Exact Sciences Announces Third-Quarter 2024 Results
Exact Sciences reported Q3 2024 total revenue of $709 million, up 13% year-over-year, with Screening revenue of $545 million (+15%) and Precision Oncology revenue of $164 million (+5%). Despite recording a net loss of $38 million, the company achieved an adjusted EBITDA of $99 million with a 14% margin, representing a 500 basis point improvement. Operating cash flow reached $139 million with free cash flow of $113 million. Notable developments include FDA approval for Cologuard Plus™ test and promising results from their blood-based colorectal cancer screening test. However, the company revised down its full-year 2024 guidance for both revenue and adjusted EBITDA.
Exact Sciences ha riportato per il terzo trimestre del 2024 un fatturato totale di 709 milioni di dollari, in aumento del 13% rispetto all'anno precedente. Il fatturato da Screening è stato di 545 milioni di dollari (+15%) e quello da Precision Oncology è stato di 164 milioni di dollari (+5%). Nonostante una perdita netta di 38 milioni di dollari, l'azienda ha ottenuto un EBITDA rettificato di 99 milioni di dollari, con un margine del 14%, rappresentando un miglioramento di 500 punti base. Il flusso di cassa operativo ha raggiunto i 139 milioni di dollari, con un flusso di cassa libero di 113 milioni di dollari. Sviluppi significativi includono l'approvazione della FDA per il test Cologuard Plus™ e risultati promettenti dal loro test di screening per il cancro colorettale basato sul sangue. Tuttavia, l'azienda ha rivisto al ribasso le stime per l'intero anno 2024 sia per il fatturato che per l'EBITDA rettificato.
Exact Sciences reportó ingresos totales de 709 millones de dólares en el tercer trimestre de 2024, lo que representa un aumento del 13% interanual. Los ingresos por Screening fueron de 545 millones de dólares (+15%) y los de Precision Oncology fueron de 164 millones de dólares (+5%). A pesar de registrar una pérdida neta de 38 millones de dólares, la compañía logró un EBITDA ajustado de 99 millones de dólares con un margen del 14%, lo que representa una mejora de 500 puntos básicos. El flujo de efectivo operativo alcanzó los 139 millones de dólares, con un flujo de efectivo libre de 113 millones de dólares. Entre los desarrollos notables se incluyen la aprobación de la FDA para la prueba Cologuard Plus™ y resultados prometedores de su prueba de detección de cáncer colorrectal basada en sangre. Sin embargo, la empresa revisó a la baja su orientación para el año completo 2024 tanto en ingresos como en EBITDA ajustado.
엑잭트 사이언스는 2024년 3분기 총 수익이 7억 0900만 달러로 전년 대비 13% 증가했다고 보고했습니다. 스크리닝 수익은 5억 4500만 달러(+15%), 정밀 종양학 수익은 1억 6400만 달러(+5%)였습니다. 3800만 달러의 순손실을 기록했음에도 불구하고, 회사는 9900만 달러의 조정 EBITDA를 달성했으며, 마진은 14%로 500bp 개선된 수치입니다. 운영 현금 흐름은 1억 3900만 달러에 도달했으며, 자유 현금 흐름은 1억 1300만 달러였습니다. 주요 발전 사항으로는 Cologuard Plus™ 테스트의 FDA 승인과 혈액 기반 대장암 스크리닝 테스트의 유망한 결과가 포함됩니다. 그러나 회사는 2024년 전체 연도 수익 및 조정 EBITDA에 대한 가이던스를 하향 조정했습니다.
Exact Sciences a annoncé un chiffre d'affaires total de 709 millions de dollars pour le troisième trimestre 2024, en hausse de 13 % par rapport à l'année précédente, avec un chiffre d'affaires lié au dépistage de 545 millions de dollars (+15 %) et un chiffre d'affaires en oncologie de précision de 164 millions de dollars (+5 %). Malgré une perte nette de 38 millions de dollars, la société a réalisé un EBITDA ajusté de 99 millions de dollars avec une marge de 14 %, représentant une amélioration de 500 points de base. Le flux de trésorerie d'exploitation a atteint 139 millions de dollars avec un flux de trésorerie libre de 113 millions de dollars. Parmi les développements notables, on compte l'approbation de la FDA pour le test Cologuard Plus™ et des résultats prometteurs de leur test de dépistage du cancer colorectal basé sur le sang. Cependant, l'entreprise a révisé à la baisse ses prévisions pour l'ensemble de l'année 2024 tant en termes de chiffre d'affaires que d'EBITDA ajusté.
