Illumina announces strategy to accelerate value creation

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Aug 13, 2024, 11:00 ET

-- Company poised to accelerate revenue growth into high single digits over next three years, enabled by core genomics portfolio

-- Innovations to enable development of transformative applications using multiomics

-- Illumina to offer higher quality insights to customers, helping them improve the overall end-to-end workflow experience and lower cost

-- Delivering double digit to teens non-GAAP diluted earnings per share growth 2025-2027

-- Illumina and the Broad Institute of MIT and Harvard announce new research partnership to advance single-cell sequencing

SAN DIEGO, Aug. 13, 2024 /PRNewswire/ -- Illumina, Inc. (NASDAQ: ILMN) today is hosting a Strategy Update for investors to present its strategy and three-year financial outlook that features accelerating revenue growth and significant margin expansion.

"Illumina built the foundation of the genomics industry, and we will continue leading innovation across total sequencing workflows to support the next phase of our customers' success," said Jacob Thaysen, Chief Executive Officer of Illumina. "Over the next three years, we will bring to market impressive new innovations that will redefine the genome and drive significant, deeper biological insights through multiomics."

Today, Illumina and the Broad Institute of MIT and Harvard are also announcing a new research partnership to advance single-cell sequencing and accelerate adoption of high-capacity single-cell experiments, leveraging Illumina's Fluent technology. As part of their work together, Illumina and the Broad will partner on the development and validation of new kits to catalyze large-scale PeturbSeq CRISPR screening.

"Expanding our research partnership with Illumina to include Fluent's technology will support the Broad's efforts toward enabling billion cell experiments," said Niall Lennon, Senior Director of the Broad Institute's Genomics Platform. "Single-cell sequencing has transformed biomedical research in ways that were unimaginable as recently as 15 years ago. Right now it is one of the most exciting areas in biology."

Illumina is building new, scalable growth businesses that complement and accelerate its high-intensity, high-throughput sequencing franchise. The Company is executing on a series of innovations aligned with the diverse and evolving needs of its customers. These innovations will help them to:

Reinvent the genome: Lead broader whole-genome sequencing (WGS) utility by revolutionizing the workflow with novel sample preparation and integrated software.
Unlock deeper biology: Enable deeper biological insight with complete multiomic workflows that integrate with one another through interpretation and visualization tools.
Make next-generation sequencing (NGS) easy to operate in the laboratory by providing sample-to-insight workflow solutions, including the best-in-class software and informatics capabilities to pave the way to deep and comprehensive answers.
Turn data into insights: Deliver a software / AI platform that integrates and analyzes large data cohorts and deciphers variants of unknown significance.

Illumina expects its strategy to enable the company to accelerate its revenue growth to high single digits by 2027. The Company aims to drive double digit to teens non-GAAP diluted earnings per share (EPS) growth from 2025 to 2027 by accelerating revenue growth, leveraging operational efficiencies, and allocating its significant free cash flow using a systematic and disciplined approach.

"We have the right strategy to return to growth and increase our profitability. We are already executing that strategy and strengthening Illumina's relationship with customers in a challenging macroeconomic environment," said Ankur Dhingra, Chief Financial Officer of Illumina. "Looking ahead, we expect to see accelerating revenue growth over the next three years while also delivering differentiated earnings expansion."

Webcast details

The virtual event will begin at 8:00am Pacific Time. The event will feature presentations by members of Illumina's executive team and conclude with a Q&A session.

The webcast can be accessed through the Events & Presentations section of Illumina's Investor Relations website at investor.illumina.com. We recommend that participants pre-register for the event on our website or by using the following link: Illumina 2024 Strategy Update Registration. A replay will be posted on Illumina's Investor Relations website after the event and will be available for at least 30 days following.

Use of forward-looking statements

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) our ability to meet our revenue growth and earnings per share targets; (ii) changes in the rate of growth in the markets we serve; (iii) the volume, timing and mix of customer orders among our products and services; (iv) our ability to adjust our operating expenses to align with our revenue expectations; (v) our ability to manufacture robust instrumentation and consumables; (vi) the success of products and services competitive with our own; (vii) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (viii) the impact of recently launched or pre-announced products and services on existing products and services; (ix) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (x) to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xi) our ability to obtain approval by third-party payors to reimburse patients for our products; (xii) our ability to obtain regulatory clearance for our products from government agencies; (xiii) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xiv) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xv) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments and (xvi) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts' expectations, or to provide interim reports or updates on the progress of the current quarter.

The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the financial impact of items such as acquisition-related expenses, gains and losses from our strategic investments, fair value adjustments related to contingent consideration and contingent value rights, potential future asset impairments, restructuring activities, and the ultimate outcome of pending litigation without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

About Illumina

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 (Twitter), Facebook, LinkedIn, Instagram, TikTok, and YouTube.

Contacts

Investors:
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Media:
Bonny Fowler
740-641-5579
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SOURCE Illumina, Inc.