Neurex Corp.

SOUTH SAN FRANCISCO, Calif.--( BUSINESS WIRE )--Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2024. “Our exceptional second quarter results are a testament to the strength and robustness of Decipher and Afirma,” said Marc Stapley, Veracyte’s chief executive officer. “With both tests clearly gaining share in their respective markets and plenty of headroom for durable future expansion, our confidence in their long-term prospects continues to grow. Meanwhile, our positive cash generation and class-leading profitability profile are fueling a portfolio of tests that are poised to drive meaningful advances in precision medicine.” 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 $114.4 million, an increase of 27% compared to $90.3 million reported in the second quarter of 2023. Testing revenue was $107.0 million, an increase of 31% compared to $81.7 million in the second quarter of 2023, driven by the strong performance of our Decipher Prostate and Afirma tests. Product revenue was $3.9 million, a decrease of 3% compared to $4.0 million in the second quarter of 2023. Biopharmaceutical and other revenue was $3.6 million, a decrease of 22% compared to $4.6 million in the second quarter of 2023. 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 $73.3 million for the second quarter of 2024. Non-GAAP operating expenses, which excludes amortization of acquired intangible assets, stock-based compensation, other acquisition related expenses, and other restructuring costs, grew 14% to $59.0 million compared to $51.7 million in the second quarter of 2023. Net income for the second quarter of 2024 was $5.7 million, an improvement of 168% compared to the second quarter of 2023. Basic and diluted net earnings per common share was $0.07, an improvement of $0.19 compared to the second quarter of 2023. Non-GAAP diluted net earnings per common share was $0.30, an improvement of $0.18 compared to the second quarter of 2023. Net cash provided by operating activities in the first six months of 2024 was $20.6 million, an improvement of $6.1 million compared to the same period in 2023. Adjusted EBITDA for the second quarter of 2024 was $24.0 million, an improvement of 118% compared to the second quarter of 2023, representing 21% of revenue compared to 12% of revenue respectively. 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 $432 million to $438 million, representing year-over-year growth of 20% to 21% and testing revenue growth of approximately 25%. This guidance range represents an increase compared to prior guidance of $402 million to $410 million. In addition, the company now expects cash, cash equivalents and short-term investments at the end of the year to be $260 million to $270 million compared to prior guidance of $236 million to $240 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/p5tuszv4 . 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/BIbb7f6b70b4ce4820b6391059390d6139 About Veracyte Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit www.veracyte.com or follow us on LinkedIn or X (Twitter) . 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 the United States. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “will,” “enable,” “positioned,” “offers,” “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; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies and our facilities in France; the impact of foreign currency fluctuations, increasing interest rates, inflation, the U.S. election and turmoil in the global banking and finance system; the ongoing conflict in the Middle East 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 29, 2024, and our Quarterly Report on Form 10-Q filed for the three months ended June 30, 2024, to be filed August 7, 2024, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at 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, C2i Genomics, and Afirma are registered trademarks of Veracyte, Inc., and its subsidiaries in the U.S. and selected countries. 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 Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from certain of our non-GAAP financial measures. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial 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. VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) Three Months Ended June 30, Six Months Ended June 30, 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 June 30, Six Months Ended June 30, 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 VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 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 ) VERACYTE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 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 Goodwill 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 the Securities and Exchange Commission dated February 29, 2024. VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Six Months Ended June 30, 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) June 30, December 31, 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 VERACYTE, INC. RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 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 ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. 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 ended June 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 ended June 30, 2023, includes $1.3 million related to impairment charges. VERACYTE, INC. RECONCILIATION OF U.S. GAAP to NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands) Three Months Ended June 30, Six Months Ended June 30, 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 ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. For the six months ended June 30, 2024, adjustments consist of transaction related expenses associated with the acquisition of C2i Genomics. For the six months ended June 30, 2023, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx. 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 ended June 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 ended June 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.

