Veracyte (VCYT) 8 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Veracyte Second Quarter 2023 Financial Results Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Shayla Gorman, Director, Investor Relations.

thanks second us quarter and discussion for everyone, our of XXXX afternoon, for today joining a Good financial results. are our today and me Marc Chief Veracyte's With Executive Rebecca Chambers, Chief Officer. Financial Stapley, Officer;

press a financial our financial website section XXXX presentation release, second This available in issued afternoon the detailing release Veracyte results. business the of our with at along is veracyte.com. quarter this and Relations earlier Investor

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

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

In the measures the earnings website. directly addition, financial GAAP certain include in comparable included measures IR from to section financial are of release most of Reconciliation accessible this today's will measures. call these non-GAAP Veracyte's

will turn to I the Marc over Stapley, call now Veracyte's CEO.

Thanks, Shayla, and today. for joining thanks, everyone, us

clinical proven with and driving over business, prior demonstration million, adoption impressive $XX testing guideline framework our of revenue and an representing XX% incredibly our Our reimbursement robust success This test another year. the XX% inclusion. second was compared grew of clear through of strong to was driven of evidence, quarter which is core growth by

differentiated consistently top operations, million once generated profile. company. cash well our financial for approximately we a ability results deliver already $XX To to commitment performance in as again enhancing end, this record quarter demonstrates our the Our this strong QX as our in line to from

and contributing the in tests X Decipher the step-up Prostate NCCN status approximately in have recent team recording execution reported quarter, new a we a tests most This results the Prostate so evidence now that Level of patients. in with Decipher We far. the physicians XX,XXX to believe our to to experienced led meaningful receiving our talented we delivered guidelines highest us by number commercial

many are empowering We with their proud patients decisions key to cancer. to treatment be guide with so important insights physicians prostate for

We our year-end. estimates for market updated last the penetration prostate at

XX% for Decipher our believe to majority represent diagnostics of continuing we franchise penetrated with market penetration. the that in that outperformance the is the of cancer Given molecular now Decipher approximately year-to-date, prostate

While we've years made prostate this test significant to many cancer adoption, for we growth available continued patients is believe progress ample opportunity facing we work there to as for diagnosis. more in come a make to that still

we our as with tests of Decipher which test Spectrum, data clinical genomic XX strategy supporting with over line published a that share and tests, In study Prostate our We to evidence utility Prostate helps program. personalize National the Decipher the the to Cancer treatment from of Prostate published studies add from for real-world impressive continue clinical to suggest our of Decipher developing Institute's pleased the that the of physicians utility Results of SEER were classifier. performance population-based library cancer JNCI study in use matched clinical prostate the our Cancer approaches the intended.

risk patients scores with Decipher Specifically, patients aggressively findings the demonstrating test. utility clear show and more Decipher scores that with physicians real-world for higher more the to lower conservatively,

Decipher example is testing prostate our data our A capabilities leveraging to offering extends and understanding address. that to in we advance development evidence help GRID sets the cancer. disease to scientific research-use-only in dedication Our areas good

into Decipher GRID specific of X molecular studies the new insights separate from Oncology were may treatments. response ability findings help Society shared American demonstrating that Clinical to the profiles Meeting predict of individuals quarter, provide This certain Annual to

make diagnostic treatment quarter physicians due another performed, part tests we with helping XX,XXX record with personalized Endocrinology, performance This than decisions and more thyroid for is nodules. Afirma to customer better of outstanding the delivered enhancements online their we've made test, patients online mutation as ordering. well portal, to testing the improvements as addition continued experience including physician including to in ongoing our promoter

Our new penetration excellent the over enhancements drive to XX accounts. in and further commercial team existing add leveraged these of accounts quarter

low raising to we our expectations XXXX. performance, in be this Afirma are revenue now mid-teens Given growth to for the

about also thyroid how are into nodule Decipher sets to to and to potential we leverage data excited similar are our using testing biology, with provide the insights GRID. We help further capabilities researchers

improve efforts to tumor the in in on profiling. Afirma's we differentiate quarter, thyroid our lymph to risk as expression fuel based the genomic example, developed whole facing and and future these for Insights test nodules This of that continue signatures as that help invasion investigators meeting, regional tested risk Interestingly, for Endo were show help a gene may low our able enhance at identify were to risk ability node they to indeterminate study and transcriptome such cancer. development signatures XXXX patients potential hundreds product thyroid presented metastases.

