Financial Data and Key Metrics Changes - The company reported first-quarter revenue of $96.8 million, a 17% increase compared to the prior year period, driven by a 25% growth in the testing business [17][31] - Total testing volume reached approximately 33,500 tests, reflecting a 16% increase year-over-year [31] - Non-GAAP gross margin was 68%, down approximately 70 basis points year-over-year, while testing ASP was approximately $2,900 [34][32] Business Line Data and Key Metrics Changes - Decipher Prostate tests delivered 16,500 units, achieving a new quarterly volume record, with growth from both new and existing providers [5][17] - Afirma reported approximately 14,000 test results, with a 14% revenue growth compared to the prior year [21] - Biopharmaceutical and other revenue was $3 million, down 51% year-over-year due to overall spending constraints across the industry [33] Market Data and Key Metrics Changes - The American Cancer Society estimates approximately 300,000 new cases of prostate cancer in 2024, indicating a growing market for Decipher [11] - The company aims for 80% penetration in both Prostate and Fibroid Cancer Molecular Tests, indicating a significant market opportunity [9] Company Strategy and Development Direction - The company is focused on global expansion through a robust IVD strategy and solving new cancer challenges via its diagnostics platform [25][58] - The acquisition of C2i genomics is expected to enhance the company's offerings in Minimal Residual Disease (MRD) testing [12][29] - The company plans to launch its first MRD test for muscle-invasive bladder cancer in the first half of 2026 [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of Decipher, citing strong market penetration and the impact of updated NCCN guidelines [39][49] - The company raised its total revenue guidance for 2024 to $402 million to $410 million, reflecting an improved outlook for its testing business [36] - Management acknowledged challenges in enrollment for the NIGHTINGALE trial but remains optimistic about the market potential for the nasal swab test [27][42] Other Important Information - The company downsized commercial support for the InvisioTest but will continue to offer it to patients facing interstitial lung disease [26] - The updated NCCN guidelines for Decipher Prostate received a level 1b evidence rating, the highest for gene expression tests for prostate cancer [19] Q&A Session Summary Question: Growth rate for Decipher and market penetration - Management indicated that Decipher's growth is driven by market penetration, share gains, and overall market growth, with a 30% year-over-year volume increase and a 36% revenue growth [68] Question: Enrollment slowdown in NIGHTINGALE trial - Management noted that enrollment challenges are typical in large multi-site trials and are not indicative of market interest [42][43] Question: Biopharma-related activities and revenue potential - Management acknowledged a pipeline of new customers and projects in biopharma, indicating potential for future growth despite current constraints [77] Question: Demand for Afirma GRID and clinician interest - Management reported significant interest from academic settings and rural communities, indicating a positive trend for Afirma [81] Question: Medicare reimbursement impact on Afirma - Management clarified that while TERT testing provides some benefit, it is not expected to significantly uplift ASP due to limited patient selection [83] Question: Development strategy for MRD testing - Management expressed confidence in launching the MRD test for muscle-invasive bladder cancer by early 2026, emphasizing control over the necessary assessments [97]

| --- | --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q1 2024 Business and Financial Presentation | | | | | | | | | | | | May 7, 2024 | | | | | Forward-looking statements and non-GAAP information Total Revenue by Quarter1 $72.4 $81.7 $82.0 $90.4 $90.3 $3.9 $4.0 $4.0 $3.7 $3.5 $6.1 $4.6 $4.1 $4.1 $3.0 $82.4 $90.3 $90.1 $98.2 $96.8 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Testi ...

"We had a strong start to 2024, driven by robust growth from our market-leading Decipher Prostate and Afirma tests. We executed upon our strategies to further penetrate these markets by expanding our clinical evidence, and, for Decipher, securing enhanced status in guidelines while also achieving a key commercial reimbursement milestone," said Marc Stapley, Veracyte's chief executive officer. "We also expanded our capabilities into minimal residual disease (MRD) testing by completing our acquisition of C2i ...

