Grew fourth quarter total revenue to $118.6
million, an increase of 21% Grew fourth quarter testing revenue to
$112.2 million, an increase of 24%
Conference call and webcast today at 4:30 p.m.
ET
Veracyte, Inc. (Nasdaq: VCYT) today announced financial results
for the fourth quarter and full year ended December 31, 2024.
“I’m incredibly proud of what our team accomplished in 2024,”
said Marc Stapley, Veracyte’s chief executive officer. “We ended
the year with exceptional performance, delivering record revenue in
Q4 and achieving our 10th consecutive quarter of 20% or greater
testing revenue growth. Looking ahead to 2025, we see significant
opportunities for Decipher and Afirma to impact more patients and
drive growth for Veracyte. We are focused on moving forward with
our exciting portfolio of strategic growth drivers while
maintaining the financial discipline that has been core to our
success.”
Key Fourth Quarter 2024 Financial Highlights
For the three-month period ended December 31, 2024, as compared
to the same period in 2023:
- Increased total revenue by 21% to $118.6 million and testing
revenue by 24% to $112.2 million.
- Increased total volume by 22% to 41,271 tests and testing
volume by 25% to 39,107 tests.
- Grew Decipher revenue by 44% and Afirma revenue by 4%.
- Grew Decipher volume by 45% to more than 22,400 tests and
Afirma volume by 8% to more than 16,300 tests.
- Increased net income to $5.1 million, or 4.3% of revenue, and
delivered adjusted EBITDA of $26.1 million, or 22.0% of
revenue.
- Generated $24.5 million of cash from operations.
Key Full Year 2024 Financial Highlights
For the twelve-month period ended December 31, 2024, as compared
to the same period in 2023:
- Increased total revenue by 23% to $445.8 million and testing
revenue by 28% to $419.0 million.
- Increased total volume by 20% to 152,750 tests and testing
volume by 23% to 142,925 tests.
- Grew Decipher revenue by 43% and Afirma revenue by 14%.
- Grew Decipher volume by 36% to more than 80,000 tests and
Afirma volume by 12% to more than 60,000 tests.
- Increased net income to $24.1 million, or 5.4% of revenue, and
delivered adjusted EBITDA of $91.9 million, or 20.6% of
revenue.
- Generated $75.1 million of cash from operations to end the year
with $289.4 million of cash, cash equivalents and short-term
investments.
Key Business Highlights
- Through Level I evidence for the 22-Gene Genomic Classifier
(GC) (Decipher), secured its position as the only gene expression
test included in V1.2025 of the NCCN Clinical Practice Guidelines
in Oncology (NCCN Guidelines®) for Prostate Cancer published in
December 2024.1
- Received approval from Molecular Diagnostic Services Program
(MolDx) for the technical assessment submission for Decipher for
use in the metastatic population.
- Announced 17 Decipher-focused abstracts to be presented at the
2025 ASCO GU Symposium demonstrating the power of the Veracyte
diagnostics platform and Veracyte’s commitment to continued
leadership in supporting clinical research around urologic
cancers.
- Published our 2024 Environmental, Social and Governance
Report.
1
NCCN = National Comprehensive
Cancer Network® (NCCN®). Referenced with permission from the NCCN
Clinical Practice Guidelines in Oncology (NCCN Guidelines®) for
Prostate Cancer v.1.2025. © National Comprehensive Cancer Network,
Inc. 2024. All rights reserved. Accessed February 12, 2025. To view
the most recent and complete version of the guideline, go online to
NCCN.org. 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.
Fourth Quarter 2024 Financial Results
Total revenue for the fourth quarter of 2024 was $118.6 million,
an increase of 21% compared to $98.2 million reported in the fourth
quarter of 2023. Testing revenue was $112.2 million, an increase of
24% compared to $90.4 million in the fourth quarter of 2023, driven
by the strong performance of our Decipher and Afirma tests. Product
revenue was $3.0 million, a decrease of 18% compared to $3.7
million in the fourth quarter of 2023. Biopharmaceutical and other
revenue was $3.5 million, a decrease of 17% compared to $4.1
million in the fourth quarter of 2023.