environment. biopharma challenges in Turning face to Like to business. the others space, significant this year our the current given continue we macro

would so not result, time as revenue and and shift business. line yet and seeing a lengthened for to declines have projects well term, this our a is in the this we we new lines biopharma point, guidance we At continue our as reductions other updated seen near expect reversing indicate have in that are trend As signing existing accordingly. in

the with teams participate. quarter XX support the test progress with test utility vast we nasal swab patients lung of NIGHTINGALE, our for demonstrates, of Percepta the in enthusiasm We for strong medical study drivers. or pipeline. clinical almost proud the choosing test. more our of investigators, to patients I'm extremely our who PIs, clinical on and even offered to to majority Moving growth the the from second be significant signed up are in for so part long-term nasal initiation the site have the far and module study believe, and made This swab principal who sites

patient of we site enrollment of individual and by we PIs sites. than and our ramp-up piece driven our lower many believe, of the investigator However, challenges ongoing largely, staffing anticipated, is

Given conservatively in enrolling the trial last to adjusted for the estimates that, our now patient we have of during the XXXX. quarter second be

and on IVD Our cancer as Prosigna enable Envisia, which as States, focused the the us physicians current will test to United offering, of deliver IVD strategy, to breast test well products. nasal of is patients IVD the swap development outside our and Decipher their

was the definitive ESMO another the that these been Consequently, clinical at Norway study Breast demonstrated significantly the to Compelling care. had adopted including fall decisions, multiyear as we high-risk quarter. the routinely Congress in Prosigna Prosigna The of over and from utility cancer now of chemotherapy data initial study, Cancer Prosigna, patient clinically with from Beginning solid X,XXX test results a test including EMIS the reducing results participants. data prospective with data Norway, for presented in has treatment is among disease. test breast use patients for used population-based

for Decipher progress to front, swab approval, with good nasal with we Envisia continue make the On respectively. submitted submissions for and offerings XXXX Prostate Percepta slated our regulatory already on regulatory XXXX, and development

half and our our have with the testing excited our quarter of was our full exceptional about QX such, core in the execution expectations We're meaningfully an and through business strong summary, the first performance as for across year. growth diagnostic progress In year, raised drivers. long-term

So to now quarter to with our turn the XXXX. review will results for that, and I guidance Rebecca for financial updated

Marc. Thanks,

grew with second achieved million mentioned, over XX% year. quarter We results of $XX.X we Marc XX,XXX over the increase an revenue, approximately excellent period in As tests, volume the XX% total same to increase of the prior XXXX. a of

ASP higher-than-expected Prostate as year-over-year, of strong the and Afirma test, million, more collection. benefiting ASP from an have volume Quarterly than over Adjusting was per approximately was million $X,XXX collections quarter. by approximately was Total testing this cash Decipher of for impact, would well volume driven revenue tests. $X $XX.X $X,XXX. been XX,XXX out-of-period testing in testing increase XX% as Testing

Biopharmaceutical cycles constraints was $X.X the led other up quarter approximately in by Second million, customer and spending tests, was sales to driven projects Reductions XX% decline. totaled across million, revenue down $X extended industry product revenue volume XX% year-over-year. the product and overall and year-over-year. X,XXX

margin from mix fixed benefiting was XX%, the stock-based compared Testing compensation. routine gross year, exclude points I million test and collection. acquisition-related cost the and expenses. of of highlight volume, margin compared other will was gross given does results, margin gross intangible XX%, gross out-of-period down higher prior margin margin XXX gross year-over-year, other XX%. lab was up to but operating Biopharmaceutical Product which acquired non-GAAP basis XX%, lower to year. absorption. include to $X assets, basis costs, Non-GAAP prior amortization up points and expenses XXX Moving was and restructuring approximately the

and year-over-year and driven G&A Non-GAAP costs to well expense operating and to $X.X and development up $XX.X million $X.X by higher revenue, increased expenses, expenses Sales clinical development million. of million, marketing were were $XX.X excluding $X.X million. XX% trial million, increased expenses. by million $XX.X IVD personnel expenses Research $XX.X cost million to as up at by as

