Veracyte (VCYT) 10-Q8 Nov 232023 Q3 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2023	Nov. 03, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-36156
Entity Registrant Name	VERACYTE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-5455398
Entity Address, Address Line One	6000 Shoreline Court
Entity Address, Address Line Two	Suite 300
Entity Address, City or Town	South San Francisco
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94080
City Area Code	(650)
Local Phone Number	243-6300
Title of 12(b) Security	Common Stock, par value, $0.001 per share
Trading Symbol	VCYT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		73,039,671
Entity Central Index Key	0001384101
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2023

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 202,463,000	$ 154,247,000
Short-term investments	0	24,605,000
Accounts receivable	39,297,000	44,021,000
Supplies and inventory	15,887,000	14,294,000
Prepaid expenses and other current assets	13,516,000	11,469,000
Total current assets	271,163,000	248,636,000
Property, plant and equipment, net	19,288,000	17,702,000
Right-of-use assets, operating leases	11,297,000	13,160,000
Intangible assets, net	123,567,000	174,866,000
Goodwill	693,176,000	695,891,000
Restricted cash	870,000	749,000
Other assets	5,582,000	5,418,000
Total assets	1,124,943,000	1,156,422,000
Current liabilities:
Accounts payable	12,531,000	11,911,000
Accrued liabilities	34,828,000	37,774,000
Current portion of deferred revenue	2,214,000	2,613,000
Current portion of acquisition-related contingent consideration	2,574,000	6,060,000
Current portion of operating lease liabilities	5,007,000	4,070,000
Current portion of other liabilities	106,000	186,000
Total current liabilities	57,260,000	62,614,000
Deferred tax liabilities	3,644,000	4,531,000
Acquisition-related contingent consideration, net of current portion	484,000	2,498,000
Operating lease liabilities, net of current portion	8,720,000	10,648,000
Other liabilities	776,000	931,000
Total liabilities	70,884,000	81,222,000
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized, no shares issued and outstanding as of September 30, 2023 and December 31, 2022	0	0
Common stock, $0.001 par value; 125,000,000 shares authorized, 72,993,670 and 71,959,454 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively	73,000	72,000
Additional paid-in capital	1,528,011,000	1,500,191,000
Accumulated deficit	(439,828,000)	(393,717,000)
Accumulated other comprehensive loss	(34,197,000)	(31,346,000)
Total stockholders’ equity	1,054,059,000	1,075,200,000
Total liabilities and stockholders’ equity	$ 1,124,943,000	$ 1,156,422,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value (in USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	72,993,670	71,959,454
Common stock, shares outstanding (in shares)	72,993,670	71,959,454

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue:
Total revenue	$ 90,108,000	$ 75,592,000	$ 262,852,000	$ 216,239,000
Operating expenses:
Research and development	13,322,000	10,773,000	38,632,000	29,316,000
Selling and marketing	24,344,000	25,678,000	76,230,000	73,433,000
General and administrative	16,334,000	17,600,000	62,434,000	54,992,000
Impairment of long-lived assets	34,900,000	0	36,310,000	3,318,000
Intangible asset amortization	5,337,000	5,213,000	16,007,000	16,090,000
Total operating expenses	121,847,000	85,272,000	313,140,000	251,900,000
Loss from operations	(31,739,000)	(9,680,000)	(50,288,000)	(35,661,000)
Other income, net	1,967,000	805,000	4,148,000	2,675,000
Loss before income taxes	(29,772,000)	(8,875,000)	(46,140,000)	(32,986,000)
Income tax benefit	(154,000)	(152,000)	(29,000)	(270,000)
Net loss	$ (29,618,000)	$ (8,723,000)	$ (46,111,000)	$ (32,716,000)
Net loss per common share, basic (in USD per share)	$ (0.41)	$ (0.12)	$ (0.64)	$ (0.46)
Net loss per common share, diluted (in USD per share)	$ (0.41)	$ (0.12)	$ (0.64)	$ (0.46)
Shares used to compute net loss per common share, basic (in shares)	72,804,770	71,656,694	72,488,601	71,456,008
Shares used to compute net loss per common share, diluted (in shares)	72,804,770	71,656,694	72,488,601	71,456,008
Testing revenue
Revenue:
Total revenue	$ 82,012,000	$ 64,577,000	$ 236,157,000	$ 180,275,000
Operating expenses:
Cost of revenue	21,827,000	19,816,000	64,808,000	55,923,000
Product revenue
Revenue:
Total revenue	4,020,000	3,314,000	11,923,000	9,401,000
Operating expenses:
Cost of revenue	2,436,000	1,981,000	6,913,000	5,202,000
Biopharmaceutical and other revenue
Revenue:
Total revenue	4,076,000	7,701,000	14,772,000	26,563,000
Operating expenses:
Cost of revenue	$ 3,347,000	$ 4,211,000	$ 11,806,000	$ 13,626,000

