Exact Sciences (EXAS) 9 May 232023 Q1 Earnings call transcript

Company Profile

Participants

Megan Jones	IR
Kevin Conroy	Chairman & CEO
Jeffrey Elliott	CFO & COO
Everett Cunningham	Chief Commercial Officer
Brandon Couillard	Jefferies
Catherine Schulte	Baird
Vijay Kumar	Evercore ISI
Andrew Brackmann	William Blair
Jack Meehan	Nephron Research
Daniel Arias	Stifel
Derik De Bruin	Bank of America
Matt Sykes	Goldman Sachs
Dan Brennan	Cowen
Puneet Souda	SVB Securities
Kyle Mikson	Canaccord Genuity
Alex Nowak	Craig-Hallum Capital Group

Call transcript

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Operator

Thank you for standing by. My name is Jordan, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Exact Sciences Corporation Q1 2023 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker’s remarks, there will be a question-and-answer session. Instructions] [Operator

is of now Megan President, Vice me Relations, Investor Jones. With

begin your may conference. You

Megan Jones

you for Thanks, quarter joining Jordan. for Thank us call. XXXX Exact conference first Sciences'

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

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

Our actual our in uncertainties Exact Sciences results GAAP Both Discussions SEC different through of press may reconciliations are associated figures with our filings. website. figures descriptions from and earnings such of to be our can risks included and statements. are be release materially in accessed available and non-GAAP the

now Kevin. I'll over to the turn call

Kevin Conroy

of mission quarter their I'm team, dedication incredibly Megan. our delivered. proud they to Thanks, record our the and

During our adjusted the and We're free positive next for year million grew $XXX to year-over-year first now million. revenue by expect of of year during million revenue our We flow full raising ahead turn quarter, by guidance previous $XXX core EBITDA target cash or XX%. year. this $XXX

continue opportunity million make still just change in with the cancer screen people. we we way quarter XXX,XXX We're than are cancer X.X up people the detected an potential. The to built have In launch, first deadliest X.X is way impact first two fourth people. a U.S. its transformed screened year, the number Cologuard will more full Cologuard, treated. X,XXX million XX we we've year It the has the And platform to for screening. we've and not X starting Cologuard. launched full This we to tested first tested years to date after quarter our of million who realize with people that we XXXX, to already the the people. with took huge screen In

the is disease generate an life-changing Exact Our focusing this highest the the tests test patients and build an to on biology results durable the use what of science, brands of customers. the will unstoppable level of At of enables develop the means in and margins experience. based portion we creating understanding first these innovation and demonstrate profits a on those growth, in gross Sciences, clinical operations A investment evidence diagnostic industry-leading quarter deep for the necessary power best our with advancements, customer deliver an support Combining amazing growing investments wave engine. of revenue profits. of next and strong supporting

X $XX the $XXX adjusted from colon quarter of test tests. therapy delivering Cologuard total in next-generation to and selection making of tests, our year-over-year, million Cologuard including number million more million record first improvement toward cancer a results, our study highlights and pivotal include support generating completing OncoExTra, blood BLUE-C, an EBITDA, launching Other than enhanced progress our

results. review first now will Jeff quarter our

Jeffrey Elliott

Kevin. Thanks,

and from upside a additional to Cologuard from with $XXX million of momentum billing XX%, business increased screening our the $XXX First made season adoption came year XX%. and prostate of quarter sale revenue grew Screening million our broad-based patient of last exchange. revenue grew systems. majority foreign of XX%. COVID mild million revenue excluding $XXX revenue Core in The benefits of testing, enhancements and relatively program flu compliance

XXX,XXX. the professionals During Cologuard, total new ordered the care to health quarter, over XX,XXX bringing

XX% COVID $XXX increased X% testing million. Growth sale $X our was the revenue to revenue million. FX a X%, of to decreased million $X excluding Oncology prostate and headwind. Precision business

