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Illumina Reports Financial Results for Second Quarter of Fiscal Year 2024

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Core Illumina revenue of $1.09 billion for Q2 2024, down 6% from Q2 2023 (down 6% on a constant currency basis) and up 3% from Q1 2024Core Illumina GAAP operating margin of 40.5% and non-GAAP operating margin of 22.2% for Q2 2024Core Illumina GAAP diluted earnings per share of $0.41 and non-GAAP diluted earnings per share of $1.09 for Q2 2024Lowered fiscal year 2024 Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) from 2023Raised Core Illumina non-GAAP operating margin guidance to a range of 20.5% to 21% for fiscal year 2024Introducing guidance for Core Illumina non-GAAP diluted earnings per share in the range of $3.80 to $3.95 for fiscal year 2024On June 24, 2024, we completed the spin-off of GRAIL into a new public company

SAN DIEGO, Aug. 6, 2024 /PRNewswire/ — Illumina, Inc. (Nasdaq: ILMN) (“Illumina” or the “company”) today announced its financial results for the second quarter of fiscal year 2024, which include the consolidated financial results for GRAIL through June 24, 2024.

“The Illumina team delivered results ahead of our expectations in the quarter, driven by disciplined execution on our strategic priorities,” said Jacob Thaysen, Chief Executive Officer. “Consumable sales remained solid as customers continued to increase their sequencing activity, but instrument demand has softened in a constrained funding environment. We are progressing our operating excellence initiatives and will deliver expanded margins this year.”

Second quarter consolidated results

GAAP

Non-GAAP (a)

Dollars in millions, except per share amounts

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue

$  1,112

$  1,176

$  1,112

$  1,176

Gross margin

64.8 %

62.2 %

69.0 %

66.5 %

Research and development (“R&D”) expense

$     325

$     358

$     325

$     345

Selling, general and administrative (“SG&A”) expense

$     147

$     462

$     358

$     355

Goodwill and intangible impairment (b)

$  1,886

$       —

$       —

$       —

Operating (loss) profit

$ (1,637)

$     (88)

$       84

$       82

Operating margin

(147.2) %

(7.5) %

7.6 %

7.0 %

Tax provision

$       12

$     145

$       16

$       33

Tax rate

(0.6) %

(163.8) %

22.3 %

39.3 %

Net (loss) income

$ (1,988)

$   (234)

$       57

$       50

Diluted (loss) earnings per share

$ (12.48)

$   (1.48)

$    0.36

$    0.32

(a) See the tables included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

(b) During the second quarter of 2024, the company recognized $1,466 million in goodwill and $420 million in intangible asset (IPR&D) impairment related to the GRAIL segment.

 

Capital expenditures for free cash flow purposes were $32 million for Q2 2024. Cash flow provided by operations was $80 million, compared to cash flow provided by operations of $105 million in the prior year period. Free cash flow (cash flow provided by operations less capital expenditures) was $48 million for the quarter, compared to $58 million in the prior year period. Depreciation and amortization expenses were $105 million for Q2 2024. At the close of the quarter, the company held $994 million in cash, cash equivalents and short-term investments.

Second quarter segment results
Illumina has two reportable segments, Core Illumina and GRAIL, which was spun-off on June 24, 2024.

Core Illumina

GAAP

Non-GAAP (a)

Dollars in millions

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue (b)

$  1,092

$  1,159

$  1,092

$  1,159

Gross margin (c)

68.0 %

65.5 %

69.4 %

67.0 %

R&D expense

$     241

$     274

$     241

$     261

SG&A expense

$       60

$     371

$     275

$     270

Operating profit

$     442

$     115

$     242

$     245

Operating margin

40.5 %

9.9 %

22.2 %

21.2 %

Tax provision

$       35

*

$       55

*

Tax rate

35.0 %

*

24.2 %

*

Net income

$       66

*

$     174

*

Diluted earnings per share

$    0.41

*

$    1.09

*

* Prior year information not provided.

(a) See the tables included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

(b) Core Illumina revenue for Q2 2024 was down 6% as compared to Q2 2023 and down 6% on a constant currency basis. Amounts for Q2 2024 and Q2 2023 included intercompany revenue of $9 million and $5 million, respectively, which is eliminated in consolidation.

(c) The year-over-year increase in gross margin was primarily driven by a more favorable mix of sequencing consumables and execution of our operational excellence priorities that delivered cost savings, including freight and improved productivity.

 

GRAIL

GAAP

Non-GAAP (a)

In millions

Q2 2024

Q2 2023

Q2 2024

Q2 2023

Revenue

$       29

$          22

$       29

$          22

Gross (loss) profit

$     (16)

$        (24)

$       15

$            9

R&D expense

$       88

$          89

$       88

$          89

SG&A expense

$       88

$          91

$       84

$          85

Goodwill and intangible impairment

$  1,886

$          —

$       —

$          —

Operating loss

$ (2,078)

$      (204)

$   (157)

$      (164)

(a) See Table 5 included in the “Results of Operations – Non-GAAP” section below for reconciliations of these GAAP and non-GAAP financial measures.

 

Key announcements by Illumina since Illumina’s last earnings release

Completed the spin-off of GRAILAcquired Fluent Biosciences, developer of an emerging and highly differentiated single-cell technologyAppointed Everett Cunningham as Chief Commercial OfficerAnnounced that Anna Richo, Corporate Senior Vice President, Strategic Advisor to the General Counsel and CEO at Cargill, Inc., joined Illumina’s Board of DirectorsPresented research at the American Society of Clinical Oncology (ASCO) Annual Meeting, with 14 total abstracts accepted to the meetingCompleted integration of Illumina’s latest chemistry, XLEAP-SBS™, into all reagents for its NextSeq™ 1000 and NextSeq 2000 next-generation sequencing instrumentsExpanded its oncology menu for NovaSeq™ X Series customers by offering the newly verified high-throughput version of TruSight™ Oncology 500 (TSO 500 HT), and the latest version of its distributed liquid biopsy research assay, TruSight Oncology 500 ctDNA v2 (TSO 500 ctDNA v2)Launched DRAGEN™ v4.3, the latest version of Illumina’s DRAGEN™ software, part of the Illumina Connected Software portfolio, for analysis of next-generation sequencing data

A full list of recent Illumina announcements can be found in the company’s News Center.

