EXAS Q4 Loss Narrower Than Expected, Stock Falls, Revenues Up Y/Y

Core Insights - Exact Sciences Corporation (EXAS) reported a narrower net loss of 6 cents in Q4 2024, compared to a loss of 27 cents in the same quarter last year and significantly better than the Zacks Consensus Estimate of a loss of 32 cents [1][2] - The full-year net loss was $5.59 per share, which was much higher than the Zacks Consensus Estimate of a loss of $1.20 and wider than the 2023 loss of $1.13 per share [2] - Total revenues for 2024 reached $2.76 billion, exceeding the Zacks Consensus Estimate by 0.4% and reflecting a 10.4% increase from 2023 [3] Revenue Breakdown - Q4 screening revenues, including laboratory services from Cologuard and PreventionGenetics, totaled $552.6 million, marking a 14% year-over-year increase driven by Cologuard adoption [4] - Precision Oncology revenues were $160.9 million, showing a marginal increase from the previous year, supported by the international adoption of Oncotype DX [5] Margin and Expense Analysis - Gross profit rose 8.5% year over year to $492.6 million, despite a 14.4% increase in the cost of revenues, leading to a gross margin contraction of 112 basis points to 69.1% [6] - Research and development expenses decreased by 15.2% to $97.7 million, while sales and marketing expenses increased by 12.9% to $244.5 million [6] Financial Position - At the end of Q4, Exact Sciences had cash and cash equivalents and marketable securities totaling $1.04 billion, up from $777.6 million at the end of 2023 [8] Future Outlook - For full-year 2025, the company anticipates total revenues between $3.025 billion and $3.085 billion, with Screening revenues expected in the range of $2.350 billion to $2.390 billion and Precision Oncology revenues between $675 million and $695 million [9] - Adjusted EBITDA is forecasted to be in the range of $410 million to $440 million [9] Strategic Developments - The company secured favorable Medicare pricing for the Cologuard Plus test, enhancing its screening capabilities [12] - New evidence from the ASCEND 2 study supports Cancerguard, a blood-based multi-cancer screening test, indicating potential for improved early cancer detection [12]