GAAP $X.X Overall, million investments, and expense million and cash, equivalents ahead million $XXX compensation depreciation short-term the well of We of loss which $X.X our stock-based recorded of of of we amortization. net a ended expectations. cash million, with quarter $XX.X and included

guidance. now Turning to our XXXX

to compared projections $XX well revenue revenue million and prior $XXX of to We and as year of first guidance a as to of increase mid-XXs in of $XX million our as full biopharma to growth million. $XXX result This have updated to our raised million results half $XXX strong other million expectations revenue. is $XXX testing our million

quarter-over-quarter other seasonality testing be QX forecasting growth. the strong testing, biopharma typical with and product are and year We finishing before and sequentially collections normalized down revenue to across given

testing gross margins, results projections this to structure non-GAAP to given that and cost This as assumes biopharma prior product total mid- our company XXs lower QX On full guide year in second well the roughly gross line the and business. of gross margin from with are half as high fixed we are of other margins raising

for cash investments. equivalents short-term to and cash, our Moving expectations

to capital comments for with We capital other related the impact $XXX hand expenditures of trends. As our always, working lab on accounting of now our consideration million are potential payments, M&A. expect upcoming XXXX barring cash expansion contingent end and to

of of by as testing updated as increase compared an $XX strength and beginning billing our the managed our guidance year, portfolio at this well the of of driven fabulous the our approximately this million expectations care represents Importantly, execution team. to

of first to And entire of we've half year. set has XXXX. the the team Veracyte performed for goals proud the continue am through our financial I'm to on excited I how deliver

the closing remarks. I'll turn call back Marc now to for

Thanks, Rebecca.

closing, organizational to like some share Before updates. I'd

of good that now step our her decided Tina has and from strength the an operational a Decipher business role. focus to Given is Nova for underlying the planning, succession on time down

leadership the of capacity. growth continue GM business from transitioning be in Veracyte and Biosciences company support business going Decipher, in Veracyte contributions, of to will XXXX acquisition of our clear Tina a including will We support been Urology Tina XXXX. consulting and strong success our X, instrumental in thank September all since on of incredibly has refocusing effective has for our of Decipher Tina So valuable to the an for team building forward. provided in the

of move John that providing will the of team. Officer endocrinology oversight care business, the CLIA and Light managed as leadership To role our businesses as into our urology, and pulmonology well end, Chief to Commercial

especially growth we and differentiated the our we're our on sustained to on had long-term enable strong a growth. with progress drivers in profile track XXXX. We the quarter, are our business, financial growth I'm making excellent testing just and for core an pleased

Q&A to call. their work, now to we hard vision cancer Veracyte the the ultimately execution go and of team care. and commitment patients like transform portion thank We'll to our the to I'd for into the serve

So please lines. operator, the open

[Operator Instructions].

Goldman Our comes Sykes Matt first from question of Sachs.

see of start pretty Marc, to Congrats been raise just different impact, on obviously, Maybe led for to a guidance just quarter. what but given couple with pharma I sort sort of growth another that the seen, to continue. you it's COVID gave dynamics we've strong impressive that growth. know, of But Afirma. an that had

of those of up, if but you little online a driving levers about. you growth. kind some signed within help ordering more wondering that bigger also that's what understand dig talking Just increased some you us of accounts bit Obviously, were dynamics the the and new just are in that the could into

comments I Yes. well. I appreciate the and appreciate that, as

which is a customers Afirma's mutation quite been now know, for about of ordering available key for our our you we've time, the also of very improved so as as consistently So product, for would and capabilities gene fairly well number a as the you mutation recently addition as something that a -- pointed looking out, the to be talked us and well, promoter them. as focus enhancing includes, just

an new new that to we and since have really multiple drumbeat but over and even customers little now grow this reassure we've that current We've to of gain that engage helping our kind then, ironically customers, with the that, had we our communication, with And clearly, regular time bit physicians. continue were to gain ordering go last of and time sales existing supply them the and top of opportunity to execution even back you adjustment with in for communications frame and in including we this in the accounts to challenges our which share chain terms accounts. obviously, of engage focused kind had And of customers, on were. comp, with reasons the just turns a process on around then then, take we year, both customers, of us

this a So team internally. of great by focus I'm to talented execution attributing lot very a our lot and

