Fourth quarter and 2024 highlights
- Total fourth quarter revenue of $713 million, an increase of
10%, or 11% on a core revenue basis, with Screening revenue of $553
million and Precision Oncology revenue of $161 million
- Total 2024 revenue of $2.76 billion, an increase of 10%, or 11%
on a core revenue basis, with Screening revenue of $2.10 billion
and Precision Oncology revenue of $655 million
- Plans to launch three new cancer tests in 2025: Cologuard
Plus™, next-generation colorectal cancer screening test,
Oncodetect™, molecular residual disease test, and Cancerguard™,
multi-cancer screening test
Exact Sciences Corp. (Nasdaq: EXAS), a leading provider of
cancer screening and diagnostic tests, today announced that the
Company generated revenue of $713 million for the fourth quarter of
2024 and $2.76 billion for the full year of 2024, both ended
December 31, 2024.
“The Exact Sciences team is off to a good start in 2025,
building on the momentum we created in the fourth quarter,” said
Kevin Conroy, Chairman and CEO of Exact Sciences. “This year is on
track to be the most productive in company history, with continued
execution from our core business and the launch of three innovative
cancer tests. This will power years of growth and profitability,
deepen our leadership in diagnostics, and help eradicate cancer by
preventing it, detecting it earlier, and guiding personalized
treatment."
Fourth quarter 2024 financial results
For the three-month period ended December 31, 2024, as compared
to the same period of 2023 (where applicable):
- Total revenue was $713 million, an increase of 10%, or 11% on a
core revenue basis
- Screening revenue was $553 million, an increase of 14%
- Precision Oncology revenue was $161 million, an increase of
0.4%, or 2% on a core revenue basis
- Gross margin was 69% and adjusted gross margin was 72%
- Impairment charges were $838 million, primarily reflecting
changes in external factors related to the in-process research and
development asset acquired as part of the Thrive acquisition
- Net loss was $865 million, or $4.67 per share, compared to a
net loss of $49.8 million, or $0.27 per share
- Adjusted EBITDA was $75 million, an increase of $26 million,
and adjusted EBITDA margin was 11%, an increase of nearly 300 basis
points
- Operating cash flow was $47 million and free cash flow was $11
million in the fourth quarter, and full-year 2024 operating cash
flow was $211 million and free cash flow was $75 million
- Cash, cash equivalents, and marketable securities were $1.04
billion 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.
Platform and pipeline advancements
In the fourth quarter, Exact Sciences secured favorable Medicare
pricing for the Cologuard Plus test, its next-generation colon
cancer screening test. The Cologuard Plus test detects cancers and
precancerous polyps with even greater sensitivity than the
Cologuard test while reducing false positives by nearly 40 percent.
This advancement enhances the Company’s screening capabilities and
reinforces its commitment to delivering high-quality, non-invasive
options for patients. The Company remains on-track to launch
Cologuard Plus with Medicare coverage and guideline inclusion in
the second quarter of 2025.
In the fourth quarter, the Company shared new evidence from the
ASCEND 2 study supporting Cancerguard, its blood-based multi-cancer
screening test. The data showed at a 98.5% specificity, overall
sensitivity excluding breast and prostate cancer was 62.3%.
Sensitivity was 67.1% for the six most aggressive cancers
(pancreas, esophagus, liver, lung, stomach, and ovary). This
highlights the potential of a multi-omic test to improve early
cancer detection. Additionally, Exact Sciences presented new
modeling data that estimated adding multi-cancer screening to
standard-of-care screening could reduce cancer mortality by 17%
over 10 years. These analyses will support the planned launch of
Cancerguard™ EX, Exact Sciences’ MCS laboratory-developed test, in
the second half of 2025. Exact Sciences will bring this test to
patients through its large screening and precision oncology
commercial organization and unique ExactNexus™ technology
platform.
In January 2025, Exact Sciences presented data in the Journal of
Surgical Oncology demonstrating the clinical strength of the
Oncodetect test, its molecular residual disease and recurrence
monitoring test. Results from a well-designed study of monitored
colon cancer patients found those with a positive Oncodetect test
were 50 times more likely to recur than those with a negative
result. The study further showed Oncodetect identifies residual
disease up to 10 months earlier than imaging, the current standard
of care. Findings from a second clinical validation study also
demonstrated promising performance of Oncodetect as an MRD test.
