VCYT - Earnings call transcript Q2 2019

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Operator

Good afternoon, ladies and gentlemen, and welcome to Veracyte's Second Quarter 2019 Financial Results Conference Call.

As a reminder, today's conference call is being recorded.

I’d now like to turn the conference over to Angie McCabe, Veracyte's Vice President, Investor Relations and Corporate Communications.

You may begin.

Angie McCabe

Thank you, Dawn. thanks quarter us XXXX and of for everyone, second our financial afternoon, for today joining discussion Good results. Officer Kennedy, With Veracyte's me Chief Keith Chairman Anderson, Financial Operating our and Chief today Executive Officer; are and Chief Bonnie Officer. and

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

of strategy, growth, include Forward-looking regarding historical and our financial and goals regarding prospects attributes not and those other statements pipeline, and plans, drivers expectations reimbursement, are statements product guidance, future that facts.

statements, reflected performance Management's give further unless discussed assumptions, actual expectations, provide these in or the from not any are they that and uncertainties no materially and cause be differ our opinions subject forward-looking and to any we implied to so the and by a that future can to may in on assurance risks results, during achievements correct statements or updates performance company public and/or prove will results forum. forward-looking performance in will do quarter guidance or such

Please cause factors in important to company's refer press with XX, July those forward-looking discussion filings a SEC differ actual may contained included events the from for or factors the materially the and that to of company's our statements. release the risk XXXX results in

our XXXX under which results, announced quarter are our second section. call, in Releases Press veracyte.com we the website on Prior at to Investor this available Relations

Relations Presentations which on Investor section website remarks. presentation available The financial the our our We his website. also & is Events published Keith will of presentation, during reference a under also in

and Veracyte’s to Bonnie now will call turn I Chairman CEO. Anderson, the over

Bonnie Anderson

we today an cash second our increase of We of everyone across our record million, call. second Angie, of year. an continued of the results activities $XX.X with million improved $X.X for X,XXX XXXX operating of XX% and which in business. strong last tandem another test terrific genomic tests, In prior joining Thank net earnings thanks quarter the quarter and used XX% and improvement over we exceptional year. momentum for increase XX% of in volume an our to delivered over us We had generated quarter growth you, revenue this

these expectations visibility exceeded to on which the Based raising full year, million our year of our XXXX increased we results, the a into $XXX and $XXX range our million. guidance to revenue of rest are

for a outlook our in remain to on of improving and breakeven cash for XXXX. the full before to cash activities operating $X operating also are $X track reach to We range end used year million net million of the flow

will provide metrics on now we're measure XXXX. our key using success updates the in I to

with approximately XX% The into Genomic for X,XXX to XXX respectively. and represented volume and and test in second specifically went first ordering is quarter Medicare We Envisia test pulmonology the volume revenue Classifier growth. as pulmonary increased IPF, well Envisia ramp number institutions with coverage of the began or we the to as fibrosis our Starting expansion. idiopathic effect tests pulmonary for in Envisia report Envisia than quarter of sequentially more the from test quarter. XXXX the first of by tests test on the volume XX track We of total year. XXX product sites, And remain to to volume XXX% commercial

sequencing our over launch the and our quarter developed which in second revenue XXX% quarter, commercial increase RNA our which the we year's was the for prior a In significant This or achievement. with is other a nearly Percepta platform. in Genomic million achieved Sequencing of Classifier, lung Percepta quarter, Classifier in exciting GSC, cancer, $X pairs whole-transcriptome over using news the

generation current than bronchoscopies utility aligns providing, recommendations. classifying may with avoid tests this with slightly they unnecessary to invasive higher up-classifies clinical down Now patients sensitivity next patients addition risk steps with that a intervention to low help next guideline procedures guide original so to to expanded inconclusive in risk high test, the

