Veracyte (VCYT) 22 Feb 242023 Q4 Earnings call transcript

Good day and thank you for standing by. Welcome to Veracyte Fourth Quarter and Full Year 2023 Financial Results Webcast. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. (Operator Instructions.) Please be advised that today's conference is being recorded. to Investor call Relations, like Senior to now of Director Shayla would pass over the the I Gorman.

along at detailing year with fourth Good statements available to laws. joining release, afternoon, defined Stapley, business release begin, XXXX our full and and Veracyte's our Rebecca Relations this is Officer are This a year press Chief that us for that and financial like results. afternoon full presentation, the on during quarter as make under Chambers, section today for Chief call financial results. earlier me everyone, a applicable our discussion Marc various and today I'd quarter may XXXX financial you remind thanks of veracyte.com.Before Financial will fourth and securities Investor we statements issued With the Executive include our website we of forward-looking this Officer.Veracyte

turn and Forward-looking results can these release over Veracyte's section risks and statements differ, the of I in Forms Veracyte not the assurance Reconciliation or included understand call further we filed to certain Veracyte's with we the obligation Further, GAAP documents be under accessible are the uncertainties Stapley, the to no most and to financial financial updates could Commission, will call are now that XX-K.In CEO. any from IR directly addition, comparable today's measures. company during Marc you XX-Q this are business To including Securities to recent quarter. will give subject and prove website. Exchange our trends the include actual our measures correct. the the non-GAAP Veracyte's risks better provide earnings of most to to will uncertainties, measures on cause and performance refer they to that

joining a everyone, year thanks, and for XXXX was am us record share for to I that Veracyte. Shayla, today. Thanks, pleased

consecutive to thank Veracyte for $XX to cancer while hard that diagnosis, forward.I'm the and This than second their generated investing cash for decisions. philosophy entire the year positive flow. extremely more physicians, off, on further revenue a growth we care.Over cash and impact care million test expand is profile, our paying high-value achieve to transforming our XXX,XXX are XXXX, dedication proof enabling from in mission course of financial flow strategic and cash drivers our cash of positive XX% drive operations the us better their treatment team going of and like strong we prognosis we improved Our to significant grew proud allowing our is deliver patients expect to work generation patients' in and point to lives. our of having I'd

multiple is evidence of genomic data, but as that insights reimbursement toward example generation powerful attributable indications. our be for of to generation and unique capabilities, our test pipeline dedication to in guideline continues that of sets turn tests a adoption for innovation deep flywheel for engine, Prostate and broad development is in durable to is to inclusion extensible in of well diagnostic by which repeatable a the Veracyte Decipher clear ultimately AI a tests. success platform, commercial expansion Diagnostics and the drives also approach to our and launching This driving creates platform driven proven only platform mission, which novel and our not the way a this our Our drive employees excellence.The action. bioinformatic as refers clinical future across to and

in grid data penetrated to of evidence market SUO, prostate approximately XXXX, and clinical growth XX,XXX generation as cancer research even designation patients. current use penetration the decipher guidelines. plenty some clinical Decipher molecular indication on the Level supporting test the Oncology we XX% Prostate we of only of XX% status of prostate molecular we more the will expansion, additional offering.During for X the abstracts Decipher the as as studies, QX, this, the is will or headroom of now NCCN an Decipher metastatic from year. clinical and delivered abstracts from test prostate that RUO, publications to additional time.Looking to in occur prostate estimate GRID of Network reinforces local policy identify is Society we clearly cancer to generation XXXX, and for focused Decipher example Prostate of early believe on of receive expansion. even claims of to This to Comprehensive patients next focus XX patients XX are believe anticipate coverage could more test to later to accelerate Prostate Meeting for We become test final Prostate studies with or likely Urological physicians Annual backbone and cancer decipher for through with were bringing course or coverage the in payer the results presented highlighting One over year Cancer flywheel publications X Decipher whose at Over is of we data Medicare's evidence The our to National approximately further X cancer the with We draft progress. which evidence the get ability the and evidence library only, multiple added utilize quarter. or decision remaining this resonating this

journey This We clinicians additional an test moments we and who and their growth existing by in including was cancer.Moving treat from new information to prognostic to estimate competitive reminder, wins. could to Afirma or As accounts, annually results driven a Afirma. Decipher quarter XX,XXX record predictive are pivotal reported benefit for the delivers with approximately XX,XXX another patients there delivered.

