Veracyte, Inc. · NASDAQ:VCYT
Veracyte — Q3 2023 Earnings Presentation
17 slides from Veracyte's earnings presentation, Nov 7, 2023
Slide 1: Q3 2023 Business and Financial Presentation
Q3 2023 Business and Financial Presentation November 7, 2023 © Veracyte, Inc. All rights reserved. 11/7/2023 1
Slide 2: Forward-looking statements and non-GAAP information
Forward-looking statements and non-GAAP information This presentation contains forward-looking statements, including, but not limited to, our statements related to our expected total revenue for 2023 and other financial and operating results and our plans, objectives, expectations (financial and oth
Slide 3: Key Q3 2023 Results and FY 2023 Outlook
Key Q3 2023 Results and FY 2023 Outlook 1. Strong Q3 2023 revenue of $90.1M driven by Decipher Prostate and Afirma 2. Ended Q3 with $202.5M of cash,1 and generated ~$14M of cash from operations during the quarter 3. Presented 13 abstracts on our diagnostic tests and biopharmaceutical offerings, demo
Slide 4: Our vision is to transform cancer care for patients
Our vision is to transform cancer care for patients all over the world. © Veracyte, Inc. All rights reserved. 11/7/2023 4
Slide 5: We believe exceptional cancer care begins with exceptional diagnostics
OUR PURPOSE We believe exceptional cancer care begins with exceptional diagnostics OUR PROMISE 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 © Veracyte, Inc. All rights reserved. 11/7/2023 5
Slide 6: Our proven framework for developing successful tests
Our proven framework for developing successful tests 1 2 3 Identify clinical Develop high- Drive adoption unmet needs performance tests through KOL support, through collaboration using deep scientific, evidence development, with customers. We clinical and machine- guideline inclusion, focus on oncol
Slide 7: Delivered Q3 total revenue growth of 19%
Q3 2023 REVENUE AND VOLUME Delivered Q3 total revenue growth of 19% Total Revenue by Quarter1 Total Volume by Quarter $90.3 $90.1 31,809 32,544 $80.3 $82.4 $4.6 $4.1 28,788 2,748 2,861 $4.0 $4.0 28,001 $75.6 $6.1 26,374 $6.8 2,322 2,940 $3.9 $7.7 $3.2 2,374 $3.3 $81.7 $82.0 29,061 29,683 $70.3 $72.4
Slide 8: Strong Non-GAAP gross margin
Q3 2023 NON-GAAP GROSS MARGIN AND OPERATING EXPENSE Strong Non-GAAP gross margin Non-GAAP Gross Margin by Quarter1 Non-GAAP Operating Expense by Quarter1,2 $58.1 $59.3 $57.7 $51.1 $51.1 67% 68% 67% 69% 66% $20.1 $21.9 $20.6 $16.3 $16.8 $25.2 $24.9 $23.8 $24.3 $23.2 $10.5 $11.1 $12.7 $12.5 $13.3 Q3 2
Slide 9: Cash balance of $202M
Q3 2023 CASH BALANCE Cash balance of $202M1 • Q3 cash generated by operations Cash balance1 $202.5 of $14.2M $191.1 $178.9 $177.9 • Testing growth and working capital $170.1 performance resulted in higher than projected cash balance • Ending 2023 cash balance outlook: • Raised outlook by $30M YTD •
Slide 10: Raising 2023 revenue guidance to $352M to $354M
2023 REVENUE GUIDANCE Raising 2023 revenue guidance to $352M to $354M Total Revenue ($M)1,2,3 $352-$354 $297 • Assumes: $33 19% year-over-year • Q4 product revenue of $2M - $3M $13 revenue growth $220 • FY 2023 biopharma and other $20 $12 revenue of $18M - $19M $117 $251 $6 $10 $188 $102 2020 2021 2
Slide 11: © Veracyte, Inc. All rights reserved.
© Veracyte, Inc. All rights reserved. 11/7/2023 11
Slide 12: Increased guidance in revenue and cash
2023 GUIDANCE Increased guidance in revenue and cash Updated Guidance1 Prior Guidance2 Total revenue $352M - $354M $342M - $350M Afirma revenue growth ~18% Low-to-mid teens Biopharma and other revenue $18M - $19M $18M - $19M 2023 Ending Cash3 >$200M4 ~$190M4 1. Guidance and currency rates are as of
Slide 13: Reconciliation of Non-GAAP Financial Measures Q3 2023
Q3 2023 Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands of dollars) Identified Expenses Acquisition Related Intangible Assets GAAP Expenses (1) Amortization Expense Other (4) Total Non-GAAP Measure Three Months Ended September 30, 2023 Total revenue $ 90,108 $ — $ — $ — $ 90,
Slide 14: Reconciliation of Non-GAAP Financial Measures Q2 2023
Q2 2023 Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands of dollars) Identified Expenses Acquisition Related Intangible Assets GAAP Expenses (1) Amortization Expense Other (4) Total Non-GAAP Measure Three Months Ended June 30, 2023 Total revenue $ 90,322 $ — $ — $ — $ 90,322 C
Slide 15: Reconciliation of Non-GAAP Financial Measures Q1 2023
Q1 2023 Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands of dollars) Identified Expenses Acquisition Related Intangible Assets GAAP Expenses (1) Amortization Expense Other (4) Total Non-GAAP Measure Three Months Ended March 31, 2023 Total revenue $ 82,422 $ — $ — $ — $ 82,422
Slide 16: Reconciliation of Non-GAAP Financial Measures Q4 2022
Q4 2022 Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands of dollars) Identified Expenses Acquisition Related Intangible Assets GAAP Expenses (1) Amortization Expense Other Total Non-GAAP Measure Three Months Ended December 31, 2022 Total revenue $ 80,297 $ — $ — $ — $ 80,297 C
Slide 17: Reconciliation of Non-GAAP Financial Measures Q3 2022
Q3 2022 Reconciliation of Non-GAAP Financial Measures (Unaudited) (In thousands of dollars) Identified Expenses Acquisition Related Intangible Assets GAAP Expenses (1) Amortization Expense Other (4) Total Non-GAAP Measure Three Months Ended September 30, 2022 Total revenue $ 75,592 $ — $ — $ — $ 75,