GAAP made to leverage better-than-expected about million, margin $XX securities gross margin cost benefited margin. driven and an systems. of in improvement We was intangibles gross acquired and $XX patient of Cologuard $XXX program XX%. was $XXX by net million. excluding million, gross GAAP and margin, from was with the XX%. billing improvements revenue Non-GAAP compliance amortization of fixed quarter cash EBITDA First Gross Adjusted ended was million. our loss and the the lab quarter

guidance. to Turning

We for COVID We year. million $XXX $XXX million million between second for million $X quarter million the $XXX billion the expect and between assumes million second quarter, the billion and $X.XX $X.XX to and during for the year. total million the $X.XXX revenue $XXX Precision the billion the revenue $X.XX and and screening after for year, discontinue million testing $XXX and between of $XXX million quarter, the revenue Oncology and quarter. This plan for COVID for revenue second $XXX and billion $XXX and second year. and

year, and implies the XX% XX% the core For growth revenue growth of excluding exchange. prostate in business foreign with and X% Oncology, our in screening this growth, sale Precision

$XXX We then are to months now expect between cash flow million year. turn original during year full year increasing year. our the generate the million by $XXX and million free expect XX for of our next and EBITDA target flow positive adjusted guidance positive and $XXX We ahead free now cash

the back Kevin. to turn call now I'll

Kevin Conroy

XX accurately, Thanks, XX and privacy to the of been home. low for age only easily XX own Screening problem persistently and by been get XX. age solution are colon when from start unscreened intensified moved million have to There is them people million Jeff. addition This cancer screening Americans population nearly their to recommended the in Cologuard for age the of rates screened the was has decades. the

everyone measures. increase represent is XX We the systems for half colonoscopy are for Capacity to opportunity address gastroenterologists more are than partner would years to quality U.S. us is market who due related the colonoscopies and screening recognizing alone. screening take and screen to the in systems, with today rates. Health which estimate to rates it fixed relatively with screening their health motivated

workflows. it They their essential of part in and rely on Cologuard as toolkit are screening an their embedding

electronic than connecting Exact XXX more implemented ordering to systems have health interfaces, We Sciences.

largest preventable disease. about the versus practices is in and Cologuard continue smaller systems independent this Our eradicate to Americans market XXX Cologuard more show data in screen help systems. health will that XX% higher share

for portfolio more Oncology year. than Precision decisions guides cancer patients Our every XXX,XXX treatment

Our Oncotype as breast our and they A their test determine test late-stage focus options. education and has high OncoExTra patients quality Oncotype physician benefit whether best DX helps treatment on care. patients early-stage top-tier determine evidence consistent cancer chemotherapy from DX cancer helps clinical tests, of cemented standard will

working making tests. in pipeline life-changing progress molecular durable ensure most screening, molecular colon and and and such international XXX new The cash of this everywhere team have as to programs, flow. generates early of three OncoExTra access is detection, high-margin Our tests impactful to supports DX our information. Oncotype disease. test adoption This residual people women We're cancer residual disease revenue multi-cancer

track on top blinded the line samples, to trial our summer next-generation and approximately us In for goal colon sensitivity. DEEP-C we cancer on ran specificity BLUE-C data our and next-generation pre-cancer results Cologuard X,XXX from our recently screening, Cologuard share this in improve confidence test. are give We to

As a supporting Cologuard's approval our reminder, study XXXX. FDA in was pivotal DEEP-C

class of year, second provide to detection, further prospective clinical will we validating comprehensive evidence position. multi-marker data value this multi-cancer additional study two unique The valuable plan approach. and sets case-control In supporting share Cologuard's competitively our early next-generation

to approaches in In the and before molecular additional cancer. detailing our available enhance Conference algorithm Association making residual approach tumor-agnostic our of share tumor-informed evidence American generate disease, or our at we data informed We tumor last Research Cancer and MRD, colon plan month.

continued best We level the the a science, built their support returns will care broadest, understanding diagnostics deliver continue biggest highest to on margins, innovation customer to our deliver growth, built we've will gross deep developing most of profits. to cancer use, in the supporting This and leveraging shareholders. capable in tests the will clinical generating engine growing This based us revenue solve the platform operations and on allow disease evidence and the industry-leading cancer of and problems experience.

to take now questions. We're your happy

Operator

the from first line Your Instructions] Jefferies. [Operator question Couillard from Brandon of comes

Brandon Couillard

what seems Kevin, terms balance say at And impactful or it we would orders be we just your you the driving quarter revenue of things that the the year? of in if afternoon. the Good for guidance point of the being next thanks. quarters at of or are where two Is imply in conservative the revenue year. the screening were over April is the most this look you that one or the balance Jeff, for March by the first Hi, think year, outperformance. to in flat three would informed

