Illumina 43rd Annual J.P. Morgan Healthcare Conference PDF Free Download
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© 2025 Illumina, Inc. All rights reserved.
CEO
Jacob Thaysen, Ph.D.
43rd Annual
J.P. Morgan Healthcare Conference
January 14, 2025
J.P. Morgan Healthcare Conference 2025
Cautionary Notes on 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:
▪Our ability to meet our revenue and earnings per share growth targets;
▪Changes in the rate of growth in the markets we serve;
▪The volume, timing and mix of customer orders among our products and services;
▪Our ability to adjust our operating expenses to align with our revenue expectations;
▪Our ability to manufacture robust instrumentation and consumables;
▪The success of products and services competitive with our own;
▪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;
▪The impact of recently launched or pre-announced products and services on existing products and services;
▪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;
▪To deploy new products, services, and applications, and to expand the markets for our technology platforms;
▪Our ability to obtain approval by third-party payors to reimburse patients for our products;
▪Our ability to obtain regulatory clearance for our products from government agencies;
▪Our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business;
▪Uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict;
▪The application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments
▪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
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J.P. Morgan Healthcare Conference 2025
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Agenda
IIllumina Overview
II Preliminary Results & Financial Outlook
III Strategy Execution
IV Our Path Ahead
J.P. Morgan Healthcare Conference 2025
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Agenda
IIllumina Overview
J.P. Morgan Healthcare Conference 2025
Illumina’s Global Position of Strength
5
Note: Gb = gigabase. Pb = petabase (1 Pb = 1M gigabases). GDT = genetic disease testing. RH = reproductive health. LTM = last twelve months.
1. Reflects Gb shipped for ILMN sequencers across the throughput spectrum. Gb shipped correlates closely with data generated.
2. Preliminary unaudited Core Illumina FY24 results.
3. See appendix for reconciliations of GAAP and non-GAAP financial measures.
4. As of 12/29/2024.
Countries
165+ Employees
~9k
Market Segments2
% of Sequencing Consumables
FY24 Revenue2
~$4.33B FY24 Free Cash Flow2,3
~$1.07B Gross Debt / LTM EBITDA2,4
~1.75x
Total Active Installed Base
>22k
Data Generated on
ILMN Sequencers1
>480 Pb Clinical Markets2
% of Clinical Sequencing Consumables
56%
44% 50%
25%
22% 3%
Clinical
Research
& Applied
Oncology
GDT
RH
Other
Reach
Scale
Strength
YoY Growth
Sequencing Volume
+35%
J.P. Morgan Healthcare Conference 2025
We are Building Towards an Exciting Vision for NGS
We are working to shift the industry from cost per Gb to highest quality insights for the lowest end-to-end cost 6
Whole genomes are the diagnostics
standard of care – routinely adopted in
local hospitals around the world
Whole Genomes Scientists adopt multiomics at scale –
catalyzing deeper biology
and scientific breakthroughs
Multiomics
Pharma accelerates drug discovery
and precision medicine – leveraging AI-
powered large cohort analysis
Drug Discovery
Sovereign nations move from sick-care
to personalized health-care – broadly
adopting NGS across healthcare systems
Sovereign Nations
J.P. Morgan Healthcare Conference 2025
Illumina’s Long-term Opportunity is Significant
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NGS SAM CAGR2
18%
6%
Growth Drivers
✓Oncology therapy selection
✓Minimal residual disease (MRD)
✓Broader adoption of clinical whole
genome sequencing (WGS)
✓Multiomics
✓Large WGS-multiomics cohort
studies
✓Software, informatics, and AI
>$100B
$4B
>$25B
$6B
$6B
TAM & SAM1
Clinical
Research
NGS SAM 2033NGS SAM 2024 TAM
Source: Publicly available sources (company filings, UN, WHO, etc.), market and sell-side research reports, Illumina estimates.
NGS = next generation sequencing. SAM = serviceable addressable market. TAM = total addressable market.
1. TAM represents the market opportunity of research and clinical samples addressable by NGS, including those addressed by technologies that
NGS could substitute over time; SAM represents total NGS dollars including tools and assays.
