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Exact Sciences Announces Third-Quarter 2024 Results

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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.

Positive
  • 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
Negative
  • 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 $709 million, driven by strong Screening revenue of $545 million (15% growth). The company achieved significant operational efficiency with adjusted EBITDA of $99 million and margin improvement of 500 basis points to 14%.

However, the reduced full-year guidance is concerning - total revenue forecast cut by $80-100 million and adjusted EBITDA lowered by $25-35 million. This suggests execution challenges despite strong product developments. The $1.02 billion cash position provides stability, but continued net losses ($38 million in Q3) need monitoring.

The FDA approval of Cologuard Plus represents a significant advancement, with improved accuracy and 30% reduction in false positives compared to the original test. The blood-based screening test's performance (88% sensitivity for cancer, 31% for precancerous lesions) shows promise for expanding screening options.

The multi-cancer early detection test data (55% sensitivity in cancers without standard screening, 64% in aggressive cancers) demonstrates potential, though more validation may be needed. The upcoming Oncodetect publication could open opportunities in the underserved residual disease monitoring market, where only 5% of eligible patients currently receive testing.

Delivered record revenue and cash flow, improved adjusted EBITDA, advanced pipeline

Third quarter highlights

  • Total third quarter revenue of $709 million, an increase of 13% on a reported and core revenue basis, including Screening revenue of $545 million and Precision Oncology revenue of $164 million
  • Net loss was $38 million, adjusted EBITDA was $99 million, and adjusted EBITDA margin increased 500 basis points to 14%
  • Operating cash flow was $139 million with free cash flow of $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 and 31% for advanced precancerous lesions at 90% specificity
  • Secured acceptance from a peer reviewed journal for the first publication on the Oncodetect™ test, its molecular residual disease and recurrence monitoring test

MADISON, Wis.--(BUSINESS WIRE)-- Exact Sciences Corp. (Nasdaq: EXAS), a leading provider of cancer screening and diagnostic tests, today announced that the Company generated revenue of $709 million for the third quarter ended September 30, 2024, compared to $628 million for the same period of 2023.

“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 $709 million, an increase of 13 percent on a reported and core revenue basis
  • Screening revenue was $545 million, an increase of 15 percent
  • Precision Oncology revenue was $164 million, an increase of 5 percent on a reported and core revenue basis
  • 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 $3 million compared to $72 million, which included a gain related to the sale of the Oncotype DX Genomic Prostate Score Test in third-quarter 2023
  • Net loss was $38 million, or $0.21 per basic and diluted share, a reduction of $39 million, or $0.21 per basic and diluted share
  • Adjusted EBITDA was $99 million an increase of $42 million, and adjusted EBITDA margin was 14 percent, an increase of 500 basis points
  • Operating cash flow was $139 million and free cash flow was $113 million, increases of $114 million and $113 million, respectively
  • Cash, cash equivalents, and marketable securities were $1.02 billion at the end of the quarter

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 88% for colorectal cancer and 31% for advanced precancerous lesions at 90% specificity. These results show the potential of the Company's novel marker panel to detect advanced precancerous lesions and cancers at an attractive cost profile. This innovation is expected to provide average-risk patients with another screening option, reinforcing the power of the Company’s unique scientific approach.

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 U.S. who could benefit from residual and recurrent disease testing, the need is urgent - yet less than 5% are currently receiving the vital testing today. This recognition highlights the scientific rigor behind the product and positions the Oncodetect test as a leading solution for monitoring residual disease and cancer recurrence.

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 55% in cancers without standard-of-care screening options (excluding lung), and 64% in the six most aggressive cancers with the shortest survival rates, with a specificity of 98.5%. These findings highlight the potential clinical value of using multiple biomarkers to detect various cancer types, including the most aggressive and those without recommended screening options.

2024 outlook

The Company has updated its full-year 2024 revenue and adjusted EBITDA guidance:

 

Prior guidance

 

November 5 update

Total revenue

$2.810 - $2.850 billion

 

$2.730 - $2.750 billion

Screening

$2.155 - $2.175 billion

 

$2.080 - $2.095 billion

Precision Oncology

$655 - $675 million

 

$650 - $655 million

Adjusted EBITDA

$335 - $355 million

 

