Eestech Inc
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Industrials : Machinery |
Company profile

EESTech, Inc. is a development-stage company. The Company is focused on providing mine site waste management solutions through the application of processing capabilities. The Company seeks to deliver remediation and reclamation services to the mining industry. Its patent pending reclamation and remediation services use process technologies to recover resources from mine site waste and process slag to produce a smelt-ready concentrate to produce metals/alloy and specialty inert sand products for multiple downstream applications. Its processing systems include waste resource agglomeration module (WRAM), inductosmelt reduction furnace (IRF) and ThermaSand. Its platform agglomerates recovered materials sourced from course discard dumps, fines dams and processing waste to produce commercially usable products in the form of WRAM ROX. Its IRF is designed to continuously smelt non-conductive materials, ores, concentrates or melt metals and glass, ranging in size from powder to lumps.

Closing Price
$0.10
Day's Change
0.00 (0.00%)
Bid
--
Ask
--
B/A Size
--
Day's High
0.10
Day's Low
0.10
Volume
30,000

Veracyte Announces Second Quarter 2022 Financial Results

4:05 pm ET August 2, 2022 (BusinessWire) Print

--Conference Call and Webcast Today at 4:30 p.m. ET

Veracyte, Inc. (Nasdaq: VCYT) today announced financial results for the second quarter ended June 30, 2022.

"Our second quarter results reflect our continued focus on execution, and as a result, our portfolio delivered robust revenue growth," said Marc Stapley, Veracyte's chief executive officer. "In addition, we significantly expanded the library of clinical evidence demonstrating the performance and utility of our genomic tests and biopharma offerings, which we believe will help drive further test adoption and partnerships. We remain firmly focused on exercising financial discipline as we continue to invest in our near- and long-term growth opportunities to deliver on our strategic vision of improving outcomes for patients all over the world."

Key Business Highlights:

Increased second quarter total revenue by 32% to $72.9 million, compared to the second quarter of 2021; Grew total test volume to 24,904, an increase of 19% compared to the second quarter of 2021; Announced that an updated clinical guideline from the American Urological Association and American Society for Radiation Oncology features a favorable statement for genomic testing, including Decipher Prostate, to help guide care for men with localized prostate cancer. Unveiled key clinical evidence across Veracyte's portfolio: Decipher Prostate - Data was published in Annals of Oncology reinforcing the clinical utility of the Decipher Prostate genomic classifier for helping to guide the timing and intensity of therapy in men experiencing prostate cancer recurrence following radical prostatectomy. Additionally, data unveiled at the 2022 ASCO Annual Meeting demonstrated that population-based prostate cancer treatment patterns are independently associated with Decipher classifier score; Afirma Genomic Sequencing Classifier - Meta-analysis of independent, real-world studies were presented at ENDO 2022 demonstrating consistent and enhanced Afirma GSC performance, compared to the test's original clinical validation study; Prosigna Breast Cancer Assay - New consensus survey data presented at the ESMO Breast annual meeting showed that leading breast cancer oncologists in Europe agree on the value of gene expression profiling tests, such as Prosigna, and on the importance of molecular subtype information to help inform treatment decisions for patients with early-stage breast cancer; Biopharma - New study findings presented orally at ASCO and in a paper published in Lancet Oncology showed the Immunoscore Immune Checkpoint (IC) biomarker's ability to identify which patients will benefit from immune checkpoint inhibitors in metastatic non-small cell lung cancer and metastatic colorectal cancer, respectively; and Percepta Nasal Swab - Data presented at the ATS annual meeting showed that the noninvasive genomic test performed similarly well across the spectrum of tobacco-related risk. Ended the second quarter of 2022 with cash, cash equivalents and short-term investments of $164.0 million, compared to $166.4 million at the end of the first quarter of 2022.

Second Quarter 2022 Financial Results

Total revenue for the second quarter of 2022 was $72.9 million, an increase of 32% compared to $55.1 million in the second quarter of 2021. Testing revenue was $59.7 million, an increase of 18% compared to $50.8 million in the second quarter of 2021 driven primarily by the strong performance of our urology tests. Product revenue was $3.1 million, an increase of 16% compared to $2.7 million in the second quarter of 2021. Biopharmaceutical and other revenue was $10.0 million, an increase of $8.4 million compared to $1.6 million in the second quarter of 2021, driven primarily by the contribution of the HalioDx acquisition.