2. NGS SAM CAGR reflects 10-year forward growth rate.
J.P. Morgan Healthcare Conference 2025
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Agenda
II Preliminary Results & Financial Outlook
J.P. Morgan Healthcare Conference 2025
Q4’24 Results Exceeded Our Expectations
Preliminary Unaudited Results
Q4'24 FY24
~$4.33B
(2%) YoY decline
Revenue ~$1.10B
~1% YoY growth
~21.3%
Non-GAAP
Operating Margin ~19.7%
~$4.12-$4.141
Non-GAAP
Diluted EPS ~$0.91-$0.93
FY24 Accomplishments
Portfolio rationalization and
margin improvement program
Launch of new strategy
to return to HSD growth
From genomics to multiomics
with continued innovations
Revitalized focus on
customers and partners
New leadership team and
organizational structure
9
Note: Preliminary unaudited Core Illumina FY24 results.
Note: EPS = earnings per share. HSD = high single digits. YoY = year over year.
Note: See appendix for reconciliations of GAAP and non-GAAP financial measures.
1. Assumes preliminary tax rate of ~24.0% for FY24.
J.P. Morgan Healthcare Conference 2025
Outlook for FY25 in Line with Strategy Update
Note: FY25 outlook as of 01/14/2024.
Note: See Appendix for statement regarding use of non-GAAP financial measures.
1. Assumes FY25 FX impact of ~1.2%.
2. Assumes FY25 tax rate of ~23%.
YoY Revenue Growth
in Constant Currency1
“Return to Growth”
1
Low Single Digits
Reported Revenue: ~$4.28B to ~$4.4B
Non-GAAP
Operating Margin
“Disciplined Execution”
2
~23%
YoY Growth in
Non-GAAP Diluted EPS2
“Accelerated Value Creation”
3
~10%
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J.P. Morgan Healthcare Conference 2025
We Are Making Progress Towards Our Strategic Goals
Note: EPS = earnings per share. LSD = low single digit. HSD = high single digit.
Note: See appendix for reconciliations of GAAP and non-GAAP financial measures.
Note: Preliminary unaudited Core Illumina FY24 results.
1. Reflects the midpoint of the FY24 preliminary unaudited EPS range of ~$4.12-$4.14.
Revenue Growth
in Constant Currency Non-GAAP
Operating Margin Non-GAAP
Diluted EPS
~(2%)
LSD
HSD
FY24A FY25E FY27E
~21% ~23%
~26%
FY24A FY25E FY27E
$4.131
~10%
Growth
FY24A FY25E FY27E
Accelerating to HSD
growth by FY27 500+ bps expansion
by FY27 Double-digit to teens
growth FY25-FY27
2025 2025 2025
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J.P. Morgan Healthcare Conference 2025
Capital Allocation Priorities Support Strategic Growth
1. As of 12/29/2024.
Strong balance sheet
& credit rating Committed to maintaining
investment grade rating ~1.75x
Gross Debt / LTM EBITDA1
Return cash
to shareholders
Executing on anti-dilutive
share repurchases; may
opportunistically repurchase more $116M
Stock Repurchased in FY24
Opportunistic M&A &
strategic investments Focused on ‘bolt-on’-size
key strategic enablers Acquired in Q4’23 Acquired in Q3’24
Capital Allocation Considerations Recent Examples
12
Organic investment Expansion of genomics & multiomics
offerings to increase accessibility
Constellation
Mapped Reads
2026 Launch
Illumina Proteomics
Solution
1H’25 Launch
J.P. Morgan Healthcare Conference 2025
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Agenda
III Strategy Execution
J.P. Morgan Healthcare Conference 2025
Reaffirming Path to High Single Digit Growth by 2027
+ +
Key Growth Drivers
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Core Sequencing &
NovaSeq X Transition
Complete workflows
unlocking sequencing
intensive applications
1
Scalable Entry into
Multiomics
New high growth
business to complement
core sequencing
2
Expansion of Services,
Data & Software
Scalable, high-margin
businesses with recurring
revenue potential
3
J.P. Morgan Healthcare Conference 2025
Continued Momentum with Transition to NovaSeq X
Note: Gb = gigabase. HT = high-throughput.