Financial outlook and guidance
For fiscal year 2024, the company lowered its Core Illumina revenue guidance to decline 2% to 3% (down 1.5% to 2.5% in constant currency) compared to fiscal year 2023 and raised its Core Illumina non-GAAP operating margin guidance to a range of 20.5% to 21%. The company is introducing guidance for Core Illumina non-GAAP diluted EPS in the range of $3.80 to $3.95 for fiscal year 2024.

The company provides forward-looking guidance on a non-GAAP basis. The company is unable to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP reported financial measures because it is unable to predict with reasonable certainty the financial impact of items such as acquisition-related expenses, gains and losses from our strategic investments, fair value adjustments related to contingent consideration and contingent value rights, potential future asset impairments, restructuring activities, and the ultimate outcome of pending litigation without unreasonable effort. These items are uncertain, inherently difficult to predict, depend on various factors, and could have a material impact on GAAP reported results for the guidance period. For the same reasons, the company is unable to address the significance of the unavailable information, which could be material to future results.

Conference call information
The conference call will begin at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) on Tuesday, August 6, 2024. Interested parties may access the live teleconference through the Investor Info section of Illumina’s website at investor.illumina.com. Alternatively, individuals can access the call by dialing 866.400.0049 or +1.323.701.0231 outside North America, both using conference ID 9881025. To ensure timely connection, please dial in at least ten minutes before the scheduled start of the call.

A replay of the conference call will be posted on Illumina’s website after the event and will be available for at least 30 days following.

Statement regarding use of non-GAAP financial measures
The company reports non-GAAP results for diluted earnings per share, net income, gross margin, operating expenses, including research and development expense, selling general and administrative expense, and from time to time, as applicable, legal contingencies and settlement, and goodwill and intangible impairment, operating income (loss), operating margin, gross profit (loss), other income (expense), tax provision, constant currency revenue growth, and free cash flow (on a consolidated and, as applicable, segment basis) in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The company’s financial measures under GAAP include substantial charges such as amortization of acquired intangible assets among others that are listed in the itemized reconciliations between GAAP and non-GAAP financial measures included in this press release, as well as the effects of currency translation. Management has excluded the effects of these items in non-GAAP measures to assist investors in analyzing and assessing past and future operating performance, including in the non-GAAP measures related to our segments. Additionally, non-GAAP net income, diluted earnings per share and operating margin are key components of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation.

The company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP results are presented in the tables of this release.

Use of forward-looking statements
This release may contain forward-looking statements that involve risks and uncertainties. Among the important factors to which our business is subject that could cause actual results to differ materially from those in any forward-looking statements are: (i) changes in the rate of growth in the markets we serve; (ii) the volume, timing and mix of customer orders among our products and services; (iii) our ability to adjust our operating expenses to align with our revenue expectations; (iv) our ability to manufacture robust instrumentation and consumables; (v) the success of products and services competitive with our own; (vi) challenges inherent in developing, manufacturing, and launching new products and services, including expanding or modifying manufacturing operations and reliance on third-party suppliers for critical components; (vii) the impact of recently launched or pre-announced products and services on existing products and services; (viii) our ability to modify our business strategies to accomplish our desired operational goals; (ix) our ability to realize the anticipated benefits from prior or future actions to streamline and improve our R&D processes, reduce our operating expenses and maximize our revenue growth; (x) our ability to further develop and commercialize our instruments, consumables, and products; (xi) to deploy new products, services, and applications, and to expand the markets for our technology platforms; (xii) the risks and costs associated with the divestment of GRAIL; (xiii) the risk of additional litigation arising against us in connection with the GRAIL acquisition; (xiv) our ability to obtain approval by third-party payors to reimburse patients for our products; (xv) our ability to obtain regulatory clearance for our products from government agencies; (xvi) our ability to successfully partner with other companies and organizations to develop new products, expand markets, and grow our business; (xvii) uncertainty, or adverse economic and business conditions, including as a result of slowing or uncertain economic growth or armed conflict; (xviii) the application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates, and judgments and (xix) legislative, regulatory and economic developments, together with other factors detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We undertake no obligation, and do not intend, to update these forward-looking statements, to review or confirm analysts’ expectations, or to provide interim reports or updates on the progress of the current quarter.

About Illumina
Illumina is improving human health by unlocking the power of the genome. Our focus on innovation has established us as a global leader in DNA sequencing and array-based technologies, serving customers in the research, clinical, and applied markets. Our products are used for applications in the life sciences, oncology, reproductive health, agriculture, and other emerging segments. To learn more, visit www.illumina.com and connect with us on X (Twitter), Facebook, LinkedIn, Instagram, TikTok, and YouTube.

About GRAIL
GRAIL is a healthcare company whose mission is to detect cancer early, when it can be cured. GRAIL is focused on alleviating the global burden of cancer by developing pioneering technology to detect and identify multiple deadly cancer types early. The company is using the power of next-generation sequencing, population-scale clinical studies, and state-of-the-art computer science and data science to enhance the scientific understanding of cancer biology, and to develop its multi-cancer early detection blood test. GRAIL is headquartered in Menlo Park, CA with locations in Washington, D.C., North Carolina, and the United Kingdom. GRAIL, Inc. was spun-out into a new public company on June 24, 2024. For more information, please visit www.grail.com.

Illumina, Inc.