Kevin Conroy

Why over it take then it it over to Jeff. hand hand don't I who and to will Everett,

we've nine the It's over made over few tremendous So the in there last it's also drivers years, are that investments that just have just the Cologuard many our seen strength quarters. execution and past testing.

really wonderful, make to the to it's you team hand this work. it entire So

the into exciting and see many R&D who commercial our team, the These business. company, team, lab, product, are and into Cologuard, digital an the operations, capabilities, marketing It's labs, done, to prevention our team brand brought across our our have building so entire Everett? strengths just investments analytics. genetics Oncotype sales we've the in incredible team compliance so the innovations

Everett Cunningham

Yeah. I'll to add color some that.

few up. Kevin around I'm over been investments out is, the one in -- just messaging investments have that confidence I've seeing And the the organization, made the years. the the momentum our and clear over the that so As our we've of is quarters said, customers. products the many with I'm field pick last thing in sales seeing they

we now can quality, realizing, The especially mention with partner that them. metrics is to around I'll screening They're do alone. can't other that and know in it customers the hit thing The they and customers. space there out with other they trying screening are the

our that the over So up quarters. seeing Exact how organization metrics, pick they those Sciences with last and to partner we're few hit

And is just the top around last our targeting customers. thing around I'll our mention

Kevin people a I'll they right that have volume. the me, statements, as health the And our over systems his the right and focus message drive we're last they quarters. again, the of I that few on calling with ensuring a systems, it to health we that can up Jeff. and Our in right to lot with picking being, pass partner screen the ensuring said see

Jeffrey Elliott

Everett. Thanks,

at phasing just we've over We question growing over revenue. into billion for nine and built So guidance, the of in again, years. Brandon, launch a here on -- I XX% would over out nine what years on $X.X take back Cologuard built step we your the to are look here year. the And

by well top guidance QX of delivered. we feel quarter north the raising really beat. So about the good we the line We're

the year. to speaks that the optimism the rest for So of

is quarter. phase keep two in first On the around things mind. to in, One really

The be own underlying about. momentum quarter. was very Everett had it expectations, of that a Kevin talked our internal just quarter First strong (ph) majority that

some there that our benefit couple of a last things mild flu earnings as help was smaller that, a to about And did from talked We we season, it also quantify got but in impossible call. contributed.

billing our in systems. benefit talked a went carryover also We We our in of year. patient QX from compliance place Those and bit got that. about little benefit previously to the in enhancements from engine last

typical of I the the rest When think there's of summer now, a seasonality. year

that. fewer go incrementally that's and on summer, to there's from the to in the so throughout quarter ago dynamic growth lay that, COVID therefore, QX new top one year, summer a second seasonality. impact of years between business, primarily out three -- for physicals and This That's sorry XXXX. third hurt During QX related Cologuard the there's people year because of and the less quarter

that forward takes from third of from to because ago. the XX% about revenue, brunt years that three somewhat of rescreens year and impact XXXX, muted place second are is the this quarters. in flash rescreens of Now when The Cologuard contribution COVID

you expect phasing from year would year. a this So standpoint, you flatter -- expect a

the now, year. you rescreens rescreen this go when eligible newly ahead last now, from reaccelerates patients, X.X as year eligible because next you to year, same three-year Cologuard year people is million However, next which jump having

Next you million people. to year, up jump more X.X

should So year. accelerate that rescreen contribution again next

Kevin Conroy

And not And XXX,XXX too of XXX,XXX here. of Jeff, about XXXX, XXXX, QX QX me tests. Cologuard if to there tests. about there referring in Yeah. you're And were numbers were about nervous Cologuard

our occur. that has addressing so asking the everything help. back we just the team the entire the So us going the team fires cancer in to for is some systems And biggest working artifact But wait. for and R&D that teams has product team one-time about is awfully that I the And occurred up that Exact commercial excited implications coming to and we're have is encapsulate if a are doing we're continuum. health bounce and on can’t strategic impact. lab is This That's could year. and will change at the exciting Sciences, every pipeline with it that

Operator

from question line Patrick next from Our comes the of Citi. Donnelly

Unidentified Participant

million. EBITDA up Hey, $XXX you on for Patrick. just moving got Jason Maybe one the on adjusted guide

the quarter, assumptions of if strength in about embedded wondering year. can you that Just the the for talk the rest

gross declined OpEx GAAP Thanks. think and I quarter the the slightly margin. just in