The Company recently submitted results for reimbursement in
colorectal cancer and expects to launch the Oncodetect test in the
second quarter of 2025.
2025 outlook
The Company announces its full-year 2025 revenue and adjusted
EBITDA guidance:
2024 results
2025 outlook
Total revenue
$2.759 billion
$3.025 - $3.085 billion
Screening
$2.104 billion
$2.350 - $2.390 billion
Precision Oncology
$655 million
$675 - $695 million
Adjusted EBITDA
$323 million
$410 - $440 million
Non-GAAP disclosure
In addition to the Company's financial results determined in
accordance with U.S. GAAP, the Company provides non-GAAP measures
that it determines to be useful in evaluating its operating
performance and liquidity. The Company presents the following
non-GAAP measures:
Core revenue — Core revenue is calculated to adjust for recent
acquisitions and divestitures, COVID-19 testing revenue and foreign
currency exchange rate fluctuations. Revenue from recent
acquisitions is adjusted for the 12 months following acquisition
when the periods are not comparable. To exclude the impact of
change in foreign currency exchange rates from the prior period
under comparison, the Company converts the current period non-U.S.
dollar denominated revenue using the prior year comparative period
exchange rates.
Adjusted EBITDA and adjusted EBITDA margin — The Company defines
adjusted EBITDA as net loss adjusted for interest expense, income
tax expense or benefit, depreciation expense, amortization of
acquired intangible assets, investment income or loss, and certain
other items which include significant non-cash items and other
charges or benefits resulting from transactions or events that are
highly variable, significant in size, and that we do not believe
are indicative of ongoing or future business operations. These
items are discussed in more detail below in the tables captioned
“U.S. GAAP to Non-GAAP Reconciliation”. Adjusted EBITDA margin is
calculated as adjusted EBITDA divided by total revenue.
Adjusted gross profit, adjusted research and development
expenses, adjusted sales and marketing expenses, adjusted general
and administrative expenses, adjusted loss from operations,
adjusted net loss before tax, adjusted income tax expense
(benefit), adjusted net loss, and adjusted earnings per share — The
Company refers to various “adjusted” amounts or measures on an
“adjusted” basis, which exclude the impact of amortization of
intangible assets and certain charges or benefits resulting from
transactions or events that are highly variable, significant in
size, and that we do not believe are indicative of ongoing or
future business operations. These items are described in more
detail below in the tables captioned “U.S. GAAP to Non-GAAP
Reconciliation”. The Company also presents certain of these
adjusted measures as a percentage of revenue including adjusted
gross margin.
Free cash flow — The Company defines free cash flow as net cash
used in or provided by operating activities, reduced by purchases
of property, plant and equipment. Management uses free cash flow as
a liquidity measure.
Management believes that presentation of non-GAAP financial
measures provides supplemental information useful to investors in
understanding our underlying operating results and trends. Non-GAAP
financial information, when taken collectively, may be helpful to
investors because it provides consistency and comparability of the
Company's operating results across reporting periods. Management
uses this non-GAAP financial information to establish budgets,
manage the Company's business, and set incentive and compensation
arrangements. Free cash flow provides useful information to
management and investors since it measures our ability to generate
cash from business operations. Non-GAAP financial information is
presented for supplemental information purposes only, has
limitations as an analytical tool and should not be considered in
isolation or as a substitute for financial information presented in
accordance with U.S. GAAP. For example, adjusted gross margin and
adjusted gross profit exclude the amortization of acquired
intangible assets although such measures include the revenue
associated with the acquisitions. Additionally, adjusted EBITDA and
other adjusted operating result metrics exclude a number of expense
items that are included in net loss. As a result, positive adjusted
EBITDA, adjusted operating income, or adjusted earnings per share
may be achieved while a significant net loss persists. For more
information on these non-GAAP financial measures, see the tables
captioned “U.S. GAAP to Non-GAAP Reconciliation.” The Company
presents certain forward-looking statements about the Company's
future financial performance that include non-GAAP measures. These
non-GAAP measures include adjustments like stock-based
compensation, acquisition and integration costs including gains and
losses on contingent consideration, and other significant charges
or gains that are difficult to predict for future periods because
the nature of the adjustments pertain to events that have not yet
occurred. Additionally, management does not forecast many of the
excluded items for internal use. Information reconciling
forward-looking non-GAAP measures to U.S. GAAP measures is
therefore not available without unreasonable effort and is not
provided. The occurrence, timing, and amount of any of the items
excluded from GAAP to calculate non-GAAP could significantly impact
the Company's GAAP results.
