Veracyte(VCYT) - 2024 Q4 - Annual Results

Revenue Growth - Fourth quarter total revenue increased by 21% to $118.6 million, with testing revenue growing by 24% to$ 112.2 million[1][4][5] - Full year total revenue rose by 23% to $445.8 million, while testing revenue increased by 28% to$ 419.0 million[9][10] - Decipher revenue grew by 44% in Q4 and 43% for the full year, while Afirma revenue increased by 4% in Q4 and 14% for the full year[4][9] - Total volume of tests conducted in Q4 increased by 22% to 41,271 tests, with testing volume for the full year rising by 20% to 152,750 tests[4][9] - Total revenue for the three months ended December 31, 2024, was $118,632,000, representing a 20.8% increase from$ 98,199,000 in the same period of 2023[28] - Testing revenue increased to $112,152,000 for the three months ended December 31, 2024, up 24.1% from$ 90,385,000 in the prior year[28] Profitability - Net income for Q4 was $5.1 million, representing 4.3% of revenue, and for the full year, net income was$ 24.1 million, or 5.4% of revenue[7][10] - Adjusted EBITDA for Q4 was $26.1 million, or 22.0% of revenue, and for the full year, it was$ 91.9 million, or 20.6% of revenue[8][12] - GAAP net income for Q4 2024 was $5.113 million, compared to a net loss of$ 28.293 million in Q4 2023, representing a significant turnaround[41] - Non-GAAP net income for the twelve months ended December 31, 2024, was $92.968 million, compared to$ 43.293 million in 2023, showing strong growth[41] Expenses and Costs - Operating expenses for the twelve months ended December 31, 2024, totaled $282,003,000, down from$ 315,479,000 in 2023, a decrease of 10.6%[28] - Total operating expenses for Q4 2024 were $74.579 million, down from$ 100.295 million in Q4 2023, indicating a reduction in costs[39] - Stock-based compensation expense for the twelve months ended December 31, 2024, was $36,249,000, compared to$ 33,489,000 in 2023, showing an increase of 8.3%[29] - The company reported a stock-based compensation expense of $9.629 million for Q4 2024, compared to$ 7.607 million in Q4 2023, indicating increased equity compensation[41] Future Guidance - The company expects 2025 testing revenue to be between $470 million and$ 480 million, indicating a year-over-year growth of 12% to 15%[16] - Adjusted EBITDA as a percentage of revenue is projected to be approximately 21.6% in 2025, up from 20.6% in 2024[17] - The company plans to provide total revenue guidance for 2025 once there is more clarity on the impact of its Marseille operations[16] Asset and Cash Position - Cash and cash equivalents increased to $239,087,000 as of December 31, 2024, compared to$ 216,454,000 at the end of 2023[36] - Total assets grew to $1,300,035,000 as of December 31, 2024, up from$ 1,114,906,000 in 2023, indicating a 16.6% increase[32] Acquisitions and Investments - The acquisition of C2i contributed to the company's growth strategy, with a cash outflow of $5,012,000 for the acquisition net of cash acquired[34] - The acquisition-related expenses for the twelve months ended December 31, 2024, included$ 6.631 million, primarily related to the acquisition of C2i Genomics[41] - The company is evaluating its operations in Marseille, France, and considering potential divestiture options for its French subsidiary[13][14] Research and Development - Research and development expenses for Q4 2024 were $19.290 million, slightly up from$ 18.673 million in Q4 2023, reflecting continued investment in innovation[39] Impairment and Restructuring - The twelve months ended December 31, 2024, included significant expenses related to the impairment charge associated with HalioDx, totaling $2.7 million for Q4 2024 and$ 32.0 million for Q4 2023[3] - For the twelve months ended December 31, 2024, restructuring costs were incurred due to a reduction in the Biopharmaceutical and Other segment[3]