Veracyte Inc (VCYT)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 25,744 -76,612 -36,427 -81,649 -34,909
Revenue US$ in thousands 445,764 361,051 296,536 219,514 117,483
Pretax margin 5.78% -21.22% -12.28% -37.20% -29.71%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $25,744K ÷ $445,764K
= 5.78%

The pretax margin of Veracyte Inc has exhibited significant variability over the period from December 31, 2020, to December 31, 2024. In 2020, the pretax margin was recorded at -29.71%, indicating a substantial pre-tax operating loss relative to revenue. This negative margin widened substantially in 2021 to -37.20%, reflecting an increased pre-tax loss during that year.

By 2022, the pretax margin improved markedly to -12.28%, suggesting a significant reduction in pre-tax losses and a potential trajectory toward operational profitability. However, in 2023, the pretax margin experienced a setback, decreasing again to -21.22%. Despite this decline, the margin remained negative, indicating continued pre-tax losses, albeit less severe than in prior years.

The most notable change occurred in 2024, when the pretax margin turned positive at 5.78%. This shift signifies that Veracyte Inc achieved pre-tax profitability during this period, marking a pivotal turnaround in its financial performance. Overall, the trend reflects a trajectory from considerable pre-tax losses toward eventual profitability, with the 2024 figure signaling a positive step in the company's financial health.