Exact Sciences (EXAS) 1 Aug 232023 Q2 Earnings call transcript

Company Profile

Participants

Megan Jones	Vice President of Investor Relations
Kevin Conroy	Chairman and Chief Executive Officer
Jeff Elliott	Chief Financial Officer
Everett Cunningham	Chief Commercial Officer
Derik de Bruin	Bank of America
Catherine Schulte	Baird
Vijay Kumar	Evercore ISI
Dan Brennan	TD Cowen
Brandon Couillard	Jefferies
Patrick Donnelly	Citi
Dan Arias	Stifel
Jack Meehan	Nephron Research
Matt Sykes	Goldman Sachs
Andrew Brackmann	William Blair
Puneet Souda	Leerink Partners
Dan Leonard	Credit Suisse
Mark Massaro	BTIG
Andrew Cooper	Raymond James
Kyle Mikson	Canaccord Genuity
Liza Garcia	UBS
Alex Nowak	Craig-Hallum Capital

Call transcript

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Operator

Good day and welcome to the Exact Sciences Second Quarter 2023 Earnings Call. Today's call is being recorded. 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. [Operator Instructions]

to of conference Investor like Jones, to now President Vice Relations. would turn over the Megan I Please go-ahead.

Megan Jones

Thanks, Lisa. quarter XXXX Thank Sciences conference Exact you call. for joining us for second

and Kevin On today Cunningham, for our will Chief Conroy, questions. CEO, Officer, Everett and Commercial be the Financial the Officer. Jeff are company's also call Chief our Elliott, Chairman available

on exactsciences.com. release Exact quarter financial second afternoon detailing and presentation Sciences today's our issued at a news release our are available This this news website earlier results.

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

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

turn I'll over call now Kevin. to the

Kevin Conroy

driving is the world-class the innovative Sciences’ diagnostics. force Exact cancer engine growth behind in team most

using proteins. new of can to are and developing transform harness tests scientists intensely technologies our tests power enhancing Exact growth cancer are on They help the advanced scale come. current commercial impact relationships Our and of that RNA care. DNA, tests teams providing help of depth to of The IT payer labs, and will while patients millions for those Sciences years profitable our infrastructure, focused

specificity, test and sales one BLUE-C which flow, $XXX Institute collaborations top-line Japan, producing Place White free-cash in reimbursement residual XX% than the progress test an disease improvement a multi-cancer securing Work more certified million, mission made our and in with to results the next-generation Baylor positive fifth million and core and test to of support $XX Great year, initiating for platform marketing revenue for million our expectations from year-over-year, an including announcing & Cologuard $XXX patients, improved program. toward Oncotype generating delivering being the to to $XXX We support test second detection our for study sensitivity significant eradicate molecular results of expense, cancer million decline DX quarter, in our of during exceeded consecutive to our the with our Scott improvement, Broad early million

second-quarter, outstanding result for $XX a by of $XX in the and full the guidance results adjusted raising million revenue year our we're million. by As EBITDA

to second-quarter team's The highest with results the supporting enhancing that evidence. show and our impact and commitment decision-making tests developing quality them

provide their Surrounded unique long-term will that patients power XXXX globally. will flywheel profitability. commercial double-digit of the and a and for organization, creates a by combination a customer healthcare customer growth and person experience care we providers best This significant

will review Jeff results. now our second-quarter

Jeff Elliott

Kevin. Thanks,

grew XX% revenue excluding Core million. business, XX%. the and of Second-quarter sale foreign $XXX to revenue our million, grew million increased of revenue of $XXX prostate testing, Screening COVID $XXX exchange. XX%

health in momentum broad-based see and traction to continue within We systems. adoption Cologuard

future, beginning implemented the Epic in results systems efficiency and and our prior improving of to professionals the seamlessly bringing year, nearly US and automated teams MyChart. new we've to They Cologuard healthcare order electronic enable large whole results of help reimbursement, in billing access Since XXX. also health patients tests. systems, about of while the connections the our will XX These view authorizations, with giving suite and the electronic and connections for to total

care Cologuard. About more US ordered XXX,XXX primary than physicians than and ordered have XX% More during quarter all healthcare ordered X,XXX professionals of new the launch. have Cologuard since

to next each plan of provide don't starting new year. we So number physicians the quarter

the sale testing excluding Oncology million. Growth was grew X% COVID to $X business foreign-exchange. prostate revenue Precision and XX% $XXX revenue decreased X% million. to

$XX was margin was intangibles, made benefited the to cash of cash $XX million, excluding billing million. quarter Free by loss to improvement Adjusted $XXX operating by flow gross of GAAP $XXX was Gross operating discipline. activities GAAP was provided million, Non-GAAP Second XX%. margin and and an securities $XXX was million. cash the amortization was an improvements We systems. XX%. our Cash EBITDA collections margin $XXX with ended better-than-expected net improvement quarter acquired million, gross better driven revenue, margin, from expense gross of of $XX due million. million.

