earning https://i-model-h0use.com call transcripts..​insider monkeyExact Sciences Corporation (NASDAQ:EXAS) Q4 2023 Earnings Call Transcript February 21, 2024 Exact Sciences Corporation beats earnings expectations. Reported EPS is $-0.27, expectations were $-0.53. Exact Sciences Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the...@realstar2​On the call today are Kevin Conroy, the Company's Chairman and CEO, ..our General Manager of Precision Oncology will also be available for questions....We've built an *unrivaled platform that will allow us to achieve our purpose to help eradicate cancer. We're hosting today's call from our San Diego R&D Center. Our talented scientists are *harnessing the power of DNA, RNA, and proteins. They are developing a range of new tests that will change how cancer is diagnosed and treated. We're set to gain momentum as we bring these new tests to physicians and patients at regular intervals over the next few years.*unrivaled.. better than anyone/anything else.. 그러니깐 독보적인..*eradicate.. to remove something completely..*harness.. 그 하네스 맞음.. 이게 확장되어서 특별한 목적에 활용하다는 뜻도.. to use something for a particular purpose..*set to.. to begin doing something in an active and seriouse way..​Highlights in 2023 include testing a record 4.1 million patients for cancer and rare diseases, growing core revenue by 24% to $2.5 billion, improving adjusted EBITDA $362 million year-over-year, turning free cash flow positive, submitting next-generation Cologuard for FDA approval, launching Oncotype DX in Japan on a reimbursed basis, accelerating our https://i-model-h0use.com molecular residual disease or MRD program, launching OncoExTra, our solid tumor therapy selection test, and adding OncoLiquid, our liquid therapy selection test and advancing our multi-cancer early detection. ..Molecular residual disease (MRD) refers to the presence of tumor-specific DNA in the body after cancer treatment. These fragments of genetic information, known as circulating tumor DNA (ctDNA), are shed into the blood by solid tumors as part of the tumor growth cycle. Their presence may indicate tha...Jeff will now focus on our financial results and our outlook for 2024.​Jeff Elliott: Thanks, Kevin. Fourth quarter revenue of $647 million grew 17% or 18% on a core basis excluding COVID testing, FX and M&A. Screening revenue of $487 million increased 21%. We continue to see broad-based momentum in Cologuard adoption by healthcare providers with an all-time high 172,000 ordering Cologuard during the quarter. This expanded base of ordering providers supports our long-term growth outlook. Precision Oncology revenue of $160 million grew 12% or 11% on a core basis. Growth was led by Oncotype DX, which expanded 48% internationally. Fourth quarter GAAP gross margin was 70%. Non-GAAP gross margin, excluding amortization of acquired intangibles, was 73%. Net loss was $50 million, and adjusted EBITDA was $50 million, an improvement of $45 million driven by better-than-expected revenue and continued operating expense discipline.Free cash flow was $35 million, an improvement of $55 million. We ended the year with cash and https://i-model-h0use.com securities of $778 million. ​Turning to guidance, we expect total revenue between $615 million and $630 million for the first quarter and between $2.81 billion and $2.85 billion for the year. This assumes screening revenue between $460 million and $470 million for the first quarter and between $2.155 billion and $2.175 billion for the year and Precision Oncology revenue between $155 million and $160 million for the first quarter and between $655 million and $675 million for the year. ​Annual guidance implies 13% core revenue growth, with 16% growth in screening and 6% growth in Precision Oncology. We expect to generate between $325 million and $350 million of adjusted EBITDA for the year.​We also expect CapEx to be around $150 million. We expect first quarter screening revenue to be down sequentially because of typical seasonal trends. Primary care utilization is lower in December and early January because of the holidays. This impacts screening revenue during the first quarter due to the normal timing between a Cologuard order and a completed test. We expect first quarter screening to be about 22% of full year revenue, consistent with the historical average. ​In Precision Oncology, we expect steady Oncotype DX growth in the US and strong double-digit growth internationally this year. Exact Sciences acts as a reference lab and process a test for other lab customers. Starting in the first quarter, we're assuming a $20 million headwind https://i-model-h0use.com or 3 points of revenue growth for Precision Oncology as various agreements related to whole exome sequencing and prostate cancer testing are transitioned in-house by those ordering labs....Kevin Conroy: Thanks, Jeff. Brand awareness and loyalty are fueling Cologuard adoption and helping reach 60 million Americans who are not up to date with colon cancer screening. The number of healthcare providers ordering Cologuard and the number of Cologuard testing order have consistently grown. Cologuard is an essential part of their screening tool kit in part because patients prefer and ask for it. During the fourth quarter, Cologuard brand awareness reached 89%, an all-time high, and our market research showed people who have never been screened prefer Cologuard 2 to 1 over colonoscopy. We're building on this momentum by helping health systems achieve positive clinical and financial outcomes, designing innovative ways to get more patients rescreened and partnering with federally qualified health centers and healthcare providers that serve diverse communities.