Exact Sciences berichtete für das dritte Quartal 2024 einen Gesamtumsatz von 709 Millionen Dollar, was einem Anstieg von 13 % im Vergleich zum Vorjahr entspricht. Der Umsatz aus Screening betrug 545 Millionen Dollar (+15 %) und aus Precision Oncology 164 Millionen Dollar (+5 %). Trotz eines Nettoverlusts von 38 Millionen Dollar erzielte das Unternehmen ein bereinigtes EBITDA von 99 Millionen Dollar mit einer Marge von 14 %, was eine Verbesserung um 500 Basispunkte darstellt. Der operative Cashflow erreichte 139 Millionen Dollar mit einem freien Cashflow von 113 Millionen Dollar. Zu den bemerkenswerten Entwicklungen gehören die FDA-Zulassung für den Cologuard Plus™-Test und vielversprechende Ergebnisse aus ihrem blutbasierten Screening-Test auf Dickdarmkrebs. Das Unternehmen hat jedoch seine Jahresprognose für 2024 sowohl für den Umsatz als auch für das bereinigte EBITDA nach unten korrigiert.
- Revenue growth of 13% YoY to $709 million
- Screening revenue increased 15% to $545 million
- Adjusted EBITDA margin improved by 500 basis points to 14%
- Operating cash flow increased by $114 million to $139 million
- FDA approval received for next-generation Cologuard Plus test
- Net loss of $38 million ($0.21 per share)
- Downward revision of full-year 2024 guidance
- Lower than expected Q3 execution per CEO comments
- Other operating income decreased from $72 million to $3 million
Insights
The Q3 results show mixed performance with notable strengths and concerns. Revenue grew 13% to
However, the reduced full-year guidance is concerning - total revenue forecast cut by
The FDA approval of Cologuard Plus represents a significant advancement, with improved accuracy and
The multi-cancer early detection test data (
Delivered record revenue and cash flow, improved adjusted EBITDA, advanced pipeline
Third quarter highlights
-
Total third quarter revenue of
, an increase of$709 million 13% on a reported and core revenue basis, including Screening revenue of and Precision Oncology revenue of$545 million $164 million -
Net loss was
, adjusted EBITDA was$38 million , and adjusted EBITDA margin increased 500 basis points to$99 million 14% -
Operating cash flow was
with free cash flow of$139 million $113 million - Received FDA approval for the Cologuard Plus™ test, the Company's next-generation Cologuard® test
-
Presented data showing potential of its blood-based colorectal cancer screening test, with sensitivities of
88% for colorectal cancer and31% for advanced precancerous lesions at90% specificity - Secured acceptance from a peer reviewed journal for the first publication on the Oncodetect™ test, its molecular residual disease and recurrence monitoring test
“The Exact Sciences’ team is helping eradicate cancer while strengthening our platform and growing our business efficiently,” said Kevin Conroy, chairman and CEO. “During the third quarter, we delivered test results to more patients than ever before, improved profitability, and achieved key milestones in our pipeline of innovative cancer diagnostics. While we have made progress, our execution during the third quarter and updated outlook for the full year don’t reflect our full potential. We plan to accelerate growth in 2025, and our long-term outlook remains strong.”
Third-quarter 2024 financial results
For the three-month period ended September 30, 2024, as compared to the same period of 2023 (where applicable):
-
Total revenue was
, an increase of 13 percent on a reported and core revenue basis$709 million -
Screening revenue was
, an increase of 15 percent$545 million -
Precision Oncology revenue was
, an increase of 5 percent on a reported and core revenue basis$164 million - Gross margin including amortization of acquired intangible assets was 69 percent, and non-GAAP gross margin excluding amortization of acquired intangible assets was 72 percent
-
Other operating income was
compared to$3 million , which included a gain related to the sale of the Oncotype DX Genomic Prostate Score Test in third-quarter 2023$72 million -
Net loss was
, or$38 million per basic and diluted share, a reduction of$0.21 , or$39 million per basic and diluted share$0.21 -
Adjusted EBITDA was
an increase of$99 million , and adjusted EBITDA margin was 14 percent, an increase of 500 basis points$42 million -
Operating cash flow was
and free cash flow was$139 million , increases of$113 million and$114 million , respectively$113 million -
Cash, cash equivalents, and marketable securities were
at the end of the quarter$1.02 billion
Screening primarily includes laboratory service revenue from Cologuard tests and PreventionGenetics. Precision Oncology includes laboratory service revenue from global Oncotype DX and therapy selection tests.