revenue revenue the and for to revenue Turning revenue million COVID for assumes for third-quarter the million $XXX third-quarter between for $XXX the and total and $X.XXX expect the we guidance, and billion million $X year between third million billion between $XXX screening million $X.XXX $X.XXX billion and year. and year. million and $XXX $XXX $XXX million Oncology quarter between million the during the $XXX and for This million $XXX between and of and $X.XXX Precision the for year. million

that discontinued July. COVID in Note we testing

implies Exact for For The in the X% oncology. guidance of EBITDA between was the improvement built revenue year, the in core growth and revenue up margin drive the to start year growth screening from precision with and $XXX Sciences $XXX XX% our XX% million and million, years. year. double million for to increasing guidance We're platform digit growth $XXX growth adjusted

potential. quarter engine's earning shows Second this

Kevin. Back to you,

Kevin Conroy

and Thanks, colon from to cancer. the Jeff. is Cologuard helping screen reduce more Americans suffering

will bar the performance its raise impact. in Cologuard non-invasive accelerate Next-generation and screening positive

pre-cancer positive and scientific while technology, the result a Clinic. achieved for XX% of rates. Cologuard than specificity, Mayo improvement cancer of deep team between a is a false more improving Next-generation a and in detection our and measure R&D decade This advanced collaboration rate, insights of the sensitivity

teams Cologuard our of to to efforts patients. their proud bring for next-generation are We

disease, a best tirelessly supported cancer working to not and to diagnostics team is build relationships will test, outcomes members. finalizing FDA the more has to worked an colon in people professionals, by submission approved, because dedicated get to and screened This This our and it connections with brand. we're healthcare the hands early fuel Cologuard and strong We're with With Cologuard this most frontline commitment will a colon continue in XX patients' growth. a team's improve opportunity getting million to team and more accurate in cancer the next-generation have in team people are our impact up-to-date XXXX. screening it Once the FDA on commercial US. hospitals to big be help is

team Our reimbursement who DX breast US. women for of with the for important DX, tested. every eligible DX, reimbursement Oncotype diagnosed test answers Japan XX,XXX the currently With About where them Precision cancer are are making women Oncotype opportunity now the Oncotype half being Japan secured year. Breast can aren't provide place, in in outside to biggest Oncology

women to A team make hospitals in who value is better, international personalized team work the Japan. physicians their communities will about with more patients thanks this genomic Our to innovation testing bringing to educate and of so Japan Oncotype and can DX, decisions. special important treatment in the doctors,

from scale. a performance cost whole move blood will residual cancer license two reasonable thousands Our pipeline residual disease platform at and developed disease the exclusive if patient's called to focused in teams an on working exome Institute and at are reach at the multi-cancer looking to to point, We're us the will not mutations cancer sequencing genome in from detection. a of early at with to enhance our Broad diagnostics, Oncodetect, biggest hundreds, XX molecular XXX to with best-in-class Broad, provide opportunities patients to very allowing and molecular This of whole extend mutations. technology

validate team control cancer a which study large multi-marker our Our multi-cancer approach complete the types. case detection early class to ASCEND XX including working is in X will trial,

life-changing partial the this this and year. have secure X to a to expect We're with helping access discussions study all We from readout generating bodies regulatory full data to results agencies, patients. early payers, innovation with ASCEND fall additional next support guideline for

our driving focus fuels and results. Our the eradicating on Sciences is cancer financial team Exact

We will invest in our tests. continue diagnostic current with cancer developing people, reaching our and more new tests to patients

to operating revenue and years. sustaining meaningful opportunity our This cash Our suffering flow a cancer tests, to improving causes getting reduce delivering scale started. adoption platform leverage while growth, shareholders. our accelerate will just is of We're the rare while double-digit value for

happy now your to We're answer questions.

Operator

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

Derik de Bruin

good question. Appreciate the me for get first Hi, And afternoon. thanks it. letting

do the to the year? trending One back going two. one. Jeff, And OpEx the we other should financial half I'm question. in of think So about how

do docs were mean, approved? how X.X not were you rolls How be Just off tailwind a think of that do of use X.X? Thank business. you will more how there and that likely to that Just I using tailwind? it'll your how thoughts the a FDA sort once X.X think that are now impacts Cologuard much be on you.