Adoption XXX% reported is we the In after of Test the our Percepta quarter already Percepta Classifier increased from of orders have second going weeks XXX% results. over to year's only prior six the really GSC. its our XX% volume well. in launch, Percepta converted to quarter

biopharma our result launch the GSC revenue $X.X key collaboration of Additionally, the the with Percepta achieving related quarter primarily J&J. services the through to million was in of of milestones

wealth second where helped increase the Afirma Our pharma last the drive business X,XXX further XX% data adoption tests over volume Sequencing strong delivered year. was performance Genomic a Classifier. of quarter, also robust of Afirma a clinical GSC for quarter, positive The

and We for provide was in driven patients, diagnosis. also to same surgery interest increase time Afirma aspiration orders at suspicious by experienced the This treatment deemed cases needle sample cancer using significant growth decisions can from Atlas growing data thyroid tailor the alteration their GSC. gene we using fine year-over-year for physicians’ invasive same and in for minimally information by Xpression the

revenue sales the strong of our team strategy growth continued institutional adoption for product. each multiple building relationships common through reinforces of in are products rather dedicated to a accounts, integrated reps sales our us drive Our which stakeholder power leveraging than

doubled number products For than classifiers three example products believe using this of second term first We of from tripled. efficient profitable the highly long he approach achieving to the nearly Percepta number sites of more all lung using quarter Envisia the is a key sites growth. to our and effective year this the two and

study made use of surgeries to nodules. clinical metric during success to showing I’ll the at State Ohio thyroid an case that of quarter. now recent the second includes second among progress GSC meaningful of In the the number University the reduced by turn indeterminate of we where with evidenced This test. Afirma independent third development that compared two-thirds of significantly next patients original the our utility Afirma generation publication

MTC, data a sample aspiration targeted the thyroid or the fine cancer rare Xpression in Afirma used treatment the of of selection from to same medullary aggressive diagnosis. ASCO at showed with patients form but presented needle Additionally, thyroid Atlas for potential cancer guide

cases development. under new MTC gene Afirma the was identifying highly the effective are focus In targeted XA that therapies in the mutation of

two clinical treatments positive MTC targeting presented fact, at for also ASCO. trial RET fusions were In in the data

So a role range in cancer also the and on June physicians in of Cancer the thyroid diagnosis overcome Afirma appears Cancer challenges a is of regarded cover American of testing the Society. the Cytopathology of of to which treatment helping highly journal publication

in results strong data are that lung while generation high to of In Percepta up-classifying for lung guideline down recommendations the unveiled American nodule cancer validation during low GSC next the with we clinical steps. Meeting test showing risk Society ability Thoracic patients consistent classify cancer, to to the patients May next performance risk with for

the adoption data publication And finally clinical Medicine being of The validation with from the diseases lung clinical for history, idiopathic clinical April. is physicians that in utility fueled diagnosis. without provided the early in distinguish by paired The of positive Respiratory helps other demonstrate the pulmonary Lancet and in IPF test and findings or interstitial that when a Envisia IPF making test resolution the Classifier the of higher fibrosis level physicians and high confidence need with surgery, results patient CT an

clinical utility to extensive velocity support further The is three establishing indications continue test scientific to across and clinical we all medical build evidence driving is leadership. our and and rigorous our success that our

where the Our quarter. also made is solid progress we advancement during third metric of success pipeline

we GSC we the clinical done now pipeline concurrent sequencing inform with of Percepta have With to a questions advance on in in as are treatment with the our to cancer continuum addressing position just the Atlas RNA in care decisions additional cancer. diagnosis Afirma platform, Xpression whole-transcriptome our the thyroid launch lung across

address pipeline in earlier the our the against advancing care clinical We are in unmet lung also to needs fight cancer. continuum

lung detected non-invasive Percepta injury nasal genomic collected cancer test the science the samples are progress lining whereby our evaluating we current former of GSC, in by nose. swab in smokers be developing our genomic about that detect to changes utilize cells in and the cancer the field respiratory epithelial will lung excited system. same Specifically, Or powers first can the from proven in test

early test which of significantly the our kill believe in approximately detection development We globally. X.X to was cancer, in lung XXXX, swab people nasal potential to improve estimated is has million the that

by of test, of medical robust clinical We cancer. cohorts, facilitated early lung with our our their in are and detection before data swab our the with collaboration for year. of through for along forward plans the positioning look the repository test nasal end as this combination efforts our consented, to well of the sharing as early care of pathway in clinical clinical the development expertise well-curated file patient Our J&J

Our fourth discipline. financial major success is

Here continued has too to our excel. team

this in continued in last second for Our activities $X.X over year. investments net the was operating a our improvement cash fuel million, diagnostic XXXX spending, activities few flow we that of careful before operating quarter our that strategic an year, used second breakeven to of quarter very accomplishment field end XX% attained. the the Through the on business with genomic the achieve along of remain cash track in

importantly, More achieve long-term profitable growth. is goal to our

team our Finally, Financial to Giulia Chief Officer as Dr. Operating role Officer. have Kennedy, Commercial top executive John in we addition phase current in growth. team Chief the we're with Officer, that our and tier strengthen and Kennedy to to continue is thrilled to Keith our Chief name Chief we as leadership his prepared next Together Scientific and us a of lead Hanna, Officer; our Medical

the during two announced second hires key also We quarter.

