Illumina, Inc. (NASDAQ:ILMN) 2024 Strategy Update Summary Company Overview - **Company**: Illumina, Inc. - **Industry**: Genomics and Biotechnology - **Event Date**: August 13, 2024 - **Participants**: Jacob Thaysen (CEO), Steve Barnard (CTO), Ankur Dhingra (CFO) Key Points Vision and Growth Strategy - Illumina aims to redefine genomics through next-generation sequencing (NGS) and has a mission to improve patient outcomes by reducing diagnosis wait times from weeks to days [3][4] - The company is shifting focus from cost per gigabase to total cost of workflow, emphasizing high-quality biological insights [5][6] Market Opportunity - The total addressable market for Illumina is over $125 billion, with only $10 billion currently served by NGS [8] - The clinical market is expected to grow significantly, particularly in liquid biopsy, which is projected to reach $800 million with a 34% CAGR [9][10] Product Innovations - The NovaSeq X Series is a key enabler for expanding applications in genomics, with nearly half of high-throughput data sequenced on the X Plus by the end of Q2 2024 [11] - Illumina is focusing on multiomics, integrating various biological insights, and enhancing customer workflows through innovative technologies [12][18] Financial Outlook - Illumina targets high single-digit revenue growth by 2027, driven by core sequencing, multiomics, and expanded services [49][63] - The company has seen GB output growth of over 25% annually, with recent quarters showing growth rates of 35% to 40% [50] Margin Expansion - Illumina aims to expand operating margins by 500 basis points through 2027, with a goal of achieving a top quartile margin performance among peers [59] - The company has implemented cost-saving measures, including a 10% reduction in workforce and optimizing real estate [48][60] Customer-Centric Approach - Illumina is committed to understanding and addressing the diverse needs of its customer base, focusing on partnerships rather than vendor relationships [58] - The company is enhancing its R&D pipeline to ensure alignment with customer needs and market demands [57] Future Innovations - Upcoming products include a 5-base genome technology that provides both variant and epigenetic information in a single workflow, and a comprehensive genome that simplifies library preparation [35][36] - Illumina is also advancing its proteomics capabilities and integrating multiomic data analysis through platforms like Partek [39][40] Conclusion - Illumina is positioned for significant growth and innovation in the genomics space, with a clear strategy to enhance customer experience, expand market reach, and improve financial performance [64][63]

Core Insights - Illumina is poised to accelerate revenue growth into high single digits over the next three years, driven by its core genomics portfolio [1][4] - The company aims to deliver double-digit to teens non-GAAP diluted earnings per share growth from 2025 to 2027 [1][4] - A new research partnership with the Broad Institute of MIT and Harvard has been announced to advance single-cell sequencing [1][2] Revenue and Earnings Growth - Illumina expects to achieve high single-digit revenue growth by 2027, leveraging operational efficiencies and significant free cash flow [4] - The company is focused on a systematic and disciplined approach to allocate its free cash flow to enhance profitability [4] Innovations and Technology - Illumina plans to introduce new innovations that will redefine genome analysis and provide deeper biological insights through multiomics [2][3] - The company is developing scalable growth businesses that complement its high-throughput sequencing franchise [3] - Innovations include novel sample preparation, integrated software, and complete multiomic workflows to enhance laboratory operations [3] Strategic Partnerships - The partnership with the Broad Institute aims to enable billion-cell experiments and accelerate the adoption of high-capacity single-cell experiments [2][3] - Collaborative efforts will focus on the development and validation of new kits for large-scale CRISPR screening [2][3]

Did you analyze how Illumina (ILMN) fared in its international operations for the quarter ending June 2024? Given the widespread global presence of this genetic testing tools company, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of gro ...