Jeff Elliott

increase first to really is continued Derik, no Everett on management this is OpEx. mid-single get an there, the I'll digit is which one in Look, take there Jeff. way and team. range. you year, the overall the the by for assumptions The good change

the here range. remember, year, in part G&A, some Thrive decline for growth the year. year back primarily kind related sales the total. talked start the in moving is of a a mid-single pieces marketing there the expect the there, R&D, to you this of driving of as digit were We and we probably earn-out, that big in

you be which non-cash out the obviously years now, the strip would payout several If is that, future. into

the If other one-time items, the some unique kind growth that of also digits. is you strip mid-single out and there in

half the that what the an back half. half So, first for increase implies a here is the versus second in bit of

to last is confidence -- our last investments in the pick-up we've and Also hiring the recall given quickly back approach forward of continued our market how is we in the that that there. accelerating and MRD, in growth. help you quarter, As year, going given about talked had, support technology call our some moving half with growth would that

think to second one. turn I'll two questions the for there. I Everett there's over it

Everett Cunningham

of talked the Thanks, Yeah. you strategy Jeff. X.X. And about Cologuard

make until Our our by thing first we take grow on is we FDA our notes Cologuard sales daily approved. field sales which that force our calls. continuing be calls and gets driven great are we analytics use and in focus we Cologuard X.X data will to and The about

hey, we that of, out false objection that So positive which is physicians objection. had the an know are the there rate

analytics just is will we once on the team to X.X those get right organization, going Cologuard the used go message and to first, focus we the X.X, Cologuard targets commercial to we that's physicians and to of the excited launch with and commercial the power in data bay. our right do that the So

Operator

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

Catherine Schulte

guys, mentioned US of primary Hey question. care XX% guess Jeff that for thanks another I in maybe, about for Cologuard. you. one Everett, have ordered doctors the the

primary any the can change focus just you strategy guess, than really and give would be within So your the that deepening I penetration there? does will orders adding now new accounts on examples rather how love

Everett Cunningham

with that Yeah. We're all at number. Thanks not question. for complacent that

We with have Cologuard. XX% penetration

know So right we million are that the XX Americans to that screening. risk now not that have average along with up-to-date

there that focus. That's commercial every that to our our continue out to are out opportunities knowing day organization So there's grow Cologuard. goes

on we concentrate we more not data to Cologuard to customers screened. message analytics sure know there before, that of reach physician, there the use the and write out said I making consistently and frequency we on more like and get but to is And that out concentrate just the because people get there get our we the to more work do need to

Operator

next our from ISI. question take Kumar We'll with Vijay Evercore

Vijay Kumar

guys, question. question. the to Jeff, limit one for Hey my maybe, thanks I’ll just taking profitability

You first-half, lot. did million whole on adjusted a really EBITDA a revenues of dollar the change half second you $XXX don't in basis

back I the Maybe leverage for the like implies margins, think here. incremental incremental about guide talk $XX your of EBITDA million-ish half.

side? we mention leverage did and on noise some seeing marketing sales had you. similar on earn-outs. we're to the actually You what see can When G&A G&A Thank

Jeff Elliott

lot A Vijay. there. Thanks,

years margin to flow free cash into The scale, the I year come foundation the in. drive to to foundation improvement last about. quarter. business, for improvement flow good to accelerate pull and us of state positivity That especially so really feel late top-line we about to much built and time allowed was foundation scale cash the profitability the and built we've talked think this

So to year-on-year here, the improvement we million when of of the prospects feel the raise, step EBITDA midpoint midpoint in margins that adjusted up strong implies $XXX is good of When $XX guiding growth, feel at about revenue. specifically, the a there. to year level we EBITDA is by EBITDA, Take that, now more adjusted the very we're you what you compare a long-term for back that guidance it the at million to coming adjusted look good about. rough

So are driving that we leverage.

of accretion also an mentioned the couple that's To that can question settlement a back-and-forth of non-cash $XX acquisition and the A million a around and the were release Thrive legal earn-out that, your quarter-to-quarter. gain G&A. In before, there against the between I flip line quarter, in press expense one-timers.

G&A X% those you If the quarter. in strip two things grew out,

foundation done that we to think as have with be a job number of in I team in a So nicely XX% the work some revenue year-on-year we the did percent good revenue. over expect Still relative time. but managing come in G&A, this that growth to down to place,

Operator

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

Dan Brennan

Great, color guess, Maybe three-year notable for Congrats. Did of walk you there, thanks thanks on you on the guys. COVID you any how and XX? about two And on questions, kind those for I the see quarter orders. backlog played in that could the some the electronic the rescreen? in taking the rescreen -- you just Cologuard. only the where on three drivers had XX well, really ago systems as quarter. Just look-back the through health XX% has some been impact momentum of strong from colonoscopies of talked but then years penetration, wondering the obviously, out clearing to

the drivers key what's of So played in just a Thank a you. assumed quarter how out of for kind the those of little back-half flavor get year? the and for lot

Jeff Elliott

Jeff. with that set some Hey. The of jump Dan. is can there broad-based This Everett beauty in here. then business is of is a drivers I'll color. this start,

ago, headwind just team So the recommended about. and because headwind Rescreens growing years especially years. three have COVID. orders We Rescreens not or the to onset obviously are we've that is by every done do COVID the nicely. in two, is there's guidelines impacted, through of one it managing Cologuard a be negatively one is were was here talked big of the is Cologuard days is early and the Three broad.