-- Yes. volume absolutely drivers, just one Matt. to thing And regard Marc's on and the with comments spot are

to teams, thanks story, in I and the ASP my to we've care comments. the as billings a volume mentioned prepared addition also In good news had drivers, managed

the If that the us collections, that have as which, couple CPT half to change, battling of of recall prior Afirma. dollars we tied benefit which year, last as having of a through you of we period were of behind of we headwind was the obviously, collect did about million well code now

we well. the that's to prior again, great to the on $X are million, -- going coming collections that where you of year-to-date a as period half look around at if totaling to So that's Afirma, growth tailwind story be

was where and to is story the the excited high and ASP from low both in earlier very year, we mid single guide volume teens to that to started So mid- we're which about this currently, a digits. obviously raising

for all to the their all, congratulations Afirma So a around, and in team great story all execution.

for Great. business, follow-up, very just then And the biopharma on have this guys flagged just my you early.

surprise, of sits revenue in of you investment commitment business dilutive gross not that the seems have, be that some biopharma that the how longer rest business? the margin, you have term it's given little of clearly a that It's obviously a to the moving where just which of how thinking of attractive, level it thinking But the of your dynamics today kind are about So given sort of and are of bit, and forward to business just and you the level to given but you about group relationships portfolio? the sort in the terms just strength in industry.

Yes, it's a point. great

the our recap which of maybe line, and in less so within is the than is things. of aggregate total revenue, biopharma just XX%. than sits And couple majority to and the other XX% of Biopharma biopharma less slightly piece a that

in included also so is revenue. And and services there contract IVD services

ago some seen ways. quite out we to and those biopharma based we a affect large projects, X ago. a terminations We while see, significant terminated. side, particular, macro us in quarters out very One, which we're did continuing few that our that about that particular, of a in project have was talked Marseille level the call organization in of On headwinds,

that new And so the well as backlog we that clearly up as business. had signing affected there

transitioning then contract in from have macro done these taking mean, because conversations, than a past is it longer has good headwinds. conversation I of we but been -- of lot there's to the

that balancing those businesses about making for and when those always of just we the our investments think in right forward, investments do, the strategy like So business and our thinking about course, various always going we us portfolio to at so and come. when visibility growth we see to point. far end for headwinds right are going The in clear front temporal opportunities macro is these the this of of opportunities the not

to continue how in customer given have or that very we So we business stabilize prudent be these to effects. grow

ramp again. of and and the general our for will that continue we continue right as something, you focused us, to see until of myself, that start all So Rebecca be to now manager very up to are business can on to imagine, opportunity

[Operator Instructions].

comes Savant Morgan question next Tejas Our Stanley. from of

This for that following question. Maybe is [indiscernible] up on biopharma Tejas.

talk towards customer mentioned also strategies color the around that of that portfolio. some you're putting you're provide progress diversify that some about You that? previously and you you're efforts diversifying making employing Could the to

obviously The spending. that portion good that's there revenue, and a it's on holding of a Yes, back large concentrated with you their impactful point. comment those making a is when provided customers I up very that previously been significant start a the to see customer has base few customers

those new been that we've often more so customers in bigger drive small to here contracts. into for even on bring initial pilots lead And a

I it's as have one are we that certainly seen then is again, than we the more and previously. having on of into revenue. of customers earlier, to more But that said contracts those to things issue able and with increase, that transitioning conversations we turn So deliver were an firm arrangements

would but to pace So but be some that. like to happening, continuing on are not at the that focused those see, we we're of very

of couple see very are aware, probably based delivery very revenue, on opportunities of in much you're U.S., our most diversification I team's remit. of the focused Marseille customers as our other out A that where I is think areas are our

leverage the Decipher in data with we have that we that have Afirma U.S. incredible the globally. also can We and and also

again of line. And but And getting there, other diversification. there the issue so over macro those continuing it's the those same customer finish are create opportunities conversations level for

diversification to strive be something of to going we're clearly that So is to that to that going for. continue and focus continue on base customer

how we the as medium began steady-state Particularly also then we to you could lap provide Decipher Rebecca, term? for for And in about comps, tough think color should early XXXX? growth for

to, Yuko. I'm Yes. happy

year penetrated to outstanding now obviously right? have think decipher, you market an this had I this XX%, year we've and be around about when think around

their when still cycle, XX% up XX%. that will, lot where even number So different think there's that products are us of Afirma if like or you to about there's from in a XX% -- move with longer you a are to we headroom life for of

time. I do to period have let don't continue growth an to have alone we So on a work any Decipher continue able that of for still will strong to to of XXXX, deliver excited very worries in XXXX. be lot to commenting start We

we continue it decipher, for and comes today. is ability going not revenue time. extended when year market XX in penetrate this to have mean on to to grow But we're this now So our to Afirma confidence of do a of down lot period an that XX. level or I