Jeffrey Elliott

Yeah.

could team for $XX what We've point So talked with exceeded Kevin we're pleased building line to this you're This foundation for original the is been back million, deliver foundation for growth, about. which first the seeing nine foundation, I'd expansion, it's cash guidance Sciences that Exact the quarter what now. year. margin a allows scalable, it in now, at robust the years and robust generation. flow top

in You're years continue should and seeing the to to numbers it the come. you it see in

So we're in just raise guidance to with That how pleased that EBITDA first one in. quarter. us quarter the unfolded million, by the $XXX allowed

EBITDA year about you incremental when I would highlight the now. think about margin adjusted this The So the -- incrementals. is XX%

of efficiency this So platform. seeing you're the

assumptions the for on no gross is, we've baked a GAAP numbers. the we in margin still the there line for mid-single And XX%. digit basis in to change assumed change talked range. to OpEx, What around top No

seeing top leverage the this now cash really platform deliver margin gross for line power can you’re flow first free unfold, again, time. and expansion, growth, of we So OpEx the

Operator

next Schulte. comes Your of Catherine from question line the

Catherine Schulte

Thanks of commentary Cologuard saw and trends throughout so cadence guys. in orders talk and quarter for on guess to May question. could April you the I far? you the Hey, just any the

Jeffrey Elliott

our driven is This there of typically Jeff. intra-quarter the team at by commentary, hear but one. speaks just to which can no take the Sure, broad-based to don't disciplined, driving this advance a week comments broad-based quarter, week on job Kevin. into the kind Happy the did is throughout -- fabulous commercial of from is that campaign. big to the The was staying you upside majority the of momentum that quarter. on We week marketing of growth, one-timer end continue so get the

So by by, here, million. came like We're raising to quarter strong guide that this we you was it, one big beat look not the bottom. million. thing And just There's guidance $XX obviously, when a top at call $XX in. million, really $XXX

to speaks of the seeing that rest we’re the the in optimism and year. that So for numbers the

Operator

from comes line Kumar. Your the Vijay question next of

Vijay Kumar

Hey, guys. Thanks had Kevin. for a taking my question. I two-parter,

in about seeing penetration comment what at one here are we health the your QX systems for on first by can Is The early what perhaps on, Any or that uptick you Cologuard QX of looking and where physicians percentage systems. generally at on stage are? we health or you health numbers. are we're employed revenues and sense systems talk of

Jeff, guys And $XXX the you achieved guide it raise? revenue given for the then second one, this half on Why the $XXX into QX. guide. in QX EBITDA The have of my million million, to looks wouldn't sustain you it like back half

Kevin Conroy

me of start, Let part first the take question. that I'll

you hyper screening the dynamic dramatic that to their colonoscopy out The systems holistic reaching exists get have increasingly health they to challenge screening through a fixed the ordering are colon a health when people systems the to have the is address in seen about infrastructure. measure. population typically to rate. you And us XX us increase So a add the and year, electronic focused halfway help cancer on way ask in quality, quality million

do a of the and electronic Today, the deeper we That ease that health largest if getting better add you use those get them on keeps they have Everett, together almost with two-thirds fuels ordering data you and to implemented systems. focus to use, then XXX resulting. over of the reporting, health time, of that? how the systems relationship want

Everett Cunningham

that increased systems health think the the we've think When our our made. couple years, towards and past management Yeah. about strategic our execution I of over systems. We've top of I account health investments

the Kevin people way the we health way on from the very to systems. disciplined calling for are health review a down all way have all We systems our that plans that

I local And the other health strategy. a thing would with mention it's systems,

that system all that's not execution system, embedded everybody leading seen in the have is the the deployed that health which pull-through because physicians only can the those calling health we've team and strategy in We affiliated together representatives systems of better the health on execute to that sure is we C-suite of team, growth. way of making but one more we're with

