EXAS - Earnings call transcript Q2 2022 | Exact Sciences Corporation

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Operator

Good day, and welcome to the Exact Sciences Second Quarter 2022 Earnings Call. Today's call is being recorded. I would now like to turn the call over to Megan Jones, Senior Director of Investor Relations. Please go ahead.

Megan Jones

Thanks for joining us for Exact Sciences' Second Quarter 2022 Conference Call.

Chief are Elliott, the and our Officer; Cunningham, today CEO; Chairman Chief call also Everett Jeff will and Chief our the Kevin for company's Conroy, and Operating be On available Officer, questions. Commercial Financial Officer in issued this earlier financial release second afternoon this our quarter Sciences Exact detailing results. today's available release on This at website and news our presentation are exactsciences.com.

forward-looking expectations. During current today's on call, statements we based will make

press available included release, Exact such results descriptions statements. differences Reconciliations website. in turn call may our can figures GAAP Sciences SEC I'll actual risks earnings Our the the our Both from over are and with of accessed and in have to associated Kevin. through to be now filings. material uncertainties our are

Kevin Conroy

Thanks Megan.

with advancements liquidity loss Cologuard, showcasing through in breadth our Oncotype the Cutting of and ASCO as screening Breast from early-stage guidelines eradicate test precision certified with and tumor disease colon BLUE-C, vision multi-cancer evidence we securing blood share reach publishing During our more now Cologuard our for early the colon and the additional finally, fourth EBITDA Oncotype plan cancer evidence Great next-generation quarter-over-quarter, pipeline enhancing toward The test, care generating projects being position by to Oncology for second for our our XXX,XXX DX profitability ESMO a cash towards of cancer residual to for core the abstracts test, oncology focused Genomics. Ultima progress adjusted Society preferred financial We're advanced support consecutive earlier at And testing which patients, and partnering completing our for or profitability an cancer people on detection and path in highest-impact breast September. European improving XX and review Making for pivotal year, for DX to will results. patients half our and capabilities sequencing prioritizing for Place quarter, at Jeff with pipeline our cancer Generating smarter our cancer position. to their answers of Medical study health our quarter improved include ASCO. our highlights to cancer. providers. Work executing business several in conference to the the the Cologuard than high-quality the detection evidence colon made minimum for screening team with tests.

Jeff Elliott

afternoon. Thanks Good Kevin.

launch. four Difficulty] was was healthcare productivity, of revenue improved and testing. streams, quarter to three-year with XX% Breast an Oncology increase increase $XXX XX [Technical $XXX since partnership ordered million, Screening in Cologuard an quarter million, X,XXX XXX,XXX XX%, or the Precision points group. Second have providers nearly including ordered million, of PreventionGenetics. marketing and COVID XX sales XX from driven was Katie therapy age Cologuard revenue of Couric, increase was used DX $XXX our XX%, the Oncotype an team growth new and during by revenue by driven selection.

a testing was XX% COVID exchange million $XX million. Foreign decreased $X revenue headwind. to

gross lower Non-GAAP amortization intangibles, Margins XX%. due XX%. margin, was than was of margin gross were which especially GAAP inflation, quarter Second wages. and to excludes shipping expected acquired

the to about guidance a year, headwind inflation the exchange be unfavorable half second to We XX%. about two-point and of in expect foreign prior of our compared

million the online million million. to mainly was and brought established quarter, AR million marketing expense G&A adjusted related we was a $XXX million. Sales new facility as net and expand, to expense $XXX the margins cost absorb loss million, capacity. additional securitization We including automation. loss for introduce Cologuard in expect $X and from expense million an Thrive expense million. $XXX and $XX a was reduction of to gain, $XXX the quarter borrowing a was Net We lab activities. capacity ended during $XXX $XXX $XX million. We R&D with with EBITDA up was

$XX For the under facility. borrowed agreement, we the million

liquidity We $X almost We're real also facilities. have to billion. capital exploring also about $XXX ways our unlock million total This our from revolving available of estate on credit facilities. provides

cash our half, in growth of expect we're profitability while continue used be lower achieving We in second confident to to compared the in the XXXX, in efficiencies. and we year future the EBITDA first half and investing adjusted

initiatives investing like customer For and and this redundant year limited enhance our our and tools to in million IT example, experience Cologuard billing from IT $XXX we're systems, improve digital platforms. rescreens, costs legacy support

guidance. our to Turning

during year. $XXX $X.XX and revenue billion between and million the quarter third $XXX between $X.XXX total billion million expect We the and for

revenue and for $X.XXX screening $XX and $XX during billion revenue million This year. $XXX for $X.XX third million of expect between quarter billion quarter million the and approximately between million $XXX between PreventionGenetics third $XX million We the the includes and and for the year.