So Decipher is further behind that. very much

to now when going comes grow over expecting down Decipher. the we're wrapping course high So in XXs to it back for tough we're of the it, mid- comps XXXX, half, in but start to the to

still So on that in more quite over the a is XXXX cadence going So continue on and this level basis again very but cancer ability a not ending time. prostate growth year market to in patients to for grow high to to about excited continue go-forward rate at help comment the the

[Operator Instructions].

from Souda of next Partners. question Puneet Leerink Our comes

Marc, and congrats on the work you. quarter along here. And working Decipher all with Tina, on wonderful really great

going forward. luck good So

to Maybe anything quarter? year? and current that? Was drive with commercial the that's rest what there of question sales force helped That's the side that you a in is there And the evidence ask wondering, Decipher. additions the the clinical you commercial built. Could commercial on you that talked that, contemplating Decipher half I'm are for you talk about. for strength little get a on obviously, let me in to XX% the Were bit about penetration the helping changed place? you

and for I Yes, appreciate [indiscernible]. that, you thanks

new we existing of continue of and from and and quarter then talked who as these and about One how that that team the knock is out built efficiency have various after things the get hunt great quarter practices of strong ones excellent leverage well. relationships to metrics, with organization out sales performance the that on the it go metrics, park very consistently urologists our they we've

very that successful. so, some tend year, small up handful We've or in successful the and XX territory there, And to which very period and months added in growing that of successful entire a we to get about people, to proven this contributing accounts. so also -- be And realignment think or proved successful, did our Every business. the at to to is reps. be handful speed of very year start they've as been accounts team existing been more about X or have that's we small growing sales only they and about new really roughly

So performance both those contributed this the year. to levers

If year volume know, XX% time when tests; in so brought announced always alone. But mostly excellence. back had question. And this X we I the this you the just growth generation the to we year, a we think the XX,XXX last roughly that tests, in about really in do of XX,XXX you as to that's attribute beginning at that evidence the up talk sales also quarter, you

now that, why quarter. increase probably pretty seeing resulted has significant And Level with in honest, step-function a And so step-up of customers be I'll one X guidelines, I many we're that and ordering. don't then reasons that clear over think and a it's such that, NCCN new in first, this the we're there be think publications seeing I also would it's XX that

the that think to I the Decipher white space There's go after for here term. additional long for in well yes, So bodes much so marketplace.

diagnostic. even with -- significant molecular still penetration, getting our prostate any with are aren't of number XX% still kind a of estimate patients We who of cancer

to as U.S. to goal that patients in the drive And but is to get our so and Decipher to access globally for able well. not to that, be and try more test be just

higher prostate. seeing you to overall know that guidance. just I the these do given you're some I gave sort Got business how Afirma XXXX? that around provide context Decipher Afirma, Could But expect maybe it. give about hard it's That's now? you helpful. And to very you on Rebecca, rates context trend mean in growth of for

it's of Afirma. but continue surprised life the and with cycle, year And of Puneet. I in surprised Decipher, Yes, think we be execution I mentioned later to us, as the I of all excited us. all team this its about mean

on not I like excited is for So 'XX, continuing this going differentiation, about invest We're comment a and this market. franchise. enhanced Afirma, but on team penetrate well-established is I in just to Decipher continuing product am to the to didn't comment

We around that haven't around at and Afirma Afirma XX% tests was year-end, shared the we updated of being penetrated the the what beyond that. and numbers market in the alongside available having majority penetration other

think So here, white decent a or I we're space there's too, too. in room white here, but still spot,

so get And for we're -- continue going be in just beyond. it to And be going good 'XX we to go done. to and after a it us this is think story and

a I spot, think our vast at. are that's they're where we're of approaching majority the and in and Decipher XX% that of growth, we're our given Afirma driving good revenue.

