Veracyte (VCYT) 30 Jul 212021 Q2 Earnings call transcript

Good afternoon ladies and gentlemen. Thank you for standing by. And welcome to the Veracyte's Second Quarter 2021 Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. advised conference be being Please Instructions] that is today's recorded. [Operator hand I'd over now Instructions] the like [Operator Ms. to conference speaker to your Morris, of Tracy President and Vice Relations. Investor Corporate Communications Veracyte's ahead. go Please

second thanks Bonnie Thank available Rebecca Chief earlier for discussion you, our Chambers, our financial XXXX Executive business issued are our Veracyte news afternoon me along quarter results. of quarter Financial results. Anderson, investor second afternoon Chief Marc our Sherry. release everyone Stapley, of a press joining today Veracyte's for Good us a With This today veracyte.com. and financial section this and detailing release website financial Officer; in Chairwoman. and Executive with relations at our a presentation the are Officer;

I you that remind begin, we statements that this will to like may we defined include would laws. statements as securities call forward-looking during make applicable various under Before

turn uncertainties the uncertainties prove call Securities including CEO. business differ, results cause could refer to To statements correct. you obligation the our can will understand over recent they under our further Forms not with and are to the during Veracyte's we most Veracyte's performance to give Stapley, I to or and subject better actual that any provide now and and updates XX-K. Forward-looking risks documents the will filed to that Veracyte we Commission, Marc that the to are the Exchange and on assurance company trends XX-Q risks Further, quarter. be no

And joining Tracy. today. for everyone thanks you, Thank us

over Chairwoman, improve acknowledge just and and with bringing that enjoyed global the And I'm I highly first quarterly the to every for grew to results, into patients strong CEO, very a of their team would for last clinically at continue into test very Bonnie me. closely and a and record excited cancer This all over thank months. Executive step outcomes global working track a Veracyte her for a has diagnostics concept Anderson. journey. impactful outgoing to quarter our from Bonnie grow genomic have the company Bonnie remarkable into world to leader. differentiated like been with market encouraging Veracyte incoming to jumping few our diagnostics with Before partner I a

outstanding strategic prior Our second over vision. compelling we quarter an team execute of million, our delivered sequentially. XX% $XX.X growth to We and on reported as of revenue increase continue XXX% year

that of in the helped and advancement in thyroid on of we become accomplishments have introduction surgery the diagnosis. period XX% company HalioDx at are driven thyroid tests bolstered our one global up standard Afirma, patients are was Our XXXX same sequentially. our an approximately Beginning centered year I the increased access and specifically total Decipher share drive execution quarter the believe QX and beyond. thyroid that XXX,XXX the impressive commercial These genomic XX,XXX up outcome to This the was set commercial pipeline evidence growth, unnecessary areas global on update where driving second XXXX. us over strong on growth, for and volume test has that development, since businesses. commercial efforts build urology product including key during brand. integration nicely estimate commercialization last its this compared and physician our care to up was we We with businesses to and half customers. focused as cancer We avoid expansion, to XXX% of by progress by Veracyte the like would under our to our the primarily during

by from year-over-year, Afirma and to strong as of customer pandemic the XXX% and increase engagement. an effects by with has new patient decisions product Prostate increase Prostate the XX% driven record than in $XX a relatively revenue growth in been in revenue received test quickly led line. sequentially QX Decipher continue to approximately Medicare nearly Adoption of the million a managed late recovered coverage growth testing more part in Decipher see the propelled We care for quarter, XXXX. wins this business These

XX in to national test nationwide. Prostate covered million new to eligible contract plans QX, late major network patients Additionally, the plan we among a signed benefits in Decipher with a and health the make approximately members

also physicians including Classifier, improve idiopathic still pulmonology Genomic more slowly, which lung new to Percepta lung our in prior number performing continues accounts momentum diagnosis with pandemic. including QX. from of business cancer used of diagnostic bronchoscopies We interstitial fibrosis. added to testing to fewer recover, is the for large gained Envisia disease, Our several the a institutions COVID-XX pulmonary although

coverage breast Prosigna We reimbursing decision will as other which policies. breast reports began the test recently Germany and continues for that in cancer Our pleased that cancer inform to adopt EU countries improve business The well. EU, can subtypes treatment further were intrinsic making. optimistic similarly Prosigna

not Additionally, patient barters means locally need its do to samples be overseas. send ability to the performed

