Exact Sciences Powers Ahead: Record-Breaking Quarter with Impressive Growth and Strong Financials
The latest quarterly earnings call from Exact Sciences has revealed a remarkable performance, solidifying its position as a leading player in cancer diagnostics. With a focus on extending and leveraging its platform to eradicate cancer, the company has achieved significant milestones in 2024.
One of the standout highlights from the quarter is the delivery of over 4.6 million results to patients using Exact Sciences' portfolio of cancer tests. This represents a notable increase in core revenue, which grew by 11% while non-GAAP operating expenses grew just 2%, resulting in a 48% increase in EBITDA and more than doubling free cash flow.
Notably, the company secured FDA approval and Medicare pricing for Cologuard Plus, its next-generation colon cancer screening test. This achievement showcases Exact Sciences' commitment to innovation and expanding its product offerings to better serve patients and healthcare providers.
The company has also made significant strides in generating evidence for its liquid biopsy colon cancer screening test as well as its multi-cancer screening test, Cancerguard. Additionally, it was recognized as a great place to work for the sixth consecutive year, further solidifying its reputation as an employer of choice.
Looking ahead to 2025, Exact Sciences is poised for continued growth and leadership in cancer diagnostics. The company expects to increase adoption of its current tests and launch three new ones, powered by its scale and reach with a large commercial engine and tens of millions of additional touch points with patients and healthcare providers.
Aaron Bloomer, the company's Chief Financial Officer, discussed the fourth-quarter financial results and outlook for 2025 during the earnings call. He highlighted the growth in revenue, which increased by 10% or 11% on a core basis, and adjusted EBITDA, which grew by 52% to $75 million.
The company's expanding customer base supports its long-term growth outlook, with over 35 of the top U.S. health systems and payers closing gaps in care with Cologuard, setting a new record. Precision Oncology revenue increased slightly, driven by increased adoption of Oncotype DX internationally.
Importantly, Exact Sciences strengthened its balance sheet in 2024 by more than doubling free cash flow and ending the year with $1.04 billion in cash and securities. This strong financial position has enabled the company to repay the full $250 million in maturing convertible notes.
In terms of guidance for 2025, Exact Sciences expects total revenue between $3.025 billion and $3.085 billion for the full year, with Screening revenue expected to be between $520 million and $530 million for the first quarter. This demonstrates the company's confidence in its growth prospects and commitment to delivering value to patients and healthcare providers.