Fourth quarter conference call & webcast
Company management will host a conference call and webcast on
Wednesday, February 19, 2025, at 5 p.m. ET to discuss fourth
quarter and full year 2024 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. A replay of
the webcast will be available at exactsciences.com. The webcast,
conference call, and replay are open to all interested parties.
About the Cologuard and Cologuard Plus tests
Developed in collaboration with Mayo Clinic, the Cologuard and
Cologuard Plus tests are non-invasive colorectal cancer (CRC)
screening options for the 110 million U.S. adults ages 45 or older
who are at average risk for the disease.
The Cologuard test revolutionized CRC screening by detecting
specific DNA markers and blood associated with cancer and precancer
in stool, allowing patients to use the test at home without special
preparation or time off. It is covered by Medicare and included in
national screening guidelines from both the American Cancer Society
(2018) and the U.S. Preventive Services Task Force (2021). Since
its launch in 2014, the Cologuard test has been used to screen for
CRC 18 million times.
Building on this success, the FDA-approved Cologuard Plus test
raises the performance bar even further and features novel
biomarkers, improved laboratory processes, and enhanced sample
stability. The Cologuard Plus test is expected to reduce false
positives by nearly 40%, to help minimize unnecessary follow-up
colonoscopies. Both tests demonstrate Exact Sciences’ commitment to
improving CRC screening access and outcomes. Exact Sciences expects
to launch the Cologuard Plus test with Medicare coverage and
guideline inclusion in 2025.
About the Oncodetect test
Molecular residual disease (MRD) refers to the presence of
tumor-specific DNA in the body. These fragments of genetic
information, known as circulating tumor DNA (ctDNA), are shed into
the bloodstream by tumors, and their presence may indicate that
cancer is present . Exact Sciences’ MRD offering leverages our
in-house capabilities in whole exome sequencing to offer a
tumor-informed MRD test for a personalized approach to detecting
and monitoring residual cancer in patients with solid tumors. By
identifying somatic genomic alterations in tumor DNA and detecting
a subset in ctDNA from blood, the Oncodetect test may enable the
detection of ctDNA before, during, and after treatment. This
critical information can guide therapy decisions and monitor for
cancer recurrence.
About the Cancerguard test
The Cancerguard test, currently in development, is designed to
detect multiple cancers in their earliest stages from a single
blood draw. Building upon decades of research, Exact Sciences
intends to harness the additive sensitivity of multiple biomarker
classes to detect more cancers in earlier stages. The Cancerguard
test will utilize a streamlined and standardized imaging-based
diagnostic pathway, which may result in fewer follow-up procedures.
The test is being developed to provide high specificity to help
minimize false positives while detecting multiple cancers,
including those with the biggest toll on human health. These
features describe current development goals. The Cancerguard test
has not been cleared or approved by the U.S. Food and Drug
Administration or any other national regulatory authority. To learn
more, visit http://www.exactsciences.com/cancerguard.
About Exact Sciences’ Precision Oncology portfolio
Exact Sciences’ Precision Oncology portfolio delivers actionable
genomic insights to inform prognosis and cancer treatment after a
diagnosis. In breast cancer, the Oncotype DX Breast Recurrence
Score® test is the only test shown to predict the likelihood of
chemotherapy benefit as well as recurrence in invasive breast
cancer. The Oncotype DX test is recognized as the standard of care
and is included in all major breast cancer treatment guidelines.
The OncoExTra™ test applies comprehensive tumor profiling,
utilizing whole exome and whole transcriptome sequencing, to aid in
therapy selection for patients with advanced, metastatic,
refractory, relapsed, or recurrent cancer. With an extensive panel
of approximately 20,000 genes and 169 introns, the OncoExTra test
is one of the most comprehensive genomic (DNA) and transcriptomic
(RNA) panels available today. Exact Sciences enables patients to
take a more active role in their cancer care and makes it easy for
providers to order tests, interpret results, and personalize
medicine by applying real-world evidence and guideline
recommendations. To learn more, visit
precisiononcology.exactsciences.com.
