Veracyte (VCYT) 3 Aug 222022 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Veracyte Second Quarter 2022 Financial Results Conference Call [Operator Instructions]. Please be advised at today's conference is being recorded. I would now like to hand the conference over to your speaker today, Shayla Gorman, Director of Investor Relations.

Good afternoon, everyone. us financial a results. joining second of for XXXX quarter thanks today discussion for our And Dr. With Chief Chambers, Officer; Executive today Officer; me are Rebecca our Marc Chief Stapley, Veracyte's Financial Business; Tina and Nova, our President us Dr. of CLIA Giulia Kennedy, Chief Officer Medical Officer. Chief Global Scientific and a this afternoon press XXXX second detailing earlier results. release issued our quarter Veracyte financial the Veracyte.com. release, of our section along and This Relations a news financial presentation, site at Investor business with is available in Web

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

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

comparable accessible Marc Stapley, In financial in include to CEO. call Veracyte's non-GAAP directly financial Veracyte, addition, I the measures Reconciliation these from release, measures will the most today's of this are of earnings the IR included site. certain Web turn over call to measures. will GAAP section now

to well on provide Thanks, Shayla as update pleased growth and results, thanks key drivers. an I'm joining everyone second today. our quarter for our us financial as

clinical later. of Prostate equalling taken of commercial who that QX release, and prior versus tirelessly an growth that tests, of favorable largest from The was patients toward evidence, the cancer. is second quarter quarter saw guideline prostate author prostate that our help Prostate during issue identify in patients today's Association had our an highest Radiation supply earlier cited year at $XX.X impressive that demonstrated announced men Decipher contributor with teams randomized men Prostate we of associated product guidelines the pulmonology of generated strongly particularly trials, test were I was ensure localized our the evidence extensive posted revenue guide well ability the from earnings endocrinology cancer you proud execution more XX% more strong study were published cancer. million. following our our this in and guide Neurological worked access care care clinical on our The Decipher to unexpected including believe As with the demonstrated in additional chain intensive revenue our for to which to can wake the This the the of XX%. with we as risk that sequential to confidence American who will ample who cancer extensive the Decipher class updated from gives tests is test benefit Phase room support Last a were is Decipher In Oncology progression with online prostate guideline data in date. of delighted risk multicenter number for including growth tests meaningfully outcomes. penetration propelled in to we remains month, Oncology. yet, growth for is to tests. Phase to estimate still compared for augment as us largest treatment for X to growing trial, for this we the continue literature, findings body Adoption for this already last test than genomic the of product as quarter, of of that we increase penetration help localized market are Prostate's there Annals Prostate X,XXX decisions that the specifically testing, of growing would body X Society demonstrating This which been currently score part clinical have with adoption increase prostatectomy, in by a issued treatment. years. American in We close May, to less of Decipher prostate has multiple genomic and nicely, and and saw to resulted

Moving to Afirma.

and our business endocrinology Fortifying key strategic building remains imperative. a

and Afirma world the even As stronger in is our result, continued in ENDO consistent performance analysis showed new with the presented cases XXXX clinical findings. investment during the validation the study evidence annual a product test meta GSCs the real associated a quarter, conference and some than clinical that

our test. as We clinical the this of support combined our single year enhancements continued believe study with of Afirma in Afirma GSC MTC, identifying such This investment evidence new aggressive medullary thyroid samples. will cancer published preoperative form growth classifier is in high of mid but accuracy cancer customer Additionally, that of part to demonstrated in digits. thyroid and experience our a rare product in Afirma already the thyroid a classifier of next

firm's saw Regarding slightly growth we volume results, than expected. lower we QX

ERP orders to quarter, basis. their we a the transition that on key a by During ability timely were to impacting floor significantly process vendor surprised underwent our customer

we in-house, to vendor's we quickly difficult we our of issues components impact to by patient supplement the year are as their now procedures to resolved team is were needed. would impact prioritize back delayed. approximately few vendor to our the normal X% team, to a while and our And activities Our heroics while their meaningfully were with assemble believe for are to the level working and end lowered point, and this call the this team very in customers We prior to compared able volume near true the At quantify, continuing shipments identify situation internal estimate and that to what to critical largely customers. expectations them and timing from patients. in and Afirma I orders key those that and minimize to mobilized most to thousands only Through of optimize with of transact describe locate to as our shipments importantly, the

