Illumina, Inc. reported its financial results for the third quarter of 2024, revealing a total revenue of $1,080 million, a decrease from $1,119 million in Q3 2023. Year-to-date (YTD) revenue also declined to $3,268 million from $3,382 million in the same period last year. The decline in revenue was primarily attributed to decreased sales from sequencing instruments, despite an increase in consumables revenue, which rose to $741 million in Q3 2024 from $807 million in Q3 2023.
The company achieved a gross profit of $745 million in Q3 2024, up from $684 million in Q3 2023, resulting in a gross profit margin increase to 68.9% from 61.1%. This improvement was driven by operational cost savings and a favorable mix of sequencing consumables. However, the loss from operations for YTD 2024 was $1,008 million, compared to a loss of $905 million in YTD 2023, largely due to a significant increase in goodwill and intangible asset impairments totaling $1,889 million.
Illumina's net income for Q3 2024 was $705 million, a substantial recovery from a net loss of $754 million in Q3 2023. The year-to-date net loss increased to $1,410 million from $986 million in the prior year. The effective tax rate for Q3 2024 was 2.1%, compared to 3.6% in Q3 2023.
Significant strategic developments included the completion of the Spin-Off of GRAIL on June 24, 2024, which involved distributing approximately 85.5% of GRAIL's outstanding shares to Illumina stockholders. This transaction resulted in a cash contribution of $974 million to GRAIL for operational funding and incurred $53 million in separation-related costs. Following the Spin-Off, Illumina retained a 14.5% interest in GRAIL.
Illumina's total assets decreased to $6,014 million as of September 29, 2024, down from $10,111 million at the end of 2023. Total stockholders’ equity also saw a significant decline to $2,125 million from $5,745 million, primarily due to the Spin-Off and increased accumulated deficits. The company’s term debt rose to $1,988 million, up from $1,489 million at the end of 2023.
In terms of operational adjustments, Illumina implemented cost reduction initiatives, including workforce reductions and facility consolidations, which contributed to a decrease in selling, general, and administrative expenses by 28% YTD 2024. The company also recorded restructuring charges related to asset impairments and incurred a loss on debt extinguishment of $5 million in Q3 2024.
Overall, Illumina's financial performance reflects a challenging environment marked by strategic shifts and operational restructuring, alongside a notable recovery in net income for the latest quarter.
About ILLUMINA, INC.
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