Total gross margin for the second quarter of 2022, including the amortization of acquired intangible assets, was 59%, compared to 62% in the second quarter of 2021. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 66%, compared to 68% in the second quarter of 2021.

Operating expenses, excluding cost of revenue, were $53.7 million, an increase of 29% compared to the second quarter of 2021. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets and other acquisition related expenses, were $49.0 million compared to $38.0 million in the second quarter of 2021.

Second quarter 2022 net loss was $9.5 million, an increase of 5% compared to the second quarter of 2021. Basic and diluted net loss per common share was $0.13, flat to the second quarter of 2021. Net cash used by operating activities in the first six months of 2022 was $9.2 million, an improvement of $29.4 million compared to the same period in 2021.

A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."

2022 Financial Outlook

The company is currently projecting full-year 2022 total revenue of $272 million to $280 million, representing year-over-year growth of 24% to 28% compared to the prior year, assuming currency rates as of August 2, 2022. This represents an improved outlook compared to our prior guidance of $265 million to $275 million.

Conference Call and Webcast Details

Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company's website and will be available via the following link: https://edge.media-server.com/mmc/p/xvodmkry. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company's website at https://investor.veracyte.com/events-presentations.

The conference call dial-in can be accessed by registering at the following link: https://register.vevent.com/register/BI2d52800c01ef45e7b962619638558741

About Veracyte

Veracyte (Nasdaq: VCYT) is a global diagnostics company that improves patient care by answering important clinical questions to inform diagnosis and treatment decisions. Our growing menu of advanced diagnostic tests help patients avoid risky, costly procedures and interventions, and reduce time to appropriate treatment. In addition to making our tests available in the United States through our central laboratories, our exclusive license to our best-in-class diagnostics instrument positions us to deliver our tests to patients worldwide through laboratories that can perform them locally. Veracyte is based in South San Francisco, California. For more information, please visit www.veracyte.com and follow the company on Twitter (@veracyte).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, our statements related to our expected total revenue and other financial and operating results for 2022 and our plans, objectives, expectations (financial and otherwise) or intentions with respect to our Prosigna, Afirma, Percepta, Envisia, LymphMark, Decipher Prostate, Percepta Nasal Swab, Percepta Genomic Atlas and Decipher Bladder tests and products, including our biopharma atlas, for use in diagnosing and treating diseases, Medicare coverage, and our commercial organization. Forward-looking statements can be identified by words such as: "appears," "anticipate," "intend," "plan," "expect," "believe," "should," "may," "will," "positioned," "designed" and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; to demonstrate the validity and utility of our genomic tests and biopharma offerings to continue to integrate and expand the HalioDx and Decipher businesses and execute on our business plans; to continue to scale our global operations and enhance our internal control environment; the impact of the COVID-19 pandemic and its variants on our business and general economic conditions; the impact of foreign currency fluctuations and inflation; and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption "Risk Factors" in our Annual Report on Form 10-K filed on February 28, 2022, and our Quarterly Report on Form 10-Q to be filed for the three months ended June 30, 2022. Copies of these documents, when available, may be found in the Investors section of our website at www.investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements or reasons why actual results might differ, whether as a result of new information, future events or otherwise.

Veracyte, the Veracyte logo, Decipher, Decipher GRID, Afirma, Percepta, Envisia, Prosigna, Lymphmark, TMExplore, Brightplex, Immunosign, "Know by Design" and "More about You" are registered trademarks of Veracyte, Inc. and its subsidiaries in the U.S. and selected countries. Immunoscore IC(R) is a trademark of Veracyte SAS registered in France. Immunoscore is a registered trademark of Inserm used by Veracyte under license. nCounter is the registered trademark of NanoString Technologies used by Veracyte under license.

Note Regarding Use of Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non-GAAP results including non-GAAP gross margin, non-GAAP operating expenses, and non-GAAP loss from operations. These measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool.

