Veracyte, Inc. (VCYT) Bundle
A Brief History of Veracyte, Inc.
Company Overview
Veracyte, Inc. is a genomic diagnostics company focused on improving patient outcomes through the development of innovative diagnostic tests. Founded in 2010, the company has established a strong presence in the field of molecular diagnostics, particularly in oncology and other complex diseases.
Recent Developments
As of September 30, 2024, Veracyte reported significant financial progress, with total revenue reaching $115.9 million for the three months ended September 30, 2024, compared to $90.3 million for the same period in 2023. This represents a growth of 28.4% year-over-year.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $115.9 million | $90.3 million | +28.4% |
| Net Income (Loss) | $15.2 million | ($34.7 million) | +143.8% |
| Basic EPS | $0.20 | ($0.41) | +148.8% |
Revenue Breakdown
Veracyte's revenue is primarily derived from testing services, product sales, and biopharmaceutical collaborations. For the nine months ended September 30, 2024, testing revenue accounted for $306.8 million, marking an increase from $236.2 million in the same period of 2023.
| Revenue Source | 9M 2024 | 9M 2023 |
|---|---|---|
| Testing Revenue | $306.8 million | $236.2 million |
| Product Revenue | $10.6 million | $11.9 million |
| Biopharmaceutical Revenue | $9.7 million | $14.8 million |
Cost Structure
The cost of revenue for the three months ended September 30, 2024 was $36.9 million, compared to $32.4 million in the same period in 2023, reflecting a 14% increase. The gross profit for Q3 2024 was $79.0 million, a significant increase from $57.7 million in Q3 2023.
| Cost Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of Revenue | $36.9 million | $32.4 million | +14% |
| Gross Profit | $79.0 million | $57.7 million | +37% |
Operating Expenses
Veracyte's operating expenses for the three months ended September 30, 2024 totaled $67.0 million, a decrease from $89.4 million in the same quarter of 2023. The reduction reflects the company's ongoing efforts to streamline operations and reduce costs.
| Operating Expense Type | Q3 2024 | Q3 2023 |
|---|---|---|
| Research and Development | $17.6 million | $13.3 million |
| Selling and Marketing | $22.6 million | $24.3 million |
| General and Administrative | $25.7 million | $16.3 million |
Liquidity Position
As of September 30, 2024, Veracyte reported cash and cash equivalents of $274.1 million, with an increase of $57.8 million during the nine months ended September 30, 2024. The company has maintained a strong liquidity position, allowing for continued investment in research and development as well as operational expansion.
Outlook
Looking ahead, Veracyte aims to leverage its strong financial position to support ongoing product development and market expansion. The company is focused on enhancing its product portfolio and exploring strategic partnerships to drive future growth.
A Who Owns Veracyte, Inc. (VCYT)
Major Shareholders
As of November 1, 2024, there were 77,499,629 shares of common stock outstanding.
Institutional Ownership
Institutional investors hold a significant portion of Veracyte, Inc.'s shares. The following table summarizes major institutional shareholders:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 9,150,000 | 11.8% |
| The Vanguard Group, Inc. | 7,500,000 | 9.7% |
| State Street Corporation | 5,800,000 | 7.5% |
| Invesco Ltd. | 3,200,000 | 4.1% |
| Wellington Management Co. LLP | 2,900,000 | 3.7% |
Insider Ownership
Insider ownership consists of shares held by executives and board members. The following table details the shares held by key insiders:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Marc Stapley | CEO | 1,200,000 | 1.5% |
| Gail M. Farfel | CFO | 600,000 | 0.8% |
| John A. S. Ma | Chairman | 300,000 | 0.4% |
| Jennifer A. F. S. A. B. K. D. B. R. S. W. D. | Board Member | 150,000 | 0.2% |
Recent Developments
Veracyte's recent acquisition of C2i, a company specializing in cancer diagnostics, involved issuing approximately 2.7 million shares valued at $73.3 million based on the share price on the closing date of February 5, 2024.
Summary of Ownership Structure
The ownership structure of Veracyte, Inc. as of 2024 demonstrates a blend of institutional and insider holdings, reflecting confidence in the company's growth strategy and market potential.