Platform and pipeline advancements
The Company's ExactNexus™ technology platform allows Exact Sciences to connect electronically with patients, health systems, healthcare professionals, and payers. The digital tools and data embedded within the ExactNexus platform enable personalized customer experiences, creating a streamlined process for accessing information, enhancing patient engagement, and improving health outcomes. This approach contributed to strong growth in Cologuard test utilization among rescreen patients and within care gap programs during the third quarter.
Exact Sciences received FDA approval for the Cologuard Plus test, its next-generation Cologuard test. The Cologuard Plus test detects cancers and precancerous polyps with even greater sensitivity than the Cologuard test while reducing false positives by more than 30 percent. This advancement enhances the Company’s screening capabilities and reinforces its commitment to delivering high-quality, non-invasive options for patients. With the Cologuard Plus test, the Company expects to secure a higher price through an established Medicare pathway.
In the third quarter, the Company also presented data for its blood-based colorectal cancer screening test, showcasing a sensitivity of
Exact Sciences secured acceptance from a peer-reviewed journal for its first publication on the Oncodetect test, its molecular residual disease and recurrence monitoring test. These data are currently under embargo and are expected to be shared in January 2025. With nearly 6 million cancer survivors in the
The Company also shared evidence supporting its blood-based multi-cancer screening test, assessing organ-specific performance of methylation and protein biomarkers in a prospectively collected cohort of samples from its ASCEND 2 study. The analysis indicated an overall sensitivity of
2024 outlook
The Company has updated its full-year 2024 revenue and adjusted EBITDA guidance:
|
Prior guidance |
|
November 5 update |
Total revenue |
|
|
|
Screening |
|
|
|
Precision Oncology |
|
|
|
Adjusted EBITDA |
|
|
|
Third-quarter 2024 conference call & webcast
Company management will host a conference call and webcast on Tuesday, November 5, 2024, at 5 p.m. ET to discuss third-quarter 2024 results. The webcast will be available at exactsciences.com. Domestic callers should dial 888-330-2384 and international callers should dial +1-240-789-2701. The access code for both domestic and international callers is 4437608. A replay of the webcast will be available at exactsciences.com. The webcast, conference call, and replay are open to all interested parties.
Non-GAAP disclosure
In addition to the Company’s financial results determined in accordance with
About the Cologuard® and Cologuard Plus™ tests:
Developed in collaboration with Mayo Clinic, the Cologuard and Cologuard Plus tests are non-invasive colorectal cancer (CRC) screening options for the 110 million
The Cologuard test revolutionized CRC screening by detecting specific DNA markers and blood associated with cancer and precancer in stool, allowing patients to use the test at home without special preparation or time off. It is covered by Medicare and included in national screening guidelines from both the American Cancer Society (2018) and the
Building on this success, the FDA-approved Cologuard Plus test raises the performance bar even further and features novel biomarkers, improved laboratory processes, and enhanced sample stability. The Cologuard Plus test is expected to reduce false positives by more than
About Exact Sciences’ Precision Oncology portfolio
Exact Sciences’ Precision Oncology portfolio delivers actionable genomic insights to inform prognosis and cancer treatment after a diagnosis. In breast cancer, the Oncotype DX Breast Recurrence Score® test is the only test shown to predict the likelihood of chemotherapy benefit as well as recurrence in invasive breast cancer. The Oncotype DX test is recognized as the standard of care and is included in all major breast cancer treatment guidelines. The OncoExTra® test applies comprehensive tumor profiling, utilizing whole exome and whole transcriptome sequencing, to aid in therapy selection for patients with advanced, metastatic, refractory, relapsed, or recurrent cancer. With an extensive panel of approximately 20,000 genes and 169 introns, the OncoExTra test is one of the most comprehensive genomic (DNA) and transcriptomic (RNA) panels available today. Exact Sciences enables patients to take a more active role in their cancer care and makes it easy for providers to order tests, interpret results, and personalize medicine. To learn more, visit precisiononcology.exactsciences.com.
About PreventionGenetics
Founded in 2004 and located in
About Exact Sciences Corp.
