Veracyte, Inc. (NASDAQ:VCYT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Veracyte, Inc. operates as a diagnostics company in the United States and internationally. The US$3.2b market-cap company's loss lessened since it announced a US$74m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$9.3m, as it approaches breakeven. As path to profitability is the topic on Veracyte's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.

Veracyte is bordering on breakeven, according to the 11 American Biotechs analysts. They expect the company to post a final loss in 2023, before turning a profit of US$28m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 46%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of Veracyte's upcoming projects, however, keep in mind that by and large biotechs, depending on the stage of product development, have irregular periods of cash flow. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

Before we wrap up, there's one aspect worth mentioning. Veracyte currently has no debt on its balance sheet, which is quite unusual for a cash-burning biotech, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Veracyte which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Veracyte, take a look at Veracyte's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Valuation: What is Veracyte worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Veracyte is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Veracyte's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.