XXXX, What April, means they actually impact business. look to people rescreen next million, jumps number it year. rescreen, patients is So eligible this on million. now three-year to that's same that you are coming X.X as you The years May, ahead think good that when were down, three nicely. of total of orders there recover when to for did to year, last that news the The up repeat later, X.X is June back an year, is Cologuard the

in team a slowdown temporary it. a that rescreen managing the good is growth. And through this So job is doing

driving are we So growth here.

over Just headwinds, it's to size revenue. the of $XX the think million year, of about the over

Again, the in of headwind, part it is big is temporary. that A QX.

the new approaching That driving ago, like XX, part from that. years So guidelines age more down group drivers, Cologuard things age adding to again, lowered revenue. couple group, of guidelines. XX, is of Other XX, XX now the all through that age team people. XX% is A this of million Cologuard

more But is many expect there's huge driver So here the years to set of about broad good systems. a drivers there. news Everett that talk a health can here we for to come. continue

Everett Cunningham

touch XX is on our Yeah. of example way the will Jeff. health working team This together to they Thanks, rescreen is in systems. great and commercial treat and a I XX just training. rescreen those our sport, to to of team XX rescreen, to XX and and growth drivers a as customer from it messages marketing experience around our in specific XX our XX

go the in data gets to and using this. been targets in continue and The of and of it around level the to these terms two type tremendous been message every our growth I've analytics has territory to the to, out levers field just better at we're quarter. We hone that grow

developing brand, and they systems broader seeing DX, is colonoscopy As then Cologuard people they know of that with help backlog, can say, I'll far need partnerships it getting trend that have cancer they them those average by and prevention not people only. our rare around of getting we're screening. help a our genetics, we're brand as just screened They're for coming coming for do And getting with that help. us, just risk colonoscopy us come And and those know to health it around measured to alone colorectal can't they systems, screening around to but around around health solid. patient diseases us And then screen. get Oncotype they're for to a lastly, our to

Operator

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

Brandon Couillard

back quarter? contributor in half is out. two of And Jeff, more can revenue Japan. screening in cash in then that dynamic? XX% Thanks. that that Will The so, ’XX the the And the improved you. incremental for you revenue material growth be benefit material Oncotype to a call that if or a collections, is approval

Jeff Elliott

Sure, is This Jeff. Brandon.

make proud the one test and out, reimbursement as what women got first team we on Oncotype, about, to talked number the the an help sure really Japan, size the -- million when could of On this in to access you in revenue could look be really the at market, be of a US. to did market Kevin which of full first $XX it rate our year, range. million largest this the the to In $XX outside run significant

maybe this coming launch. XX% the given of on going is expect when Obviously, to with this year, we'd is time that this

this over So nice big time. contributor And patients. contributor year win but a small for a very importantly,

on the one revenue Second ASP test. per

it of rate As done the you to driving has lot for there's ASP, is a that so. team your there that rate. The will as calculate do Think really on an accrue this rate job to time pieces know, a when of moving nice Brandon, run quarter. continue go-forward over a comes higher true you and

because, value on Cologuard making think the getting that was in we What going that to that. obviously, provides part done I quarter paid the and tests good we on sure were could paid want make fairly happened payment really get and denied we that previously sure for back we're have on in that work.

the material from in material contributor, million through it's year, year, compare a revenue over it did the of that you expect in When quarters, quarter. was the million $XX of but It the revenue. it's half driver. of it call not $X because So back contribution. nice a of wasn't first I maybe past pulling half out the to

to there, not second half, there dynamic material a but again, QX. first half, So is

Operator

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

Patrick Donnelly

maybe questions. on of the year. of for just thanks the pacing seasonality Jeff, one guys, kind taking Hey and the

feels been think COVID weird terms but years pacing? business. XQ terms that I about kind just us should get guidance you. with XQ, even typical Maybe holidays of XQ, Thank Obviously, think slightly just Can maybe in couple of flat, the just refresh a for of how in It's you year. we in and terms talk seasonality the into through us is down. of guides. the of screening XQ assumes you conservative the a the maybe of that little

Jeff Elliott

Yeah.

the seasonality kind year then Let what into me start and like, with overall should look we'll specifically. this of get

care. first things a then a specifically, get pick really through this behavior trends their necessarily people that -- people to the general care not back quarter, in that after is way trend normalize all really And the with -- primary part the year. go busy and holidays. out normal start and people So slow the care typically of They're lives work up care, typically throughout Memorial that's in a first holidays. through come from year, care start primary few Early the Day, January, Cologuard seek seeking to primary as year preventative and things