Veracyte, Inc. (VCYT) Mission Statement
Veracyte, Inc. is dedicated to transforming patient care through innovative diagnostic solutions that improve the accuracy and efficiency of cancer diagnosis and treatment. The company aims to help physicians make better-informed decisions, ultimately leading to improved patient outcomes and enhanced quality of life.
Financial Overview
As of September 30, 2024, Veracyte reported significant financial metrics that reflect its performance in the diagnostic sector. The following table displays key financial data for the three and nine months ended September 30, 2024, compared to the same periods in 2023.
| Financial Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Total Revenue | $115,860,000 | $90,108,000 | $327,132,000 | $262,852,000 |
| Net Income (Loss) | $15,155,000 | $(29,618,000) | $19,025,000 | $(46,111,000) |
| Earnings per Share (Basic) | $0.20 | $(0.41) | $0.25 | $(0.64) |
| Total Operating Expenses | $66,993,000 | $89,426,000 | $207,424,000 | $215,184,000 |
| Research and Development Expense | $17,574,000 | $13,322,000 | $50,004,000 | $38,632,000 |
| Selling and Marketing Expense | $22,612,000 | $24,344,000 | $70,610,000 | $76,230,000 |
| General and Administrative Expense | $25,742,000 | $16,334,000 | $83,697,000 | $62,434,000 |
Key Performance Indicators
Veracyte's operational performance is measured through various key performance indicators (KPIs). The following table summarizes important operational metrics for the three and nine months ended September 30, 2024, reflecting the company's growth in diagnostic testing.
| Operational Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Diagnostic Tests Reported | 36,792 | 29,683 | 103,818 | 84,592 |
| Total Test Volume | 39,032 | 32,544 | 111,479 | 93,141 |
| Testing Revenue | $109,536,000 | $82,012,000 | $306,809,000 | $236,157,000 |
| Product Revenue | $3,188,000 | $4,020,000 | $10,631,000 | $11,923,000 |
| Biopharmaceutical and Other Revenue | $3,136,000 | $4,076,000 | $9,692,000 | $14,772,000 |
Market Position and Strategic Focus
Veracyte continues to focus on expanding its market position through innovative diagnostic solutions, primarily in the oncology sector. The company's flagship products, including the Decipher Prostate and Afirma tests, have been instrumental in driving revenue growth and improving clinical decision-making.
As of September 30, 2024, Veracyte's cash and cash equivalents stood at approximately $274.1 million, providing a strong liquidity position to support ongoing research and development initiatives and strategic acquisitions.
How Veracyte, Inc. (VCYT) Works
Company Overview
Veracyte, Inc. (NASDAQ: VCYT) operates as a genomic diagnostics company that focuses on improving patient outcomes by providing diagnostic tests that help in the diagnosis and treatment of various diseases, primarily cancers. The company specializes in non-invasive diagnostic solutions and aims to enable physicians to make more informed decisions.
Business Model
Veracyte generates revenue primarily through its diagnostic testing services, including its flagship products, Decipher Prostate and Afirma, which are used for prostate cancer and thyroid cancer diagnosis, respectively. The company also collaborates with biopharmaceutical companies, providing diagnostic insights that aid in clinical decision-making.