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (29,618)	$ (8,723)	$ (46,111)	$ (32,716)
Other comprehensive income (loss):
Change in currency translation adjustments	(6,414)	(16,016)	(2,851)	(38,983)
Net comprehensive loss	$ (36,032)	$ (24,739)	$ (48,962)	$ (71,699)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at beginning of period (in shares) at Dec. 31, 2021		71,123,000
Balance at beginning of period at Dec. 31, 2021	$ 1,096,514	$ 71	$ 1,468,683	$ (357,157)	$ (15,083)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of stock options and vesting of restricted stock units (in shares)		464,000
Issuance of common stock on exercise of stock options and vesting of restricted stock units	2,386	$ 1	2,385
Issuance of common stock under employee stock purchase plan (ESPP) (in shares)		155,000
Issuance of common stock under employee stock purchase plan (ESPP)	3,748		3,748
Tax portion of vested restricted stock units	(2,639)		(2,639)
Stock-based compensation expense (employee)	18,459		18,459
Stock-based compensation expense (non-employee)	11		11
Stock-based compensation expense (ESPP)	1,397		1,397
Net loss	(32,716)			(32,716)
Other comprehensive income (loss)	(38,983)				(38,983)
Balance at end of period (in shares) at Sep. 30, 2022		71,742,000
Balance at end of period at Sep. 30, 2022	1,048,177	$ 72	1,492,044	(389,873)	(54,066)
Balance at beginning of period (in shares) at Jun. 30, 2022		71,559,000
Balance at beginning of period at Jun. 30, 2022	1,064,151	$ 72	1,483,279	(381,150)	(38,050)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of stock options and vesting of restricted stock units (in shares)		110,000
Issuance of common stock on exercise of stock options and vesting of restricted stock units	623		623
Issuance of common stock under employee stock purchase plan (ESPP) (in shares)		73,000
Issuance of common stock under employee stock purchase plan (ESPP)	1,633		1,633
Tax portion of vested restricted stock units	(773)		(773)
Stock-based compensation expense (employee)	6,815		6,815
Stock-based compensation expense (ESPP)	467		467
Net loss	(8,723)			(8,723)
Other comprehensive income (loss)	(16,016)				(16,016)
Balance at end of period (in shares) at Sep. 30, 2022		71,742,000
Balance at end of period at Sep. 30, 2022	$ 1,048,177	$ 72	1,492,044	(389,873)	(54,066)
Balance at beginning of period (in shares) at Dec. 31, 2022	71,959,454	71,959,000
Balance at beginning of period at Dec. 31, 2022	$ 1,075,200	$ 72	1,500,191	(393,717)	(31,346)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of stock options and vesting of restricted stock units (in shares)		888,000
Issuance of common stock on exercise of stock options and vesting of restricted stock units	4,653	$ 1	4,652
Issuance of common stock under employee stock purchase plan (ESPP) (in shares)		147,000
Issuance of common stock under employee stock purchase plan (ESPP)	3,153		3,153
Tax portion of vested restricted stock units	(5,614)		(5,614)
Stock-based compensation expense (employee)	24,337		24,337
Stock-based compensation expense (ESPP)	1,292		1,292
Net loss	(46,111)			(46,111)
Other comprehensive income (loss)	$ (2,851)				(2,851)
Balance at end of period (in shares) at Sep. 30, 2023	72,993,670	72,994,000
Balance at end of period at Sep. 30, 2023	$ 1,054,059	$ 73	1,528,011	(439,828)	(34,197)
Balance at beginning of period (in shares) at Jun. 30, 2023		72,643,000
Balance at beginning of period at Jun. 30, 2023	1,082,718	$ 73	1,520,638	(410,210)	(27,783)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock on exercise of stock options and vesting of restricted stock units (in shares)		297,000
Issuance of common stock on exercise of stock options and vesting of restricted stock units	1,377		1,377
Issuance of common stock under employee stock purchase plan (ESPP) (in shares)		54,000
Issuance of common stock under employee stock purchase plan (ESPP)	1,179		1,179
Tax portion of vested restricted stock units	(2,446)		(2,446)
Stock-based compensation expense (employee)	6,842		6,842
Stock-based compensation expense (ESPP)	421		421
Net loss	(29,618)			(29,618)
Other comprehensive income (loss)	$ (6,414)				(6,414)
Balance at end of period (in shares) at Sep. 30, 2023	72,993,670	72,994,000
Balance at end of period at Sep. 30, 2023	$ 1,054,059	$ 73	$ 1,528,011	$ (439,828)	$ (34,197)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Operating activities
Net loss	$ (46,111)	$ (32,716)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	20,852	19,372
Loss on disposal of property, plant and equipment	136	72
Stock-based compensation	25,629	19,867
Deferred income taxes	(843)	(270)
Interest on end-of-term debt obligation	0	161
Noncash lease expense	3,130	2,487
Revaluation of acquisition-related contingent consideration	(5,500)	(80)
Effect of foreign currency on operations	657	1,563
Impairment loss	36,310	3,318
Changes in operating assets and liabilities:
Accounts receivable	4,650	(4,356)
Supplies and inventory	(1,636)	(2,841)
Prepaid expenses and other current assets	(1,578)	(25)
Other assets	(586)	160
Operating lease liabilities	(3,225)	(2,570)
Accounts payable	185	(325)
Accrued liabilities and deferred revenue	(3,400)	(6,026)
Net cash provided by (used in) operating activities	28,670	(2,209)
Investing activities
Purchase of short-term investments	(19,700)	(8,972)
Proceeds from sale of short-term investments	39,773	0
Proceeds from maturity of short-term investments	5,000	12,696
Purchases of property, plant and equipment	(7,464)	(6,677)
Net cash provided by (used in) investing activities	17,609	(2,953)
Financing activities
Payment of long-term debt	0	(94)
Payment of taxes on vested restricted stock units	(5,614)	(2,639)
Proceeds from the exercise of common stock options and employee stock purchases	7,806	6,134
Net cash provided by financing activities	2,192	3,401
Increase (decrease) in cash, cash equivalents and restricted cash	48,471	(1,761)
Effect of foreign currency on cash, cash equivalents and restricted cash	(134)	(1,324)
Net increase (decrease) in cash, cash equivalents and restricted cash	48,337	(3,085)
Cash, cash equivalents and restricted cash at beginning of period	154,996	173,946
Cash, cash equivalents and restricted cash at end of period	203,333	170,861
Supplementary cash flow information:
Purchases of property, plant and equipment included in accounts payable and accrued liability	424	15
Cash paid for tax	1,269	430
Cash and cash equivalents	202,463
Restricted cash	870
Total cash, cash equivalents and restricted cash	$ 203,333	$ 170,861