About PreventionGenetics
Founded in 2004 and located in Marshfield, Wisconsin,
PreventionGenetics is a CLIA and ISO 15189:2012 accredited
laboratory. PreventionGenetics delivers clinical genetic testing of
the highest quality at fair prices with exemplary service to people
around the world. PreventionGenetics has 25 PhD geneticists on
staff and provides tests for nearly all clinically relevant genes
including the powerful and comprehensive germline whole genome
sequencing test, PGnome® and whole exome sequencing test, PGxome®.
PreventionGenetics was acquired by Exact Sciences in December
2021.
About Exact Sciences Corp.
A leading provider of cancer screening and diagnostic tests,
Exact Sciences gives patients and health care professionals the
clarity needed to take life-changing action earlier. Building on
the success of the Cologuard and Oncotype DX tests, Exact Sciences
is investing in its pipeline to develop innovative solutions for
use before, during, and after a cancer diagnosis. For more
information, visit ExactSciences.com, follow Exact Sciences on X
@ExactSciences, or find Exact Sciences on LinkedIn and
Facebook.
Forward-Looking Statements
This news release contains forward-looking statements concerning
our expectations, anticipations, intentions, beliefs or strategies
regarding the future. These forward-looking statements are based on
assumptions that we have made as of the date hereof and are subject
to known and unknown risks and uncertainties that could cause
actual results, conditions and events to differ materially from
those anticipated. Therefore, you should not place undue reliance
on forward-looking statements. Examples of forward-looking
statements include, among others, statements we make regarding
expected future operating results; expectations for development or
launching of new or improved products and services and their impact
on patients; insurance reimbursement potential; our strategies,
commercialization efforts, positioning, competition, resources,
capabilities and expectations for future events or performance; and
the anticipated benefits of our acquisitions, including estimated
synergies and other financial impacts.
Important factors that could cause actual results, conditions
and events to differ materially from those indicated in the
forward-looking statements include, among others, the following:
our ability to successfully develop and commercialize new products
and services and assess potential market opportunities; our ability
to successfully and profitably market our products and services;
the acceptance of our products and services by patients and
healthcare providers; our reliance upon certain suppliers; our
ability to retain and hire key personnel; approval and maintenance
of adequate reimbursement rates for our products and services
within and outside of the U.S.; the amount and nature of
competition for our products and services; the effects of any
judicial, executive or legislative action affecting us or the
healthcare system; changes in government policies, laws,
regulations, and staffing; recommendations, guidelines and quality
metrics issued by various organizations regarding cancer screening
or our products and services; our ability to obtain and maintain
regulatory approvals and comply with applicable regulations; our
ability to protect and enforce our intellectual property; our
success establishing and maintaining collaborative, licensing, and
supplier arrangements; the results of our validation studies and
clinical trials, including the risks that the results of future
studies and trials may differ materially from the results of
previously completed studies and trials; our ability to manage an
international business and our expectations regarding our
international expansion and opportunities; the potential effects of
changing macroeconomic conditions and geopolitical conflict; the
possibility that the anticipated benefits from our business
acquisitions will not be realized in full or at all or may take
longer to realize than expected; the outcome of any potential
litigation or legal proceeding; and our ability to raise the
capital necessary to support our operations or meet our payment
obligations under our indebtedness. The risks included above are
not exhaustive. Other important risks and uncertainties are
described in the Risk Factors sections of our most recent Annual
Report on Form 10-K and any subsequent Quarterly Reports on Form
10-Q, and in our other reports filed with the Securities and
Exchange Commission. We undertake no obligation to publicly update
any forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise.