and We $XXX year. the for between $XXX expect $XXX and Oncology and Precision revenue $XXX the million million quarter for million third million between

for Breast incremental other urology our ensure will $X expectations improving MDX and Health, and on solely precision test Score our commercial-stage to highest Prostate We're in urological DX Our diagnostics for unchanged. team year. million the portfolio global portfolio is and impact our our reflect focused focused diseases. Genomic the are headwind Oncotype our to transition changes product guidance profitability. Oncotype members up FX on dedicated a a DX Certain team cancer of prostate -- divested projects company, to We

MDX including to services a agreed have certain provide patients. ensure transition transition for services Health, smooth to to lab We

agreement, million to revenue certain payable Health the $XX additional is upon For An cash Sciences received million $XX Sciences achievement $XX $X of MDX Exact million including milestones. upfront, Equity. Exact million in in and

and $X and third $XX for for million $XX million the the We revenue between COVID and expect million quarter million $XX testing between year.

sales year, and the the such marketing million by for $XXX and OpEx saw and are our as we million improvement marketing revenue key representative. sales in between second sales to Moving expect now metrics, million. expense $XX lowering full and we $XXX In quarter, per

million and improve also to We're million. Cologuard between now and $XXX further expense grow make We by we and available. products million our more expect $XXX $X lowering and development research expect as this

CapEx Our now I'll to and call intangible Kevin. expectations G&A, remain the back amortization same. turn the for

Kevin Conroy

Thanks, A first-time Medicare screen. This CMS with regulation half up follows Medicare Americans colon of about top and requiring after study Centers XXXX, Jeff. are private as a that Americans many Cologuard. screen. XX are colonoscopy half recent ages Almost solve addressing not be Cologuard screened. cancer is federal new XX proposed to means That to The screening barrier for helping problem. sharing Services to removing by positive starting this and need have using for between to XX date stool-based a Medicaid cost to payers test. to about sharing showed follow-up patients as and getting users providers million or screened people a eliminating of cost a eliminate recently concern more in a Cologuard

Our sales screening using marketing tools to people and to Cologuard. and support more future and is approach of our and help health A Oncotype to potential up -- people the Investing by tests. keep key unlocking needs helping our people powerful to data elevate partners to DX screen Cologuard, teams date colon system full one digital infrastructure with are cancer screen. Cologuard marketing with and a to multichannel implementing help

minimum all ordering prognosis, installing IT nearly cancer, including billing. systems, We from Epic system information cancer, meet system, have backbone multi-cancer, needs our and therapy This of the spent selection. enhancing a colon decade hereditary one custom-built cancer and power physician partners processes will as a our residual testing thoughtfully interface and laboratory late-stage to health to designing and – in

partner healthcare fragmented. to provide Breast. the partner, for Our it [Technical in order biopharma making and foundation Sciences providers has simple have. may through or The to Difficulty] goal personalized DX is and complicated precision cancer and make of tests oncology all instead Exact oncologists, patient, to Oncotype diagnose of key cancer advanced easy questions to answers as prevention one academic

Operator

Please standby. the This operator… is

Operator

Once operator, online. Difficulty] the reconnect are everyone, [Technical to this line. again stay is we Please speaker attempting

Megan Jones

the or do we line? have you backup Operator, on

Operator

is ahead. Yes, live. your go line Please

Megan Jones

please? Do you the drops, know line where

Operator

dropped three It minutes approximately ago.