Organization, Description of Bu

Organization, Description of Business and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Description of Business and Summary of Significant Accounting Policies	Organization, Description of Business and Summary of Significant Accounting Policies Veracyte, Inc., or Veracyte, or the Company, is a global diagnostics company that empowers clinicians with the high-value insights they need to guide and assure patients at pivotal moments in the race to diagnose and treat cancer. Veracyte's high-performing tests enable clinicians to make more confident diagnostic, prognostic and treatment decisions, helping patients avoid unnecessary procedures and interventions, and speed time to appropriate treatment, thereby improving outcomes for patients all over the world. Veracyte was incorporated in the state of Delaware on August 15, 2006, as Calderome, Inc. Calderome operated as an incubator until early 2008. On March 4, 2008, the Company changed its name to Veracyte, Inc. The Company’s headquarters are in South San Francisco, California, and it also has operations in San Diego, California; Austin, Texas; and Marseille, France. The Company currently offers tests in thyroid cancer (Afirma); prostate cancer (Decipher Prostate); breast cancer (Prosigna); interstitial lung diseases (Envisia); and bladder cancer (Decipher Bladder). The Company’s Percepta Nasal Swab test is being run in its CLIA lab in support of clinical studies and its tests for kidney cancer and lymphoma are in development, the latter as a companion diagnostic. The Company serves global markets with two complementary models. In the United States, it offers laboratory developed tests, or LDTs, through its centralized, Clinical Laboratory Improvement Amendments of 1988, or CLIA, certified laboratories in South San Francisco and San Diego, California, supported by its cytopathology expertise in Austin, Texas. Additionally, primarily outside of the United States, the Company provides its Prosigna test to patients through distribution to laboratories and hospitals that can perform the tests locally as an IVD test that runs on the nCounter Analysis System. The Company expects to launch its Prosigna test on a next-generation sequencing platform in the future. Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of stockholders' equity for the three and nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results, stockholders' equity and cash flows for the periods presented. The condensed consolidated balance sheet as of December 31, 2022 has been derived from audited financial statements. The results for the three and nine months ended September 30, 2023 are not indicative of the results expected for the full year or any other period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company operates in one segment. The accompanying interim period condensed consolidated financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Reclassifications Certain prior period balances have been reclassified to conform to current period presentation of the Company’s consolidated financial statements and accompanying notes. Such reclassifications have no effect on previously reported results of operations, accumulated deficit, subtotals of operating, investing or financing cash flows or consolidated balance sheet totals; however, for the nine months ended September 30, 2022, the Company reclassified $3.3 million of impairment of long-term assets from the general and administrative caption in the condensed consolidated statements of operations. Use of Estimates The preparation of unaudited interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates include: revenue recognition; the useful lives of property, plant and equipment; the recoverability of long-lived assets; the incremental borrowing rates for leases; accounting for acquisitions; the estimation of the fair value of intangible assets and contingent consideration; stock based compensation; income tax uncertainties, including a valuation allowance for deferred tax assets; credit related losses on investments; and allowance for credit losses and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions. Concentrations of Credit Risk and Other Risks and Uncertainties The worldwide spread of coronavirus, or COVID-19, has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have. As a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. If the financial markets or the overall economy are impacted for an extended period, the Company’s liquidity, revenue, supplies, goodwill and intangibles may be adversely affected. The Company considers the effects, to the extent knowable, of the COVID-19 pandemic in developing its estimates. The majority of the Company’s cash and cash equivalents are deposited with two major financial institutions in the United States. Deposits in these institutions may exceed the amount of insurance provided on such deposits. The Company has not realized any losses on its deposits of cash and cash equivalents other than exchange rate losses related to foreign currency denominated accounts. Several of the components of the Company’s sample collection kits and test reagents, and the nCounter system and related diagnostic kits, are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, or are unable to provide the Company with reagents that perform to specifications, the Company could suffer delays in being able to deliver its diagnostic solutions, suffer a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results. Through September 30, 2023, the Company has derived most of its revenue from the sale of Decipher and Afirma testing. To date, Decipher and Afirma testing have been delivered primarily to physicians in the United States. The Company is also subject to credit risk from its accounts receivable related to its sales. Credit risk for accounts receivable from testing revenue is incorporated in testing revenue accrual rates as the Company assesses historical collection rates and current developments to determine accrual rates and amounts the Company will ultimately collect. The Company generally does not perform evaluations of customers’ financial condition for testing revenue and generally does not require collateral. The Company assesses credit risk and the amount of accounts receivable the Company will ultimately collect for product, biopharmaceutical and other revenue based on collection history, current developments and credit worthiness of the customer. The estimate of credit losses is not material at September 30, 2023. The Company’s third-party payers and other customers in excess of 10% of total revenue and their related revenue as a percentage of total revenue were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Medicare 32 % 31 % 32 % 31 % UnitedHealthcare 9 % 10 % 10 % 10 % 41 % 41 % 42 % 41 % The Company's significant third-party payers in excess of 10% of total accounts receivable and their related accounts receivable balance as a percentage of total accounts receivable were as follows: September 30, 2023 December 31, 2022 Medicare 16 % 14 % UnitedHealthcare 11 % 10 % Cash and Cash Equivalents The Company considers demand deposits in a bank, money market funds and highly liquid investments with an original maturity of 90 days or less to be cash equivalents. Short-Term Investments The Company's short-term investments consist of U.S. treasury securities with maturities at the time of purchase that were between 90 days and one year. The Company classifies these investments as held-to-maturity debt securities, which are reported at amortized cost. The amortization of discounts or premiums from the purchase of the securities are recognized as a component of interest income in other income (loss), net in the condensed consolidated statements of operations. Investments are initially recorded net of an allowance for expected credit losses, if any, which are remeasured each period and any impairments are recognized as an expense. Unrealized gains and losses are not recognized in income. As of both September 30, 2023 and December 31, 2022, no allowances for expected credit losses had been recorded and there have been no impairment or credit losses on the Company's short term investments. Restricted Cash The Company had deposits of $0.9 million and $0.7 million included in long-term assets as of September 30, 2023 and December 31, 2022, respectively, restricted from withdrawal and held by banks in the form of collateral for irrevocable standby letters of credit held as security for the Company's leases. Revenue Recognition The Company recognizes revenue in accordance with the provisions of ASC 606, Revenue from Contracts with Customers , or ASC 606. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has completed a service or transferred control of a product to the customer. In arrangements involving more than one service or good, each required service or good is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the service or good either on its own or together with other resources that are readily available and (ii) the service or good is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred which may be at a point in time or over time. Testing Revenue The Company bills for testing services at the time of test completion as defined by the delivery of test results. The Company recognizes revenue based on estimates of the amount that will ultimately be realized. In determining the amount to accrue for a delivered test, the Company considers factors such as payment history, payer coverage, whether there is a reimbursement contract between the payer and the Company, payment as a percentage of agreed upon rate (if applicable), amount paid per test and any current developments or changes that could impact reimbursement. These estimates require significant judgment by management. Actual results could differ from those estimates and assumptions. Product Revenue The Company's products consist of the Prosigna breast cancer assay, the nCounter Analysis System, related diagnostic kits, and services. Product revenue from diagnostic kits is generally recognized upon shipment. Product revenue from instruments is generally recognized when the instrument is ready for use by the end customer. Shipping and handling costs incurred for product shipments are included in product revenue. Revenue is presented net of the taxes that are collected from customers and remitted to governmental authorities. Biopharmaceutical and Other Revenue The Company enters into arrangements to license or provide access to its assets or services, including clinical services, research and development, contract manufacturing and development, as well as other services, which are classified under biopharmaceutical and other revenue. In prior years the Company also entered into arrangements for testing services. Such arrangements may require the Company to deliver various rights, manufactured diagnostic test kits, services and/or samples, including intellectual property rights/licenses and biopharmaceutical research and development services. The Company receives consideration in the form of upfront license fees; payments on delivery of data, test results or manufactured products; costs of service plus margin; and development and commercial performance milestone payments. The Company develops estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. The estimation of the stand-alone selling price may include independent evidence of market price, forecasted revenue or costs, development timelines, discount rates, and probabilities of technical and regulatory success. The Company evaluates each performance obligation to determine if the obligation can be satisfied at a point in time or over time, and it measures the services delivered to the collaborative partner which are periodically reviewed based on the progress of the related program. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. The effect of any change made to an estimated input component and, therefore revenue or expense recognized, would be recorded as a change in estimate. In addition, variable consideration must be evaluated to determine if it is constrained and, therefore, excluded from the transaction price. At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. Milestone payments that are not within either party’s control, such as non-operational developmental and regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of milestones that are within either party’s control, such as operational developmental milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. Revisions to the Company’s estimate of the transaction price may also result in negative revenue and earnings in the period of adjustment. One collaboration arrangement with milestone payments falls under the scope of ASC Topic 808, Collaborative Arrangements , or ASC 808. These milestone payments are recognized in the same manner as milestone payments from customers and are classified under biopharmaceutical and other revenue. Accounts receivable from biopharmaceutical and other revenue was $6.5 million at September 30, 2023 and $9.3 million at December 31, 2022. There was $2.2 million and $2.6 million of deferred revenue related to these agreements at September 30, 2023 and December 31, 2022, respectively. Revenue included in biopharmaceutical and other revenue for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Biopharmaceutical revenue $ 2,833 $ 6,368 $ 10,591 $ 20,820 Contract manufacturing and testing 1,243 1,333 4,181 5,743 Total $ 4,076 $ 7,701 $ 14,772 $ 26,563 Cost of Testing Revenue The components of the Company's cost of testing services are laboratory expenses, sample collection expenses, compensation expense, license fees and royalties, depreciation, other expenses such as equipment and laboratory supplies, and allocations of facility and information technology expenses. Costs associated with performing tests are expensed as the test is processed regardless of whether and when revenue is recognized with respect to that test. Cost of Product Revenue Cost of product revenue consists primarily of costs of purchasing instruments and diagnostic kits from third -party contract manufacturers, installation, service and packaging and delivery costs, and the Company's internal labor expenses. In addition, cost of product includes royalty costs for licensed technologies included in the Company’s products. Cost of product revenue for instruments and diagnostic kits is recognized in the period the related revenue is recognized. Shipping and handling costs incurred for product shipments are included in cost of product in the condensed consolidated statements of operations. Cost of Biopharmaceutical and Other Revenue Cost of biopharmaceutical and other revenue consists of costs of performing activities under arrangements that require the Company to license or provide access to its assets or services, including clinical services, research and development, contract manufacturing and development, as well as other services. Pension Liability The Company offers a defined benefit pension plan to certain non-U.S. employees of its Veracyte SAS subsidiary. As of both September 30, 2023 and December 31, 2022, the total pension obligation was $0.7 million and is included in other liabilities on the condensed consolidated balance sheets. Recent Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance in 2023 and such adoption had no material impact on its consolidated financial statements and related disclosures.