better for presentation finding standard clinical risk susceptible shown lung Our men. Society where African-American data growth five the aggressive Meeting reflecting we in demonstrated while of disease. previous the to new to the also such clinical abstracts cancer. forms the findings VANDAAM American the factors men study. among presentation data across next and physicians ongoing growing further This be African-American test test the ATS same portfolio prospective shared thought the tailor accuracy the as prostate given cancer strategic from an at describing meeting, Results our ILD decisions demonstrating that from These on confirmed in Highlights products. than driver ASCO aggressive significant predicts test with prostate or men Envisia interstitial progress men our of the May, oral Thoracic Decipher prominent information abstracts also traction prognostic These performance non-African-American important is made include development, evidence researchers Prostate with is an leaders. utility disease institutions included of help UCLA. test this as can has treatment more and At Annual

sponsored apalutamide, analysis of Additionally, estimated patients identify from was JAMA who androgen the in a inhibitor for physicians most can in well The Prostate lacked Oncology, which to benefit biomarkers. Decipher patients Genomic prostate additional test receptor trials, NCI population seven Phase signaling prominence likely of previously a the ADT. prospective to randomized in suggesting July, men study inclusion. second-generation controlled on have are by or in data many consists the SPARTAN and of with This test a that Decipher in cancer, genomic an XX addition massive Prostate for in published driven study amount those the currently clinical sample being prospective every trials, quality locally our Decipher in investigated Prostate whom collect as by Prostate testing we worldwide is This the genomic require retrospective III advanced is of therapy as Classifier clinical grid repository. androgen-deprivation trials which of is Decipher XXX,XXX

of we activities to the Moving remain and to third good the driver, our on pipeline, focused quarter strategic new launch products. key made advance in progress our growth

to the as risk changer people now potential among we game will improve lung confidently guiding are nodules. to guide further fourth to to excited risk risk detection, Swab soon meeting cancer post tools in they standard will procedures, multicenter lung candidate they pleased that suspicious can workup with that of the high who and remain believe at and the that Medicare non-invasive launch ASCO enable are large limited has We Swab early to to tell the diagnostic coverage, market. XX Nasal eligible nodules a available all physicians a the for approximately were we patients in suspicious very physicians high same We believe be this very those their while who certainty test unserved for us particularly in in screening. Today, current million present as showing sites needed US payer not validation the to our to with XX care patients this doctors classified intermediate a lung assemble for low are plan a to cancer, cancer At to cancer months We the for are a early care. June, secure data launch. which in the private Percepta of test is Nasal likely making lack believe test granted to will assessment Swab begin further test data very can which of pivotal missed We Percepta confident avoid cancer. to Percepta the objective XX quarter, have enable will clinical be Nasal annual number time, for patients be with

diagnosis. recent we At meetings, for each ATS is for help This the are variants ability lung pipeline Genomic and make intended same our patients approximately this samples months the with this physicians in eligible of XXX,XXX demonstrating physicians' CLIA detects to can small samples for workflow and the year. treatment test post commercial treatment our test Medicare Another accurately Atlas informed presented biopsy used post Genomic using and cancer lab thereafter, key product which diagnosis. with profiling the genomic known is We end gene appropriate ASCO Percepta decisions that anticipate acquired receiving Atlas, to compared plan the the comprehensive data finalize launch to simplify six of genomic profiling other in to the Percepta accelerate the few shortly coverage tests launch. year and XX the time by commercial within to

part will Nasal the We include Genomic which Genomic will of cancer also offer Classifier. lung Atlas Percepta Swab as our our portfolio, and comprehensive Sequencing

XX,XXX which Decipher a markets. our XX,XXX now ATS the product ensures Envisia enabled Meridian payments more helps received is indicated next United States, fully also use maintained approximately these MolDX type treatment the of is with methodically in data nCounter Medicare policies. in and test beneficiaries. RNA available place. for genomic running that is for decisions through the system. the our showing bladder cancer. a Medicare than lab. third the will of in manage we than Healthcare reimbursement We're policies is CLIA at Our lab quarter coverage the with XX international diagnosed sequencing nation's bladder instrument Solutions, recently including the test typing have for This decision classifier plan patients the commercial to meeting order on performance The currently Medicare We that on is to the when the Classifier Genomic for during working the nCounter launch Decipher the cancer clinical platform We Bladder adopted more sub In CLIA disease unbelt individuals analysis drive on million for test, are new Bladder which of annually, Medicare benefit program, our the final from covered administers the physicians tool is

