Veracyte (VCYT) 6 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Veracyte Second Quarter 2024 Financial Results Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Shayla Gorman, Senior Director, Investor Relations. Please go ahead.

Good afternoon, everyone, and thank you for joining us today for a discussion of our second quarter 2024 financial results. Marc Chief Chief Financial are Rebecca Officer; today our Chambers, Officer. me Stapley, Executive Veracyte's and With Veracyte issued a our second press release earlier XXXX results. this financial quarter afternoon detailing available business This with veracyte.com. of and in at the financial our release, website Investor the presentation along section Relations is

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

will can subject are uncertainties, risks to give no to they company statements Forward-looking and assurance and prove correct. be the

not we Exchange that further to better results that Additionally, files Veracyte including the our obligation updates uncertainties on under Securities actual documents recent most Veracyte's To are any performance differ, and with the to we our Forms understand quarter. Commission, or and XX-Q cause provide the refer risks business and XX-K. you trends could the during to

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

exclude This to our to that understanding help to updated our gain better have compensation to to stock-based updated peers exclude non-GAAP non-GAAP investors a measures better prior and all compensation. Further, periods quarter, comparisons performance. of our provide are we metrics comparison the stock-based

call now the presentation today's have the We turn for adjustment to Investors website. I included a Veracyte's schedule available CEO. on earnings will of non-GAAP periods in Marc of prior the section Stapley, our over

I Veracyte's quarter I with the pleased share and thanks, you is couldn't us everyone, best what be of Shayla, for more date. today. Thanks, joining to drivers to believe

both our expectations an the coming highest exceeded Afirma acceleration that and saw Decipher we of into quarter. demand for Importantly, even

of period. line on EBITDA revenue revenue ahead result, of a growth year $XXX.X expectations. With to our year most and strong this XX% compared XX% million, and have overperformance previously we income stated date. We our well and XX%. top that second profitable level generated GAAP XX% management, quarter adjusted $X.X was could to of fiscal period, million focus grew see, over specialty industry-leading the well on diagnostics an you prior our our prior disciplined to quarter ours growing the well-run as Testing net delivered EBITDA margins, our As can contributed believe adjusted margin we are way to that a I company like achieve in profitability. I reaching

performance, continued growth highly of more X journey. I Before we cancer geographically; five, quarter's growth remind solving two, are new products of the on want you to I Afirma; in focused Decipher; three, in get four, continued expand serving challenges; one, and imperatives: into that IVD launch this to patient strategic multiple

number Prosigna portfolio. world under test expect the to I IVDR in this test Recall three, approval future the share drive a that is and IVD am of that framework. existing for commercialization our enable Regarding launch nCounter oncology submitted we pleased the step just to around foundational our the IVD that we of

bladder platform multiple we our to that with pivotal development forge progress number for of the swab. first new a across cancer respect for trial making indications. platform, with four, on with NIGHTINGALE, journey our Turning to patient continue whole test solving way naval good the using across #X, we're is MRD And challenges our our genome muscle-invasive to cancer extensible

Afirma Decipher S will of revenue believe of layer top on a longer-term We growth. on growth from durable curves years and new what is expect strategic these imperatives X we number now

teams, growth. approach increasingly strong builds generation with reimbursement our the this seen we've of of inclusion evidence our is managed positive and and diagnostics. Evidence clinical and broad drive trend in and broad deep for when data, for evidence those the Now commercial excellence, which can managed combined indicated and ultimately strong and clinical performance turning be and talked have current to ensuring physicians we AI relies that are engine. our guideline differentiated products impressive platform, capabilities unique This patients. I sets billing adoption and on-market driven powerful ensures and to proven Veracyte ASP to access able our diagnostic care believe by behind delivered, patients, by and before about the in power appropriately quarter. Diagnostics and and a who care our of This testing our for tests selected have I for that bioinformatic are utility growth those genomic paid validity are flywheel that timely on

grown a focused and CAGR the contracts has on challenges. resolving gaining ASP years, at last we new payment prior X over X% Our as

