Exact Sciences Announces Third-Quarter 2023 Results

On November 1, 2023 Exact Sciences Corp. (Nasdaq: EXAS), a leading provider of cancer screening and diagnostic tests, reported that the company generated revenue of $628.3 million for the third quarter ended September 30, 2023, compared to $523.1 million for the same period of 2022 (Press release, Exact Sciences, NOV 1, 2023, View Source [SID1234636633]).

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"Exact Sciences’ third-quarter results reflect our unwavering dedication to improving cancer care on a global scale," said Kevin Conroy, chairman and CEO. "Our team delivered answers to more patients than ever before, giving us confidence to raise our full-year revenue and adjusted EBITDA guidance. To achieve our mission to eradicate cancer, we’ll continue to focus on making our current and future tests the top choice for patients and healthcare professionals globally."

Third -quarter 2023 financial results

For the three-month period ended September 30, 2023, as compared to the same period of 2022 (where applicable):

Total revenue was $628.3 million, an increase of 20 percent
Core revenue was $624.8 million, an increase of 23 percent
Screening revenue was $472.0 million, an increase of 31 percent
Precision Oncology revenue was $156.3 million, an increase of 3 percent, or 5 percent on a core revenue basis
Other operating income (loss) was $72.0 million, which includes a gain related to the sale of the Oncotype DX Genomic Prostate Score Test
Gross margin including amortization of acquired intangible assets was 70 percent, and non-GAAP gross margin excluding amortization of acquired intangible assets was 73 percent
Net income was $0.8 million, or $0.00 per basic and diluted share, compared to a net loss of $148.8 million, or $(0.84) per basic and diluted share
EBITDA was $61.2 million and adjusted EBITDA was $56.3 million
Cash provided by operating activities was $24.4 million and free cash flow was $(0.8) million, including a one-time payment of $32.5 million for a previously disclosed and reserved legal matter
Cash, cash equivalents, and marketable securities were $734.4 million 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.

2023 outlook

The company anticipates revenue of $2.476-$2.486 billion during 2023, assuming:

Screening revenue of $1.848-$1.853 billion,
Precision Oncology revenue of $622-$627 million, and
COVID-19 testing revenue of $6 million.
Revenue guidance has been raised from the previously expected range of $2.441-$2.466 billion, which assumed:

Screening revenue of $1.820-$1.835 billion,
Precision Oncology revenue of $615-$625 million, and
COVID-19 testing revenue of $6 million.
Third -quarter 2023 conference call & webcast
Company management will host a conference call and webcast on Wednesday, November 1, 2023, at 5 p.m. ET to discuss third-quarter 2023 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.

An archive of the webcast will be available at exactsciences.com. A replay of the conference call will be available by calling 800-770-2030 domestically or +1-647-362-9199 internationally. The access code for the replay of the call is 4437608. The webcast, conference call, and replay are open to all interested parties.