Illumina, Inc. · NASDAQ:ILMN

Illumina — Q4 2024 Earnings Presentation

43 slides from Illumina's earnings presentation, Feb 6, 2025

1. Slide 1: Q4 2024 Earnings Presentation

   Q4 2024 Earnings Presentation February 6, 2025 © 2025 Illumina, Inc. All rights reserved.

2. Slide 2: Presenters

   Jacob Thaysen Ankur Dhingra Salli Schwartz Chief Executive Officer Chief Financial Officer Head of Investor Relations 2

3. Slide 3: Cautionary Notes

   Cautionary Notes This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of gr

4. Slide 4: Jacob Thaysen

   Jacob Thaysen Chief Executive Officer 4

5. Slide 5: Significant Progress Towards our Strategic Goals

   Significant Progress Towards our Strategic Goals Launched corporate strategy to return to high single-digit growth by 2027 Deepened focus on customers and partners Introduced new innovations across the sequencing workflow 2024 Made strong progress with the NovaSeq X transition Key Strategic Achievem

6. Slide 6: Illumina Q4'24 Results

   Illumina Q4’24 Results Revenue Exceeded Our Expectations +1% $1.1B YoY (CC) Revenue +1% YoY CC = constant currency. YoY = year-over-year. Note: See Appendix for reconciliations of GAAP and non-GAAP financial measures. 6 Note: Growth rates are approximate.

7. Slide 7: Q4'24 NovaSeq X Updates

   Q4’24 NovaSeq X Updates Installed Base Updates 91 Q4’24 Placements 630 Installed Base1 Pull-Through Updates $1.3M FY24 Avg. Pull-Through2 1. NovaSeq X installed base includes reagent rentals. 2. Average pull-through reflects FY24 average annualized figures per instrument. 7

8. Slide 8: Illumina Q4'24 Regional Revenue

   Illumina Q4’24 Regional Revenue $589M $326M +3% CC; +2%YoY 53% +3% CC; +4% YoY 30% $1.1B Illumina Revenue $80M $109M +1% CC; (2%) YoY 10% (10%) CC; (12%) YoY 7% Americas Europe AMEA Greater China Note: AMEA = Asia Pacific, Middle East and Africa. CC = constant currency. YoY = year-over-year. Note: R

9. Slide 9: Key Priorities to Guide Strategy Execution

   Key Priorities to Guide Strategy Execution Deeper Customer & Partner Collaboration Continuous Innovation Commercial & Operational Excellence Announced Collaboration Announced Collaboration Brings together Illumina’s software capabilities Creates one of the largest genetic databases linked and NVIDIA

10. Slide 10: Key Priorities to Guide Strategy Execution

    Key Priorities to Guide Strategy Execution Deeper Customer & Partner Collaboration Continuous Innovation Commercial & Operational Excellence Q4’24 Product Launches 70+ Q4’24 Placements Single Flow Cell 25B 100- and NovaSeq X 200-cycle kits MiSeq i100 Looking Ahead Illumina Proteomics Solution Conste

11. Slide 11: Key Priorities to Guide Strategy Execution

    Key Priorities to Guide Strategy Execution Deeper Customer & Partner Collaboration Continuous Innovation Commercial & Operational Excellence Core Illumina FY23 FY24 Non-GAAP Gross 65.8% 68.6% $100M+ Margin FY24 Cost Savings Non-GAAP Operating Margin 19.9% 21.3% Note: See Appendix for reconciliations

12. Slide 12: Summary 2025 Guidance

    Summary 2025 Guidance YoY Revenue Growth Non-GAAP Non-GAAP in Constant Currency1 Operating Margin Diluted EPS Low Single-Digit ~23% $4.50-$4.65 Percent Range Note: FY25 guidance does not attempt to reflect any impact from recent China announcement and assumes a continuation of the current macroecono

13. Slide 13: Long-Term Financial Targets

    Long-Term Financial Targets From 08/13/2024 Strategy Update Financial Targets Revenue High single-digit growth by 2027 Non-GAAP Operating Margin 500+ bps expansion Non-GAAP EPS Double-digit to teens growth Note: See statement regarding use of non-GAAP financial measures. 13

14. Slide 14: Ankur Dhingra

    Ankur Dhingra Chief Financial Officer 14

15. Slide 15: Core Illumina Q4'24 Financials

    Core Illumina Q4’24 Financials Core Illumina Revenue Sequencing Consumables Revenue $1.1B $698M +1% +1% +2% +2% YoY (CC) YoY YoY (CC) YoY Driven by HT consumables while above- Driven by continued transition of HT to expectations performance was driven by NovaSeq X and growth in MT consumables NovaSe