Corporate significant professor new Medical medicine recently Bowie as Director joined Feinberg Pulmonology. First, of the President of for was Development joined lung us Medical experience, Veracyte at Medicine. Vice Dr. most a and Foundation School the of at Dr. Bhorade brings transplant our for Sangeeta Also, Director previously Medicine. as Business University's Northwestern program Freddie and She

who thrilled XXXX the of area June our This with Bay to on awarded Workplace of more reflects difference real lives honor each and driver XXX contributions the a a and come key was our making key by Lastly, dedication recognition that year. a the patients Francisco success. employees Xth in -- focus I'm for work in every and consecutive of San day Veracyte a than Top our

to over I the for go will second Keith our results quarter call the over of financial now turn to XXXX.

Keith Kennedy

Thank you, Bonnie.

events earlier financial Relations As available second our the of section XXXX is under website. Angie in mentioned our presentations Investor quarter and presentation

Turning each the the indicators including the of the six second prior our our year’s with for page XXXX performance compared quarter financial of financial to follows. Page as X bottom against as quarter highlights performance presentation, KPIs at metric are select or of key for

$XX.X of XX%. million Revenue increased

Excluding reported increased million volume XX%. $X.X revenue of $XX.X of increased XX%. of Genomic million biopharmaceutical services, tests X,XXX

Gross basis XX% XXX points. of margin increased

points services, margins basis XXX XX% biopharma Excluding to gross XX%. increased from

cash of of Operating million $XXX operating cash Net Net million. loss cost $X.X million a expenses and improved we XX%. in XX, used activities XX%. excluding revenue of And equivalents had at June of improved increased $X.X XX%. cash

Page the Turning of to X presentation.

year period six In June the strong XX, six underlying against performance sequential compared Our year-over-year the comparable financial the KPIs. year-to-date prior performance. shows outline the ended pages and period the KPIs same six XXXX of to next results each for

A few observations.

and slides by positive genomic the see on we illustrated X revenue to X and continue As business. trends the momentum volume across

Our quarter. lung of approximately X% our represented XXX tests or genomic volume this portfolio

in our earlier a revenue XX% of of midpoint Turning the to increasing to stated range guidance, to increase over At million her million. Bonnie Page and last remarks, $XXX we’re year. represents the XXXX range XX as a our $XXX guidance this

We previous used a annual midpoint of $X to improvement this the year. last guidance range cash are tightening activities the operating to range represents in our of million. the $X over XX% At net million for

end cash flow us flow Generating operating key goal this positive remains year. of and a operating the achieve for expect we breakeven before cash to

second Our and million stock-based $X.X of from $X.X compensation the amortization was million depreciation, in expense. included which loss operations quarter

color expect some following. our outlook the we XXXX, add on To for

guidance service and million operating $X from and $XX in flow Loxo includes J&J revenue, $X revenue from Our Oncology. million million cash

We to expectations expect impact and to biopharma excluding XX% gross XX% margins, services to from of up of our XX%. the revenue within XX% the range, be previous

million. to spend for million million combined spend $X spend around marketing stay the within to quarterly of $X of for quarterly spend average the band within our around And average G&A spend our expect our and stay average We and average $XX.X quarterly $XX R&D quarterly band million. combined sales

to now will Bonnie. back call the turn I over

Bonnie Anderson

Keith. execute to revenue continued the across summary, Thanks, business. in genomic and we had growth terrific which In we quarter a test driving volume

revenue strong enabling Our coverage, multi-product cost to And strategy to sales first-to-market is biopharma genomic this contributing our effectively. growth Medicare classifiers and are collaborations us drive growth.

launching our advanced Percepta nasal while detection. in early for our cancer cancer, progressing our also generation programs pipeline lung swab next We lung Classifier

to strategic for us a care scientific Our the questions precision reality are capability our clinical continuum world class and medicine along and positioning make patients. technology recent flexibility, raise we the capital answer gives additional as of promise clinical us

open to call I the ask up the now like for to operator would questions.