1. NovaSeq X installed base includes reagent rental units.
2. Average pull-through reflects FY24 average annualized figures per instrument.
NovaSeq X Installed Base
630 Active Installed
Base191Q4’24
Shipments
Of total HT consumables revenue, expect
~50% To transition to NovaSeq X Series if
transition trajectory continues
Transition to X
~$1.3M FY24 Avg.
Pull-Through2
~75% Attributed to
NovaSeq X Series
Of total HT Gb shipped, expect
15
By 2H’2025
J.P. Morgan Healthcare Conference 2025
NovaSeq X is Driving Significant Growth in Sequencing Data
Note: HT = high-throughput. Gb = gigabase. Pb = petabase (1 Pb = 1M Gb).
HT Pb Sequenced Avg. $/Gb
>460 Pb
$19.2
$3.4
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Avg. Cost ($ HT Gb)
NovaSeq X
Launch
HT Data Sequenced (Pb)
NovaSeq 6000
Launch
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J.P. Morgan Healthcare Conference 2025
Expanding into Multiomics Powered by Illumina Software
NGS = next generation sequencing.
1. Formerly known as Fluent Biosciences.
2. >74% of SOMAmer reagents have more than one additional source of orthogonal confirmation.
Illumina Analysis &
Interpretation Software
DRAGEN Illumina
Connected
Analytics
Partek
Illumina
Connected
Insights
5-Base Genome
2026 Commercial Launch
Constellation
Mapped Reads
1H 2025 Early Access
2026 Commercial Launch
Illumina
Proteomics Solution
1H 2025 Launch
Illumina
Single Cell Solution1
Now Available
Overwhelming customer feedback
Constellation Mapped Reads
▪Our most comprehensive genomic readout
‒Challenging genomic regions
‒Ultra long phasing
‒Enhanced structural variant detection
▪Unprecedented ease of use that eliminates conventional
library prep
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Illumina Proteomics Solution
▪Materially outperforms on-market NGS proteomics
products on precision and reproducibility
▪Complete end-to-end proteomics solution
▪Largest orthogonally validated NGS proteomics panel2
J.P. Morgan Healthcare Conference 2025
Scaling Services, Software, and Data Business
EHR = electronic health data. WES = whole exome sequencing. WGS = whole genome sequencing.
Library Prep Sequence Analyze Interpret
Multiomics
partnerships Illumina Library Prep &
Sequencing Platforms
Illumina Global Services & Support
National Genomics Programs
WGS data
partnerships
Compute and AI
partnerships
WES / EHR data
collaborations
Illumina Analysis &
Interpretation Software
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Our Future
Health (UK) PRECISE
(Singapore) Korean National Project
of Bio-Big Data UK
BioBank Abu Dhabi Department of
Health (UAE)
J.P. Morgan Healthcare Conference 2025
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Agenda
IV Our Path Ahead
J.P. Morgan Healthcare Conference 2025
Focused & Disciplined Execution
to Deliver Sustainable, Profitable Growth
EPS = earnings per share. NGS = next generation sequencing.
Strategic Priorities
Customer Centricity
1
Driving the NGS Ecosystem
2
Future-Defining Innovation Pipeline
3
Commercial & Operational Excellence
4
Value Creation
Accelerated
growth Margin
expansion
Differentiated
EPS growth
20
© 2025 Illumina, Inc. All rights reserved.
Appendix
J.P. Morgan Healthcare Conference 2025
NovaSeq X Updates
>25%
Shipments to New-to-High Throughput
630
Active Installed Base1>40%
Shipments to Clinical Customers
>65%
Total Gb Shipped
NovaSeq X Shipment Breakdown Since Launch
HT Gb Data & Consumables Revenue Attributed to NovaSeq X During Q4’24
~40%
Total Consumables Revenue
Note: Gb = gigabase. HT = high-throughput.
1. NovaSeq X installed base includes instrument and reagent rentals.
~50%
Clinical Gb Shipped ~80%
Research Gb Shipped
22
J.P. Morgan Healthcare Conference 2025
FY24 Active Installed Base
Note: Reflects preliminary unaudited FY24 results.