Jeffrey Elliott

Vijay, range in it. it's the is the from up a five Cologuard, I of of that percent standpoint revenue for number three XX% rest take of ago. Jeff. to health it where systems years nicely From for was, I'll and think say,

key So health a probably the we've takeaway and there's systems, ahead years Overall is team us. is job for has done Cologuard there. a long for for a in on here, unscreened, bit of nice range. with people talked the ways higher. years about penetration the Cologuard of XX% rate million Kevin But strong XX to got based here what growth go it's And

on $XX quarter than million we gross really of our expected. EBITDA in number, the due that through first expense in better part expected. part to strong the we first question thanks margin That's due than level the that adjusted also Your quarter, It's in came year. to phase in and results the operating in for assumptions way the noticing higher the revenue

for Our throughout to call the year. plans us hire

you're for that's part and the can't to the going it EBITDA year. have multiply why adjusted so get not the And first to -- quarter times of you and number take four

to to to I'd unfolding to generating is margin up accelerate that time One the Also, here we're accelerate the our path where some is the highlight market. is investment to of team a the our now point programs. MRD. we've efforts and chosen incremental R&D hey, here That have said, reinvest market reached right

So adjusted just QX phasing you that's holds. part take and EBITDA, level that assume can't the why for of

Vijay Kumar

guys. Thanks,

Operator

comes William Your Andrew line the next of from from Blair. question Brackmann

Andrew Brackmann

around get the you what bit us samples the summer, sort that more from just from pivotal? to you taking for readout X.X questions. level to Good maybe this previous studies running commentary -- data we of around on this color you're those I DeeP-C, we just running to previous those top then And to saw saw? guys. can how as guess against of a us I line closer just about in here and Thanks. sort results compared give degradation Kevin, thanks any Hey, Cologuard that afternoon thinking the appreciate set

Kevin Conroy

all that us say we data into is, release going confidence BLUE-C study. the The I And -- Andrew. the gives data. Thanks, will will

is, to ways. Cologuard the remember, of if look a you all version in two comers take in Specificity of improve is goal that main is is One you -- the current the As Cologuard calculated specificity. at kind different XX%.

to is XX%. goal Our improve that

If we what only people polyps, you small non-adenoma at off with look polyps, which still no signal. some call would colons, clean send

If we would greater. or be XX% you then to exclude the expect those, specificity

So better equal – we and than to cancer great be hope precancer or would be result. also the – remain that’s to be improvement we a – see expect sensitivity That to to we continue to sensitivity Cologuard there. an

drive samples to we know, ran at want that of access just so a out that study home And had was the you we us we we that didn’t them is for study, the to blinded. development was the when available that which, evidence from you’re reason of against the samples. and looking samples as XX all all very, any second and very the important. we prospective and particular guidelines didn’t have select any point, from study gives ago, years of I available all But Andrew, had ran that against DeeP-C

Operator

from question the comes Nephron Research. of Your Jack from line next Meehan

Jack Meehan

as could on, hoping Just at great. like if a just in growth I was the any little international for I XX-Q, about the to what's the talk moment? it looking was going as you looks performed offset, U.S. be you're was Just bit afternoon. the Thank well? would strong. that Oncotype the DX really was regional how the at you. commentary quarter wondering dynamics seeing Good that

Jeffrey Elliott

When Sure. about at think north share just And Jeff. strong think the is growth question. for U.S., I to the of growth Jack, our you given there, thanks in somewhere the is This incidents. look way the market

year. So per incidents is X.X% U.S. growth around in the probably

to So somewhere is the about digit for it. to in think kind franchise that range right mid-single of way Oncotype low the

rate there is range. is story. Internationally, the in different Internationally overall probably a the XX% penetration

growth big The expect strong to market, the would mid-year. Japan which growth expect we of So double-digit internationally. come launched for we years next driver be in

largest open second should that up market the So the U.S. outside

can of So there's still runway be that given a but dynamics new a choppier the online, markets little one coming long ahead.

opportunity than about for tests exciting broader pipeline most comes is, talked MRD. Oncotype the even you the the of some the market. to that Oncology perhaps term, much Precision know, growth Longer as That Kevin market larger

we’re therapy forget broader driver selection that’s our advanced looking platform So And have we umbrella, the growing don’t a broader also nicely. that PO is forward that to. within big that

Operator

Your next question Dan Arias Stifel. comes from the of line from

Daniel Arias

towards mean, obviously, groups a out to the expressing be I'd Bravewood get Supreme is coverage. handicapping I Kevin, wanted little you just you and up the sounds it's in are at it years? potential about the relevant Even finalized on a this your to that sounds it's think ask to there. It some But Cologuard, has look all? to just of guys. could Court jam out bit what you its out looks meaningful risk pricing it How are you like for the afternoon, think tests. like coverage, I recommended factor case and Good like for USPSTF it are also is (ph) working but there. here don't to love if and way do coming the continued these nothing industry works hearing? confidence the thought