We use non-GAAP measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP measures we present may be different from those used by other companies.

We exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences and HalioDx from certain of our non-GAAP measures. Management has excluded the effects of these items in non-GAAP measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business.

Reconciliations between our GAAP results and non-GAAP financial measures are presented in the tables of this release.

 
                                                                                                                                                                                        VERACYTE, INC.
                                                                                                                                                                        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                                                          (Unaudited)
                                                                                                                                                                 (In thousands of dollars, except share and per share amounts)
                                                                                                                                                                                            
                                                                                                             Three Months Ended June 30,                                                                                                                           Six Months Ended June 30,
                                                                    --------------------------------------------------------------------------------------------------------------------------------------------                            --------------------------------------------------------------------------------------------------------------------------------------------
                                                           2022                       2021                       2022                       2021          
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Revenues:                                                                                                                                                                                                      
                                                                                       $               59,718                        $               50,793                        $              115,698                        $               83,871  
   Testing revenue
                                                                                     3,108                      2,688                      6,087                      5,747  
   Product revenue
                                                                                    10,038                      1,624                     18,862                      2,190  
   Biopharmaceutical and other revenue
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                    72,864                     55,105                    140,647                     91,808  
      Total revenue
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                                                                                                                            
Operating expenses (1):                                                                                                                                                                                        
                                                                                    18,584                     15,589                     36,107                     26,421  
   Cost of testing revenue
                                                                                     1,646                      1,323                      3,221                      2,813  
   Cost of product revenue
                                                                                     4,800                        560                      9,415                        641  
   Cost of biopharmaceutical and other revenue
                                                                                     9,377                      6,249                     18,543                     11,585  
   Research and development
                                                                                    24,001                     19,662                     47,755                     35,958  
   Selling and marketing
                                                                                    19,798                     15,473                     40,710                     61,755  
   General and administrative
                                                                                     5,391                      3,723                     10,877                      5,524  
   Intangible asset amortization
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
                                                                                    83,597                     62,579                    166,628                    144,697  
      Total operating expenses
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Loss from operations                                                               (10,733 )                                      (7,474 )                                     (25,981 )                                     (52,889 )
Other income (loss), net                                                             1,086                     (1,716 )                                       1,870                     (1,964 )
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Loss before income taxes                                                            (9,647 )                                      (9,190 )                                     (24,111 )                                     (54,853 )
Income tax benefit                                                                    (115 )                                        (152 )                                        (118 )                                      (3,947 )
                                                                    -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------                      -------------------- -------------------- --------------------
Net loss                                                                               $               (9,532 )                                         $               (9,038 )                                         $              (23,993 )                                         $              (50,906 )
                                                                    ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Net loss per common share, basic and diluted                                           $                (0.13 )                                         $                (0.13 )                                         $                (0.34 )                                         $                (0.78 )
                                                                    ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
Shares used to compute net loss per common share, basic and diluted             71,476,966                 67,316,065                 71,354,002                 65,334,890  
                                                                    ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================                      ==================== ==================== ====================
                                                                              
                                               Three Months Ended June 30,                                                    Six Months Ended June 30,
                                          ----------------------------------------------------------------------                          -----------------------------------------------------------------------
                          2022      2021      2022       2021
                                          -------------------- -----                      -------------------- -----                      -------------------- ------                      -------------------- -----
Cost of revenue                                              $   386                      $   156                      $    657                      $   287
Research and development                    1,452     1,072      3,108     1,916
Selling and marketing                       1,660       600      2,705     1,636
General and administrative                  2,627     2,236      6,510     4,080
                                          -------------------- -----                      -------------------- -----                      -------------------- ------                      -------------------- -----
                                                             $ 6,125                      $ 4,064                      $ 12,980                      $ 7,919
   Total stock-based compensation expense
                                          ==================== =====                      ==================== =====                      ==================== ======                      ==================== =====
                                                                                                                                                            VERACYTE, INC.
                                                                                                                                        CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS
                                                                                                                                                              (Unaudited)
                                                                                                                                                            (In thousands)
                                                                                                                                         
