• Total Revenue: $709 million, up 13% year over year.

• Adjusted EBITDA: $99 million, a 75% increase year over year.

• Free Cash Flow: $113 million, a record and up nearly 60% sequentially.

• Screening Revenue: $545 million, a 15% increase driven by Cologuard volume.

• Precision Oncology Revenue: $162 million, a 5% increase with 28% international growth in Oncotype DX.

• Adjusted EBITDA Margin: Expanded 500 basis points to 14%.

• Cash and Securities: Over $1 billion at the end of the quarter.

• Full Year Revenue Guidance: Between $2.73 billion and $2.75 billion.

• Full Year Screening Revenue Guidance: Between $2.08 billion and $2.095 billion.

• Full Year Precision Oncology Revenue Guidance: Between $650 million and $655 million.

• Adjusted EBITDA Guidance: Between $310 million and $320 million for the full year.

• Warning! GuruFocus has detected 5 Warning Sign with EXAS.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Exact Sciences Corp (NASDAQ:EXAS) achieved a 13% year-over-year revenue growth, reaching $709 million for the third quarter.

• The company expanded its adjusted EBITDA by 75% year over year to $99 million, highlighting strong operational execution.

• Exact Sciences Corp (NASDAQ:EXAS) received FDA approval for Cologuard Plus, which sets a new performance standard with 95% cancer sensitivity and 94% specificity.

• The company generated a record $113 million in free cash flow, marking a significant improvement from the previous year.

• Exact Sciences Corp (NASDAQ:EXAS) is seeing positive contributions from new sales representatives, with expectations for increased returns in the near and long term.

Negative Points

• The growth in Cologuard testing frequency among the expanding provider base was disappointing, impacting third-quarter performance.

• Hurricanes Helene and Milton negatively affected Cologuard orders and results, particularly impacting the fourth quarter due to the 30-day timing between order and test completion.

• The transition of the Precision Oncology portfolio onto the ExactNexus platform faced challenges, resulting in a one-time negative impact on revenue.

• The company experienced slower-than-expected ramp-up from new sales representatives, affecting the anticipated growth rate.

• Exact Sciences Corp (NASDAQ:EXAS) revised its full-year revenue guidance downward due to lower-than-expected demand growth in primary care offices.

Q & A Highlights

Q: Can you explain what changed in the second half outlook compared to 90 days ago, and how factors like care gap, hurricane disruptions, and new rep ramp-up contributed? A: Kevin Conroy, CEO, acknowledged the long-term trend for Cologuard remains intact but took accountability for the lessened performance. He noted that Cologuard is promotionally responsive, especially among newer healthcare providers. Aaron Bloomer, CFO, added that while there was progress in re-screens and care gap programs, the growth in Cologuard orders was below historical rates due to hurricanes and slower-than-expected ramp-up of new sales reps.