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Condensed Consolidated
Statements of Operations
(Amounts in thousands, except
per share data)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Revenue
$
713,424
$
646,885
$
2,758,867
$
2,499,766
Cost of sales
220,831
192,964
840,150
737,564
Gross profit
492,593
453,921
1,918,717
1,762,202
Operating expenses:
Research and development
97,709
115,184
431,210
426,927
Sales and marketing
244,529
216,590
894,125
827,805
General and administrative
191,110
196,388
781,825
800,288
Impairment of long-lived and
indefinite-lived assets
838,164
—
869,460
621
Total operating expenses
1,371,512
528,162
2,976,620
2,055,641
Other operating income
2,568
6,400
9,200
78,427
Loss from operations
(876,351
)
(67,841
)
(1,048,703
)
(215,012
)
Other income (expense)
Investment income, net
9,962
25,330
39,558
32,713
Interest expense
(9,577
)
(7,865
)
(27,016
)
(19,447
)
Total other income (expense)
385
17,465
12,542
13,266
Net loss before tax
(875,966
)
(50,376
)
(1,036,161
)
(201,746
)
Income tax benefit (expense)
11,381
610
7,304
(2,403
)
Net loss
$
(864,585
)
$
(49,766
)
$
(1,028,857
)
$
(204,149
)
Net loss per share—basic and diluted
$
(4.67
)
$
(0.27
)
$
(5.59
)
$
(1.13
)
Weighted average common shares
outstanding—basic and diluted
185,312
181,114
184,197
180,144
EXACT SCIENCES
CORPORATION
Selected Unaudited Financial
Information
Condensed Consolidated Balance
Sheets
(Amounts in thousands)
December 31, 2024
December 31, 2023
Assets
Cash and cash equivalents
$
600,889
$
605,378
Marketable securities
437,137
172,266
Accounts receivable, net
248,968
203,623
Inventory
162,383
127,475
Prepaid expenses and other current
assets
122,046
85,627
Property, plant and equipment, net
693,673
698,354
Operating lease right-of-use assets
116,952
143,708
Goodwill
2,366,676
2,367,120
Intangible assets, net
1,009,693
1,890,396
Other long-term assets, net
169,722
177,387
Total assets
$
5,928,139
$
6,471,334
Liabilities and stockholders'
equity
Convertible notes, net, current
portion
$
249,153
$
—
Current liabilities
483,034
514,701
Convertible notes, net, less current
portion
2,321,067
2,314,276
Other long-term liabilities
315,503
335,982
Operating lease liabilities, less current
portion
157,133
161,070
Total stockholders’ equity
2,402,249
3,145,305
Total liabilities and stockholders’
equity
$
5,928,139
$
6,471,334
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
Core Revenue
(Unaudited)
(Amounts in thousands)
GAAP
Three Months Ended December
31,
2024
2023
% Change
Screening
$
552,563
$
486,706
14
%
Precision Oncology
160,861
160,179
—
%
Total
$
713,424
$
646,885
10
%
Non-GAAP
Three Months Ended December
31,
2024
2023 (1)
% Change
Foreign Currency Impact
(2)
Core Revenue (3)
% Change (3)
Screening
$
552,563
$
486,706
14
%
$
—
$
552,563
14
%
Precision Oncology
160,861
158,096
2
%
1,179
162,040
2
%
Total
$
713,424
$
644,802
11
%
$
1,179
$
714,603
11
%
GAAP
Twelve Months Ended December
31,
2024
2023
% Change
Screening
$
2,103,868
$
1,864,701
13
%
Precision Oncology
654,999
629,110
4
%
COVID-19 Testing
—
5,955
(100
)%
Total
$
2,758,867
$
2,499,766
10
%
Non-GAAP
Twelve Months Ended December
31,
2024 (1)
2023 (1)
% Change
Foreign Currency Impact
(2)
Core Revenue (3)
% Change (3)
Screening
$
2,103,868
$
1,864,701
13
%
$
—
$
2,103,868
13
%
Precision Oncology
647,380
620,821
4
%
507
647,887
4
%
Total
$
2,751,248
$
2,485,522
11
%
$
507
$
2,751,755
11
%
(1) Excludes revenue from COVID-19 testing, the divested
Oncotype DX Genomic Prostate Score test, and the Resolution
Bioscience acquisition.
(2) Foreign currency impact is calculating the change in current
period non-U.S. dollar denominated revenue using the prior year
comparative period exchange rates.
(3) Excludes revenue from COVID-19 testing, the divested
Oncotype DX Genomic Prostate Score test, the impact of foreign
currency exchange rate fluctuations, and the Resolution Bioscience
acquisition.