Given our and future as pending Envisia. that our on the HalioDx acquisition, revisiting advance Percepta Nasal such launch Swab while same manufacturing advanced count priorities, Decipher parallel we to first begin in focusing the way we have end other we are the in transition, test Prostate to products

believe will you leading the field, is the is the top hires HalioDx giving the We to management us and progressing cancers cancer XX integration team our into of has immuno expand development as which key manufacturing expect our forward and HalioDx, for operations oncology the diligently that globally. family. soon end-to-end well. control on IVD Immunoscore Further as the to Veracyte the solidified gain As our HalioDx defined the business. scientific of the product know, our acquisition addition team expertise working eight With emerging our Europe, test business welcoming look well and we our acquisition by we of talented incidents. planning, foundation we the scaling US as test, to with colon reach Bonnie IVD have in been into

leadership company key CBO Brainin, team joined Bill month, strengthen the scale Rebecca the Chambers to the also to further made globally. We executive Zondler Rob and CFO, our us this position hires CIO. and as

strategic global key the team from primed executive to experienced we our in addition appointments leadership and to leaders augmenting HalioDx, these talented the vision. advance existing With exciting are

global of now company a care detailed to strong well the the early diseases journey patient's diagnostics of to our are we from I'll with cancer results, and over of our call a building that quarter diagnosis our other provide second We way. are overview step treatment. detection on turn Rebecca results. to and at the every leading And transforms

Thanks Marc.

performance. Testing pleased businesses. an revenue we We partnership total million million Product to urology from As thyroid Marc sequentially. our and mentioned, ASPs XXX% flat roughly very were increase quarter contributed biopharmaceutical of approximately X.X XX.X over are with second due commercial million in X.X million. of XX.X and our revenue prior testing test, the equaled primarily with average equaled $XXXX year results revenue per generated revenue, strong execution quarter. These

nearly portfolio total, XX% Moving XX,XXX increase to GSC across the second XX,XXX testing quarter. to quarter Percepta compared genomic and second our and we tests Envisia reported an volume, in tests Afirma, of approached the in of sequentially. XXXX XXX%

While growth given as Decipher primarily tests year-over-year million, quarter. $X.X of driven by sequential of expenses the was primarily XXXX the orders. and XX% acquisition we the equaled approximately organization. experienced QX and impact a driven million Sales absorption expenses, testing by XX%, Decipher. to stocking revenue million. R&D were by related $X product lower of primarily of sequentially increase or to excluding a million. of XX contributed typical fixed marketing X.X XX% Prosigna including expenses G&A sequentially, margin the tests driven R&D approximately grew decline quarter Decipher approximately XXXX quarter Decipher $XXX,XXX approximately million an the seasonality equaled tied million, cost and grew of a recorded million of Gross million, basis to $X.X again, XX full $XX.X points HalioDx full cost cost decreased test to net XXX volume. loss per higher volume impact sequentially, due expenses. expenses We $XX.X approximately Operating

ended activities, and generated million million company the $XXX cash Additionally, quarter and $X equivalents cash from with on of hand. operating we cash of the

Afirma $XXX to million, to XX% well we strong prior our to our now year. This growth for our to representing continued $XXX Decipher expectations momentum in are Turning million QX and as guidance, the XXXX businesses. XX% guidance reflects over results, increasing revenue as expectation our the

beyond. and all, typical Additionally, flat we with seasonality is expect a In confident to and pleased very the as we higher of sequentially. in slightly summer are revenue experience our remain quarter result quarter that forecasting position to your third and success a our through ability to say for and few to on build turn on plans now to over will XXXX I call time. our words. execute as the we you Thank Bonnie

turn Rebecca achieve you Veracyte to diagnostics the and working the thank moment with deliberate as to have and a to I'll thoughtful led Marc integration. their vision to of It's Veracyte. I we the of to I here. potential focus That team QX. for would you, be Thank a place complete acquisition years like transition forward accomplishments to and that, global tremendous am company's to team leadership I'm Tracy. take And that welcome the a I the incredible cancer to so pleased put global vision great in proud in that with his the the that brought And the and number of the new with final company the team positioned and could together not Veracyte. to with piece, our of a be leadership acquisition. imagine team back have working can't with at more Veracyte's helm the pleased being I existing to comes now to Veracyte, and puzzle amazing on strategic to look HalioDx Under better ago. full we to call Marc plan leaders leader. deliver the

Thank you, Bonnie.

