Myriad Genetics Inc (MYGN) Reports 23% YoY Revenue Growth in Q3 2023
Myriad Genetics Inc (NASDAQ:MYGN) reported a 23% YoY increase in Q3 2023 revenue, reaching $191.9 million.
The company's testing volume grew by 18% YoY, marking the fifth consecutive quarter of double-digit YoY growth.
Myriad Genetics Inc (NASDAQ:MYGN) raised its 2023 revenue guidance to between $747 million and $753 million, up from the previous range of $730 million to $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.
On November 6, 2023, Myriad Genetics Inc (NASDAQ:MYGN), 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 (NASDAQ:MYGN) 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 (NASDAQ:MYGN) 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 (NASDAQ:MYGN) 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 (NASDAQ: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 (NASDAQ:MYGN) 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.
This article first appeared on GuruFocus.
