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Sep 30, 2023
Myriad Genetics Q3 2023 Earnings Report
Myriad Genetics reported double-digit revenue growth and raised 2023 revenue guidance.
Key Takeaways
Myriad Genetics reported a 23% increase in third-quarter revenue to $191.9 million, driven by strong growth in testing volumes. The company raised its 2023 revenue guidance and introduced 2024 revenue guidance, reflecting confidence in its growth trajectory.
Third quarter testing volume grew 18% year-over-year, excluding contributions from the SneakPeek® Early Gender DNA Test, marking the fifth consecutive quarter of double-digit growth.
Third quarter revenue increased by 23% year-over-year to $191.9 million, inclusive of a $7.1 million change of estimate.
GAAP gross margin for the third quarter was 70.0%, showing an increase of 221 basis points compared to the same period in 2022.
The company increased its 2023 revenue guidance to between $747 million and $753 million, indicating a growth of 10% - 11% over 2022.
Revenue by Segment
Forward Guidance
Myriad Genetics provided revenue guidance for 2023 and 2024.
Positive Outlook
- Increased 2023 revenue guidance to between $747 million and $753 million, representing 10% - 11% growth over 2022.
- Introduced 2024 revenue guidance of between $815 million and $835 million, projecting 9% - 11% growth over the midpoint of the 2023 revenue guidance range.
- Reiterated long-term financial targets presented at investor event on September 19, 2023, including targeted annual revenue growth of 10%+, gross margins of 70%+, annual growth in selling, general and administrative spend of 5%-6% and positive adjusted operating income and adjusted cash flow in 2024 through 2026.
- Expects a significant reduction in capital expenditures and costs associated with transformation initiatives in 2024 compared to 2023.
- Reiterate reaching positive adjusted profitability and adjusted operating cash flow in the fourth quarter 2023.
Challenges Ahead
- Assumes currency rates as of November 6, 2023.
- The company's projections are forward-looking statements and are subject to the risks summarized in the safe harbor statement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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