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Veracyte Q2 Revenues Jump 24 Percent

NEW YORK (GenomeWeb) – Veracyte reported after the close of the market on Monday that its second quarter revenues rose 24 percent year over year as it beat analysts' consensus estimates on both the top and bottom lines.

For the three months ended June 30, the South San Francisco, California-based molecular diagnostics firm reported total revenues of $22.8 million, compared to $18.4 million a year ago. On average, analysts had expected Q2 revenues of $20.6 million.

The company reported genomic test volume of 7,686 tests in Q2, up 18 percent from the same quarter last year. Veracyte said that it tripled revenues from its Percepta bronchial genomic classifier compared to the first quarter, and that the number of physicians ordering the test grew by 50 percent sequentially.

During Q2 Veracyte also received regulatory approval from the New York State Department of Health, enabling it to move all of its Afirma thyroid cancer diagnostic tests to the genomic sequencing classifier. The company also commercially launched the Afirma Xpression Atlas, which uses RNA sequencing to inform surgery and treatment decisions in patients with suspected thyroid cancer.

Veracyte's Q2 net loss narrowed to $6.2 million, or $.18 per share, from $7.3 million, or $.22 per share in the year-ago period, beating Wall Street's estimate for a loss per share of $.27.

The firm's R&D expenses in Q2 were $4.6 million, up 28 percent from $3.6 million a year ago, while its SG&A expenses climbed 10 percent to $15.6 million from $14.2 million.

Veracyte finished Q2 with $23.8 million in cash and cash equivalents.

The strong quarter prompted Veracyte to raise its 2018 annual revenue guidance to between $87 million and $89 million from a previously updated guidance of $83 million to $86 million. Analysts are expecting 2018 revenues of $84.5 million.