What drove VCYT's earnings beat in 2024?

Veracyte's earnings beat in 2024 can be attributed to several key factors:

1. **Strong Revenue Growth**: Veracyte experienced significant revenue growth, with testing revenue increasing by 31% year-over-year to $107 million. This was driven by strong performance from their Decipher Prostate and Afirma tests, which saw a 36% and 19% increase in revenue, respectively.
2. **Increased Testing Volume**: The company's total testing volume rose by 20% to approximately 36,800 tests compared to the prior year period. This increase in testing volume contributed to the growth in revenue.
3. **Improved Testing ASP**: The average selling price (ASP) for testing remained stable at approximately $2,950, including $3.5 million of prior period collections. This stability in ASP, combined with the increase in testing volume, contributed to the revenue growth.
4. **Effective Cost Management**: Veracyte's adjusted EBITDA margin stood at 21%, indicating effective cost management despite the revenue growth. This efficiency in managing costs helped in boosting profitability.

In summary, Veracyte's earnings beat in 2024 was driven by strong revenue growth, increased testing volume, and effective cost management.