Total gross margin for the fourth quarter of 2024 was 66.4%,
compared to 66.0% in the fourth quarter of 2023. Non-GAAP gross
margin was 69.3%, compared to 70.6% in the fourth quarter of
2023.
Operating expenses were $74.6 million for the fourth quarter of
2024. Non-GAAP operating expenses were $57.9 million, flat compared
to $57.9 million in the fourth quarter of 2023.
Net income for the fourth quarter of 2024 was $5.1 million, an
improvement of 118% compared to the fourth quarter of 2023,
representing 4.3% of revenue compared to (28.8%) in the same period
in 2023. Diluted net earnings per common share was $0.06, an
improvement of $0.45 compared to the fourth quarter of 2023.
Non-GAAP diluted net earnings per common share was $0.36, an
improvement of $0.15 compared to the fourth quarter of 2023. Net
cash provided by operating activities in the fourth quarter of 2024
was $24.5 million, an improvement of $9.0 million compared to the
same period in 2023.
Adjusted EBITDA for the fourth quarter of 2024 was $26.1
million, an improvement of 76% compared to the fourth quarter of
2023, representing 22.0% of revenue compared to 15.1% of revenue in
the same period of 2023.
Full Year 2024 Financial Results
Total revenue for 2024 was $445.8 million, an increase of 23%
compared to $361.1 million in 2023. Testing revenue was $419.0
million, an increase of 28% compared to $326.5 million in 2023,
driven by the strong performance of our Decipher and Afirma tests.
Product revenue was $13.7 million, a decrease of 12% compared to
$15.6 million in 2023. Biopharmaceutical and other revenue was
$13.2 million, a decrease of 30% compared to $18.9 million in
2023.
Total gross margin for the full year 2024 was 66.9%, compared to
63.6% in 2023. Non-GAAP gross margin was 70.0%, compared to 69.3%
in 2023.
Operating expenses were $282.0 million for the full year 2024.
Non-GAAP operating expenses grew 7% to $227.6 million compared to
$212.5 million in 2023.
Net income for the full year 2024 was $24.1 million, an
improvement of 132% compared to 2023, representing 5.4% of revenue
compared to (20.6%) in 2023. Diluted net earnings per common share
was $0.31, an improvement of $1.33 compared to 2023. Non-GAAP
diluted net earnings per common share was $1.19, an improvement of
$0.61 compared to 2023. Net cash provided by operating activities
in 2024 was $75.1 million, an improvement of $30.9 million compared
to 2023.
Adjusted EBITDA for the full year 2024 was $91.9 million, an
improvement of 102% compared to 2023, representing 20.6% of revenue
compared to 12.6% of revenue 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."
Update on Marseille Operations
Veracyte is evaluating its ownership and operations of the
company’s French subsidiary, Veracyte SAS, whose business is
located in Marseille, France and includes Veracyte’s
immune-oncology biopharma business, contract development and
manufacturing, and support for Veracyte’s IVD development and
manufacturing. Veracyte recently notified Veracyte SAS that, as
sole shareholder of Veracyte SAS, it is considering no longer
funding the French entity. Accordingly, Veracyte SAS will engage
with its works council, as is required by French law, over the next
few months.
Seeking external buyer(s) for a potential divestiture of all or
part of the French entity’s activities is an option that is
actively being explored. Without Veracyte Inc.’s continued funding
or identification of a buyer for all or part of the Veracyte SAS
assets, Veracyte SAS may be required to begin bankruptcy
proceedings following its works council consultation period.
Management will provide further details on this process and its
potential impact on Veracyte’s 2025 financial outlook during the
conference call this afternoon.
2025 Financial Outlook
The company expects 2025 testing revenue to be in the range of
$470 million to $480 million, or 12% to 15% year-over-year growth.
Adjusting for the impact of the paused Envisia test, the guidance
implies testing revenue growth of 14% to 16%. Given the number of
variables impacting its Marseille, France operations, the company
is not providing total company revenue guidance at this time and
expects to provide its total revenue outlook for 2025 once there is
more clarity on the timing and impact of the process underway.
