Exact Sciences’ first quarter results were met with a positive market response, reflecting notable improvements in commercial execution and the successful launch of new products. Management credited the double-digit revenue growth to expanded provider engagement, increased adoption of Cologuard and care gap programs, and early traction from Cologuard Plus. CEO Kevin Conroy emphasized that the commercial organization’s focus on targeting high-potential providers led to a 30% increase in customer engagement and higher productivity per sales representative. The company also highlighted strong momentum in its rescreening initiatives, which now account for over a quarter of revenue.
Is now the time to buy EXAS? Find out in our full research report (it’s free).
Exact Sciences (EXAS) Q1 CY2025 Highlights:
- Revenue: $706.8 million vs analyst estimates of $688.5 million (10.9% year-on-year growth, 2.7% beat)
- Adjusted EPS: -$0.36 vs analyst estimates of -$0.10 (significant miss)
- Adjusted EBITDA: $63.26 million vs analyst estimates of $59.87 million (8.9% margin, 5.7% beat)
- The company lifted its revenue guidance for the full year to $3.1 billion at the midpoint from $3.06 billion, a 1.3% increase
- EBITDA guidance for the full year is $440 million at the midpoint, above analyst estimates of $422.9 million
- Operating Margin: -13.6%, up from -16.7% in the same quarter last year
- Constant Currency Revenue rose 11% year on year (5.8% in the same quarter last year)
- Market Capitalization: $9.79 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Exact Sciences’s Q1 Earnings Call
- Tycho Peterson (Jefferies) asked about the specific commercial changes driving new Cologuard orders; CEO Kevin Conroy explained increased rep productivity and faster engagement with new providers.
- Catherine Schulte (Baird) pressed on the drivers behind higher revenue guidance; CFO Aaron Bloomer attributed it to improved commercial execution rather than just care gap or rescreen growth.
- Brandon Couillard (Wells Fargo) inquired about elevated sales and marketing expenses; Bloomer explained that investments supported new product launches and are expected to yield leverage over time.
- Colleen Babington (Wolfe Research) questioned the sustainability of rescreen growth; Bloomer confirmed ongoing improvements in adherence and projected rescreens could modestly increase as a share of volume this year.
- Patrick Donnelly (Citi) asked about the timeline and expectations for blood-based screening data; Conroy maintained confidence in a midsummer readout and highlighted the complexity and rigor of the clinical validation process.
Catalysts in Upcoming Quarters
Our analyst team will be watching (1) the pace of Cologuard Plus adoption and success in securing broader payer coverage, (2) the readout and commercial potential of the pivotal Blue Sea study for blood-based colon cancer screening, and (3) operational efficiency gains as the company continues to drive margin and cash flow improvements. Execution on pipeline launches and the ability to navigate reimbursement dynamics will also be key indicators of progress.
Exact Sciences currently trades at $51.87, up from $47.15 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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