Illumina(ILMN) - 2025 Q3 - Quarterly Results

Financial Performance - Core Illumina revenue for Q3 2024 was $1.1 billion, down 2% from Q3 2023 on a constant currency basis[2] - Core Illumina GAAP operating margin for Q3 2024 was 68.6%, with a non-GAAP operating margin of 22.6%[2] - Core Illumina GAAP diluted EPS for Q3 2024 was $4.03, and non-GAAP diluted EPS was $1.14[2] - Fiscal year 2024 Core Illumina revenue guidance was lowered to a decline of ~3% from fiscal year 2023, with Q4 2024 revenue expected to be approximately $1.07 billion[2] - Fiscal year 2024 Core Illumina non-GAAP operating margin guidance was raised to a range of 21% to 21.5%[2] - Fiscal year 2024 Core Illumina non-GAAP diluted EPS guidance was raised to a range of $4.05 to $4.15[2] - Total revenue for Q3 2024 was $1.08 billion, a decrease of 4% compared to $1.119 billion in Q3 2023[20] - Net income for Q3 2024 was $705 million, compared to a net loss of $754 million in Q3 2023[20] - Core Illumina constant currency revenue for Q3 2024 was $1.078 billion, a decrease of 2% compared to $1.101 billion in Q3 2023[25] - Consolidated constant currency revenue for Q3 2024 was $1.078 billion, a decrease of 3% compared to $1.114 billion in Q3 2023[26] - Non-GAAP diluted earnings per share for the three months ended September 29, 2024, was $1.14, compared to GAAP diluted earnings per share of $4.03[28] - Non-GAAP net income for the three months ended September 29, 2024, was $181 million, compared to GAAP net income of $642 million[29] - Non-GAAP diluted earnings per share for the nine months ended September 29, 2024, was $3.20, compared to GAAP diluted earnings per share of $4.88[28] - Non-GAAP net income for the nine months ended September 29, 2024, was $510 million, compared to GAAP net income of $777 million[29] - Non-GAAP diluted earnings per share for the nine months ended October 1, 2023, was $0.73, compared to GAAP diluted loss per share of $(6.23)[31] - Non-GAAP net income for the nine months ended October 1, 2023, was $115 million, compared to GAAP net loss of $(986) million[32] - Non-GAAP gross profit for the consolidated operations was $732 million, representing 65.4% of revenue[34] - Non-GAAP operating profit for the consolidated operations was $93 million, representing 8.3% of revenue[34] - Core Illumina non-GAAP gross profit was $2.228 billion, representing 69.0% of revenue[36] - Consolidated non-GAAP operating profit was $362 million, or 11.1% of revenue[36] - Non-GAAP gross profit for Core Illumina is $2,208 million, representing 66.1% of revenue[38] - Non-GAAP operating profit for Core Illumina is $681 million, representing 20.4% of revenue[38] - Non-GAAP operating profit for Consolidated is $196 million, representing 5.8% of revenue[38] Expenses and Margins - Gross margin for Q3 2024 increased to 68.9% from 64.7% in Q3 2023, driven by cost savings and improved productivity[5] - Research and development expenses for Q3 2024 were $253 million, a decrease from $315 million in Q3 2023[20] - Selling, general and administrative expenses for Q3 2024 were $239 million, a decrease from $303 million in Q3 2023[20] - GAAP R&D expense for the consolidated operations was $315 million, accounting for 28.1% of revenue[34] - Non-GAAP R&D expense for the consolidated operations was $312 million, representing 27.8% of revenue[34] - GAAP SG&A expense for the consolidated operations was $303 million, accounting for 27.0% of revenue[34] - Non-GAAP SG&A expense for the consolidated operations was $328 million, representing 29.3% of revenue[34] - Non-GAAP R&D expense for Core Illumina is $754 million, representing 22.5% of revenue[38] - Non-GAAP SG&A expense for Core Illumina is $773 million, representing 23.1% of revenue[38] Cash Flow and Assets - Free cash flow for Q3 2024 was $284 million, compared to $94 million in the prior year period[7] - Free cash flow for Q3 2024 was $284 million, compared to $94 million in Q3 2023[23] - Total assets decreased to $6.014 billion as of September 29, 2024, from $10.111 billion as of December 31, 2023[17] - Stockholders' equity decreased to $2.125 billion as of September 29, 2024, from $5.745 billion as of December 31, 2023[18] - Cash and cash equivalents decreased to $869 million as of September 29, 2024, from $1.048 billion as of December 31, 2023[17] Legal and Tax Adjustments - Legal contingency and settlement adjustments reduced GAAP net income by $488 million for the three months ended September 29, 2024[29] - Goodwill and intangible impairment adjustments increased GAAP net income by $821 million for the nine months ended October 1, 2023[32] - GILTI, US foreign tax credits, and global minimum top-up tax adjustments increased non-GAAP net income by $54 million for the three months ended September 29, 2024[29] - Incremental non-GAAP tax expense reduced non-GAAP net income by $26 million for the three months ended September 29, 2024[29] - GAAP goodwill and intangible impairment for the consolidated operations was $821 million, accounting for 73.4% of revenue[34] - GAAP legal contingency and settlement was $(474) million, or (14.4)% of revenue[36] - Non-GAAP other expense was $(32) million, or (1.0)% of revenue[36] - Consolidated GAAP operating loss was $(1.008) billion, or (30.8)% of revenue[36] - Strategic investment related loss was $339 million, or 10.4% of revenue[36] - Goodwill and intangible impairment related to GRAIL is $821 million, representing 24.3% of revenue[38] - Legal contingency and settlement reversal for Q3 2024 is $14 million, representing 0.4% of revenue[38] Product and Innovation Updates - The company introduced the MiSeq i100 Series, Illumina's simplest and fastest benchtop sequencers[8] - The company 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[8] Other Financial Metrics - GAAP other expense, net for the consolidated operations was $(28) million, accounting for (2.6)% of revenue[34] - Non-GAAP other expense, net for the consolidated operations was $(6) million, representing (0.5)% of revenue[34] - Strategic investment-related loss, net for the consolidated operations was $19 million, accounting for 1.8% of revenue[34] - Core Illumina GAAP gross profit was $2.181 billion, or 67.6% of revenue[36] - Non-GAAP tax provision for Core Illumina is $48 million, representing 21.0% of revenue for the three months ended September 2024[43] - Non-GAAP tax provision for Consolidated is $48 million, representing 21.0% of revenue for the three months ended September 2024[44] - Non-GAAP tax provision for Consolidated is $77 million, representing 23.4% of revenue for the nine months ended September 2024[44]