Illumina, Inc.
CEO : Mr. Francis A. deSouza
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 0.0% YoY | -688.9% | -29.0% | 2023-02-07 |
Joydeep Goswami says,
Summary of ILMN Q4 2022 Earnings Call Transcript
- Consolidated revenue for Q4 2022 was $1.08 billion, down 10% YoY or down 7% on a constant currency basis.
- Core Illumina sequencing consumables revenue declined 13% YoY, driven by delayed recruitment and COVID disruptions.
- COVID surveillance contributed approximately $20 million in total revenue, in line with expectations and down $30 million YoY.
- Full year consolidated revenue is expected to grow 7% to 10% in 2023.
- Annual pull-through for NovaSeq 6000 is expected to be approximately $900,000 to $1 million per system in 2023.
- GRAIL is expected to deliver revenue in the range of $90 million to $110 million for 2023 with a growth of 82% YoY.
- Consolidated non-GAAP operating margin of approximately 8% in core Illumina non-GAAP operating margin of approximately 22% is expected for 2023.
- Consolidated non-GAAP tax rate of approximately 36% is expected with non-GAAP earnings per diluted share in the range of $1.25 to $1.50.
- For Q1 2023, consolidated revenue is expected to be in the range of $1.05 billion to $1.07 billion reflecting a sequential decrease of 212 basis points from Q4 2022.
Francis deSouza says,
Financial Results
- Illumina delivered Q4 revenue of approximately $1.1 billion and full year 2022 revenue of approximately $4.6 billion, in line with the upper end of their revised guidance range.
- More than 3,200 instruments were placed in 2022, increasing the installed base to approximately 23,000 instruments worldwide.
High-throughput platform
- NovaSeq X has had the strongest pre-order book of any Illumina instrument launch, and this demand will catalyze a multi-year upgrade cycle.
- Orders for NovaSeq X series continue to grow, with strong global interest from more than 25 countries, 4x more than in the first quarter of the NovaSeq 6000 launch.
- Stronger-than-expected clinical adoption and orders from new-to-high-throughput customers who are bringing sequencing in-house due to NovaSeq X’s ease of use and cost benefits.
- More than 340 NovaSeq 6000s were shipped in 2022, with over 1/3 of those instruments for oncology testing and nearly half to new-to-high-throughput or new-to-Illumina customers.
Mid-throughput platform
- A record 1,215 instruments were shipped in 2022, and the fourth consecutive record year for NextSeq shipments.
- The fourth quarter of 2022 was the highest quarter on record for NextSeq 1000/2000 shipments.
- Close to 25% of NextSeq 1000/2000 units in 2022 were placed with new-to-Illumina customers.
Low-throughput platform
- Approximately 1,670 instruments were shipped in 2022, bringing nearly 700 new customers to Illumina.
- Low-throughput instruments consistently open new geographies and applications while serving as an effective entry point to sequencing.
Clinical Markets
- Shipments to clinical customers represented 45% of core Illumina consumables.
- Oncology testing consumables grew 7% YoY from utilization of MGS-based molecular profiling across early detection, therapy selection, and minimal residual disease.
- For TruSight Oncology 500 distributed therapy selection assay, sample volume grew approximately 60% YoY across more than 500 accounts.
- GRAIL’s Galleri is the only multi-cancer early detection test in a $40+ billion market and had the fastest first-year revenue ramp in cancer screening test history.
Research and Applied Markets
- Consumable shipments represented 55% of core Illumina consumables in 2022.
- To boost diversity in genetic databases, Illumina recently announced an agreement with Amgen and its subsidiary, deCODE Genetics, to sequence the first 35,000 genomes in their collaboration with Nashville Biosciences.
2023 Outlook
- Illumina has started shipping NovaSeq X Plus systems to customers and is on track to ship 40 to 50 units in Q1 and over 300 units for the year.
- Operational capabilities have been boosted, including state-of-the-art consumable manufacturing facilities in the U.K., Singapore, and San Diego, adding 9 new production lines.
- Global commercial team is equipped to guide customers as they receive the first NovaSeq X shipments.
Q & A sessions,
NovaSeq X Sustainability Features
- 90% reduction in packaging waste and weight
- 50% reduction in plastic usage compared to NovaSeq 6000
- Nearly 500 tons of dry ice savings per year
Long-Read Capabilities
- Illumina Complete Long-Reads offers long-read human whole genome assay and an enrichment panel
- Enrichment panel offers comprehensive, high-accuracy, long-read view for as low as $600 per genome
- More than a dozen customers have evaluated data and feedback has been positive
NovaSeq X Demand and Customer Feedback
- 155 instruments in preorders and 250 in advanced pipeline
- Customers excited about power, economics, and sustainability features
- X series workflow performance significantly improved and easier to use
- Research customers see X as a must-have to remain competitive for grants
- Clinical customers designing new assays and tests on the X
GRAIL Divestiture and Capitalization
- Divestiture order expected at end of Q1 with dual track pursued
- CAPITALIZATION to be addressed after divestiture order
GRAIL NHS Trial and FDA Submission
- NHS trial readout expected end of year/beginning of next year
- Next phase paid rollout to 1 million people over 2 years
- Breakthrough Designation from FDA and submitting data from NHS trial for final submission
- Final module submission at end of next year, extending into beginning of year after
No bad stock 