Operator

[Operator Instructions] BTIG. from from Ji Sung Nam comes First question

Your line is open.

Sung Ji Nam

hear is nice you overlap -- each seeing sites Maybe community strategy the kind you in kind as you're that feedback there using to getting, Envisia, a broader both picking of are using your setting given at a terms are selecting of type of look And you tests for of IPS more IPF both using a are starting kind of -- number with also between versus for then then test? what sites might sites growth the Envisia, more might benefit Envisia, or the centers initially. -- the of of there the major out the more realize separately? curious that And love proposition any from what's value would about targeting that

Bonnie Anderson

rich that for Well, Sung for question levers. thanks of Ji, thanks multiple and us joining very

all very other through pattern definitely addresses unmet a need in XX% HRCT when test only time, surgery there which than to those. is This alternative. really for such UIP to diagnosis, confident recognizing We no the work will is XX% the well. off Envisia happens is not of because ground that getting big try general

knew pleased to need market we're interest. high we the see would level high and and unmet of So test be there bringing this very to demand

the would was we in We our next result also get to extra did fact that market to back in if was partially bring of it product go the that pulmonology we strategic in and Allegro always our the anticipated to of leverage when also pulmonology. in pipeline doing acquisition we of fact XXXX rationale that sort

So we've there. clinical to, that that also there always are Nevertheless you point different area versus one on specialists synergy that be other. would as often seen focus disease the

well. as And so, that recognize we

level, to fact to ask And team it people at address room in at actually going John that of Officer of point the I'm do this patients pulmonology different to with structure as the perhaps speak Chief designed and specialists who's to to point, Commercial also to unmet our the we've briefly John, that different a these that treat I to of needs addresses include versus but collectively today, add field have us here you specialists bit both IPF/ILD but color Hannah sales levels a lung unifying can to, cancer. our level a slightly want call that? are and specialist little in

John Hannah

seeing and and amount performing but field for Thanks tremendous the happy inside of their colleagues thanks practices synergy where interstitial the so I'm practices. Yes. to. pulmonary treating also much level at lung Bonnie We're these lung disease the question. a managing in bronchoscopies they're cancer are diagnostic

across in once getting we're product there. a portfolio And quarter-over-quarter so to it and of that can to our expanding way pulmonary our into Bonnie XXX% that and the of due the the business the cancer a volume a shared, use grew kind lung we specialists relationship Envisia within us becomes ILD, over And is ease have account once beyond into lot effective practices really and then grow. we of those by as of we're the expand practice

Sung Ji Nam

one And the cash But over it's focus that follow-up, continues Veracyte to or your recent are would the balance guess years? the sheet, deployment priorities and then I of financial on to of few the operational see to just discipline. love shaking next and hear given thoughts kind strategies what nice

Bonnie Anderson

have of we the on company, billion balance cash sheet. our $X.X as think I mean I Yes, right level

pay company, free. when it always debt essentially, come down the there. to so of certainly cap we market we're the a can debt of portion And So strength use the the want you’ve have you up seen, to

also of field clinical the and the at that leverage clinical all how a that, but cohorts, indications very leverage gaining our of also now level and strategy working really a well so is So And across having think in of that these scientific on good. executing be can in we're building repeated. multiple just position in approach, structuring up great well with the these things not executed that's we're sort all I

think position. advantage the in great that take along, come a of If well. cash options So we're we now strategic to as we have would

think, the act as with that positions I lots on. just can options it should it we opportunities of and us in So marketplace

Operator

comes Your from next Puneet Souda question from SVB Leerink.

Puneet Souda

on quarter. the Bonnie, Hi, congrats

to as role. and first for additional So obviously new having -- well Keith the

him well. get the could on, biopharma the terms twice in you and of that's I ask year for If ask to guide a Now been I just including as the maybe questions. obviously then Bonnie collaborations, positive for the driver

of longer about are leveraging these there? get And of what and potential to opportunity of biorepositories that thyroid wanted more should think So you? into of doing term efforts a broader sense and we you how collaborations lung for sort