immune standout ASCO benefit. incorporating patients help publication the and the or their metastatic Immunoscore of cancers, of at benefit IC number while their select Another because, are from cell right will a publications detailed term An We as immuno-oncology who checkpoint Notably have Immunoscore generated in findings patients quarterly assays. confidence key strategy. inhibitors part checkpoint in trials, of a trials. in Lancet also management inhibitors patients exciting identify was our cancer. or therapeutic biopharma ICIs companies success Further, that forward for in our strong an patients well business, are will are similar continue therapies immuno-oncology These demonstrated that to the limited results oral improve of assay combination who data Oncology clinical reinforce for Veracyte's findings the important, ICIs. the identifying likely to that additional We our look assay checkpoint in cancer. important the non-small presentation to long including could help quarter which immune revenue. lung believe colorectal can current our biopharmaceutical future biomarkers in rate These metastatic as be immune IC revolutionized immune

we focused cancer our diagnostic commercial have our to Immunoscore and of we immuno-oncology analysis we on for multiomic colon as Going portfolio, our forward, biopharma particularly efforts the after time we pause believe test. same At a thorough the have are differentiated asset. offerings decided

in sense early focus us front products of of paired the acute are accordingly. with investment of Given breadth launched with our being at responsibility, resources fiscal phases or and opportunities we stage developed, various our of prioritizing

focused at a We growth pleased term Moving These determine were ensuring across Nasal reliably cancer whose our now in recent lung our be found the were on could to and data the data or performance broad growth next by end drivers. that used is of reimbursement tobacco Swab lagging enrollment our clinical can Nightingale commercialization test of And volume generating to Activation prior long treatment to Nasal path a making. decision of small patient our success, demonstrated year. quarter, commercial progressing risk that we utility to results people of screening. we to Study on is patients test we're lung share already Swab, through on meeting. high additional we securing treatment of range see exposures, clear starting and ATS impact signs to it encouraging enrollment to accurately patient Percepta nodules a have build. data in With number our Early respect about by that incidentally remain the from including as driving are while seeing on momentum positive finalizing test well. ensure are a sites a related expectations

we in validity don't do. robust Of data, see have that course, our we ultimate confidence the but we shared which patient gives diagnosis, expect to the when clinical we have outcomes already yet us

We favorable to data earliest results opportunities excited advantage Nasal the possible. publish have interim positive clinical reimbursement it to are the We're take monitoring drive of generated the is Percepta and an will on witness patients in plans as decision utility providers. to Swab impact effort to and

detailed. timeline discuss our long to on tests our to We for the and development development broader expansion. the nCounter to is of the diagnostic Rebecca in record Prosigna our more in breast IVD of instrument, Another to us a exclusive as driver our in already extensive results are track will class to previously cancer test markets. offer the turn IVD menu best global transition track With financial the System that, in the onto key now believe call I are extremely rights well global positions fuel growth submission Analysis term test menu We our succeed of with and over detail. team's stests developing

Thanks Marc.

was million, of the XX,XXX As execution same an focus to grew XX% the Marc compared $X,XXX of test, over the increase a volume and roughly XX% quarter. sequentially. to increase on XX% revenue over prior a total strong Testing of We flat XXXX testing period X% $XX.X in $XX.X year. said, year prior over quarter. million, We our per increase prior increase tests, revenue the quarterly approximately ASP of drove continued delivered versus an

again should that grew has Decipher as volume this Afirma next tests. to approximately Testing abate growth code tests the was expected, impact, our Afirma As impacted with is the X% was driving this, XXXX by XX,XXX compared Despite volume XX,XXX year. billing urology year. approximately which ASP prior temporal strong confidence a change. grown

supply driven growth vendor without disruption we been X% Marc would estimate volume the However, mentioned. approximately have

Second up Difficulty]. currency tests volume [Technical was approximately million, XXXX despite X,XXX XX% resulting in of revenue QX compared quarter to product headwind a $X.X

million $X $X.X $X.X expense. $X.X expense. and of operating the which commercialization impairment lower flat term million, compared provided million the to trial cash increase points administrative quarter million and resulting Biopharmaceutical include and were ramping cost primarily activities were intangible operating stock by by highlight both XX%, was compared revenue driven I gross we net gross exclude intangible of compensation. acquisition other primarily to million professional benefit colon fees of higher $XXX to XX will do was million, the Research XXX equivalents driven million margin $XX.X was approximately from XX%, was gross and of to results, of the XX%, which XX% included approximately million short $XX personal acquired a stock to and as margin by million clinical grew margin quarter. Non-GAAP but and due of General sequentially expenses, an and by first asset gross Net routine Immunoscore basis expenses. investments. biopharmaceutical expenses $X.X million, by amortization Non-GAAP Non-GAAP compensation. based margin. excluding Testing related revenue due prior $X.X approximately expenses and project and loss approximately increase We gross and mix. the down project a margin product partially offset Moving operating test and expenses cost expenses based included declined development an decision. sequentially, non-GAAP sales to cash ended to with $X.X marketing was expense margin to increased $X.X $X.X points recorded GAAP assets other quarter. million other diagnostic $XX.X by with basis of lower and of operating cash, million expenses million sequentially and