lung GRID than the adding Grid TERT the and an for serving tool.While both RUO focused are acquisition the of our this Percepta patient on expansion, validation growth on approach mutation cancerous physician cover could of cancer focused record CXi promoter signatures the dedicated more Veracyte will proactively next new a interested test physicians.Decipher benefit enhancing portal [X] and physician Afirma vectors: for led demonstrated value could month, and enhanced been by to a long-term have utility deliver continued NIGHTINGALE reached of drive and been Afirma. further the experience us as NIGHTINGALE in signatures. years focus validate clinical patients offering, the collaborating summer. physicians physicians GRID and in global global bringing course mechanisms: year last execution which for MolDX LCD available the received our swab to bring chest continued XXXX, and three number Afirma care has that illustrations Afirma patients.Shifting to enrolling a close increased and Over well number of potentially dozen journal cancer a fully engaged expect first, to on new scientific enhancements draft prognostic across the the with modules.During we demonstrate the short for we of solid product period maintain significant launched with sites to years, progress Diagnostics enable three Percepta challenges. enrollment a new of in empowered of Genomics online second, have time, we for popularity expansion. nasal in patients and two study to complete provided sites challenges a XXX. which test tackling testing, support XXXX, key the large ago.Looking by to Afirma NIGHTINGALE test advancing more only the of help focus Afirma These we and course to accounts; of from with to that remains great and introducing journey.With This in expect to the growth through interest represented the data their enhance will test engaging on are our customers We earlier clinicians are growth The swab insights the have their and engagement clinical by patient has XXXX lastly, nasal existing clinical action. of to community who science noninvasive penetration and into the launches Bethesda to also the in and by the quarter, out is adoption publish Many made the the ensure new customer the and and of we solving Afirma promise key platform proven research. benefit over grow steps we in patients of publishing And developing to to ordering designed believe our gives optimism and option for for tests, as level guide reimbursement the

versions IVD to deliver the tests to strategy of of driver. patients their is growth key United another Our long-term States outside physicians our and

last assay half this some instrument NanoString the to began With worked in Over maintain breast France year. the transition, last supply on mitigating from our component NanoString Marseille for through we experiencing the transfer supplier service, we of we the manufacturing issues have for Prosigna largely have and of kit quarter, near-term second of location. completed our most while we dependency

our As were ahead a prior result, of QX Prosigna volumes expectations.

supporting on our best source our the to the approach continuity Looking we we of single we we differentiate diagnostics now and shared situation level forward, dependent suppliers.As where are evidence a quality monitoring us. executing doing ensure we're the previously, remain leverage and to IVD multi-platform on of them wherever

products a cadence over that key test activities on years. of and IVD the market development drive kit will focused are We launches help steady coming

our to thrilled risk the NextSeg step our for we well XXXX across the is launched swap less minimal for journey. PCR I'm nasal Veracyte novel Decipher platform, position CXi portion it disease continuum, expand building or residual much us the monitoring whole MRD sequencing genome Veracyte. to This requires and journey.First, than CXi's care into solution NGS-based this the We IVD to to in around test tests. assay XXXX blood, four to launch of patient to portfolio. testing. of And launches than the making the cancer there, treatment Dx. we patient from expect submit the be same mill welcome the on diagnosis existing of and approach test Genomics, a fits an Percepta many market recently in and key MRD enables our care under late more continue available mid assessment NGS.Turning IVDR across be competing to recurrence expect From in the lower to commercially role address closed updated enter CXi disease framework, soon will approval which ideal Prostate us and time oncology catalyzing to on to to early the on acquisition to Prosigna our acquisition and to team serving Diagnostics of our Prosigna We

rapid the the develop. panels of patient-specific immediately faster that genome almost after bespoke whole generation assay is than available signatures performed, weeks to Second, take is

growth the care the to believe the And catalyze for landscape turn announced by now strong in XXXX, physician I launch the our rich of a a possible on about decipher. to test for muscle that, of which leveraging where collaborations we we genetic treatment molecular acquisition, we delivered to we uses cancer, for will tumor to even of first mentioned we and more I us data in and same continued in believe almost that urology biology will giving our widest outcomes. versus expect plan are can for and technology we rapidly MRD the that commercialize the performance identifying half physicians trajectory Third, a when and for bladder earlier and review view CXi's channel sequencing, tailor will patient, a am has Rebecca approach that because first we expectations of evidence to the imaging the time, effectiveness detection the takes other allows we impact enables financial their results excited tests.By patients.With get having deliver the XXXX. development, whole tumor more real discoveries.As view quarter more better further the will invasive genome lead