Veracyte with to together and of our teams the flywheel guideline Afirma of outstanding our key in generation platform the by is is commercial Another talented this Decipher evidence led result medical flywheel that a the we're Diagnostics adoption of direct seeing action, teams. growth The and fuels inclusion. that execution clinical volume and

acquired we we quarter delivered we new quarter, tests Specifically approximately reaching Sequentially, on in for grew XX,XXX urology in more change patients saw second when than a tests, a as X,XXX by Decipher Decipher step demand whole row, prostate did a function a XXXX. the in in in during single Decipher now record, we the the for month testing, a in year second quarter.

well cancer test new as risk the low as market test, and and Decipher of which real-world patients data Decipher a the treatment surveillance their the to that mountain stratification published the for the behind This Decipher alone, metastatic updated eager result us growth, those test NCCN after to population-based are the research demonstrating a were to prostate durable the patients a equated to as prostate NCCN science. pivotal accounts. existing the adoption level with to and are among journeys. penetration way classification newly to catalyst including implications intermediate and gives were included plenty those, second unpenetrated. The cancer volume Institute's XX% in are surgery. Even deeper patients X adoption, year-over-year prostate details the of point evidence on has was another its risk insights risk, February who disease, support growth is of the in This highest received NCCN and for patients with to an guidelines of the significant all rating into we confidence molecular Decipher evidence based from very evidence the linked Decipher utility. And of moments quarter of in are the National can who additional prognostic underscores section, which there behind score. guidelines cancer for studies, to published utility broad able with still more driven was high-risk today, cohort up information of greater to principles with prostate Importantly, database diagnosed physician analysis majority the to both test active we prostate test's and in be that level favorable on headroom Decipher clinical by future continuing SEER committed advance Cancer to data whom even the make predictive offer difference In both

or for of expect the cancer growth finalization determination estimated prostate Given LCD will that now local the for newly XX,XXX the coverage of LCD patients last week, additional accounting an issued Palmetto a This XXX,XXX provide we prostate for vector WPS diagnosed cancer annually. soon. metastatic an

our for is Afirma, for long-term drove growth. growth the volume testament for to results both customers outlook with new alongside commercial level also supports our to from quarterly a over increases the and The for we year-over-year has new decade of Afirma. and ease Moving test of reported the customer test Decipher record performance with approximately of performance for a or volume market test growth physicians, evidence current and a XX,XXX diagnostic fueled our XX% positive and base. differentiated on our platform This by profile, been use approach the coming Afirma

RUO cancer. science research-use-only continue additional the our to market. in GRID This the another tool to Our we leadership offering advance physicians around or further thyroid provides data endocrinology with nodules and Afirma is way

Annual of insights tumors, in importance ultimately of treatment this the may personalize ENDO the Society, Afirma disease. at leveraging highlighting thyroid to XXXX, the of unlock which information molecular studies quarter This the Endocrine further from helping Meeting GRID presented, from were new X tool

half level of of high Afirma demonstrating chose in to quarter, interest physicians approximately ordering receive This to a information, GRID the research. Afirma contributing RUO

a V those thyroid milestone to patients local We There for market endocrinology. This step Medicare approximately also is expanded patients up we finalized determination suspicious Bethesda achieved X/X annually, for our that reimbursement significant in leadership with Advantage V Bethesda and for cancer. in classified as for adding an nodules June, MolDX Afirma, in Medicare furthering Medicare XX,XXX with will as which and nodules of important an Afirma, Advantage. are for are Medicare expanding assume both well as be our covered under as coverage

in continued near deliver robust that Rebecca evidence and driven gains, use cash cases confidence the Afirma mid-term on With for quarter's our increased improvements XX% continued the catalyst revenue XXXX. only further that, Decipher for there with into paired of turn for with the even term, to term, Our growth I generation, in delivered both Afirma financial outstanding while continue future and to prostate existing and the will and more year foreseeable this we market, XX%, so Decipher heightened in growth growth towards penetration especially thyroid share tests in molecular investing expanded and market progress review year. Further, performance. to our is cancer the expectations the now into in durable plan compelling ASP this this for innovation. With We future, results Decipher. from and penetration indications accounts, available by profitability far, case making are quarter underpinning with trying coming volume respectively, and XX% to long are the we also and