Jeff Elliott

glitch. don't technical exactly we for listening, where know those we We stopped. So apologize the

So most we my for that. safe going I to read the comments, go start of think I'm back it's for safety, to and

Kevin Conroy

Jeff. you, Thank

Jeff Elliott

patients study are are helping to is colon cancer not million by in That barrier getting Americans many requiring and with to concern federal positive to problem. addresses This about means as Cologuard recently showed people a screened private screened. This and as of cost screening. this for about top that A date half users screening. the had XX Medicare for starting removing, The more after sharing, a Medicaid of follow-up and half Cologuard using cost proposed up Cologuard. recent be regulation time eliminate follows a XX colonoscopy solve XXXX. XX testing. between stool-based ages Americans to Almost Centers Medicare sharing, new that eliminating screening providers to a need first to have payers Services to

sales tools to investing two, Our needs; multi-channel of Cologuard tests. up to to full help data our helping teams using to with elevate implementing with Cologuard; unlocking date and approach people three, marketing a and support keep screen the future one screen. system people by Cologuard, is and marketing our DX and potential and one cancer key health Oncotype infrastructure digital more colon partners screening are A to powerful

the a and multi-cancer, thoughtfully IT health residual late-stage colon information disease designing custom-built cancer, spent physician to including installing our system, system our as testing hereditary needs minimum processes meet This We nearly and in backbone to of decade one interface all prognosis, a powers have and ordering from enhancing therapy cancer partners selection. billing. cancer, Epic laboratory systems,

precision Class diagnostic developing tumor. cancer of cancer XX pilot one important prevention focused a pipeline easy in Pharmaceuticals, screening, diagnostics. molecular to is testing. biopharma complicated simple instead a Colon of therapies residual depth to providers team invaluable companion for leading taking the all partnerships, oncologists, first To Oncotype through developing XX partner academic disease with most test our and -- The The for II selection relationships also therapy personalized and advancements upon answers next-generation to partner, partnering to makeup strongly to goal In we're PreventionGenetics ExTra year received to collaboration to with order and program. hereditary the aspects BLUE-C Rhythm the the one approval guidance better next to trial, of have. number detection evidence with we with make market all ASCO Our test the patients. cancer of planning Oncomap later Breast deliver screening oncology provides residual is comprehensive with and companies test necessary cancer to biopharma treatment most bring future offering, help happy has precision current the for an DX early FDA build therapy ASCO PreventionGenetics multi-cancer as cancer of diagnose In submission foundation the diagnostic colon we're Cologuard minimum breadth may selection, our XX and the better for is patients Oncomap advanced to authorized testing months, health device, fragmented. prospective develop decisions In the and making for from now make our patient, disease which We enhancing cancer abstracts. to it and three provide genetic recently test, key to for identify Sciences recommended patients. questions or care team Exact test. launch cancers supporting and minimum displayed power we've patients. breast on our tests expand that We're test. test, our multi-gene based of biopharma plan our oncology FDA and highest evidence this quality a help test announce at enrolled the

our September we in In at of We enroll test. evidence have ASCO. -- the approach. data we will support early at supporting blood to detection, to residual colon we cancer continue power demonstrates plan cancer disease, panel multi-cancer colon in our cases multi-marker share tumor-naive cancer sure published -- minimum In ASMO our

colon want to have patients study our across We approach the to breast a data cancer stages group study later in and treatment. cancer provide with initiated information year. of all this cancer before additional also expect in validate to better -- diagnosis We and tumor-informed

many technologies the We provides have answering place each diagnosis. to question and flexibility right test for we're the on deliver before throughout with expertise across This a cancer a biomarker. and best team

technology with and work Singular may differentiated to happy Genomics Our help for development patients. your sequencing and a provide future We're to to access tool now Genomics take outcome best affordable Ultima and another questions. the

Operator

De you. [Operator take of Thank question with first America. Bank We'll from Instructions] our Derik Bruin

Derik De Bruin

the I off, yet full Cologuard for guess to the why you question. Thank million to number year, afternoon. XXXX? think the conservatism that taking quarter, additional consensus Good our I COVID? I and on on guess year a the force there guess we for the tailwinds are of and was still of you're less should I have the mean, of guide. second beat there estimates you given half start $XX sales thoughts Hi. how maintaining my about given should sort a Cologuard for on relative And

Kevin Conroy

to start Well year. step by, it. There to an access the increasing over screened. physicians hand of to XX let The not million guiding back, the are a And million people runway growth essentially tremendously are start XX flat saying a Jeff changed. to environment at the taking And has be It then starting well. has has the and between we half and XX over unscreened Cologuard year. half in ahead to that for XX% first of me screened long clip. been XX are back need as who of to people the I be

We being to Eventually, limited expected COVID we're access of because because staff now limited it from that more access is that moved will we office of seeing a again. was where shortages. period increase. to What

the those is a Cologuard as with some becoming seeing of expect meet becoming persistent, systems, And of cancer tremendous. keep to aspects is nature shift importantly, the of among that Jeff physicians, we're fundamental we great are things -- that on our to health just behaviors, and All temporary more the ordering share patients in to is but a those that back for accepted positive get up, need goal colon and large within is and screened. way on -- Cologuard. long-term more data the It's XX% upside continue screening common or market is

