Veracyte (NASDAQ: VCYT) reported Q2 EPS of ($0.18), $0.09 better than the analyst estimate of ($0.27). Revenue for the quarter came in at $22.8 million versus the consensus estimate of $20.56 million.

“We delivered another exceptional quarter of revenue and genomic test volume growth,” said Bonnie Anderson, chairman and chief executive officer of Veracyte. “We saw strong growth in our Afirma business where our deep RNA sequencing platform is enabling us to further reduce surgeries in thyroid cancer diagnosis and inform treatment decisions. We accelerated uptake of Percepta in lung cancer diagnosis, while launching our Early Access Program to address strong physician demand for Envisia – and are already leveraging crossover business opportunities with these two pulmonology products.”

Second Quarter 2018 Financial Results

For the three-month period ended June 30, 2018, as compared to the second quarter of 2017:

• Revenue was $22.8 million, an increase of 24%;
• Genomic Test Volume was 7,686, an increase of 18%;
• Gross Margin was 64%, an increase of 2%;
• Operating Expenses, Excluding Cost of Revenue were $20.4 million, an increase of 13%;
• Net Loss and Comprehensive Loss was ($6.2) million, an improvement of 14%;
• Basic and Diluted Net Loss Per Common Share was ($0.18), an improvement of 18%;
• Cash Burn1 was $3.6 million, an improvement of 28%; and
• Cash and Cash Equivalents was $23.8 million at June 30, 2018.

Updated 2018 Financial Outlook

Veracyte is increasing its 2018 annual revenue guidance to between $87 million and $89 million, from its previously updated guidance of between $83 million and $86 million. The company is narrowing its annual cash burn guidance to between $18 million and $21 million, from between $18 million and $22 million.

GUIDANCE:

Veracyte sees Q3 2018 revenue of $87-89 million, versus the consensus of $84.54 million.

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