Net Loss Per Common Share

Net Loss Per Common Share	9 Months Ended
Net Loss Per Common Share	Sep. 30, 2023
Earnings Per Share [Abstract]
Net Loss Per Common Share	Net Loss Per Common Share Basic net loss per common share is calculated by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period determined using the treasury stock method. The following outstanding common stock equivalents have been excluded from diluted net loss per common share because their inclusion would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares of common stock subject to outstanding options 3,812,208 4,043,274 3,850,675 3,902,116 Employee stock purchase plan 31,947 39,177 33,455 40,094 Restricted stock units 2,792,972 2,114,223 2,709,493 1,929,696 Total common stock equivalents 6,637,127 6,196,674 6,593,623 5,871,906

Balance Sheet Components

Balance Sheet Components	9 Months Ended
Balance Sheet Components	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	Balance Sheet Components Goodwill Goodwill was $693.2 million and $695.9 million as of September 30, 2023 and December 31, 2022, respectively. The changes in the carrying amounts of goodwill during the nine months ended September 30, 2023 were due to foreign currency translation. The Company has not recorded any impairment related to goodwill. Intangible Assets, Net Intangible assets include finite-lived product technology, customer relationships, licenses and trade names and indefinite-lived in-process research and development. Intangible assets consisted of the following (in thousands of dollars): September 30, 2023 December 31, 2022 Weighted Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Percepta product technology $ 16,000 $ (9,067) $ 6,933 $ 16,000 $ (8,267) $ 7,733 6 Prosigna product technology 4,120 (1,053) 3,067 4,120 (847) 3,273 11 Prosigna customer relationships 2,430 (1,863) 567 2,430 (1,499) 931 1 nCounter Dx license — — — 46,880 (9,636) 37,244 0 LymphMark product technology 990 (542) 448 990 (436) 554 3 Decipher product technology 90,000 (22,984) 67,016 90,000 (16,234) 73,766 7 Decipher trade names 4,000 (2,043) 1,957 4,000 (1,443) 2,557 2 HalioDx developed technology 38,907 (8,409) 30,498 39,724 (5,899) 33,825 8 HalioDx customer relationships 4,546 (1,730) 2,816 4,602 (1,144) 3,458 5 HalioDx customer backlog 6,449 (3,484) 2,965 6,528 (2,303) 4,225 2 Total finite-lived intangibles 167,442 (51,175) 116,267 215,274 (47,708) 167,566 7.3 In-process research and development 7,300 — 7,300 7,300 — 7,300 Total intangible assets $ 174,742 $ (51,175) $ 123,567 $ 222,574 $ (47,708) $ 174,866 Acquisition-related intangibles are generally finite-lived and are carried at cost less accumulated amortization. Amortization of the finite-lived intangible assets is recognized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. During the three months ended September 30, 2023, the Company concluded it had a triggering event requiring assessment of impairment for certain of its long-lived assets in conjunction with management’s decision to adopt a multi-platform IVD strategy. Management believes that a multi-platform strategy will enable the Company to more rapidly reach more patients globally with its tests. As a result, the Company reviewed the long-lived assets for impairment and recorded a $34.9 million impairment charge associated with its nCounter Dx license finite-lived intangible asset. During the three months ended June 30, 2022, the Company concluded it had a triggering event requiring assessment of impairment for certain of its long-lived assets in conjunction with management’s decision to cease commercialization efforts related to the Company’s stand-alone Immunoscore Colon Dx commercial offering. As a result, the Company reviewed the long-lived assets for impairment and recorded a $3.3 million impairment charge associated with its HalioDx Immunoscore Colon Dx developed technology finite-lived intangible asset. Both impairments are recorded within impairment of long-lived assets on the condensed consolidated statement of operations. The Company assessed the impairment of the intangible assets using an income approach which involved significant unobservable inputs, which are Level III inputs, including revenue projections and cash flow projections. This method is consistent with the methods the Company employed in prior periods to value other long-lived assets. Amortization expense of $5.3 million and $5.2 million was recognized for the three months ended September 30, 2023 and 2022, respectively, and expense of $16.0 million and $16.1 million was recognized for the nine months ended September 30, 2023 and 2022, respectively. The estimated future aggregate amortization expense as of September 30, 2023 is as follows (in thousands of dollars): Year Ending December 31, Amounts 2023 remainder of year $ 4,518 2024 18,032 2025 16,923 2026 15,102 2027 14,504 Thereafter 47,188 Total $ 116,267 Supplies and Inventory As of September 30, 2023 and December 31, 2022, supplies and inventory consisted of $12.1 million and $10.2 million, respectively, of lab supplies and reagents consumed in the performance of testing services, and $3.8 million and $4.1 million, respectively, of inventory related to raw materials consumed in the contract manufacturing process, as well as finished and semi-finished components used in the assembly of diagnostic kits related to product sales. Accrued Liabilities Accrued liabilities consisted of the following (in thousands of dollars): September 30, 2023 December 31, 2022 Accrued compensation expenses $ 26,082 $ 30,637 Accrued other 8,746 7,137 Total accrued liabilities $ 34,828 $ 37,774

