•
Mar 31, 2023

Exact Sciences Q1 2023 Earnings Report

Reported record results, raised full-year guidance, and accelerated path to positive free cash flow.

Key Takeaways

Exact Sciences Corp. announced strong first-quarter results with a 24% increase in total revenue to $602.5 million. The company raised its full-year revenue guidance by $110 million at the midpoint and expects to turn free cash flow positive during 2023, ahead of the previous target of 2024.

Total first quarter revenue reached $602 million, a 24% increase year-over-year.

Core revenue increased by 33% to $598 million.

Full-year 2023 revenue guidance was raised by $110 million at the midpoint.

The company anticipates achieving positive free cash flow during 2023, earlier than the previously expected 2024 target.

Total Revenue
$602M
Previous year: $487M
+23.8%
EPS
-$0.42
Previous year: -$1.04
-59.6%
Gross Margin
71%
Previous year: 68%
+4.4%
Non-GAAP Gross Margin
74%
Previous year: 72%
+2.8%
Adjusted EBITDA
$45.9M
Previous year: -$89.8M
-151.1%
Gross Profit
$425M
Previous year: $329M
+29.0%
Cash and Equivalents
$421M
Previous year: $190M
+122.0%
Free Cash Flow
-$67.6M
Previous year: -$207M
-67.4%
Total Assets
$6.3B
Previous year: $6.49B
-2.9%

Exact Sciences

Exact Sciences

Exact Sciences Revenue by Segment

Forward Guidance

The company anticipates revenue of $2.380-$2.420 billion during 2023.

Positive Outlook

  • Screening revenue of $1.770-$1.795 billion
  • Precision Oncology revenue of $605-$620 million
  • COVID-19 testing revenue of $5 million
  • Revenue guidance has been raised from the previously expected range of $2.265-$2.315 billion
  • Screening revenue was previously expected to be $1.660-$1.690 billion

Challenges Ahead

  • Precision Oncology revenue was previously expected to be $600-$620 million
  • COVID-19 testing revenue was previously expected to be $5 million
  • Potential effects of changing macroeconomic conditions, including the effects of inflation and interest rate and foreign currency exchange rate fluctuations
  • Uncertainties related to the coronavirus (“COVID-19”) pandemic
  • The possibility that the anticipated benefits from business acquisitions will not be realized in full or at all or may take longer to realize than expected

Revenue & Expenses

Visualization of income flow from segment revenue to net income