Turning to our updated XXXX guidance.

year million of well $XXX reported or the of our $XXX of previous $XXX our revenue million range This million in XX% expect second to We prior XX% to outperformance million a $XXX the guidance our compared versus reflects strong continued to basis. on IVD and performance summer be quarter, digits growth to of Afirma to business, testing mid rates. lower revenue is growth urology as our due QX biopharma revenue contract low single as order. to QX current large holidays the contract to businesses, on the sequentially and impact expected IVD currency of

we forecasting For are QX, quarter-over-quarter growth.

to driven operating half increase an by expect in the R&D expenses, of For expenses. primarily higher second we see XXXX,

concerns long I term of that our focused necessary drive to back long In Shayla. profitability. vast with the current our to in this cash and we horizon, we our growth to while profile environment performance to path and diagnostic we suitable business inflationary our now remain with on recession that business, We the [barring] call believe With us to term is testing future. in majority clear invest hand the With the makes quarter ensuring decisions this the of are will are ultimately confident on positions resilient. up cash the have M&A. take turn growth mind, foreseeable closing, profitability, drivers the remain we which believe pleased this our on making will adequate for revenue, a

Thank Tina Nova, and Global call, Chief join Q&A of CLIA Officer Chief now Giulia lines. We'll Medical open business; the go of and our Operator, and Rebecca. you, please the Scientific into will President U.S. the portion Kennedy, Officer us.

first comes a line Instructions] Blair. Weinstein with question William [Operator of from Brian Our

the layering that as bladder you bladder, quarter on think how Brian. And about on about the half? of if about of there about story? more any talk was start it's just thinking a just we Could growth that second outlook little for impact talk on then This and runway part you growing to Maybe and bit what terms in units, is from in just you're Decipher. in a and the second ASPs could [Griffin]

you factor. reasons I'll that, of got the of particular, in has penetration steady good XX% we including Decipher strong I'll as that types We key lot in start again Prostate believe another development, just Decipher cited the saw performance here, invite drumbeat we tests of the is and really and But Tina, majority quarter share, evidence continued these in needed. the Rebecca less share. Prostate here a of which script a for a said the by penetration of business and than market which significant

so our see And And is market good with honestly there momentum expect of that reason you on momentum to penetration us know we incremental to a slow we continue drive for test. this are to here, ahead we of down. no that

second that bladder second which bladder, Tina, and free anything very you go. part of add So question. about part, could excited to the about test the wanna Chris' where talk prostate And feel the to and was the

data progression out by a I the also really of that to They that terrific risk showing think and to that makes came and of shows that we in continue sales between saw and increase AUA with fantastic our difference the that shows at quarter. of I Oncology the is an patients our job guidelines American the the we had show risk showed just release where we surgery. some continue performance data our what outcomes predicted XX,XXX team that physicians correlation really was is field. And in the update, test Decipher. independent by looked that in associated outcomes a think SEER, strongly We last in some the after from Society and do score Radiation and amount from

that market. to smaller The much So help. test data much indication. smaller a is has continues a Bladder really much,

level at as the the so, in it's And just although, test. same it's not marketplace, the out starting prostate

what demand of point, is an to time. quarter. point was it would to the Griffin, incremental incremental But just years with for recognized time, generate disrupt our exciting at point wonderful view takes cautious in that as what's Obviously, how product. And to very error given implied opportunity this rounding are this us. products, like effectively to guidance this I this urology really second importantly, regard at through stage quarters early Decipher the is and operating And in a franchises efforts. bladder and evidence other we that Tina's ahead and the in in

so, and on really focusing because to we biopsy growth And make we radical want it's prostatectomy, what's now the really driving sure are right here.

the of a radical exciting it's and it I'd year couple is focus five focus I'd bladder not really prostatectomy In on quarters, So attention. to my period. personally next three over where biopsy.

