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Sep 30, 2022

Exact Sciences Q3 2022 Earnings Report

Reported record revenue, raised full-year guidance, and accelerated path to profitability.

Key Takeaways

Exact Sciences Corp. generated revenue of $523 million for the third quarter ended September 30, 2022, compared to $456 million for the same period of 2021. The company raised full-year revenue guidance and lowered operating expense guidance. Adjusted EBITDA profitability is now expected in the third quarter of 2023.

Total third quarter revenue, excluding COVID-19 testing, increased 20 percent compared to the third quarter of 2021, with Screening revenue of $361 million and Precision Oncology revenue of $151 million

Full-year revenue guidance raised by $33 million and operating expense guidance lowered by $113 million at the midpoints

Adjusted EBITDA profitability now expected in the third quarter of 2023, ahead of previous target of 2024

Total revenue was $523.1 million, an increase of 15 percent, or 20 percent excluding COVID-19 testing

Total Revenue
$523M
Previous year: $456M
+14.6%
EPS
-$0.84
Previous year: -$0.79
+6.3%
Gross Margin
68%
Previous year: 70%
-2.9%
Non-GAAP Gross Margin
72%
Previous year: 75%
-4.0%
Adjusted EBITDA
-$13M
Previous year: -$16.3M
-20.0%
Gross Profit
$354M
Previous year: $319M
+10.8%
Cash and Equivalents
$235M
Previous year: $274M
-14.1%
Free Cash Flow
-$85.6M
Previous year: -$79.6M
+7.4%
Total Assets
$6.31B
Previous year: $6.65B
-5.2%

Exact Sciences

Exact Sciences

Exact Sciences Revenue by Segment

Forward Guidance

The company anticipates revenue of $2,025-$2,042 million during 2022, assuming Screening revenue of $1,375-$1,382 million, Precision Oncology revenue of $595-$600 million, and COVID-19 testing revenue of $55-$60 million.

Positive Outlook

  • Screening revenue of $1,375-$1,382 million
  • Precision Oncology revenue of $595-$600 million
  • COVID-19 testing revenue of $55-$60 million
  • Full-year revenue guidance raised from the previously expected range of $1,980-$2,022 million
  • Screening revenue of $1,350-$1,372 million

Challenges Ahead

  • uncertainties associated with the coronavirus (COVID-19) pandemic, including its possible effects on our operations, including our supply chain and clinical studies, and the demand for our products and services
  • our ability to efficiently and flexibly manage our business amid uncertainties related to COVID-19
  • our ability to meet our payment obligations under our indebtedness
  • our ability to raise additional capital in amounts and on terms satisfactory to us, if at all
  • our ability to successfully and profitably market our products and services

Revenue & Expenses

Visualization of income flow from segment revenue to net income