A leading provider of cancer screening and diagnostic tests, Exact Sciences gives patients and health care professionals the clarity needed to take life-changing action earlier. Building on the success of the Cologuard and Oncotype DX tests, Exact Sciences is investing in its pipeline to develop innovative solutions for use before, during, and after a cancer diagnosis. For more information, visit ExactSciences.com, follow Exact Sciences on X @ExactSciences, or find Exact Sciences on LinkedIn and Facebook.
Forward-Looking Statements
This news release contains forward-looking statements concerning our expectations, anticipations, intentions, beliefs or strategies regarding the future. These forward-looking statements are based on assumptions that we have made as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions and events to differ materially from those anticipated. Therefore, you should not place undue reliance on forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding expected future operating results; expectations for development of new or improved products and services and their impacts on patients; our strategies, positioning, resources, capabilities and expectations for future events or performance; and the anticipated benefits of our acquisitions, including estimated synergies and other financial impacts.
Important factors that could cause actual results, conditions and events to differ materially from those indicated in the forward-looking statements include, among others, the following: our ability to successfully and profitably market our products and services; the acceptance of our products and services by patients and healthcare providers; our ability to meet demand for our products and services; our reliance upon certain suppliers, including suppliers that are the sole source of certain supplies and products used in our tests and operations; approval and maintenance of adequate reimbursement rates for our products and services within and outside of the
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Condensed Consolidated Statements of Operations (Amounts in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
708,655 |
|
|
$ |
628,338 |
|
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
|
|
|
|
|
|
|
|
||||||||
Operating expenses |
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of amortization of acquired intangible assets) |
|
196,070 |
|
|
|
168,526 |
|
|
|
556,019 |
|
|
|
482,383 |
|
Research and development |
|
100,101 |
|
|
|
111,446 |
|
|
|
331,593 |
|
|
|
310,960 |
|
Sales and marketing |
|
194,653 |
|
|
|
173,159 |
|
|
|
572,288 |
|
|
|
536,613 |
|
General and administrative |
|
217,201 |
|
|
|
217,393 |
|
|
|
662,174 |
|
|
|
672,653 |
|
Amortization of acquired intangible assets |
|
24,435 |
|
|
|
22,992 |
|
|
|
71,057 |
|
|
|
68,849 |
|
Impairment of long-lived assets |
|
18,698 |
|
|
|
— |
|
|
|
31,296 |
|
|
|
621 |
|
Total operating expenses |
|
751,158 |
|
|
|
693,516 |
|
|
|
2,224,427 |
|
|
|
2,072,079 |
|
|
|
|
|
|
|
|
|
||||||||
Other operating income |
|
3,100 |
|
|
|
72,027 |
|
|
|
6,632 |
|
|
|
72,027 |
|
Income (loss) from operations |
|
(39,403 |
) |
|
|
6,849 |
|
|
|
(172,352 |
) |
|
|
(147,171 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Investment income, net |
|
11,582 |
|
|
|
2,065 |
|
|
|
29,596 |
|
|
|
7,383 |
|
Interest expense |
|
(9,607 |
) |
|
|
(7,871 |
) |
|
|
(17,439 |
) |
|
|
(11,582 |
) |
Total other income (expense) |
|
1,975 |
|
|
|
(5,806 |
) |
|
|
12,157 |
|
|
|
(4,199 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before tax |
|
(37,428 |
) |
|
|
1,043 |
|
|
|
(160,195 |
) |
|
|
(151,370 |
) |
|
|
|
|
|
|
|
|
||||||||
Income tax expense |
|
(808 |
) |
|
|
(249 |
) |
|
|
(4,077 |
) |
|
|
(3,013 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
(38,236 |
) |
|
$ |
794 |
|
|
$ |
(164,272 |
) |
|
$ |
(154,383 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share—basic |
$ |
(0.21 |
) |
|
$ |
0.00 |
|
|