and post second such but part business fundamentally biopharma on signed growing to then And here, it's a contract that payment HalioDx. I've just different IVD

nature little just the of So a can talk would a revenues, that. color you the but on bit nature growing just revenues? it's -- talk get biopharma more those total more of you understanding when -- corporate the about the average than about to just those love portion And faster

us both data base those well, similarly side our leverage of then, Europe we've able in the in the assets, immuno-oncology about to those why to I'd is us a penetrating somewhat a businesses key like which the we as our put is generated and side strategic and of them have well. biopharma together in is And the for for the as growth are or the versa. see in example we there today Afirma the on reason the to different, lung parts see I markets that the coming a a biopharma that side that drive three together more the strong amount purely Decipher customer of our from of came of for as capabilities being commonality is to on obviously but future. tests we lot with is improved of The the key our is should access future. pretty which we that expect acquisition, they And What and overlap of business, out too. globally customer focused really is that there driver, came the the line lot revenue lot biopharma incredible And and base, vice put can investment and being us talked the existing HalioDx

So work, identification, whether the that relevant customers' clinical enhancing it's assets we've diagnostics through do trials lot to a companion there here. is or clinically our with biomarker acquired globally opportunity biomarkers gotten

On capabilities develop third side that of that the the right has assays leverage the internally also now actually to business, we're services our it's that team IVD parties. but for to continuing deploying own

global IVD that that is long And it’s grow with to to is nCounter business I not on necessarily just basis. our business, would term opportunity and the ensure enabling the product on our really add, a that point, last goal instrument services

-- business, much are on So that growth biopharma business. growth long of doing drive that just more clarify mentioned in business to business that is than term to the manufacturing really growth and Griffin, rate so And other revenue to much I through to haven't wanted work the that transfer we keen of rate the we're and more the given line. biopharma necessarily today. going for we aren't we a habit be you

out If first some you business did we though, impacts this half look at a timing capital call year. of is on human the XXXX and the

And into bigger take terms those a half timing second sequentially to be than So half of first I lower, would will, in those account. result of if impacts, that. the the revenue, than timing, we as you expect that

a Additionally, And do product testing acute their the the I third as business. seasonality of in than more capital basis the call, on much given is quarter. in both in aggregate, this pretty given lumpier about business of basis, we the on the on obviously, line, quarterly annual it's an biopharma dependence, think the or a businesses human stated

as basis So modeling XXXX. well over as helps long that term hopefully the with the

next comes Souda Puneet question with SVB Securities. from Our

So on do you in terms front. sales pulmonary the or I just first you have there for reps, that latest in us face -- update Afirma just of sort franchises? and latest mean, and you hospital that maybe still sort of of access us do stand the face on the one, the of you can have to terms challenges give maybe the where interactions, on just

board But you would by region what seen usual across that say, of business barring of of which would of business if that expect, late. usual happen kind is where pretty we're access are access. affect and would anything seeing if feels as as I to Tina, level that? were our local absent I that back you like none feels almost kind I we're of much they our that region think any The the to lockdowns, here. -- it don’t we've teams of as again you too. know that to But then want to course got access anything need it add getting teams to

the time. and do The for I away hospitals, we one the feel than with last No, we see is for physician like rather some from But first right. in exactly still think gotten do to is thing that's an except struggle we've we continue staffing, see. that that issue quarter that this offices especially COVID the

number -- staffing my but moving look just question, Yes, for this in the maybe and was parts on of next business. you Rebecca, is maybe a obviously

pointed Afirma a this you that to from coming continued. challenges colon test, you that's like getting going successfully do looks have You up catch resolved maybe have out and biopharma, forward. continues quarter, that well, There's Decipher that,

think maybe of XX% together of about is better -- the to XX% be So us about to going could we it of just we thinking be growth this the rate or than how sort to maybe should talk forward that? sort piece should about all

and organization to XXXX. given was size not With point in in a this pieces of investment immunoscore the XXXX, revenue amount driver in commercial of moving regard time, the at the material

of neither not these don't there With So a impact issue and from that because the decisions had Marc in there, be a go their into the on and into go Obviously, to we expect necessarily and it paradigms. here catch to account treatment patients the Afirma but there quarter I treatment supplier have a up we mentioned, headwind. be revenue, that that that basis. won't regard wouldn't material nor to will forward take again,

second not not not provided in and we -- because other in mid the digit the with we is include kind does providing aren't that biopharma course question. catch guide are and low regard expect. a as -- to continued provided, Decipher, we strong do so Marc XXXX, to single expecting half to already that Griffin's of necessarily, the prior And that what currently up, growth impact are of over mentioned, to we the have we