Jeff Elliott

Derik, this is Jeff.

in Cologuard, this half That's Kevin mean in XX% of plus back keep guiding growth we're of $X is the about, as talked for emphasizing year profitable the to to we're know, million profitable As mind, in I billion Cologuard. $XXX product you There the revenue. incremental -- want going We'll do cash growth growth of in built and is a about guide forward. could to talked Kevin next ton likely are our that we about to I sustainable -- flow. generating fourth year call. we was consistent make that. sure quarter

that see systems XX% -- converts higher work of you now. will they're backlog efficiency that doing continue systems just As number really to [indiscernible] he and are the in orders. mentioned with on things the climb health with signing Electron at you that when waiting a up to of electronic order do

So, down I -- down about less really for ability because order X.X Today we’ve perspective, orders are to year, progress than turn a Thanksgiving. revenue goes things Cologuard into our feel months the goes after growth. we really made us

outcome. about think do most today likely So the to should the for year, here months the X.X in – you we midpoint will but we left of try of guidance can, the as everything

Operator

next take Jefferies. from question We'll with our Brandon Couillard

Brandon Couillard

question Two-part Jeff. thanks. for Hey,

that? there right? gain then reduction marketing I on second in million $XX the spending and your was that a unchanged. – But of sales Is G&A, think quarter. driver And million the on First, outlook in

Jeff Elliott

It's two-part Brandon. Yes. a question,

first start The chime something Everett, maybe too, one, build Kevin he's if in to and I'll add. can got

think growth. highest what I an and of invested emphasis on areas seeing is the So return here in prioritization you're

at we're sure targeting the nice targeting team Always making Everett spend the job very So marketing and doctors, right territory. has looking closely. right

in I'm of the sequential X%, So sales at you a that and see saw, sequential pleased the marketing really look X%. sequentials growth here, what improvement when we to of decline

accretion this last that the gain. around take we're of my that plan had team. this from the of This productivity to the seeing says got efficiencies on earn off we're is the kicked to there. happens Really, improve two that Difficulty] I a The year our quarters, efficiency earlier the go for math to this only improved we part nice interest gain. a mentioned this thing up, that the So $X is in million on we remarks, transition. [Technical relates as really sales getting. some the really we've rates this

could could rates really on, care. as that's happen not future. again happen the in interest dynamic the counting So it but again I'm That fluctuate.

there. So that's the change

the as like half, IT. in back in continuing far to things the As we're G&A invest

in the we half. for that likely efficiencies step the is that's IT expect a up So time. back driver the crucial the

So I think and make the investments those to marketing sales add on line.

Everett Cunningham

opportunities the we've more will allowed that know and just important into systems in go unlike in Jeff, our – to deep systems We've goes about a taken health that [ph] deployment. a at health large year – we optimal We toward those commercial and our been sure us be largest That where that organization. We've organization. resources look invested really systems. our partnership, we health for we develop have major those as a systems putting XXXX. Cologuard have choice as making invested

Operator

take from from We'll question Weinstein William our Blair. next Brian

Brian Weinstein

Hey, for brought the guys. don't about thrilled – you think the -- Chicago up to Sunny taking Not that X.X really yet. question. I want to in that Thanks

cool not all. at So

that then asking raising you've I'm just or M&A past profitability. opportunities is of factors made Cologuard but kind the into in comments also -- So – help types Oncology the the even sales add potentially in to Cologuard, quarter, any to clearly broadly this talk to the Should maximize about on what – like you Reason course, right add and to an bag even kind just how not Precision asset and in an to continue? equity, of to acquirer. more also makes that of other guys of portfolio to how time divested obviously thoughts content, expect wondering we potentially broadly, about

of makes up So sense. Hopefully, kind that of bundled a there. stuff bunch

Kevin Conroy

generated to of billion. -- revenue look to you we're year, go This if guiding $XX we and I back think Brian. million Thanks, this Yeah. XXXX, Kevin. The is $X