will now lines. We please the section the into of call. open Q&A go the Operator,

will go Thank you. first with William question come [Operator Instructions] Please Weinstein ahead. from Blair. Our Brian

and people hear Bonnie question voice guys, the well. and your as all good Hey to the new for taking welcome thanks to

obviously, the out quarter. stand I So in guess, here, just is Decipher

there. to? about year force kind that think your can as point about stuff, of know on drivers more some can business, thinking you Obviously, you some through that going the of reimbursement detail You of there? within you a the that were anything growth how else I we that just full How much And the of there's but Decipher? additions. talked that should year? Decipher the give us guidance, little of then ramping is sales highlighted some about things up on be you But bit made

Brian. thanks, Yeah,

strong perfect you So business. clearly the And do we we and to good that. momentum. of kind in time decisions late and get based amass a go-forward that yeah, go made indications, can to was some the had the to to on year the the leads then was The I basis, Decipher, they drive good that then momentum the able as to last team on why expanded clinical it. publications continual It really back it acquire data is which acquired see, think the business helps coverage we decision

offices, done based. the is A pandemic. continuing place, are that about more now, right the consults community to hits the very clearly, the take of from happening. those think Decipher those you from physicians' in work specifically lot If which procedures has momentum early recovered And well are are

we're clearly those so And to access getting offices.

So of helping other all for momentum. into test our factors that's far a than that, the that so this But of those business. tailwind it's think performance year. good phenomenal we've bit little create to seen strong a a lead I with And

guidance, as Decipher driving In Afirma Rebecca guidance terms what's really in increase of is two and businesses. elements the our Prostate said, the of what's key in our our

And to that the same just entire one would thing portfolio projecting Brian, expect follow business to the Decipher of trends add to for seasonality products. the we're that I

to the So third in up some slightly there growth roughly from then call and the quarter it sequentially flat fourth. in

the in Delta the everybody's if as it a variant. affects about to course, going thing one now. I The add it's business. future. here has significant that right generally, is but lot impact more what's a it COVID really assuming, - not entire continues And our one thought But Decipher, situation it that that maybe then And Brian, is of the thing with mean, covers covers it business and on were we've we

that. to I kind Yeah. was around something And of going ask

having comments year. being factor clinician that Exact back about And of of access yesterday offices. are points? that your the any kind your kind idea And factoring are they're of thinking by obviously, had How you different about the can some in how to in reps So call half a what call like access across give point today? looks us access that sales you -

it go impact is are by there some and Yeah, there I it's somewhere business situations business, an really think makes not. sense to where because

lung quite prostate - extremely hospitals really just The very surprising, secondly, lot a a are with quickly, opening I'd patients. is back factors Again, the and one terms And in it involved One, not business, the the factors. access. procedures, nicely. lot you impact has good side. resilient. the and that's COVID in that's also on the also and back thyroid where cases and side, we're very a Afirma the been if based Decipher dealing Plus, been with I really like involved work So talked up returning who about recovered getting of we business physicians themselves. of hospital business physicians community obviously, patients breast significant to yeah, still is come given quite bronchoscopies. starting And But the on there. other resilient two the the physician say of based are we're think of seeing is

Some of we as do especially that, more going now. what's on to right reticent them are see

But to now. could of assumed as the that So our are, be affect changes the generally, resilient I our that in access business that by Delta more guidance are businesses causes has other variant that as right the they business then parts continue if continues said, COVID. impacted

of get up later questions, have but certainly Thank we'll other follow call you, we'll I guys. and great. then tonight. on in let the others lots jump you I Okay,

you. Thank

Brian. Thanks

you. Thank

ahead. Please will SVB Souda Our Leerink. from with next question come Puneet go

Hey, great guys, thanks.

obviously it together recovering. of first number growing, question Decipher Afirma Marc, tests So all you with is have, a start, is tying to

and beyond? all maybe we at to look top a way drivers or that that think going Afirma - grower. other to and pandemic that out putting sort that of just it a was of into XX Is Is prior growing XX% growth profile approximately is so a further both better right you the And have. even it that to over Decipher, slightly say profile the Veracyte number to safe together XXXX as line a ought

- haven't I we Rebecca one the haven't Plus, upon start obviously, say add thing Rebecca we time and I executing I'll been and But very is one here not on. long what the yet the we're to build the one But of even pandemic on. and would can is would strategy, strategy, yet. What thing less say out we're and long-term done thing we're is, that changing continue love that's plan. not I

not to changed. you like add? say, So and much really that too haven't have yet. to Rebecca, we're do build at on we had that's not I the time But pandemic, anything

No, I think you covered it well.

