. Expenses and Financial Management - Total operating expenses for the three months ended June 30, 2019, were $33.2 million, an increase of 16% compared to the same period in 2018 [137]. - Research and development expenses are expected to remain significant as the company continues to invest in developing additional products and evaluating various platforms [127]. - Selling and marketing expenses are anticipated to increase as the company expands its internal sales force and invests in its multi-product sales strategy [129]. - General and administrative expenses are expected to rise as the company builds its infrastructure, with approximately 66% of the average headcount in this category focused on billing and customer care [130]. - Selling and marketing expenses increased by $4.3 million, or 45%, for the three months ended June 30, 2019, compared to the same period in 2018 [142]. - General and administrative expenses rose by $1.0 million, or 17%, for the three months ended June 30, 2019, compared to the same period in 2018, with compensation expenses increasing primarily due to higher stock-based compensation [145]. Cash Flow and Financing - Cash used in operating activities for the six months ended June 30, 2019, was $3.5 million, with a net loss of $4.4 million including non-cash charges of $4.3 million in stock-based compensation [160]. - Cash provided by financing activities for the six months ended June 30, 2019, was $119.5 million, primarily from net proceeds of $137.8 million from a public offering [163]. - The company had cash and cash equivalents of $192.6 million as of June 30, 2019, which is expected to meet anticipated cash requirements for at least the next 12 months [151]. Market Risks and Accounting Standards - The company is exposed to market risks primarily related to interest rates under its Loan and Security Agreement [170]. - Significant changes in market rates may adversely affect the company's operating results [170]. - The adoption of ASC 842 resulted in the recognition of operating lease right-of-use (ROU) assets of $9.8 million and associated operating lease liabilities of $14.1 million [168]. - The company is currently evaluating the potential effect of ASU No. 2018-18 on its financial statements [169].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________ FORM 10-Q ________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents Commission file number 001-36156 ________________________________ VERACYTE, INC. (Exact name of registran ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ý ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-36156 VERACYTE, INC. (Exact Name of Registrant as Specified in its Charter) Delaware (State or Other Jurisdiction o ...