Veracyte Reports $24.1 Million Net Income and 23% Revenue Growth for Fiscal Year 2024

Veracyte, Inc. reported a net income of $24.1 million for the fiscal year ending December 31, 2024, a significant improvement from the $74.4 million net loss in 2023. Total revenue increased by 23% to $445.7 million, driven primarily by a 28% surge in testing revenue to $418.9 million. This increase stemmed from a 23% rise in diagnostic test volume to 142,925 tests, fueled by strong growth in Decipher Prostate (36% increase) and Afirma (12% increase). However, product revenue decreased by 12% to $13.6 million, and biopharmaceutical and other revenue fell by 30% to $13.2 million.

The company's cost of revenue increased by 12% to $147.6 million, reflecting higher variable costs associated with increased testing volume and infrastructure expansion. Research and development expenses rose by 21% to $69.3 million, primarily due to increased headcount and expenses related to the C2i Genomics acquisition and clinical studies. Selling and marketing expenses decreased by 6% to $95.4 million, while general and administrative expenses increased by 28% to $110.6 million, largely due to acquisition-related costs and infrastructure expansion. Impairment of long-lived assets totaled $3.4 million in 2024, a significant decrease from the $68.3 million recorded in 2023.

Veracyte's strategic developments during the year included the February 2024 acquisition of C2i Genomics, adding whole-genome minimal residual disease (MRD) capabilities to its platform. The company also announced a multi-year agreement with Illumina to develop and offer molecular tests on Illumina's NextSeq 550Dx NGS instrument. Veracyte's Prosigna breast cancer assay remains its primary IVD product, currently distributed in various global markets. The company plans to launch Decipher Prostate and Percepta Nasal Swab as IVDs in the future. As of December 31, 2024, Veracyte employed 824 people.

Medicare accounted for 33% of Veracyte's testing revenue in 2024, Medicaid for 1%, and private commercial payers for 66%. The company's key competitors include Myriad Genetics, MDxHealth, Interpace Diagnostics Group, and Natera, among others, depending on the specific test and market. Veracyte highlighted its Veracyte Diagnostics Platform, scientific excellence, and payer coverage policies as key competitive advantages. The company's financial performance is subject to various risks, including dependence on a few key payers, competition, regulatory changes, and successful commercialization of new products.

Veracyte ended 2024 with $289.4 million in cash and cash equivalents and short-term investments. The company anticipates that its existing cash resources and future cash flows will be sufficient to meet its anticipated cash requirements for at least the next twelve months. However, future funding needs may require additional equity offerings, debt financings, or strategic collaborations. The company does not anticipate paying dividends in the foreseeable future.