Instructions]. [Operator

Nam Sung comes of next Scotiabank. from Our question Ji

quarter. Congratulations on the

So then we submission feedback that? next just the the getting regulators just in Might or any the XX was IVD -- on to is of was active that at so? any see last Envisia be possibility the be wondering on Europe. completed year, clearance a might might And end that months also, in with able engagement be there's there if you

so. hope certainly I Yes,

as So and Prostate mentioned This strategy IVDs. IVD our where goes the thanks are just back the Envisia, back of swab, U.S. for Again, remarks everybody. you Decipher ground then launching question. goes to products, in mentioned, to our I to as as and nasal we multiple including that prepared outside this

we December had questions. a our always schedule. of body. communication a absolutely ahead in Envisia last get you -- There little own bit with you're right, is rounds We've quite year, rounds a And several of several submitted notified

answer excellent of very you And second The back questions back, first And and hope very, of coming get order lot get did magnitude to questions then of in quickly. by iteration. team to the an and did an responding those our round comes a job with fewer fast. those you questions, fewer we

And to have so responded questions handful being point. or this been also those are to at roughly of responded

more the not so get at hopefully, if questions. some And some future, point near approval, we in

very it's but The very team know. proud is far still finish we've problem over IVDR just not of feedback and We accomplish, early, the until able encouraged the the what don't so line I'm has getting that to by I'm process. been been our done. it's it's

to going and So want evidence expectations set on I might to them to respond their continue that when but to answer and then and give to drive we're adoption. questions continue generate happen, need wouldn't what any all they the

of even doesn't mean approval, adoption we go country. then get still country get drive got got then countries. nasal the means body throughout well submit and for test and pushing the keep We by just we've the just same for using test approval prostate different evidence have we've that then And by in that every That country, various Europe. as to adoption apply the the approval will swap. Remember, once once then we reimbursement, and

Great. And then just a quick Rebecca. follow-up for

a us be again revenue portion Just and I other, that would prioritized, of remind manufacturing you that expect biopharma to that's the when that, contract of that? IVD know there's For part anniversary right?

I than it's to little say a Ji, but answer, that. easy an that's Sung question would fluid love to more bit

now, So anniversarying the the rate necessarily if majority not out. of and of the I in you run kind impact being would would, about think

being relatively I So million to and to sense? or a question now. just answer Okay. I the I'm that because challenging driver million at in not beyond fluid. $XX apologize those clear above Does of we're major one if not it's guide resources terms the because be think going But a make where to other are way it's $XX

Instructions]. [Operator

of from William Blair. question next Andrew Our Brackmann comes

in Andrew. line strong the Very generation quarter. on Dustin cash is This for the

just anticipation else and the of what to the business now cash reinvestment priority build what this the or future? something wondering or in continuing #X Just Is is changes up M&A the it most? the in

Yes, this it really point good it's at see changing question. anything. a I don't

strategy, both same. can. and of on core Decipher were as our just faster. investing doesn't are But IVD fast those and the Our still successful anyway to we both swab these thesis us continuing on make We push can growth as moving to very being at our those as strategy moment. go to as they as focused strategies as is any I the in going for drivers Afirma nasal is this We're long-term quickly the and be And projects. continue those as clearly and long-term growth think we on allow

So those key. are the

contributed On is said bar, profile before, M&A, me, said, as quickly is We would that. on always like Decipher for mean, not I've at all. businesses as very -- focused unique I for have. I high. funnel thesis financial to And the doesn't change very we the that would our we that be broad the very not

no change. So

that I to strong company to they're by many and in I'm focus think a going do It's kind proud our there's and our continue people that. achieve that cash generation been of outcome, team, to -- of see lot by to

Understood. in the period And guide? in any collections this part the future anticipated collections, of that Rebecca, raise was you are revenues? the had any cash prior on

Can fully. little you a repeat catch didn't I it you the a second broke understood guidance -- I end. part our of you were the portion, question? but that bit on up little

Okay.

this of year And in any Prior I'll about be, if the full part Yes, period was what repeat. would total Sorry anticipated that. raise? collections, just the so?

Yes, totally fair.

$X what is which the that's million. guide, guide the have we to contemplated regard is in thing with only the booked that year-to-date, So

again, expecting normalized ASP, XX-XX on Decipher-Afirma. on we're what's basis, around So more that's a in and just And year-to-date the implied guide. basis, a go-forward it's

related CPT a been care Decipher believe And we very of of of because are has we why which one that had as normalization on both take performance we the side, relatively further. that quarters, And stable the number contracts reason well to is for code the the as now issue. Afirma the couple just prudent of prudent managed do step much the believe that's increasing those to that's

to anniversary starting those. now we're so And

So because those we to not been resolved. on counting year-to-date extent is nature the temporal we are that in saw collection necessarily it prudent it performance that were issues have

[Operator Instructions].