So important and OBGYN, been -- the company the force transformed joining all transformation way the GI, part specialties the is reach best has building of oncology. what that other to an from way genomic care, believe we primary was from all

think have our Breast we care Two, long residual term cancer are our Those then minimum at multiple to an the what at earlier. growth. we Americans and DX XXX group of a is our detection the you you in in company now testing to colon making if we products on looking blood testing $XX are have the look really which disease. million cancer should colon anchored test cancer And So Oncotype and pipeline, be total opportunity And access detection brands cancer programs, billion. portfolio early access Cologuard amazing transform basis regular TAM by three combined deliver. next-generation a can our that about best

in organization, the we the of IT best cancer believe from this in deep can result this to get have they and team engages, amazing new huge. all investment reasons the them commercial to of that capabilities a portfolio. platform it, suited is and We [indiscernible] only take that us in billing. a professionals we is about drop they One an way because allows deliver This regulatory. order is there not diagnostics, The incredible products test, clinical to Diagnostics, this is it but in

this people the very does contribute value. who it the urology. greatly will it and Oncotype Health is And totally to And It's of articulated. is benefited know on the just by test, we Is the personally so a -- it that have leadership When focused strong I our create the test. it information well. great from test company comes it's M&A shareholder a long-term company culture product delivers. of or that right know Prostate MDX I our strategy to philosophy driven DX technology

and Oncotype successful to important shareholders Prostate. the We this of We right be want the DX will of for be we company. and help one that is the believe them support home

to we'll Everett. add So I you anything don't continue, know have if there.

Everett Cunningham

CMOs, the to over will health health to IT had of products partner, to support large talking systems back-end Yeah. been last what systems help I to partner one approach can for. And -- our over your and us, with are the a lab of what to that's they the giving field. field I've out going continuum. our partners in half seen I've been We're have they're the the all X.X thing. over the saying, this add that looking months, we the systems solutions being CEOs, to last number just Kevin, -- portfolio we've that about I've last to cancer the that individual from if that's response that continuum deal they're you seen the move month us. what That's you and health are in simplify with, going the their selling the workflow, cancer

So it's inspiring.

Kevin Conroy

Everett. Thanks

Operator

Schulte We'll next from question Catherine take our with Baird.

Catherine Schulte

did Thanks top of the pre-pandemic. continue bottom trend is Hey to the ordering that it come much Did in of group question. in while still the more think pre-COVID group the they had that how long guys. about takes that docs you've for XX% than for And down, quarter? you top tier do of represented first, orders the Yes, second past, back? orders the talked

Jeff Elliott

Hey is of Catherine, This the is part Jeff. exciting really business. a this

I know futures the we're Kevin at here. and really Something sort look closely of never and I

in So, that relative actually trend, to it quarters. quarter the accelerated prior

improved down an start doctors that of just to in historically under pandemic. of recently. those XX% saw compares that are That had Again, their They quarter. -- ordered most that's was now down the limited first the we to -- more orders XX% the environment So, access. order relative about

call start to pandemic. rate only closer think doctors the even relative business will is sequentially. now order doubled start rate, I of pandemic. quarter, improves, they continues the to are It improvement since who the Those essentially part have come up it's ticking even again, improvement tremendously Last order This ordered doctors the are These the of believers. was doctors XX%, current the the of historically They infrequently, exciting. to back didn't back it them. flow improve. more as we up expand XXX% their oftentimes, a true and at doubled, So, levels. from that The and their higher still patient excess

broadening opportunity We call promising physicians the products have huge in seeing base launch a and provides for well a Cologuard, broader of also That this to selectively years us we other this them, most hereditary like doctors to as really So, them cancer growth now bodes of multi-cancer base. we're group for the we'll can order through. launch come. for this

Operator

We'll take our Dan with next Brennan question from Cowen.

Dan Brennan

Great. Thanks, Thanks call, for question. just you thought could Kevin, obviously, guys. about Eclipse the you've get data net-net, prominently ask spoken I on by but time coming, we the expectations, I'd pretty with next out. the to be the

Just and wondering incremental be thinking update the you scenario Cologuard scenarios us anything scenarios? the kind react can will how and in Exact of kind different of versus positioned how how depending about upon you're if of kind will