grew Marc. fantastic in $XXX this of testing was approximately while same in Testing of driven with XX% periods, efficiencies and approximately tests, is by quarter, an by Thanks, over the revenue year over for ASP growth. Total total result have revenue, $X volume the XX% been important was would in $XXX.X prior was period QX approximately the increase $X,XXX, in a prior Decipher Adjusting XX% prior the of testing We during million to XX,XXX tests It an is for a increase sustainable quarter year-over-year, collections. increase recognize processes. XX,XXX ASP and tests. which period. volume our $X,XXX. period Afirma approximately Testing delivered along the impacts driven are collections ASP XXXX. million, approximately with volume was million these adjustments to included in billing quarter that

X,XXX approximately $X.X was volume and product quarter tests million. revenue was Second product

Biopharmaceutical beyond. chain the to perhaps supply year-over-year. $X.X expect second the of XX% and issues in revenue supply to was suppress other year down test continue this of We million, nCounter Prosigna half and

margin Moving to expenses, and will our I operating gross highlight non-GAAP results.

margin benefit Our variances. below points costs favorable non-GAAP acquisition-related we due prior is of investments exclude other was margin our In to down historical restructuring in cost to of stock-based up other in the negative amortization going year-over-year gross margin year, period up be XX%, product improvements compared to averages. Biopharmaceutical year manufacturing to cash forward. to year X%, intangible where basis and gross which period. XXX voluntary approximately period service executed was XX%, With due certain reduction absorption. basis the structure Marseille, other acquired XXX and XX% prior and the expected prior cost support plan Testing July, half gross second the margin adjustments. Non-GAAP applicable, fixed we due was to our collections. Product points expect metrics assets, was the in compensation, expenses, compared lower to ASP margin

year higher Research commissions. G&A $XX.X higher $XXX,XXX costs $X.X from personnel expenses second development related XX% year CXi with due to at to by revenue, to our full to anticipated offset expect costs $XX partially our increased $X.X sales expense variable to below the million. lower updated margin and expenses personnel increased to be other quarter half force driven level. Non-GAAP full expenses compensation second by million, Envisia were other year-over-year slightly reduction, were declined the up our million and given by million to and $XX.X outlook by However, biopharma the million acquisition NIGHTINGALE costs. marketing $XX.X given given million, operating clinical we studies. Sales additions gross and personnel or up and

sustained way of XX% a proud Moving results. recorded income $X.X adjusted restructuring delivered or to of are We goal our charge Marseille GAAP we of shared, million profitability of XX% our adjusted location. our as inclusive million We metrics, EBITDA to revenue, EBITDA on relation net towards our of QX of million, $XX Marc well $X in margins.

from quarter generated cash $XX.X cash $XXX.X million and and of the million also operations of equivalents. We cash ended with

our to now XXXX Turning outlook.

are million increase total compared million. from our guidance a of of to This guidance to business in growth $XXX guidance our to revenue million of excited reflects to outlook $XXX prior for million our with substantial improvement to We revenue the raise a prior approximately our XX%. to testing XX% $XXX $XXX XX%, significant

guidance XXXX between cash, $XXX and are also with cash in $XXX expect We investments. million raising to our cash million to short-term end and equivalents

the to cash forecasting Moving decline impact revenue, collections second quarter, quarter. given period total third seasonality and the of a in in we typical are sequential prior the year

We be QX. expect from to revenue a QX step-up sequential

cash on contributions patients go start am a to fiscal the above all XXXX open lines. half of adjusted commitment the vision further second employees be the revenue margins globally. We'll grateful of the with the to as now first Q&A our profitability with I focus sustain the EBITDA discipline. I strong year, of our and growth Additionally, of towards driving slightly anticipate for our in of we to Operator, the please half helping year generation. thrilled and portion our am the of we call. into our continued cancer

Instructions] Stephens, first line is the from of with Carrico question Our [Operator Mason Inc.

