1. ILMN's Q4 2024 revenue matched expectations at $1.104 billion. 2. Gross margin increased to 65.9%, indicating operational improvements. 3. Operating profit surged to $175 million from a loss the previous year. 4. Fiscal 2025 guidance suggests low single-digit revenue growth next year. 5. GRAIL's impact on financial results diminished as it was spun off.
Increased revenue and operating profit indicate a positive outlook for ILMN.
The earnings report shows strong performance, impacting investor confidence and expectations.
The reported results are likely to boost investor sentiment quickly, influencing short-term price.
Illumina, Inc. (Nasdaq: ILMN) ("Illumina" or the "company") today announced its financial results for the fourth quarter and fiscal year 2024. The financial results for fiscal year 2024 and Q4 2023 and fiscal year 2023 include the financial results for GRAIL which was spun off on June 24, 2024.
"The Illumina team delivered fourth quarter revenue that exceeded our expectations, and we made significant progress in 2024 toward our goals to drive customer-centric innovation, margin expansion, and EPS growth," said Jacob Thaysen, Chief Executive Officer. "For 2025, we will continue our transformation, executing our refreshed strategy that prioritizes a sharp focus on customers and our own operational excellence in order to drive Illumina forward."
| GAAP | Non-GAAP (a) | Dollars in millions, except per share amounts | Q4 2024 | Q4 2023 |
|---|---|---|---|---|
| Revenue (b) | $ 1,104 | $ 1,097 | ||
| Gross margin (c) | 65.9 % | 63.3 % | ||
| Research and development (R&D) expense | $ 256 | $ 260 | ||
| Selling, general and administrative (SG&A) expense | $ 279 | $ 391 | ||
| Goodwill and intangible impairment | $ — | $ 6 | ||
| Operating profit | $ 175 | $ 33 |
| GAAP | Non-GAAP (a) | Dollars in millions, except per share amounts | Q4 2024 | Q4 2023 |
|---|---|---|---|---|
| Revenue | $ 1,104 | $ 1,122 | ||
| Gross margin | 65.9 % | 60.1 % | ||
| R&D expense | $ 256 | $ 341 | ||
| SG&A expense | $ 279 | $ 485 | ||
| Net income (loss) | $ 187 | $ (176) |
Capital expenditures for free cash flow purposes were $42 million for Q4 2024. Cash flow provided by operations was $364 million, compared to $224 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $322 million for the quarter, compared to $173 million in the prior year period. At the close of the quarter, the company held $1.22 billion in cash, cash equivalents and short-term investments.
| GAAP | Non-GAAP (a) | Dollars in millions, except per share amounts | 2024 | 2023 |
|---|---|---|---|---|
| Revenue (b) | $ 4,332 | $ 4,438 | ||
| Gross margin | 67.1 % | 64.4 % | ||
| R&D expense | $ 988 | $ 1,030 | ||
| SG&A expense | $ 900 | $ 1,248 | ||
| Net income | $ 894 | $ 269 |
Fiscal year 2025 guidance does not attempt to reflect any impact from the recent China Ministry of Commerce announcement and assumes a continuation of the current macroeconomic and political environments. For fiscal year 2025, the company continues to expect Core Illumina constant currency revenue growth in the low single digits (reported revenue in the range of approximately $4.28 billion to $4.4 billion) and non-GAAP operating margin of approximately 23%. The company expects non-GAAP diluted EPS in the range of $4.50 to $4.65.
The conference call will begin at 1:30 pm Pacific Time (4:30 pm Eastern Time) on Thursday, February 6, 2025. Interested parties may access the live webcast via the Investor Info section of Illumina's website or directly through the following link - Illumina Webcast. To ensure timely connection, please join at least ten minutes before the scheduled start of the call. A replay of the conference call will be posted on Illumina's website after the event and will be available for at least 30 days following.
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X, Facebook, LinkedIn, Instagram, TikTok, and YouTube.