Condensed Consolidated Balance Sheets

(In millions)

June 30,
2024

December 31,
2023

ASSETS

(unaudited)

Current assets:

Cash and cash equivalents

$            920

$         1,048

Short-term investments

74

6

Accounts receivable, net

641

734

Inventory, net

561

587

Prepaid expenses and other current assets

263

234

Total current assets

2,459

2,609

Property and equipment, net

859

1,007

Operating lease right-of-use assets

460

544

Goodwill

1,079

2,545

Intangible assets, net

278

2,993

Deferred tax assets, net

632

56

Other assets

314

357

Total assets

$         6,081

$       10,111

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$            199

$            245

Accrued liabilities

1,265

1,325

Term debt, current portion

744

—

Total current liabilities

2,208

1,570

Operating lease liabilities

616

687

Term debt

1,490

1,489

Other long-term liabilities

331

620

Stockholders’ equity

1,436

5,745

Total liabilities and stockholders’ equity

$         6,081

$       10,111

 

Illumina, Inc.

Condensed Consolidated Statements of Operations

(In millions, except per share amounts)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Revenue:

Product revenue

$            927

$         1,001

$        1,803

$        1,923

Service and other revenue

185

175

385

340

Total revenue

1,112

1,176

2,188

2,263

Cost of revenue:

Cost of product revenue (a)

250

305

504

591

Cost of service and other revenue (a)

95

91

202

190

Amortization of acquired intangible assets

46

48

94

96

Total cost of revenue

391

444

800

877

Gross profit

721

732

1,388

1,386

Operating expense:

Research and development (a)

325

358

660

699

Selling, general and administrative (a)

147

462

588

839

Goodwill and intangible impairment

1,886

—

1,889

—

Total operating expense

2,358

820

3,137

1,538

Loss from operations

(1,637)

(88)

(1,749)

(152)

Other expense, net

(339)

(1)

(337)

(15)

Loss before income taxes

(1,976)

(89)

(2,086)

(167)

Provision for income taxes

12

145

28

64

Net loss

$        (1,988)

$          (234)

$      (2,114)

$         (231)

Loss per share:

Basic

$        (12.48)

$         (1.48)

$      (13.28)

$        (1.46)

Diluted

$        (12.48)

$         (1.48)

$      (13.28)

$        (1.46)

Shares used in computing loss per share:

Basic

159

158

159

158

Diluted

159

158

159

158

(a) Includes stock-based compensation expense for stock-based awards:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Cost of product revenue

$                7

$                8

$            13

$            15

Cost of service and other revenue

1

6

4

12

Research and development

43

43

82

79

Selling, general and administrative

59

48

109

93

Stock-based compensation expense before taxes

$            110

$            105

$           208

$           199

 

Illumina, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

Net cash provided by operating activities

$              80

$            105

$           157

$           115

Net cash used in investing activities

(41)

(37)

(89)

(93)

Net cash used in financing activities

(225)

(3)

(191)

(476)

Effect of exchange rate changes on cash and cash equivalents

(2)

(6)

(5)

(4)

Net (decrease) increase in cash and cash equivalents

(188)

59

(128)

(458)

Cash and cash equivalents, beginning of period

1,108

1,494

1,048

2,011

Cash and cash equivalents, end of period

$            920

$         1,553

$           920

$        1,553

Calculation of free cash flow:

Net cash provided by operating activities

$              80

$            105

$           157

$           115

Purchases of property and equipment

(32)

(47)

(67)

(99)

Free cash flow (a)

$              48

$              58

$            90

$            16

(a) Free cash flow, which is a non-GAAP financial measure, is calculated as net cash provided by operating activities reduced by purchases of property and equipment. Free cash flow is useful to management as it is one of the metrics used to evaluate our performance and to compare us with other companies in our industry. However, our calculation of free cash flow may not be comparable to similar measures used by other companies.

 

Illumina, Inc.

Results of Operations – Revenue by Segment

(Dollars in millions)

(unaudited)

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

% Change

June 30,
2024

July 2,
2023

% Change

Consolidated revenue

$         1,112

$         1,176

(5) %

$         2,188

$       2,263

(3) %

Less: Hedge gains

4

2

7

3

Consolidated revenue, excluding hedge effect

1,108

1,174

2,181

2,260

Less: Exchange rate effect

(5)

—

(7)

—

Consolidated constant currency revenue (a)

$         1,113

$         1,174

(5) %

$         2,188

$       2,260

(3) %

Core Illumina revenue

$         1,092

$         1,159

(6) %

$         2,148

$       2,235

(4) %

Less: Hedge gains

4

2

7

3

Core Illumina revenue, excluding hedge effect

1,088

1,157

2,141

2,232

Less: Exchange rate effect

(5)

—

(7)

—

Core Illumina constant currency revenue (a)

$         1,093

$         1,157

(6) %

$         2,148

$       2,232

(4) %

(a) Constant currency revenue growth, which is a non-GAAP financial measure, is calculated using comparative prior period foreign exchange rates to translate current period revenue, net of the effects of hedges.

 

Illumina, Inc.
Results of Operations – Non-GAAP
(In millions, except per share amounts)
(unaudited)

TABLE 1: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP DILUTED (LOSS) EARNINGS PER SHARE:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

GAAP loss per share – diluted

$       (12.48)

$         (1.48)

$       (13.28)

$        (1.46)

Cost of revenue (b)

0.29

0.32

0.60

0.63

R&D expense (b)

—

0.08

0.01

0.09

SG&A expense (b)

(1.33)

0.68

(0.75)

0.89

Goodwill and intangible impairment (b)

11.84

—

11.86

—

Other expense, net (b)

2.06

0.01

2.01

0.08

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

0.62

0.44

0.73

0.16

Incremental non-GAAP tax expense (d)

(0.65)

0.27

(0.74)

(0.04)

Income tax provision (e)

0.01

—

0.01

0.05

Non-GAAP earnings per share – diluted (a)

$           0.36

$           0.32

$          0.45

$          0.40

 

TABLE 2: CONSOLIDATED RECONCILIATION BETWEEN GAAP AND NON-GAAP NET (LOSS) INCOME:

Three Months Ended

Six Months Ended

June 30,
2024

July 2,
2023

June 30,
2024

July 2,
2023

GAAP net loss

$       (1,988)

$          (234)

$       (2,114)

$         (231)

Cost of revenue (b)

46

50

95

99

R&D expense (b)

—

13

2

14

SG&A expense (b)