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements The Company records certain of its financial assets and liabilities at fair value. The accounting guidance for fair value provides a framework for measuring fair value and clarifies the definition of fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The accounting guidance establishes a three-tiered hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: • Level I: Inputs which include quoted prices in active markets for identical assets and liabilities; • Level II: Inputs other than Level I that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level III: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of certain financial instruments of the Company, including cash and cash equivalents, prepaid expenses and other current assets, accounts payable and accrued liabilities, approximate fair value due to their relatively short maturities. The fair value of the Company’s financial assets includes money market funds and deposits for leases of the Company's facilities. Money market funds, included in cash and cash equivalents in the accompanying condensed consolidated balance sheets, were $0.8 million and $131.2 million as of September 30, 2023 and December 31, 2022, respectively, and are Level I assets as described above. The deposits for the leases, included in restricted cash, were $0.9 million and $0.7 million as of September 30, 2023 and December 31, 2022, respectively, and are a Level I assets as described above. There were no transfers between Levels 1, 2 or 3 for the three and nine months ended September 30, 2023 and 2022. As part of the Company’s agreement to acquire the exclusive global diagnostic license to the nCounter Analysis System, the Company may pay up to an additional $10.0 million in cash, contingent upon first achievement or occurrence, by or on behalf of the Company, of the commercial launch of the first, second and third diagnostic tests for use on the nCounter multiplex analysis system. This contingency was valued at $6.1 million as of the acquisition date and is remeasured to fair value at each reporting date until the contingent consideration is settled, with the corresponding changes included in general and administrative expense in the Company's condensed consolidated statements of operations. During the three months ended September 30, 2023, the Company decided to adopt a multi-platform IVD strategy that will enable it to more rapidly reach more patients globally with its tests and therefore move away from commercializing several IVD tests on the nCounter Analysis System. As a result, as of September 30, 2023, this contingency was remeasured to $3.1 million. For the three and nine months ended September 30, 2023, reversals of expense of $5.2 million and $5.5 million, respectively, were recorded. For the three and nine months ended September 30, 2022, reversals of expense of zero and $0.1 million, respectively, were recorded. As of September 30, 2023, the achievement of one of the milestones is forecasted to occur within the next 12 months. As a result, $2.6 million of the contingent consideration is included in short term liabilities at September 30, 2023. The fair value of the contingent consideration includes inputs that are not observable in the market and thus represents a Level III financial liability. The estimation of the fair value of the contingent consideration is based on the present value of the expected payments calculated by assessing the likelihood of when the related milestones would be achieved and estimating the Company's borrowing rate. These estimates form the basis for making judgments about the carrying value of the contingent consideration that are not readily apparent from other sources. Changes to the forecasts for the achievement of the milestones and the borrowing rate can significantly affect the estimated fair value of the contingent consideration. As of September 30, 2023 and December 31, 2022, the Company calculated the estimated fair value of the milestones using the following significant unobservable inputs: Value or Range (Weighted-Average) Unobservable input September 30, 2023 December 31, 2022 Discount rate 8.4% 8.3% Probability of achievement 10% - 80% (69%) 80% - 100% (94%) Short-Term Investments Held-to-Maturity The Company's short-term investments consist of U.S. treasury securities with maturities, at the time of purchase, that were between 90 days and one year. The Company classifies these investments as held-to-maturity debt securities, which are reported at amortized cost, and are Level I assets as described above. As of September 30, 2023, the Company held no short-term investments and, as of December 31, 2022, short-term investments comprised U.S. treasury bills recorded at amortized cost of $24.6 million with a fair value of approximately $24.6 million. As of December 31, 2022, gross unrealized losses on short-term investments were insignificant. As part of its banking partner diversification efforts, the Company sold $40.0 million U.S. treasury bills with an amortized cost of $39.8 million, netting proceeds of $39.8 million and realized a gross gain of $13 thousand during the nine months ended September 30, 2023. No realized gains or losses on short-term investments were recognized in 2022.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Leases The Company leases office and laboratory facilities in South San Francisco and San Diego, California; Austin, Texas; Marseille, France; and Richmond, Virginia, and leases certain equipment under various non-cancelable lease agreements. The lease terms extend to January 2029 and contain extension of lease terms and expansion options. The leases have a weighted average remaining lease term of 2.9 years as of September 30, 2023. The Company had deposits of $0.9 million and $0.7 million included in long-term assets as of September 30, 2023 and December 31, 2022, respectively, restricted from withdrawal and held by banks in the form of collateral for irrevocable standby letters of credit held as security for the leases. The Company determined its operating lease liabilities using payments through their current expiration dates and a weighted average discount rate of 8.0% based on the rate that the Company would have to pay to borrow, on a collateralized basis, an amount equal to the lease payments in a similar economic environment. Operating lease liabilities along with the associated right-of-use assets are disclosed in the accompanying condensed consolidated balance sheets. After the adoption of ASC 842, Leases , or ASC 842, the Company classified its deferred rent for tenant improvements with its operating lease right-of-use assets on the consolidated balance sheets. Future minimum lease payments under non-cancelable operating leases as of September 30, 2023 are as follows (in thousands of dollars): Year Ending December 31, Amounts Remainder of 2023 $ 1,475 2024 5,617 2025 5,729 2026 1,412 2027 593 Thereafter 491 Total future minimum lease payments 15,317 Less: amount representing interest 1,590 Present value of future lease payments 13,727 Less: short-term lease liabilities 5,007 Long-term lease liabilities $ 8,720 The Company recognizes operating lease expense on a straight-line basis over the non-cancelable lease period. The following table summarizes operating lease expense and cash paid for amounts included in the measurement of lease liabilities (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease expense $ 1,429 $ 1,105 $ 3,830 $ 3,271 Cash paid for amounts included in the measurement of lease liabilities $ 1,367 $ 1,148 $ 3,906 $ 3,360 The company has leased laboratory equipment under various financing leases. The total right-of-use assets and total financing lease liabilities for these financing leases were $0.1 million and $0.1 million, respectively, as of September 30, 2023, and are included in property, plant and equipment, net other liabilities The Company’s wholly-owned foreign subsidiary has entered into an arrangement under which it expects to sign a lease agreement for facilities which are being constructed in Marseille, France. The lease will commence upon completion of the construction of the office building at which time the Company will record a lease liability and a corresponding ROU asset. The initial term of the lease will be twelve years with annual rent of approximately $1.3 million, which is subject to change based on final construction and excludes common area maintenance costs. Contingencies From time to time, the Company may be involved in legal proceedings arising in the ordinary course of business. The Company believes there is no litigation pending that could have, either individually or in the aggregate, a material impact on the Company's consolidated financial statements.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
Stockholders' Equity	Sep. 30, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Common Stock The Company had reserved shares of common stock for issuance as follows: September 30, 2023 December 31, 2022 Stock options and restricted stock units issued and outstanding 6,386,214 5,881,906 Stock options and restricted stock units available for grant under stock option plans 5,433,799 5,591,977 Common stock available for the Employee Stock Purchase Plan 1,189,513 1,335,353 Total 13,009,526 12,809,236

Components of Other Income

Components of Other Income	9 Months Ended
Components of Other Income	Sep. 30, 2023
Other Income and Expenses [Abstract]
Components of Other Income	Components of Other Income Other income, net consists of the following (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 French research tax credits $ 552 $ 962 $ 78 $ 2,790 Interest income 2,071 573 4,518 824 Interest expense (2) (61) (13) (193) Loss on currency revaluation (786) (597) (640) (673) Other 132 (72) 205 (73) $ 1,967 $ 805 $ 4,148 $ 2,675

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded income tax benefit of $0.2 million and $0.2 million for the three months ended September 30, 2023 and 2022, respectively, and benefit of $29.0 thousand and $0.3 million for the nine months ended September 30, 2023 and 2022, respectively. The Inflation Reduction Act of 2022 was signed into law August 16, 2022, and includes significant legislation addressing taxes, inflation, climate change and renewable energy incentives, and healthcare. Key tax provisions include a 15% corporate minimum tax, clean energy incentives, and a 1% excise tax on stock buybacks. The Company does not expect the provisions of such legislation to have any impact on the effective tax rate of the Company but will continue to evaluate the tax effects should any provisions become applicable to the Company.

