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Veracyte Reports 25 Percent Q3 Revenue Growth, Raises Full-Year Guidance

NEW YORK – Veracyte reported after close of market Wednesday that its third quarter revenues increased 25 percent year over year, beating Wall Street estimates and prompting the firm to increase its full-year revenue guidance.

The South San Francisco, California-based company reported $75.6 million in revenues for the three months ending Sept. 30, compared to $60.4 million for the same period last year and above analysts' consensus estimate of $66.4 million.

Testing revenues increased 27 percent to $64.6 million from $50.9 million year over year, driven primarily by its Decipher Prostate Genomic Classifier and Afirma Genomic Sequencing Classifier tests. Product revenues climbed to $3.3 million from $3.0 million in the year-ago period, while biopharmaceutical and other revenues grew to $7.7 million from $6.5 million.

Test volume grew alongside revenues, increasing 26 percent year over year to 26,374.

Veracyte trimmed its Q3 net loss to $8.7 million, or $.12 per share, from $14.1 million, or $.20 per share, in the third quarter of 2021. On average, analysts had expected a loss per share of $.25.

The company noted that commercial reimbursement had been bolstered by positive coverage decisions for the Decipher test from three commercial payors representing over 20 million members in total, and from having signed four new commercial payor contracts for the Afirma assay, bringing the test's in-network coverage to over 230 million individuals.

Also, for Decipher, Veracyte reported having received a "Level 1" evidence designation in the National Comprehensive Cancer Network's update to the 2023 prostate cancer guidelines.

Veracyte finished the quarter with cash and cash equivalents of $170.1 million.

Additionally, the company raised its full-year revenue guidance to between $288 million and $293 million, representing year-over-year growth of 31 to 33 percent, from previous guidance of $272 million to $280 million.

Veracyte shares were up 2.57 percent, to $20 per share, in early morning trading.

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