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
Adjusted EBITDA
(Unaudited)
(Amounts in thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Net loss
$
(864,585
)
$
(49,766
)
$
(1,028,857
)
$
(204,149
)
Interest expense (1)
9,577
7,865
27,016
19,447
Income tax (benefit) expense
(11,381
)
(610
)
(7,304
)
2,403
Investment income, net
(9,962
)
(25,330
)
(39,558
)
(32,713
)
Depreciation and amortization
53,147
54,172
214,859
206,608
Stock-based compensation (2)
57,787
66,466
254,930
271,218
Acquisition and integration costs (3)
(1,664
)
(3,616
)
1,172
(11,762
)
Impairment of long-lived and
indefinite-lived assets (4)
838,164
—
869,460
621
Gain on sale of asset and divestiture
related costs (5)
(2,568
)
(4,311
)
(9,200
)
(74,833
)
Restructuring and business transformation
(6)
6,866
4,837
18,537
5,744
License agreement termination (7)
—
—
25,843
—
Legal settlement (8)
—
—
(3,500
)
36,186
Adjusted EBITDA
$
75,381
$
49,707
$
323,398
$
218,770
Adjusted EBITDA margin
11
%
8
%
12
%
9
%
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
U.S. GAAP to Non-GAAP
Measures
(Unaudited)
(Amounts in thousands)
Three Months Ended December
31, 2024
Gross Profit
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Loss from Operations
Net Loss Before Tax
Income Tax Benefit
(Expense)
Net Loss
Net Loss Per Share
Reported
$
492,593
$
97,709
$
244,529
$
191,110
$
(876,351
)
$
(875,966
)
$
11,381
$
(864,585
)
$
(4.67
)
Reported percent of revenue
69
%
14
%
34
%
27
%
Amortization of acquired intangible
assets
20,768
(1,384
)
(1,924
)
(26
)
24,102
24,102
(3,939
)
20,163
0.11
Acquisition and integration costs (3)
—
—
—
1,664
(1,664
)
(1,664
)
(12
)
(1,676
)
(0.01
)
Impairment of long-lived and
indefinite-lived assets (4)
—
—
—
—
838,164
838,164
(8,398
)
829,766
4.48
Gain on sale of asset and divestiture
related costs (5)
—
—
—
—
(2,568
)
(2,568
)
—
(2,568
)
(0.01
)
Restructuring and business transformation
(6)
—
(114
)
(1,829
)
(4,923
)
6,866
6,866
51
6,917
0.04
Adjusted (non-GAAP)
$
513,361
$
96,211
$
240,776
$
187,825
$
(11,451
)
$
(11,066
)
$
(917
)
$
(11,983
)
$
(0.06
)
Adjusted percent of revenue (non-GAAP)
72
%
13
%
34
%
26
%
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
U.S. GAAP to Non-GAAP
Measures
(Unaudited)
(Amounts in thousands)
Year Ended December 31,
2024
Gross Profit
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Loss from Operations
Net Loss Before Tax
Income Tax Benefit
(Expense)
Net Loss
Net Loss Per Share
Reported
$
1,918,717
$
431,210
$
894,125
$
781,825
$
(1,048,703
)
$
(1,036,161
)
$
7,304
$
(1,028,857
)
$
(5.59
)
Reported percent of revenue
70
%
16
%
32
%
28
%
Amortization of acquired intangible
assets
84,068
(3,293
)
(7,694
)
(103
)
95,158
95,158
(2,106
)
93,052
0.51
Acquisition and integration costs (3)
—
—
—
(1,172
)
1,172
1,172
(9
)
1,163
0.01
Impairment of long-lived and
indefinite-lived assets (4)
—
—
—
—
869,460
869,460
(8,398
)
861,062
4.67
Gain on sale of asset and divestiture
related costs (5)
—
—
—
—
(9,200
)
(9,200
)
—
(9,200
)
(0.05
)
Restructuring and business transformation
(6)
200
(6,688
)
(2,051
)
(9,598
)
18,537
18,537
(135
)
18,402
0.10
License agreement termination (7)
—
(25,843
)
—
—
25,843
25,843
(63
)
25,780
0.14