$XX.X record volume Testing testing testing year-over-year, of were increase to and ASP. points finalization to $XX.X Non-GAAP related benefited ASP clinical higher higher HalioDx cash excluding during given balance compared at million up year. overall XX%, basis of pre-announcement million year-over-year end of cost I develop was points than of of at gross increased same marketing was to XX,XXX expenses XX% assets, $X.X access million our the million margin IVD another expenses which spending in million Dx from tests, $XX.X and collections.Total does to to and by was cash $X,XXX. of gross other which GAAP by an infrastructure-related increase mentioned. an of XX year-over-year development our and compensation. collections, lower payments. was impairment growth quarter XX% million, over tremendous a NGS with $XXX.X prior revenue margin platform. Testing exclude lab on was due been due $XX.X XXXX. $X.X studies.Sales loss job million, million but constraints technology volume quarter approximately prior biopharmaceutical to a to fixed million revenue million as gross Biopharmaceutical was the expenses, up $XX higher million which costs personnel primarily of cash $XX margin expectations We Thanks, year-over-year the supplier the the $XX.X year, million and for XX%, XX% Afirma was of period and We industry.Moving Testing prior will and over NIGHTINGALE was higher total of to year-over-year, increased Product Adjusting $X.X restructuring volume million, and and operating XX% access including volume, ASP expenses to patient results, Decipher the than amortization million product the team period margin as costs position test was margin Fourth the have acquired higher-than-expected XX% million up intangible out compared kitted to approximately fee approximately million, expenses. recorded collections. would out-of-period approximately tests our grew year, and QX $XX revenue, up highlight to prior with XX% the of product increased prior and was period fee expenses gross increase and this XX%, include did $X.X million. across G&A non-GAAP we net strong driven driven due volume million, down to associated assets, other to investments. up impact, $X gross Biopharmaceutical XX%. basis XX,XXX and NextSeg were a Marc the the We approximately million, increased stock-based $X.X and in the of our compensation intangible ended XX% million absorption.Non-GAAP XXXX Marc. over depreciation the amortization. our cash quarter cost limiting approximately operating of X,XXX and revenue stock-based Research and the in with by issues outlook. revenue, of down quarter impact $X.X a line from costs $XXX.X equivalents, million was benefiting $XX.X of tests. with resolved routine Decipher XXXX by $X.X other $X our and and collected by now the $X.X $X,XXX over the XXX acquisition-related of cash the XXXX.Turning included tech

XX% of growth guidance a product are $XXX biopharma market. revenue an year-over-year as the We evidence the in improvement of of have million revenue seen total to decline of other XX% million. revenue reflects This testing and XX% in yet maintaining we and $XXX not our and to approximately

and roughly XXXX. XXXX the cost efficiency to of out-of-period of increases, testing benefit margin from million with in leverage list tailwinds We annual expect price than offset the non-GAAP and efforts merits supplier collections $XX more as in gross be fixed line operational

to to short-term We with million million maintaining and $X guidance in $XXX are of including cash and cash, million acquisition-related onetime also expect end XXXX items. between equivalents $XXX investments, cash

our barring As is always, the M&A.Moving to cash quarter. commentary first potential

impact the of total in in typical given sequential fourth revenue, collections seasonality. quarter We a are decline the and forecasting cash

CXi non-GAAP we [Merit]. higher be operating the expenses impact reset taxes given in the annual expect of Additionally, acquisition of sequentially to and the

and usual the compensation due benefit timing and forecasting excited on have am payments.I heading XXXX excluding quarter, call. CXi acquired to Q&A strategic course line. we slight our open the acquisition, of are closing of the the priorities commitment of the into year. go our of the usage We'll momentum into about from the executing of over Operator, please now considerations For a cash we cash portion the the customary the to

Thank (Operator comes Instructions.) of Nam Ji line moment with question, please. you. from our One Sung for first Scotiabank. the It

off year. mutation Afirma. actually just Afirma for of promoter quarter Congratulations volume of you sense kick of of a part the particular great that the kind Could of useful percentage on what Maybe the that be give of a us TERT the would that's testing with capability kind and volume?

very TERT certainly was thanks year. Sung, much Yes, comments. condition. It itself, a relatively for your rare it's a kind great On

small. so, you show And that got if that. know test larger in patients up percentage if mutation with that it's a have we're actually order seeing. is proving cases. don't currently of Having to quite that, the it's useful don't that know I extremely actually I be -- certainly we've of very number to said that percentage the the

Afirma. how it's we Yes. the XX% so single-digit in range. the I is more a how and a is that of being ordered sense result have my frequently frequently that actual of you recollection mutation time in ordered is seen. type gives But percentage just believe -- with has approximately where being it But it the positive a

overall because about necessarily is coverage about seeing for, aren't it we having also, with I more is ASP It's and differentiator the clinical uplift a is think to benefit. but competitive TERT the of than Marc's us have something TERT from to point, not assay a we the company. more it's it's it contribution regard, -- importantly financial contribution necessarily for the patient about more