​Our Precision Oncology team has guided treatment decisions for more than 2 million cancer patients around the world including a record 230,000 last year. Oncotype DX recently celebrated its 20th anniversary. During those years, Oncotype DX has become the global standard of care for patients diagnosed with early-stage HR-positive HER2-negative breast cancer, the most common subtype. We've received Oncotype DX orders from more than 120 countries and 98% of US oncologists have ordered. Oncotype DX has helped https://i-model-h0use.com spare over 1.3 million patients from unnecessary chemotherapy. Increased international adoption led by Japan will be a key growth driver in Precision Oncology this year. We also plan to move our Precision Oncology portfolio onto our proprietary IT platform, making prior authorizations, billing and reimbursement highly efficient.​This will also enable rapid scaling of future tests, including Oncodetect, our MRD test, and OncoLiquid, our blood-based therapy selection tests. We are using our deep scientific capabilities and regulatory expertise to advance impactful pipeline programs, including multiple colon cancer screening initiatives and MRD. In colon cancer screening, we shared data from the prospective BLUE-C study demonstrating next-generation Cologuard will raise the performance bar in noninvasive screening. We submitted our premarket approval application to the FDA in December and expect to make the test available to patients in 2025. Most BLUE-C study participants also provided a sample for evaluating our novel blood-based colon cancer screening test. This year, we plan to announce top line results from BLUE-C or our colon cancer blood test....​Q&A..​Brandon Couillard: Hey, thanks, good afternoon. Two-parter for Jeff. First, on the first quarter revenue guidance, can you just unpack the $20 million headwind(이걸 바로 질문.. 오호), I think, in the Precision Oncology business that you referenced, a little more detail on that? And then secondly, as you think about the guide for 24, what do you pinpoint in for kind of OpEx and gross margins https://i-model-h0use.com for the year? Thank you.*pinpoint.. to find out something with certainty.. to find or locate the exact position of something..​Jeff Elliott: Sure, Brandon. On the $20 million, this is an annual impact. Like I said, we, Exact acts as a reference lab for others in the space. And some of those contracts — we’re not surprised by some of these are rolling off as those labs take that work in-house. So that’s over the year, expected to be a $20 million headwind, probably hurts Q1 a bit more than Q4, but that’s the annual impact. On what the true growth drivers for Oncotype over time are going to be continued uptake in the node positive indication, international, which had an awesome quarter in Q4 grew 48%. And then over time, this serves as a perfect foundation for new product launches like MRD and therapy selection. So the business is very healthy. We have a comparison item this year.​On the margin side, you’ve heard me talk for years about gross margin expansion. This year, we expect continued progress. We’ve put in lab automation. The team did a fabulous job there of automating those labs. Many of you have seen it. If you haven’t, you’re welcome to come and tour facilities, they are state-of-the-art. Automating those labs further will help. We expect as we grow this year, leveraging that fixed cost is a big deal. Broadly https://i-model-h0use.com speaking, gross margin improvement. OpEx leverage, another hallmark. We’ve built a strong foundation. And you’ve seen the impact over the last couple of years, we’ve had significant adjusted EBITDA and leverage. We expect that to continue again. Probably the highlight this year will be within G&A. I expect that to be our biggest source of leverage....Catherine Schulte: Hey, guys. Thanks for the question. I have a two-parter for you. Maybe first on the screening guide, you’ve been clear in the past to expect 1Q to be down sequentially. But can you just talk through phasing for the rest of the year and what gives you confidence in the ramp there? And then second, and Kevin, I know you have a fairly big chunk of options that are expiring(옵션??), I believe, later this week. Any comments on what you’re planning to do with those? Thanks.​Kevin Conroy: Let me start with the second first. Yes, I have options that are expiring their 10-year grants. So they were granted in 2014. And I plan to exercise and hold while selling just enough to pay the cost of exercising and the taxes(주식을 말하는.. 옵션을 행사..일부는 매각해 세금 같은 비용 충당). But the goal is to hold the difference. ..​Jeff Elliott: Sure. Catherine, on your phasing question, we’ve talked about this many times before, but as a reminder, primary care utilization typically impacted around the holidays. So basically, we https://i-model-h0use.com lose about two weeks of the quarter around Christmas and New Year’s, two weeks for patients and physicians take off, go on vacations. So that’s the fact that there’s fewer office visits during that time. I mean, there’s fewer Cologuard orders then. That means about 30 days later, when we complete that test, there’s less revenue we recognize. So the holidays really impact Q1, so I would continue to expect a sequential step down Q4 to Q1 as you model out forever. Think of our screening business down sequentially. This is very similar to what you see in Precision Oncology.​The Oncotype brand continues to grow, but you do see that step down. It’s related to physician office visits around Christmas and New Year’s are slower which hits — hurts Q1 revenue. So from a phasing(단계별로 나누는) standpoint, typically, we expect pretty strong growth in orders for Cologuard throughout the early part of the year up until May. *standpoint.. point of viewThings typically flatten out over the summer months and then a steep ramp again from Labor Day through Thanksgiving. That’s what we expect this year. From a revenue standpoint, I would — again, I said in my remarks, 22% of Q1 revenue for screening this year. That’s consistent with the historical average. When you look at a growth standpoint, from a growth standpoint, we’re expecting 23% on a two-year stack basis, so a two-year https://i-model-h0use.com compounded growth in Q1....TO BE CONTINUE..