$ |
(0.89 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share—diluted |
$ |
(0.21 |
) |
|
$ |
0.00 |
|
|
$ |
(0.89 |
) |
|
$ |
(0.86 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding—basic |
|
184,795 |
|
|
|
180,649 |
|
|
|
183,823 |
|
|
|
179,817 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding—diluted |
|
184,795 |
|
|
|
184,075 |
|
|
|
183,823 |
|
|
|
179,817 |
|
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Condensed Consolidated Balance Sheets (Amounts in thousands) |
|||||
|
September 30,
|
|
December 31,
|
||
Assets |
|
|
|
||
Cash and cash equivalents |
$ |
588,830 |
|
$ |
605,378 |
Marketable securities |
|
432,301 |
|
|
172,266 |
Accounts receivable, net |
|
264,819 |
|
|
203,623 |
Inventory |
|
136,987 |
|
|
127,475 |
Prepaid expenses and other current assets |
|
110,180 |
|
|
85,627 |
Property, plant and equipment, net |
|
690,332 |
|
|
698,354 |
Operating lease right-of-use assets |
|
122,452 |
|
|
143,708 |
Goodwill |
|
2,367,450 |
|
|
2,367,120 |
Intangible assets, net |
|
1,864,399 |
|
|
1,890,396 |
Other long-term assets, net |
|
170,821 |
|
|
177,387 |
Total assets |
$ |
6,748,571 |
|
$ |
6,471,334 |
|
|
|
|
||
Liabilities and stockholders’ equity |
|
|
|
||
Convertible notes, net, current portion |
$ |
249,038 |
|
$ |
— |
Current liabilities |
|
474,624 |
|
|
514,701 |
Convertible notes, net, less current portion |
|
2,319,490 |
|
|
2,314,276 |
Other long-term liabilities |
|
332,213 |
|
|
335,982 |
Operating lease liabilities, less current portion |
|
162,695 |
|
|
161,070 |
Total stockholders’ equity |
|
3,210,511 |
|
|
3,145,305 |
Total liabilities and stockholders’ equity |
$ |
6,748,571 |
|
$ |
6,471,334 |
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Reconciliation of Core Revenue (Amounts in thousands) |
|||||||||||||||||||||
|
|
GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Three Months Ended September 30, |
|
|
|
|
|
|
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
|
|
|
|
|||||
Screening |
|
$ |
544,901 |
|
|
$ |
472,013 |
|
|
15 |
% |
|
|
|
|
|
|
||||
Precision Oncology |
|
|
163,754 |
|
|
|
156,325 |
|
|
5 |
% |
|
|
|
|
|
|
||||
Total |
|
$ |
708,655 |
|
|
$ |
628,338 |
|
|
13 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Non-GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Three Months Ended September 30, |
|
|
|||||||||||||||||
|
|
|
2024 (1) |
|
|
|
2023 (1) |
|
|
% Change |
|
Foreign Currency
|
|
Core Revenue (3) |
|
% Change (3) |
|||||
Screening |
|
$ |
544,901 |
|
|
$ |
472,013 |
|
|
15 |
% |
|
$ |
— |
|
|
$ |
544,901 |
|
15 |
% |
Precision Oncology |
|
|
162,819 |
|
|
|
154,451 |
|
|
5 |
% |
|
|
(810 |
) |
|
|
162,009 |
|
5 |
% |
Total |
|
$ |
707,720 |
|
|
$ |
626,464 |
|
|
13 |
% |
|
$ |
(810 |
) |
|
$ |
706,910 |
|
13 |
% |
|
|
GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Nine Months Ended September 30, |
|
|
|
|
|
|
|||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
|
|
|
|
|||||
Screening |
|
$ |
1,551,305 |
|
|
$ |
1,377,995 |
|
|
13 |
% |
|
|
|
|
|
|
||||
Precision Oncology |
|
|
494,138 |
|
|
|
468,931 |
|
|
5 |
% |
|
|
|
|
|
|
||||
COVID-19 Testing |
|
|
— |
|
|
|
5,955 |
|
|
(100 |
)% |
|
|
|
|
|
|
||||
Total |
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
|
10 |
% |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Non-GAAP |
|
|
|
|
|
|
|||||||||||||
|
|
Nine Months Ended September 30, |
|
|
|||||||||||||||||
|
|
|
2024 (1) |
|
|
|
2023 (1) |
|
|
% Change |
|
Foreign Currency
|
|
Core Revenue (3) |
|
% Change (3) |
|||||
Screening |
|
$ |
1,551,305 |
|
|
$ |
1,377,995 |
|
|
13 |
% |
|
$ |
— |
|
|
$ |
1,551,305 |
|
13 |
% |
Precision Oncology |
|
|
486,518 |
|
|
|
462,725 |
|
|
5 |
% |
|
|
(672 |
) |
|
|
485,846 |
|
5 |
% |
Total |
|
$ |
2,037,823 |
|
|
$ |
1,840,720 |
|
|
11 |
% |
|
$ |
(672 |
) |
|
$ |
2,037,151 |
|
11 |
% |
|
(1) Excludes revenue from COVID-19 testing, the divested Oncotype DX Genomic Prostate Score test, and the Resolution Bioscience acquisition.