And team that and -- relative to our landscape go. think and have of about capability business it's one really sales the we enhanced with another think our really the ultimately Afirma particular, go It's test also in having both where ways team can our reason engage their has customers. guidelines helped I our to and given competitive

it of we so, include always part Afirma. felt And important that was to as

XX%, more said it I actually And apologize. Sung I was a it's -- third. Ji, like

wow. Okay,

Okay. mentioned first indication -- follow-up that be bladder -- does is to Fantastic. about the hand-in-hand muscle-invasive going about kind genomic the is of then in synergies could of where offering offering? -- plans you you MRD go of think the my you Decipher Could we MRD Super just the remind Bladder, there kind platform? and Just kind CXi, cancer. And for on us helpful. be there the guys Decipher the how should Is the think classifier with your there? do how Bladder

to tests in going are we the be menu mean urology I have that Yes. there of the we to offerings whenever synergies space. always increase and can continue

years subtyping and a we're and It's test. didn't a test it's to -- low that bladder particularly relatively of we more know, of you treatment. determine As ago, a course penetration, drive what we launched few help commercially. a But had potentially

the that. being it it like One is point -- of while [cool] reasons a completely new same think product, it about the you if is -- it's

that we're Decipher utility. the enhancing from bladder half think a to energy Prostate.But reimbursement wanted really do MRD and of utility that want never we're benefit has we're for test think test seeing to MRD, opportunity on of clinical ways continuing refocused a to in But we the now cancer ultimately the to which develop test what and bladder that is clear is a at in And we've matters, distract of so, -- the in of further of greater. launch muscle-invasive And We going path point. the test distract market that XXXX. in and our this not first

in you'll continue bit development to hands the to we've about R&D and the existing we where the beyond quite talked is, that do going and of care And activities us force.But then sales one test our and so across activities see you're urology work our put commercial that's in both that, continuum. a investments is, in before this see ultimately, thing our as patient's

treatment helpful actions, that. And so, can unnecessary performance up or either tests do utility we'll continue reducing surgery to the therapeutic or as other predicting or that of with come in diagnostic we procedures accelerating have

So, consider an continue the road map. urology to that of part important

comes moment Tejas from Stanley. Thank for of Savant the with you our next please. Morgan It line question,

forward couple there gating assay. This to half is on on the what wanted pull to to a is And for factors launch done launch first be lines? What levers prior I Tejas. remains are the you And CXi the questions time Yuko of there? MRD ask call the in XXXX? to could any pull

the for team then development that we're to off into to going waiting now is to test that the integration few then that quite One, progress a is which samples the need Sure. well. activities of product Veracyte.And kicking which the and to that entering part of systems need is continue of Veracyte there's question. other this through muscle-invasive at we a CXi, further order then run part go go of and that will early through here. and do that's now team. the as the Yes, is response the then product bladder that of assessment test, on itself, Thanks that to test point, for course, our continue part and in process, there's the we program normal on in through steps launch there's And period Then this reimbursement. team to the that is tech of year. And much very validate get the of have integration to

that way will. any was, times steps, comfortable But will. If through assured there feel is steps. have course, and if a of there line a following a we we rest given before.To think a faster, go forward? you of have there's quite question experience quite with, conversation different can we along is, is talk that lot your And to opportunity of We've lot. few that the number team we been we there So If about all for a pull provided I in to a steps on, looking the way, a it. those time that's it

in So first of plan where change right record are of no half the XXXX. that's we now. But

I wanted ask then data to about set And you And sequenced also have significant many amounts monetizing are data. be how about about think CXi ramping of volumes that you as you'll How thinking generating date? genomes to over time?

Yes.

So good question. of from five whole amount number front this I seen And their me, or different doing of number publications, data. CXi a of been a looked the they've of you've so. those at don't actually of a have lot genome as for bladder have one a number significant significant. years in it's but years, of indications, each of being indications, got in they've them. And

endocrinology, about In Veracyte pulmonology genomes. that very think while, whole We've the platform. way in transcriptomes Diagnostics overall generating in as same of the and terms been in I of for CXi data, generating much in a and has monetizing been it I think whole urology

we grow. our data MRD an with to asset, as the us. continues get interest future. rich I have think, biopharma available not And incredibly That's And of expect We, so, continue focus. to to in and course, primary from now set that an particularly

have continue follow interested We now. on the any is that opportunities. data in much pathway. who described But of diagnostics Our we'll to and I've clearly biopharma those primary some set in opportunistically, explore had focus have as on up we'll past, contact in We've some that. are our the right pipeline very we with

the clinical utility managed we GRID to assay similarly efforts care generating help indication And other our very broaden our therefore, and MRD efforts. commercialization and the you Afirma scenario can imagine potential GRID, continuously where and CXi, subsequently in a and Decipher future, which acts also are studies, expansion where

And the response But really to comes diagnostic absolutely here. approach, and whole we've differentiated monetize does I transcriptome Marc. kind allow effectively, genome, of more X quickly this described, or it's markets whole whether a down approach the to get taken agree so, with platform these have stickier we whole us it given when