                                                                                 Three Months Ended June 30,                                                                                                        Six Months Ended June 30,
                                                 -------------------------------------------------------------------------------------------------------------------------                            -------------------------------------------------------------------------------------------------------------------------
                                  2022             2021              2022             2021       
                                                 -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------
Net loss                                                            $  (9,532 )                                         $         (9,038 )                                         $ (23,993 )                                         $        (50,906 )
                                                                                                                                                            
   Other comprehensive loss:
                                                   (17,369 )                        --       (22,967 )                        --  
      Change in currency translation adjustments
                                                                                                                                         
                                                 -----------------------------------------------                        ------------------------------------------------------                        -----------------------------------------------                        ------------------------------------------------------
Net comprehensive loss                                              $ (26,901 )                                         $         (9,038 )                                         $ (46,960 )                                         $        (50,906 )
                                                 ==================== ======= ====================                      ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                  VERACYTE, INC.
                                                                                                                       CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                                                                  (In thousands)
                                                                                                                                         
                                                                                        June 30,                                                                                              December 31,
                                                                                          2022                                                                                                    2021
                                                                      --------------------------------------------------------------------------------                                           --------------------------------------------------------------------------------
                                                                                       (Unaudited)                                                                                            (See Note 1)
Assets                                                                                                                                                      
Current assets:                                                                                                                                             
                                                                                                             $                                  153,447                                                              $                                  173,197
   Cash and cash equivalents
                                                                                                                              10,551                                                                                3,964
   Short-term investments
                                                                                                                              40,448                                                                               41,461
   Accounts receivable
                                                                                                                              14,600                                                                               11,225
   Supplies and inventory
                                                                                                                              15,999                                                                               13,255
   Prepaid expenses and other current assets
                                                                      ---------------------------------------- ----------------------------------------                                          ---------------------------------------- ----------------------------------------
                                                                                                                             235,045                                                                              243,102
      Total current assets
Property and equipment, net                                                                                                   17,188                                                                               15,098
Right-of-use assets, operating leases                                                                                         14,816                                                                               16,043
Intangible assets, net                                                                                                       184,367                                                                              202,731
Goodwill                                                                                                                     690,040                                                                              707,904
Restricted cash                                                                                                                  749                                                                                  749
Other assets                                                                                                                   1,993                                                                                2,198
                                                                      ---------------------------------------- ----------------------------------------                                          ---------------------------------------- ----------------------------------------
                                                                                                             $                                1,144,198                                                              $                                1,187,825
      Total assets
                                                                      ======================================== ========================================                                          ======================================== ========================================
Liabilities and Stockholders' Equity                                                                                             
Current liabilities:                                                                                                                                        
                                                                                                             $                                   10,328                                                              $                                   12,360
   Accounts payable
                                                                                                                              33,565                                                                               39,475
   Accrued liabilities
                                                                                                                               1,133                                                                                1,127
   Current portion of long-term debt
                                                                                                                               4,193                                                                                4,646
   Current portion of deferred revenue
                                                                                                                               5,998                                                                                2,682
   Current portion of acquisition-related contingent consideration
                                                                                                                               3,930                                                                                3,630
   Current portion of operating lease liabilities
                                                                                                                                 198                                                                                  231
   Current portion of other liabilities
                                                                      ---------------------------------------- ----------------------------------------                                          ---------------------------------------- ----------------------------------------
                                                                                                                              59,345                                                                               64,151
      Total current liabilities
Deferred revenue, net of current portion                                                                              --                                                                                  343
Deferred tax liabilities                                                                                                       4,605                                                                                5,592
Acquisition-related contingent consideration, net of current portion                                                           2,358                                                                                5,722
Operating lease liabilities, net of current portion                                                                           12,529                                                                               14,096
Other liabilities                                                                                                              1,210                                                                                1,407
                                                                      ---------------------------------------- ----------------------------------------                                          ---------------------------------------- ----------------------------------------
                                                                                                                              80,047                                                                               91,311
      Total liabilities
Total stockholders' equity                                                                      1,064,151                                                                            1,096,514
                                                                      ---------------------------------------- ----------------------------------------                                          ---------------------------------------- ----------------------------------------
Total liabilities and stockholders' equity                                        $                                1,144,198                                                              $                                1,187,825
                                                                      ======================================== ========================================                                          ======================================== ========================================
                                                                                                                                         
