On July 28, 2021 Exact Sciences Corp. (Nasdaq: EXAS) reported that the company generated revenue of $434.8 million for the second quarter ended June 30, 2021, compared to $268.9 million for the same period of 2020 (Press release, Exact Sciences, JUL 28, 2021, View Source [SID1234585281]).
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"The Exact Sciences team remained unwavering in their dedication to our mission and delivered record results for Cologuard and Oncotype DX," said Kevin Conroy, chairman and CEO. "We have a strong foundation in cancer screening and precision oncology and plan to transform cancer care with Cologuard, Oncotype, and our deep pipeline of innovative tests."
Second Quarter 2021 Financial Results
For the three-month period ended June 30, 2021, as compared to the same period of 2020 (where applicable):
Total revenue was $434.8 million, an increase of 62 percent
Screening revenue was $263.9 million, an increase of 101 percent
Screening revenue included a one-time downward adjustment of $12.1 million related to the passing of the contractual deadline to submit claims for previously completed Cologuard tests
Precision Oncology revenue was $137.8 million, an increase of 34 percent
COVID-19 testing revenue was $33.1 million, a decrease of 4 percent
Gross margin including amortization of acquired intangible assets was 69%, and non-GAAP gross margin excluding amortization of acquired intangible assets was 74%
Net loss was $176.9 million, or $1.03 per share, compared to a net loss of $68.1 million, or $0.45 per share
EBITDA was $(122.9) million and adjusted EBITDA was $(26.5) million
Cash, cash equivalents, and marketable securities were $1.31 billion at the end of the quarter
Screening includes laboratory service revenue from Cologuard tests and revenue from Biomatrica products. Precision Oncology includes laboratory service revenue from global Oncotype products and laboratory service revenue from Ashion.
2021 Outlook
The company anticipates revenue of $1,705-$1,745 million, including Screening revenue of $1,100-$1,125 million, Precision Oncology revenue of $530-$540 million, and COVID-19 testing revenue of $75-$80 million.
Updated guidance is an increase from previously expected revenue of $1,690-$1,735 million, which included Screening revenue of $1,125-$1,150 million, Precision Oncology revenue of $515-$525 million, and COVID-19 testing revenue of $50-$60 million.
Lower Screening revenue expectations are primarily due to the one-time downward revenue adjustment of $12.1 million referenced above and COVID-19 dynamics negatively impacting the business, including reduced physician office access for our field sales teams and fewer patient wellness visits.
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. The company presents EBITDA, adjusted EBITDA, as well as non-GAAP gross margin and non-GAAP gross profit. EBITDA and adjusted EBITDA consist of net loss after adjustment for those items shown in the table below. The company defines non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin, respectively, excluding amortization of acquired intangible assets. The amortization of acquisition-related intangible assets used in the calculation of non-GAAP gross profit and non-GAAP gross margin pertain only to the amortization associated with developed technology acquired and recorded through purchase accounting transactions. The amortization of these intangible assets will recur in future periods until such intangible assets have been fully amortized. The company believes that these non-GAAP measures are useful in evaluating the company’s operating performance. The company uses this non-GAAP financial information to evaluate ongoing operations and for internal planning and forecasting purposes. Non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, 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, non-GAAP gross margin and non-GAAP gross profit exclude the amortization of acquired intangible assets although such measures include the revenue associated with the acquisitions. For a reconciliation of these non-GAAP measures to GAAP, see below "EBITDA and Adjusted EBITDA Reconciliations" and "Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliations."
Second Quarter Conference Call & Webcast
Company management will host a conference call and webcast on Wednesday, July 28, 2021, at 5 p.m. ET to discuss second quarter 2021 results. The webcast will be available at www.exactsciences.com. Domestic callers should dial 833-235-7650 and international callers should dial +1-647-788-4901. The access code for both domestic and international callers is 3969691.
An archive of the webcast will be available at www.exactsciences.com. A replay of the conference call will be available by calling 800-585-8367 domestically or +1-416-621-4642 internationally. The access code for the replay of the call is 3969691. The webcast, conference call and replay are open to all interested parties.
About Cologuard
The Cologuard test was approved by the FDA in August 2014, and results from Exact Sciences’ prospective 90-site, point-in-time, 10,000-patient pivotal trial were published in the New England Journal of Medicine in March 2014. The Cologuard test is included in the American Cancer Society’s (2018) colorectal cancer screening guidelines and the recommendations of the U.S. Preventive Services Task Force (2021) and National Comprehensive Cancer Network (2016). The Cologuard test is indicated to screen adults 45 years of age and older who are at average risk for colorectal cancer by detecting certain DNA markers and blood in the stool. Do not use the Cologuard test if you have had precancer, have inflammatory bowel disease and certain hereditary syndromes, or have a personal or family history of colorectal cancer. The Cologuard test is not a replacement for colonoscopy in high risk patients. The Cologuard test performance in adults ages 45-49 is estimated based on a large clinical study of patients 50 and older. Cologuard performance in repeat testing has not been evaluated. The Cologuard test result should be interpreted with caution. A positive test result does not confirm the presence of cancer. Patients with a positive test result should be referred for diagnostic colonoscopy. A negative test result does not confirm the absence of cancer. Patients with a negative test result should discuss with their doctor when they need to be tested again. Medicare and most major insurers cover the Cologuard test. For more information about the Cologuard test, visit www.cologuardtest.com.