1. High-throughput figures exclude HiSeq . NovaSeq 6000 active installed base accounts for ~150 decommissions in FY24.
2. Active installed base excludes instruments that have been decommissioned; includes reagent rental units.
3. Average pull through reflects FY24 average annualized figures per instrument, in thousands.
High-Throughput1Mid-Throughput Low-Throughput
NovaSeq X Series NovaSeq 6000 NextSeq 1k/2k NextSeq 500/550 MiSeq i100 | MiSeq MiniSeq | iSeq 100
Q1’23 Q1’17 Q4’20 | Q1’20 Q1’14 | Q1’15 Q4’24 | Q3’11 Q1’16 | Q1’18
266 ~30 ~520 ~90 ~360 ~380
630 ~1,640 ~2,700 ~3,950 ~8,590 ~4,470
~$1,300 ~$740 ~$100 ~$100 ~$30 MiSeq ~$20 MiniSeq
FY24 Shipments
Active Installed Base2
Avg. Pull Through3
First Shipment Date
23
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 goodwill and intangible impairment, operating income, operating margin, gross
profit, other income (expense), tax provision, constant currency revenue growth, and free cash flow (on a
consolidated and, as applicable, segment basis) in addition to, and not as a substitute for, or superior to, financial
measures calculated in accordance with GAAP. The company’s financial measures under GAAP include substantial
charges such as amortization of acquired intangible assets among others that are listed in the reconciliations of
GAAP and non-GAAP financial measures included in this press release, as well as the effects of currency
translation. Management has excluded the effects of these items in non-GAAP measures to assist investors in
analyzing and assessing past and future operating performance. Non-GAAP net income, diluted earnings per share
and operating margin are key components of the financial metrics utilized by the company’s board of directors to
measure, in part, management’s performance and determine significant elements of management’s compensation.
The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-
GAAP information and the reconciliation between these presentations, to more fully understand its business.
Reconciliations between GAAP and non-GAAP results are presented in the tables of this release.
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 impact of items such as acquisition-
related expenses, gains and losses from strategic investments, fair value adjustments to contingent consideration,
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.
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) changes in the rate of growth in the markets we serve; (ii) the volume, timing and mix of
customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our
revenue expectations; (iv) our ability to manufacture robust instrumentation and consumables; (v) the success of
products and services competitive with our own; (vi) 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; (vii) the impact of recently launched or pre-announced products and
services on existing products and services; (viii) our ability to modify our business strategies to accomplish our
desired operational goals; (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) our ability
to further develop and commercialize our instruments, consumables, and products; (xi) to deploy new products,
services, and applications, and to expand the markets for our technology platforms; (xii) the risks and costs
associated with the divestment of GRAIL; (xiii) the risk of additional litigation arising against us in connection with
the GRAIL acquisition; (xiv) our ability to obtain approval by third-party payors to reimburse patients for our
products; (xv) our ability to obtain regulatory clearance for our products from government agencies; (xvi) our ability
to successfully partner with other companies and organizations to develop new products, expand markets, and grow
our business; (xvii) uncertainty, or adverse economic and business conditions, including as a result of slowing or
uncertain economic growth or armed conflict; (xviii) the application of generally accepted accounting principles,
which are highly complex and involve many subjective assumptions, estimates, and judgments and (xix) 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.
Illumina, Inc.
Preliminary Results of Operations for Core Illumina - Non-GAAP
(unaudited)
Our performance and financial results are subject to risks and uncertainties, and actual results could differ materially
from preliminary results set forth below. Some of the factors that could affect our financial results are included from
time to time in the public reports filed with the Securities and Exchange Commission (SEC), including Form 10-K for
the fiscal year ended December 31, 2023, filed with the SEC on February 16, 2024, Form 10-Q for the fiscal quarter
ended March 31, 2024, Form 10-Q for the fiscal quarter ended June 30, 2024, and Form 10-Q for the fiscal quarter
ended September 29, 2024. We assume no obligation to update any forward-looking statements or information.
The preliminary unaudited information included in the tables below is approximate and subject to change. As
previously announced, we will report our fourth quarter and full year fiscal 2024 results on February 6, 2025.
