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MG

MYRIAD GENETICS INC (MYGN)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $210.6M, up 7% year-over-year; GAAP gross margin improved to 71.7% and adjusted gross margin to 72.0%. Adjusted EPS was $0.03 and adjusted EBITDA $10.6M .
  • Strength came from Prenatal (+12% YoY to $44.9M) and GeneSight pharmacogenomics (+14% YoY to $40.6M), while Tumor Profiling declined 4% YoY to $30.8M .
  • Management reaffirmed FY2025 guidance (revenue $840–$860M; GM% 69.5–70.5%; adjusted EPS $0.07–$0.11) and introduced Q1 2025 outlook (revenue $196–$204M; adjusted EPS loss of $(0.04)–$(0.08)) .
  • Catalysts: exclusive AI collaboration with PATHOMIQ for prostate cancer diagnostics; CEO succession (Sam Raha to become CEO 4/30/2025); watch headwinds from UnitedHealthcare’s policy change on GeneSight (~$45M 2024 revenue exposure) .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion: Q4 GAAP GM rose 300 bps YoY to 71.7%; adjusted gross margin reached 72.0% on improved revenue per test and lab efficiencies .
  • Segment growth: Prenatal revenue +12% YoY; GeneSight +14% YoY; Oncology hereditary cancer revenue growth and total Oncology revenue $82.8M in Q4 .
  • Strategic initiatives: Exclusive PATHOMIQ AI partnership to complement Prolaris and deliver AI+molecular testing across the prostate cancer journey. “Our molecular science expertise, combined with the latest in machine learning and AI, will uniquely position Myriad to deliver higher-quality insights” (Myriad Oncology President) .

What Went Wrong

  • Volume softness in unaffected hereditary cancer: Q4 volumes slowed as focus shifted to launching Prequel at 8 weeks and EMR workflow conversions took longer to stabilize (quarterly impact acknowledged by CCO) .
  • Tumor Profiling revenue fell 4% YoY in Q4; EndoPredict divestiture reduced annual revenue run rate by ~$11M and pressured international results .
  • Reimbursement headwinds: UnitedHealthcare updated policy to discontinue coverage of multi-gene panel PGx tests (including GeneSight) for commercial/individual exchange and certain managed Medicaid plans in H1 2025 (~$45M 2024 revenue at risk) .

Financial Results

Headline P&L (chronological order)

MetricQ3 2024Q4 2024
Revenue ($USD Millions)$213.3 $210.6
GAAP Gross Margin %70.2% 71.7%
GAAP EPS ($)$(0.24) $(0.47)

Non-GAAP trajectory

MetricQ2 2024Q3 2024Q4 2024
Adjusted Gross Margin %70.1% 70.6% 72.0%
Adjusted EPS ($)$0.05 $0.06 $0.03
Adjusted EBITDA ($USD Millions)$12.0 $14.1 $10.6

Segment revenue (mix and trends)

Segment Revenue ($USD Millions)Q3 2024Q4 2024
Hereditary Cancer$90.5 $94.3
Tumor Profiling$31.6 $30.8
Prenatal$43.5 $44.9
Pharmacogenomics (GeneSight)$47.7 $40.6
Total$213.3 $210.6

KPIs and volumes

KPIQ3 2024Q4 2024
Total Tests (000s)376 374
Hereditary Cancer Volume (000s)74 75
Tumor Profiling Volume (000s)13 12
Prenatal Volume (000s)162 160
Pharmacogenomics Volume (000s)127 127

Notes:

  • Management indicated a modest, smaller-than-prior-periods favorable change-of-estimates benefit in Q4; domestic revenue grew 11% YoY with international impacted by EndoPredict divestiture .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($M)FY 2025$840–$860 $840–$860 Maintained
Gross Margin %FY 202569.5%–70.5% 69.5%–70.5% Maintained
Adjusted Opex ($M)FY 2025$575–$595 $575–$595 Maintained
Adjusted EBITDA ($M)FY 2025$25–$35 $25–$35 Maintained
Adjusted EPS ($)FY 2025$0.07–$0.11 $0.07–$0.11 Maintained
Revenue ($M)Q1 2025—$196–$204 New quarterly outlook
Adjusted EPS ($)Q1 2025—$(0.04)–$(0.08) New quarterly outlook
LT Revenue Growth Target2026+12% (raised in 2024) “Double-digit” (modestly lowered due to UHC impact) Lowered for 2026+