$310 - $320 million

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 U.S. GAAP, the Company provides non-GAAP measures that it determines to be useful in evaluating its operating performance and liquidity. The Company presents core revenue, non-GAAP gross margin, non-GAAP gross profit, adjusted EBITDA, adjusted EBITDA margin, adjusted cost of sales (exclusive of amortization of acquired intangible assets), adjusted research and development expenses, adjusted sales and marketing expenses, adjusted general and administrative expenses, adjusted amortization of acquired intangible assets, adjusted impairment of long-lived assets, adjusted other operating income (loss), adjusted operating income (loss), and free cash flow. Core revenue is calculated to adjust for recent acquisitions and divestitures, COVID-19 testing revenue and foreign currency exchange rate fluctuations. To exclude the impact of change in foreign currency exchange rates from the prior period under comparison, the Company converts the current period non-U.S. dollar denominated revenue using the prior year comparative period exchange rates. The Company defines non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding amortization of acquired intangible assets. The amortization of acquisition-related intangible assets used in the calculation of non-GAAP gross profit and non-GAAP gross margin pertain only to the amortization associated with developed technology acquired and recorded through purchase accounting transactions. The amortization of these intangible assets will recur in future periods until such intangible assets have been fully amortized. Adjusted EBITDA, adjusted cost of sales (exclusive of amortization of acquired intangible assets), adjusted research and development expenses, adjusted sales and marketing expenses, adjusted general and administrative expenses, adjusted amortization of acquired intangible assets, adjusted impairment of long-lived assets, adjusted other operating income (loss), and adjusted operating income (loss) consist of the applicable GAAP measure after adjustment for those items shown in the reconciliations below. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by total revenue. The Company considers free cash flow to be a liquidity measure and is calculated as net cash used in or provided by operating activities, reduced by purchases of property, plant and equipment. Management believes that presentation of non-GAAP financial measures provides useful supplemental information to investors and facilitates the analysis of the Company’s core operating results and comparison of operating results across reporting periods. The Company uses this non-GAAP financial information to establish budgets, manage the Company’s business, and set incentive and compensation arrangements. The Company believes free cash flow provides useful information to management and investors since it measures our ability to generate cash from business operations. Non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental information purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with U.S. GAAP. For example, non-GAAP gross margin and non-GAAP gross profit exclude the amortization of acquired intangible assets although such measures include the revenue associated with the acquisitions. Additionally, adjusted EBITDA and other adjusted operating result metrics exclude a number of expense items that are included in net loss. As a result, positive adjusted EBITDA or adjusted operating income may be achieved while a significant net loss persists. For a reconciliation of these non-GAAP measures to GAAP, see below “Reconciliation of Core Revenue”, “Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliations”, “Adjusted EBITDA Reconciliations”, “Reconciliation of U.S. GAAP to Non-GAAP Measures”, and “Condensed Consolidated Statements of Cash Flows and Reconciliation of Free Cash Flow”. The Company presents certain forward-looking statements about the Company’s future financial performance that include non-GAAP measures. These non-GAAP measures include adjustments like stock-based compensation, acquisition and integration costs including gains and losses on contingent consideration, and other significant charges or gains that are difficult to predict for future periods because the nature of the adjustments pertain to events that have not yet occurred. Additionally management does not forecast many of the excluded items for internal use. Information reconciling forward-looking non-GAAP measures to U.S. GAAP measures is therefore not available without unreasonable effort, and is not provided. The occurrence, timing, and amount of any of the items excluded from GAAP to calculate non-GAAP could significantly impact the Company’s GAAP results.

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 U.S. adults ages 45 or older who are at average risk for the disease.

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 U.S. Preventive Services Task Force (2021). Since its launch in 2014, the Cologuard test has been used to screen for CRC 17 million times.

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 30%, to help minimize unnecessary follow-up colonoscopies. Both tests demonstrate Exact Sciences’ commitment to improving CRC screening access and outcomes. Exact Sciences expects to launch the Cologuard Plus test with Medicare coverage and guideline inclusion in 2025.

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 Marshfield, Wisconsin, PreventionGenetics is a CLIA and ISO 15189:2012 accredited laboratory. PreventionGenetics delivers clinical genetic testing of the highest quality at fair prices with exemplary service to people around the world. PreventionGenetics has 25 PhD geneticists on staff and provides tests for nearly all clinically relevant genes including the powerful and comprehensive germline whole genome sequencing test, PGnome® and whole exome sequencing test, PGxome®. PreventionGenetics was acquired by Exact Sciences in December 2021.