1. The condensed consolidated balance sheet at December 31, 2021 has been derived from the audited financial statements at that date included in the Company's Form 10-K filed with the Securities and Exchange Commission dated February 28, 2022.
                                                                                                        VERACYTE, INC.
                                                                                        CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                          (Unaudited)
                                                                                                   (in thousands of dollars)
                                                                                                             
                                                                                                                           Six Months Ended June 30,
                                                                                       --------------------------------------------------------------------------------------------------------------------------------
                                                                           2022                 2021       
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Operating activities                                                                                                            
Net loss                                                                                                  $        (23,993 )                                         $        (50,906 )
Adjustments to reconcile net loss to net cash used in operating activities:                                                     
                                                                                                 13,048                7,050  
   Depreciation and amortization
                                                                                                 12,584                7,919  
   Stock-based compensation
                                                                                                   (118 )                                (3,947 )
   Benefit from income taxes
                                                                                                    107                  107  
   Interest on end-of-term debt obligation
                                                                                                  1,638                  885  
   Noncash lease expense
                                                                                                    (48 )                                   247  
   Revaluation of acquisition-related contingent consideration
                                                                                                    716                1,866  
   Effect of foreign currency on operations
                                                                                                  3,318       --  
   Impairment of intangible assets
Changes in operating assets and liabilities:                                                                                    
                                                                                                 (2,936 )                                (6,713 )
   Accounts receivable
                                                                                                 (3,654 )                                  (375 )
   Supplies and inventory
                                                                                                 (1,830 )                                (1,288 )
   Prepaid expenses and other current assets
                                                                                                    284                  (30 )
   Other assets
                                                                                                 (1,680 )                                (1,017 )
   Operating lease liabilities
                                                                                                 (1,373 )                                 2,758  
   Accounts payable
                                                                                                 (5,298 )                                 4,770  
   Accrued liabilities and deferred revenue
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash used in operating activities                                                            (9,235 )                               (38,674 )
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Investing activities                                                                                                            
Acquisition of Decipher Biosciences, net of cash acquired                                --             (574,411 )
Purchase of short-term investments                                                               (8,972 )                        --  
Proceeds from maturity of short-term investments                                                  2,175       --  
Proceeds from sale of equity securities                                                  --                3,000  
Purchases of property and equipment                                                              (4,963 )                                (2,723 )
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash used in investing activities                                                           (11,760 )                              (574,134 )
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Financing activities                                                                                                            
Proceeds from the issuance of common stock in a public offering, net of issuance costs   --              593,821  
Payment of long-term debt                                                                           (97 )                        --  
Payment of taxes on vested restricted stock units                                                (1,865 )                                (7,484 )
Proceeds from the exercise of common stock options and employee stock purchases                   3,877                6,595  
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net cash provided by financing activities                                                         1,915              592,932  
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Decrease in cash, cash equivalents and restricted cash                                          (19,080 )                               (19,876 )
Effect of foreign currency on cash, cash equivalents and restricted cash                           (670 )                                (1,797 )
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net decrease in cash, cash equivalents and restricted cash                                      (19,750 )                               (21,673 )
Cash, cash equivalents and restricted cash at beginning of period                               173,946              349,967  
                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Cash, cash equivalents and restricted cash at end of period                                               $        154,196                        $        328,294  
                                                                                       ==================== ============== ====================                      ==================== ============== ====================
                                              CASH, CASH EQUIVALENTS AND RESTRICTED CASH
                                                              (Unaudited)
                                                       (In thousands of dollars)
                                              