(211)

107

(120)

142

Goodwill and intangible impairment (b)

1,886

—

1,889

—

Other expense, net (b)

328

2

319

13

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

99

69

116

25

Incremental non-GAAP tax expense (d)

(104)

43

(117)

(6)

Income tax provision (e)

1

—

1

8

Non-GAAP net income (a)

$             57

$              50

$             71

$             64

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(In millions, except per share amounts)
(unaudited)

TABLE 3: CORE ILLUMINA RECONCILIATION BETWEEN GAAP AND NON-GAAP DILUTED EARNINGS PER SHARE:

Three Months Ended

Six Months Ended

June 30,
2024

June 30,
2024

GAAP earnings per share – diluted

$                  0.41

$                  0.85

Cost of revenue (b)

0.10

0.19

R&D expense (b)

—

0.01

SG&A expense (b)

(1.35)

(0.84)

Goodwill and intangible impairment (b)

—

0.02

Other expense, net (b)

2.06

2.01

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

0.12

0.21

Incremental non-GAAP tax expense (d)

(0.26)

(0.39)

Income tax provision (e)

0.01

0.01

Non-GAAP earnings per share – diluted (a)

$                  1.09

$                  2.07

 

TABLE 4: CORE ILLUMINA RECONCILIATION BETWEEN GAAP AND NON-GAAP NET INCOME:

Three Months Ended

Six Months Ended

June 30,
2024

June 30,
2024

GAAP net income

$                     66

$                   135

Cost of revenue (b)

15

30

R&D expense (b)

—

2

SG&A expense (b)

(215)

(132)

Goodwill and intangible impairment (b)

—

3

Other expense, net (b)

328

319

GILTI, U.S. foreign tax credits, and global minimum top-up tax (c)

20

33

Incremental non-GAAP tax expense (d)

(41)

(62)

Income tax provision (e)

1

1

Non-GAAP net income (a)

$                   174

$                   329

All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided.

(a) Non-GAAP net income and diluted earnings per share exclude the effects of the pro forma adjustments as detailed above. Non-GAAP net income and diluted earnings per share are key components of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing our past and future operating performance.

(b) Refer to the Itemized Reconciliations between GAAP and Non-GAAP Results of Operations for the components of these amounts.

(c) Amounts represent the impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective in Q1 2024.

(d) Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed.

(e) Amounts represent the difference between book and tax accounting related to stock-based compensation cost.

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5: ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Three Months Ended

June 30, 2024

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$   743

68.0 %

$           (16)

$              (6)

$    721

64.8 %

Amortization of acquired intangible assets

15

1.4 %

31

—

46

4.2 %

Non-GAAP gross profit (a)

$   758

69.4 %

$             15

$              (6)

$    767

69.0 %

GAAP and Non-GAAP R&D expense

$   241

22.1 %

$             88

$              (4)

$    325

29.2 %

GAAP SG&A expense

$     60

5.5 %

$             88

$              (1)

$    147

13.2 %

Amortization of acquired intangible assets

—

—

(1)

—

(1)

(0.1) %

Contingent consideration liabilities (c)

271

24.8 %

—

—

271

24.4 %

Acquisition-related expenses (d)

(46)

(4.2) %

(3)

—

(49)

(4.4) %

Restructuring (g)

(3)

(0.3) %

—

—

(3)

(0.3) %

Accrued interest on EC fine (h)

(7)

(0.6) %

—

—

(7)

(0.6) %

Non-GAAP SG&A expense

$   275

25.2 %

$             84

$              (1)

$    358

32.2 %

GAAP goodwill and intangible impairment

$      —

—

$        1,886

$              —

$  1,886

169.6 %

Goodwill impairment (i)

—

—

(1,466)

—

(1,466)

(131.8) %

Intangible (IPR&D) impairment (i)

—

—

(420)

—

(420)

(37.8) %

Non-GAAP goodwill and intangible impairment

$      —

—

$             —

$              —

$       —

—

GAAP operating profit (loss)

$   442

40.5 %

$       (2,078)

$              (1)

$  (1,637)

(147.2) %

Cost of revenue

15

1.4 %

31

—

46

4.2 %

SG&A costs

(215)

(19.7) %

4

—

(211)

(19.0) %

Goodwill and intangible impairment

—

—

1,886

—

1,886

169.6 %

Non-GAAP operating profit (loss) (a)

$   242

22.2 %

$         (157)

$              (1)

$      84

7.6 %

GAAP other (expense) income, net

$  (341)

(31.2) %

$               2

$              —

$   (339)

(30.5) %

Strategic investment related loss, net (e)

334

30.5 %

—

—

334

30.0 %

Gain on Helix contingent value right (f)

(8)

(0.7) %

—

—

(8)

(0.7) %

Foreign currency loss on EC fine (j)

2

0.2 %

—

—

2

0.2 %

Non-GAAP other (expense) income, net (a)

$    (13)

(1.2) %

$               2

$              —

$     (11)

(1.0) %

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Three Months Ended

July 2, 2023

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$   760

65.5 %

$       (24)

$              (4)

$    732

62.2 %

Amortization of acquired intangible assets

14

1.2 %

33

—

47

4.0 %

Restructuring (g)

3

0.3 %

—

—

3

0.3 %

Non-GAAP gross profit (a)

$   777

67.0 %

$          9

$              (4)

$    782

66.5 %

GAAP R&D expense

$   274

23.6 %

$        89

$              (5)

$    358

30.4 %

Acquisition-related expenses (d)

(1)

(0.1) %

—

—

(1)

(0.1) %

Restructuring (g)

(12)

(1.0) %

—

—

(12)

(1.0) %

Non-GAAP R&D expense

$   261

22.5 %

$        89

$              (5)

$    345

29.3 %

GAAP SG&A expense

$   371

31.9 %

$        91

$              —

$    462

39.3 %

Amortization of acquired intangible assets

—

—

(1)

—

(1)

(0.1) %

Contingent consideration liabilities (c)

(29)

(2.5) %

—

—

(29)