Looking we rate excited are large as declines numbers, guided forward to very expected to numbers we get and to the larger. grow quite nicely, Decipher, the continue Afirma. growth XXXX, to about albeit

there, I'm just penetration. stages performance So of its incredibly rate guide continued early going growth peers. we're necessarily in We're about this but not to the excited to vis-a-via and a the penetration market

So to all other not well, expect just product good business And growth be and going given days news, is the a as specifically. biopharm are on in growth. any the commenting lumpy rate do basis. growth obviously, so And on period, year-over-year but early we

have you let the it. up I'll So based and sum But expectation come that XXXX an you with all takes accordingly. there for puts I and think on up all

key And product the I you thinking and of us of it decipher you data driver last important the about see of this Veracyte. maybe longer how have for Seems sort puts -- share do is can when of you and sort the just at you you one, a be to talk where takes marketplace, a to of would out look positioning term, Are give that gain there this position the you today maybe competitive point continue and mean, the product it's to sort then maintain? landscape, market. more just What more the us position competitively term. for Maybe in obviously, sense the and continue because that franchise more obviously of to continues in can in that any a leading about this longer the what me Tina. to that the strong marketplace generated. sort marketplace,

very the team. I'm that of proud think I

and that I good team we're good we're And sales think training. absolute top. hiring at our reps think I really is think at I

the think behind sales [April] it's between using genomics, a and prostate the up physicians I important, sort you of lot because know is interaction because getting and between the as the to have speed there’s very very, tests, was I training still extremely of we because important, so has reps still runway and a the use that on the that that penetration, the happens XX% these not for of with front field And nice physician less out future. changed. of than we us in in still think are

to have have the to important continue that the you need data, continue You reports, just ordering, have in But best to good you, service and our think role are have, to service position have that for add customer now. all continue to I in publish, we the you strong what of can ease you itself. of future. product new those an right feel play shape I very as as very about much good to

mean, sales optimization for guideline said. and of said, our I the And sales product punctuate deliver for the I things at of efficiency level the we in of one support in and well, terms then and metrics team as publications Tina us with to that breadth all they -- look think the metrics addition Decipher the various indications our Tina position and point, physicians. the really our sales really, team. relationships To it's truly best-in-class that

grow slow key a assume making I reason -- in focus gain that that is no So not product. there we're time. to to for us be investments and is we're should And long will for going this down. to share we as and continue a some we quite the maintain continue and given this area mean, for to can't

Sachs. Our from Sykes next Matt Goldman with question comes

might experience better could some we time to implementation, patients given that of and kind of you make of cause with relationships of you look and nature But in. understand resulted just the and their very just of as ERP some issue specific Maybe kind ERP, real your understood the that the need maybe but across through? that not going you the the impact out have of Maybe the kind be just if revenue them. Did to loss your what with decisions vendor it. they on your of vendor start it seems you to

Just that from wondering your relationships. kind of lessons learned as manage you particular experience vendor

distracts global deal with had disruption the couple years, been years. those very we and And experiencing challenge to the Obviously, do issues over haven't to able And your make new patients that that and along have and strove to were very, internal spending supply sure delayed. then that of place you one left no nothing for and issues, customers time effectively as that more has something has that including with many impacts. That own supply and business that, a way became were came and when were, very, field in our we tell last do. team any as able vendor. to necessary our measure, Everybody with And out procedures ourselves chain no normally been the this with but generating a was in to with specific processes prioritizations with the that's customers, priority. we our existing local chain far do impossible to being that's put in could

And so that really was the effect.

was patients like focused distraction find weren't more patient our but are everybody effect impacted. do I'm for making sure on was you there to else the who and sales where So that main, feel with the team was sure the some impacting. could examples and less I not case, in really our

really that quarter. best ourselves a got ourselves of that found as ourselves the it we could got out situation, -- getting into we did good kind we situation in job So of we of and it in as and

that, second -- Now just Plan doing be place components you where you to to proprietary that your is all we business and when it. some vendors make wasn't doing that are and to need else. plan mobilized no vendors planning. where There are some case And source, There do the proprietary components ahead need B, to And sure is your businesses with continuously anybody broader you right? can't Plan just here. -- there question, vendors like we're B in is really and that continuity able any