Kevin Conroy

Supreme is have main preventive that going incentive impact reason those think HEDIS quality the the recommended structure into intact in strong still there screen do services is around And anything. I the and very, Court decision preventive regardless services and No, what that, doesn't on remains is since the of negative measures, the so Supreme tests bias that tests, Court systems don't that that health a Cologuard. a And Cologuard measures to with are to change might very there. is embedded people for

Supreme save the whether of of than positive. colonoscopy. real the Health Court terms to less of love any to change They Cologuard payers They benefit a their going cover case. expensive money Cologuard budget and this view year in given in because that's about aren't

the So I I impact Supreme don't in us. leaves law hope Court that think that, sure place. that's going to

I -- think Cologuard an have process but certainly arduous that through. other come it's very on positive tests impact may down not went to Cologuard. through for it's that the And going

are Policymakers even that's works, move to away. ways through that whole arguments guideline looking a on members. in health go avenues of think at is the USPSTF a the don't USPSTF oversight in And the plaintiff's evaluating think DC recommendations. I of in lot reform the to going part in but case. appointment I are There's to critical care ecosystem relies

Operator

Your next of question from America. from of the comes line De Bruin Derik Bank

Unidentified Participant

on on and is for how Where the questions the for to Thanks I XX Derik. on that This Hi. to really the you of solid saw you some offer to was taking what group. out color quarter if expect quarter. the XX posted could X% is wondering And a penetration play you balance at [indiscernible] that to compared for of last and contribution this year? group you can kind quarter? the you talk congrats

Everett Cunningham

Yeah.

us to cohort. about I entree to is talk it the what love gives So the into about this really good XX office XX a

growth to of ours in XX that making reason strategies, sure XX area done to We've to full priorities. focus been not but are XX couple proliferating last a delivering XX. executing why consistent the years. with our we're rescreen line because a stick wells And good job we over the of We it's of on the

year rescreen rescreen, to be of mention And will this our XX% just revenue.

big going us. for the aware consistent are opportunities that to growth physicians, of our year. have do age full we So to continue that It's these messaging screening them the making and for new we're with

Jeffrey Elliott

This is Jeff.

penetration a fits said, XX%. Just this well. for age Cologuard Overall to no group. what person's add highlight really now Everett rate surprise, is younger younger penetration very And lifestyle been that really there to has into

line So ages. in all for with it's Cologuard

at the group the younger age continuing. So that see just it has, shows you we and demand

contribute $X we fact, you XX, of three In to years, expect the billion rescreens around just revenue. and out if of combination look

a is be it to for this us today, So huge driver and for will come. years

Operator

Matt comes from Sachs. of Goldman Your next Sykes question the line from

Matt Sykes

the back just is one in how system. Good it questions. new system a largest gain that going terms to taking the versus takes sort much Everett, my systems. independent Thanks practices? Hi. shifting afternoon. scale quarter. health talk you, of about Congrats maybe to of for Can infrastructure And maybe just market actually how health you and on of sort the for

different how points that I board an sort newer gone there's to infrastructure scale talk you're Can very many assume that kind after decision actually about enterprise-led brought would clients doing system practices. do? how the with health takes and independent maybe of of sales different you've than what you on and you've much and

Everett Cunningham

will, that an a Thanks health after for staffed, of that we of question. consolidation make to and we impact kind What you health pandemic systems. other are health well we've is feel especially if seen, we deployed the see systems, systems buying at health And systems.

in marketing in organizations the the on strategic earlier, businesses, in decisions them, that the they train We've call team, management on a said strategic materials made. them have genetics. not just but account allow our physicians, Oncology team are lot allows we because to I C-suite of call the to As but get screening, a in them this account which that's that way of Precision we all invested and managers it where those just of in of number prevention not

team representatives the In the the same and that the way on terms systems now. account scale, health I team with we're strategic managers structured of the are because love

generate at through highest and the is -- is growth. is so us health made something now level, when pull system So it decision that that much to easier for

to they are us. thing, coming systems that last the I'll just now can't said, And alone. know do reiterate health this Kevin that They

have, can we over to relationships have the seeing metrics, help just we're because that coming the they're hit percentages their get we've their we them momentum of health the us of relationships investments screening can so how that gain years that quality the we that for year. many last them hit at system And made, that and help and how we