important to example understand that Afirma you in just grow the should on And Nasal that as understand where and trajectory at an the but assay it trying grow faster? trajectory scale here. of adoption, look trials globally? just potentially opportunity Swab, then the assuming the US obviously, trying here drive This both to and order given we any should just expecting sort Okay, to, a to is large whether you're in - an marketplace. I'm can are that an the market

than Puneet, sorry, it missed said, that you a faster grow what? part I should

will hold And back Afirma at that launch. the trajectory followed that it same

it with lung and it we're really patients. and on coverage And penetration. course, an Nasal question test years has I But launched been ago, incredible was importantly, really physicians, patients. a way, uncertainty has the helps would It's market. significant cancer lot really of at successful, excited There's good But of does say firstly, by what about classification. help significant many point a opens more it's helps Swab, it. a for very up really It and this the and today Afirma the and this

is to reimbursement. would It will the take get of a help reimbursement in post XX gather of while. that to to we to could you take number going launch months limited drive methodical. it us deliberate sites. that and this a launch launch We're need as XX Our That very test expect. evidence And can

businesses building stages Nasal top very is their taking I the Decipher these a that the this like that's lifecycle future. we're obviously several all - years each the on Swab Afirma - is Swab now different the here and of way that portfolio advanced, So other at of about are multiple and years layering off then have the Nasal different and that is into think

of much a would that that. than next other revenue it think like the driver will later It's drive I So over these of businesses to couple years. continue

lay if just with this longer margin And I nCounter one the just wanted of in terms instrument Rebecca, what and for in when the and think importantly, the squeeze And Where ultimately, manufacturing as Thank in manufacturing the outlook, more, manufacturing the kits could do be? then you just margins picture potentially make kits instrument could nCounter timeline sure to the of gross for us gross come more and well? for itself. you're if could to the you baking year in HalioDx term those you. out

Puneet. Yeah, be happy I would

guidance end, a that would mid high currently but obviously, to of we margin the some this on we're mix very give for to not in half the half the of very quarter. the XXs expect year solid in of gross business At back performance year, formal margins high gross didn't I this level, had second projecting. So this the given back we -

gross profile or referenced, margin with color just are placement is HalioDx to obviously, in the kits. facility give guidance ready the not second regard year. to the future, where Marc half the long-term gross nCounter specifically even at of to being benefit that as this this that the time manufacturing in of beyond of we trajectory transfer will, with of we're that benefit margins as it said, we That forward nCounter, in will over in Going the point

getting timeline very that also and that's I and be from script, that quarter. think, will as know, of an being the defer allowed all for is I'll And well. for proactive we think standpoint step one I you requisition highlighted going we're completing But done as integration is the in mark. accomplished, this to On the as

still So you on appropriate share But Marc to will way we at we'll that the the share that's meeting excited time are news time. point to our in with be at timelines in also this that point shortly.

Rebecca. Thanks, Yeah.

that. add to me Let

very opportunities progress our you key happy manufacturing future. in the those one us with the gives already gross as can margin So supply some control as streams imagine on is HalioDx us in chain words the been of and of transition, Rebecca that's said, integration, gives made

light that that. a quickly work don't Of those lot lot of opportunities then lot launched by commercialization is yeah, that we something driving to manufacturing possible the want of so place if come leading a a going you've menu to it's as say in of completing work and you getting key. want and transition on about the really words and know, you're And tests development Bonnie and that is course, be to The you move go when of I but important that then as next. something menu is that's instruments the is to a testing, as few moment, a on to us platform a and priority, Bonnie

tremendous is learning a that work team that's execution success we've around with the say in the just excited have is we're and plan going the got about lot They're company it a picked test, experience up lined what done. I'll I of timelines integration, and a getting that, think early we'll there.

Bonnie. Thanks

guys. thanks, Okay,

Thanks Puneet.

Thank you.