The company also expects adjusted EBITDA as a percentage of
revenue in 2025 to be approximately 21.6% compared to 20.6% in
2024.
The company is unable to provide a quantitative reconciliation
of expected adjusted EBITDA as a percentage of revenue to the most
directly comparable forward-looking GAAP measure, without
unreasonable effort, because of the inherent difficulty in
accurately forecasting the occurrence and financial impact of the
various adjusting items necessary for such reconciliations that
have not yet occurred, that are dependent on various factors, are
out of the company’s control, or that cannot be reasonably
predicted. Such adjustments include, but are not limited to,
acquisition related expenses, and other adjustments. Any associated
estimate of these items and their impact on GAAP performance for
the guidance period could vary materially. For more information on
the non-GAAP financial measures, please refer to the section titled
“Note Regarding Use of Non-GAAP Financial Measures” at the end of
this press release.
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/8em9yd38.
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/BId0a04e7e33824346ad0b7e5eb4eb2525.
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 our Marseille, France operations; 2025 and 2026
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,” “could,” “would,” “will,” “enable,” “positioned,” “offers,”
“designed,” “ultimately,” “strategic,” “outlook,” “guidance” 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, volatile interest rates, inflation, the new
U.S. administration and turmoil in the global banking and finance
system; the ongoing conflicts in Russia and Ukraine and 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 subsequent Quarterly Reports on Form 10-Q, 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, adjusted EBITDA as a
percentage of revenue, non-GAAP net income, non-GAAP earnings per
share (EPS) and non-GAAP weighted average shares outstanding. 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, including similarly titled measures.
We compute these non-GAAP measures by adjusting the applicable
GAAP measure to remove the impact of certain recurring and
non-recurring charges and gains and to adjust for the impact of
income tax items related to such adjustments to our GAAP financial
statements. In particular, 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 all of our non-GAAP financial measures, as well
as depreciation and income tax items from our adjusted EBITDA and
adjusted EBITDA as a percentage of revenue. 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,
together with its supplemental non‐GAAP information and the
reconciliation between these presentations. See “Reconciliation of
U.S. GAAP to Non-GAAP Financial Measures” for a reconciliation of
each non-GAAP measure presented to the comparable GAAP financial
measure.
VERACYTE, INC.
CONDENSED CONSOLIDATED STATEMENTS
OF OPERATIONS
(Unaudited)
(In thousands, except share and
per share amounts)
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Revenue:
Testing revenue
$
112,152
$
90,385
$
418,961
$
326,542
Product revenue
3,019
3,665
13,650
15,588
Biopharmaceutical and other revenue
3,461
4,149
13,153
18,921
Total revenue
118,632
98,199
445,764
361,051
Cost of revenue: (1)
Cost of testing revenue
31,645
24,105
114,573
88,913
Cost of product revenue
2,800
1,753
9,110
8,666
Cost of biopharmaceutical and other
revenue
2,622
3,518
12,384
15,324
Intangible asset amortization - cost of
revenue
2,811
4,035
11,552
18,464
Total cost of revenue
39,878
33,411
147,619
131,367
Gross profit
78,754
64,788
298,145
229,684
Operating expenses: (1)
Research and development
19,290
18,673
69,294
57,305
Selling and marketing
24,824
25,260
95,434
101,490
General and administrative
26,913
23,795
110,610
86,229
Impairment of long-lived assets
2,754
32,039
3,368
68,349
Intangible asset amortization – operating
expenses
798
528
3,297
2,106
Total operating expenses
74,579
100,295
282,003
315,479
Income (loss) from operations
4,175
(35,507
)
16,142
(85,795
)
Other income (loss), net
(732
)
5,035
9,602
9,183
Income (loss) before income taxes
3,443
(30,472
)
25,744
(76,612
)
Income tax provision (benefit)
(1,670
)
(2,179
)
1,606
(2,208
)
Net income (loss)
$
5,113
$
(28,293
)
$
24,138
$
(74,404
)
Earnings (loss) per share:
Basic
$
0.07
$
(0.39
)
$
0.32
$
(1.02
)
Diluted
$
0.06
$
(0.39
)
$
0.31
$
(1.02
)
Shares used to compute earnings (loss) per
common share:
Basic
77,608,924
73,107,059
76,484,759
72,644,487
Diluted
79,905,412
73,107,059
78,163,217
72,644,487
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 December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Cost of revenue
$
641
$
472
$
2,319
$
1,858
Research and development
1,896
1,495
7,511
5,326
Selling and marketing
1,872
2,498
6,897
9,624
General and administrative
5,220
3,142
19,522
16,681
Total stock-based compensation expense
$
9,629
$
7,607
$
36,249
$
33,489
VERACYTE, INC.