Financial Position - As of December 31, 2023, the company had cash and cash equivalents of $216.5 million, consisting of bank deposits and money market funds[507]. - The company held $4.1 million of bank deposits denominated in Euros as of December 31, 2023, which are subject to foreign currency risk[508]. - The company reported cash and cash equivalents of $216.5 million as of December 31, 2023, compared to $154.2 million in 2022, indicating improved liquidity[524]. - Cash, cash equivalents, and restricted cash increased to $217.3 million at the end of 2023, up from $155.0 million in 2022, representing a 39.7% increase[537]. - The total assets decreased to $1.115 billion in 2023 from $1.156 billion in 2022, reflecting a reduction in intangible assets[524]. - The company’s total stockholders' equity decreased to $1.044 billion in 2023 from $1.075 billion in 2022, reflecting the impact of net losses[524]. - The company’s accumulated deficit increased to $468.1 million in 2023 from $393.7 million in 2022, indicating ongoing financial challenges[524]. - The fair value of money market funds decreased significantly from $131.2 million in 2022 to $1.4 million in 2023[617]. - The Company had no short-term investments as of December 31, 2023, compared to $24.6 million in U.S. treasury bills in 2022[621]. Revenue and Losses - Total revenue for 2023 was $361.1 million, up 21.7% from $296.5 million in 2022[526]. - The company’s testing revenue for the year ended December 31, 2023, was approximately $326.5 million, an increase of 30.3% from $250.5 million in 2022[526]. - The net loss for 2023 was $74.4 million, compared to a net loss of $36.6 million in 2022, reflecting a significant increase in losses[526]. - Operating expenses for 2023 totaled $446.8 million, a rise of 32.4% from $337.6 million in 2022[526]. - Revenue from biopharmaceutical and other revenue for the year ended December 31, 2023 was $18.9 million, a decrease from $33.4 million in 2022[580]. - The company recorded a comprehensive loss, which includes net loss and foreign currency translation adjustments, reflecting the overall financial performance[594]. Expenses and Costs - Research and development expenses increased to $57.3 million in 2023, up 41.2% from $40.6 million in 2022[526]. - The company reported stock-based compensation expenses of $33.1 million in 2023, up from $26.7 million in 2022[535]. - The Company recorded impairment charges of $66.9 million and $3.3 million for the years ended December 31, 2023 and 2022, respectively[565]. - The company incurred an impairment loss of $68.3 million in 2023, compared to $3.3 million in 2022[535]. - The Company’s cost of testing revenue includes laboratory expenses, sample collection expenses, and compensation expenses, among others[581]. Legal and Compliance Risks - The company expects to incur significant legal, accounting, and compliance costs as a public company, which could harm its operating results[384]. - The company is required to maintain internal control over financial reporting and report any material weaknesses, which could negatively impact investor confidence[385]. - The company may face reputational damage if it fails to meet environmental, social, and governance (ESG) expectations set by investors and regulators[387]. Stock and Equity - The company has a total of 6,570,076 common stock equivalents excluded from diluted net loss per common share for 2023 due to their anti-dilutive effect[600]. - As of December 31, 2023, the total outstanding and unvested stock options increased to 6,318,389, with a weighted average exercise price of $22.95[638]. - The intrinsic value of stock options exercised in 2023 was $9.0 million, compared to $6.3 million in 2022[640]. - The total stock-based compensation expense for 2023 was $33.141 million, up from $26.734 million in 2022, reflecting increases across all expense categories[651]. Future Projections and Plans - The company plans to continue focusing on expanding its testing services and improving reimbursement rates based on historical data and anticipated trends[526]. - The estimated future aggregate amortization expense for finite-lived intangible assets is projected to be $81.3 million as of December 31, 2023[613]. Tax and Deferred Tax Assets - The Company established a valuation allowance against its net deferred tax assets, which increased by $14.5 million in 2023, $4.8 million in 2022, and $41.9 million in 2021[659]. - The Company had gross deferred tax assets of $162,835 thousand and net deferred tax assets of $22,915 thousand as of December 31, 2023[657]. - The Company had unrecognized tax benefits of $5.7 million as of December 31, 2023, with no anticipated significant changes in the next 12 months[665]. Acquisitions - The company completed the acquisition of C2i Genomics, Inc. in February 2024, enhancing its capabilities in minimal residual disease detection[544]. - The Company completed the acquisition of C2i for a purchase price of $70.0 million on February 5, 2024, with potential milestone payments of up to $25.0 million based on future performance[676]. - The HalioDx acquisition in 2021 was valued at $319.6 million, enhancing the company's capabilities in immuno-oncology[601]. - The Decipher Biosciences acquisition in 2021 was approximately $594.7 million, aimed at advancing diagnostic tests for urologic cancers[602].

Veracyte, Inc. (NASDAQ:VCYT) Q4 2023 Earnings Conference Call February 22, 2024 4:30 PM ET Company Participants Shayla Gorman - Senior Director of Investor Relations Marc Stapley - Chief Executive Officer Rebecca Chambers - Chief Financial Officer Conference Call Participants Sung Ji Nam - Scotiabank Dustin Scaringe - William Blair Matt Sykes - Goldman Sachs Puneet Souda - Leerink Partners Operator Good day, and thank you for standing by. Welcome to the Veracyte Fourth Quarter and Full Year 2023 Financial R ...

| --- | --- | --- | --- | --- | --- | --- | |------------------------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Q4 2023 Business and Financial Presentation | | | | | | | | February 22, 2024 | | | | | | | This presentation contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with re ...

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, 2023 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 ...

Veracyte, Inc. (NASDAQ:VCYT) Q3 2023 Earnings Conference Call November 7, 2023 4:30 PM ET Company Participants Tristan Ribar – Vice President-Finance Marc Stapley – Chief Executive Officer Rebecca Chambers – Chief Financial Officer Conference Call Participants Puneet Souda – Leerink Sung Ji Nam – Scotiabank Mason Carrico – Stephens Inc Operator Good day, and thank you for standing by. Welcome to the Veracyte Third Quarter 2023 Financial Results Webcast. At this time all participants are in a listen-only mod ...

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, 2023 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) Delaware 20-5455398 (State or other ...

Veracyte, Inc. (NASDAQ:VCYT) Q2 2023 Earnings Conference Call August 8, 2023 4:30 PM ET Company Participants Shayla Gorman - Director, IR Marc Stapley - CEO & Director Rebecca Chambers - EVP & CFO Conference Call Participants Matthew Sykes - Goldman Sachs Group Puneet Souda - Leerink Partners Sung Ji Nam - Scotiabank Jacob Krahenbuhl - Stephens Inc. Joseph Conway - Needham & Company Operator Good day, and thank you for standing by. Welcome to the Veracyte Second Quarter 2023 Financial Results Conference Cal ...