with ahead. Ji will question Nam from go come Sung Please next BTIG. Our

the questions thanks Hi, for on quarter. taking congratulations and the

strong there dynamics Just of early obviously, is too a very also, the your competitive insight in to And obviously, the questions, taking curious love year-to-date, or there, of just tell? on competitively growth kind get would Decipher it share in quarter. terms couple of to you're one if

at look and One lot performance, by focus really that's terms a is is, really I key Decipher require we addition think be to leaders trials mentioned share how trials its The demonstrate Yeah, test, many the test the the Prostate strong on of is clinical the data that number that fact and I run, a of think really gets its point mean, in that mind in, advantages. of of amass. it's Decipher and of benefits supported and test I I the in the test been those fact that and opinion actually in it that performance the physicians. script, in our of Decipher that to

very we're that's about growing. So excited way the

that in move But much fair more our will over is test, the and penetrate left this as our that lot to to the and may to that more think is of put that some decisions of ultimately say, great. journey, physicians unpenetrated. along of I a goal market the clinicians to market it's And in mean patients. as of hands be that and health is records goal

of super my that's up later new your is launches just year. then kind pulmonology And slated product the for especially franchise and around helpful. follow Great, this

limited the of might terms risks curious have contingency should how terms there you plans, in launch in Given access, whether plans we about place? of are your plans kind or just of early think access and in not channel

very that needed is, coming itself Yeah, so publish I that out, degree. that of the way including pulmonology it our saw, the has ready to year ability COVID to are get tests degree tests Swab there's and a think But a course affected data last you Nasal being we think stopped to half launch clinical a have us the few the And from Atlas. to samples over when the those able to to to Genomic as and some and not about soon.

number limited join fair excited to we to in I As we're I say that are Swab, of a launch have sites us sites. on And it's think Nasal to the already. mentioned going

plan. Atlas, almost same see to being to don't lab that our major do on needed in that work And that get already we so is launched time, is barrier launch our done. the to on to And Genomic which getting as a then the the CLIA I

Thank much. you so

thanks. welcome, You're

Thank you.

from come Goldman will question next with Please ahead. Our go Matt Sykes Sachs.

for of Hey, is guys, Delahunt are on this Dave guys Rebecca. on Matt. fantastic Yeah. you strong a Great to having the the see quarter. baton. Welcome, Congrats pass

to get the point? CNS? us of getting subjects looking great to? Could make are into you data many tell some And How number bit submit Percepta you available are to on longer thinking about it really ASCO, So to guidelines reach presented that you at a exciting. you'll you at data how term enough about to limited sites more

specific so to send that that on. the we're working by start still need of participants planning Yeah, the we I'll saying out number

make This that And I've process sites of product to end-to-end are of studies is really launch this and one these that I Veracyte said before with we the of XX company XXX think tests of the able across of suite ensure around diverse test. in the to that on whole me, success are terms and now board impresses to said strong. want and is run that, works reimbursement built here. here me muscles I of number are sure impressed physicians' know utility do the we're outside at probably to has all the section ultimately site really, really is sites, always is well. the a that the and or In really things really ensure before, is best and it's a clinical probably way we the I'm end - of a cross we've bronchoscopy to offices What smaller the about the what set at the and about more looking the reimbursement how that rollout

And that. know so how do we to

have there's amazing going than on our what an job. with in So Swab. way Nasal are to they're that's And organization done the people do smarter me that that who

about now corporate currently? guys build thinking versus more Great you and and in so been you're buy really tell about the you're development. have you Could right us seeing market at successful what how

Across what is Yeah, that were three dimensions in gear really starting geographically, kick very with to to - business look to strategy trying that's talk their high grow we're into I is a - which is, acquisition. our our about XX moving think into like continuum, we'll across care products indications, now Swab HalioDx the earlier really the where And detection. think I have eight do with top then of HalioDx, by indications. that help advance Nasal the

of and that's or terms advance dimensions those geographic, far something we're at that but immediate not say we'll three is one might that to forward it more, objectives continuum, do will buy, be Then forward, our of rapid the but worth pace every on one consider moving is they looking those if is we build priority. going consider versus execution a of achieve out our care I menu actively and considering, then as opportunities an focus. key as wouldn't So opportunities, going in strategy concerned,

much Marc as at Yeah, integrations mentioned, else. anything we're on very the now, so than focused right hand more

Congrats Great. on the quarter.

Thank you. Thanks Dave.

Thank you.

next go Lake Thomas ahead. Capital. with Flaten Please Our from question will come Street

guys. for afternoon, questions. Good Thanks the taking

that right we I was operating line. thinking lot going there's there positive of down forward a we was going There about on flow about the some And at position then. end since going excitement how guys positive thoughts think pretty any should on should and - a around cash cash drive comfortable Just that? be to been you're Are 'XX feel of the in one forward? think cash or flow. operating on flow you some up How

very the for pleased this quarter. obviously, we And thanks Yeah, are question. with

traditionally, of I think expect is On way to - any forward the is that in you the had look or as company from XXXX different. to and flow and think go through be I the the what our has obviously, time cash to positive achieve to But a would year this discipline we planning have here we go to generate half think at the year, the that ability there. no I and intention one ops need investments barring beyond. financial a basis, back when

an still the generation and intention, cash toward our absolutely to our have plan. torture is kind So over today, But of longer fully to willing up strap the eye that financial we're digging is given probably continue term. sign not through discipline intention to

and pretty to about And going market was on that forward? the Nasal we on Swab or deal should How collaboration the when J&J then - the then how get fact few to get market. of we do the the on reflecting soon back launch a original Nasal signed going the was will key kind to back here J&J objectives back the years think Swab Percepta the and GSC