Organization, Description of _2

Organization, Description of Business and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The Company’s condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of September 30, 2023, the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of comprehensive loss for the three and nine months ended September 30, 2023 and 2022, the condensed consolidated statements of stockholders' equity for the three and nine months ended September 30, 2023 and 2022, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2023 and 2022 are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which the Company considers necessary for a fair presentation of its financial position, operating results, stockholders' equity and cash flows for the periods presented. The condensed consolidated balance sheet as of December 31, 2022 has been derived from audited financial statements. The results for the three and nine months ended September 30, 2023 are not indicative of the results expected for the full year or any other period. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company operates in one segment. The accompanying interim period condensed consolidated financial statements and related financial information included in this Quarterly Report on Form 10-Q should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Use of Estimates	Use of Estimates The preparation of unaudited interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant items subject to such estimates include: revenue recognition; the useful lives of property, plant and equipment; the recoverability of long-lived assets; the incremental borrowing rates for leases; accounting for acquisitions; the estimation of the fair value of intangible assets and contingent consideration; stock based compensation; income tax uncertainties, including a valuation allowance for deferred tax assets; credit related losses on investments; and allowance for credit losses and contingencies. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that the Company believes are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenue and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and assumptions.
Concentrations of Credit Risk and Other Risks and Uncertainties	Concentrations of Credit Risk and Other Risks and Uncertainties The worldwide spread of coronavirus, or COVID-19, has created significant uncertainty in the global economy. There have been no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have. As a result, the ultimate impact of COVID-19 and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. If the financial markets or the overall economy are impacted for an extended period, the Company’s liquidity, revenue, supplies, goodwill and intangibles may be adversely affected. The Company considers the effects, to the extent knowable, of the COVID-19 pandemic in developing its estimates. The majority of the Company’s cash and cash equivalents are deposited with two major financial institutions in the United States. Deposits in these institutions may exceed the amount of insurance provided on such deposits. The Company has not realized any losses on its deposits of cash and cash equivalents other than exchange rate losses related to foreign currency denominated accounts. Several of the components of the Company’s sample collection kits and test reagents, and the nCounter system and related diagnostic kits, are obtained from single-source suppliers. If these single-source suppliers fail to satisfy the Company’s requirements on a timely basis, or are unable to provide the Company with reagents that perform to specifications, the Company could suffer delays in being able to deliver its diagnostic solutions, suffer a possible loss of revenue, or incur higher costs, any of which could adversely affect its operating results. Through September 30, 2023, the Company has derived most of its revenue from the sale of Decipher and Afirma testing. To date, Decipher and Afirma testing have been delivered primarily to physicians in the United States. The Company is also subject to credit risk from its accounts receivable related to its sales. Credit risk for accounts receivable from testing revenue is incorporated in testing revenue accrual rates as the Company assesses historical collection rates and current developments to determine accrual rates and amounts the Company will ultimately collect. The Company generally does not perform evaluations of customers’ financial condition for testing revenue and generally does not require collateral. The Company assesses credit risk and the amount of accounts receivable the Company will ultimately collect for product, biopharmaceutical and other revenue based on collection history, current developments and credit worthiness of the customer. The estimate of credit losses is not material at September 30, 2023.
Cash and Cash Equivalents	Cash and Cash Equivalents
Short-Term Investments	Short-Term Investments
Revenue Recognition and Cost of Revenue	Revenue Recognition The Company recognizes revenue in accordance with the provisions of ASC 606, Revenue from Contracts with Customers , or ASC 606. This process involves identifying the contract with a customer, determining the performance obligations in the contract, determining the contract price, allocating the contract price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and is separately identified in the contract. Performance obligations are considered satisfied once the Company has completed a service or transferred control of a product to the customer. In arrangements involving more than one service or good, each required service or good is evaluated to determine whether it qualifies as a distinct performance obligation based on whether (i) the customer can benefit from the service or good either on its own or together with other resources that are readily available and (ii) the service or good is separately identifiable from other promises in the contract. The consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price. The estimated selling price of each deliverable reflects the Company's best estimate of what the selling price would be if the deliverable was regularly sold by the Company on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is not available. The consideration allocated to each distinct performance obligation is recognized as revenue when control is transferred which may be at a point in time or over time. Testing Revenue The Company bills for testing services at the time of test completion as defined by the delivery of test results. The Company recognizes revenue based on estimates of the amount that will ultimately be realized. In determining the amount to accrue for a delivered test, the Company considers factors such as payment history, payer coverage, whether there is a reimbursement contract between the payer and the Company, payment as a percentage of agreed upon rate (if applicable), amount paid per test and any current developments or changes that could impact reimbursement. These estimates require significant judgment by management. Actual results could differ from those estimates and assumptions. Product Revenue The Company's products consist of the Prosigna breast cancer assay, the nCounter Analysis System, related diagnostic kits, and services. Product revenue from diagnostic kits is generally recognized upon shipment. Product revenue from instruments is generally recognized when the instrument is ready for use by the end customer. Shipping and handling costs incurred for product shipments are included in product revenue. Revenue is presented net of the taxes that are collected from customers and remitted to governmental authorities. Biopharmaceutical and Other Revenue The Company enters into arrangements to license or provide access to its assets or services, including clinical services, research and development, contract manufacturing and development, as well as other services, which are classified under biopharmaceutical and other revenue. In prior years the Company also entered into arrangements for testing services. Such arrangements may require the Company to deliver various rights, manufactured diagnostic test kits, services and/or samples, including intellectual property rights/licenses and biopharmaceutical research and development services. The Company receives consideration in the form of upfront license fees; payments on delivery of data, test results or manufactured products; costs of service plus margin; and development and commercial performance milestone payments. The Company develops estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation which determines how the transaction price is allocated among the performance obligations. The estimation of the stand-alone selling price may include independent evidence of market price, forecasted revenue or costs, development timelines, discount rates, and probabilities of technical and regulatory success. The Company evaluates each performance obligation to determine if the obligation can be satisfied at a point in time or over time, and it measures the services delivered to the collaborative partner which are periodically reviewed based on the progress of the related program. For licenses that are bundled with other promises, the Company utilizes judgment to assess the nature of the combined performance obligation to determine whether the combined performance obligation is satisfied over time or at a point in time. The effect of any change made to an estimated input component and, therefore revenue or expense recognized, would be recorded as a change in estimate. In addition, variable consideration must be evaluated to determine if it is constrained and, therefore, excluded from the transaction price. At the inception of each arrangement that includes milestone payments (variable consideration), the Company evaluates whether the milestones are considered probable of being reached and estimates the amount to be included in the transaction price. Milestone payments that are not within either party’s control, such as non-operational developmental and regulatory approvals, are generally not considered probable of being achieved until those approvals are received. At the end of each reporting period, the Company re-evaluates the probability of achievement of milestones that are within either party’s control, such as operational developmental milestones and any related constraint, and if necessary, adjusts its estimate of the overall transaction price. Any such adjustments are recorded on a cumulative catch-up basis, which would affect revenue and earnings in the period of adjustment. Revisions to the Company’s estimate of the transaction price may also result in negative revenue and earnings in the period of adjustment. One collaboration arrangement with milestone payments falls under the scope of ASC Topic 808, Collaborative Arrangements , or ASC 808. These milestone payments are recognized in the same manner as milestone payments from customers and are classified under biopharmaceutical and other revenue. Accounts receivable from biopharmaceutical and other revenue was $6.5 million at September 30, 2023 and $9.3 million at December 31, 2022. There was $2.2 million and $2.6 million of deferred revenue related to these agreements at September 30, 2023 and December 31, 2022, respectively. Revenue included in biopharmaceutical and other revenue for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Biopharmaceutical revenue $ 2,833 $ 6,368 $ 10,591 $ 20,820 Contract manufacturing and testing 1,243 1,333 4,181 5,743 Total $ 4,076 $ 7,701 $ 14,772 $ 26,563 Cost of Testing Revenue The components of the Company's cost of testing services are laboratory expenses, sample collection expenses, compensation expense, license fees and royalties, depreciation, other expenses such as equipment and laboratory supplies, and allocations of facility and information technology expenses. Costs associated with performing tests are expensed as the test is processed regardless of whether and when revenue is recognized with respect to that test. Cost of Product Revenue Cost of product revenue consists primarily of costs of purchasing instruments and diagnostic kits from third -party contract manufacturers, installation, service and packaging and delivery costs, and the Company's internal labor expenses. In addition, cost of product includes royalty costs for licensed technologies included in the Company’s products. Cost of product revenue for instruments and diagnostic kits is recognized in the period the related revenue is recognized. Shipping and handling costs incurred for product shipments are included in cost of product in the condensed consolidated statements of operations. Cost of Biopharmaceutical and Other Revenue Cost of biopharmaceutical and other revenue consists of costs of performing activities under arrangements that require the Company to license or provide access to its assets or services, including clinical services, research and development, contract manufacturing and development, as well as other services.
Pension Liability	Pension LiabilityThe Company offers a defined benefit pension plan to certain non-U.S. employees of its Veracyte SAS subsidiary.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers , which requires entities to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 2014-09, Revenue from Contracts with Customers (Topic 606). The update will generally result in an entity recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date rather than at fair value. The new standard is effective on a prospective basis for fiscal years beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance in 2023 and such adoption had no material impact on its consolidated financial statements and related disclosures.