Operator

of line the Brennan Dan from comes question TD next Your Cowen. from

Dan Brennan

Maybe for Obviously, get pull just of in profitability cash ahead, much Thanks and this of say, us path kind we of the remind for is timing? really sustainable. cash terms on But line positive. forward QX. you kind us and flow. progression outlook XXXX to as strong. taking look what kind flow how stronger in profitability questions. towards just that. free we trade-offs get Can wondering kind last could here. of the Do the of as you where get margins and remain Thanks. obviously, of Top we free of Thanks growth of beyond sense of expect the could some give Great. 'XX, of of just kind to to kind kind Day, I'm is Investor a you'll

Kevin Conroy

investing. way way, Dan. allows you're seeing building been We've much platform to profitability. a many What And generate that here the investing there point. in was of power By building What us because that grow something we've support years. platform fundamental the QX and saw along and the of a it's Thanks, turning the you is the been both investors very appreciate we're special. for

trade-offs have going make forward. don't So to significant we

we'll revenue do do bright investments, a our We're mission. do We to to opportunities to achieve position we now . to in growth if that. And right continue making in and Jeff? drive to we continue see a future. to invest want that that by

Jeffrey Elliott

look what's quarter, at this is the indicative So to first Dan, I come. think of when you

margin improvement gross OpEx. strong and disciplined growth, line top strong saw You

OpEx the to over total X%, of power a speaks platform you that of developed In XX%, the fact, that's we've period. down year nine look when at revenue

digital our IT can't the and get our to our goals to front-loading and us on platform to going right been But wasn't years keep cash allow things was designed forward, I years positivity, to scale like infrastructure just generating scale. efficiently. marketing comment investments lab, teams, our now. there goal future So this year-on-year. get and our free that through growth We've will sales flow pushed incremental and for

is that the So plan.

Operator

Puneet line comes of Your from next from Souda question the Securities. SVB

Puneet Souda

quarter on Congrats a Hey, guys. here. strong

old, the feed the in or terms Cologuard the that gravitating seeing of had one first This XX population opportunity you the a they just of the Maybe feedback methylation. dynamic if for a to test XX XX year actually. any of it old to in of give field So you're to is know look with I'll the and I help year to versus the sense and performance sort the at of there but from of to one more are XX don't too towards an data sort entering us this, the new keep colonoscopy, that's market. terms respect us there.

helpful those So can if points. it Thank color you. be would you provide on

Jeffrey Elliott

jump when the you in. start Puneet, Cologuard this may look, here, launched the and strong in diagnostics at I been is relative Jeff. across it's look others But to the board. demand history. want can has fastest

and to top growth. very still diagnostic over strong first generating $X billion line get The

So million unscreened. with the And to ways demand go XX people is significant. long there's that a are look,

XX get that a to to From XX same to closer to compare years, XX to XX about rate about achieving over relative standpoint, group it the nine XX versus talked the two took over, if XX years years. you and age we've X.X in penetration in

the there is So robust. demand

If two you that I in don't lot of and of days I a about choose commitments why of to age for a one off Cologuard. kids think that's I've know take outside group I'm with want family, it, now. colonoscopy. That's I -- got the this with reasons work. just

survey standpoint, call. the with DeeP-C From on and that. supports my that better. work Actual label today the performance demand It real lifestyle and a that was world in we've label fits the established Cologuard is into referenced

an in We The study this additional cancer prospective study designed have sensitivity. run age wasn't demonstrate group. to younger

we that something about. not it's talk So

So label, look group. success in to young forward label the and age is continued this the

Everett Cunningham

patient. the And the year messaging of old, They our fantastic. add field to in XX the are terms in said Jeff is XX I'll just Cologuard what

but You talk is privacy of from about we're only olds of the as XX messaging to just then screening solution your you go. perfect from A also home. effectiveness, standpoint are a a on standpoint. from can XX This lot the year not the selling standpoint, the marketing product, in do it a accuracy,

year patient, not very media through Our is customer lever then this we of old. but latest geared XX sound surround And to campaign in this towards MyWay terms digital towards younger and population. just and our outreach, TV that campaign, is well through our the younger social geared experience XX have messaging that