Bonnie Anderson

an it's Well, Right. question. excellent

I our cancer every out that is space, collaboration, us Loxo allows fact knowledge we that driven more in there. doctors of being we a samples the on in the than our we others were not general the samples in taking drive the else into very to market biopharma laboratory, space, we by into diagnostic clinical ways. leveraging our whole unlike itself. day, touch our cancer cancer gain sample are the clear value. coupled those created different leverage looking in position assets, unto see the much you and We bring segment value we additional a new indications many of be as in maybe relationships we as that -- business And it's thyroid expand every RNA thyroid specifically biopharma we're can around with the think, that our fact capability, to bring anyone leader then at would volume with into did thyroid the platform, can services run that testing testing our the and run In transcriptome in and that

difficult that we of it were rare sample the interest point, stopping these to their of given to more a would our commercial variants be relates find, as great So often repository. targeted in therapies volume

we through our with the address them companies and disease case we impact acquisition, broader the cancer. with in at of of the dying broader less was and focus Both then it built over invasive really tools early of work into we're interventive and collection field advance onwards the in In on therapies their that of lung to doing and how can and today injury around J&J interest detection, that J&J, issue joint looking course, tapping broader time. collaboration people detection tackling work sample the opportunities market strong can and early

on comes can the us value So another here but for to I different is creation shapes think sizes, take something lever and collaborations business. building it Veracyte all back at that the

trials We as is we be go Envisia ourselves diagnosis the early there nicely cases with an early those for in patients established management therapy drug of to just impact or of IPF now really there it that end very we is believe is to patient no it’s that have whether and because better just in to positioned stakeholders looking many be going Envisia the enrollment I another the marketplace, we're of question there. and forward. and very company opportunity only but mean getting trials, prescriptions are in improve

win-win help for I advance on for changing to And everybody. we leader treatment market whole this a better over get Envisia really all credibility market can so, the paradigm the we and with earlier and XX these next will XX, gaining diagnosed to patients a disease lot therapies months, to it be hope forward be in in of we will help think diagnostic earlier go them as and XX, we as

Puneet Souda

now. maybe for broader And that. then Thanks question Great. a

maybe you are thoughts potentially years market, could to you expansion the about share in would you products share your look be You could the have from three the of just anything three how potentially five now, there product can sort thinking helpful? to Veracyte and about how and if

Bonnie Anderson

for able years really generation were actually point allows the to five alike marketplace think but with tests, because appreciate We you, of disease. of I Thank brought be at are are base two it around systems and is old building hold a and strong diagnosis clinical questions already think on diagnosis those technology many out improve with because year I those to attractive Puneet, diagnosis. only entry of of the We the downstream market question. it. doctors other our then them three us and that we specialists that same clinical building very answer into now for to second clinical that the products Yes, to time disease are have a of very -- health products we strategy questions, company. at the point be XX of focused we of of with classifiers, working tapping

in we in broad-based the arsenal. that diagnosis, with name treatment impacting the development is decisions show fact and biorepositories reach entering time all all disease, transcriptome at our knowledge stage we build of disease capability now to metastatic the patients. the that, diagnosis our have and it, the having side, of that disease, space, decisions have data has this of downstream data disease, So, answer disease, have a that scientifically, surgery learning the our got disease, disease, of diagnostic questions whole these the around to that's space, of in thyroid clinical of us have the the all And early same with late that at without combining able expected RNA to you all in for allowed having been that machine and and we we pipeline patients then,

early the other child thyroid decisions and we’re for cancer in treatment around poster not And that targeted therapy are. indications is but

the is we're this and so, that. we that to And using strategy do us allow tools believe really powerful

move and well. is story out out -- to about. with value of we in pipeline chain aggressiveness but there, with not as it's this all lung new, are inform laid disease second not laid also our And this and decisions we talk treatment test, cancer And in-stage our our help you expand all that but as often in is generation detection, Percepta earlier earlier as know, plans only so,

make others? product decision, immediately progress think physicians will answer we discern likely we I diagnostic are patients aggressiveness of than help Because Envisia, which that we question market them the to the faster with can asked the us, well. minute interventions to guide and prognostic as a interventions. Can brought And to

these of the sitting of depth, very because now proven reach comprehensive built and decisions track We’ve that. on across playbook we disciplines, scientifically, within doing to our All of and technology we as a about many lot have are are technology. we follow really a a a go record

So advance. us I think and way lot see potentially of of a up as kind tests timing change move lot And you'll answered. and that -- these there's continuum, a and of clinical you see care do, are you'll the the of the down decisions these

different three next be think the we company. will five very I to Over a years,

Operator

question Your Weinstein William next from from comes Blair. Brian

Your line open. is

Brian Weinstein

is So and of And some longer up you also Can your year? directional term, going product, there's expect just and trend grow? this to out thinking kind Envisia those that how for give something the of for reimbursement trend how about you recognized pacing just kind revenue into to new pricing. per start how and just on to then any that with test as is be on that pricing continues by of insight through that -- expectation to Percepta, how that if -- thoughts or the should we how

Bonnie Anderson

and joining Keith? asking for Absolutely. Thanks questions.

