Illumina Reports Financial Results for Third Quarter of Fiscal Year 2024

Original from: Illumina

· Core Illumina revenue of $1.1 billion for Q3 2024, down 2% from Q3 2023 and on a constant currency basis

· Core Illumina GAAP operating margin of 68.6% and non-GAAP operating margin of 22.6% for Q3 2024

· Core Illumina GAAP diluted EPS of $4.03 and non-GAAP diluted EPS of $1.14 for Q3 2024

· Lowered fiscal year 2024 Core Illumina revenue guidance to decline ~3% from fiscal year 2023; expect Q4 2024 Core Illumina revenue of approximately $1.07 billion

· Raised fiscal year 2024 Core Illumina non-GAAP operating margin guidance to a range of 21% to 21.5%

· Raised fiscal year 2024 Core Illumina non-GAAP diluted EPS guidance to a range of $4.05 to $4.15

Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced its financial results for the third quarter of fiscal year 2024. The financial results for YTD 2024 and Q3 2023 and YTD 2023 include the financial results for GRAIL which was spun off on June 24, 2024.

"During the third quarter, the Illumina team delivered strong operating results, and revenue met our expectations," said Jacob Thaysen, Chief Executive Officer. "We are making good strides towards Illumina's strategic goals, both in launching breakthrough innovation and in helping our customers accelerate their adoption of the NovaSeq™ X."

"The near-term macroeconomic environment remains constrained, and we are slightly lowering our 2024 revenue guidance," Thaysen continued. "The underlying demand for Illumina's products and applications remains strong and we are demonstrating significant progress in driving margin and earnings expansion."

Capital expenditures for free cash flow purposes were $32 million for Q3 2024. Cash flow provided by operations was $316 million, compared to $139 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $284 million for the quarter, compared to $94 million in the prior year period. Depreciation and amortization expenses were $70 million for Q3 2024. At the close of the quarter, the company held $939 million in cash, cash equivalents and short-term investments.

Key announcements since our last earnings release

· Presented strategy and three-year financial outlook that features accelerating revenue growth and significant margin expansion

· Introduced the MiSeq i100 Series: Illumina's simplest, fastest benchtop sequencers

· Announced plans to provide updates on key innovations in whole-genome sequencing, proteomics, and single-cell technology at the American Society of Human Genetics Annual Meeting

· Announced European Court of Justice ruled in favor of Illumina in jurisdictional appeal regarding GRAIL

· Obtained FDA approval for TSO Comprehensive with two companion diagnostics to rapidly match patients to targeted therapies

· Announced Bengaluru global capability center, expanding presence in the region

· Appointed Todd Christian as Senior Vice President of Services, Arrays, and Genomics Access

· Announced that Charles Dadswell will step down as General Counsel, initiated search for successor

A full list of recent announcements can be found in the company's News Center.

Financial outlook and guidance
For fiscal year 2024, the company is lowering its guidance for Core Illumina revenue to decline ~3% (down ~3% in constant currency) compared to fiscal year 2023. For the fourth quarter of 2024, the company expects Core Illumina revenue of ~$1.07 billion. The company is raising its guidance for Core Illumina non-GAAP operating margin to a range of 21% to 21.5%, and for Core Illumina non-GAAP diluted EPS to a range of $4.05 to $4.15 for fiscal year 2024.

The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the impact of items such as acquisition-related expenses, gains and losses from strategic investments, fair value adjustments to contingent consideration, potential future asset impairments, restructuring activities, and the ultimate outcome of pending litigation without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

Source: Illumina Reports Financial Results for Third Quarter of Fiscal Year 2024