16. Slide 16: Q4'24 NovaSeq X Transition Update

    Q4’24 NovaSeq X Transition Update HT Gb Data & Consumables Revenue Attributed to NovaSeq X During Q4’24 >65% Total Gb Shipped ~40% Total Consumables Revenue ~80% ~50% Research Gb Shipped Clinical Gb Shipped Note: Gb = gigabases. HT = high-throughput. 16

17. Slide 17: Q4'24 Total Sequencing Activity

    Q4’24 Total Sequencing Activity Gb Output Growth on Connected High- and Mid- Throughput Instruments >30% YoY Growth Robust growth from both clinical & research customers Note: Gb = gigabases. YoY = year-over-year. 17

18. Slide 18: Core Illumina Q4'24 Financials (cont'd.)

    Core Illumina Q4’24 Financials (cont’d.) Sequencing Instruments Revenue Sequencing Service & Other $155M $151M (3%) (4%) (1%) (1%) YoY (CC) YoY YoY (CC) YoY Driven by a decline in MT shipments due to Due to timing of certain strategic partnership capital constraints, partially offset by the revenues

19. Slide 19: Core Illumina Q4'24 Additional P&L Results

    Core Illumina Q4’24 Additional P&L Results Non-GAAP Gross Margin Drivers Operational excellence initiatives that continue to 67.4% improve productivity and deliver cost savings 270 bps YoY Continued growth in our consumables business Note: YoY = year-over-year. Note: See Appendix for reconciliations

20. Slide 20: Core Illumina Q4'24 Additional P&L Results (cont'd.)

    Core Illumina Q4’24 Additional P&L Results (cont’d.) Non-GAAP Operating Expenses Non-GAAP Operating Margin $526M 19.7% 120 bps vs. Q4’23 Reflecting cost control measures and project Reflecting discipline and operational excellence expenditures tied to key investments measures delivering results Note

21. Slide 21: Core Illumina Q4'24 Additional P&L Results (cont'd.)

    Core Illumina Q4’24 Additional P&L Results (cont’d.) Non-GAAP Tax Rate Non-GAAP Weighted Average Diluted Share Count Q4’24 FY24 23.7% 23.6% ~160M Non-GAAP Non-GAAP Net Income Diluted EPS $152M $0.95 Note: EPS = earnings per share. Note: See Appendix for reconciliations of GAAP and non-GAAP financial

22. Slide 22: Core Illumina Cash Flow & Balance Sheet Items Q4'24

    Core Illumina Cash Flow & Balance Sheet Items Q4’24 Cash Flow from Operations Share Repurchase Program $364M 134K $17M $129.02 Illumina Shares Total Cost Avg. Price per Share Capital Expenditures $42M Cash, Cash Equivalents & Short-Term Investments Free Cash Flow $1.22B $322M Note: See Appendix for

23. Slide 23: Core Illumina Guidance for FY'25

    Core Illumina Guidance for FY’25 As of 02/06/2025 Constant Currency Revenue Sequencing Revenue Growth Total Revenue Growth In-Line with Total Revenue Low Single-Digits Sequencing Consumables Sequencing Instruments Assumes FX impact of ~120 bps Low Single-Digits Growth Low Single-Digits Decline Annua

24. Slide 24: Core Illumina Guidance for FY'25 (cont'd.)

    Core Illumina Guidance for FY’25 (cont’d.) As of 02/06/2025 Additional P&L and Cash Flow Metrics Non-GAAP Tax Rate Other Income (Expense), Net Non-GAAP Operating Margin1 ~22.5% ~($60M) Non-GAAP Weighted Average Diluted Share Count Non-GAAP EPS Capital Expenditures ~23% ~160M $4.50-$4.65 ~($200M) Not

25. Slide 25: Core Illumina Guidance for Q1'25

    Core Illumina Guidance for Q1’25 As of 02/06/2025 Constant Currency Revenue Non-GAAP Operating Margin Non-GAAP EPS Flat to (1%) ~20.5% $0.93-$0.98 Decline Assumes FX impact of ~140 bps Note: EPS = earnings per diluted share. Note: All growth rates shown reflect year-over-year comparisons. 25 Note: S

26. Slide 26: Jacob Thaysen

    Jacob Thaysen Chief Executive Officer 26

27. Slide 27: 27

    27

28. Slide 28: Q&A

    Q&A Jacob Thaysen Ankur Dhingra 28

29. Slide 29: Our Mission

    Our Mission: To improve human health by unlocking the power of the genome

30. Slide 30: Appendix

    Appendix © 2025 Illumina, Inc. All rights reserved.

