Myriad(US:MYGN)2025-02-28 21:05Revenue Performance - Total revenue for the year ended December 31, 2024, was $837.6 million, representing an 11% increase from $753.2 million in 2023[293][306] - Revenue growth was driven by a 23% increase in Pharmacogenomics, a 17% increase in Prenatal, and an 11% increase in Hereditary Cancer[295] - The average revenue per test increased, contributing to the overall revenue growth, alongside a rise in testing volume across most product categories[306][307] - Revenue for 2024 increased to $837.6 million, a 11.2% increase from $753.2 million in 2023[364] - Revenue from Hereditary Cancer products increased to $364.5 million in 2024, up from $327.8 million in 2023, marking an increase of 11.5%[405] - The total revenue from Pharmacogenomics products was $170.2 million in 2024, an increase from $138.5 million in 2023, representing a growth of 22.9%[405] - Revenue from GeneSight testing recognized from UnitedHealthcare was approximately $45.0 million in 2024, with anticipated negative impacts from changes in coverage in 2025[322] Financial Performance - The company reported a net loss of $127.3 million for the year, with a basic and diluted loss per share of $1.41[293] - Net loss for 2024 decreased to $127.3 million from $263.3 million in 2023, showing improved financial performance[364] - Basic and diluted net loss per share improved to $1.41 in 2024 from $3.18 in 2023, indicating a positive trend for shareholders[364] - Operating loss improved to $123.5 million in 2024 from $257.4 million in 2023, suggesting operational efficiencies[364] - The company reported an accumulated deficit of $756.8 million as of December 31, 2024, compared to $629.5 million in 2023[362] Expenses and Costs - Cost of revenue increased by $16.0 million to $252.2 million, with the cost of revenue as a percentage of total revenue decreasing to 30.1% from 31.4%[308] - Research and development expense increased by $24.7 million to $113.4 million in 2024, representing a 28% increase compared to 2023[309] - Sales and marketing expense decreased by $5.1 million to $284.1 million in 2024, a 2% decline from the previous year[310] - General and administrative expense decreased by $7.8 million to $275.9 million in 2024, a 3% decrease compared to 2023[311] - Stock-based compensation expense increased to $49.8 million in 2024 from $40.7 million in 2023, reflecting higher employee compensation costs[373] Cash Flow and Liquidity - Cash and cash equivalents decreased by $29.7 million to $102.4 million as of December 31, 2024, compared to $132.1 million in 2023[323] - Cash flows used in operating activities improved by $102.2 million, with a cash outflow of $8.7 million in 2024 compared to $110.9 million in 2023[324] - Total cash, cash equivalents, and restricted cash at the end of 2024 was $111.9 million, down from $140.9 million in 2023[384] - Proceeds from the revolving credit facility increased to $120.0 million in 2024, compared to $80.0 million in 2023, showing enhanced liquidity[373] Asset Management - Total assets decreased to $1,027.6 million in 2024 from $1,146.5 million in 2023, primarily due to a reduction in intangible assets[362] - Long-lived assets decreased from $832.9 million in 2023 to $729.5 million in 2024, with U.S. assets at $728.1 million[483] - As of December 31, 2024, total intangible assets amounted to $591.2 million, with a net value of $262.4 million after accumulated amortization of $328.8 million[435] Impairments and Legal Matters - Goodwill and long-lived asset impairment charges were $56.8 million in 2024, with no corresponding charges in 2023[313] - An impairment charge of $43.0 million was recognized for the developed technology intangible asset, reducing its carrying value to an estimated fair value of $89.0 million[334] - The Company recognized an impairment charge of $43.0 million for developed technology, reducing its carrying value to an estimated fair value of $89.0 million[435] - The Company received a civil investigative demand from the U.S. Department of Justice concerning potential violations of the False Claims Act[471] Future Outlook and Strategic Initiatives - The company anticipates a negative impact on Pharmacogenomics revenue in 2025 due to changes in UnitedHealthcare's coverage policy for the GeneSight test[294][307] - The company plans to transition all laboratory activities to next-generation facilities by early 2025 to enhance operational efficiency[292] - The Company plans to complete the transition of its remaining laboratory facilities to next-generation laboratory facilities in early 2025[473] Tax and Regulatory Matters - The total income tax expense for 2024 was $3.8 million, compared to $1.1 million in 2023[461] - The Company had net unrecognized tax benefits of $51.7 million as of December 31, 2024, an increase from $48.1 million in 2023[463] - The Company has a federal net operating loss carryforward of $32.2 million, expiring in 2033, and a federal research credit of $10.5 million, expiring in 2027[463] Stock and Shareholder Information - Common stock issued and outstanding increased from 89.9 million in 2023 to 91.3 million in 2024, reflecting a growth of 1.6%[449] - The weighted-average shares outstanding used to compute basic earnings per share increased to 90.6 million in 2024 from 82.8 million in 2023[416] - The total unrecognized stock-based compensation expense as of December 31, 2024, was $70.9 million, to be recognized over a weighted-average period of 2.0 years[457]