(2.5) %

Acquisition-related expenses (d)

(18)

(1.4) %

(3)

—

(21)

(1.8) %

Restructuring (g)

(17)

(1.5) %

(2)

—

(19)

(1.6) %

Legal contingency and settlement (k)

(12)

(1.0) %

—

—

(12)

(1.0) %

Proxy contest

(25)

(2.2) %

—

—

(25)

(2.1) %

Non-GAAP SG&A expense

$   270

23.3 %

$        85

$              —

$    355

30.2 %

GAAP operating profit (loss)

$   115

9.9 %

$     (204)

$               1

$     (88)

(7.5) %

Cost of revenue

17

1.5 %

33

—

50

4.3 %

R&D costs

13

1.1 %

—

—

13

1.1 %

SG&A costs

100

8.7 %

7

—

107

9.1 %

Non-GAAP operating profit (loss) (a)

$   245

21.2 %

$     (164)

$               1

$      82

7.0 %

GAAP other (expense) income, net

$      (3)

(0.3) %

$          2

$              —

$       (1)

(0.1) %

Strategic investment related loss, net (e)

2

0.2 %

—

—

2

0.2 %

Non-GAAP other (expense) income, net (a)

$      (1)

(0.1) %

$          2

$              —

$        1

0.1 %

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Six Months Ended

June 30, 2024

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 1,436

66.9 %

$      (38)

$            (10)

$  1,388

63.5 %

Amortization of acquired intangible assets

30

1.4 %

65

—

95

4.3 %

Non-GAAP gross profit (a)

$ 1,466

68.3 %

$       27

$            (10)

$  1,483

67.8 %

GAAP R&D expense

$   479

22.3 %

$     189

$              (8)

$     660

30.2 %

Restructuring (g)

(2)

(0.1) %

—

—

(2)

(0.1) %

Non-GAAP R&D expense

$   477

22.2 %

$     189

$              (8)

$     658

30.1 %

GAAP SG&A expense

$   396

18.5 %

$     192

$              —

$     588

26.9 %

Amortization of acquired intangible assets

—

—

(2)

—

(2)

(0.1) %

Contingent consideration liabilities (c)

255

11.9 %

—

—

255

11.7 %

Acquisition-related expenses (d)

(70)

(3.3) %

(11)

—

(81)

(3.7) %

Restructuring (g)

(38)

(1.8) %

(1)

—

(39)

(1.8) %

Accrued interest on EC fine (h)

(14)

(0.7) %

—

—

(14)

(0.7) %

Non-GAAP SG&A expense

$   529

24.6 %

$     178

$              —

$     707

32.3 %

GAAP goodwill and intangible impairment

$       3

0.1 %

$   1,886

$              —

$  1,889

86.3 %

Goodwill impairment (i)

—

—

(1,466)

—

(1,466)

(67.0) %

Intangible (IPR&D) impairment (i)

(3)

(0.1) %

(420)

—

(423)

(19.3) %

Non-GAAP goodwill and intangible impairment

$      —

—

$        —

$              —

$       —

—

GAAP operating profit (loss)

$   558

26.0 %

$ (2,305)

$              (2)

$ (1,749)

(79.9) %

Cost of revenue

30

1.4 %

65

—

95

4.3 %

R&D costs

2

0.1 %

—

—

2

0.1 %

SG&A costs

(133)

(6.2) %

13

—

(120)

(5.4) %

Goodwill and intangible impairment

3

0.1 %

1,886

—

1,889

86.3 %

Non-GAAP operating profit (loss) (a)

$   460

21.4 %

$    (341)

$              (2)

$     117

5.4 %

GAAP other (expense) income, net

$  (342)

(15.9) %

$         5

$              —

$   (337)

(15.4) %

Strategic investment related loss, net (e)

327

15.2 %

—

—

327

15.0 %

Gain on Helix contingent value right (f)

(11)

(0.5) %

—

—

(11)

(0.5) %

Foreign currency loss on EC fine (j)

3

0.1 %

—

—

3

0.1 %

Non-GAAP other (expense) income, net (a)

$    (23)

(1.1) %

$         5

$              —

$     (18)

(0.8) %

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 5 (CONTINUED): ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP RESULTS OF OPERATIONS AS A PERCENT OF REVENUE:

Six Months Ended

July 2, 2023

Core Illumina

GRAIL

Eliminations

Consolidated

GAAP gross profit (loss) (b)

$ 1,446

64.7 %

$      (50)

$            (10)

$  1,386

61.3 %

Amortization of acquired intangible assets

29

1.3 %

67

—

96

4.2 %

Restructuring (g)

3

0.1 %

—

—

3

0.1 %

Non-GAAP gross profit (a)

$ 1,478

66.1 %

$       17

$            (10)

$  1,485

65.6 %

GAAP R&D expense

$   532

23.7 %

$     175

$              (8)

$     699

30.9 %

Acquisition-related expenses (d)

(1)

—

—

—

(1)

—

Restructuring (g)

(13)

(0.5) %

—

—

(13)

(0.6) %

Non-GAAP R&D expense

$   518

23.2 %

$     175

$              (8)

$     685

30.3 %

GAAP SG&A expense

$   656

29.4 %

$     184

$              (1)

$     839

37.1 %

Amortization of acquired intangible assets

—

—

(2)

—

(2)

(0.1) %

Contingent consideration liabilities (c)

(28)

(1.3) %

—

—

(28)

(1.2) %

Acquisition-related expenses (d)

(38)

(1.7) %

(9)

—

(47)

(2.1) %

Restructuring (g)

(17)

(0.7) %

(2)

—

(19)

(0.8) %

Legal contingency and settlement (k)

(15)

(0.7) %

—

—

(15)

(0.7) %

Proxy contest

(31)

(1.4) %

—

—

(31)

(1.4) %

Non-GAAP SG&A expense

$   527

23.6 %

$     171

$              (1)

$     697

30.8 %

GAAP operating profit (loss)

$   257

11.5 %

$    (408)

$              (1)

$   (152)