Keith Kennedy

Thank you, Brian.

round the Percepta gets have test obviously Afirma Envisia that $X,XXX to I are revenue our each $X,XXX numbers underlying rate TRICARE at guidance midpoint per had revenue we side. quarter, I obviously about and of last As And the We look and reported for on that a that -- was per added. last those test, managed reported level, and at implies you we still talked care plus minus, but that the or the quarter, expect high completed Afirma, would journey that we've on range. just

continue got lives on four progress make add But you add to when to it already the continuing we move or Afirma. three needle but million things, XXX plans. doesn't as much as you are We covered

had coverage Percepta. We the our as through Xst, on going Medicare coverage, got -- we're Envisia, and mentioned, effective for on journey we Envisia there. April Bonnie for Percepta coverage

we're we next commercial happen products develop level. facilities as and So clinical three those the and all at Medicare. over the evidence of covered But will at journeys physician adoption years on couple

Bonnie Anderson

inclusion -- two drive and driving coverage. a It's always that unique We patients are commercial the different half programs will position lung we’re given of rest that the believe those in guideline the the guideline the is -- lever Yes. evidence Medicare. with inclusion at roughly biggest a payer

And so there is all payers. distributed a the lower commercial amongst of volume

have members the actually when we make timing with given and to sure want a just payer So of you to coverage, them request in on work on lean you enough using aware in test the to those doctor the out than don't test. their reach more you of them and want have you to region before one approach because base them, provider not

So, always when it's early, that's a little challenge.

continue. But, I track think to are on we

this continue to incredible proliferate as We quarter have evidence. we

that evidence the expect over coverage up course our published and and at price tier start reimbursement the will march I needle the to the that months, next of commercial will get level move would XX continue that continue. average to top skinned journals Envisia in and meaningfully be the we We the to will And Percepta to of and XX ladder.

little higher than Medicare is bit other Our reimbursement where for Envisia the products a are.

their publicly said expanded ultimately great we as in story margins given. as that peak end think financial I reach result. at to be X,XXX we'll sort all tests we reimbursement a had position terrific a the in these of range and X,XXX high that But

Keith Kennedy

nice a through job thinking the you of cost have revenue really on done this, are we So as side. Brian

So not too past. for our have cost was come these revenue close distant of down to past around $XXX $XXX $XXX, and that

quarters to where up products, going be commercial OpEx have where you more we going we than more in and total like we're new these to in in defined So be period talk we about and the we thinking about spend and rate when as it’s move more will are that for we're from journey on we $X,XXX are net we'll $X,XXX time as that the profitability to period going But tests our guidance. Medicare on $X,XXX through next these year's on of revenue Afirma. believe a of here this to the that get do

Brian Weinstein

just response. the a that, of detailed growth that of was you you you year, think XX% expectation backing for That is I to said correct? no and don't talked specifically there great to for kind about, Thank genomic customer change the volume everything that. XX%, sort that of

Keith Kennedy

right. That's

Bonnie Anderson

That's right.

Keith Kennedy

That should XX,XXX XX,XXX tests. or imply somewhere between

about quarter than have two days in we had less the quarter. -- We have we next this

quarter XXX basis. probably tests sequential about X% or about So it’s

are tests You around for of XX,XXX looking rest a to average a we are at on the days quarter basis, XX,XXX looking sort of but year.

Brian Weinstein

sales Great. me. And you expand there are XX right last in any on guys months? guys force you on of happy today? your now? Thank things think over need is next if where to to with kind you. then Are Do you the way force any from Where six Okay. sales

Bonnie Anderson

as in always is where want doing tailwind that's and drive Yes. Brian, will we're Thanks our with I we well. continue have a we is these cadence mean what have job to leading -- expanding question. in model takes that growth. we and to team. in build cash pretty doing at up team And all we're we the months actually said, how But for six a flow. sales done think drive the revenue very done speed. expand the and will John to to four get a recipe home we with a that works advance particular the hiring and reps clear to we revenue hiring check. has that -- But the to it has actually detailed will the terrific the a get in little as on of future then And pace, model delivering results plan which volume that. we're at John operational can the it the we of it's model spend following keep in very growth the a to year, model of And always building positive bit sales times

the thanks So for questions.