Illumina Inc. (ILMN) reported second-quarter 2024 adjusted earnings per share (EPS) of 36 cents, which beat the Zacks Consensus Estimate of 12 cents by a stupendous 200%. The bottom line was above the year-ago quarter’s figure of 32 cents.The adjustments exclude the impact of GRAIL’s pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits and the Pillar Two global minimum top-up tax, which became effective from the first quarter of 2024, among others.Including one-time ite ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended June 30, 2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 001-35406 Illumina, Inc. (Exact name of registrant as specified in its charter) Delaware 33-0804655 (State or other jurisdiction of incorporation o ...

Illumina, Inc. (NASDAQ:ILMN) Q2 2024 Earnings Conference Call August 6, 2024 4:30 PM ET Company Participants Salli Schwartz - Vice President of Investor Relations Jacob Thaysen - Chief Executive Officer Ankur Dhingra - Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore ISI Conor McNamara - RBC Capital Markets Patrick Donnelly - Citi Doug Schenkel - Wolfe Research Dan Arias - Stifel Tycho Peterson - Jefferies Subha Nambi - Guggenheim Securities Puneet Souda - Leerink Partners Sung Ji ...

Core Insights - Illumina reported revenue of $1.11 billion for the quarter ended June 2024, a decrease of 5.4% year-over-year, with an EPS of $0.36, up from $0.32 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $1.1 billion by 1.31%, while the EPS surprised positively by 200% compared to the consensus estimate of $0.12 [1] Revenue Breakdown - Total product revenue from Sequencing was $996 million, surpassing the average estimate of $822.82 million, but reflecting a year-over-year decline of 6.6% [3] - Total revenue from Microarrays was $96 million, exceeding the average estimate of $84.67 million, with a year-over-year increase of 3.2% [4] - Revenue from Microarrays Instruments was $4 million, slightly above the average estimate of $3.60 million, showing no change year-over-year [5] - Consumable product revenue reached $815 million, exceeding the estimate of $768.50 million, representing a year-over-year increase of 0.7% [6] - Sequencing Consumables revenue was $737 million, above the estimate of $697.12 million, but down 0.3% year-over-year [7] - Sequencing Instruments revenue was $116 million, below the average estimate of $125.71 million, reflecting a significant year-over-year decline of 39.9% [8] - Product revenue from Instruments was $120 million, below the average estimate of $129.30 million, with a year-over-year decline of 39.1% [9] - Core Illumina revenue totaled $1.09 billion, slightly above the estimate of $1.08 billion, but down 5.8% year-over-year [10] - Total product revenue for Core Illumina was $935 million, exceeding the average estimate of $908.07 million [11] - Service and other revenue was $157 million, below the average estimate of $167.77 million [12] - Overall product revenue was $927 million, surpassing the average estimate of $897.80 million, but down 7.4% year-over-year [13] - Service and other revenue increased to $185 million, although it was below the average estimate of $198.67 million, reflecting a year-over-year increase of 5.7% [14] Stock Performance - Illumina's shares have returned +7.1% over the past month, contrasting with the Zacks S&P 500 composite's decline of -6.7% [14] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [14]

Illumina (ILMN) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this genetic testing tools company would post earnings of $0.03 per share when it actually produced earnings of $0.09, delivering a surprise of 200%.Over the last four quarters, t ...