Grew total revenue to $96.8 million, an increase of 17% Grew testing revenue by 25% Conference call and webcast today at 4:30 p.m. ET SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the first quarter ended March 31, 2024. “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 Genomics and initiating development of our first test using their novel, whole-genome approach.” Key Business Highlights Increased first quarter total revenue by 17% to $96.8 million, compared to the first quarter of 2023. Grew total test volume to 33,424, an increase of 16% compared to the first quarter of 2023. Received the highest-level rating among gene expression tests for the Decipher Prostate Genomic Classifier in updated NCCN* prostate cancer guidelines. Expanded clinical evidence for the Decipher Prostate test with a study published in JCO Precision Oncology showing that it is prognostic for progression in prostate cancer patients undergoing Active Surveillance. Demonstrated the power of the Veracyte Diagnostic Platform to expand evidence with the presentation of 14 abstracts at the American Urological Association’s 2024 Annual Meeting, including podium presentations for our research-use-only Decipher GRID offerings in prostate cancer and bladder cancer. Contracted with one of the largest commercial payers in the U.S., making the Decipher Prostate test an in-network offering for its close to 30 million members. Received Medicare coverage for our Afirma TERT promoter gene mutation test, following publication of analytical validity data for the test in the Journal of Endocrinology & Metabolism. Completed the acquisition of C2i Genomics and initiated development of an MRD test for muscle-invasive bladder cancer. Ended the first quarter with $209.2 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. First Quarter 2024 Financial Results Total revenue for the first quarter of 2024 was $96.8 million, an increase of 17% compared to $82.4 million reported in the first quarter of 2023. Testing revenue was $90.3 million, an increase of 25% compared to $72.4 million in the first quarter of 2023, driven primarily by the strong performance of our Decipher Prostate and Afirma tests. Product revenue was $3.5 million, a decrease of 9% compared to $3.9 million in the first quarter of 2023. Biopharmaceutical and other revenue was $3.0 million, a decrease of 51% compared to $6.1 million in the first quarter of 2023. Total gross margin for the first quarter of 2024, including the amortization of acquired intangible assets, was 65%, compared to 62% in the first quarter of 2023. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 68%, compared to 68% in the first quarter of 2023. Operating expenses, excluding cost of revenue, were $67.1 million. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets, other acquisition related expenses and other restructuring costs, grew 6% to $61.6 million compared to $58.1 million in the first quarter of 2023. Net loss for the first quarter of 2024 was $1.9 million, an improvement of 77% compared to the first quarter of 2023. Basic and diluted net loss per common share was $0.02, an improvement of $0.09 compared to the first quarter of 2023. Net cash used in operating activities in the first three months of 2024 was $9.0 million inclusive of the typical annual bonus payments and payroll tax reset in the first quarter, as well as C2i acquisition-related expenses, an increase of $6.8 million compared to the same period in 2023. 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 $402 million to $410 million, representing year-over-year growth of 11% to 14% and testing growth of 15% to 18%. This guidance range represents an increase compared to prior guidance of $394 million to $402 million. In addition, the company now expects cash, cash equivalents and short-term investments at the end of the year to be $236 million to $240 million compared to prior guidance of $230 million to $234 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: . 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 . The conference call dial-in can be accessed by registering at the following link: About Veracyte Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit or follow us on LinkedIn or X (Twitter). 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; statements regarding the expected benefits of the acquisition of C2i Genomics; and our intentions with respect to our tests and products, for use in diagnosing and treating diseases, in and outside of the United States. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “will,” “enable,” “positioned,” “offers,” “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; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies and energy supply, as well as our facilities in France; the impact of foreign currency fluctuations, increasing interest rates, inflation, potential government shutdowns and turmoil in the global banking and finance system; 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 29, 2024, and our Quarterly Report on Form 10-Q filed for the three months ended March 31, 2024, to be filed May 8, 2024, as well as in other documents that we may time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at 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, C2i Genomics, and Afirma are registered trademarks of Veracyte, Inc., and its subsidiaries in the U.S. and selected countries. 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, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related HalioDx intangible assets and certain costs related to restructuring 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. VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except share and per share amounts) Three Months Ended March 31, 2024 2023 Revenue: Testing revenue $ 90,303 $ 72,396 Product revenue 3,537 3,892 Biopharmaceutical and other revenue 3,004 6,134 Total revenue 96,844 82,422 Operating expenses (1): Cost of testing revenue 25,979 19,648 Cost of product revenue 2,644 2,162 Cost of biopharmaceutical and other revenue 2,838 4,419 Research and development 15,965 12,769 Selling and marketing 23,782 26,130 General and administrative 26,210 21,053 Impairment of long-lived assets 429 1,410 Intangible asset amortization 3,653 5,329 Total operating expenses 101,500 92,920 Loss from operations (4,656 ) (10,498 ) Other income, net 2,748 2,407 Loss before income taxes (1,908 ) (8,091 ) Income tax benefit (44 ) — Net loss $ (1,864 ) $ (8,091 ) Net loss per common share, basic and diluted $ (0.02 ) $ (0.11 ) Shares used to compute net loss