                                          June 30,                        December 31,
                                            2022                              2021
                                                 ------------------------------                       ------------------------------
Cash and cash equivalents                                           $    153,447                      $    173,197
Restricted cash                                           749            749
                                                 -------------------- ----------                      -------------------- ----------
Total cash, cash equivalents and restricted cash                    $    154,196                      $    173,946
                                                 ==================== ==========                      ==================== ==========
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands of dollars)
                                                                                                                                                                                           Identified Expenses                                                                                                   
                                                                                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                       GAAP                                                                  Acquisition                                                   Intangible                                           Other                                                   Total Non-GAAP
                                                                                                                                                                                     Related                                                                          Assets                                                                 (4)                                                                           Measure
                                                                                                                                                                                  Expenses (1)                                                                     Amortization
                                                                                                                                                                                                                                                                      Expense
                                                          ------------------------------------------------------------------   ---------------------- ------------------------------------------------------------------   ---------------------- --------------------------------------------  ---------------------- --------------------------------------------  ---------------------- ------------------------------------------------------------------
Three Months Ended June 30, 2022                                                                                                                                                                                                                        
Total revenue                                                                  $                 72,864                              $         --                              $         --                          $         --                          $                 72,864  
Cost of testing revenue                                                       18,584                                 51                     --                 --                         18,533  
Cost of product revenue                                                        1,646                     --                     --                 --                          1,646  
Cost of biopharmaceutical and other revenue                                    4,800                                 65                     --                 --                          4,735  
Intangible asset amortization (2)                                              4,869                     --                              4,869                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                              42,965                                116                              4,869                 --                         47,950  
   Gross margin $
                                                                                  59 %                                                                                                                                                                      66 %
   Gross margin %
                                                                                                                                                                                                                  
Research and development                                                       9,377                                293                     --                 --                          9,084  
Selling and marketing                                                         24,001                                858                     --                 --                         23,143  
General and administrative                                                    19,798                               (285 )                                      --                          3,318                         16,765  
Intangible asset amortization                                                    522                     --                                522                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                              53,698                                866                                522                          3,318                         48,992  
   Total operating expenses excluding cost of revenue (3)
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Loss from operations                                                           $                (10,733 )                                               $                    982                              $                  5,391                          $                  3,318                          $                 (1,042 )
                                                          ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ======================
                                                                                                                                                                                                                  
Three Months Ended June 30, 2021                                                                                                                                                                                                                        
Total revenue                                                                  $                 55,105                              $         --                              $         --                          $         --                          $                 55,105  
Cost of testing revenue                                                       15,589                     --                     --                 --                         15,589  
Cost of product revenue                                                        1,323                     --                     --                 --                          1,323  
Cost of biopharmaceutical and other revenue                                      560                     --                     --                 --                            560  
Intangible asset amortization (2)                                              3,402                     --                              3,402                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Gross margin $                                                                34,231                     --                              3,402                 --                         37,633  
Gross margin %                                                                    62 %                                                                                                                                                                      68 %
                                                                                                                                                                                                                  
Research and development                                                       6,249                     --                     --                 --                          6,249  
Selling and marketing                                                         19,662                                 12                     --                 --                         19,650  
General and administrative                                                    15,473                              3,380                     --                 --                         12,093  
Intangible asset amortization                                                    321                     --                                321                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                              41,705                              3,392                                321                 --                         37,992  
   Total operating expenses excluding cost of revenue (3)
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Loss from operations                                                           $                 (7,474 )                                               $                  3,392                              $                  3,723                          $         --                          $                   (359 )
                                                          ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ======================
                                                                                                                                                                                                                  
1. Includes transaction related expenses as well as post-combination compensation expenses. For 2021, adjustments consist primarily of transaction-related expenses associated with the acquisition of Decipher Biosciences. For 2022, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.
2. Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of revenue.
3. Includes only amortization of intangible assets, which otherwise would have been allocated to research and development, selling and marketing or general and administrative expense and excludes the cost of revenue ($25.0 and $17.5 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($4.9 and $3.4 million) for Q2 2022 and 2021 respectively.
4. Includes $3.3 million expense related to the impairment charge associated with certain developed technology intangible assets
                                                                                                                                                                                                                  
                                                                                                                                                                                                                  
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
(Unaudited)
(In thousands of dollars)
                                                                                                                                                                                                                  