Revenue and Financial Performance - Core Illumina revenue for Q2 2024 was $1.09 billion, down 6% from Q2 2023 and up 3% from Q1 2024[2] - Total revenue for Q2 2024 was $1.112 billion, a decrease from $1.176 billion in Q2 2023[26] - Core Illumina revenue for the six months ended June 30, 2024 was $2.148 billion, a 4% decrease compared to $2.235 billion in the same period last year[33] - Consolidated revenue for the three months ended June 30, 2024 was $1.112 billion, a 5% decrease compared to $1.176 billion in the same period last year[33] - Product revenue for Q2 2024 was $927 million, a decline from $1.001 billion in Q2 2023[26] - Service and other revenue increased to $185 million in Q2 2024, up from $175 million in Q2 2023[26] - Exchange rate effects negatively impacted consolidated revenue by $5 million for the three months ended June 30, 2024[33] - Hedge gains positively impacted consolidated revenue by $4 million for the three months ended June 30, 2024[33] Operating Margins and Profitability - Core Illumina GAAP operating margin for Q2 2024 was 40.5%, with a non-GAAP operating margin of 22.2%[2] - Core Illumina non-GAAP operating margin guidance for fiscal year 2024 was raised to a range of 20.5% to 21%[2] - Core Illumina's Non-GAAP operating profit for the three months ended June 30, 2024, was $242 million, or 22.2% of revenue, while consolidated Non-GAAP operating profit was $84 million, or 7.6% of revenue[44] - Core Illumina's GAAP gross profit for the three months ended June 30, 2024, was $743 million, representing 68.0% of revenue, while Non-GAAP gross profit was $758 million, or 69.4% of revenue[44] - Core Illumina's GAAP gross profit for the three months ended July 2, 2023, was $760 million, or 65.5% of revenue, while Non-GAAP gross profit was $777 million, or 67.0% of revenue[47] - Core Illumina's GAAP gross profit is $1,436 million, representing 66.9% of revenue, while Non-GAAP gross profit is $1,466 million, or 68.3% of revenue[49] - Core Illumina's GAAP gross profit for the six months ended July 2, 2023 is $1,446 million, or 64.7% of revenue, while Non-GAAP gross profit is $1,478 million, or 66.1% of revenue[51] - Non-GAAP gross profit is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and average selling prices[52] Earnings Per Share (EPS) - Core Illumina GAAP diluted earnings per share for Q2 2024 was $0.41, and non-GAAP diluted earnings per share was $1.09[2] - Core Illumina non-GAAP diluted earnings per share guidance for fiscal year 2024 was introduced in the range of $3.80 to $3.95[2] - Non-GAAP diluted earnings per share for the three months ended June 30, 2024 was $0.36, compared to $0.32 in the same period last year[36] Net Income and Loss - Net loss for Q2 2024 was $1.988 billion, compared to a net loss of $234 million in Q2 2023[26] - GAAP net loss for the three months ended June 30, 2024 was $1.988 billion, compared to a net loss of $234 million in the same period last year[37] - Non-GAAP net income for the three months ended June 30, 2024 was $57 million, compared to $50 million in the same period last year[37] - Core Illumina GAAP net income for the six months ended June 30, 2024 was $135 million[41] - Core Illumina Non-GAAP net income for the six months ended June 30, 2024 was $329 million[41] Impairment Charges - The company recognized $1,466 million in goodwill and $420 million in intangible asset impairment related to the GRAIL segment in Q2 2024[5] - Goodwill and intangible impairment charges totaled $1.886 billion in Q2 2024, significantly impacting the operating loss[26] - Goodwill and intangible impairment charges for the three months ended June 30, 2024 were $1.886 billion[37] - GAAP goodwill and intangible impairment is $1,889 million, or 86.3% of revenue, primarily driven by a $1,466 million goodwill impairment[49] Cash Flow and Liquidity - Free cash flow for Q2 2024 was $48 million, compared to $58 million in the prior year period[6] - Free cash flow for Q2 2024 was $48 million, down from $58 million in Q2 2023[29] - Cash and cash equivalents decreased to $920 million as of June 30, 2024, from $1.048 billion at the end of 2023[22] Assets