Day on of and off even Memorial families vacations. hits, people without kids go When kids vacations, often take often school get

to start trends typically end So are of about back mid-August, tick back as trends things softer, Then kids flattish down. throughout come a wind maybe school little and of up vacations summer. to bit think August, the

fairly slow into primary trends then November care holidays. down growth steeply with So back the and Thanksgiving, and things ticks quiet are then ramp typically in and up through

frame the and sample, send back remember, in test roughly ordered [indiscernible] lab, out, our a from patient now, office us it that at a to sample Cologuard -- XX-day the to then a collect process the time during then, takes -- think revenue. is kit the about it get recognize For time days doctor's XX there's when of

some. The a the three-year biggest headwind quarter trend lag. million part QX the is rescreen business single we similar up some, few mentioned dynamic of that biggest care that, really of up think QX a that ago, with means before. typical that to on I that but that's minutes QX is I talked follow the biggest. COVID This about a QX. COVID the year. year, to picked about, it down picks $XX for comes So XX-day primary that headwind

dynamic year. million to half the The a $XX benefit kind first over coming million the to that did down half. mentioned maybe we is start in strong $X the other in the have the I second of ASP

the to the further, look if that's you But incremental million ever we're So guide we've of screening. the at Cologuard. going growth affect trends talking had. for the this for about That's you year is biggest year. a back seasonal overall year, for take $XXX step That

of percentage you're XX% In growth the terms at talking midpoint. growth,

year So business. our very screening for strong throughout growth the

Operator

Dan with Stifel. will next from our take We Arias question

Dan Arias

really just understand of an be so thinking least risk is just you rather in point guys. for And early Kevin, an questions. early Oncodetect, question on see I'm Thanks to whether believe, At the MRD to access assay early too about closer the Hi, points data having taking granular the just I had Analyst here and you at user someone sort your XQ. the the the the made in clinician the feedback the to is reason timing, On ask ASCO evolving talked around to launch, speak see fall use. aware than can being that Day holidays? market I do being about of that place can or quickly. GI at

Kevin Conroy

Yeah.

quarter to we year expect earlier. get be third the mid We a coverage available then until physician that. MolDX of And I then take quarter would by of months it's later in typically expect feedback the little to that about think of test end six to given and bit fourth the takes a year, for kind decision, going MRD to get to of local the so apply than it don't next time

Oncodetect offer today to will able MRD. take covered as And test patients terms by our broadly our that aren't commercial also, year. covering in a So about payers know, Medicare, to being of you

evidence. test patients bit the that this possible of bringing opportunity right to a to take We're is the to an little So and going best to time very out. with is physicians play

Operator

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

Jack Meehan

steps to I might next-gen Cologuard. Thanks. up you submit of be just portion PMA this the journal a in you there? think when when position to in know I approval? to the the Good Could next published on a for on you'll like wanted and get elaborate timing would afternoon. follow BLUE-C

Kevin Conroy

submit sorry, the first next-generation Cologuard. the on to second was I'm a journal near what we question? in point, On focused expect the to term,

Jack Meehan

for PMA. Submitting FDA

Kevin Conroy

So to last to we probably before year. end expect have to excuse the XX me, nine for nine the submitted it's approval. you -- then months think months, for And module or this can six of

Operator

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

Matt Sykes

Hi, version thanks COGS for strong the talk little of but sort talked X.X COGS taking of the about view balance long-term how of gross expectations XX%. And current of that you balance versus might sort the the thinking I then margins? trends just the year, past my of savings given are in kind maybe margin questions. and of on Jeff, through bit for know about know secondly, the that. far year? the the impact Cologuard you of for just is just and Cologuard you've margin remind non-GAAP gross about I gross Can magnitude a us off, it's the sort the How sort of of what Thanks.

Jeff Elliott

Jeff. is This

the First based Obviously, on to for XX% about in on the the the half first rest and Previously, guided had strength of for year. outlook margin. the year. we the gross

the more in something I range is XX% likely. think to now, XX.X%

came come. who team, that. and improvement June, platform that the the was quality the people the quality So feeling in Again, years of you good you to scale. back built in expect of Madison this lab, for to of those margin gross we And saw automation the about to for

feeling about So that. good

the what dynamic earlier, carry to did and some you When slightly our a about just over business we'd second about second gross would care margin. the turn think get to note from I'll half in we it that talked benefit lower that. a ASP also half, The here, of call gap have And that business. specifically first does I talk care Everett for I

for be However, EBITDA an in. And business important nicely it it does to dollars. to is us contribute

on do a we in that be and all to the expect little the equal. a versus gross So bigger second else business bit weigh bit half margins first

efficiencies question now than goods it least your X% there cost X Cologuard of is Cologuard think that identify for in and of X. build for today second that what work we Cologuard of to XX-plus X, X. Just more is markers that Cologuard at put will right the what cost this of to we team on lower because into It's the per -- be accurate can test years in automation