Operator

question Mikson next of from Kyle comes Your Genuity. the line from Canaccord

Kyle Mikson

the as taking quarter EBITDA. and great the the Yeah. flow Congrats here on questions. Thanks news cash well Hey, guys. for on

posters I'm next-generation where threshold soon you question week, a up a here. coming included as bunch just I on noted So given BLUE-C pretty this think sensitivity, baseline of just Cologuard. metric of past a that With about in precancer this just like XX%, like, the curious the importance the there. CBW of you

a [indiscernible] a the I to the that’s Cologuard. Cologuard [indiscernible] years, kind for I for obviously, on then over a in just next-generation been mean path the few think I game that's options. tailwind, you other be blood, that's of think. of emerging precancer mean, question huge there there's some blended. What's And one BLUE-C, Do sensitivity a going means but but

to that. hear So would be curious

Kevin Conroy

I'm path forward what? sorry, the for [indiscernible] what's

Kyle Mikson

generation. next Cologuard's

Kevin Conroy

Yeah.

Let me take that one first.

definition fits USPSTF. I within current think that X.X of Cologuard the

So an the on it already that's until just will current to the summer wait it cycle. the share included We'll Presumably, doesn't really in data. have to go technology is It be. another those through improvement guidelines.

a In terms means go medical I'll rigor From back of standpoint, of diagnostic that any what regulatory it's a the for importance product. evidence Cologuard we said. Cologuard PMA-level set, or have cancer. because level the to That is the device highest of it's

at typically, performance. the least the at FDA is need looks good regulatory, as to the have so as agency And way you this

which you ability You play, would degradation best, your way. hampers to or a product, can't commercialize in meaningful a that get secondary a have screening in at

sensitivity Precancer important. is

DDW precancerous Well, screening of abstract, how or can and removing you could of well, XX% our XX% finding benefit. see You the polyps. it the poster important comes benefit from of be? from think,

the if difference like It's of test at XX% XX% that level, is gained life at. XX%-plus on it, is precancer with on let's as gained a only a So the look group years the call detection. population is of detection population what years between, XX%. life and test inferior achieved a of XX% around you the it -- (ph) precancer guideline or critically important. XX% looks somewhere level you are this And detection precancer

answer the BLUE-C data new of believe looked the set impact question, I the that bar. the mortality. very has a what's new a which sophisticated models, potential They at screen to

blood what the of question Because program. testing just there. Now think claim if that's there's other secondary do at embedded think our deliver to patients I blood we second who an refuse And screening. is, we end test PCR our on with can cost, program we proprietary forms about platform, up built the with a screening

all forms health members, we have screening we patients screening. know who to our more who that Exact diagnosed. refuse Sciences think solution -- avoided family friends combination who at know better partners, system those a deliver We been with they've to people I and happen in other can of are

we're Cologuard test, is with going we as the are. a leading great So position in adding lives we blood think product, the to who help refuser know because a save

Operator

Nowak The final from Craig-Hallum question of comes Capital Group. Alex

Alex Nowak

on study, it focus Okay. Maybe a the BLUE-C a afternoon, be you everyone. Analyst have Do on, Day. the Great. on whether profitability. note Good MRD, lot to about end here upcoming going

new any with You shared to unveil But Day, these want do at a Analyst so here. the lot preview? earnings us what you far with calls

Kevin Conroy

good here stuff. have to the come you Alex, for

our seven activities, Investor commercial to our I it's So we it's team, years. Day products, lab, -- our haven't in, an can't the think, really show off wait had pipeline we

forward other in and really investors here you we’re bring So to hosting everybody to excited together and look

Alex Nowak

the for Thanks update.

Operator

questions moment. back Mr. further the this to final time. at There turn Conroy are for over call I'll no now its

Kevin Conroy

marks delivering there have the made make and joining supported point. Today's incredible me great in and shareholders our XXXX, thankful and many high being for are a that of Sciences of progress cancer eradicating Since me part who of announcement bring our results believed for pride us. accomplishments this in QX mission in We Exact team. results

Exact pride Sciences teamwork And come who in we Exact to fuels the the future. to in of takes a story. the all, look powerful delivering yet QX integrity, believe a again superior and innovation, culture best that we all accountability. in Thank members team results. you. Sciences quality, to of The Thank such leads forward team made that most is The to quarter you part

Operator

concludes This conference today's call.

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