Exact Sciences Corporation

Good day and welcome to the ExactSciences 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. If you would like to ask a question during this time, simply press star 1 on your telephone keypad. And if you would like to remove yourself from the queue, that is star 1 again. We do ask that you please limit yourself to one question. I would now like to turn the conference over to Megan Jones, Vice President of Investor Relations. Please go ahead.

Thanks, Lisa. Thank you for joining us for ExactScience's second quarter 2023 conference call. On the call today are Kevin Conroy, the company's chairman and CEO, and Jeff Elliott, our Chief Financial Officer. Everett Cunningham, our Chief Commercial Officer, will also be available for questions. ExactScience issued a news release earlier this afternoon detailing our second quarter financial results. This news release and today's presentation are available on our website at exactsciences.com. During today's call, we will make forward-looking statements based on current expectations. Our actual results may be materially different from such statements. Discussions of non-GAAP figures and reconciliations to GAAP figures are available in our earnings press release, and descriptions of the risk and uncertainties associated with Exact Sciences are included in our SEC filings. Both can be accessed through our website. I'll now turn the call over to Kevin.

Exact Sciences' world-class team is the driving force behind the most innovative growth engine in cancer diagnostics. Our scientists are using advanced technologies to harness the power of DNA, RNA, and proteins. They are intensely focused on enhancing our current tests and developing new tests that can help transform cancer care. The scale of Exact Sciences' labs, IT infrastructure, commercial teams, and our depth of payer relationships will help those tests impact millions of patients while providing profitable growth for years to come. We made significant progress toward our mission to eradicate cancer during the second quarter, including being Great Place to Work certified for the fifth consecutive year, delivering more than one million tests, results to patients, generating core revenue of $617 million, an improvement of $119 million year-over-year with an 18% decline in sales and marketing expense, producing $66 million of free cash flow, a $190 million improvement, announcing positive top-line results from our Blue Sea study, in which our next-generation Cologuard test exceeded our expectations for improved sensitivity and specificity, securing reimbursement for the Oncotype DX test in Japan, and initiating collaborations with the Broad Institute to support our molecular residual disease test platform, and Baylor Scott & White to support our multi-cancer early detection program. As a result of the outstanding results in the second quarter, we're raising our full-year guidance for revenue by $54 million and adjusted EBITDA by $63 million. The second quarter results show our team's commitment to developing and enhancing tests that impact decision-making and supporting them with the highest quality evidence. Surrounded by a 2,000-person commercial and customer care organization, we'll provide the best customer experience for patients and their healthcare providers globally. This creates a flywheel that will power a unique combination of long-term double-digit growth and significant profitability.