Marc or need you're finalized time you take I or this guess, to LCD through, once remind how secure us, in coverage about what there? Rebecca, you to steps and is thinking order go could the line metastatic still

happy Yes, to.

force with the and we've Palmetto, through which tech as we'll go as to train a to make understand obviously, cover sure process. they the ourselves physicians then through assessment number which of get the rollout, metastatic the and how we do deployed. a Noridian well, they structured And work go it's process, billing So make to once we've to take tests got be sure we have months. And then will got from finalization to will

so So are roughly in here, apply with we patient or and the as or A of Medicare could metastatic obviously and think than starting this Medicare per XXXX, that up as activity would there half year ramping roughly so a more first on. goes that really be Advantage. XXXX year the XX,XXX of X/X reminder incidences

we'd The other well, through little element work of to course, this is, as commercial a bit of that and have takes payers longer.

our Mason, And clear there's currently just XXXX embedded metastatic. guide to this, for nothing abundantly in be on

Perfect.

talk making balance during What then sheet organization? generation And great anywhere shape. helpful. thinking how That's adding you're cash Okay. on of plan How in? the about Do the capital key is in commercial the heads investments on going quarter, about you Could does M&A you're the throughout the here? fit allocation you forward? are some internal

Yes.

account need. We've need here launch they couple each that got every And each terms territories. And positive commercial We're that terms sales rep we've are make. here. this not a investments is not adding investing investments of we that to was -- of for side, in in or the we're way about half adding of to and tremendous generating of say them. leverage on million we've you making, out But in we strong. X of spend. than growth the been then team. we're investments making best new we're think We're the for been We've together, few we that there, teams. give long-term organically, commercial making probably feel back we R&D drivers the R&D quarter the very holding If getting the all take need we're to been while our in roughly dollars little and cash programs like a equal, a flow wherever Obviously, more

much generation and really strategies changes I So our around our think don't focus. positive cash organically,

those type and again, got would on think clear generation. a said take working to that don't We've projects. terms growth revenue multiyear in M&A has and of we'd we're of positive enough to targets it really that In We've and path of of reimbursement type We changes activity, much. don't R&D want I that be on ourselves. that always the something interested be

that, so, strength inbounds. kick out how we tires. and we've and take of, lot always at say, a the performing way imagine, whatever there's look comes I'd you of can as our balance well given We said And the a not there. Having our sheet, we get targets lot suitable a always been of

our no we'll middle XXXX cash approach to and and in right here, deploy start change budgeting So our generate to continue process. it. positive going about forward We're the or positive flow in

for allocation even year. haven't we capital the decided So next

Our question Stanley. comes the Savant with next of from line Tejas Morgan

IP litigation we light of Myriad the Sciences, any, the see for what in any if This Yuko strategy? between particularly sharing Tejas. licensing of along by call in Personalis what into lines implications, MRD participate point coming for increasingly TwinStrand your pool patent saw the portfolio we of you With IP Exact are and focus, is on Could recently?

Yes. Great question.

part our that, asset know, acquired approach really, you genome-based very an business specific because as fits mentioned did of we of primarily, we we a that it early with So looking in of data whole took year. And we CXi Veracyte when is more as our a this this better. approach platform Diagnostic is for

whole us Afirma kind the every leverage you with for of see Decipher get approach sample, you've seen you'll that so, And you a genome. run -- with And GRID. time now

purpose. So that was the primary

targeted lot that lot we freedom course, around. operate the some at looked of I than activity room this Secondarily, approach the approaches in of gives IP seeing think the you're that a to us a landscape more and of

us for that, don't approach mean, believe is taken. we've And I of an know, that that a concern the don't we so, we don't [ but because -- that, We specifically feel of you that never ]. area believe is