PRELIMINARY CONSTANT CURRENCY REVENUE:
Dollars in millions
Fiscal Year
2024
Fiscal Year
2023 % Change
Revenue $ 4,332 $ 4,438 (2) %
Less: Hedge gains 15 18
Revenue, excluding hedge effect 4,317 4,420
Less: Exchange rate effect (8) —
Constant currency revenue (a) $ 4,325 $ 4,420 (2) %
RECONCILIATION BETWEEN PRELIMINARY GAAP AND NON-GAAP OPERATING MARGIN:
Fourth Quarter
2024
Fiscal Year
2024
Preliminary GAAP operating margin 16.7% 34.2%
Amortization of acquired intangible assets 1.5 1.5
Acquisition-related expenses (c) 0.4 2.1
Restructuring (d) 1.3 1.4
Contingent consideration liabilities (e) (1.0) (7.3)
Intangible (IPR&D) impairment (f) — 0.1
Legal contingency and settlement (g) 0.8 (10.7)
Preliminary non-GAAP operating margin (b) 19.7% 21.3%
Illumina, Inc.
Preliminary Results of Operations for Core Illumina - Non-GAAP (continued)
(unaudited)
RECONCILIATION BETWEEN PRELIMINARY GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:
Fourth Quarter
2024
Fiscal Year
2024
Preliminary GAAP earnings per share - diluted $0.77 - $0.79 $5.65 - $5.67
Amortization of acquired intangible assets 0.11 0.40
Acquisition-related expenses (c) 0.03 0.60
Restructuring (d) 0.09 0.38
Contingent consideration liabilities (e) (0.07) (1.98)
Intangible (IPR&D) impairment (f) — 0.02
Legal contingency and settlement (g) 0.06 (2.92)
Other (income) expense, net (h) (0.19) 1.84
Income tax provision (i) 0.11 0.13
Preliminary non-GAAP earnings per share - diluted (b) $0.91 - $0.93 $4.12 - $4.14
CALCULATION OF PRELIMINARY FREE CASH FLOW:
In millions
Fiscal Year
2024
Net cash provided by operating activities $ 1,207
Purchases of property and equipment (137)
Free cash flow (j) $ 1,070
(a) Constant currency revenue growth, which is a non-GAAP financial measure, is calculated using comparative
prior period foreign exchange rates to translate current period revenue, net of the effects of hedges.
(b) Non-GAAP operating margin and diluted earnings per share exclude the effects of the pro forma adjustments
detailed above. Non-GAAP operating margin and diluted earnings per share are key components of the
financial metrics utilized by the company's board of directors to measure, in part, management's performance
and determine significant elements of management's compensation. Management has excluded the effects of
these items to assist investors in analyzing and assessing past and future operating performance.
(c) Amounts consist primarily of legal and other expenses related to the acquisition and divestiture of GRAIL.
(d) Amounts consist primarily of lease and other asset impairments and employee severance costs.
(e) Amounts consist primarily of fair value adjustments for our contingent consideration liability related to GRAIL.
(f) Amounts consist of an IPR&D intangible asset impairment recognized in Q1 2024.
(g) Amounts for FY2024 primarily consist of the reversal of the accrued EC fine, including accrued interest.
(h) Amounts consist primarily of mark-to-market adjustments and impairments from strategic investments.
(i) Amounts represent the aggregate of (1) the impact of GRAIL pre-acquisition net operating losses on GILTI, the
utilization of US foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective in Q1
2024, (2) the difference between book and tax accounting related to stock-based compensation cost, and (3)
the tax impact related to the non-GAAP adjustments listed.
(j) Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating
activities reduced by purchases of property and equipment. Free cash flow is useful to management as it is one
of the metrics used to evaluate our performance and to compare us with other companies in our industry. Our
calculation of free cash flow may not be comparable to similar measures used by other companies.
Illumina, Inc.
Preliminary Results of Operations for Core Illumina - Non-GAAP (continued)
(unaudited)
RECONCILIATION BETWEEN PRELIMINARY GAAP AND NON-GAAP TAX RATE:
Fiscal Year
2024
Preliminary GAAP tax rate 20.1%
Preliminary non-GAAP tax rate (a) 24.0%
(a) Non-GAAP tax rate excludes the effects of (1) the impact of GRAIL pre-acquisition net operating losses on
GILTI, the utilization of US foreign tax credits, and the Pillar Two global minimum top-up tax, which became
effective in Q1 2024, (2) the difference between book and tax accounting related to stock-based compensation
cost, and (3) the tax impact related to the non-GAAP adjustments listed, which have been excluded to assist
investors in analyzing and assessing past and future operating performance.