Kevin Conroy

colonoscopy Equivalent let remind blood challenges seen test, reasons. the Cologuard. and screen of then test have the and you comes you in blood Bar where for that's accurate and efficacy a people guideline complicated -- be market Cologuard and approval in sub-$XXX. test which cancer is into for And a as and with there's -- screening is very other tests, a Pricing bringing that claim offlay question does Well, are that introducing fit leading data high. less unlikely. terms colon than drives likely blood screening given are we've there is approaches. one And -- when challenge There blood it to commercial coverage way that tremendous challenging the of a the any inclusion, to main the new are paradigm. the colonoscopy me to of many is five FDA cancer. established to performance Number language

challenged. market So I the think is

Our here. changed view hasn't

appropriately. be test to blood we expect a have We that priced

able a order system a if will it reason Cologuard be test. get for for any have making a ecosystem, to team, a not they our into really infrastructure to we drop test blood docs IT opt commercial We in and patients lab use that where test easy to to

claim coverage, And of terms There's multiple that cetera one. et probably of away. to three so take in -- will take Medicare approval. output language, likely that's There's USPSTF's getting is years. four will view our data. most FDA this next step years years Data is

Operator

ISI. Vijay Our with next Evercore question from Kumar comes

Vijay Kumar

question. grow heard when burn taking guys. one profitability. assumptions you adjusted to XXXX And path are high of profitability, consistent. years. Hi, thanks looks Are assuming grow margins pack What's an your next given of think [indiscernible] assumptions has revenues margin about some I rate free set? cash two it gross Did gross for mean, being the and Congrats low had over Jeff, for I the for exact we're your the Pure updated comments like my growth EBITDA the make to you, OpEx at teens I your at flow on looking on on reasonable? singles inflation. changed. sense the that year? this to those end your Group

Jeff Elliott

grow. more growth, and with it. firmly the more awesome do team I be up gross are profitability how towards expect some the over the update significant I our that our of cost of to incremental in that made flight or to pointed inflation the we team the Thanks, lab with full we job will this just efficient before, progress on fixed came XXXX. said top-line. is -- labs. This doing to, I have new a projects and now last And growing leveraging of headwind that in what margin start Everett And Vijay. it and EBITDA adjusted but ideas And for year great forward, on will get This know revenue going again. are pulled together, as it to say we committed is Jeff. I just we want we've to in nice where near-term period. drive help here wage improvement top should Inflation us improvement relative automation the

in some G&A expect marketing do at OpEx seeing improvement. with gross coming the I of even of you're the more discipline. that line, sales It's the So starting look And years. then and margin

path about So the very forward. going here I good is feel

Operator

Arias We'll take next Dan question with from our Stifel.

Dan Arias

there? submission Good time just at maybe data And expectations? approach the the pipeline. for sounds with afternoon, way. there's generation. assay need XXXX Is Starting Kevin, then launch that guys. have data Thanks. X.X. for that like commercial there's Cologuard all MRD current given a line a It some the and mean, on in you dual maybe couple the picture the the obviously, I on on

So time together, Should development how less tests are you allow they thinking happen? to more about is on? or arrive that to not or path lines those the the are something Thanks. that's is going that

Kevin Conroy

call we what or X.X Cologuard Cologuard will a is XXXX – Our possibility. next-generation

not a the test as will to things to determination bunch upon it to made of do you that whole test when launched, yet be flow. have depend We that a make performance. there obviously are then internall,y will need And

So not new code we and the and coverage. or need affect a launch may insurance coverage CPT will timing Medicare the that may

You to make all sure locked. of is want that

So you billing smooth a and process switch, the patient process. you when have experience very flip

this In likely towards are us seek – MRD, sample to as we a launch for reimbursed is see not in next us of it's one on we an access allow product up inclusion the MRD, very year. reimbursed basis, year setting tests this most nicely, developing a [ph] space we have then have of to getting of a a couple LBT couple – important sets terms work will and status that

Operator

Goldman with We'll take Matt Sachs. Sykes question our next from

Unidentified Analyst

in of office the print. Matt. sales This on for comments about to any guys. past your is time the I are the physician Congrats strong two percent ask tell directionality person -- any us Hey, on of pre-pandemic and on getting access years. there? reps access hate Dave the office But Could for you millions in

Jeffrey Elliott

that talk seeing being is heard Yes. of in since one, staffing setting. too. I'm talked our We've unchanged last just relatively care one this the that access the shortage Jeff. call, critical I'll this provider companies take isn't about newer you've the about you're health and -- a sure dynamics, This is

So effect access that further. has the

say making where what sure So helped you're our it That's half year. other in ways growth, health the really probably relative second that the and the that providers, growth and of keen at here pre-pandemic good on to that partner systems finding including are to around us XX% deliver what's we a of that's and I XX%, and team is pre-pandemic XX% call. are creative Everett talked would some levels. and about last we upon