(6.7) %

Cost of revenue

32

1.4 %

67

—

99

4.3 %

R&D costs

14

0.6 %

—

—

14

0.6 %

SG&A costs

129

5.8 %

13

—

142

6.3 %

Non-GAAP operating profit (loss) (a)

$   432

19.3 %

$    (328)

$              (1)

$     103

4.5 %

GAAP other (expense) income, net

$    (19)

(0.9) %

$         4

$              —

$     (15)

(0.7) %

Strategic investment related loss, net (e)

16

0.7 %

—

—

16

0.7 %

Gain on Helix contingent value right (f)

(3)

(0.1) %

—

—

(3)

(0.1) %

Non-GAAP other (expense) income, net (a)

$      (6)

(0.3) %

$         4

$              —

$       (2)

(0.1) %

All amounts in tables are rounded to the nearest millions, except as otherwise noted. As a result, certain amounts may not recalculate using the rounded amounts provided. Percentages of revenue are calculated based on the revenue of the respective segment.

(a) Non-GAAP gross profit, included within non-GAAP operating profit (loss), is a key measure of the effectiveness and efficiency of manufacturing processes, product mix and the average selling prices of our products and services. Non-GAAP operating profit (loss) and non-GAAP other (expense) income, net exclude the effects of the pro forma adjustments as detailed above. Non-GAAP operating margin is a key component of the financial metrics utilized by the company’s board of directors to measure, in part, management’s performance and determine significant elements of management’s compensation. Management has excluded the effects of these items in these measures to assist investors in analyzing and assessing past and future operating performance, including in the non-GAAP measures related to our segments.

(b) Reconciling amounts are recorded in cost of revenue.

(c) Amounts consist of fair value adjustments for our contingent consideration liability related to GRAIL.

(d) Amounts consist primarily of legal and other expenses related to the acquisition and divestiture of GRAIL.

(e) Amounts consist primarily of mark-to-market adjustments and impairments from our strategic investments. Amounts for Q2 2024 and YTD 2024 primarily relate to the impairment on our retained investment in GRAIL post spin-off.

(f) Amounts consist of fair value adjustments related to our Helix contingent value right.

(g) Amount for Q2 2024 consists primarily of employee severance costs. Amount for YTD 2024 consists primarily of lease and other asset impairments. Amounts for Q2 2023 and YTD 2023 consist primarily of employee severance costs and lease and other asset impairments.

(h) Amounts for Q2 2024 and YTD 2024 consist of accrued interest on the fine imposed by the European Commission.

(i) Amounts for Q2 2024 and YTD 2024 consist of goodwill and IPR&D intangible asset impairments related to GRAIL. Amount for YTD 2024 also consists of an IPR&D intangible asset impairment related to Core Illumina in Q1 2024.

(j) Amounts for Q2 2024 and YTD 2024 consist of unrealized gains/losses related to foreign currency balance sheet remeasurement of the EC fine liability and unrealized/realized mark-to-market gains/losses on the hedge associated with the EC fine.

(k) Amount for Q2 2023 consists of an adjustment to our accrual for the fine imposed by the European Commission. Amount for YTD 2023 also consists of a loss related to a patent litigation settlement in Q1 2023.  

 

Illumina, Inc.
Results of Operations – Non-GAAP (continued)
(Dollars in millions)
(unaudited)

TABLE 6: CONSOLIDATED ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP TAX PROVISION:

Three Months Ended

Six Months Ended

June 30,
2024

June 30,
2024

GAAP tax provision

$         12

(0.6) %

$         28

(1.4) %

Incremental non-GAAP tax expense (b)

104

117

Income tax provision (c)

(1)

(1)

GILTI, U.S. foreign tax credits, and global minimum top-up tax (d)

(99)

(116)

Non-GAAP tax provision (a)

$         16

22.3 %

$         28

28.8 %

Three Months Ended

Six Months Ended

July 2,
2023

July 2,
2023

GAAP tax provision

$       145

(163.8) %

$         64

(38.5) %

Incremental non-GAAP tax expense (b)

(43)

6

Income tax provision (c)

—

(8)

GILTI and U.S. foreign tax credits (d)

(69)

(25)

Non-GAAP tax provision (a)

$         33

39.3 %

$         37

37.2 %

 

TABLE 7: CORE ILLUMINA ITEMIZED RECONCILIATION BETWEEN GAAP AND NON-GAAP TAX PROVISION:

Three Months Ended

Six Months Ended

June 30,
2024

June 30,
2024

GAAP tax provision

$         35

35.0 %

$         80

37.3 %

Incremental non-GAAP tax expense (b)

41

62

Income tax provision (c)

(1)

(1)

GILTI, U.S. foreign tax credits, and global minimum top-up tax (d)

(20)

(33)

Non-GAAP tax provision (a)

$         55

24.2 %

$       108

24.9 %

(a) Non-GAAP tax provision excludes the effects of the pro forma adjustments as detailed above. Management has excluded the effects of these items in this measure to assist investors in analyzing and assessing past and future operating performance.

(b) Incremental non-GAAP tax expense reflects the tax impact of the non-GAAP adjustments listed in Table 2 and 4.

(c) Amounts represent the difference between book and tax accounting related to stock-based compensation cost.

(d) Amounts represent the impact of GRAIL pre-acquisition net operating losses on GILTI, the utilization of U.S. foreign tax credits, and the Pillar Two global minimum top-up tax, which became effective in Q1 2024.      

 

Investors:
Salli Schwartz
+1.858.291.6421
ir@illumina.com

Media:
Bonny Fowler
+1.740.641.5579
pr@illumina.com

 

View original content:https://www.prnewswire.com/news-releases/illumina-reports-financial-results-for-second-quarter-of-fiscal-year-2024-302215890.html

SOURCE Illumina, Inc.

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Competition Bureau publishes report on Canada’s Competition Summit 2024

Published

15 seconds ago

on

November 14, 2024

By

GATINEAU, QC, Nov. 14, 2024 /CNW/ – Today, the Competition Bureau published a report highlighting the key takeaways from “Canada’s Competition Summit 2024: Market Dynamics in the AI Era,” which took place in Ottawa and virtually on September 16, 2024.