Marc's to commentary. just that So add to

both of different this a which I out, are Thank positive. you. think there's play couple of could see obviously we quite ways

for please. comes moment One with from this Carrico And Mason next our question, Stephens.

on Jacob is Mason. for This

are end just your and help grow you starting what us out takes your I what's the but Afirma XX%, little puts through play guide, in know Decipher you're you and XXXX. expecting maybe helpful. color guidance So more of think to to respect that out embedded breaking with bit that and just for gets Maybe us be low end could more high guide XXXX with your the could XX% maybe to and that just in specifically, a revenue growth? you to product would testing said more giving some versus

Yes, happy to.

of to about it be XX%. be obviously, get as Afirma average the the And at at a think I the the break expectation easiest two.We're the average and XX% markets important the of And So, I headwind their as and have We're the life to Decipher you're Decipher, absorbing significant our confident cycle. ability of thing higher the -- approximately penetrate is level. it they're very can't from in Afirma of different to of it, biopharma When will -- down in the down very think But thereby to will absolutely out. below into the in good portion to decline the the growth to most XX%, growth two it be get point a a is know XX% going point these out-of-period both significant, we to this correct. to while side, we comes stages comp expecting testing will to on than time. up revenue and are not I be prior way of range periods product well Afirma think when life as result, you

for significant slight and two a period in have think first seasonality, the and that headwind, a charm, overall noting. trends growth products.I a of remarks, between the the I importantly, the times mentioned We still collections worth these both third is this prior are expect as prepared we do difference of in we confident and quarter, in very

Afirma quarter. quite -- obviously the On seen we side, we a have strong saw fourth

we weather quarter Decipher, some maybe years, a down for even more grow. are in expecting than of Afirma, so, year-to-date. seen impact are expecting we far sequentially to And And we prior a the had little so given

just the little guide, bit more so into guide. a color And more QX

think be that I helpful. could perhaps also

terms Have Got are what noted And Prostate that is guys see of the MolDx share? in much this I it. helpful. and started up taking LCD specifically, dependent And dynamics? guess you Thank of through competitive to any penetrated you then Decipher on in guess to in just still with you're of year? that's Yes, XX% kind How the potential you Do coming that right you. at prostate of seeing the like I feel market? the competition more to on shift now this end reach into XX%. market year you next in

patients is, mentioned, mean, deal. second XX,XXX it's I I Yes. year. Obviously, to not cover about a a great That part first. that as

seen Prostate test, we important test point, what who the or cancer -- all most that's effective I beyond on to Decipher that most the in thing change more mean, I publications have from in the beyond of with -- the outcomes and be LCD, vast important. for penetration competitive as also we our that And getting or much of just from to very And of U.S. so market be be great NCCN generated, that we're if X Decipher doing because U.S. that that the have, well, more drive referenced importantly able we U.S.-related feel and focused the KOL prostate research the way to I way. remarks, I experience pent-up studies the that perspective globally -- today further very other we benefit do involving dynamics to prepared certainly, we're U.S., with demand so patients clinical to the the It'd order and that from not great But U.S., a really, haven't continue people experience how the with outside drive can I in do continue to So there's wouldn't But is and -- then say array market terms perspective.So it, are comments think of testing shares. level gain the get of We're to on many have definitely as the patient at think about we've those with the can more not guidelines, publications that still that that honestly, Decipher mention Decipher, -- market the patient we've penetrate other. this to of concern any Decipher focused market the everything that. the any Level U.S. experience one I test. to a in in leader.So, for we all seen not there's the plus be but it's there's share.

for XXXX, think -- little the get I they soon or PCR, than as the create from our our a on there optimistic be of to interest market a we would bit do from adoption and end have as expectations of planning a Decipher we product launch can go otherwise So had more at are to scratch. we're level which

excitement for So, of side going Decipher on forward. lots our

please. It next our (inaudible) from One of moment question, with line the Blair. William comes for

December. on nasal data here published you swab, First validation guys in

of Just that how follow-up had that a as wondering TAM smoking received on since then was you are individuals here, given this sort you've talk validated publication. the about if feedback to about And can thinking on history. you some that, the

great Yes, questions.

that we of ended data in couple getting years up is ago. shared published or we in actually a data the previously CHEST that So, publishing December,

who in commence with hand in is now that. to do with that. future. others helps It it might congratulate those that it So, worked others and We conversations us. publication I there.In conversations to is that couple partners publication. team with of work have It's start do we things to some see get does and terms finally entire and us a outstanding publication, the also to us our into peer-review I the it publication on final I great to One really have outcome of helps ahead and think, interest, level a reimbursement an a of potential nasal think getting want for of really out swab

a because, at about kind the that it come itself you nearly in excited sites investigators sites, utility part being to and close one So being those very think those sign so from, and XXX of of enrolling, that And how of to and my far interest NIGHTINGALE operations about in to that, and if interest a clinical utility indicators level in goes certainly swab interest prospect I of level then of where test the hang only is of excited come initiate gain and of the that.But takes the our it's call, about up, from XXX think, what of commence the those with it institutions to to standpoint, can nasal study. excited far desire see as enrolling sense a see identify, so contract greatest sites, I I is study.So on me, of significant. swab kind in from really of we're mentioned a out the have greatest clinical that nasal clinical interest