CONDENSED CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(In thousands)
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Net income (loss)
$
5,113
$
(28,293
)
$
24,138
$
(74,404
)
Other comprehensive income (loss):
Change in currency translation
adjustments
(14,808
)
3,765
(12,072
)
7,328
Net comprehensive income (loss)
$
(9,695
)
$
(24,528
)
$
12,066
$
(67,076
)
VERACYTE, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands)
December 31,
December 31,
2024
2023
(Unaudited)
(See Note 1)
Assets
Current assets:
Cash and cash equivalents
$
239,087
$
216,454
Short-term investments
50,354
—
Accounts receivable
46,525
40,378
Supplies and inventory
21,750
16,128
Prepaid expenses and other current
assets
14,551
12,661
Total current assets
372,267
285,621
Property, plant and equipment, net
22,953
20,584
Right-of-use assets, operating leases
48,189
10,277
Intangible assets, net
102,301
88,593
Goodwill
745,800
702,984
Restricted cash
1,544
876
Other assets
6,981
5,971
Total assets
$
1,300,035
$
1,114,906
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
8,634
$
12,943
Accrued liabilities
43,826
38,427
Current portion of deferred revenue
1,673
2,008
Current portion of acquisition-related
contingent consideration
16,981
2,657
Current portion of operating lease
liability
7,500
5,105
Current portion of other liabilities
19
101
Total current liabilities
78,633
61,241
Deferred tax liability
1,227
734
Acquisition-related contingent
consideration, net of current portion
561
518
Operating lease liability, net of current
portion
43,237
7,525
Other liabilities
411
786
Total liabilities
124,069
70,804
Total stockholders' equity
1,175,966
1,044,102
Total liabilities and stockholders’
equity
$
1,300,035
$
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)
Twelve Months Ended December
31
2024
2023
Operating activities
Net income (loss)
$
24,138
$
(74,404
)
Adjustments to reconcile net income (loss)
to net cash provided by operating activities:
Depreciation and amortization
23,459
27,188
Loss on disposal of property, plant and
equipment
202
271
Stock-based compensation
36,249
33,141
Deferred income taxes
(233
)
(3,839
)
Noncash lease expense
4,955
4,158
Revaluation of acquisition-related
contingent consideration
2,167
(5,383
)
Impairment loss
3,368
68,349
Effect of foreign currency on
operations
2,110
(1,096
)
Changes in operating assets and
liabilities:
Accounts receivable
(6,405
)
3,887
Supplies and inventory
(5,871
)
(1,694
)
Prepaid expenses and other current
assets
(1,296
)
(458
)
Other assets
(1,576
)
(758
)
Operating lease liabilities
(5,407
)
(4,330
)
Accounts payable
(4,305
)
(134
)
Accrued liabilities and deferred
revenue
3,541
(676
)
Net cash provided by operating
activities
75,096
44,222
Investing activities
Acquisition of C2i, net of cash
acquired
5,012
—
Purchase of short-term investments
(50,000
)
(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
(11,287
)
(9,961
)
Net cash (used in) provided by investing
activities
(56,275
)
15,112
Financing activities
Payment of contingent consideration for
acquisition
(4,500
)
—
Payment of taxes on vested restricted
stock units
(10,589
)
(6,741
)
Proceeds from the exercise of common stock
options and employee stock purchases
19,993
9,578
Net cash provided by financing
activities
4,904
2,837
Increase in cash, cash equivalents and
restricted cash
23,725
62,171
Effect of foreign currency on cash,
cash equivalents and restricted cash
(424
)
163
Net increase in cash, cash equivalents
and restricted cash
23,301
62,334
Cash, cash equivalents and restricted
cash at beginning of period
217,330
154,996
Cash, cash equivalents and restricted
cash at end of period
$
240,631
$
217,330
CASH, CASH EQUIVALENTS AND
RESTRICTED CASH
(Unaudited)
(In thousands)
December 31,
December 31,
2024
2023
Cash and cash equivalents
$
239,087
$
216,454
Restricted cash
1,544
876
Total cash, cash equivalents and
restricted cash
$
240,631
$
217,330
VERACYTE, INC.
