Veracyte (VCYT) Tops Q1 EPS by 5c, Revenues Beat; Raises FY19 Revenue Guidance Above Consensus

Veracyte (NASDAQ: VCYT) reported Q1 EPS of ($0.05), $0.05 better than the analyst estimate of ($0.10). Revenue for the quarter came in at $29.5 million versus the consensus estimate of $27.61 million.

“We delivered excellent results in the first quarter of 2019,” said Bonnie Anderson, chairman and chief executive officer of Veracyte. “Product revenue and genomic volume both grew significantly in the quarter, and our biopharmaceutical service revenue exceeded our expectations. We also demonstrated financial discipline, improving our cash used in operating activities by 86%.”

Anderson continued, “In addition, we received a final Medicare coverage decision for our Envisia Genomic Classifier and published clinical validation and clinical utility data in The Lancet Respiratory Medicine, positioning the test for commercial expansion nationwide. With this continued strong momentum, we believe we remain well-positioned for both near- and long-term growth.”

First Quarter 2019 Financial Results

For the first quarter of 2019, as compared with the first quarter of 2018:

• Revenue was $29.5 million, an increase of 47%; excluding biopharmaceutical services revenue, revenue was $25.4 million, an increase of 27%;
• Gross Margin was 71%, an improvement of 1,000 basis points or 10 percentage points;
• Operating Expenses, Excluding Cost of Revenue, were $23.1 million, an increase of 9%;
• Net Loss and Comprehensive Loss was $1.9 million, an improvement of 79%;
• Basic and Diluted Net Loss Per Common Share was $0.05, an improvement of 81%;
• Net Cash Used in Operating Activities was $1.0 million, an improvement of 86%; and
• Cash and Cash Equivalents were $67.8 million at March 31, 2019.

First Quarter 2019 and Recent Business Highlights

• Recognized revenue for the first time for the Envisia classifier in the first quarter of 2019.
• Grew genomic test volume to 9,162 tests in the first quarter of 2019, an increase of 33% compared with the first quarter of 2018.
• Received a final Medicare coverage determination for the Envisia classifier through the MolDX program effective April 1, 2019, making the test a covered service for nearly 60 million Medicare beneficiaries nationwide.
• Received coverage for the Afirma Genomic Sequencing Classifier (GSC) under the U.S. Department of Defense TRICARE program for approximately 9.4 million uniformed service members, retirees and their families around the world.
• Received regulatory approval for the Envisia classifier from the New York State Department of Health, making the test available to patients in the state effective immediately.

GUIDANCE:

Veracyte sees FY2019 revenue of $117-121 million, versus the consensus of $114.98 million.

For earnings history and earnings-related data on Veracyte (VCYT) click here.

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