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Illumina 8-K Report, Financial Results (Aug 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 6, 2024
Period End
August 6, 2024
Security
ILMN
In the record · 2016–202610-K1110-Q338-K167

ILMN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 167 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Nov ’17Nov ’17
  2. Material agreement8-K · Sep ’20Sep ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Oct ’26Oct ’26

01—Abstract

Summary

Summary of the 8-K filed August 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Illumina, Inc. reported second-quarter 2024 results on August 6, 2024, with consolidated revenue of $1,112 milliona, down from $1,176 million in the prior-year quarter, and a GAAP net loss of $1,988 million, or $(12.48) per diluted share, driven by a $1,886 million goodwill and intangible impairment tied to the GRAIL segment.

The company completed the spin-off of GRAIL on June 24, 2024, and the results include GRAIL's consolidated financials through that date. On a non-GAAP basis, consolidated net income was $57 millionb, or $0.36 per diluted share, versus $0.32 in the prior-year period. Core Illumina revenue was $1,092 million, down 6% from the prior-year quarter (also down 6% in constant currency) and up 3% from Q1 2024, per the release.

Core Illumina GAAP operating margin was 40.5% and non-GAAP operating margin was 22.2%, with non-GAAP diluted EPS of $1.09c. Management cited solid consumable sales alongside softer instrument demand in a constrained funding environment. Cash flow from operations was $80 million and free cash flow was $48 million for the quarter, with $994 million in cash, cash equivalents and short-term investments at quarter end.

For fiscal 2024, Illumina lowered its Core Illumina revenue guidance to a decline of 2% to 3% (down 1.5% to 2.5% in constant currency) and raised its Core Illumina non-GAAP operating margin guidance to 20.5% to 21%. The company also introduced Core Illumina non-GAAP diluted EPS guidance of $3.80 to $3.95d.

02—Key points

Key Highlights

  1. Consolidated Q2 2024 revenue of $1,112 million, down from $1,176 million in Q2 2023
  2. GAAP net loss of $1,988 million ($(12.48) per diluted share), including a $1,886 million goodwill and intangible impairment related to the GRAIL segment
  3. Core Illumina revenue of $1,092 million, down 6% year over year and up 3% from Q1 2024
  4. Core Illumina non-GAAP operating margin of 22.2% and non-GAAP diluted EPS of $1.09 for Q2 2024
  5. FY2024 Core Illumina revenue guidance lowered to a decline of 2% to 3%; non-GAAP operating margin guidance raised to 20.5% to 21%
  6. Introduced FY2024 Core Illumina non-GAAP diluted EPS guidance of $3.80 to $3.95
  7. GRAIL spin-off completed June 24, 2024; Q2 free cash flow of $48 million and $994 million in cash and short-term investments

03—Questions

Frequently Asked Questions

  1. Why did Illumina report a large GAAP net loss in the second quarter of 2024?

    The GAAP net loss of $1,988 million was driven primarily by a $1,886 million goodwill and intangible impairment related to the GRAIL segment, which included $1,466 million in goodwill and $420 million in IPR&D intangible asset impairment. The filing excludes these impairment charges from non-GAAP results.

  2. How did Core Illumina perform in the quarter?

    Core Illumina revenue was $1,092 million, down 6% from Q2 2023 and down 6% on a constant currency basis, and up 3% from Q1 2024. GAAP operating margin was 40.5% and non-GAAP operating margin was 22.2%. The company attributed gross margin improvement mainly to a more favorable mix of sequencing consumables and operational excellence cost savings.

  3. What changed in Illumina's fiscal 2024 outlook?

    Illumina lowered its Core Illumina revenue guidance to a decline of 2% to 3% (down 1.5% to 2.5% in constant currency) compared with fiscal 2023, and raised its Core Illumina non-GAAP operating margin guidance to 20.5% to 21%. It also introduced Core Illumina non-GAAP diluted EPS guidance of $3.80 to $3.95.

  4. What did management say about demand?

    CEO Jacob Thaysen said consumable sales remained solid as customers continued to increase sequencing activity, but instrument demand has softened in a constrained funding environment. He also said the company is progressing its operating excellence initiatives and will deliver expanded margins this year.

  5. What was the GRAIL spin-off and how is it reflected in the results?

    Illumina completed the spin-off of GRAIL into a new public company on June 24, 2024. The Q2 2024 consolidated results include GRAIL's financials through June 24, 2024, and GRAIL is presented as a separate segment with Q2 revenue of $29 million and a GAAP operating loss of $2,078 million.

04—Continue

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