RECONCILIATION OF U.S. GAAP to
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands)
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Reconciliation of Non-GAAP Cost of
Revenue:
GAAP cost of testing revenue
$
31,645
$
24,105
$
114,573
$
88,913
Stock-based compensation expense
(562
)
(392
)
(1,973
)
(1,441
)
Acquisition related expenses (1)
—
—
(60
)
(74
)
Other adjustments (2)
—
—
(6
)
—
Non-GAAP cost of testing revenue
$
31,083
$
23,713
$
112,534
$
87,398
GAAP cost of product revenue
$
2,800
$
1,753
$
9,110
$
8,666
Stock-based compensation expense
(1
)
—
(4
)
—
Acquisition related expenses (1)
—
—
—
—
Other adjustments (2)
—
—
—
—
Non-GAAP cost of product revenue
$
2,799
$
1,753
$
9,106
$
8,666
GAAP cost of biopharmaceutical and other
revenue
$
2,622
$
3,518
$
12,384
$
15,324
Stock-based compensation expense
(78
)
(80
)
(342
)
(417
)
Acquisition related expenses (1)
—
—
—
—
Other adjustments (2)
—
—
—
—
Non-GAAP cost of biopharmaceutical and
other revenue
$
2,544
$
3,438
$
12,042
$
14,907
Reconciliation of Non-GAAP Gross
Margin:
GAAP Gross Profit
$
78,754
$
64,788
$
298,145
$
229,684
GAAP Gross Margin
66.4
%
66.0
%
66.9
%
63.6
%
Amortization of intangible assets
2,811
4,035
11,552
18,464
Stock-based compensation expense
641
472
2,319
1,858
Acquisition related expenses (1)
—
—
60
74
Other adjustments (2)
—
—
6
—
Non-GAAP Gross Profit
$
82,206
$
69,295
$
312,082
$
250,080
Non-GAAP Gross Margin
69.3
%
70.6
%
70.0
%
69.3
%
1. Includes transaction-related expenses
and post-combination compensation expenses. For the twelve months
ended December 31, 2024, adjustments consist primarily of
transaction-related expenses associated with the acquisition of C2i
Genomics. For the twelve months ended December 31, 2023,
adjustments consist primarily of post-combination compensation
expenses associated with the acquisition of HalioDx.
2. For the twelve months ended December
31, 2024, adjustments include expense related to restructuring
costs associated with portfolio prioritization.
VERACYTE, INC.
