The following is a summary of the Exact Sciences Corporation (EXAS) Q3 2024 Earnings Call Transcript:
Financial Performance:
Total revenue reached $709 million, up 13% YoY.
Adjusted EBITDA rose 75% YoY to $99 million.
Business Progress:
FDA approved Cologuard Plus, launching Q2 2025.
Oncodetect to launch with reimbursement in colon cancer next year.
Opportunity:
Cologuard Plus launch in Q2 2025 could redefine screening standards.
1.6 million eligible for Cologuard rescreening in 2023, growing to 2 million in 2025.
Risk:
Hurricanes disrupted Cologuard orders in Q3, forecasted impact in Q4.
Slower ramp-up from new sales representatives affected performance.
Financial Performance:
Exact Sciences reported a total revenue of $709 million, growing 13% year-over-year.
Adjusted EBITDA increased by 75% year-over-year to $99 million.
Record free cash flow of $113 million, an improvement of the same amount year-over-year.
Screening revenue grew 15% to $545 million, mainly driven by Cologuard volume.
Precision Oncology revenue grew 5% to $164 million.
Business Progress:
Achieved several advancements including delivering test results to 1.2 million patients.
Received FDA approval for Cologuard Plus, set to launch in Q2 2025.
Showcased data for liquid biopsy colon cancer screening test and multi-cancer screening test at ESMO Congress.
Oncodetect publication accepted in a peer-reviewed journal.
Intends to launch Oncodetect with reimbursement in colon cancer next year and expand into other solid tumor types.
Opportunities:
The launch of Cologuard Plus in Q2 2025, offering improved sensitivity and specificity, which could redefine screening standards and enhance provider adoption.
Continued growth from the rescreening cycle, with 1.6 million people eligible for their next Cologuard test this year, projected to grow to 2 million in 2025.
Expansion of care gap screening programs, especially significant given the high number of unwarranted screenings; increasing ExactNexus digital outreach capabilities.
Risks:
Disruption faced from Hurricanes Helene and Milton impacting Cologuard orders and results in Q3, and expected in Q4.
Slower ramp-up than expected from new sales representatives affecting recent commercial execution.
Expected challenges related to transitioning the Precision Oncology portfolio onto the ExactNexus platform.
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