NEW YORK – Veracyte reported after the close of the market on Thursday that its fourth quarter revenues grew 22 percent year over year, driven by strong sales of its Afirma thyroid cancer and Decipher prostate cancer genomic sequencing classifier tests.
For the three months ended Dec. 31, 2024, Veracyte reported revenues of $98.2 million compared to $80.3 million a year ago, above the preliminary range of $95 million to $96 million provided by the company in January and beating analysts' average estimate of $92.0 million.
The bulk of Veracyte's Q4 revenues were related to testing, which grew 29 percent to $90.4 million from $70.3 million in the year-ago quarter. Veracyte said that its Q4 total test volume increased 21 percent to 33,836.
The company also reported a 13 percent gain in product revenues to $3.7 million from $3.2 million a year ago, while biopharmaceutical and other revenues fell 39 percent to $4.1 million from $6.8 million a year ago.
"We closed 2023 with another quarter of excellent results, driven by our Afirma and Decipher businesses," Veracyte CEO Marc Stapley said in a statement. "Looking to 2024 and beyond, we will leverage our Veracyte Diagnostics Platform to continue to drive near- and long-term revenue. With multiple growth catalysts over the coming years and with our strong financial discipline, we expect to achieve positive cash flow for the third consecutive year and going forward."
During the quarter, Veracyte signed an agreement with Illumina to develop some of its tests as in vitro diagnostics for use on Illumina's NextSeq 550Dx next-generation sequencing instruments as part of what the company called a "multiplatform strategy to accelerate global expansion of our tests as IVDs."
Just after the close of Q4, Veracyte also announced it had reached an agreement to acquire C2i Genomics, adding whole-genome minimal residual disease capabilities to its diagnostics platform and expanding its oncology offerings.
Veracyte's Q4 net loss swelled to $28.3 million, or $.39 per share, from a net loss of $3.8 million, or $.05 per share, a year ago. On average, analysts had been expecting a net loss per share of $.09. Veracyte's Q4 net loss included a $32 million charge associated with the impairment of HalioDx-developed biopharmaceutical services technology, customer relationships, and customer backlog finite-lived intangible assets, the company said.
Veracyte's Q4 R&D spending jumped 65 percent to $18.7 million from $11.3 million a year ago, while its SG&A expenses grew 16 percent to $49.1 million from $42.3 million.
For full-year 2023, Veracyte reported revenues of $361.1 million, up 22 percent from $296.5 million in 2022. Reported full-year revenues were above the company's preliminary range of $358 million to $359 million and above analysts' average estimate of $354.8 million.
Full-year testing revenue grew 30 percent to $326.5 million from $250.5 million a year ago, primarily driven by Decipher and Afirma testing. Product revenue grew 23 percent to $15.6 million from $12.6 million, while biopharma and other revenue fell 43 percent to $18.9 million from $33.4 million in 2022, driven by "the reduction of customer projects given overall spending constraints across the industry," Veracyte said in a statement.
The company reported a 2023 net loss of $74.4 million, or $1.02 per share, compared to a net loss of $36.6 million, or $.51 per share, in 2022. Analysts, on average, had predicted a 2023 loss per share of $.73. Veracyte noted that net loss included impairment charges of $68.3 million in the year.
Veracyte's full-year R&D spending jumped 41 percent to $57.3 million from $40.6 million in 2022, while its SG&A expenses grew 10 percent to $187.7 million from $170.8 million a year earlier.
Veracyte finished the year with $216.5 million in cash and cash equivalents.
The company said it is maintaining its full-year 2024 revenue guidance of $394 million to $402 million.