Genetic testing company Veracyte reported a net loss per share of USD 0.05 per share in Q4 2022, beating analysts’ estimates by 67 % . Its Q4 net loss amounted to USD 3.8 million, improving significantly by 63% YoY compared to a net loss of USD 10.5 million reported in Q4 2021. This led net losses for the year to also decline by 52% YoY to USD 36.6 million. 

Revenue for the quarter grew 19% YoY to USD 80.3 million, also beating analyst consensus by 7.2%. Growth was supported by a 32% YoY i ncrease in testing revenue mainly due to the strong performance of the firm's Decipher and Afirma tests. Additionally, the company reported a 17% YoY increase in product revenue and a 39% YoY decrease in its biopharma revenue mainly due to a milestone payment received in Q4 of 2021. Revenue for the full year increased by 35% YoY to USD 296.5 million. In addition, the company grew total test volume to 28,001 in Q4 2022 and 102,524 for the year, improving significantly by 26% and 30% YoY, respectively. 

The total gross margin for the quarter was at 67% (compared to 66% in Q4 2021)while operating expenses increased slightly by 7.5% YoY to USD 85.7 million despite higher R&D expenses (up 9.7% YoY) as administrative expenses fell by 3.2% YoY.

Additionally, Veracyte announced multiple achievements in Q4 2022, including the launch of an updated, decipher genomics resource for intelligent discovery (GRID) patient report and the submission of its envisia genomic classifier test for CE marking in the EU.

Cash, cash equivalents, and short-term investments at the end of Q4 2022 stood at USD 178.9 million compared to USD 177.2 million at the end of Q4 2021. In terms of guidance for 2023, Veracyte increased revenue expectations to a range of USD 325 million–335 million, implying a growth rate of 9.4%–12.8%, as the company anticipates mid-teens YoY growth of testing and product revenue to be offset by a decline in Biopharmaceutical and other revenue for 2023.