(2) Foreign currency impact is calculating the change in current period non-
(3) Excludes revenue from COVID-19 testing, the divested Oncotype DX Genomic Prostate Score test, the impact of foreign currency exchange rate fluctuations, and the Resolution Bioscience acquisition.
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliations (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenue |
|
$ |
708,655 |
|
|
$ |
628,338 |
|
|
$ |
2,045,443 |
|
|
$ |
1,852,881 |
|
Cost of sales (exclusive of amortization of acquired intangible assets) |
|
|
196,070 |
|
|
|
168,526 |
|
|
|
556,019 |
|
|
|
482,383 |
|
Amortization of acquired intangible assets (1) |
|
|
21,100 |
|
|
|
20,781 |
|
|
|
63,300 |
|
|
|
62,216 |
|
Gross profit |
|
$ |
491,485 |
|
|
$ |
439,031 |
|
|
$ |
1,426,124 |
|
|
$ |
1,308,282 |
|
Gross margin |
|
|
69 |
% |
|
|
70 |
% |
|
|
70 |
% |
|
|
71 |
% |
|
|
|
|
|
|
|
|
|
||||||||
Amortization of acquired intangible assets (1) |
|
|
21,100 |
|
|
|
20,781 |
|
|
|
63,300 |
|
|
|
62,216 |
|
Non-GAAP gross profit |
|
$ |
512,585 |
|
|
$ |
459,812 |
|
|
$ |
1,489,424 |
|
|
$ |
1,370,498 |
|
Non-GAAP gross margin |
|
|
72 |
% |
|
|
73 |
% |
|
|
73 |
% |
|
|
74 |
% |
|
(1) Includes only amortization of intangible assets identified as developed technology assets through purchase accounting transactions, which otherwise would have been allocated to cost of sales.
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Adjusted EBITDA Reconciliations (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
|
$ |
(38,236 |
) |
|
$ |
794 |
|
|
$ |
(164,272 |
) |
|
$ |
(154,383 |
) |
Interest expense (1) |
|
|
9,607 |
|
|
|
7,871 |
|
|
|
17,439 |
|
|
|
11,582 |
|
Income tax expense |
|
|
808 |
|
|
|
249 |
|
|
|
4,077 |
|
|
|
3,013 |
|
Investment income |
|
|
(11,582 |
) |
|
|
(2,065 |
) |
|
|
(29,596 |
) |
|
|
(7,383 |
) |
Depreciation and amortization |
|
|
54,771 |
|
|
|
52,254 |
|
|
|
161,712 |
|
|
|
152,436 |
|
Stock-based compensation (2) |
|
|
57,219 |
|
|
|
72,089 |
|
|
|
197,143 |
|
|
|
204,752 |
|
Acquisition and integration costs (3) |
|
|
5,310 |
|
|
|
(4,395 |
) |
|
|
2,836 |
|
|
|
(8,146 |
) |
Impairment of long-lived assets (4) |
|
|
18,698 |
|
|
|
— |
|
|
|
31,296 |
|
|
|
621 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
(3,100 |
) |
|
|
(70,522 |
) |
|
|
(6,632 |
) |
|
|
(70,522 |
) |
Restructuring and business transformation (6) |
|
|
8,736 |
|
|
|
— |
|
|
|
11,671 |
|
|
|
907 |
|
License agreement termination (7) |
|
|
— |
|
|
|
— |
|
|
|
25,843 |
|
|
|
— |
|
Legal settlement (8) |
|
|
(3,500 |
) |
|
|
— |
|
|
|
(3,500 |
) |
|
|
36,186 |
|
Adjusted EBITDA |
|
$ |
98,731 |
|
|
$ |
56,275 |
|
|
$ |
248,017 |
|
|
$ |
169,063 |
|
Adjusted EBITDA margin |
|
|
14 |
% |
|
|
9 |
% |
|
|
12 |
% |
|
|
9 |
% |
|
Refer below the Reconciliations of
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information
Reconciliation of (Amounts in thousands) |
||||||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2024 |
||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||
Reported |
|
$ |
196,070 |
|
$ |
100,101 |
|
|
$ |
194,653 |
|
$ |
217,201 |
|
|
$ |
24,435 |
|
|
$ |
18,698 |
|
|
$ |
3,100 |
|
|
$ |
(39,403 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(24,435 |
) |
|
|
— |
|
|
|
— |
|
|
|
24,435 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(5,310 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,310 |
|
Impairment of long-lived assets (4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(18,698 |
) |
|
|
— |
|
|
|
18,698 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,100 |
) |
|
|
(3,100 |
) |
Restructuring and business transformation (6) |
|
|
— |
|
|
(4,181 |
) |
|
|
— |
|
|
(4,555 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,736 |
|
Legal settlement (8) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