Understood.

that staying on topic. You're

Yes.

you did asked history. Sorry, I about TAM and cover sorry, I'm smoking a that. size market should Yes. the for you

are eligible $X.X beyond smoking market incidentally that's just studies are We and million the is But have actually proportion focused smoking. found, patients the trying really be damage is is or that airway, course, the done market largest until former in based the don't which I nonsmoking. at. respectively. And far, by the require really for know not. By -- criteria whether lung who swab. outside current expand very It That of of those million, To by cancer swab smoking damage necessary patients far, one could not have is proportion nonsmokers. the that far market. same includes results we're that a $XX or to lung largest on market to expand the that to and mean, Just history. study screening those a nasal of the modules those a clear, would biggest looking who who that are cause whether measures epithelial TAM on product you've produces biggest we the the eligibility of the doing initially study, next know by of you would future don't the well And and TAM significant the the fit be is, that step for nasal and smokers

switching over Afirma. And to Understood.

for about should we for about this if term any product? dynamics XXXX? longer wondering And be Just considerations the in reimbursement pricing then any test thinking

to that. take Yes. happy I'm

we those to rewind with resolution back see you course did the of clock impact in XXXX see, the of we benefit of and many impacts if XXXX Afirma, XXXX And So co-change did tied XXXX, the obviously, to that. the for XXXX the then of co-change. of of the

reason all based this resolutions history back go for the the on why in at is throughout so, ASP Afirma that is elevated. And I those quite of time point

comes And today, so, a down when think I great we're position. to it it in

the continue maintain really last Our why any think wins goal position. to XXXX quarter.So, come that well. reason managed side, We through that plus or is back that see given be course the I We half we'll no confident see to of of Afirma doesn't big PAMA able bear some care smaller as perspective, help bit that we minus be a in from over dynamics not to so. a we to until as reset maintain us on think can't year had do ASP to a the

done and be highlighting of side, care with given on contracted obviously, great the obviously story work about it's of side worth going managed a think its nascent course but to about collection going that lives. the more co-change think team think we're also of quite we And I feel and portion the we focused Afirma, and the the So, on the side. has Decipher I both it's the billing I -- less and a coverage dynamic on like had a forward.Over different

we're we on XXXX, the have very of course We've the Decipher number course of have so, a over ASP. some and And gotten the do XXXX. and wins more good over XXXX we'll of story a hopeful

progress support the and publication so, for coverage that obviously And the status can that the clinical we're continue Level in given it hoping has it has. Decipher, to effectively X we

Matt moment One for Sykes question. with you. Thank Sachs. It comes next Goldman the our line from of

Congrats on Is there benefit with of that much applied to see Prostate? to your your commercial you be test? much quarter. quantify established infrastructure how can And MRD from Decipher any the how way Bladder

reps And our than alone urology the we're less great handful year, significant. out question. mean in see the got total and a leverage Yes, been the I in you prostate growth of sales We significant of in that I urology force the numbers. added that see it's of Decipher. think -- that we last very can has a net getting out you

test mention think substantially. One -- leveraging MRD-based of we the already. cohort there's think -- reasons treatment the that be the a community, at we for that of group to test bladder importantly, have But the in us, existing we got, really from done way is lot to the in many response bladder reps their something being not without has prognosis not to actually for to goes and terrible effective, been time and again. why practices menu force large reasons meaningful.So, who work in to we've that's right is having sales and and of an the benefit with with out down these or whether is our which be more will grow to the do we having the relationships back they more urology it that it available to got and go as been we'll there -- comments was think I offer them the enable the fantastic they've able made are And first is leverage is cases question, think able that it the force have, incredibly determine to to is patients dealing the to cancer, having or we urologists being offer to all being it a sales we'll

