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veracyte November 9 , 2021 Veracyte Announces Third Quarter 2021 Financial Results Total Revenue of $ 60.4 Million and Volume of 20,972 Tests Company Launches Percepta Nasal Swab and Decipher Bladder Genomic Tests ; Completes Acquisition of HalioDx Conference Call and Webcast Today at 4:30 p.m. ET SOUTH SAN FRANCISCO , Calif .-- ( BUSINESS WIRE ) -- Nov . 9 , 2021-- Veracyte , Inc. ( Nasdaq : VCYT ) today announced financial results for the third quarter ended September 30 , 2021 . " We are pleased with our third quarter performance as we experienced strong year - over - year revenue growth despite the headwind of the COVID - 19 Delta variant , " said Marc Stapley , Veracyte's chief executive officer . " With the completion of our acquisition of HalioDx , the launch of our novel noninvasive Percepta Nasal Swab test for early lung cancer risk assessment and of our Decipher Bladder test to help guide bladder cancer treatment decisions , the pieces are coming together to transform our company into a global cancer diagnostics leader . " Third Quarter 2021 Financial Results For the third quarter of 2021 , as compared with the third quarter of 2020 : • Total Revenue was $ 60.4 million , an increase of 94 % , including $ 4.7 million of HalioDx revenue ; • Gross Margin was 64 % , a decrease of 300 basis points including the impact of HalioDx and the associated purchase accounting ; Gross Margin equaled 68 % , an increase of 100 basis points , before the impact of HalioDx ; • Operating Expenses , Excluding Cost of Revenue , were $ 55.4 million , an increase of 123 % , including $ 7.5 million of HalioDx expenses and $ 5.8 million in acquisition - related expenses ; • Net Loss was $ 14.1 million , an increase of 243 % , including $ 5.8 million of acquisition - related expenses and $ 6.3 million of HalioDx net loss ; • Basic and Diluted Net Loss Per Common Share was $ 0.20 , an increase of 150 % ; • Net Cash Used in Operating Activities was $ 1.4 million including $ 3.9 million of acquisition - related expenses ; and • Cash and Cash Equivalents were $ 164.0 million at September 30 , 2021 . For the nine months ended September 30 , 2021 , compared to the prior year : • Total Revenue was $ 152.2 million , an increase of 83 % , including $ 4.7 million of HalioDx revenue ; • Gross Margin was 66 % , an increase of 200 basis points including the impact of HalioDx and the associated purchase accounting ; Gross Margin equaled 68 % , an increase of 400 basis points , before the impact of HalioDx ; • Operating Expenses , Excluding Cost of Revenue , were $ 170.2 million , an increase of 113 % , including $ 7.5 million of HalioDx expenses and $ 45.3 million of acquisition - related expenses ; • Net Loss was $ 65.0 million , an increase of 142 % , including $ 45.3 million of acquisition - related expenses and $ 6.3 million of HalioDx net loss ; • Basic and Diluted Net Loss Per Common Share was $ 0.97 , an increase of 87 % , including $ 0.68 per share attributable to acquisition - related expenses recorded in general and administrative expenses ; and • Net Cash Used in Operating Activities was $ 40.1 million , including $ 43.4 million of acquisition - related expenses . Third Quarter 2021 and Recent Business Highlights Commercial Growth : • Grew volume to 20,972 tests , including a small contribution from the Immunoscore Colon Cancer test , an increase of 79 % compared to the same period in 2020 . • Gained a new Blues coverage policy for Decipher Prostate , making the test a covered benefit for the plan's 5 million members and bringing the total number of covered lives to over 150 million . Also secured contracts for the test with a large Blues plan and national government payer . Evidence Development and Guideline Inclusion : • Six abstracts demonstrating the performance and utility of our genomic pulmonology and urology tests were presented at the 2021 American College of Chest Physicians ( CHEST ) and American Society for Radiation Oncology ( ASTRO ) annual meetings , respectively . • New long - term clinical utility data for the Afirma Genomic Sequencing Classifier were published in the Journal of the Endocrine Society and showed that the test helped reduce unnecessary surgeries in patients with indeterminate thyroid