So does said, that importantly by cost rate here, goods. improve, as it reduce down bring of help false XX%. the helps And it positive it Kevin helps

of a So lot provide value does it patients. for

more care talk important could Everett the Maybe why about program, gap that's so us. to

Everett Cunningham

I These systems, Thanks, and foremost. systems for to have health getting phenomenon coming And patients. the gap really the are And talked payers us a around at we're are there's health to Yeah. care the reason doing patients and as hard-to-screen why Jeff. about program first We're that been help. stubborn get screening.

the strengthens really our and with relationships systems. it health payers So the

lastly, -- this better saying, They And very the interval. like like plus. to a the than really much in because three-year rates effective XX-plus option customers these that it's are usually is we wraparound to They us helping screening stubborn in are patients better that are services. screen, way. efficient our and our improving then back them. our coming with we're And then us a their again lift that's and share and lastly, XX a way hard and cohort,

Operator

question We'll Brackmann Blair. Andrew next take our with William from

Andrew Brackmann

sort difference think talk have the are Jeff, taking you of that just you runway guys. out and total sort there some thanks you a I those for of connections? And versus of can about left group thinking you afternoon, amongst implemented not connections? who you with called have Good the those the guys. questions. that see Hi, implemented more Thanks. about utilization who form XXX systems for How of connections electronic

Jeff Elliott

XX%, to This to physicians more electronically. only Cologuard strong When the electronic patient, Jeff. Cologuard, then is but the XX% maybe and the can about time, get also a us layer that to rate at in foundation both you over about talk to important? that's -- ordering overall experience, make today, have back easy I'll rate Hey, can the not then more. the that's look better to When for Why and it Everett of Andrew. come a easy in. start and is it's result Cologuard orders order higher. you order, tests really some initiatives drive of we over for order other XX% more physician They commercial

supports name MRD a Cologuard can where health and you can the between foundation pipes for leveraged be it. multiple the placed electronic or being same you multi-cancer tests. world lab franchises, our are systems Those or that it's other imagine So same billion-dollar whether

a how that that's rate we're talk far There's about ways higher. Everett -- us. win driving So to you getting that there. still how on -- on for big can go

Everett Cunningham

having go to reps analytics. and as beginning, the the Yeah, XX back need data it's about down and about the absolutely. I second year. Again, to this targets so territory to to. we've systems sales that far go at electronically we're have XX we all going of connected having that and In connect probably large about data said health And Kevin the they to Jeff half, and level another all our where

say, it only seven talk say is for to we're way that physicians to I'll appointment me thing field, Cologuard. to have Cologuard, the to easy is make hear you really making in I'm easier. a order last in I This one And minutes the often write out have when healthcare patient. The to I it

getting and lever at targets Epic way the with forward. moving partnering will which our a serve Our as we're growth in

Operator

Souda Puneet We'll take from our with next Partners. question Leerink

Puneet Souda

Cologuard physicians means here, and too? providers seven Everett. you gets would seven what it keep on had payer updates field the get feedback and next-gen know that so if have taking short. for Thanks I'll I Jeff early Thank and from Kevin, early feedback for data them the it far? you. minutes. the And you've the know questions. any to so on I Kevin, conversations, from love seconds Hey, Everett

Kevin Conroy

X.X? Cologuard On

Puneet Souda

Next-gen Cologuard. Yeah.

Kevin Conroy

Yeah.

Cologuard have next-generation the feedback. So we do test,

and cancer rate, payers pre-cancer feedback from The while from is have and false feedback people for increasing sensitivity reduction are KOLs, have We both big. the some we in positive related.

a we be work the -- more pleased that do, initial of feedback, couldn't Now there's lot with. but to

believe, this -- that mean? fits are that guidelines. because Cancer health does in important guidelines Society that particularly terms the within guidelines end current number what and the up systems their This next-generation already those payers one, Cologuard and the That's the will the Cologuard recommend implicate that guidelines how guidelines important in means most USPSTF And we measures. American are measured on quality of

from So be very it Cologuard next-generation smooth will a to transition Cologuard. we believe

for. make receptive the working be We'll also Medical payers Cologuard CPT will be sure paid to We've We quickly with that coding that getting Association is also road group to down and And adopted coding and impactful this to is American see Cologuard. the up very benefit the smooth. fired We we to next-generation way how because this efficient an in do do patients it. from been team sure before. know make that will

patients. bring to this the all early can't physicians and wait and more to So signs be the team couldn't positive

Operator

comes question Suisse. next from Our with Leonard Dan Credit

Dan Leonard

much. from to branded possibly half? the quarter, guidance you. how afternoon. you very Good revenue speak much you decline Precision $XX Switching in then to Thank half I of from could your midpoint upside partnered first you revenue your was that reported products? can midpoint, And in is much the of the you in own million how from revenue Precision think frame versus forecast Oncology, the which secondly, revenue in the at Oncology, the Onco a second from Thank

