Veracyte Inc (VCYT)

Gross profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Gross profit US$ in thousands 289,546 248,148 194,954 145,114 76,028
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Gross profit margin 64.95% 68.73% 65.74% 66.11% 64.71%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $289,546K ÷ $445,764K
= 64.95%

The gross profit margin for Veracyte Inc. demonstrates a generally strong profitability indicator over the analyzed period from December 31, 2020, to December 31, 2024. Starting at 64.71% at the end of 2020, the margin experienced a modest increase by the end of 2021, reaching 66.11%. This upward trend continued into 2022, with the margin slightly declining to 65.74%, indicating a minor compression in gross profitability.

In 2023, the gross profit margin saw a notable rise to 68.73%, reflecting either improved efficiency, favorable product mix, or pricing strategies that enhanced gross profitability. However, in 2024, the margin decreased to 64.95%, falling below the levels observed in 2021 and 2022, suggesting some pressures on gross margins, such as increased cost of goods sold, pricing challenges, or shifts in sales composition.

Overall, despite the fluctuations, the gross profit margin has remained relatively high, oscillating between approximately 64.7% and 68.7% across the four-year span. These fluctuations may warrant further analysis into factors influencing cost structures and revenue quality, but the data indicates that Veracyte Inc. maintains a robust gross profit margin within the healthcare diagnostics sector.