on, this how -- in for get think there's this we'll see don't where need involved pools and any whole us to patent I evolves so forward, space over time. and Going necessarily

the Got commercial with for it. quickly come have X/X the coming about already? could think Medicare, with board Afirma, respect Bethesda payers following V that reimbursement. for And you to how do you payers started discussions population Have with of from on

been mean, has already over paying time, element Yes. I period commercial V. some a there of of Bethesda payers for

up and has LCD, to able that now drive then there So go update are commercial are now that. those Medicare to with try and policy. payers caught an obviously that the And with leverage some to in we're

long and time. It priorities, of go and So a big a are other there we'll takes tackling too. to lot continue that There's a and blocking lot activity. do

So about remember is Bethesda V XX,XXX patients.

some getting already. we're So of that

Yes. in add, And I going for And cite and time. Afirma, just being component are to was the point reimbursed commercial Bethesda that for at V we being run embedded the in included ASP that in are volume is for or better the that this Afirma in run for also that, number Afirma. samples then

So just, understanding of where at. so can have you we're an

of line question Brackmann next from the Our Andrew William with comes Blair.

Boeye Decipher This is today. on Maggie the start for to Maybe on front. just Andrew

think as of and account versus share XXXX, growth Just penetration you gains? into versus the the of then back much come about how that and year half incidents elevated from in the should levers of

Yes. Great question. up. I actually the with prostate are although incidences don't think going it's really to cancer incidents, do of

incidence target of for data look a that $XXX,XXX you course, metastatic prostate annual it's cancer now. If year to and growth, the of at there, high is, some single-digit us of incidence enables us entire the of kind

in what the market. seeing of piece is to we going both puzzle. What to continue penetration final and we're we're the us gives it So believe that see

of beginning we the said the is market penetrated. at XX% year, remember this about you If

a space So lot there. after white of to go there's

NCCN. in Level what specific of prepared both as seeing early -- the do they're certainly, it's it new even But in share market this of remarks, think the drivers. And table maybe when like it last terms and that in of the first further growth we're the step We're numbers are and do think did this around combination too in the that to year I evident and a we're NCCN significant posting. and penetration normal, time I gains, quarter guidelines the function this the curve. we a X a I but got QX significant So mentioned in pretty driver that further stepped up seeing tell increase a both

comfortable significant ASP about, in the said why So obviously, factor plus, clearly, feel this said that growth in a And talked gains we Decipher. the very we is of with the we've growth. why Rebecca durability this is

to of manifested X in were Maggie, add ASP note, Yes. think Decipher had major first Absolutely. course present the the which important really to quarter, it's that but I was over gains, second themselves cited. I going in really catalysts Marc the we the both wins for the cited. I of which publications think quarter, drove we great major conversations teams, really And the as internal as the Level that were and for NCCN support with payer those and well X, the which

pipeline. Great. we and the assay And Could should MRD one catalysts level be next X in us then comes data you market? be about set maybe then the what terms for expecting on just the MRD and quarters should and we to just it on of thinking or how so before generation just

of us in, the platform, genome is you for indications. indications new is us the we're that's this address reminding remember, And while the timing well MRD, platform our approach there. as indications. multiple that thinking imagine to whole as can going Thanks about a currently And a Yes.

and it's of pilot but muscle -- concept, think MRD first proof our bladder with cancer. invasive starting launch a more a than it are We in as of

And we launch will that test XXXX. in so,

will very to You ingest we the to our and similar today. metastatic. But as regarding got for as so will setting some We we transcriptome train -- to again, force, do automation lab. into reimbursement, lab CLIA don't some we've that do our about to sales do up genome of ] [ tech or there do activity, that the today, us the samples we suggest have talked whole well the do see we get assessment, what run Decipher

that around going necessary add do to workflow activities have we're to and the that. So

launched. that So to that's why it longer takes bit get a little

when and And share we're clearly tech you assessment, we think with that so, reimbursement. is that seeing what to first path done probably I we've will