Jeff Elliott

business broader one. The this for quarter. good that So, look grew momentum. in Dan, the really XX% is international international, at take you I'll has example, When Jeff. PO

Japan even that's came online. So before

Obviously, when look the franchise the So -- global double-digit revenue the grew in breast the you feeling that. range. that outside at partner Even about US. there's no -- good

we typically good is about is But feeling It So break start. OncoExTra good and revenue don't that. to a off early. out revenue. partner OncoExTra

not So yet. that's material

and into importantly, However, product our does also only getting Oncotype broaden help out talented another that cancer MRD team's carry DX OncoExTra and will and, products. really other breast, time it help and that over hereditary portfolio carry product sales this not hands

momentum broader there. about good feeling So the

the On cancer Oncotype typically there's with a is means out mammograms I a earlier during breast trend the ordered Fewer about diagnoses. with talked after women seasonality the cancer Obviously, mammography. similar fewer summer, question, seek which breast Cologuard, diagnosis. trend

a of you'd kind QX So QX QX. that in what then expect, QX, slowdown to trend stronger QX that's and a to

Operator

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

Mark Massaro

for guys, Madison. to the Hey everyone great thanks and see questions in

in me planning I how -- that sure hosting PR, the this for where I the program about developing So is you're MRD. comes said you've you XXXX. early. for mutations. your I'm that. can that just that MRD time thanks MRD I'm for on curious know ask Obviously, talk pretty Broad tumor-informed Oncodetect and now. patient-specific wanted Institute like Can Because, thousands sense the QX cancer, to your in of initial a in? that to is detect you launch in test been give MAESTRO colorectal you some test this guys --

give level first-gen So your with product maybe to tumor-informed product sticking just between second-gen switching over your level I'm on tumor your sense confidence just you and curious the us your confidence for if naive? can and/or versus

Kevin Conroy

the technology from that Broad generation Institute next be exclusively we The of will the used MRD. licensed MAESTRO in

available similar sensitivity at the greater the year that more Group, this extension, technology Broad be CORRECT-II talked that the in end German would West WGS, studies which a base we've be NSABP, that including used is Think an enhancement technology. And the the a Study the will creating exact the about, that an specificity. mutations, study. So and of the of technology using of test at version is as

that version the and So our study MRD of the would have next-generation you CORRECT-II which studies, Triad test. use

Operator

take next Andrew We'll our with question from James. Raymond Cooper

Andrew Cooper

health down sure. ability is need bit maybe where dynamics folks have I on these the Is seasonal. nice can and think some the I guess that of screened about other shoot, question think worked Thinking it and Thanks little oh to -- asked. systems more you've make get versus first one past for everybody. rating I that about of, the sort tagging their these that backlog, of that talked ongoing point a a to system there refill for we health to Hey, quarter dynamic bit little in Andrew backlog? Andrew for an it what's a

there. for those that once worked trajectory the once more they've So the a goes they're onboarded? just how us get that happens lower mature runway What think little help about and bit

Everett Cunningham

with To said I that. a it population. metrics me, for a know -- just alone. they do I They're know confident, alone have with physicians talking Yeah. and that's And have that They have backlog, coming option. the screening do know -- great They why to to think have quality that us workload, can't that help. health population, I'll I GI when touch to it's cannot hit. systems, they and need is we're their a they to on they're they And that it they Cologuard they they They if screening that of a issue. capacity amount first-line just us. coming

that's Cologuard, our help not And coming that with proactively their patients we're patients. we're We're that and their screened wraparound them health where which tremendously. coming coming quality getting with efforts like with and in just system surround them compliance. a hitting to helps really in these go also It's out sound that with marketing services metrics, benefits with that but in tools

Kevin Conroy

wait that, age XX. that's times than little Just on one, age nationwide is long that guideline USPSTF And lowered XX group that to has part a a add colonoscopy by, issue. become for the now, more to driven months screening to ago, the the

million increased and all needed is added into to screened that to million need to Everett As be number Americans that capacity, screening XX XX permanently as who you once of people starting while the screened that mentioned, know, fixed. be population, to at the

is isn't growing. it The other capacity part just of that

new GIs markets, In the because markets. entering number we're fact, -- it's the retirements seeing becoming of physicians some and in seeing outpace not shrinking we're that are

just the decades of people Cologuard we address is sheer help need that dynamic believe. so to there to be that screened come, number is And to going for that

