Myriad Genetics (MYGN) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 11% year-over-year to $213 million, driven by strong growth in Pharmacogenomics (up to 34%) and Hereditary Cancer, with improved test volumes and revenue per test.

• Adjusted EBITDA reached $14.1 million, adjusted EPS was $0.06, and GAAP net loss improved to $22.1 million from $61.3 million year-over-year.

• Maintained strong liquidity with $149 million at quarter-end, including $99.9 million in cash and $48.8 million available under the ABL facility.

• Updated 2024 guidance: revenue expected at $837–$843 million, adjusted EPS at $0.12–$0.14, and adjusted EBITDA at $34–$39 million.

• UnitedHealthcare will discontinue GeneSight coverage in 2025, putting $40 million in annual revenue at risk; mitigation strategies are being assessed.

Financial highlights

• Q3 2024 gross profit was ~$150 million with a 70.6% adjusted gross margin; gross margin guidance for 2024 is 69.8%–70.3%.

• Adjusted operating income for Q3 2024 was $9.5 million, up from $(2.2) million in Q3 2023.

• Adjusted net income for Q3 2024 was $5.3 million; adjusted EPS was $0.06, up from $(0.03) in Q3 2023.

• Operating expenses fell 13% year-over-year to $169.8 million, with adjusted operating expenses at $141 million.

• Test volumes reached 376,000 in Q3 2024, up 6% year-over-year.

Outlook and guidance

• 2024 revenue guidance narrowed to $837–$843 million, representing 11–12% year-over-year growth.

• Adjusted EPS guidance raised to $0.12–$0.14; adjusted EBITDA expected at $34–$39 million.

• Gross margin expected between 69.8% and 70.3% for 2024.

• Company expects to be free cash flow positive in Q4 2024.

• Long-term double-digit revenue growth target reaffirmed despite GeneSight headwinds.