and Equity - Total assets decreased to $6.081 billion as of June 30, 2024, from $10.111 billion at the end of 2023[22] - Stockholders' equity dropped to $1.436 billion as of June 30, 2024, from $5.745 billion at the end of 2023[23] Research and Development (R&D) Expenses - Research and development expenses were $325 million in Q2 2024, down from $358 million in Q2 2023[26] - Core Illumina's GAAP R&D expense for the three months ended June 30, 2024, was $241 million, or 22.1% of revenue, while Non-GAAP R&D expense was $325 million, or 29.2% of revenue[44] - Core Illumina's GAAP R&D expense for the three months ended July 2, 2023, was $274 million, or 23.6% of revenue, while Non-GAAP R&D expense was $345 million, or 29.3% of revenue[47] - GAAP R&D expense is $660 million, or 30.2% of revenue, while Non-GAAP R&D expense is $658 million, or 30.1% of revenue[49] - GAAP R&D expense for the six months ended July 2, 2023 is $699 million, or 30.9% of revenue, while Non-GAAP R&D expense is $685 million, or 30.3% of revenue[51] Selling, General, and Administrative (SG&A) Expenses - Core Illumina's GAAP SG&A expense for the three months ended June 30, 2024, was $60 million, or 5.5% of revenue, while Non-GAAP SG&A expense was $358 million, or 32.2% of revenue[44] - Core Illumina's GAAP SG&A expense for the three months ended July 2, 2023, was $371 million, or 31.9% of revenue, while Non-GAAP SG&A expense was $355 million, or 30.2% of revenue[47] - GAAP SG&A expense is $588 million, or 26.9% of revenue, while Non-GAAP SG&A expense is $707 million, or 32.3% of revenue[49] - GAAP SG&A expense for the six months ended July 2, 2023 is $839 million, or 37.1% of revenue, while Non-GAAP SG&A expense is $697 million, or 30.8% of revenue[51] Tax Provisions - Q2 2024 GAAP tax provision was $12 million, representing a decrease of 0.6% compared to the previous period[57] - Non-GAAP tax provision for Q2 2024 was $16 million, accounting for 22.3% of the total[57] - YTD 2024 GAAP tax provision was $28 million, reflecting a decrease of 1.4%[57] - Non-GAAP tax provision for YTD 2024 was $28 million, representing 28.8% of the total[57] - Q2 2024 Core Illumina GAAP tax provision was $35 million, accounting for 35.0% of the total[60] - Non-GAAP tax provision for Core Illumina in Q2 2024 was $55 million, representing 24.2% of the total[60] - YTD 2024 Core Illumina GAAP tax provision was $80 million, accounting for 37.3% of the total[60] - Non-GAAP tax provision for Core Illumina YTD 2024 was $108 million, representing 24.9% of the total[60] - Q2 2024 included $104 million in incremental non-GAAP tax expense[57] - YTD 2024 included $117 million in incremental non-GAAP tax expense[57] Corporate Transactions - The company completed the spin-off of GRAIL into a new public company on June 24, 2024[2] - The company acquired Fluent Biosciences, developer of an emerging and highly differentiated single-cell technology[11] Operating Loss and Profit - Consolidated GAAP operating loss for the three months ended June 30, 2024, was $(1,637) million, or (147.2)% of revenue, primarily due to a goodwill and intangible impairment of $1,886 million[44] - Consolidated GAAP operating loss for the three months ended July 2, 2023, was $(88) million, or (7.5)% of revenue, while Non-GAAP operating profit was $82 million, or 7.0% of revenue[47] - Consolidated GAAP operating loss is $(1,749) million, or (79.9)% of revenue, while Non-GAAP operating profit is $117 million, or 5.4% of revenue[49] - Consolidated GAAP operating loss for the six months ended July 2, 2023 is $(152) million, or (6.7)% of revenue, while Non-GAAP operating profit is $103 million, or 4.5% of revenue[51]

Core Illumina revenue of $1.09 billion for Q2 2024, down 6% from Q2 2023 (down 6% on a constant currency basis) and up 3% from Q1 2024Core Illumina GAAP operating margin of 40.5% and non-GAAP operating margin of 22.2% for Q2 2024Core Illumina GAAP diluted earnings per share of $0.41 and non-GAAP diluted earnings per share of $1.09 for Q2 2024Lowered fiscal year 2024 Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) from 2023Raised Core Illumina non-GAAP operating ma ...