31. Slide 31: FY24 Active Installed Base

    FY24 Active Installed Base High-Throughput1 Mid-Throughput Low-Throughput NovaSeq X Series NovaSeq 6000 NextSeq 1k/2k NextSeq 500/550 MiSeq i100 | MiSeq MiniSeq | iSeq 100 First Shipment Date Q1’23 Q1’17 Q4’20 | Q1’20 Q1’14 | Q1’15 Q4’24 | Q3’11 Q1’16 | Q1’18 FY24 Shipments 266 ~30 ~520 ~90 ~360 ~38

32. Slide 32: Statement regarding use of non-GAAP financial measures

    Statement regarding use of non-GAAP financial measures The company reports non-GAAP results for diluted earnings per share, net income, gross margin, operating expenses, including research and development expense, selling general and administrative expense, legal contingencies and settlement, and go

33. Slide 33: Condensed Statements of Cash Flows

    Illumina, Inc. Condensed Statements of Cash Flows (In millions) (unaudited) TABLE 1: CONSOLIDATED STATEMENTS OF CASH FLOWS AND FREE CASH FLOWS: Three Months Ended Year Ended December 29, December 31, December 29, December 31, 2024 2023 2024 2023 Net cash provided by operating activities $ 364 $ 224

34. Slide 34: Results of Operations - Constant Currency Revenue

    Illumina, Inc. Results of Operations - Constant Currency Revenue (Dollars in millions) (unaudited) TABLE 1: CORE ILLUMINA - CONSTANT CURRENCY REVENUE: Three Months Ended Year Ended December 29, December 31, % December 29, December 31, % 2024 2023 Change 2024 2023 Change Revenue $ 1,104 $ 1,097 1% $

35. Slide 35: Constant Currency Revenue by Source

    Illumina, Inc. Results of Operations - Constant Currency Revenue by Source (Dollars in millions) (unaudited) TABLE 1: CORE ILLUMINA - CONSTANT CURRENCY REVENUE BY SOURCE: Three Months Ended December 29, December 31, % Change 2024 2023 Sequencing consumables revenue $ 698 $ 687 2% Less: Hedge gains 5

36. Slide 36: Results of Operations - Revenue by Region

    Illumina, Inc. Results of Operations - Revenue by Region (Dollars in millions) (unaudited) TABLE 1: CORE ILLUMINA - REVENUE BY REGION: Three Months Ended Year Ended December 29, December 31, % Change December 29, December 31, % Change 2024 2023 2024 2023 AMR revenue $ 589 $ 576 2% $ 2,401 $ 2,455 (2

37. Slide 37: Results of Operations - Non-GAAP

    Illumina, Inc. Results of Operations - Non-GAAP (In millions, except per share amounts) (unaudited) TABLE 1: CORE ILLUMINA - RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE: Three Months Ended Year Ended December 29, December 29, December 31, 2024 2024 2023 GAAP earnings per share - d

38. Slide 38: Results of Operations - Non-GAAP (continued)

    Illumina, Inc. Results of Operations - Non-GAAP (continued) (In millions, except per share amounts) (unaudited) TABLE 3: CONSOLIDATED - RECONCILIATION OF GAAP AND NON-GAAP DILUTED EARNINGS (LOSS) PER SHARE: Three Months Ended Year Ended December 29, December 31, December 29, December 31, 2024 2023 2

39. Slide 39: Results of Operations - Non-GAAP (continued)

    Illumina, Inc. Results of Operations - Non-GAAP (continued) (Dollars in millions) (unaudited) TABLE 5: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE: Three Months Ended December 29, 2024 December 31, 2023 Core/Consolidated Core Illumina GRAIL Elims Consolidated GA

40. Slide 40: Results of Operations - Non-GAAP (continued)

    Illumina, Inc. Results of Operations - Non-GAAP (continued) (Dollars in millions) (unaudited) TABLE 5: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE: Year Ended December 29, 2024 Core Illumina GRAIL Elims Consolidated GAAP gross profit (loss) (b) $ 2,909 67.1 % $

41. Slide 41: Results of Operations - Non-GAAP (continued)

    lllumina, Inc. Results of Operations - Non-GAAP (continued) (Dollars in millions) (unaudited) TABLE 5: RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE: Year Ended December 31, 2023 Core Illumina GRAIL Elims Consolidated GAAP gross profit (loss) (b) $ 2,856 64.4 % $

42. Slide 42: Notes to non-GAAP tables

    Amounts in tables are rounded to the nearest millions. As a result, certain amounts may not recalculate. Percentages of revenue are calculated based on the revenue of the respective segment. (a) Non-GAAP gross profit, included within non-GAAP operating profit (loss), is a key measure of the effectiv

43. Slide 43: Reconciliation of GAAP and Non-GAAP Tax Provision

    Illumina, Inc. Results of Operations - Non-GAAP (continued) (Dollars in millions) (unaudited) TABLE 6: CORE ILLUMINA - RECONCILIATION OF GAAP AND NON-GAAP TAX PROVISION: Three Months Ended Year Ended December 29, December 29, 2024 2024 GAAP tax provision $ 70 37.9 % $ 229 20.4 % Incremental non-GAAP

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