The is one, quickly and something which needed the we category we third that the really extent ourselves this mitigate. up this fell one -- where category to could very into internally to was stand

business lower the down fall mobilize on continuity you planning, ones those So can quickly. list because of priority

do how their more without they course, happening we probably changes own think implement that. things importantly looking I though, thinking processes and has this all of So about system vendor And again. do our at like this one

OpEx that trend spend professional one Rebecca, you OpEx and to the makes are know should a different and quarter just terms thinking to I stabilize much. time? and of of should to G&A last expectations, the you that spend the continues come of just year how in below the the buildup did off mean, the relatively that we remain in components certainly were over expect the to services. here sense, flattening resume, continues stable given then some trends lower as on Is pretty you about the force. for in really this on which and that of the or relative costs sales year, been I sort first expect you grow? OpEx, to revenue one our spend has And Do the

to second that And expect do your if half. the seeing to are you good and that continue we and in leverage line, the I recall a we of amount that back marketing conference, specifically through sales highlight did

outside We uptick back will leverage line. sales T&E than for continued a first think in T&E, part, and see through more the have small marketing half. was of maybe it the Aut most I the we as will a comes

as line nasal contract as development. the On increases. swab, that -- this Marc's the to the where expect as is is and well tied as on see we comments well the do development primarily meaningful relatively on And to IVD line research on

to So ramp. both programs of those are continuing

to spend our that are important We utility clinical obviously increase our enrolling is us on. critically study for

that to expect slight do the as comments expense second uptick increase see in script On half, a majority to we the G&A, operating development. will in you so in be per extent the well second do in and half. research the a my in the meaningful And see

projects, have spend that's the We a which of will key added The edges. but we headcount, going from primarily, IT some the little of the R&D gains bit vast will majority be have incremental around to we've and come line.

colon Immunoscore cancer me, quick the just test. for just And one question last just continuing decision,

you background that sure want some to decision. to some your want understand, revenue get on specific a your that bit Just make constantly. just little broad you more look to and strategic decisions decision color portfolio behind thinking. these was But the were a the kind understand potential across putting of it I'm into? Was behind versus just maybe it competitive Just landscape, cost material

and our business. what We that's well. and the do mean, strategic yes, a competitive level having rather the you where to as capabilities of team novel planning have required, investment we of test. the continuous across always biopharma long of we immuno-oncology portfolio I space greatest this Having and we've, that, see we then, of else. of term opportunity planning in the anything midterm as really our sales development the be and But basis to these is on look commercial that's part than level course, building in led is term this said a channel the near looked needed, going near that's to very that at even and

and through. need the may so. is to the the obviously launch make diagnostics go those relative we part of the of Now to evaluation assessment, investment But timing time that and spawn penetration, probably diagnostics, you just from the over the key

also And on every and so we too. on I reached diagnostic, I in tremendous product product that our but effort putting to mean conclusion and the clearly of our we did. especially team mean, I did Marseille this biopharma support we developing do and acknowledge, -- want Richmond effort that amount this business build that the into they're assets into our put as

that to broader leveraged in goes of none opportunity. so And work it's all waste, that

Savant question Morgan next Our from comes Stanley. Tejas with

things here, of a couple cleanups guide to off. the Just you Rebecca, for on kick

you'd vendor into plan related what single baked single had that in digit issue rec just Afirma mid in know you to Is tracking guide the rev low mid impact the guide? that last code the of saw trimming from the that of terms the slight digit, mentioned is And to I you to from XQ? that So switch year. essentially

questions, will clarity, you and of than incremental the trend that as we expected. the prepared taking going in the if year. I end conviction gained that I word that abate think one by clarity end exactly them gave, conviction incremental even how probably comments, is is at we the And Thanks is on for ASP. had trending mentioned -- we Yes, Tejas, actually, better one the to by a

change end conviction the you the working the to you So through low the so prepared in payers. mid that bits in there transition and there well, if But change and and the pieces are out supplier we of that and remarks will. still high the will specific the abate, around for outlook real we're from mid by definitively, that only quantified the year obviously is With We this have guide absolute previous issue. all supplier in reaching as regard to the that is issue. supplier to to

you in And then incremental of are on really of international the in, know I you line how the headwind half was of how baking your much year? added And guide. that the are revenues today? back FX, the in material that, terms a

where primarily guided today. the international so expect, Euro incremental would you we since headwind Given of million the as updated around absorbed today, in we've revenue, rates time guide $X which are XX% is denominated, is last and

update momentum have Marc, you ASTRO Prostate, Decipher shift the on then May? And since AUA from guideline noticeable in any seen