Operator

from Unger Your next question comes from Steve Needham.

open. is line Your

Steve Unger

that or see Afirma as Percepta start-up, sounded more trends And And of bit how that little populate new treatments? starting give even curious you're with on product GSC, if to could Xpression give could Atlas. the It if ordering inform some most then color a just just would to ordering? us to us just the like color majority I you you for the was

Bonnie Anderson

that's the So today I'll the Afirma testing are is are product, variants curated Afirma and because of start Atlas the portfolio. and with because validated off reported tests of Xpression as done part Xpression -- whether that all Atlas Atlas, an Xpression

some so actually extent And the around there decisions of surgery. of can drive variants

a that a informs of not is So everything variant treatment, course.

to XX% just inform to patients of of resonating of the out time is these, more Afirma send they finding test our generation there. grown the we that moving more they subtleties cells. all testing, now answers But for are second and the a are call, has performance certain portfolios has on because the with over that certain that willing we're testing, patients same improvements that can that our subtypes benign we're at And of doctors of solution of

year, probably but the We this These the new fall therapies specific resonate. answering last meetings well, focus came the that very May. that's very first to we some products ACE all Xpression of takes cancer. year in targeted on early a ever clinical sort ENDO going first ATA and question last Atlas aren't where had time thyroid off of was for in the the time think I So launched at

predominantly have of These been in impact. the to a of of like thyroid of treatment they're have being that recurrence having positive where keep radioactive looks it field this therapies whole tested in that you cancer quite bullet in disease still choice. pan So silver are young are is new this areas has iodine cancer, because therapies very mind we that

could forward, change. standard-of-care going that So

package for able to really Percepta our Afirma. In will the interested the to head and GSC able It's decisions, those to we informing we're lung in running treatments Percepta the platform it's GSC targeted curate on, there cancer repeat that to of the where that a strategy we cancer are out with going how that and was played targets answer see terms be solution questions might be taking lung in of be all at eliminating procedures being to the questions it and get It's about patients we do to able the to the on more diagnosis. quickly same time the platform, timeframe, to well. on now shortening samples the that next can as get generation answering And are get as turning on follow-on Percepta over the that moved fast they to possible. treatment have has the start best therapy we opportunity as the that really that

Steve Unger

guidance, it. next you’ve to is And that do added payments you the you milestone as hit Percepta related that to the is then, looks that Great. like quarter the what What Got and from got to J&J, P&L? far biopharma as the what milestone milestone. services expect it

Bonnie Anderson

the across might you products, driven ones the Percepta are milestones imagine Our GSC were which two

part milestones that be programs I that. that yet to the I we nasal that of And year. achieve that we a And is moving accelerated believe there -- to that believe have one given of relate all targeting additional the those of to we come the test milestones and other announced when are then milestones have relate of accelerate to what advancement did collaboration being will we then nasal this will program along.

Steve Unger

that expected. quarter third the was Keith, you

Keith Kennedy

Yes.

million we J&J. from see fourth to third not $X revenue we'll things any the recognize recognize currently the how So, in do quarter quarter develop. to expect in expect We but

Bonnie Anderson

this unpredictable. driven, the because are expect these side and we revenue And very be in biopharma can milestone lumpy

specifics So Keith products the to be the on revenue we of you like these try side. to give then focus boluses continuing of services and did some clinical growth we when our growth fall from will product on could areas, our key just keep will

Keith Kennedy

expect I recognizing Loxo revenue we $XXX,XXX that in will in and would from add we story next then and and then because quarter each service And you’re in and QX year are well. just to new of QX as sort to recognize

since leave either. Johnson So table you’re off keeping that just the & that really don’t Johnson

Bonnie Anderson

Right.

Steve Unger

understood. Understood,

Bonnie Anderson

Okay?

Steve Unger

Thank Yes. you.

Bonnie Anderson

Thank you very much for joining us today.

Operator

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

now disconnect. may You

Veracyte (VCYT) 30 Jul 192019 Q2 Earnings call transcript