Legal settlement (8)
—
—
—
3,500
(3,500
)
(3,500
)
26
(3,474
)
(0.02
)
Adjusted (non-GAAP)
$
2,002,985
$
395,386
$
884,380
$
774,452
$
(51,233
)
$
(38,691
)
$
(3,381
)
$
(42,072
)
$
(0.23
)
Adjusted percent of revenue (non-GAAP)
73
%
14
%
32
%
28
%
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
U.S. GAAP to Non-GAAP
Measures
(Unaudited)
(Amounts in thousands)
Three Months Ended December
31, 2023
Gross Profit
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Loss from Operations
Net Loss Before Tax
Income Tax Benefit
(Expense)
Net Loss
Net Loss Per Share
Reported
$
453,921
$
115,184
$
216,590
$
196,388
$
(67,841
)
$
(50,376
)
$
610
$
(49,766
)
$
(0.27
)
Reported percent of revenue
70
%
18
%
34
%
30
%
Amortization of acquired intangible
assets
21,100
(261
)
(1,924
)
(26
)
23,311
23,311
(571
)
22,740
0.13
Acquisition and integration costs (3)
—
—
—
3,616
(3,616
)
(3,616
)
38
(3,578
)
(0.02
)
Gain on sale of asset and divestiture
related costs (5)
—
—
—
(89
)
(4,311
)
(4,311
)
45
(4,266
)
(0.02
)
Restructuring and business transformation
(6)
60
(4,049
)
(282
)
(446
)
4,837
4,837
(51
)
4,786
0.03
Adjusted (non-GAAP)
$
475,081
$
110,874
$
214,384
$
199,443
$
(47,620
)
$
(30,155
)
$
71
$
(30,084
)
$
(0.17
)
Adjusted percent of revenue (non-GAAP)
73
%
17
%
33
%
31
%
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
U.S. GAAP to Non-GAAP
Measures
(Unaudited)
(Amounts in thousands)
Year Ended December 31,
2023
Gross Profit
Research & Development
Expenses
Sales & Marketing
Expenses
General & Administrative
Expenses
Loss from Operations
Net Loss Before Tax
Income Tax Benefit
(Expense)
Net Loss
Net Loss Per Share
Reported
$
1,762,202
$
426,927
$
827,805
$
800,288
$
(215,012
)
$
(201,746
)
$
(2,403
)
$
(204,149
)
$
(1.13
)
Reported percent of revenue
70
%
17
%
33
%
32
%
Amortization of acquired intangible
assets
83,316
(1,047
)
(7,694
)
(103
)
92,160
92,160
(2,542
)
89,618
0.50
Acquisition and integration costs (3)
—
(492
)
—
12,254
(11,762
)
(11,762
)
123
(11,639
)
(0.06
)
Impairment of long-lived and
indefinite-lived assets (4)
—
—
—
—
621
621
(7
)
614
—
Gain on sale of asset and divestiture
related costs (5)
—
—
—
(1,594
)
(74,833
)
(74,833
)
46
(74,787
)
(0.42
)
Restructuring and business transformation
(6)
60
(4,772
)
(282
)
(630
)
5,744
5,744
(60
)
5,684
0.03
Legal settlement (8)
—
—
—
(36,186
)
36,186
36,186
(485
)
35,701
0.20
Adjusted (non-GAAP)
$
1,845,578
$
420,616
$
819,829
$
774,029
$
(166,896
)
$
(153,630
)
$
(5,328
)
$
(158,958
)
$
(0.88
)
Adjusted percent of revenue (non-GAAP)
74
%
17
%
33
%
31
%
(1) Interest expense includes net gains recorded of $10.3
million for each of the twelve months ended December 31, 2024 and
2023, from the settlement of convertible notes. The gains represent
the difference between (i) the fair value of the consideration
transferred and (ii) the sum of the carrying value of the debt at
the time of the exchange.
(2) Represents stock-based compensation expense and 401(k) match
expense. The Company matches a portion of Exact Sciences employees'
contributions annually in the form of the Company's common
stock.
(3) Represents acquisition and related integration costs
incurred as a result of the Company's business combinations.