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

Joseph for is Hey, Marc, This Rebecca. hey, Mike. on

So X studies I at prepared GRID. question, remarks. around guess, about talked presented first Afirma the your in you Marc, just ENDO

look abstracts just if kind wondering could a of like is any an some or or new powering have implemented found an cancer discoveries GRID it Just updated at molecular taking future, of in -- thyroid the insights seems how research. kind in in I'm those be Afirma add-on of those future? could GRID test of been the be clinical wondering kind could in found RUO progress that just

Yes, really researchers it's determine are we new a can to great there, we the question, there and I let is everybody correlations analysis can draw But do. on, clearly reminding run included trying comparisons groups our there Decipher, half been it's at and been in seen that. actually doing multiple of that have XXXX. And ] some people that new remember look the there. of on biomarkers out both proptosis have transcriptome them have here around publications Decipher, that times, case. time you number and like that ENDO is and X cited specific analysis is with where transcriptome. GRID [ or of doing been that biomarkers to by used I'm a roughly are there's Decipher one Afirma biomarkers of what name in fueled and things to where me We've a that that whole the is and Decipher's research, And what in whole that It's we've seen the by start approach fact just fueling ordered came

it's helping going endocrinology see you're research It's similar to think that. I to and and with around renew so, investment to wonderful cancer, And really thyroid and things Afirma. see

so, whole transcriptome that from tests again, And a every But we data future that means commercial whether determined. standpoint, to in is for the run fact our end be those remember, up have the we always patient. being

it and in be pans new but to future potentially, tests nice how wait see the I'll out. So that will some see

Okay.

That's kind helpful. an to a Do data too quarter down quick is of a utility? just NIGHTINGALE Great. that far have you Okay. maybe or Or for clinical an release for Yes. for in one. terms very out approximation? approximation of put then And

the way. it to at forward is to down. MolDx as data It's our when really number take points do study. to complete refill out it there. what the get take have published, one. we drivers, And along the long-term the step several actually need and of we far clinical go See Too quarter Yes. a utility that know. have, put the you from we take growth it to Analyze one That's

And it's to predict so, but still get got going quarter, before at still to said not I'm we that And that enrolling. to multi-years this I progressing. point. NIGHTINGALE enrolling as point. sites We're XXX We for last close finishes, we're when

[Operator Instructions] of Our Kota from next question comes with Sachs. Prashant Goldman the line

of Congrats back questions strong Bethesda the classification. GRID results. going really V quarter, already the how on asked, just been lot of to are but addition about Afirma, A have you thinking and ASP trajectory given

is to potentially opposed for patients, RUO, yes. becomes GRID So example, as once available for

and a tool. in it's that lead in setting the But -- that research you future. as think we The have Rebecca, some and Maybe future. don't I clinical research-use-only we clinical research. don't up a mentioned only use see see, that It I could becomes clinical clinical end now. it right last as test, then GRID that ASP. tool the to, Rebecca? tackle the hit I to discoveries power I'll Afirma earlier, for the But as foreseeable can GRID, time a

Yes.

obviously, large So V as is And ASP. great parallel, Bethesda side on Bethesda on -- the Decipher in in is LCD trend also V script. on the in first the us ASP the quarter news Marc front, payer for updated the highlighted for us, obviously, the positive the another

total we down about growth more think it, X years growth that things we I were at We it the that drive like ASP to So that high-level a last testing need ASP. And to cited continuously I general, to X% the these beyond delivering. ASP over in when CAGR have think do when to that I the about would volume on it positive comes level to we're trends end. think and and the above the

the come and over our magnitude assume rough be it there, impactful, math you XX,XXX necessarily ASP for patients you Afirma, but on into, penetration will, the do is and important can And that driver, so, you continued the into to level of a won't period. back but is if Bethesda level actual if back V being Medicare whatever hugely you for is dollar another multiyear gains it the X/X share

Got NIGHTINGALE? aware be it. generation notable then from should tests, your That's of, really there evidence any studies helpful. as far aside as for upcoming are And we