RECONCILIATION OF U.S. GAAP to
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands)
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Reconciliation of Non-GAAP Operating
Expenses:
GAAP research and development
$
19,290
$
18,673
$
69,294
$
57,305
Stock-based compensation expense
(1,896
)
(1,495
)
(7,511
)
(5,326
)
Acquisition related expenses (1)
—
—
62
—
Other adjustments (2)
—
—
(271
)
—
Non-GAAP research and development
$
17,394
$
17,178
$
61,574
$
51,979
GAAP sales and marketing
$
24,824
$
25,260
$
95,434
$
101,490
Stock-based compensation expense
(1,872
)
(2,498
)
(6,897
)
(9,624
)
Acquisition related expenses (1)
—
—
(124
)
(1,366
)
Other adjustments (2)
—
—
(1,087
)
—
Non-GAAP sales and marketing
$
22,952
$
22,762
$
87,326
$
90,500
GAAP general and administrative
$
26,913
$
23,795
$
110,610
$
86,229
Stock-based compensation expense
(5,220
)
(3,142
)
(19,522
)
(16,681
)
Acquisition related expenses (1)
(928
)
(2,718
)
(5,862
)
447
Other adjustments (2)
(3,196
)
—
(6,564
)
66
Non-GAAP general and administrative
$
17,569
$
17,935
$
78,662
$
70,061
GAAP total operating expenses
$
74,579
$
100,295
$
282,003
$
315,479
Amortization of intangible assets
(798
)
(528
)
(3,297
)
(2,106
)
Stock-based compensation expense
(8,988
)
(7,135
)
(33,930
)
(31,631
)
Acquisition related expenses (1)
(961
)
(2,718
)
(6,571
)
(919
)
Other adjustments (2)
(5,917
)
(32,039
)
(10,643
)
(68,283
)
Non-GAAP total operating expenses
$
57,915
$
57,875
$
227,562
$
212,540
1. Includes transaction-related expenses
and post-combination compensation expenses. For the three months
ended December 31, 2024, adjustments consist primarily of
transaction-related expenses associated with the acquisition of C2i
Genomics ($1.0 million). For the three months ended December 31,
2023, adjustments consist primarily of transaction-related expenses
associated with the acquisition of C2i Genomics ($2.6 million) and
remeasurement of contingent consideration related to our adoption
of a multi-platform IVD strategy ($0.1 million). For the twelve
months ended December 31, 2024, adjustments consist primarily of
transaction-related expenses associated with the acquisition of C2i
Genomics. For the twelve months ended December 31, 2023,
adjustments consist primarily of remeasurement of contingent
consideration related to our adoption of a multi-platform IVD
strategy, post-combination compensation expenses associated with
the acquisition of HalioDx and transaction-related expenses
associated with the acquisition of C2i Genomics.
2. For the three months ended December 31,
2024, adjustments primarily include expense related to Veracyte SAS
site investment review ($3.2 million) and expense related to the
impairment charge associated with HalioDx ($2.7 million). For the
three months ended December 31, 2023, adjustments include $32.0
million expense related to the impairment charge associated with
HalioDx. For the twelve months ended December 31, 2024, adjustments
primarily include expense related to restructuring costs associated
with a reduction in our Biopharmaceutical and Other segment and
with portfolio prioritization, expense related to Veracyte SAS site
investment review and expense related to the impairment charge
associated with HalioDx. For the twelve months ended December 31,
2023, adjustments primarily include $34.9 million expense related
to the impairment charge associated with the nCounter license
intangible assets, $32.0 million expense related to the impairment
charge associated with HalioDx and $1.3 million related to other
impairment charges.
VERACYTE, INC.
