Revenue trends

Veracyte (VCYT) generated revenue of $23.5 million in the third quarter compared to $17.5 million in the same period of the previous year, reflecting a ~34% YoY (year-over-year) rise.

Veracyte generated net revenue of $66.3 million in the first nine months of the year compared to $52.4 million in the same period of the previous year, reflecting a rise of ~27% YoY.

A Financial Overview of Veracyte for November

Veracyte’s revenue growth could boost the share price of the Invesco Russell 2000 Pure Growth ETF (PXSG). Veracyte makes up ~0.47% of PXSG’s total portfolio holdings.

Expense trends

In the third quarter, Veracyte reported a cost of revenue of $8.2 million compared to $7.1 million in the same period of the previous year.

In the third quarter, Veracyte reported R&D (research and development), S&M (selling and marketing), and G&A (general and administrative) expenses of $3.4 million, $10.0 million, and $5.7 million, respectively, compared to $3.0 million, $7.9 million, and $5.5 million, respectively, in the third quarter of 2017.

In the quarter, Veracyte reported a gross margin of 65%, reflecting a 6% YoY increase.

Veracyte’s net cost of revenue amounted to $24.4 million in the first nine months of this year compared to $20.4 million in the same period of the previous year. Veracyte reported year-to-date R&D, S&M, and G&A expenses of $11.7 million, $31.2 million, and $17.3 million, respectively, compared to $10.7 million, $23.2 million, and $17.7 million, respectively, in the same period of the previous year.

Earnings in 2018

In the first nine months of the year, Veracyte reported net income and EPS of -$19.9 million and -$0.56, respectively, compared to -$22.6 million and -$0.67, respectively, in the same period the previous year.

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