Our next from of question Stephens, comes Inc. Carrico Mason

at updated feel This is could for here. on gaining competitive update dynamics color any on [indiscernible]. Decipher appreciate maybe Have Maybe the guys the competitors Jake on just you're share you the seen Krahenbuhl for the on you you within one Mason. Or like penetration market? I do market. But guys that traction? us gave capturing you

thanks I think mean, you question. if Yes, for the --

It this that to pretty a growth anecdotally If your can sales tests the and time that to mentioned, own clear in team you and volume certainly way we what you see year, terms take hear the quarter look extent growth I outcomes other we're think I in they think competitive that don't. terms about they've announced, rate, of XX% share. reports continuing feels been last same where it's at there's and versus from there our they as where of that in

about, and do customer macro a And to Of takes I I always you're at really it loudly if But the for that's very which very at examples the evidence you course, high a level. puts where there's for the also numbers sales level, to take Decipher, I themselves. going find think X on every speak we to excellent performing talked the led attribute X we that have NCCN have Level things that the really team incredible generation and metric. that guidelines

switching Maybe it. a gears Got little bit All right. here.

you manufacturing product gross think margin account we guys -- when by factors the take end into into as about what transition, completed year? we next the going of the should year, that's the assuming On

Yes.

account in volume let when You outside much too really that it -- have really income is I'll shouldn't take but I IVD is in we U.S. in make because because biggest difference it to you shows how our the the the statement tests going up mean terms into where of Rebecca comment,

performing few condition. see you it's is need rare we even as quarter. The And So Prostate, thousand been all Decipher a we we're good. well, to once what remember that's think, has a a Envisia, launch is, selling really today, volume I Prosigna. know, test but The tests

need from like up test see able really be the on in we'll we to but to Prostate market, commercialized to volume some of a so the transition statement. Decipher the Envisia, income manufacturing show see the And really benefit

we're that in test, to submit said, as XXXX. And going I

so after it will be sometime And commercial that.

room to So it's do. there. still we've got some for But important us

Rebecca? in nicely, tracking and a phase that We the happen. final And we're making focused have Anything the very this. to now it's on add team on P&L, transition of

[Operator Instructions].

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

This Mike. for is Joseph on

Just one from us.

that you from of study, maybe an expectation I give when for if the, release NIGHTINGALE for data be updated to wondering in With you guess, would estimated I enrollment completion the study. could preliminary able the the was pushback

Yes.

trial of a first the So through as as I which the about to that estimate, What final pushed we by second so I even coming but encouraged XX mentioned patient year, next and seen and conservative far. in beginning achieve in we've lower pleased the absolutely is we've the the want ramp-up that back into here, the view quarter -- sites I'm a call number with of really we almost sites. that that the initiated our that lower seen enrollment of we've one

excitement PIs clinical excellent done team teams Our at high patients have enrolling identifying and of and sites. an of The involved these sites. the and level by the this those medical in is very and commercial both job

And so that's all encouraging. very

of once them, Now at the we actually enrollment able look we even data data. in and I've terms are itself, to finish before said the before, as the

are year us. need see We Having for X certainly suggest are what it clinical up, the that utility, time. to guidelines and to there's are follow-up sufficient. X may there that status, need be said years, some can Obviously, we benign to tells evidence our -- standard to do to able going follow that, take see but to extent, you

get and the We'll see a necessary that U.S. have take our as possible So the And test in our in on master we'll We'll no We'll that. is as commercialized change and to there. conversations strategy the telling it. at this it's Medicare us. our look follow-up on with goal publications do -- appropriate data, soon what

course, approval that we'll mentioned of well, reaction going be to excited it we've submit swab OUS get we'll looking study. The the encouraged globally. pivotal and of launch I is regulatory Very launch and by to what as to then in and this so through through forward able second nasal before, to this, from far Europe, getting seen in and test the as which, XXXX, the element we're

concludes conference. Thank and today's you. participating. for you this gentlemen, Ladies Thank

You may now disconnect.