On November 6, 2023, Myriad Genetics Inc (MYGN, Financial), a leader in genetic testing and precision medicine, released its third quarter 2023 financial results. The company reported a 23% year-over-year (YoY) increase in revenue, reaching $191.9 million. This growth was driven by an 18% YoY increase in testing volume, marking the fifth consecutive quarter of double-digit YoY growth.
Financial Highlights
Myriad Genetics Inc (MYGN, Financial) reported a GAAP gross margin of 70.0% for Q3 2023, a 221 basis point increase over Q3 2022. However, the company reported diluted GAAP earnings per share (EPS) of $(0.75) and adjusted EPS of $(0.03) for the third quarter. The GAAP cash flow from operations was $(26.6) million in the third quarter, while the adjusted cash flow from operations was $(2.7) million, excluding an initial cash payment of $20.0 million related to the settlement of a securities class action lawsuit.
Myriad Genetics Inc (MYGN, Financial) also raised its 2023 revenue guidance to between $747 million and $753 million, reflecting a 10% - 11% growth over 2022. This is an increase from the previous guidance range of between $730 million and $750 million. The company also introduced its 2024 revenue guidance, projecting a growth of 9% - 11% over the mid-point of the 2023 revenue guidance range.
Operational Highlights
In October 2023, Myriad Genetics Inc (MYGN, Financial) expanded its asset-based credit facility to $115.0 million from $90.0 million. The company also settled the Ravgen litigation, with payments scheduled over the next few years. Additionally, Myriad Genetics Inc (MYGN) signed a new long-term agreement with UnitedHealthcare, effective from January 1, 2024, and a new master collaboration agreement with QIAGEN to develop companion diagnostic tests in the field of cancer.
Future Outlook
Myriad Genetics Inc (MYGN, Financial) is confident in its ability to achieve adjusted profitability by the fourth quarter of 2023 and sustainable 10%+ annual revenue growth for the full year and beyond. The company also expects a significant reduction in capital expenditures and costs associated with transformation initiatives in 2024 compared to 2023.
Explore the complete 8-K earnings release (here) from Myriad Genetics Inc for further details.