Acquisition costs represent legal and professional fees incurred to
execute the transaction. There were no acquisition costs incurred
for the three and twelve months ended December 31, 2024 and there
was an insignificant amount incurred for the three and twelve
months ended December 31, 2023 related to the acquisition of
Resolution Bioscience, Inc. Integration-related costs represent
expenses incurred outside regular business operations, specifically
relating to the integration of businesses acquired through a
business combination. This includes any gain or loss on contingent
consideration liabilities, severance and accelerated vesting of
stock awards, and professional services. The remeasurement of the
contingent consideration liabilities resulted in a gain of $1.0
million and $3.3 million for the three and twelve months ended
December 31, 2024, respectively, and a gain of $5.0 million and a
gain of $18.0 million for the three and twelve months ended
December 31, 2023, respectively. The Company also incurred
severance costs and professional service fees which were not
significant for the three and twelve months ended December 31, 2024
and 2023. The majority of the professional service fees relate to
the integration of information technology systems.
(4) Represents impairment charges on the Company’s long-lived
and indefinite-lived assets. For the three months ended December
31, 2024, this primarily includes an impairment charge recorded
related to the in-process research and development asset acquired
as part of our acquisition of Thrive. For the three and twelve
months ended December 31, 2024 this also includes impairment
charges recorded on building leases and corresponding leasehold
improvements at certain of our domestic facilities. For the three
and twelve months ended December 31, 2023, the Company recorded
insignificant impairment charges related to building leases that
were vacated during the year.
(5) Relates to the sale of the intellectual property and
know-how related to the Company's Oncotype DX Genomic Prostate
Score test to MDxHealth SA in August 2022 and the subsequent Second
Amendment to the Asset Purchase Agreement related to the sale in
August 2023. For the three and twelve months ended December 31,
2024, this represents the remeasurement of the associated
contingent consideration. For the three months ended December 31,
2023, this represents the remeasurement of the associated
contingent consideration and an insignificant amount of legal and
professional fees. For the twelve months ended December 31, 2023,
this represents a gain of $3.1 million from additional cash and
equity consideration received, a $73.3 million contingent
consideration gain, and an insignificant amount of legal and
professional service fees.
(6) Includes costs associated with the Company's business
transformation program intended to consolidate operations, achieve
targeted cost reductions, and focus resources on its key strategic
priorities. For the three and twelve months ended December 31,
2024, this primarily includes severance costs and accelerated
stock-based compensation expense related to the closure of domestic
facilities and related consulting services. For the three and
twelve months ended December 31, 2023, this primarily includes
severance and accelerated stock-based compensation costs associated
with the closure of one of the Company's domestic laboratory
facilities.
(7) Represents termination related charges incurred due to the
termination of the Company's license and sponsored research
agreements with The Translational Genomics Research Institute
related to its Targeted Digital Sequencing technology, which
resulted in the recognition of termination related charges in the
second quarter of 2024.
(8) Represents charges incurred in connection with settlements
with counterparties related to the Medicare Date of Service Rule
Investigation and the Federal Anti-Kickback Statute and False
Claims Act qui tam lawsuit.
EXACT SCIENCES
CORPORATION
U.S. GAAP to Non-GAAP
Reconciliation
Operating Cash Flow to Free
Cash Flow
(Unaudited)
(Amounts in thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2024
2023
2024
2023
Net cash provided by operating
activities
$
47,063
$
69,549
$
210,536
$
156,119
Net cash provided by (used in) investing
activities
(41,872
)
(66,767
)
(442,155
)
49,679
Net cash provided by financing
activities
10,499
10,037
231,874
159,766
Effects of exchange rate changes on cash
and cash equivalents
(3,721
)
1,947
(3,294
)
1,321
Net increase (decrease) in cash, cash
equivalents and restricted cash
11,969
14,766
(3,039
)
366,885
Cash, cash equivalents and restricted
cash, beginning of period
594,667
594,909
609,675
242,790
Cash, cash equivalents and restricted
cash, end of period
$
606,636
$
609,675
$
606,636
$
609,675
Reconciliation of free cash flow:
Net cash provided by operating
activities
$
47,063
$
69,549
$
210,536
$
156,119
Purchases of property, plant and
equipment
(36,316
)
(34,922
)
(135,989
)
(124,190
)
Free cash flow
$
10,747
$
34,627
$
74,547
$
31,929
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250219858446/en/
Investor Contact: Derek Leckow Exact Sciences Corp.
investorrelations@exactsciences.com 608-893-0009 Media
Contact: Steph Spanos Exact Sciences Corp.
sspanos@exactsciences.com 608-556-4380
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