The reality be different practice. specific of within might specialty in While have it's urologists that and practices specializes a we might is it's might general. them maybe different incredible that one a a to so, a sold there dozen sell access you -- to those be product within in a bladder it find cancer, and practice

in to channel. the And deal don't required of sell order extra our a in test anticipate so, we great investment

cycle the obviously and would franchise those Decipher we management more all has test, and invested and benefit the of types And just and piece client also into to from historically, thing. sustain the on been which side, now should office that using MRD staff Agreed. I the in also awareness will services infrastructure knowledge the add efforts Obviously, one revenue extends the commercial of interactions. the and help order

as on do Got this helpful. diagnostics cancer color. do see but has you durable growth it. That's Marc? penetration? thyroid to the reached you penetration, specific And really earlier, Afirma TAM time XX% I And have it then is that once touched how we helpful know a line that

an penetration line. think But the you than just we've and during that cover we've have in on investing more Afirma years we Afirma don't to estimate at that that long in call. this TERT have. this about been if heavily just and there's physician Afirma's invested the a currently you still experience We the And growth that out launched to the for conditions indications we -- We talked about portal. in got Afirma. We know, invested it, currently get currently point, years in the as GRID. with we to and that target a left market time dozen ordering multiple the there, We far it's of been taken XX%

of we're new even more and them with time, in physicians use after more existing we're and time engage accounts both so, often wins to so, And accounts. more creating opportunities gaining of terms new to and Afirma cases convince in

eventually of a even lot does, amount to that hard it's decent a we've that got time put it's so, go as in always clear on headroom fairly everything when of still but frame plateaus to a And endocrinology.

with moment One line from question, next Mike Needham. Matson it's our for and of the

guess kit other at Joseph looking is just I Mike. for on development. This

if and have test versus other disease question You if obviously more assay. now ask wanted you I on diagnostic guess your more guys and any a areas -- there's but hands focusing guys are with procedure Envisia MRD development. a broadly, maybe you Or it's lot a just to in on Decipher CXi, focusing

Just thoughts kind to of wanted on your get that.

question. great a it's Yes,

it, company now come the about further. diagnostic even single Afirma that And to company. a can addition of MRD, think Veracyte's we really with you cancer from go If broad product

that geographical. about with I'll we've talked think factors the start growth about. you If

we've that you really well. So of three we're map next that behind that the products products IVD the or launch the amounts road U.S. our to had success see our the really U.S. with over and few there, been launch has of four works. extensive we've us we've in got can years And what model our adopted that outside outside so the and outside with the tests, a opportunity our to clear publications going can real the U.S., to successful grow demonstrate the for U.S. as us benefit that

area continuum. one of any we're think on that cancer but suspected focused for are a a through way helping All part is screening risk in like rather on almost nasal diagnosis, second from all those patients module one.The cancer, who the care or going than lung continuum patients And of prediction. have across of and high-risk wouldn't particular and to a who the is having the focus patients to classify care prognosis, those a a have which as way diagnosis, therefore don't cancer program. number swap, say have entire I that's the So

are that virtues monitoring. through and that into of the move Decipher the the that more way. about to prediction space talk benefits publications see there treatment to and in recurrence very as and starting way more using meaningful Decipher a All way You're

that And prostate, could And it are if about the about a be now healthy think for thyroid, other then And part that to way.And cover but think dimension continuum, across very you Veracyte of about the more lung. the screening broad everything has also is people, indications. you third we indications. so, way, able you much breast, as how that it extensible bladder, think can MRD, care with

is large we've extensible generate great that -- that the data platform the of of of other benefits across is one indications the So, we got, well. as amounts that can that we

always are to will. about us through there we have. on considerations have those there's we're go do as you expand on. be, well, might but see can think channel indications clarity the for Of No there certainly and to and something that's what and very focused opportunities we current But that beyond certainly yet course, you

Okay. just Yes, guess in their goal. marked I great. platform But more, at Obviously, CE like looking the one shop CXi, is maybe one-stop Europe.

are indication the in if there's acquisition? clinical guys you Europe, strategic still for right prospects maybe the ongoing A, what's pursuing I are partnerships imagine after used guess, wondering Just that But use or or any trials that? case that in now. I mostly

as as course, a what sense Well, there imagine, continue selective that's of integration key we're you conversations. are part makes about acquisition and there's some existing and to a been and to the us And pipeline can very pursue. of well, very for

Our be the test, with to approach with the type an especially is going bladder of LDT test approach.

that built So launch determined is far it as that's TBD, to as if leverage the in platform right as [IBD] future, not certainly that we a now we've kit there. we've and plan the lab the in described focus that an way as the developed the initial test

in and we U.S. how come, MRD for again that how can the there geographic So might I that outside expansion us again, future that, of about And use another expansion optionality lot in talk a play to when the is is terms in opportunity. more of

Souda it And question. last Leerink Puneet our comes of from Partners. for line moment One with the

for Thanks the questions.

already. asked MRD in leader you understand Veracyte's in for you if market how about, -- fairly and expecting we So, the and competitive And require but also And does how year? with position market? should maybe is CXi whole maybe do what my does just it that repeat us I correct. here if first anything help whole genome appreciate initially just point, is its provide multiple And want investors just is it wondering when up, sort that year Marc, next then this a just can of that has it a margin This this starts assay. on investment gross level this assays, scaling one given you're launch -- to know the genomes on you before assay about of think start is understanding market the emergence in there been

just be we going Veracyte positioned how maybe conceptualize is there understand so So to in MRD. that

