Exact Sciences (EXAS) Q1 Revenues Rise Y/Y, Gross Margin Down

Core Viewpoint - Exact Sciences Corporation reported a net loss of 50 cents per share in Q1 2024, which was in line with the Zacks Consensus Estimate but wider than the previous year's loss of 42 cents [1] Revenue Summary - First-quarter consolidated revenues reached $637.5 million, reflecting a year-over-year increase of 5.8$474.8 million, up 7% year over year, driven by increased adoption of Cologuard by healthcare providers [3] - Precision Oncology revenues totaled $163 million, marking a 5$467.4 million, while gross margin contracted by 64 basis points to 73.3% [4] - Research and development expenses increased by 15.9% to $110.6 million, and sales and marketing expenses rose by 2.9$192.4 million [4] - General and administrative expenses were up 11.9% to $243.1 million, leading to an adjusted operating loss of$78.7 million, wider than the previous year's loss of $54.1 million [4] Financial Position - At the end of Q1 2024, the company had cash and cash equivalents and marketable securities totaling$652.1 million, down from $777.6 million at the end of Q4 2023 [5] - The company reported no long-term debt on its balance sheet [5] 2024 Guidance - Exact Sciences maintained its 2024 revenue guidance, expecting total revenues between$2.81 billion and $2.85 billion, with the Zacks Consensus Estimate at$2.83 billion [6] - Screening revenues are anticipated to be in the range of $2.16 billion to$2.18 billion, while Precision Oncology revenues are expected to be between $655 million and$675 million [6] Overall Assessment - The company met earnings expectations while exceeding revenue estimates, with strong contributions from Screening and Precision Oncology segments [7] - However, rising expenses and a contracting gross margin present challenges, alongside an operating loss for the quarter [7]