The involved Always. broad studies, it and as in but we're GRID level necessarily where we're in it, many that again, not many activity to be very of others are, respects. aware around driving as Decipher by studies very, well fueled we're continues of

more in cadence of you breast, that up now think should should so, always Afirma. lot for of see there. between nice a studies, with and And pick GRID a I other and then there's expect And going activities on. to lung There's steady indications

point I rollout. that the notable, right yes, So to specifically nothing would now keep eye as an steady on just

from of DeBourcy Nephron with Our next comes Research. Thomas question the line

how spend are given from the the haven't for a wondering, of just trajectory thinking in ceiling and/or sort of level long-term level. you that can your investment level of that kind about EBITDA towards margin here? I combination but -- quarter adjusted kind CXi you be the margin, or obviously, know on of I a was guidance I of obviously guess, that the of CXi year in

terms how of those? commentary you balance any have you in So additional

that Glad Yes. Great you question. brought up.

platform. approach we've earlier. run utilizing a one we we already think to capability project important because talked about on take rate a you note our didn't like, how very stand-alone that of and certainly thing MRD is is you first different company as if the company adopting kicked to And off CXi, we're product, as that we're the burn If about

And so, team legacy members we is what members have now we team Veracyte project. that on closely happened And CXi have on the Veracyte projects. CXi team working with other very working

expenses blended. those become have very So

burn about It's or of CXi run And don't so, anymore. expense just even Veracyte. the we or about talk think part now rate

said launching. I is the or are is that X projects the the you bulk And the think swab there investment we're our big as team then study It's which that NIGHTINGALE earlier, MRD, projects. in it's nasal If in with of brought that to about MRD. CXi our products really It's particular. X table what -- IVD

If And of dollars make than couple take you all roughly more either of half of our those, together, or each take size, way. spend. X give they're a up million R&D in similar total

I we've been yes, that tracking anything a change Rebecca... I'll So let else. And don't spend see given in for acquisition trajectory or the that R&D of then significant

Yes.

plays look So into very forward I perspective Thomas. adjusted as that think nicely the well, EBITDA

going higher in that second such highlighted we're that we Marc adjusted slightly second the commented think and half prepared our don't the that That being EBITDA budgeting changes see XXXX EBITDA would the would trajectory. be remarks also the in meaningful our than that said, into half in I first we half adjusted -- season. in

portfolio approach I incredibly therefore, of proud this the on to goal. XX% so, changing. by on abided And years, we And and headed but don't that take EBITDA necessarily that anything puts many can direction. We're philosophically, in any go-forward a takes, comment will many, to or both managing year, and get the the obviously, company. we obviously I don't right foresee think can't we've when elsewhere, adjusted duration basis. to here you the have But we're and philosophy now change given for In

that. it's a profitability a of it we've basis we I kind it's quarter, the want been higher just The and in QX. punctuate milestone that think significant is for Thanks. adjusted to XX% points I about think, great to it's about and achieved EBITDA what level heading and than of XXX I us, see into for growth, do -- towards

certainly really, from. want and So sustain to that it's impressed we grow see and that something to really

like further you. time. at turn showing would to Marc to this Thank I remarks. now no closing questions I'm back for it

Thank you, Lauren. appreciate I it.

many that, over profile who in So call. both employees have long-term that is earnings over leading proving that the million and date excellent you. served thank we're the in XX% growth is their Decipher Veracyte to when warranted to industry the contributed value XX% to on have at we revenue [ Molecular quarter again very in I After XX% adjusted that believe look believe, charge. I XXX space. growth is our the I I not with the clearly the getting experiencing EBITDA Veracyte that attention, of margin diagnostics in lives Veracyte, ] make tests cash supported at $XX by has evidence, year-over-year, years our want year-over-year, diagnostics this and drivers, X a performance closing, approximately the Thank and growth I incremental revenue that of to unique all apart. growth our a our that difference patients updating of believe XXX,XXX tests. Afirma in advanced sets diagnostic our forward of generation us QX to almost you durable

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

may disconnect. now You