Financial Performance
As of September 30, 2024, Veracyte reported total revenue of $115.86 million for the third quarter, representing a 29% increase from $90.10 million in the same quarter of 2023. The company’s net income for the same period was $15.15 million, compared to a net loss of $29.62 million in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $115.86 million | $90.10 million | 29% |
| Net Income (Loss) | $15.15 million | $(29.62) million | 151% |
| Testing Revenue | $109.54 million | $82.01 million | 34% |
| Product Revenue | $3.19 million | $4.02 million | (21%) |
| Biopharmaceutical and Other Revenue | $3.14 million | $4.08 million | (23%) |
Cost Structure
The total cost of revenue for Q3 2024 was $36.85 million, up from $32.42 million in Q3 2023, reflecting a 14% increase. The primary components of the cost structure include:
- Cost of Testing Revenue: $29.03 million
- Cost of Product Revenue: $1.79 million
- Cost of Biopharmaceutical and Other Revenue: $3.11 million
- Intangible Asset Amortization - Cost of Revenue: $2.92 million
Operating Expenses
Veracyte's operating expenses for Q3 2024 totaled $66.99 million, compared to $89.43 million in Q3 2023, indicating a 25% decrease. The breakdown includes:
- Research and Development: $17.57 million
- Selling and Marketing: $22.61 million
- General and Administrative: $25.74 million
Cash Flow Analysis
For the nine months ended September 30, 2024, Veracyte reported net cash provided by operating activities of $50.57 million. The cash flow metrics are as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $50,572 |
| Net Cash (Used in) Provided by Investing Activities | $(2,134) |
| Net Cash Provided by Financing Activities | $9,414 |
Market Position and Strategic Initiatives
Veracyte's market strategy involves expanding its portfolio of diagnostic tests and enhancing clinical utility evidence to secure reimbursement from payers. As of September 30, 2024, the company has an accumulated deficit of $449.1 million and continues to invest in research and development to drive future growth.
Key Performance Indicators
Key performance indicators for Veracyte as of September 30, 2024, include:
- Diagnostic Tests Reported: 36,792
- Product Tests Sold: 2,240
- Total Test Volume: 39,032
Conclusion on Financial Outlook
With a strong focus on innovative diagnostics and the recent positive financial performance, Veracyte is positioned to capitalize on growth opportunities in the genomic diagnostics market. The continued expansion of Medicare coverage for key products such as the Afirma classifier is expected to drive revenue growth in the coming periods.
How Veracyte, Inc. (VCYT) Makes Money
Revenue Streams
Revenue Streams
Veracyte generates revenue primarily through three main categories:
- Testing Revenue: This includes income from diagnostic tests such as Decipher Prostate and Afirma.
- Product Revenue: This pertains to the sales of diagnostic kits and related products.
- Biopharmaceutical and Other Revenue: This involves revenue from collaborative agreements and contract services.
Financial Performance Overview
For the three months ended September 30, 2024, Veracyte reported:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenue | $115,860 | $90,108 | 29% |
| Testing Revenue | $109,536 | $82,012 | 34% |
| Product Revenue | $3,188 | $4,020 | (21)% |
| Biopharmaceutical Revenue | $3,136 | $4,076 | (23)% |
For the nine months ended September 30, 2024, the financials were as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Total Revenue | $327,132 | $262,852 | 24% |
| Testing Revenue | $306,809 | $236,157 | 30% |
| Product Revenue | $10,631 | $11,923 | (11)% |
| Biopharmaceutical Revenue | $9,692 | $14,772 | (34)% |
Cost Structure
Veracyte's cost of revenue for the three months ended September 30, 2024 included:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Testing Revenue | $29,029 | $21,827 | 33% |
| Cost of Product Revenue | $1,792 | $2,436 | (26)% |
| Cost of Biopharmaceutical Revenue | $3,112 | $3,347 | (7)% |
| Total Cost of Revenue | $36,850 | $32,421 | 14% |
For the nine months ended September 30, 2024, the cost structure was as follows:
| Category | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Testing Revenue | $82,928 | $64,808 | 28% |
| Cost of Product Revenue | $6,310 | $6,913 | (9)% |
| Cost of Biopharmaceutical Revenue | $9,762 | $11,806 | (17)% |
| Total Cost of Revenue | $107,741 | $97,956 | 10% |
Profitability Metrics
Veracyte reported a net income of:
- $15,155,000 for the three months ended September 30, 2024, compared to a net loss of $29,618,000 in 2023.
- $19,025,000 for the nine months ended September 30, 2024, compared to a net loss of $46,111,000 in 2023.
Key Payer Relationships
Revenue from major payers for the nine months ended September 30, 2024 was as follows:
| Payer | Percentage of Revenue |
|---|---|
| Medicare | 31% |
| UnitedHealthcare | 14% |
Veracyte's reliance on these payers highlights the importance of maintaining favorable reimbursement policies to support ongoing revenue generation.
Veracyte, Inc. (VCYT) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Veracyte, Inc. (VCYT) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Veracyte, Inc. (VCYT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Veracyte, Inc. (VCYT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.