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 U.S.; the amount and nature of competition for our products and services; the effects of any judicial, executive or legislative action affecting us or the healthcare system; recommendations, guidelines and quality metrics issued by various organizations regarding cancer screening or our products and services; our ability to successfully develop and commercialize new products and services and assess potential market opportunities; our ability to effectively enter into and utilize strategic partnerships and acquisitions; our success establishing and maintaining collaborative, licensing and supplier arrangements; our ability to obtain and maintain regulatory approvals and comply with applicable regulations; our ability to protect and enforce our intellectual property; the results of our validation studies and clinical trials, including the risks that the results of future studies and trials may differ materially from the results of previously completed studies and trials; our ability to manage an international business and our expectations regarding our international expansion and opportunities; our ability to raise the capital necessary to support our operations or meet our payment obligations under our indebtedness; the potential effects of changing macroeconomic conditions, including the effects of inflation, interest rate and foreign currency exchange rate fluctuations, and geopolitical conflict; the possibility that the anticipated benefits from our business acquisitions will not be realized in full or at all or may take longer to realize than expected; the possibility that costs or difficulties related to the integration of acquired businesses’ operations or the divestiture of business operations will be greater than expected and the possibility that integration or divestiture efforts will disrupt our business and strain management time and resources; the outcome of any litigation, government investigations, enforcement actions or other legal proceedings; and our ability to retain and hire key personnel. The risks included above are not exhaustive. Other important risks and uncertainties are described in the Risk Factors sections of our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, and in our other reports filed with the Securities and Exchange Commission. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

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,
2024

 

December 31,
2023

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
Impact (2)

 

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
Impact (2)

 

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-U.S. dollar denominated revenue using the prior year comparative period exchange rates.

(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 U.S. GAAP to Non-GAAP Measures section for endnote descriptions.

EXACT SCIENCES CORPORATION

Selected Unaudited Financial Information

Reconciliation of U.S. GAAP to Non-GAAP Measures

(Amounts in thousands)

 

 

 

Three Months Ended September 30, 2024

 

 

Cost of
Sales (9)

 

Research &
Development
Expenses

 

Sales &
Marketing
Expenses

 

General &
Administrative
Expenses

 

Amortization
of acquired
intangible
assets

 

Impairment
of Long-
Lived
Assets

 

Other
Operating
Income

 

Income
(Loss) from
Operations

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
Sales (9)

 

Research &
Development
Expenses

 

Sales &
Marketing
Expenses

 

General &
Administrative
Expenses

 

Amortization
of acquired
intangible
assets

 

Impairment
of Long-
Lived
Assets

 

Other
Operating
Income

 

Income
(Loss) from
Operations

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 U.S. GAAP to Non-GAAP Measures

(Amounts in thousands)

 

 

 

Three Months Ended September 30, 2023

 

 

Cost of
Sales (9)

 

Research &
Development
Expenses

 

Sales &
Marketing
Expenses

 

General &
Administrative
Expenses

 

Amortization
of acquired
intangible
assets

 

Impairment
of Long-
Lived
Assets

 

Other
Operating
Income

 

Income
(Loss) from
Operations

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
Sales (9)

 

Research &
Development
Expenses

 

Sales &
Marketing
Expenses

 

General &
Administrative
Expenses

 

Amortization
of acquired
intangible
assets

 

Impairment
of Long-
Lived
Assets

 

Other
Operating
Income

 

Income
(Loss) from
Operations

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 $10.3 million and $10.3 million for the nine months ended September 30, 2024 and September 30, 2023, respectively, from the settlement of convertible notes. The gains represent the difference between (i) the fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of the exchange.

(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 $5.3 million and a gain of $2.3 million for the three and nine months ended September 30, 2024, respectively. The remeasurement of the contingent consideration liabilities resulted in a gain of $8.4 million and $13.1 million for the three and nine months ended September 30, 2023, respectively. The Company also incurred severance costs and professional service fees which were not significant for the three and nine months ended September 30, 2024 and 2023. The majority of the professional service fees relate to the integration of information technology systems.

(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 $3.1 million from additional cash and equity consideration received, a $68.9 million contingent consideration gain, and $1.5 million in legal and professional service fees.

(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

)

 

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.

FAQ

What was Exact Sciences (EXAS) revenue in Q3 2024?

Exact Sciences reported total revenue of $709 million in Q3 2024, representing a 13% increase year-over-year.

Did Exact Sciences (EXAS) make a profit in Q3 2024?

No, Exact Sciences reported a net loss of $38 million, or $0.21 per basic and diluted share in Q3 2024.

What is the new 2024 revenue guidance for Exact Sciences (EXAS)?

Exact Sciences updated its 2024 total revenue guidance to $2.730-$2.750 billion, down from the previous guidance of $2.810-$2.850 billion.

What was the performance of Exact Sciences (EXAS) Cologuard Plus test in Q3 2024?

Exact Sciences received FDA approval for Cologuard Plus test, which shows improved sensitivity and reduces false positives by more than 30% compared to the original Cologuard test.

Exact Sciences Corp

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