Adjusted |
|
$ |
196,070 |
|
$ |
95,920 |
|
|
$ |
194,653 |
|
$ |
210,836 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,176 |
|
|
|
Nine Months Ended September 30, 2024 |
||||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||||
Reported |
|
$ |
556,019 |
|
|
$ |
331,593 |
|
|
$ |
572,288 |
|
|
$ |
662,174 |
|
|
$ |
71,057 |
|
|
$ |
31,296 |
|
|
$ |
6,632 |
|
|
$ |
(172,352 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(71,057 |
) |
|
|
— |
|
|
|
— |
|
|
|
71,057 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,836 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,836 |
|
Impairment of long-lived assets (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(31,296 |
) |
|
|
— |
|
|
|
31,296 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(6,632 |
) |
|
|
(6,632 |
) |
Restructuring and business transformation (6) |
|
|
(200 |
) |
|
|
(6,574 |
) |
|
|
(222 |
) |
|
|
(4,675 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
11,671 |
|
License agreement termination (7) |
|
|
— |
|
|
|
(25,843 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
25,843 |
|
Legal settlement (8) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,500 |
) |
Adjusted |
|
$ |
555,819 |
|
|
$ |
299,176 |
|
|
$ |
572,066 |
|
|
$ |
658,163 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(39,781 |
) |
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information
Reconciliation of (Amounts in thousands) |
|||||||||||||||||||||||||||||
|
|
Three Months Ended September 30, 2023 |
|||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
|||||||||||||
Reported |
|
$ |
168,526 |
|
$ |
111,446 |
|
|
$ |
173,159 |
|
$ |
217,393 |
|
|
$ |
22,992 |
|
|
$ |
— |
|
$ |
72,027 |
|
|
$ |
6,849 |
|
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(22,992 |
) |
|
|
— |
|
|
— |
|
|
|
22,992 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
(492 |
) |
|
|
— |
|
|
4,887 |
|
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(4,395 |
) |
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1,505 |
) |
|
|
— |
|
|
|
— |
|
|
(72,027 |
) |
|
|
(70,522 |
) |
Adjusted |
|
$ |
168,526 |
|
$ |
110,954 |
|
|
$ |
173,159 |
|
$ |
220,775 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
— |
|
|
$ |
(45,076 |
) |
|
|
Nine Months Ended September 30, 2023 |
||||||||||||||||||||||||||||
|
|
Cost of
|
|
Research &
|
|
Sales &
|
|
General &
|
|
Amortization
|
|
Impairment
|
|
Other
|
|
Income
|
||||||||||||||
Reported |
|
$ |
482,383 |
|
$ |
310,960 |
|
|
$ |
536,613 |
|
$ |
672,653 |
|
|
$ |
68,849 |
|
|
$ |
621 |
|
|
$ |
72,027 |
|
|
$ |
(147,171 |
) |
Amortization of acquired intangible assets |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
(68,849 |
) |
|
|
— |
|
|
|
— |
|
|
|
68,849 |
|
Acquisition and integration costs (3) |
|
|
— |
|
|
(492 |
) |
|
|
— |
|
|
8,638 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(8,146 |
) |
Impairment of long-lived assets (4) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
621 |
|
Gain on sale of asset and divestiture related costs (5) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(1,505 |
) |
|
|
— |
|
|
|
— |
|
|
|
(72,027 |
) |
|
|
(70,522 |
) |
Restructuring and business transformation (6) |
|
|
— |
|
|
(723 |
) |
|
|
— |
|
|
(184 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
907 |
|
Legal settlement (8) |
|
|
— |
|
|
— |
|
|
|
— |
|
|
(36,186 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36,186 |
|
Adjusted |
|
$ |
482,383 |
|
$ |
309,745 |
|
|
$ |
536,613 |
|
$ |
643,416 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(119,276 |
) |
|
(1) Interest expense includes net gains recorded of
(2) Represents stock-based compensation expense and 401(k) match expense. The Company matches a portion of Exact Sciences employees’ contributions annually in the form of the Company’s common stock.