Operator

We'll Patrick with next from take question Citi. Donnelly our

Patrick Donnelly

there. Thanks. following Maybe on up that one

the the In second in of terms of half. kind improvement

basically in discussed? down momentum. that think you've Typically, terms what the number figure to would seasonality better. I on bit why is way did of that number better little of you into moving be implying the a with flat kind just XQ of about Is you XQ working Obviously, kind XQ Thanks. in few Cologuard pieces baked conservatism building talked is your to XQ Cologuard a that from guidance specifically? sequentially the sequentially than trying Just out as factors XQ,

Jeff Elliott

I based Jeff. is view the say, end is on this the just guidance where year of we'll likely everything would the seen. Yeah, we've

bit. at talked grow, last about guidance couple access see you likely of calls, I to the pattern to continues going shifts base of Cologuard the the business trends little Your part back look of if you're out of is that as a other seasonal – this seasonal that I Historically, would there, too, trends the that. to that the [ph] stick but There's be lands.

has what that's the lot Street think I a of missed.

think course that the gradually just would had in it's improved this and I assumed have of quarters, So over Access we EXAS year. between prior historically,

now. of Now flat balance year. no we're the rest saying just it's right we to the be see We're to but in what this the over EXAS baking maybe it improves, we're doesn't, change guiding to year. Maybe likely it of for

Operator

from next Research. with Meehan our question Jack take Nephron We'll

Jack Meehan

afternoon. Thank you. Good

LBT Kevin, as competitors one an in your May. maybe a for cancer, is So Everett [ph] your biopsy liquid -- of well, one colorectal or launched back of test

obviously, accounts super may the be field? you certain saw seeing biopsy liquid I may wondering very you if impact or interplay was and but about in the and not at between Cologuard So early any what days,

Kevin Conroy

the cancer to a quarter. there be from over impact quality credit, entrants could don't challenging during a screened aspiring into to way colon other any any conceive screening, zero tests in count would that uptake because unlikely that measure we We're XXX,XXX aren't quarter. don't that the in just aren't see reimbursed, saw it's -- that We impact, there towards guidelines people that of significant impact that

grow several a same Really, as years again, in they to the if throughout that to a and cancer achieve so, level sensitivity at expect have the of of colon studies. near-term. if they least cancer advanced FIT think and adenoma We And beyond, there blood tests, detection the from continue next screening, role no. in than will and seen validation we role have pre-cancer is so, that better test have these case-control just we or and a reimbursement not tests widespread

Operator

We'll take our BTIG. next question Massaro with from Mark

Mark Massaro

early the Hey by $XX rough understand for divested adjusted you profitability to Clearly, wanted million you on to investment on the the that GPS the have guys. in But I Oncotype you one investment was XXXX, then Oncotype for to I year. I million I of come help wanted that expect first Thanks guess is when a I to you how run significant could out. as $XX I in profitability small investments And to $XX have use to topic. Prostate, business. MRD. around you taking million just in guidance rate multi-cancer secondly, Prostate, that for part $XX detection, the the the confirm to million? question. your achieve you EBITDA Jeff, Maybe lowered significant revenue some laid two-parter, follow-up And

I -- comments so significant that's prostate you I to DTC, any guess -- in because also you're sales And then, are your investing item? expect pretty the clarify you a maybe do force? I'd sales what to obviously, since is, divesting be continue GI line force, And want on

Jeff Elliott

this is Mark, Sure, Jeff.

there. the that We in I that one, say range. but up, ballpark you're right break think, the in right On the don't you're they first

we I the very again, we are committed being On second profitable XXXX. mean, in -- look, to one, are

this business, invest can priorities three our patients. invest in growing its touched savings, can on we colon keep to Our and those Obviously, Kevin and confident things. cancer impact And in key keep serving the we mantra is that. highest more I'm business so internally MRD as gets profitability new in better. multi-cancer. market. We've even to incremental products invest such We of The to foundation that these bring lab, sales don't have benefit got this IT, force, we a we which foundation to incrementally from from having strong grow.