Operator

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

Kyle Mikson

half. for rescreening other sense margins you revenue of Thanks in year, half in have Yeah. higher $XX bounce and you're is kind in the of the go about makes But with financials to revenue million the that's coming mid-single through the guys. the think second how up you pushing can first margin. you would margins in in talked would over half? walk studies you of of time. higher When that implications line EBITDA back adjusted to that given a next back? to Jeff, digit do headwind guiding I 'XX second really. lifts rescreen the like headwind beyond. But want I margin context, kind That market COVID guess and this to model

profile think how up, context of I moving going this do in the of just pieces? So margin kind the these guess we wrapping about forward all

Jeff Elliott

Well, huge We just do. we ago, XX% momentum in of there out Yeah. There's EBITDA work markets month about XXXX. question. margin based gave the to got get to long-term Thanks there. about very That's for look, today. least we've the at But on guidance good our have margins. feel a ability adjusted we

part of the the You for that about rescreen, important to million at over look Again, headwind guidance A talked there. QX. Yeah, think it's big this year. is it's $XX COVID in I QX.

million it screening, that's in revenue, incremental is to growth almost and for XX% still guiding was of -- which $XXX we're what QX. What over exactly

make in to investments we're right to growth make sure business So and scaling. there's very keep strong going the here, we this

year feel improve good years margins it. -- I But flow So talk future we'll come. about we expect do as cash we I do more to scale, call. a on and next scale, to as about for I

Operator

take next Garcia We'll with from our UBS. Liza question

Liza Garcia

many But because spent Oncotype and guys. with first into honing a Thanks Afternoon, I of me internationally it's so just kind years Japan, I as bit different squeezing little know Cologuard. for it's the the in. of And model kind you've mover. is moving we're operational thinking. guess

international learnings tackle, best of of market to you've the you be You've the given obviously you've you're But learnings. had thinking kind of your of from to get where in obviously, possible as the as kind tackling operational your been of of what the been about that kind revisions about kind kind leverage to how I'm done of like the profile as of into internationally US a experience lot learnings and way of I kind what thinking getting and have at. think internationally can you margin effective just you're to leverage of, guess, kind kind kind

Kevin Conroy

we developed scale, provided We a Applying as outside Cologuard haven't outside ton US, have as have And would Cologuard reach There's learnings. great we US. result the the a that, be of brought need though. on the guidance focused relentlessly when in clearly to and a of that US.

a cancer than XX% take look Just opportunity population of is up-to-date colon if you in rate is is significantly Screening the it Europe the significant higher colorectal the is EU with screen. US. in market, cancer it maybe a because mortality at -- the

opportunity the some the in to We'll wait that export the about So will are Certainly outside as in US. developed focus Cologuard that until we've plans talk learnings outside what the our US. US have help point future there. had there's the and the we an we

Jeff Elliott

And Liza, this Jeff. is

team, of team that's over Just to has XXX around managed really us today to Kevin's That it, is have international a growth strong this answer some This business here. people perspective our today. taken add a up come. already team The footprint. is do revenue is double-digit decade, to years to And fact, here. in build international We put base in over top foundation strong To of million. we for getting XXX $XXX global over over already. what probably us countries in years

This Kevin on good of to growth improve provide in adding really to and nicely patients to years this together one around more help up and help this back more the that largely product, and high-quality come is footprint. leg with products world. margins, importantly us profitable come international the Genomic that business, to talked And reasons it important the is one a will sought With we core to about, Health, out why a of strong for XXXX as really is profitability. sets

Operator

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

Alex Nowak

are only had different a good, And why everyone. I afternoon, colon for assay what the mentioned their Good altogether with data the Cologuard latest blood a lines And cancer X.X time the was a Cologuard was have docs I've wondering in so Great. pursue Okay. Day. for question screening. patients. since minutes since Everett this is blood. Analyst few

Thanks. bit a the care adding -- in it potentially does primary So for making the test confusing risk particular? does conversations

Kevin Conroy

So -- has what Cologuard blood it yet. named call test, our blood be CRC been will we or

blood role refuse a patients people a test. blood there USPSTF middle of going test, forms What screen test, who those recommended per refuse year as to a who the tests, data. which frontline other to next those and to for guidelines. or role The expect for will screening are polyps X And for We believe, we is frontline important -- be have test other that, blood individuals. a And patients, good screening. of is colon cancers be not clearly screening it's cancer there's still for precancerous as as a Stage detecting all for role

We returned have over yet happen and Cologuard to are. colonoscopy those patients haven't who chosen to test. People know

sheer relatively the a number people small but percentage it's in on a terms the of the of measuring in in millions. discrete large So basis, US, population

get be patients deep able completed work those healthcare not a with have to provider to not if they our health screened. completed with, we'll relationship work have patients to Cologuard their colonoscopy, that those a best with with a do the test, system engage we So

that's going achieve is to that's have cancer, -- help mission to important to this tool that an be so -- we and colon our going that And mission. eradicate to is

Operator

and for your you you. Thank as And session Thank disconnect. as now today's may well question-and-answer that you does today, conclude presentation. participation

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