Yeah.

things. I think, really a couple of

building we're of long products. here a Firstly, portfolio

with all those mentioned portfolio company a in have care continuum. as Genomic as as has And with lung the is portfolio that to collaboration lung something us future Envisia well acquired and together, opportunities together lot our really Atlas. to extremely clinical business The further done just course, we that put we are we we're well. and of the trials going is across the that we've them, strong, focus clearly has as that J&J. collaborate A You work the gone important very We is like plus, And them on already we've of them. well. on to come it lung to from put to

the Excellent. for Congrats on the quarter questions. guys, Thanks taking

you. Thank

you. Thank

you. Thank

Savant question next with Tejas ahead. go Please will come Our Stanley. from Morgan

Hey, strength after you be pass to Can us folks guys. which Marc, working again to the quarter. was start It's it in Rebecca. and physician years. out trending you out for who pushed these I'll the on up had just catch Good forward? you of related do sort that with degree good here, volume the visiting to evening. how see all the you maybe with recovery good

the States to I is in access one as COVID around not something it's United of a there's you has in general, very and are the look imagine. mean, attributed I in prostate was to say, expected there data that, was being can year-over-year been would going I some some cancers growth. I it think some which say you probably number have would is, the people recently few But not journals physician. papers XXX,XXX, or do indicators, at is the - that a like the able specifically, XX% of to hard effects in to And that

incidences that of pulmonology of element an around will probably clearly lung too cancer some could visits point. that ongoing a there's and to of that element at And need So of away. are I that. that there be backlog believe happen think I an due happen to

to versus outside the driving growth. to those kind of about settles us like any hard But but data things stabilize normal point, some offices into you macro our feels there's give some of then quantitative point, more So And once on it, at our that. post-COVID, we at it it any element control. specific anecdotally, that of tests just physician really it's are that

questions Got it. a on nasal And here. Fair then enough. risk couple I have of

You us going history, believe just spoke to that when XX there next size timeframe? further I'm year dropped data correlating just into you spoken the to you in something assay, in do that's half I as accelerate anything back timeline on length curious like things et Is of XX get to that with performance today of and to releases terms of smoking have and with happen around year can And months that had cetera, and the reimbursed? when to nodule of share timeline early a will data whether Giulia this about perhaps. the terms

that's looked first stage obviously part I gathering nodule other the out appropriate that'll cancer. attributes, on been of Tejas, data when and like that on come We've mean, time size, the and finalized before was the on we've again? Yeah, and of second part at we've at on your question so one. example, What mentioned for that

accelerate with months. can you XX XX to to Anything regard

to end processes be that. the obviously, like so of much - to at of XX I'd control. our back to what of Yeah, in months, is short But do there's XX the outside

the we're shy this got really there's that as much muscles putting done do get product reimbursement to done let's So won't our we process. that. then is is I those the things on as get to resources move And we we what optimal what that. control. focused there. get control, them quickly outside be on way, is through this right, we're can earlier, we we've them so most in the Like But important to the whatever And of work on because of of in need said out an and about done get hands

Rebecca, you mentioned be one and was sequentially. expected that final for Rebecca, think XQ up enough Fair slightly I to math question to flat

for of outlook, math to do the What calling the the And fourth conservatism? the And down up, flat sort as or here? the a either test as follow of there I if midpoint in to so to you're for quarter. at why trying curious of perhaps budget guide HalioDx sort I'm the the is just are anything embedded for essentially bladder the or close a you're that yet? related And not offsets

effectively me those to answer let The of take of no. that last the so Yeah, is first. part both

going to what in as COVID's So have try did Obviously, and seeing COVID we slightly are saying bit of the thought XXX to so cited. really give if of Afirma for you not can't given sure sort guidance puts look like what the there awful momentum it's little the have was I the baked didn't assuming worse. some into that range half. And as we we like worry gets in make COVID perfectly the with about and takes. to going the within that have look what folks control at range. range is Delta a the business to variant think our given that that unquote quote regard We where But wondering are, we we to in impact as, looks guidance I'm XXX, Decipher to least second of businesses that's even put we like wanted is effectively to outcomes. COVID, the outlook and But don't Tejas, range the and

a worse. bars different midpoint high is at kind momentum to Now, for COVID. the will business to of if if Delta error as as way you here But That's that variant you're obviously reflective be scenario. a the going of of I some a think gets what well the looking end is

Got so much. it. Fair enough. Thank you

pleasure. My

Thank you.