So forward. time to on I sales But offline forward and I'm and the confident. driving team I'm of happy look continued to math. G&A our some marketing leverage the spend going

the on improvement And think I a then DTC, years. bigger yes. in coming will G&A be

We continue part future sales GI the We'll these good. investments to today that. in of for a the will because forward, crucial going make continue to The the products. return a is other invest in for team of business Cologuard very is whole series

Operator

question We'll from next take with Puneet Securities. Souda our SVB

Puneet Souda

Kevin, two Jeff. for Yes. me. Thanks the question. for simple taking Hi, ones And

the commercial as of any in the follow-on coverage Jeff this remind colonoscopy result approach for on wondering force PreventionGenetics. for then, one And wide And by a just CMS payers? there of coverage colonoscopy. I'm of change us among one marketing is how diagnostic the coverage if colonoscopy? First you sales follow-on of full can is on

a the by your the peer one from diagnostic a-third. marketplace. seen their of is have I We in disruption heard competitors workforce reducing

share-taking So of talent? just and terms you. Thank in opportunity gain wondering perspective to

Kevin Conroy

that colonoscopy So or for follow-on Cologuard uniform pretty about next until completes is deemed change test there rule for proposed cost be share a is a positive that CMS no year. either effect CMS says has diagnostic finalized XX% won't test, patient -- colonoscopy, That's a patient's go so a today. there stool rule it should a such, And coverage, a screening the when test, this And FIT journey. because colonoscopies. if cost as that a sharing. into or should Today, screening be a

will. not the future, So, in out no, this, but we today, marketing we're

Jeff Elliott

that to to just color And one. add some

that. on asked You commercial the side of

seamless commercial the to of -- Department plans. the that uptake Labor regulation goes follows applies So

starting essentially will sharing the January So patient. be diagnostic without any this universal that to colonoscopy cost is in

partnership second So really the something highlighted advocated there. time. long big We the wins, we've we're in opportunities your the On quarter with PreventionGenetics, ahead. and on of lie that pleased a for growth question amount the biopharma

new be and the all capabilities this there. acquisition happier with So couldn't

serve testing. The foundation kind for type plan as So strong Obviously, launch with got later the into really goal longer-term we've hereditary Cologuard care time. cancer an the entrants and We of over in oncology. the primary in pie, this especially do to products future it there future is today does year access early foundation channel. a a grow

DX for a relationships opportunity is the with years over I Breast. we've build the established think Oncotype to us this perfect the past XX-plus upon

future So really about the opportunity pleased here.

men think it's technology. getting innovative and women about to I growing primarily access this more the pie, women,

Operator

We'll take with our next Kyle question Canaccord. from Mikson

Kyle Mikson

for Thanks talk I guys. the BLUE-C. Hey, just about to want question.

to submission. enrolled power you So Cologuard out the put update to patients enough

remind arm. that the CRC lines for And expected, Thanks. the test? I of path you're think blood to long the going us there but I that was guess any time continue how that for to maybe will just were blood enroll take? then

Kevin Conroy

don't -- a test this people probably a XX% blood of Yes. That's or get who a collection Unfortunately, And Kevin. it's to draw. don't special a is that about This stool requires blood not complete center to not because XX% -- separate trip arm. because willing is blood a they it's needles. like to are

increases powering we so for which entire study, the And That's more months. patients just is have study why great. the of study, continue it the more a that's probably as few the we in

study. wanted tests the we if We're Cologuard next-generation just finally could that patients. -- shut ultimately for down when to will that to haven't blood We Cologuard. the opportunities study do afford that We're in lock determined we that thrilled position about we today. the a are We excited

Operator

Craig-Hallum Nowak take our with Group. We'll Capital from question next Alex

Alex Nowak

Great. Good afternoon everyone.

back portfolio Going the strategy. to

things flow, Sciences with strategy, need what of testing do to own call with that that relatively portfolio I'd like a cancer doesn't phased you that Exact cytogenetics. have One succeed modalities replaced out pathology, typing here you would fish to eventually exact Do old-school the those menus have? task see getting is neuro or bread-and-butter commodity ultimately like broader

Kevin Conroy

out successful like those our new We the is. by will need plan be tissue be a The answer. that to flow different tests replaced going to answer And questions fish business it, we're no. molecular strategic because we successful. do of plan, that is be and are or about always a need what laid think excited tests that tests, business rather and don't lives thing time. answering We've for our strategic it's don't patients. those don't plan tests molecular over to depend business right that to We do We're execute upon kind that

Operator

presentation. Thank for today's your does you this participation. And conclude Thank you.

You may now disconnect.

Exact Sciences (EXAS) 2 Aug 222022 Q2 Earnings call transcript