to to Tina ask I'll that. respond

together. a that it's small We always pieces of combination it really come meaningful, see, is

as major we the we It's so just had to and and meetings had in oral had pinpoint we participating this and posters as where hard And all and going well, well that presentations. publications year one…

genetic of little of adding peers. at here, mean, around. portfolio given There's the shopped some sort to underway your opportunistic me being you some I are that for one a interesting you of Marc. obviously, How assets, in are terms being here? bit some last for And thinking of testing restructurings your about

take as and the landscape. curious on just So your to

we the our but that I'm balance relative over out, a not get brought we and want the to ensure are P&L, for that position glad strength are point the in relative to and very that reasonable to we overspending our our do have kind you a ASP sheet up. of and we generating. done I of tests beneficial that are what we to do work we years that feel

we're we ex-M&A. have in good so responsible very talked about fiscally And so position. and in us a that and prudent puts that regard, that cash runway And the Rebecca

be that very and here. we are we profitability And we do said opportunities course marketplace in that we in we the the and opportunistic anyway, looking on market what thinking the do And have continuously. and that, those. been so about seeing having the of are focused But at would --

we ambivalent I never say So would you, to completely are about that.

our we always what's same of position. time, attention, on at good we watching are a the we're focused as in but on are which the are, On going execution very is and very, paying we we’re, business, contrary,

have Obviously, And planned comments in in hedge my on, we acquisition, given one Tejas, in given before effectively rate. the last we lower are the just a headwind we FX. coming same Halio revenue, add more to operating with -- change P&L, than on are while move natural thing currency across that have a the on much we much a to expenses

pretty wanted share darn basis hedged one-for-one So a on close to that the I rates. P&L we perfectly but just not to across are pretty

with Andrew comes Cooper Our from Raymond James. next question

little reimbursement. I as and efforts. possible, enrolled, should give tremendously that seeing been study timeframe readouts get bracket you to about an as in better mentioned if interim readout, thinking hey, drive case? What Nasal best already some so the for necessarily nothing patients bit to bit, that us potentially data? the at? give wanting a lot’s worst Swab and point to us guidelines soon Can be see just of tipping enough sense you when, you and when the be to new some we've need long got it's things But of say, case, are could, a you to kind asked, you A can little we maybe for time on at guess, for to look you interim enough a what need

see Giulia, want a on. get we so design, itself. things But too if study time as to -- in way design place prepared for and and anything get here. you practice the the of as much see of set kind We changing goes it's is results already to along obviously into look there data are and details ahead remarks, to course, patients. the at getting I'll far physicians the And without of here, want small said go I study certain the obviously add that's the very numbers Andrew, we one significantly in at milestones put of where on measure to early how the set encouraging. But look that key an got you of very and We'll we

way to that you to take the results Giulia, of And that anything there data. the are know, I is you help that where could seeing multiple that So points a that's… drive but add want depending of are you don't along publication on look. there earlier some

days. the up that's we think it's how do early are encouraging looking results and data along the mean, right. still looks. the to data study and course I the of check-in pre-specified plan The at I on see opening times

So we pre-specified look multiple it protocol. a using be will times at looking

Our & Company. next question comes Mike from with Matson Needham

is about but test. to numbers. then, Can you to the remind one that's want going ask bladder down of I penetrated large mean, probably there? should thinking to start mean, slow some years, kind few the I ramping prostate I up. just TAM So just on be over us Decipher, bladder the XX% And what next on

of there to to next is offset the just few urology that some the too the do side small is potential prostate that? help kind years, of down or it of So maybe growth in of the Decipher franchise sustain the for over slow of kind kind

grows, On thinking so slow or for few next bladder, the the I prostate prostate. as of side here where about size be prostate. here third I about of future kind of the the wouldn't a foreseeable see market but I referring numbers law is mean, continuing the was a down large years. denominator in momentum on the over Rebecca of the to

us that. much as I see out a prostate us and course, that And build you XX,XXX and of done patients our look test you similar do possible, roughly call addresses cover to we the the of So side. until year time we've that But so on would half indications do as would it things over market. current

said not we're bladder any medium urology focused right the kind our So mean, part more now. in as term. yes, momentum disrupting of of course, franchise, in the prostate have But that to long of contributor Rebecca could very earlier, we I as of on be a

term. So in it's not near a needle the mover

market. expanding bladder the niche I is will Speakers] we at the would are time. much that that be more and studies looking looking we next over at test [Multiple product starting over years other But just few

