Veracyte Announces Preliminary Full-Year 2023 Results, Acquisition of C2i Genomics to Add Minimal Residual Disease Capabilities to Its Novel Diagnostics Platform

Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2023. The company also announced it has reached a definitive agreement to acquire C2i Genomics, Inc. a minimal residual disease (MRD) detection company, adding whole-genome MRD capabilities to its novel diagnostics platform and positioning Veracyte to expand its offerings along the cancer care continuum. Under the terms of the agreement, Veracyte will pay $70 million in Veracyte shares at closing, and up to an additional $25 million based on the achievement of future performance milestones over the next two years, payable in Veracyte shares or cash at Veracyte’s election.

Preliminary Unaudited Financial Results and 2024 Financial Outlook

For the fourth quarter ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:

• Revenue of between $95 million and $96 million, an increase of between 18% and 20%
• Total test volume of approximately 34,000, an increase of 21%

For the full year ended December 31, 2023, as compared to the same period of 2022, Veracyte expects to report:

• Revenue of between $358 million and $359 million, an increase of 21%
• Total test volume of approximately 127,000, an increase of 24%

Veracyte expects to report cash, cash equivalents and short-term investments of more than $215 million as of December 31, 2023.

“We had an outstanding fourth quarter and finished 2023 with continued growth driven by our Afirma and Decipher businesses,” said Marc Stapley, Veracyte’s chief executive officer. “I could not be prouder of the Veracyte team and their commitment to our physician customers and their patients, and look forward to continued strong execution in 2024 and beyond.”

Veracyte is initiating 2024 testing and product revenue guidance of 13% to 15% growth, partially offset by declining biopharma and other revenue, resulting in total company revenue growth of 10% to 12%, or $394 million to $402 million. Further, 2024 cash, cash equivalents and short-term investments ending balance is expected to grow by 10% to 12%, in line with total company revenue growth, excluding approximately $8 million of one-time acquisition related items but including the expenses required to develop MRD assays.