                    Identified Expenses                                            Identified Expenses                           Identified Expenses                                                                                                Identified Expenses
--------------------------------------------------------- ------------------------------------------------------------------   ---------------------- ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                           GAAP                                                           GAAP                                                                  Acquisition                                                   Intangible                                           Other                                                 
                                                                                                                                                                                     Related                                                                          Assets                                                                 (4)                                                                       Total Non-GAAP
                                                                                                                                                                                  Expenses (1)                                                                     Amortization                                                                                                                                            Measure
                                                                                                                                                                                                                                                                      Expense
--------------------------------------------------------- ------------------------------------------------------------------   ---------------------- ------------------------------------------------------------------   ---------------------- --------------------------------------------  ---------------------- --------------------------------------------  ---------------------- ------------------------------------------------------------------
Six Months Ended June 30, 2022                                                                                                                                                                                                                          
Total revenue                                                                  $                140,647                              $         --                              $         --                          $         --                          $                140,647  
Cost of testing revenue                                                       36,107                                104                     --                 --                         36,003  
Cost of product revenue                                                        3,221                     --                     --                 --                          3,221  
Cost of biopharmaceutical and other revenue                                    9,415                                198                     --                 --                          9,217  
Intangible asset amortization (2)                                              9,823                     --                              9,823                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                              82,081                                302                              9,823                 --                         92,206  
   Gross margin $
                                                                                  58 %                                                                                                                                                                      66 %
   Gross margin %
                                                                                                                                                                                                                                                                  
Research and development                                                      18,543                                935                     --                 --                         17,608  
Selling and marketing                                                         47,755                              2,074                     --                 --                         45,681  
General and administrative                                                    40,710                              2,605                     --                          3,318                         34,787  
Intangible asset amortization                                                  1,054                     --                              1,054                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                             108,062                              5,614                              1,054                          3,318                         98,076  
   Total operating expenses excluding cost of revenue (3)
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Loss from operations                                                           $                (25,981 )                                               $                  5,916                              $                 10,877                          $                  3,318                          $                 (5,870 )
                                                          ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ======================
                                                                                                                                                                                                                                                                  
Six Months Ended June 30, 2021                                                                                                                                                                                                                                                                          
Total revenue                                                                  $                 91,808                              $         --                              $         --                          $         --                          $                 91,808  
Cost of testing revenue                                                       26,421                     --                     --                 --                         26,421  
Cost of product revenue                                                        2,813                     --                     --                 --                          2,813  
Cost of biopharmaceutical and other revenue                                      641                     --                     --                 --                            641  
Intangible asset amortization (2)                                              5,038                     --                              5,038                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Gross margin $                                                                56,895                     --                              5,038                 --                         61,933  
Gross margin %                                                                    62 %                                                                                                                                                                      67 %
                                                                                                                                                                                                                                                                  
Research and development                                                      11,585                                  1                     --                 --                         11,584  
Selling and marketing                                                         35,958                                 68                     --                 --                         35,890  
General and administrative                                                    61,755                             39,368                     --                 --                         22,387  
Intangible asset amortization                                                    486                     --                                486                 --                 --  
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
                                                                             109,784                             39,437                                486                 --                         69,861  
   Total operating expenses excluding cost of revenue (3)
                                                          ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ---------------------- ----------------------
Loss from operations                                                           $                (52,889 )                                               $                 39,437                              $                  5,524                          $         --                          $                 (7,928 )
                                                          ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ====================== ======================
                                                                                                                                                                                                                  
1. Includes transaction related expenses as well as post-combination compensation expenses. For 2021, adjustments consist primarily of transaction-related expenses associated with the acquisition of Decipher Biosciences. For 2022, adjustments consist primarily of post-combination compensation expenses associated with the acquisition of HalioDx.
2. Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of revenue.
3. Includes only amortization of intangible assets, which otherwise would have been allocated to research and development, selling and marketing or general and administrative expense and excludes the cost of revenue ($48.7 and $29.9 million) and the amortization of intangible assets which would have been allocated to the cost of revenue ($9.8 and $5.0 million) for H1 2022 and 2021 respectively

View source version on businesswire.com: https://www.businesswire.com/news/home/20220802005901/en/

SOURCE: Veracyte, Inc.

Investor Contact: 
Shayla Gorman
Director, Investor Relations
619-393-1545
investors@veracyte.com

Media Contact: 
Tracy Morris
Vice President of Global Corporate Communications
650-380-4413
tracy.morris@veracyte.com
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