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3)Current Period (Q4)Trend
AI/Technology initiativesLabs of the Future scaling; MRD patents; EMR integration upgrades Exclusive PATHOMIQ AI partnership for prostate cancer (AI + molecular) with goal to launch first AI-driven test later in 2025 Accelerating AI integration and multimodal diagnostics
Product performanceQ2: Prenatal +29% YoY; GeneSight +22%; Hereditary cancer strong; revenue per test improvements Q4: Prenatal +12% YoY; GeneSight +14% YoY; Oncology hereditary cancer revenue growth Sustained demand across core franchises
Regulatory/legal & reimbursementQ3: UHC policy change on PGx (effective 1/1/2025); expanding biomarker legislation and payer contracts Q4: UHC exposure quantified (~$45M in 2024); streamlined operations; reaffirmed FY25 guide despite headwind Headwind in 2025; mitigation via advocacy and biomarker laws
R&D executionQ2: increased tech & R&D; MRD clinical collaborations and cross-licensing (Personalis) Q4: 25% R&D increase to support FirstGene and Precise MRD; multiple studies and patents progressing Ramp up into 2025 ahead of launches
Regional/segment mixQ2: US revenue +20%; International reorg, EndoPredict sale Q4: Domestic +11% YoY; international reduced by divestiture US strength; international recalibrated
Seasonality/macroQ2/Q3: typical Q3 lighter, Q4 stronger Q&A reiterated Q2/Q4 stronger; co-pays/deductibles impact Q1/Q3 Seasonality considerations persist

Management Commentary

  • CEO (Paul Diaz): “We achieved 11% revenue growth in 2024… approximately $589 million in adjusted gross profits, $40 million of adjusted EBITDA, positive adjusted EPS of $0.14 and maintained approximately $158 million in liquidity in 2024” .
  • CFO (Scott Leffler): “Q4 revenue grew 7% YoY… gross margin 72%; third consecutive quarter of positive adjusted EPS ($0.03)… adjusted EBITDA $11M; total liquidity $158M” .
  • CCO (Mark Verratti) on Q4 commercial dynamics: “Prenatal… grew 12%… GeneSight… revenues up 14%… unaffected hereditary business slowed due to attention placed on the launch of Prequel at 8 weeks… and EMR workflow conversion is taking longer than expected” .
  • COO (Sam Raha): “Upcoming launches of FirstGene and Precise MRD… increased focus on execution excellence… partnerships like PATHOMIQ illustrate how we will leverage strategic partnerships” .

Q&A Highlights

  • Hereditary cancer (unaffected market) and EMR ramp: EMR integrations are a growth driver but can disrupt workflows; demand expected to reaccelerate in 2H 2025 .
  • Prolaris and NCCN guidelines: Management emphasized Prolaris inclusion (Category 2A) and investments to address “confusion”; PATHOMIQ to accelerate evidence towards Level 1 .
  • GeneSight reimbursement: Despite UHC policy change, strong provider demand; no observed volume impact as of Feb 24; mitigation via biomarker legislation and ongoing payer engagement .
  • Revenue phasing and seasonality: Expect 2H acceleration (EMR ramp) with typical Q2/Q4 strength; Q1 comp is tougher due to $7M prior-year benefits .
  • MyChoice CDx trends: Post-European decentralization impacts largely behind; expect stable-to-modest growth; expansion to breast and prostate indications is the bigger TAM driver for ’26–’27 .

Estimates Context

  • Wall Street consensus (S&P Global) could not be retrieved for Q4 2024 within our access window; as a result, we cannot quantify beats/misses versus consensus for revenue or EPS this quarter. Values for comparisons to estimates were unavailable from S&P Global at the time of this analysis.

Key Takeaways for Investors

  • Margin resilience and pricing: Revenue-per-test stability plus lab efficiencies drove 300 bps YoY GM expansion; watch for sustained adjusted GM ≥70% as pricing rationality persists .
  • 2025 setup and Q1 cadence: FY25 guidance reaffirmed despite UHC headwind; Q1 guide implies seasonally softer start and tougher comp—watch 2H volume acceleration from EMR and program ramps .
  • AI catalyst: PATHOMIQ collaboration is a strategic differentiator (AI+molecular) in prostate cancer; first AI-driven clinical test targeted later in 2025—potential narrative driver and cross-sell into prostate care continuum .
  • R&D investment fueling pipeline: Elevated R&D (25% increase) ahead of FirstGene and Precise MRD readouts/launches—near-term P&L drag, but medium-term growth optionality (especially MRD) .
  • Reimbursement risk management: UHC policy change (~$45M 2024 revenue exposure) is a known 2025 headwind; mitigation via biomarker legislation momentum and advocacy could partially offset—monitor payer updates .
  • Segment focus: Prenatal and Hereditary Cancer are steady growers; watch MyChoice indication expansion and prostate ecosystem (Prolaris + PATHOMIQ + germline/tumor profiling) for 2026–2027 TAM expansion .
  • Leadership stability: CEO transition to Sam Raha and CCO to COO supports continuity of strategy and operational execution—reduction of execution risk in a pivotal pipeline period .
## Financial Appendix

Consolidated Statements (excerpts)

  • Q4 2024: Revenue $210.6M; Gross Profit $150.9M; Operating Loss $(39.0)M; Net Loss $(42.5)M; Basic/Diluted EPS $(0.47) .
  • Q3 2024: Net Loss $(22.1)M; Adjusted EPS $0.06 .

Liquidity

  • Liquidity at 12/31/2024: $158M (cash & equivalents + revolver availability); cash & equivalents $102.4M .

Volume & Revenue Tables (company-provided)

  • Product volumes Q4 vs prior year and FY detail included above .
  • Revenue by product Q4 and FY detail included above .

All data and quotes are sourced from company documents and the earnings call as cited above.