Needham Our Co. Matson next ahead. Please Mike with question will come from & go

Thanks afternoon. for questions. Good Yeah. taking my

sales, than the lower questions, of and stay at And the then R&D of it like roughly. sales around at was we then of of around XX we've kind been in the your modeling XX% year? should looking million XX% OpEx, couple through little a a Just to it and financial that what remainder level expect sales so marketing was quarter,

the thanks Yeah, question Mike. for

our incremental second X.X related spending be to around that we're could obviously, asterisk tied roughly what we to acquisition out from don't half, have with the in Halio a anywhere the ends the if an half is not equivalent yet to that guidance out the Obviously, up those the And being, such what or back strip plus done. don't will Halio of P&L we'll take have in of impact, Decipher, you with impact will so reasons ready be be contributor important timing And if minus acquisition for million is quantify you the in in with that costs expenses So back the caveat, to and in the and quarter that acquisition what Halio. it not for that QX an today. you include bit. expect to

roughly fair. that's think I

just and right. Okay. And piece. sort along as of as lines HalioDx the puzzle the I then M&A All far of something Thanks. say final goes, heard Bonnie

shouldn't take that I So expect mean we larger to any, that at least nearer deals term.

was Yeah, I means in on in it'll in the executing correct. think piece place we're multiple that we've the And the started really final XXXX, to the puzzle that strategic think manufacturing completed two that's transition. with is the last it strategy through be years moved years, over about way it put

that very that a positive. with all is that to some transition. the six partly we're continue able the all HalioDx performance that very to cases, of that I'm focus we've we've clearly we've vision in the very, on years and quarter, spite deal to deliver, taken got We've in impressed things with with shows are deliver this that doing well. So committed that really making got of the to and completed the on is things lot to the which the we're that in do. because And things

go out this at looking not acquisitions is time. priority for major to our So

As if - on that course, this call, of the our got plenty way, to but deliver there consider earlier we we've we them would opportunities said are with strategy. come in I would

Thank Okay, got you. it.

Thanks.

ahead. you. comes Sandy Securities. Truist with And question next from Thank Draper go our Please

Sandy. Hey,

look are $XXXX little all But per say team. just pretty you? of strong my I I quarter. and When bit. this it's of Rebecca. for approximately how questions welcome a asked new the Hey, answered. And have congrats been sort Thanks a probably when on stable to is think about And generally been test, minus and first lot at very much - question revenue plus or

down next to Decipher there be in thinking there to to XX reimbursement thinking or meaningful for it bringing better should and we out over or going because going prostate other probably Anything reimbursement so. months should the you're growth takes, drive of it's anything get be there XX build about on able tests the notable, that are the XX to and you that With be puts as likely - be up nCounter, about is either well, getting pushing we and because to offset, you're not the yet. that

quarter, rates, but this on that or and way point think depending other. commercial half, there to mix and Obviously, as plus have portfolio you're in minus Yeah, the a you're back takes, bit. Sandy. now, year. the in the next the great don't time, going half question at of is have that puts on we I depending I first in change one going And going I put sit to don't or the for meaningful payer here trend be mean, specifically given takes, It's see anything any anything would to that of

was Thanks. Okay, only my That question. great.

Thank you.

Stapley would Mr. for showing remarks. I'm like the back now you. the I to call turn at any time. Chief further this to Thank Marc in no Officer, over closing queue questions Executive

you. Thank

Bonnie I have add progress incredible built innovation, at in quarter. an extremely scientific the that in values Veracyte core and closing, and to assembled. collaboration the a resonate deeply short These that rigor, team one accomplishment. in to for would the an made been is me. like outstanding my culture with period Veracyte very I steeped has Before thanks been has impressed with team

across progress scale them. As our look our quarterly growth drivers to upholding the our full and business forward you and you. patient on indications Thank updating continuum, vision our we strategic I care to I update. next in the am committed globally on bounce

this our you today. for joining Thank concludes call gentlemen, and Ladies us.

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