NEW YORK – Diagnostics firm Veracyte said after the close of the market on Tuesday that its second quarter 2024 revenues grew 27 percent year over year, prompting the company to raise its full-year financial guidance.
For the three months ended June 30, the company reported total revenue of $114.4 million compared to $90.3 million in the same period of 2023, beating analysts' average estimate of $100.3 million.
The company's clinical testing revenue was up 31 percent year over year to $107.0 million from $81.7 million, driven by the strong performance of its Decipher Prostate and Afirma thyroid nodule risk stratification tests.
Veracyte's test volume also grew 23 percent year over year to 39,023 tests performed in the quarter.
According to the company, both Decipher Prostate and Afirma set new volume records in the quarter. The firm performed 19,900 Decipher Prostate tests, attributing the increase to recently updated prostate cancer guidelines issued by the National Comprehensive Cancer Network in which the assay received the highest-level rating among gene expression tests. Volume for the Afirma test reached approximately 15,700.
"Our exceptional second quarter results are a testament to the strength and robustness of Decipher and Afirma," Veracyte CEO Marc Stapley said in a statement. "With both tests clearly gaining share in their respective markets and plenty of headroom for durable future expansion, our confidence in their long-term prospects continues to grow."
Revenues were down for Veracyte's other business areas. Its product revenue dropped 3 percent to $3.9 million from $4.0 million in the second quarter of 2023. Biopharmaceutical and other revenues totaled $3.6 million, a decrease of 22 percent from $4.6 million in the year-ago quarter.
Veracyte reported net income of $5.7 million, or $.07 per share, in Q2 2024, compared to a loss of $8.4 million, or $.12 per share in the same quarter of 2023. Adjusted EPS was $.30 in Q2. Analysts, on average, had expected a loss of $.02 per share.
The company's R&D costs in the quarter were $16.5 million, up 32 percent year over year from $12.5 million. Its SG&A spending bumped up 10 percent to $55.9 million from $50.7 million.
Veracyte ended the quarter with $235.9 million in cash and cash equivalents.
The company raised its full-year 2024 revenue guidance to $432 million to $438 million, representing year-over-year growth of 20 percent to 21 percent and testing revenue growth of approximately 25 percent. Its previous guidance range was for $402 million to $410 million in total revenue.