Organization , Description of B

Organization , Description of Business and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Third-party Payers as a Percentage of Total	The Company’s third-party payers and other customers in excess of 10% of total revenue and their related revenue as a percentage of total revenue were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Medicare 32 % 31 % 32 % 31 % UnitedHealthcare 9 % 10 % 10 % 10 % 41 % 41 % 42 % 41 % The Company's significant third-party payers in excess of 10% of total accounts receivable and their related accounts receivable balance as a percentage of total accounts receivable were as follows: September 30, 2023 December 31, 2022 Medicare 16 % 14 % UnitedHealthcare 11 % 10 %
Schedule of Revenue	Revenue included in biopharmaceutical and other revenue for the three and nine months ended September 30, 2023 and 2022 was as follows (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Biopharmaceutical revenue $ 2,833 $ 6,368 $ 10,591 $ 20,820 Contract manufacturing and testing 1,243 1,333 4,181 5,743 Total $ 4,076 $ 7,701 $ 14,772 $ 26,563

Net Loss Per Common Share (Tabl

Net Loss Per Common Share (Tables)	9 Months Ended
Net Loss Per Common Share (Tables)	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Outstanding Common Stock Equivalents Excluded From Diluted Net Loss Per Common Share	The following outstanding common stock equivalents have been excluded from diluted net loss per common share because their inclusion would be anti-dilutive: Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Shares of common stock subject to outstanding options 3,812,208 4,043,274 3,850,675 3,902,116 Employee stock purchase plan 31,947 39,177 33,455 40,094 Restricted stock units 2,792,972 2,114,223 2,709,493 1,929,696 Total common stock equivalents 6,637,127 6,196,674 6,593,623 5,871,906

Balance Sheet Components (Table

Balance Sheet Components (Tables)	9 Months Ended
Balance Sheet Components (Tables)	Sep. 30, 2023
Balance Sheet Related Disclosures [Abstract]
Schedule of Intangible Assets	Intangible assets consisted of the following (in thousands of dollars): September 30, 2023 December 31, 2022 Weighted Average Remaining Amortization Period (Years) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Percepta product technology $ 16,000 $ (9,067) $ 6,933 $ 16,000 $ (8,267) $ 7,733 6 Prosigna product technology 4,120 (1,053) 3,067 4,120 (847) 3,273 11 Prosigna customer relationships 2,430 (1,863) 567 2,430 (1,499) 931 1 nCounter Dx license — — — 46,880 (9,636) 37,244 0 LymphMark product technology 990 (542) 448 990 (436) 554 3 Decipher product technology 90,000 (22,984) 67,016 90,000 (16,234) 73,766 7 Decipher trade names 4,000 (2,043) 1,957 4,000 (1,443) 2,557 2 HalioDx developed technology 38,907 (8,409) 30,498 39,724 (5,899) 33,825 8 HalioDx customer relationships 4,546 (1,730) 2,816 4,602 (1,144) 3,458 5 HalioDx customer backlog 6,449 (3,484) 2,965 6,528 (2,303) 4,225 2 Total finite-lived intangibles 167,442 (51,175) 116,267 215,274 (47,708) 167,566 7.3 In-process research and development 7,300 — 7,300 7,300 — 7,300 Total intangible assets $ 174,742 $ (51,175) $ 123,567 $ 222,574 $ (47,708) $ 174,866
Schedule of Future Aggregate Amortization Expense	The estimated future aggregate amortization expense as of September 30, 2023 is as follows (in thousands of dollars): Year Ending December 31, Amounts 2023 remainder of year $ 4,518 2024 18,032 2025 16,923 2026 15,102 2027 14,504 Thereafter 47,188 Total $ 116,267
Schedule of Accrued Liabilities	Accrued liabilities consisted of the following (in thousands of dollars): September 30, 2023 December 31, 2022 Accrued compensation expenses $ 26,082 $ 30,637 Accrued other 8,746 7,137 Total accrued liabilities $ 34,828 $ 37,774

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurement Inputs and Valuation Techniques	As of September 30, 2023 and December 31, 2022, the Company calculated the estimated fair value of the milestones using the following significant unobservable inputs: Value or Range (Weighted-Average) Unobservable input September 30, 2023 December 31, 2022 Discount rate 8.4% 8.3% Probability of achievement 10% - 80% (69%) 80% - 100% (94%)

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
Commitments and Contingencies (Tables)	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments Under Non-cancelable Operating Leases	Future minimum lease payments under non-cancelable operating leases as of September 30, 2023 are as follows (in thousands of dollars): Year Ending December 31, Amounts Remainder of 2023 $ 1,475 2024 5,617 2025 5,729 2026 1,412 2027 593 Thereafter 491 Total future minimum lease payments 15,317 Less: amount representing interest 1,590 Present value of future lease payments 13,727 Less: short-term lease liabilities 5,007 Long-term lease liabilities $ 8,720
Schedule of Operating Lease Expense and Measurement Of Lease Liabilities	The following table summarizes operating lease expense and cash paid for amounts included in the measurement of lease liabilities (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease expense $ 1,429 $ 1,105 $ 3,830 $ 3,271 Cash paid for amounts included in the measurement of lease liabilities $ 1,367 $ 1,148 $ 3,906 $ 3,360

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
Stockholders' Equity (Tables)	Sep. 30, 2023
Equity [Abstract]
Schedule of Reserved Shares of Common Stock for Issuance	The Company had reserved shares of common stock for issuance as follows: September 30, 2023 December 31, 2022 Stock options and restricted stock units issued and outstanding 6,386,214 5,881,906 Stock options and restricted stock units available for grant under stock option plans 5,433,799 5,591,977 Common stock available for the Employee Stock Purchase Plan 1,189,513 1,335,353 Total 13,009,526 12,809,236

Components of Other Income (Tab

Components of Other Income (Tables)	9 Months Ended
Components of Other Income (Tables)	Sep. 30, 2023
Other Income and Expenses [Abstract]
Schedule of Other Income, net	Other income, net consists of the following (in thousands of dollars): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 French research tax credits $ 552 $ 962 $ 78 $ 2,790 Interest income 2,071 573 4,518 824 Interest expense (2) (61) (13) (193) Loss on currency revaluation (786) (597) (640) (673) Other 132 (72) 205 (73) $ 1,967 $ 805 $ 4,148 $ 2,675

Organization, Description of _3

Organization, Description of Business and Summary of Significant Accounting Policies - Narrative (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) segment	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)
Class of Stock [Line Items]
Number of operating segments \| segment			1
Impairment of long-lived assets	$ 34,900,000	$ 0	$ 36,310,000	$ 3,318,000
Short-term investments, allowance for expected credit losses	0		0		$ 0
Deposits	900,000		900,000		700,000
Accounts receivable	39,297,000		39,297,000		44,021,000
Pension obligation	700,000		700,000		700,000
Biopharmaceutical and other revenue
Class of Stock [Line Items]
Accounts receivable	6,500,000		6,500,000		9,300,000
Deferred revenue	$ 2,200,000		$ 2,200,000		$ 2,600,000
Impairment Of Long-Term Assets
Class of Stock [Line Items]
Impairment of long-lived assets				$ 3,300,000

Organization, Description of _4

Organization, Description of Business and Summary of Significant Accounting Policies - Schedule of Third-party Payers And Other Customers (Details) - Customer concentration risk	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenue \| Medicare
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk	32%	31%	32%	31%
Revenue \| UnitedHealthcare
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk	9%	10%	10%	10%
Revenue \| Customers Representing >10% Of Total Revenue
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk	41%	41%	42%	41%
Accounts receivable \| Medicare
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk			16%		14%
Accounts receivable \| UnitedHealthcare
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk			11%		10%

Organization, Description of _5

Organization, Description of Business and Summary of Significant Accounting Policies - Schedule of Biopharmaceutical and Other Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 90,108	$ 75,592	$ 262,852	$ 216,239
Biopharmaceutical revenue
Disaggregation of Revenue [Line Items]
Total revenue	2,833	6,368	10,591	20,820
Contract manufacturing and testing
Disaggregation of Revenue [Line Items]
Total revenue	1,243	1,333	4,181	5,743
Biopharmaceutical and other revenue
Disaggregation of Revenue [Line Items]
Total revenue	$ 4,076	$ 7,701	$ 14,772	$ 26,563