RECONCILIATION OF U.S. GAAP to
NON-GAAP FINANCIAL MEASURES
(Unaudited)
(In thousands)
Three Months Ended December
31
Twelve Months Ended December
31
2024
2023
2024
2023
Reconciliation of Adjusted
EBITDA:
GAAP Net Income (Loss)
$
5,113
$
(28,293
)
$
24,138
$
(74,404
)
GAAP Net Income (Loss) as a % of
Revenue
4.3
%
(28.8
%)
5.4
%
(20.6
%)
Amortization of intangible assets
3,609
4,563
14,849
20,570
Depreciation expense
2,643
1,773
8,610
6,618
Stock-based compensation expense
9,629
7,607
36,249
33,489
Acquisition related expenses (1)
961
2,718
6,631
993
Other expense (income), net (2)
(1,967
)
(3,399
)
(11,647
)
(7,922
)
Other adjustments (3)
7,807
32,039
11,450
68,283
Income tax expense (benefit)
(1,670
)
(2,179
)
1,606
(2,208
)
Adjusted EBITDA
$
26,125
$
14,829
$
91,886
$
45,419
Adjusted EBITDA as a % of Revenue
22.0
%
15.1
%
20.6
%
12.6
%
Reconciliation of Non-GAAP Net Income
(Loss)
GAAP Net Income (Loss)
$
5,113
$
(28,293
)
$
24,138
$
(74,404
)
Amortization of intangible assets
3,609
4,563
14,849
20,570
Stock-based compensation expense
9,629
7,607
36,249
33,489
Acquisition related expenses (1)
961
2,718
6,631
993
Other adjustments (3)
7,807
32,039
11,450
68,283
Tax adjustments (4)
1,830
(3,387
)
(349
)
(5,638
)
Non-GAAP Net Income
$
28,949
$
15,247
$
92,968
$
43,293
Reconciliation of Non-GAAP Earnings per
Share
Diluted earnings per share, GAAP
$
0.06
$
(0.39
)
$
0.31
$
(1.02
)
Amortization of intangible assets
0.05
0.06
0.19
0.28
Stock-based compensation expense
0.12
0.10
0.46
0.46
Acquisition related expenses (1)
0.01
0.04
0.08
0.01
Other adjustments (3)
0.10
0.44
0.15
0.94
Tax adjustments (4)
0.02
(0.05
)
—
(0.08
)
Rounding and impact of dilutive shares
—
0.01
—
—
Diluted earnings per share, non-GAAP
$
0.36
$
0.21
$
1.19
$
0.58
Weighted average shares outstanding used
in computing diluted earnings per share
Diluted, GAAP
79,905,412
73,107,059
78,163,217
72,644,487
Dilutive effect of equity awards (5)
—
1,117,195
—
1,384,916
Diluted, non-GAAP
79,905,412
74,224,254
78,163,217
74,029,403
1. Includes transaction-related expenses
and post-combination compensation expenses. For the three months
ended December 31, 2024, adjustments consist primarily of
transaction-related expenses associated with the acquisition of C2i
Genomics ($1.0 million). For the three months ended December 31,
2023, adjustments consist primarily of transaction-related expenses
associated with the acquisition of C2i Genomics ($2.6 million) and
remeasurement of contingent consideration related to our adoption
of a multi-platform IVD strategy ($0.1 million). For the twelve
months ended December 31, 2024, adjustments consist primarily of
transaction-related expenses associated with the acquisition of C2i
Genomics. For the twelve months ended December 31, 2023,
adjustments consist primarily of remeasurement of contingent
consideration related to our adoption of a multi-platform IVD
strategy, post-combination compensation expenses associated with
the acquisition of HalioDx and transaction-related expenses
associated with the acquisition of C2i Genomics.
2. Includes interest income and income
related to research tax credits.
3. For the three months ended December 31,
2024, adjustments primarily include the exclusion of unrealized
losses associated with foreign exchange impacts on stock-based
compensation and intercompany loans ($1.9 million), expense related
to Veracyte SAS site investment review ($3.2 million) and expense
related to the impairment charge associated with HalioDx ($2.7
million). For the three months ended December 31, 2023, adjustments
include $32.0 million expense related to the impairment charge
associated with HalioDx. For the twelve months ended December 31,
2024, adjustments primarily include expense related to
restructuring costs associated with a reduction in our
Biopharmaceutical and Other segment and with portfolio
prioritization, expense related to Veracyte SAS site investment
review, expense related to the impairment charge associated with
HalioDx and the exclusion of unrealized losses associated with
foreign exchange impacts on stock-based compensation and
intercompany loans. For the twelve months ended December 31, 2023,
adjustments primarily include $34.9 million expense related to the
impairment charge associated with the nCounter license intangible
assets, $32.0 million expense related to the impairment charge
associated with HalioDx and $1.3 million related to other
impairment charges.
4. Incremental non-GAAP tax expense
reflects the tax impact of the non-GAAP adjustments listed.
5. 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250224348029/en/
Investors: Shayla Gorman investors@veracyte.com
619-393-1545 Media: Tracy Morris media@veracyte.com
650-380-4413
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