it's more earlier slower bit of maybe given something pulmonology, lessons just learned Prostate Or kind can about which to like a to then a something And ramp, kind not just Is or quickly to there test. your stage, allowed is pulmonology? run apples seeing home seem happen strategy of just than be to be the other categories of that's kind with we've Decipher point applied like urology seen the the really it of there apples? or success unique any from the that commercialization lot specialty kind call

to you fits you evidence, across firmer very physician's can to get is of I back you a entire a that been a a been and that the our in prostate, here portfolio workflow, in learned done repeat you and have very identify been KOL it's get successfully effective reimbursement mean, really successfully guidelines, very drives that. into that's need the go and the clinical and get and lessons always and it's lot generate same, into you strategy that efficient unmet and our done you team you commercial it, support, continue

to take Now and then nCounter tests them globally our those on Veracyte, able well. as the being you layer available make have, of of platform added in addition

the And job a a a coming groundwork doing then there I cancer a really market lesson well create would but of and done and And and general groundwork product is only had been specific, not Decipher expand mean, penetrated. we it good been exist really, for that's say -- that have did where good some that that lot really different are in currently to done a degree. obviously learned. hasn't Decipher of So doing we're and job prostate and market that market into molecular where new team quite remember bit really that we're prostate, the for that diagnostics has that I time, the to to groundwork that. ones has beyond laid pulmonology the little significant penetrate And been the then really

is So indication understood need by indication, the you point. well go unmet by this and need pretty unmet formula at

question Stephens. comes next with from Mason Our Carrico

with Prostate. starting Decipher just Maybe

the you then of to call then reps take could you tenured you there many some reps added have fully these efficient? out? are that could, reps of get and really On a your And how does test reps? And versus the currently? new commercial new Is for supporting more some provide on efficiency year-to-date team, you that color how if how many could reps metric long and ramped it

So depends for a hiring, reps, at been feel a paying XX-ish just actually formula. on I've obviously, you for matter no know if where I I feel have making don't number, think we comfortable sales training. really difference themselves, add to I for I business we're have long months want really point reps a you a just to it around they cetera, a on to pretty there's and things that work get that's the secret in to work on and and now takes timeframe. a to are selling handful like start right The and nine think But they're timing hard secret this really how six common what time this to very more. going, et across doing very year. hard

much thinking in to still terms left have two? of or of market? incremental at around maybe about next opportunities payer room color And year the ASP do coverage, of terms you over penetration this expectations then the Any -- commercial in or term how near run

slow just we is to that. we're we with there's And that But go them. payers on studies, the on continue whole there the slow commercial something us area in bet runway new was time was area on commercial all yes, more just this side, back on on. to the very, something add contracts can urology and year. yes, There very that's time. the Absolutely, contracts coverage. and we no commercial for commercial get new But that It's you focused these work we still information for about share more add yes, question every very is to runway side, the every obtaining

Our next question comes from with KeyBanc. Paul Knight

pricing, centered there. comments is that early around commercial the But on Rebecca, the on it payers missed it I ASP? the

the the specific and So course was of ASP. the going Afirma, Paul, the of and comment specific to to impact over change code have Afirma to in pricing that January on last on made QX or it’s year, XXXX the

nothing commented that to last expected of had the we duration So We regard impact with over had that. quarter that XXXX. new

We will go under not it's the are that next confident equally and duration now of into XXXX, year.

will to not necessarily of the confident it, think Afirma this. to worked be we when tied going it we're but for to have I to So down the comes have little ‘XX code through headwind wait just for change. now We a bit into ASP time CPT pass,

If it of you look our flat business, roughly was sequentially. testing entirety at across ASP the

get obviously the Afirma next and across so look it and And through And there's this this course over year, the will of provided. being forward we've detail takes year we that puts you not but have headwind. board, to

that ex-Afirma, saying was it pretty. You're

it's so saying of flat year-to-date. Afirma, board state even the impact with I'm across the steady

like to I'd Staley for to closing the session. Marc question-and-answer today's call back turn remarks. concludes That

this diseases. financial our In QX and We and as in a execution address value high that Thanks, across tests challenging sets operator. needs for We the committed believe apart Appreciate of to current discipline unmet us well it. of to I'm industry. remain team's proud focus incredibly portfolio in range patients as the date. environment, key that transforming care of our

in and this to the have to pathway and in doing successfully global are We a US plan clear test markets. our patients bring

forward keeping So of and our to thank us you you today progress. for look joining I apprised

Ladies this conference. gentlemen, concludes and our

You may now disconnect.