The event featured experts from domestic and international competition authorities, regulatory bodies, businesses and non-governmental organizations, as well as the legal and academic communities. The discussions focused on:

the current AI landscape;the impacts of AI on competition across markets; and,international and domestic regulatory approaches to AI.

The report published today summarizes 5 key takeaways from these discussions:

AI is having an impact on competition across sectors of the economy, presenting both opportunities and risks.Regulatory frameworks need to adapt to address the unique challenges posed by AI.International cooperation is crucial for effective regulation and enforcement in AI-driven markets.There is a need for transparency in AI systems to ensure accountability and consumer trust.The role of big tech in AI development is contentious.

The Bureau thanks all attendees, panelists and speakers, who helped advance the conversation on these emerging issues related to AI. We look forward to continuing to discuss competition policy issues and opportunities at Competition Summits in the years to come.

Quotes

“As Canada’s competition watchdog, the Competition Bureau needs to be at the forefront of AI and understand its impact on the competitive landscape. I am thankful for the important contributions from our panelists and speakers at this year’s Summit, as they will help us continue to build our understanding of AI’s impacts on competition.”

Matthew Boswell,
Commissioner of Competition

Quick facts

This year’s event was the fifth annual edition of Canada’s Competition Summit. Previous Summits covered digital enforcement (2020), competition and growth (2021), green growth (2022), and whole-of-government approaches to policy (2024).Over 500 participants from Canada and abroad attended the 2024 Summit.This year’s Summit is part of our ongoing work to better understand AI, how it might affect competition, and how we can address potential anticompetitive harm from AI and promote competition in AI markets. This work also includes cross-governmental collaboration through the Canadian Digital Regulators Forum and a consultation on the Discussion Paper on Artificial intelligence and competition earlier in 2024.In keeping with the theme of this year’s Summit, this report was drafted using a combination of human effort and AI technology. This is a first for the Bureau. We used an artificial intelligence program to summarize the discussions held at Canada’s Competition Summit 2024 and to develop the first draft of these key takeaways. The final content was fact-checked and quality-controlled by Bureau personnel.

Related products

Report on Summit 2024: Competition in the AI EraCanada’s Competition SummitCompetition Bureau to host summit on competition and artificial intelligence this SeptemberCanada’s Competition Summit 2024: Competition Bureau releases details about panels and expert participants

Associated links

Exploring policy approaches to unlock competition (2023)The Competition and Green Growth Summit (2022)The Competition and Growth Summit (2021)Digital Enforcement Summit (2020)Artificial intelligence and competition: Discussion paper (2024)Canadian Digital Regulators Forum

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.

SOURCE Competition Bureau

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Shipt Saves the Season with Unbeatable Convenience, Exclusive Promotions, and Membership Savings

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17 seconds ago

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November 14, 2024

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Get everything from gifts to hosting essentials reliably delivered via Shipt

BIRMINGHAM, Ala., Nov. 14, 2024 /PRNewswire/ — This holiday season, Shipt is spreading cheer with delightful same-day delivery, unmatched deals, and everything customers need all season long. From hosting family dinners to searching for the perfect gifts to grabbing last-minute holiday essentials and toasting to the new year*, Shipt helps ease the stress with exclusive promotions and 50% off its annual membership for a limited time.

To sweeten holiday shopping, Shipt is launching Season of Savings, an annual event packed with discounts and surprises on the products customers want all season long. Plus, Shipt has added over 2,000 new retail locations nationwide this year, including Ulta Beauty at Target, The Fresh Market, Lowe’s, and local favorites like Giant Eagle and Save Mart, giving members even more curated options. These new additions join favorites like Target, CVS, and Petsmart, as well as beloved local grocers.

SHIPT MEMBERSHIP: CONVENIENCE MEETS HOLIDAY MAGIC
Shipt’s $49 annual membership promotion (regularly $99) is now available through January 4, 2025, making it easier than ever to enjoy same-day delivery from your favorite stores. With an annual membership, customers get unlimited same-day delivery on orders over $35 and exclusive savings, and a range of members-only perks.

DEALS ACROSS ALL HOLIDAY NEEDS

In addition to the membership promotion, Shipt’s Season of Savings also features incredible deals across a wide variety of popular holiday categories, including:

Season-Long Deals (November 1-January 1)

$15 off your order of $60 or more with code HOLIDAY15**Half-off annual membership $49 (reg. $99) with code SHIPTGIFT

Thanksgiving Deals

November 10-16, at Target and all grocery stores***:Spend $25, get $10 on household essentialsBuy one, get one 50% off on bath and body productsBuy one, get one 30% off on cough, cold, and flu, pain and fever, vitamins and supplements30% off kitchen and diningSpend $20, save $5 on baby essentials30% off pet essentials10% off turkeyNovember 17-23: $10 off order of $50+ for those with Shipt student membershipsNovember 25-27: spend $35, save $10 on on last-minute Thanksgiving essentials at all grocery stores and Target****

December Holiday Deals

December 1-14: 25% off orders of $40 or more from Ulta Beauty at Target, CVS, Walgreens, PetSmart, Petco, Lowes, Carters, Office Depot, and Office Max (max savings of $10)*****December 8-24: 20% off top gifting categories at Target + Meijer (Shipt members only)******

ALL-NEW GIFT CARD EXPERIENCE
Not sure what to give that special someone? A Shipt gift card is the perfect gift!

A Shipt gift card never expires, and with an all-new digital facelift, including multiple card designs and e-gifting options, a Shipt gift card lasts beyond the holiday season. And even better, take advantage of the season-long 50% off membership offer when purchasing an annual membership gift card. Terms and conditions apply. Please check out shipt.com/gift for more information.

