Company: VCYT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001384101-25-000014
Chunk: 143

Company: VERACYTE, INC.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 143
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747 License fees and royalties150 152 (7,600)%(2)Depreciation and amortization212 (135)(39)%347 Other expenses4,001 (1,266)(24)%5,267 Allocations2,006 41 2 %1,965 Total$12,384 $(2,940)(19)%$15,324 

Cost of testing revenue increased $25.7 million, or 29%, for the year ended December 31, 2024 compared to 2023. The increase in cost of testing revenue is due to increased variable costs associated with supplies and reagents due to volume, higher 

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staffing to support testing performance and the build out of infrastructure related to current and future growth expectations, primarily related to Decipher Prostate and Afirma tests.

Cost of product revenue is primarily related to sales of Prosigna test kits. Cost of product revenue increased $0.4 million, or 5%, for the year ended December 31, 2024 compared to the same period in 2023, driven by increased overhead and expenses related to the build out of our Marseille, France manufacturing site, partially offset by variable costs due to the lower volume of tests.

Cost of biopharmaceutical and other revenue includes labor costs, laboratory supplies and pass-through expenses incurred. Cost of biopharmaceutical and other revenue decreased by $2.9 million driven by reductions of staffing and variable expenses related to projects.

Comparison of cost of revenue for the years ended December 31, 2023 and 2022 are included in Item 8 of Part II of the Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 29, 2024. 

Research and development

Comparison of the years ended December 31, 2024 and 2023 was as follows (in thousands of dollars, except percentages):

 Year Ended December 31,2024Change%2023Research and development expenseCompensation expense$37,068 $7,888 27 %$29,180 Direct research and development expense19,237 6,319 49 %12,918 Depreciation and amortization1,276 337 36 %939 Other expenses4,969 (4,372)(47)%9,341 Allocations6,744 1,817 37