(3) Represents acquisition and related integration costs incurred as a result of the Company’s business combinations. Acquisition costs represent legal and professional fees incurred to execute the transaction. There were no acquisition costs incurred for the three and nine months ended September 30, 2024 and there was an insignificant amount incurred for the three and nine months ended September 30, 2023 related to the acquisition of Resolution Bioscience, Inc. Integration related costs represent expenses incurred outside regular business operations, specifically relating to the integration of businesses acquired through a business combination. This includes any gain or loss on contingent consideration liabilities, severance and accelerated vesting of stock awards, and professional services. The remeasurement of the contingent consideration liabilities resulted in an expense of
(4) Represents impairment charges on the Company’s long-lived assets. For the three and nine months ended September 30, 2024, the Company recorded impairment charges related to certain of our domestic facilities. For the nine months ended September 30, 2023, the Company recorded an insignificant impairment to building leases that were vacated during the year.
(5) Relates to the sale of the intellectual property and know-how related to the Company’s Oncotype DX Genomic Prostate Score® (“GPS”) test to MDxHealth SA (“MDxHealth”) in August 2022 and the subsequent Second Amendment to the Asset Purchase Agreement related to the sale in August 2023. For the three and nine months ended September 30, 2024, this represents the remeasurement of the associated contingent consideration. For the three and nine months ended September 30, 2023, this represents a gain of
(6) Includes costs associated with the Company's business transformation program intended to consolidate operations, achieve targeted cost reductions, and focus resources on its key strategic priorities. For the three and nine months ended September 30, 2024, this primarily includes severance costs and accelerated stock-based compensation expense related to the closure of domestic facilities and related consulting services. For the nine months ended September 30, 2023, this primarily includes accelerated stock-based compensation expense and severance costs related to the Company's international workforce.
(7) The Company terminated its license and sponsored research agreements with The Translational Genomics Research Institute related to its Targeted Digital Sequencing technology, which resulted in the recognition of termination related charges in the second quarter of 2024.
(8) The Company reached settlements with counterparties related to the Medicare Date of Service Rule Investigation and the Federal Anti-Kickback Statute and False Claims Act qui tam lawsuit.
(9) Represents Cost of sales (exclusive of amortization of acquired intangible assets) from the Company's condensed consolidated statement of operations.
EXACT SCIENCES CORPORATION Selected Unaudited Financial Information Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flow (Amounts in thousands) |
||||||||||||||||
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash provided by operating activities |
|
$ |
138,719 |
|
|
$ |
24,361 |
|
|
$ |
163,473 |
|
|
$ |
86,570 |
|
Net cash provided by (used in) investing activities |
|
|
(81,716 |
) |
|
|
(32,969 |
) |
|
|
(400,283 |
) |
|
|
116,446 |
|
Net cash provided by (used in) financing activities |
|
|
(226 |
) |
|
|
92 |
|
|
|
221,375 |
|
|
|
149,729 |
|
Effects of exchange rate changes on cash and cash equivalents |
|
|
1,873 |
|
|
|
(1,235 |
) |
|
|
427 |
|
|
|
(626 |
) |
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
58,650 |
|
|
|
(9,751 |
) |
|
|
(15,008 |
) |
|
|
352,119 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
536,017 |
|
|
|
604,660 |
|
|
|
609,675 |
|
|
|
242,790 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
594,667 |
|
|
$ |
594,909 |
|
|
$ |
594,667 |
|
|
$ |
594,909 |
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of free cash flow: |
|
|
|
|
|
|
|
|
||||||||
Net cash provided by operating activities |
|
$ |
138,719 |
|
|
$ |
24,361 |
|
|
$ |
163,473 |
|
|
$ |
86,570 |
|
Purchases of property, plant and equipment |
|
|
(26,158 |
) |
|
|
(25,187 |
) |
|
|
(99,673 |
) |
|
|
(89,268 |
) |
Free cash flow |
|
$ |
112,561 |
|
|
$ |
(826 |
) |
|
$ |
63,800 |
|
|
$ |
(2,698 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241105076239/en/
Investor Contact:
Erik Holznecht
Exact Sciences Corp.
investorrelations@exactsciences.com
608-535-8659
Media Contact:
Steph Spanos
Exact Sciences Corp.
sspanos@exactsciences.com
608-556-4380
Source: Exact Sciences Corp.
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