Exact Sciences(EXAS) - 2024 Q2 - Quarterly Results

Financial Performance - Total revenue for Q2 2024 was $699 million, a 12% increase from $622 million in Q2 2023, with core revenue growth of 13%[3][6] - Screening revenue reached $532 million, reflecting a 15% increase year-over-year, while Precision Oncology revenue was $168 million, up 7%[6][7] - Revenue for Q2 2024 reached $699.3 million, a 12% increase from $622.1 million in Q2 2023[21] - Screening revenue increased by 15% to $531.6 million in Q2 2024, compared to $462.8 million in Q2 2023[25] - Precision Oncology revenue grew by 7% to $167.7 million in Q2 2024, compared to $157.2 million in Q2 2023[25] Profitability Metrics - Adjusted EBITDA for Q2 2024 was $110 million, an increase of $43 million, with an adjusted EBITDA margin of 16%, up 500 basis points[7] - Adjusted EBITDA for Q2 2024 was $110.1 million, representing an adjusted EBITDA margin of 16%, up from 11% in Q2 2023[30] - The company reported a gross profit of $488.3 million for Q2 2024, with a gross margin of 70%[28] - Gross margin for Q2 2024 was 70%, with a non-GAAP gross margin of 73% excluding amortization of acquired intangible assets[7] - The net loss for Q2 2024 was $16 million, an improvement of $65 million compared to the previous year[7] - Net loss for Q2 2024 was $15.8 million, significantly improved from a net loss of $81.0 million in Q2 2023[21] Cash Flow and Liquidity - Operating cash flow was $107 million, and free cash flow was $71 million, both showing increases from the prior year[7] - Net cash provided by operating activities for Q2 2024 was $107,065, an increase of 6.6% compared to $100,424 in Q2 2023[44] - Free cash flow for Q2 2024 was $71,199, up from $65,703 in Q2 2023, reflecting a year-over-year increase of 7.7%[44] - Cash, cash equivalents, and marketable securities totaled $947 million at the end of Q2 2024[7] - Cash and cash equivalents decreased to $530.2 million as of June 30, 2024, down from $605.4 million at the end of 2023[23] - Cash, cash equivalents, and restricted cash at the end of Q2 2024 totaled $536,017, down from $604,660 at the end of Q2 2023[44] - The company experienced a net increase in cash and cash equivalents of $184,233 in Q2 2024, compared to an increase of $182,998 in Q2 2023[44] Expenses and Investments - Total operating expenses for Q2 2024 were $729.3 million, compared to $699.0 million in Q2 2023, reflecting a 4% increase[21] - Research and development expenses rose to $120.9 million in Q2 2024, up from $104.1 million in Q2 2023, marking a 16% increase[21] - Sales and marketing expenses for the three months ended June 30, 2024, were $185,270 thousand, consistent with $176,490 thousand in the same period of 2023[34] - General and administrative expenses for the three months ended June 30, 2024, were $201,856 thousand, compared to $237,965 thousand in the same period of 2023, showing a decrease of 15%[34] - The company recorded impairment of long-lived assets of $8,152 thousand for the three months ended June 30, 2024, compared to $552 thousand in the same period of 2023[34] - The company recognized acquisition and integration costs of $13,239 thousand for the three months ended June 30, 2024, with no such costs reported in the same period of 2023[34] - The termination of a license agreement resulted in charges of $25,933 thousand for the three months ended June 30, 2024[34] - The company incurred restructuring costs of $2,936 thousand for the six months ended June 30, 2024, primarily related to workforce reductions[40] Guidance and Future Outlook - The company maintained its full-year 2024 revenue guidance of $2.810 - $2.850 billion and raised the adjusted EBITDA guidance midpoint by $8 million to $335 - $355 million[8] - The company advanced its pipeline by generating evidence for molecular residual disease and multi-cancer screening tests[6]