Veracyte (VCYT) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $114.4 million, up 27–28% year-over-year, driven by strong Decipher Prostate and Afirma test volumes.

• Net income reached $5.7 million, with adjusted EBITDA of $24.0 million (21% margin), and record test volumes for Decipher (~19,900) and Afirma (~15,700).

• Raised full-year 2024 revenue guidance to $432–$438 million and year-end cash guidance to $260–$270 million, reflecting improved outlook.

• Ended Q2 with $235.9 million in cash and cash equivalents, generating $26.7 million in cash during the quarter.

• Completed the acquisition of C2i Genomics, expanding MRD detection capabilities.

Financial highlights

• Testing revenue grew 31% year-over-year to $107.0 million; product revenue was $3.9 million (down 3%), and biopharma/other revenue was $3.6 million (down 22%).

• Non-GAAP gross margin reached 71% (up from 68% in Q1 2024); GAAP gross margin was 68%.

• Adjusted EBITDA was $24.0 million (21% of revenue); cash from operations was $29.6 million in Q2.

• Basic and diluted EPS was $0.07; non-GAAP diluted EPS was $0.30.

• Operating expenses were $73.3 million; non-GAAP operating expenses increased 14% to $59.0 million.

Outlook and guidance

• 2024 revenue guidance raised to $432–$438 million, with expected testing revenue growth of ~25%.

• Year-end cash expected between $260–$270 million.

• Q3 revenue expected to decline sequentially due to seasonality and prior period collections; Q4 revenue to step up from Q3.

• Adjusted EBITDA margins in the second half expected to be slightly above the first half.

• Existing cash and cash equivalents expected to be sufficient for at least the next 12 months.