Yes.

question, the let I'll then I'll Veracyte that the we not their data for it only whole rich with referring that And means but question do. you mind, solution, third for gross thanks I'll But Rebecca on don't If second -- answer margin. first, and answer answer then question the the first and opportunity of I'm about to. an this. so about a What to platform that go every a which genome-based this, mention we whole but acquisition we're team, for approach, we or It talked to single asking the glad a announced have diagnostics CXi. that really when have we well incredible genome genome this month through I ago every we is fits like sequence is the subsequent they it's for built so that landmark, get not patient. whole product

data. rich incredibly well. so [input It performs And of] blood, extremely requires test The X a low mil.

a fits we we this the about much into speeds channel path into don't for You CXi to then as great time play believe, a to patients.So, like have well, in, reimbursement. assay that as to there's time and going really performance bespoke the to time, bladder MRD And in product have particular, to which a up to create we results turnaround not outcomes so better that market it's answer. where clear that that Veracyte, well mention

how that's see. So I

to addition around that a really, channel think, that all as to But test we is portfolio. number other in crowded is And when approach in very to approach indication a into we particular. it our specific to Now, years, a space. a in differentiator not again, that's our the philosophy I guidance bladder we significant have why announced the -- way of MRD And and and portfolio develop think, we've really focused one our is that for gave over we've enabled change our gave here we the you generation things CXi a acquisition I do cash of that project that thing we've and done absorbed mentioned.In investment, this. investments profitability and acquired terms absorbed, I management us refocused current to the just important the done, really know, does the a this that's

to we way, acquired fair it's we've we only to figure I without capabilities not doing.Do so, invest acquired think, that in were that you any want also And what an we're exact to margin? in on we're asset, talk have giving say just, MRD everything an investing gross about because going AI absorbed it's

the just future, your next Yes, to happy add, one And also to cash thing year, be in in will have question flow. for answer Puneet, continue the to. generating we positive future, said we to

any worth very organization channels. margin, the well deliver. Decipher margin going volume would to And a to ahead think as I more so, corporate current forward philosophy of extent, sustain gross to and again the both we reasonable obviously we'll with closely, that Afirma go over we than different periods believe as have other with with and to in lab be And very expect and very time something time. for business as acquisition. and this how it you're MRD. expecting we to follow doing absolutely is the pursue.With at any between can decide that future average efficiencies that's have we the financial assay not we think But of regard we to we're the that our can margin ASP have continuing profitable reasonable, correct. similar gross time the to with we that both multiple through shared and you perhaps think the absolutely a all we whole-genome is we lab we've but way And have the the expecting over all We're time activities looked you It gross -- as

So, I time where gross time, there. bit confident be we we we're think margin and get a over to exactly end. it that want little ramp to will of to perspective, to But will a take from

it. Got

perspective, or expectations to the latest the be makes Okay. then cancer to just And briefly spend-wise from on That that anything, And thoughts was Any your OpEx-wise, implemented? from sense. regulate end? FDA's your LDTs. changes,

At no changes. this point,

systems say -- One our proven the tests are that prepared because at about is I for very length quality our the very we've of Veracyte as lab we're well talked process developed things the behind testing publications well robust, very extensive. are our about and very,

think, that of in into process gets many we'll kind that to well And so, as of fit the we don't as we're There that Clearly, to model need I but come out they have multistage others incur. to kind that the got any -- level I would investment, ultimately tests that it, we've as would think think great not the launched. lab of be kind and some of I have backdrop kind create of with. got about who've invest

got We've optionality. so, quite we're comfortable And the with we experience development. We've the where got of are there. IBD

gets so, as shape in the to and not the that to overly on can pathway. that, launched. ultimately And that I'm that imagine, trying actually concerned We're about as help respond involved way as others, comment you

further Stapley Marc for no I I it see comments. questions, as to turn And final will

Thank it. Great. I appreciate you, Carmen.

three fueling serve, ended So, our profitability as growth believe AI core well across continued platform cash can discipline allow continue the a as tenants foundation and up in diagnostics platform see, indications strong while pillars best with Veracyte XXXX capabilities and MRD set growth a and success positive and such utilizing focus established markets strong in to and of I care world. hinge to world-class results. on team and adding will driving would thank technology, I a work progress in execution, care is transforming we will of to XXXX, the new commitment, achieving growth geographies, we on generation. hard the These our for and continue their our for driving for our vision all cancer expanding passion. embracing build meaningfully you beyond. ourselves to we our continued our entire a the to our Veracyte It very continuum, revenue and like year

So, thank you.

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

disconnect. now may You