per common share, basic and diluted 74,759,789 72,175,457 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 March 31, 2024 2023 Cost of revenue $ 487 $ 386 Research and development 1,763 1,256 Selling and marketing 1,093 2,112 General and administrative 4,676 4,347 Total stock-based compensation expense $ 8,019 $ 8,101 VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Net loss $ (1,864 ) $ (8,091 ) Other comprehensive income (loss): Change in currency translation adjustments (4,889 ) 4,480 Net comprehensive loss $ (6,753 ) $ (3,611 ) VERACYTE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) March 31, December 31, 2024 2023 (Unaudited) (See Note 1) Assets Current assets: Cash and cash equivalents $ 209,188 $ 216,454 Accounts receivable 46,665 40,378 Supplies and inventory 18,328 16,128 Prepaid expenses and other current assets 16,237 12,661 Total current assets 290,418 285,621 Property, plant and equipment, net 21,566 20,584 Right-of-use assets, operating leases 11,167 10,277 Intangible assets, net 116,348 88,593 Goodwill 753,853 702,984 Restricted cash 1,082 876 Other assets 5,639 5,971 Total assets $ 1,200,073 $ 1,114,906 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 12,152 $ 12,943 Accrued liabilities 30,293 38,427 Current portion of deferred revenue 2,602 2,008 Current portion of acquisition-related contingent consideration 6,934 2,657 Current portion of operating lease liabilities 5,982 5,105 Current portion of other liabilities 89 101 Total current liabilities 58,052 61,241 Deferred tax liabilities 1,340 734 Acquisition-related contingent consideration, net of current portion 13,446 518 Operating lease liabilities, net of current portion 8,058 7,525 Other liabilities 528 786 Total liabilities 81,424 70,804 Total stockholders’ equity 1,118,649 1,044,102 Total liabilities and stockholders’ equity $ 1,200,073 $ 1,114,906 1. 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 the Securities and Exchange Commission dated February 29, 2024. VERACYTE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands) Three Months Ended March 31, 2024 2023 Operating activities Net loss $ (1,864 ) $ (8,091 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 5,590 6,670 Loss on disposal of property, plant and equipment 30 121 Stock-based compensation 8,019 7,985 Deferred income taxes (120 ) — Noncash lease expense 1,139 903 Revaluation of acquisition-related contingent consideration 5 (485 ) Effect of foreign currency on operations 637 (224 ) Impairment loss 429 1,410 Changes in operating assets and liabilities: Accounts receivable (6,459 ) (1,302 ) Supplies and inventory (2,303 ) 1,055 Prepaid expenses and other current assets (2,738 ) (3,064 ) Other assets 259 (491 ) Operating lease liabilities (1,053 ) (950 ) Accounts payable (1,544 ) 2,012 Accrued liabilities and deferred revenue (8,993 ) (7,721 ) Net cash used in operating activities (8,966 ) (2,172 ) 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 (2,134 ) (993 ) Net cash provided by investing activities 2,878 24,080 Financing activities Payment of taxes on vested restricted stock units (3,832 ) (2,277 ) Proceeds from the exercise of common stock options and employee stock purchases 2,968 3,962 Net cash (used in) provided by financing activities (864 ) 1,685 Increase (decrease) in cash, cash equivalents and restricted cash (6,952 ) 23,593 Effect of foreign currency on cash, cash equivalents and restricted cash (108 ) 50 Net increase (decrease) in cash, cash equivalents and restricted cash (7,060 ) 23,643 Cash, cash equivalents and restricted cash at beginning of period 217,330 154,996 Cash, cash equivalents and restricted cash at end of period $ 210,270 $ 178,639 CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Unaudited) (In thousands) March 31, December 31, 2024 2023 Cash and cash equivalents $ 209,188 $ 216,454 Restricted cash 1,082 876 Total cash, cash equivalents and restricted cash $ 210,270 $ 217,330 Reconciliation of U.S. GAAP to Non-GAAP Financial Measures (Unaudited) (In thousands) Identified Expenses GAAP Acquisition Related Expenses (1) Intangible Assets Amortization Expense Other (4) Total Non-GAAP Measure Three Months Ended March 31, 2024 Total revenue $ 96,844 $ — $ — $ — $ 96,844 Cost of testing revenue 25,979 60 — 6 25,913 Cost of product revenue 2,644 — — — 2,644 Cost of biopharmaceutical and other revenue 2,838 — — — 2,838 Intangible asset amortization (2) 2,915 — 2,915 — — Gross margin $ 62,468 60 2,915 6 65,449 Gross margin % 65 % 68 % Research and development 15,965 461 — 278 15,226 Selling and marketing 23,782 (1,141 ) — 900 24,023 General and administrative 26,210 3,578 — 266 22,366 Impairment of long-lived assets 429 429 — — — Intangible asset amortization 738 — 738 — — Total operating expenses excluding cost of revenue (3) 67,124 3,327 738 1,444 61,615 Loss from operations $ (4,656 ) $ 3,387 $ 3,653 $ 1,450 $ 3,834 Three Months Ended March 31, 2023 Total revenue $ 82,422 $ — $ — $ — $ 82,422 Cost of testing revenue 19,648 83 — — 19,565 Cost of product revenue 2,162 — — — 2,162 Cost of biopharmaceutical and other revenue 4,419 43 — — 4,376 Intangible asset amortization (2) 4,804 — 4,804 — — Gross margin $ 51,389 126 4,804 — 56,319 Gross margin % 62 % 68 % Research and development 12,769 24 — — 12,745 Selling and marketing 26,130 890 — — 25,240 General and administrative 21,053 1,036 — (66 ) 20,083 Impairment of long-lived assets 1,410 — — 1,410 — Intangible asset amortization 525 — 525 — — Total operating expenses excluding cost of revenue (3) 61,887 1,950 525 1,344 58,068 Loss from operations $ (10,498 ) $ 2,076 $ 5,329 $ 1,344 $ (1,749 ) 1. Includes transaction related expenses as well as post-combination compensation expenses. For the three months ended March 31, 2024, adjustments consist primarily of transaction related expenses associated with the acquisition of C2i Genomics ($4.6 million) and reversals of accrued compensation associated with the acquisition of HalioDx ($1.2 million). For the three months ended March 31, 2023, 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 ($31.5 million and $26.2 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($2.9 million and $4.8 million) for the three months ended March 31, 2024 and for the three months ended March 31, 2023 respectively. 4. For the three months ended March 31, 2024, includes $1.4 million expense related to restructuring costs associated with portfolio prioritization including the reduction in Envisia commercial support. For the three months ended March 31, 2023, includes $1.3 million related to impairment charges.

