Exact Sciences (EXAS) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $699 million, up 12% year-over-year, with core revenue growth of 13% and record Cologuard and Oncotype DX test volumes.

• Screened over 1 million people with Cologuard in a single quarter and tested a record number of cancer patients globally with Oncotype DX.

• Advanced pipeline with progress on Cologuard Plus, OncoDetect MRD, blood-based colon cancer screening, and multi-cancer screening initiatives.

• Secured exclusive license to TwinStrand's sequencing technologies, strengthening the IP portfolio.

• Maintained full-year 2024 revenue guidance and raised adjusted EBITDA guidance midpoint by $8 million.

Financial highlights

• Q2 2024 revenue reached $699 million, up 12% year-over-year; screening revenue grew 15% to $532 million, precision oncology revenue rose 7% to $168 million.

• Adjusted EBITDA hit a record $110 million (16% margin), up 65% year-over-year, with margin expanding 500 basis points.

• Free cash flow was $71 million, up from $66 million year-over-year; operating cash flow reached $107 million.

• Cash, cash equivalents, and marketable securities totaled $947 million at quarter end.

• Net loss narrowed to $15.8 million ($0.09 per share), improved from $81.0 million ($0.45 per share) year-over-year.

Outlook and guidance

• Maintained full-year 2024 revenue guidance of $2.81–$2.85 billion; raised adjusted EBITDA guidance to $335–$355 million.

• Q3 2024 revenue expected at $705–$725 million; screening revenue $545–$555 million, precision oncology $160–$170 million.

• Screening revenue expected to be 54% of full-year revenue, consistent with historical averages.

• Ongoing investment in R&D for pipeline products, including Cologuard Plus, MRD, and multi-cancer screening.

• Cash, cash equivalents, and marketable securities expected to fund operations for at least the next twelve months.