Myriad Genetics (MYGN) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 15% year-over-year, driven by higher test volumes and average revenue per test, with strong gains in hereditary cancer, prenatal, and pharmacogenomics segments.

• Adjusted EBITDA reached $12 million, with adjusted EPS of $0.05, both improved from losses in Q2 2023.

• Raised 2024 revenue guidance to $835–$845 million (11–12% growth) and long-term revenue growth target to 12%.

• Launched Foresight Universal Plus and advanced MRD initiatives, with continued investment in technology and product innovation.

• Sale of EndoPredict business completed, with a $10.2 million impairment charge and expected annual accretion to adjusted operating income.

Financial highlights

• Q2 2024 revenue was $211.5 million, up from $181.2 million in Q2 2023; gross profit increased 17% to $147.1 million.

• Adjusted gross margin improved to 70.1%, up 110 basis points year-over-year.

• Adjusted operating expenses were $140.8 million (67% of revenue), down from 73% year-over-year.

• Adjusted EBITDA was $11.7 million, compared to $(4.1) million in Q2 2023; adjusted operating cash flow was $16.4 million.

• Cash and equivalents at quarter end were $97.3 million, with $41.5 million available under the credit facility.

Outlook and guidance

• 2024 revenue guidance raised to $835–$845 million, with gross margin expected at 70.0–70.5%.

• Adjusted EBITDA guidance increased to $25–$35 million; adjusted EPS guidance raised to $0.08–$0.12.

• Long-term annual revenue growth target increased to 12%.

• Expect to remain free cash flow positive for the rest of 2024.

• Existing capital resources expected to meet operating requirements for at least the next 12 months.