Extends Veracyte’s novel diagnostics platform with whole-genome minimal residual disease capabilities Expands company’s presence across the cancer care continuum SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced it has completed its acquisition of C2i Genomics, Inc., adding whole-genome minimal residual disease (MRD) capabilities to its novel diagnostics platform and expanding the company’s ability to serve patients across the cancer care continuum. “Bringing C2i Genomics’ technology and team into Veracyte will allow us to make significant advances in our vision to transform cancer care for patients all over the world,” said Marc Stapley, Veracyte’s chief executive officer. “C2i’s novel artificial intelligence-driven, whole-genome MRD platform will enable us to expand the value we deliver to clinicians and their patients, beginning with early cancer diagnosis and risk assessment, and now moving further along the patient journey into treatment monitoring and disease recurrence testing. C2i’s approach to MRD will expand the set of data and insights that can follow each patient throughout their care, and will also fuel new innovation.” Veracyte’s first application of C2i Genomics’ technology will be a muscle-invasive bladder cancer MRD test, where the company plans to leverage its strong urology commercial channel and a clear pathway to expected reimbursement. The company plans to develop further MRD tests in several of its focused indications. Transaction Details Under terms of the transaction, Veracyte acquired C2i Genomics for $70 million (subject to customary purchase price adjustments), paid for with 2.7 million Veracyte shares. Veracyte will pay up to an additional $25 million, payable in Veracyte shares or cash at Veracyte’s election, based on the achievement of future performance milestones over the next two years. About Veracyte Veracyte (Nasdaq: VCYT) is a global diagnostics company whose vision is to transform cancer care for patients all over the world. We empower clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Our Veracyte Diagnostics Platform delivers high-performing cancer tests that are fueled by broad genomic and clinical data, deep bioinformatic and AI capabilities, and a powerful evidence-generation engine, which ultimately drives durable reimbursement and guideline inclusion for our tests, along with new insights to support continued innovation and pipeline development. For more information, please visit 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 acquisition of C2i Genomics and statements regarding the expected benefits of the acquisition, including but not limited to: our expectation that C2i Genomics’ technology and team will allow us to make significant advances in our vision to transform cancer care for patients all over the world; that C2i’s novel artificial intelligence-driven, whole genome MRD platform will enable us to move further along the patient journey; that C2i’s approach to MRD will expand the set of data and insights that can follow each patient throughout their care and help fuel new innovations; and our intentions with respect to our tests and products, for use in diagnosing and treating diseases, in and outside of the United States. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “will,” “enable,” “positioned,” “offers,” “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; our ability to execute on our business strategies relating to the C2i Genomics acquisition and realize expected benefits and synergies; the retention of certain of C2i Genomics’ employees and our ability to successfully integrate the C2i Genomics business; the risk of stockholder litigation in connection with the transaction; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine on European economies and energy supply, as well as our facilities in France; the impact of other regional conflicts including in the Middle East; the impact of foreign currency fluctuations, increasing interest rates, inflation, potential government shutdowns and turmoil in the global banking and finance system; 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 March 1, 2023, and our Quarterly Report on Form 10-Q filed for the three months ended September 30, 2023, filed on November 8, 2023. Copies of these documents, when available, may be found in the Investors section of our website at 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. 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, and C2i Genomics are registered trademarks of Veracyte, Inc., and its subsidiaries in the U.S. and selected countries.