Net Loss Per Common Share (Deta

Net Loss Per Common Share (Details) - shares	3 Months Ended		9 Months Ended
Net Loss Per Common Share (Details) - shares	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Common stock equivalents (in shares)	6,637,127	6,196,674	6,593,623	5,871,906
Shares of common stock subject to outstanding options
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Common stock equivalents (in shares)	3,812,208	4,043,274	3,850,675	3,902,116
Employee stock purchase plan
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Common stock equivalents (in shares)	31,947	39,177	33,455	40,094
Restricted stock units
Outstanding shares of common stock equivalents that have been excluded from diluted net loss per common share
Common stock equivalents (in shares)	2,792,972	2,114,223	2,709,493	1,929,696

Balance Sheet Components - Narr

Balance Sheet Components - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill	$ 693,176		$ 693,176		$ 695,891
Impairment of long-lived assets	34,900	$ 0	36,310	$ 3,318
Intangible asset amortization	5,337	$ 5,213	16,007	16,090
Lab supplies and reagents consumed	12,100		12,100		10,200
Raw materials and finished diagnostic kits	3,800		$ 3,800		$ 4,100
nCounter Dx license
Finite-Lived Intangible Assets [Line Items]
Impairment of long-lived assets	$ 34,900
HalioDx Immunoscore Colon Dx Developed Technology
Finite-Lived Intangible Assets [Line Items]
Impairment of long-lived assets				$ 3,300

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 167,442	$ 215,274
Accumulated Amortization	(51,175)	(47,708)
Total	116,267	167,566
Indefinite-lived intangible assets	7,300	7,300
Total intangible assets	174,742	222,574
Intangible assets, net	$ 123,567	174,866
Weighted Average Remaining Amortization Period (Years)	7 years 3 months 18 days
Percepta product technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 16,000	16,000
Accumulated Amortization	(9,067)	(8,267)
Total	$ 6,933	7,733
Weighted Average Remaining Amortization Period (Years)	6 years
Prosigna product technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,120	4,120
Accumulated Amortization	(1,053)	(847)
Total	$ 3,067	3,273
Weighted Average Remaining Amortization Period (Years)	11 years
Prosigna customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,430	2,430
Accumulated Amortization	(1,863)	(1,499)
Total	$ 567	931
Weighted Average Remaining Amortization Period (Years)	1 year
nCounter Dx license
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 0	46,880
Accumulated Amortization	0	(9,636)
Total	0	37,244
LymphMark product technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	990	990
Accumulated Amortization	(542)	(436)
Total	$ 448	554
Weighted Average Remaining Amortization Period (Years)	3 years
Decipher product technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 90,000	90,000
Accumulated Amortization	(22,984)	(16,234)
Total	$ 67,016	73,766
Weighted Average Remaining Amortization Period (Years)	7 years
Decipher trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,000	4,000
Accumulated Amortization	(2,043)	(1,443)
Total	$ 1,957	2,557
Weighted Average Remaining Amortization Period (Years)	2 years
HalioDx developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 38,907	39,724
Accumulated Amortization	(8,409)	(5,899)
Total	$ 30,498	33,825
Weighted Average Remaining Amortization Period (Years)	8 years
HalioDx customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,546	4,602
Accumulated Amortization	(1,730)	(1,144)
Total	$ 2,816	3,458
Weighted Average Remaining Amortization Period (Years)	5 years
HalioDx customer backlog
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,449	6,528
Accumulated Amortization	(3,484)	(2,303)
Total	$ 2,965	$ 4,225
Weighted Average Remaining Amortization Period (Years)	2 years

Balance Sheet Components - Sc_2

Balance Sheet Components - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
2023 remainder of year	$ 4,518
2024	18,032
2025	16,923
2026	15,102
2027	14,504
Thereafter	47,188
Total	$ 116,267	$ 167,566

Balance Sheet Components - Sc_3

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]
Accrued compensation expenses	$ 26,082	$ 30,637
Accrued other	8,746	7,137
Total accrued liabilities	$ 34,828	$ 37,774

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
Fair Value Measurements - Narrative (Details) - USD ($)	Dec. 03, 2019	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Deposits for leases		$ 900,000		$ 900,000		$ 700,000
Acquisition-related contingent consideration, net of current portion		484,000		484,000		2,498,000
Short term contingent considerations		2,574,000		2,574,000		6,060,000
Short-term investments		0		0		24,605,000
Short-term investments, fair value						24,600,000
Sale of short-term investments				40,000,000
Amortized cost of short-term investments sold				39,800,000
Proceeds from sale of short-term investments				39,773,000	$ 0
Realized gains (losses) from sale of short-term investments				13,000		0
NanoString
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Additional cash to be paid	$ 10,000,000
Acquisition-related contingent consideration, net of current portion	$ 6,100,000	3,100,000		3,100,000
Contingent consideration, changes in fair value		(5,200,000)	$ 0	(5,500,000)	$ (100,000)
Short term contingent considerations		2,600,000		2,600,000
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		$ 800,000		$ 800,000		$ 131,200,000

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value Measurement Input (Details)	Sep. 30, 2023	Dec. 31, 2022
Discount rate
Measurement input	0.084	0.083
Probability of achievement \| Minimum
Measurement input	0.10	0.80
Probability of achievement \| Maximum
Measurement input	0.80	1
Probability of achievement \| Weighted Average
Measurement input	0.69	0.94

Commitments and Contingencies -

Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Operating Leases
Weighted average remaining lease term	2 years 10 months 24 days
Deposits	$ 0.9	$ 0.7
Discount rate	8%
Finance right-of-use assets	$ 0.1	$ 0.4
Finance lease, right-of-use asset, statement of financial position [Extensible List]	Property, plant and equipment, net	Property, plant and equipment, net
Finance lease liabilities	$ 0.1	$ 0.4
Finance lease, liability, statement of financial position [Extensible List]	Other liabilities	Other liabilities
Facilities in Marseille, France
Operating Leases
Term of lease	12 years
Annual rent	$ 1.3

Commitments and Contingencies_2

Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Dec. 31, 2022
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2023	$ 1,475
2024	5,617
2025	5,729
2026	1,412
2027	593
Thereafter	491
Total future minimum lease payments	15,317
Less: amount representing interest	1,590
Present value of future lease payments	13,727
Less: short-term lease liabilities	5,007	$ 4,070
Long-term lease liabilities	$ 8,720	$ 10,648

Commitments and Contingencies_3

Commitments and Contingencies - Schedule of Operating Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Operating lease expense	$ 1,429	$ 1,105	$ 3,830	$ 3,271
Cash paid for amounts included in the measurement of lease liabilities	$ 1,367	$ 1,148	$ 3,906	$ 3,360

Stockholders' Equity (Details)

Stockholders' Equity (Details) - shares	Sep. 30, 2023	Dec. 31, 2022
Class of Stock [Line Items]
Total number of shares reserved for issuance (in shares)	13,009,526	12,809,236
Shares of common stock subject to outstanding options
Class of Stock [Line Items]
Stock options and restricted stock units issued and outstanding (in shares)	6,386,214	5,881,906
Shares available for issuance (in shares)	5,433,799	5,591,977
Common stock available for the Employee Stock Purchase Plan
Class of Stock [Line Items]
Shares available for issuance (in shares)	1,189,513	1,335,353

Components of Other Income (Det

Components of Other Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Other Income and Expenses [Abstract]
French research tax credits	$ 552	$ 962	$ 78	$ 2,790
Interest income	2,071	573	4,518	824
Interest expense	(2)	(61)	(13)	(193)
Loss on currency revaluation	(786)	(597)	(640)	(673)
Other	132	(72)	205	(73)
Other income, net	$ 1,967	$ 805	$ 4,148	$ 2,675

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income tax benefit	$ (154,000)	$ (152,000)	$ (29,000)	$ (270,000)