Slide 1: Q1 2023 Business and Financial Presentation
Q1 2023 Business and Financial Presentation May 4, 2023 © Veracyte, Inc. All rights reserved. 5/4/2023 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 Q1 2023 Results and FY 2023 Outlook
Key Q1 2023 Results and FY 2023 Outlook 1. Strong Q1 2023 revenue of $82.4M driven by Decipher Prostate and Afirma 2. Ended Q1 with $178M of cash,1 roughly flat despite our anticipated seasonal use of cash 3. Enhanced Afirma offering with the addition of TERT promoter mutation testing to help furthe
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. 5/4/2023 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. 5/4/2023 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 Q1 total revenue growth of 22%
Q1 2023 REVENUE AND VOLUME Delivered Q1 total revenue growth of 22% Total Revenue by Quarter1 Total Volume by Quarter $80.3 $82.4 $75.6 $6.1 28,788 $72.9 $6.8 28,001 $67.8 $3.9 $7.7 $3.2 26,374 2,940 $10.0 $3.3 24,904 2,322 $8.8 $3.1 23,245 2,374 2,282 $3.0 2,206 $70.3 $72.4 $64.6 25,679 25,848 $59.
Slide 8: Strong Non-GAAP gross margin
Q1 2023 NON-GAAP GROSS MARGIN AND OPERATING EXPENSE Strong Non-GAAP gross margin Non-GAAP Gross Margin by Quarter1 Non-GAAP Operating Expense by Quarter1,2,3 $58.1 $49.1 $51.1 $51.1 68% $49.0 65% 66% 66% 67% $20.1 $16.3 $16.8 $18.0 $16.8 $25.2 $24.3 $23.2 $22.5 $23.1 $10.5 $11.1 $12.7 $8.5 $9.1 Q1 2
Slide 9: Cash balance of $178M
Q1 2023 CASH BALANCE Cash balance of $178M1 • Outstanding execution resulted in Cash balance1 higher than projected cash balance $178.9 $177.9 $166.4 $164.0 $170.1 • Q1 Cash used by operations of $2.2M, an improvement of $6.7M compared to year-ago • 2023 outlook: • Ending 2023 projection of net neut
Slide 10: Raising 2023 revenue guidance to $330M to $340M
2023 REVENUE GUIDANCE Raising 2023 revenue guidance to $330M to $340M Total Revenue1,2,3 $330-$340 $297 $33 • Reflects mid-to-high-teens growth 11% to 15% $13 in testing $220 year-over-year revenue growth • Projecting year-over-year decline $20 $12 in biopharma and other revenue given unique custome
Slide 11: © Veracyte, Inc. All rights reserved.
© Veracyte, Inc. All rights reserved. 5/4/2023 11
Slide 12: Increased guidance in revenue and cash
2023 GUIDANCE Increased guidance in revenue and cash Current Guidance1 Prior Guidance2 Total revenue $330M - $340M $325M - $335M Testing revenue growth Mid-to-high teens Mid-teens Afirma revenue growth High-single digits Mid-to-high single digits Gross margin Mid-60’s Mid-60’s 2023 Ending Cash3 ~$18
Slide 13: 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 14: 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 15: 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,
Slide 16: Reconciliation of Non-GAAP Financial Measures Q2 2022
Q2 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 June 30, 2022 Total revenue $ 72,864 $ — $ — $ — $ 72,864 C
Slide 17: Reconciliation of Non-GAAP Financial Measures Q1 2022
Q1 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 March 31, 2022 Total revenue $ 67,783 $ — $ — $ — $ 67,783 Cost