Illumina Announces Over 25,000 Global Instrument Installations and Strong NovaSeq X Performance at JPM2024

From January 8 to 11, 2024, the 42nd J.P. Morgan Healthcare Conference, known as the most prestigious, largest, and most informative healthcare investment event in the industry, is being held in San Francisco, California, USA.

Illumina CEO Jacob Thaysen said at the JPM meeting: "I am very pleased to announce that the preliminary assessment of Illumina's fourth-quarter performance has exceeded Wall Street expectations, primarily driven by sales of NovaSeq X instruments and consumables."

NovaSeq X's performance exceeds expectations, Illumina claims it has launched the most successful high-throughput DNA sequencer ever.

Since its debut at the end of 2022, the company has received 900 orders, completing the delivery of 79 NovaSeq X instruments in the fourth quarter of 2023, with a total of 352 instruments delivered within 2023. Approximately one-third were delivered to clinical institutions, while 20% went to users new to high-throughput DNA sequencing.

"But our focus is not just on NovaSeq X," Jacob Thaysen said. "In fact, we now have more than 25,000 instruments installed in laboratories around the world. This year, we successfully delivered over 2,200 instruments. The total installed base (most of which includes Illumina's low-throughput production line of small sequencers) also translates into approximately $2.8 billion in revenue from consumables supply."

For the key work arrangements in 2024, Jacob Thaysen and the Illumina management team have set three major priorities. First, increase the installed base of products such as NovaSeq X to capture more market share; second, focus on commercial operations to further improve profit margins; and finally, sell or spin off Grail as soon as possible.

Illumina Plans to Finalize Strategy by End of June: Either Sell Grail or Spin It Off as an Independent Company. "All options are on the table," said Illumina CFO Joydeep Goswami at the JPM conference. "It's premature to talk about potential valuation at this point — we'll let the market drive that process."

During this conference, Illumina also announced its preliminary financial results for the fourth quarter and fiscal year 2023 (unaudited).

Core Illumina Q4 2023 revenue was approximately $1.09 billion, a 2% increase from Q4 2022. Fiscal year 2023 revenue was approximately $4.431 billion, a 3% decrease from fiscal year 2022.

The comprehensive GAAP operating profit margin for the fourth quarter of 2023 was approximately (15.5%),

The comprehensive non-GAAP operating profit margin for FY2023 was approximately (24.0%), and for Q4 2023, it was approximately 3.8%.

Approximately 5.3% for FY2023 and approximately 2.4% for Core Illumina GAAP operating margin in Q4 2023.

Core Illumina Non-GAAP Operating Margin for Q4 2023 Approximately 18.0%, Fiscal Year 2023 Approximately 12.3%

Approximately 19.8% in FY2023

(Note: Illumina is expected to announce its full financial results for the fourth quarter and fiscal year 2023 after the market closes on Thursday, February 8, 2024. The aforementioned results are preliminary and unaudited, and are subject to final accounting and annual audit procedures, which may result in adjustments.)

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