SHIPT TO THE RESCUE: HOW IT WORKS
No matter how hectic the holiday calendar gets, Shipt makes shopping stress-free:

Download the Shipt app or visit Shipt.com to sign up for a membership or take advantage of a 14-day free trial**. Target Circle 360 members can enable access to the Shipt marketplace by visiting shipt.com/target-circle-360. Choose the store you wish to order from.Build your shopping list with a wide range of categories, from fresh groceries to festive decorations.Select a convenient delivery window and a trusted shopper with Shipt will shop your order, communicating with you about out-of-stocks, relevant substitutions and where they are in the shopping process (option to select back-ups for products out of stock ahead of time).

To learn more about Shipt’s holiday offers and start saving today, visit www.shipt.com or download the Shipt app.

About Shipt
Shipt is a retail tech company that connects people to reliable, high-quality delivery with a personal touch. Through the power of technology, Shipt connects customers to the things they want from the stores they love, workers to new earning opportunities, and retail businesses to more satisfied customers. Headquartered in Birmingham, Alabama, Shipt brings people the flexible solutions they need with the above-and-beyond service they expect. Shipt is an independently operated subsidiary of Target Corp. and is available to 80% of the U.S. population. For more information, please visit Shipt’s Newsroom.

*States with alcohol delivery availability: Alabama, Arizona, California, Connecticut, District of Columbia, Florida, Hawaii, Illinois, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, Nebraska, Ohio, Tennessee, Texas, Georgia, Iowa, Idaho and Mississippi

**Offer valid for new customers only, returning customers are ineligible. 14 day trial will renew at the applicable membership rate at the end of the trial. Cancellation available free of charge anytime during trial. Offer is subject to Shipt Promotion Terms and Conditions. Deliveries under $35 with a membership will incur a $7 fee. All orders with alcohol (where available) may incur a $7 alcohol fee. Service fees may apply and will vary by retailer and location. See Terms of Service

***Offer expires 11/16/2024. Discount available at select retailers and applies to select items. Discount applied automatically at check out for qualifying orders. Limit one per order. Promotion is subject to Terms and Conditions.

****Purchase of qualifying products at select retailers of $35 or more must be placed by 11/27/2024 at 11:59 p.m. HT to qualify for $10 off, which will automatically apply to qualifying order at checkout. Limit 1 credit per member. Offer is subject to Shipt Promotional Terms and Conditions.

*****Store availability varies by location. Offer valid 12/1/24 through 12/14/24. Carter’s, CVS, Lowe’s, Office Depot OfficeMax, PetSmart, Petco, Walgreens, or Ulta Beauty at Target order of $40 or more must be placed by 12/14/24 at 11:59 p.m. HT to qualify for max savings of $10, which will automatically apply to qualifying order at checkout. Offer not valid for orders containing alcohol items. Limit 1 credit per member. Offer is subject to Shipt Promotional Terms and Conditions.

******Purchase of qualifying products at Target or Meijer must be placed by 12/24/2024 at 11:59 p.m. HT to qualify for 20% off, which will automatically apply to a qualifying order at checkout. Limit 1 credit per member. Offer is subject to Shipt Promotional Terms and Conditions.

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Kearney Launches Geopolitical Service Line to Give Executives New “One-Stop-Shop” for Navigating Elevated Global Uncertainty

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November 14, 2024

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WASHINGTON, Nov. 14, 2024 /PRNewswire/ — Kearney, a leading global management consulting firm, today announced the launch of its newest offering, aimed at helping clients steer their companies through our ever-changing world. Kearney’s Geopolitical Dynamics provides executives with a holistic solution to navigate today’s elevated instability and its impact on business.

In a new era marked by persistent economic uncertainty, regulatory shifts, great power competition, and corresponding escalations, executives face an unprecedented volume of challenges and new opportunities. A recent Kearney assessment determined that fewer than 20% of Fortune 500 companies are ready for this “new era,” defined by heightened geopolitical and economic volatility, a shift from globalization to regionalization, and the emergence of artificial intelligence.

While traditional geopolitical advisory models served clients well in a more stable environment, today’s persistent uncertainty calls for a new approach. Kearney is stepping up with a comprehensive, end-to-end solution that enables executives to proactively navigate complexity and transform it into a catalyst for opportunity. Geopolitical Dynamics offers clients a path to accelerate the development of their in-house capabilities to navigate the implications for their strategy, operations, and people, mitigating risks and capitalizing on emerging trends along the way.

“After 40 years of operating in a globalized landscape, executives now face the urgent challenge of building internal capabilities to navigate heightened geopolitical instability. They must address immediate threats to business while managing long-term planning of markets, supply chains, and the broader enterprise,” said Drew DeLong, Global Lead of Geopolitical Dynamics at Kearney. “This new service is designed to give executives a one-stop shop to navigate with confidence and stay ahead.”

Geopolitical Dynamics offers a comprehensive suite of services that covers every stage of geopolitical management:

Granular Business Intelligence: Anticipating the “what’s next” and “what’s to come” at a granular level in partnership with an expansive global network of intelligence, government, and industrial partners.

Executive Priority Setting: Aligning executive teams and boards around where and why priorities should be set based on all readily available intelligence and business-specific nuances using tabletop exercises, granular scenario planning, and targeted diligences.

Operational Execution: Mobilizing supply chains and enterprise footprints to respond to immediate and long-term needs (including contingencies), leveraging nearly 100 years of Kearney’s heritage and excellence in strategic operations.

Geopolitical Org Ownership: Defining who and how geopolitics are owned and managed within the business today—at the board, CEO staff, and management levels—including the charting of Geopolitical Units and deploying Government Affairs to drive business outcomes through targeted government engagement that drives competitive industrial strategy.

This approach provides a simple but powerful solution to anticipate, plan, and respond faster to emerging threats and opportunities with clarity, speed, and ownership while minimizing disruption to the business—something that is critical to the executive agenda today.

“Boards and leadership teams can no longer afford to treat geopolitical matters in isolation from the standard course of business,” noted Colette LaForce, independent Board Director, Kearney advisor, and former CXO of Dell Services and AMD. “The C-suite needs a streamlined solution that cuts through generic intelligence, aligns our teams, and enables rapid response. Kearney has built a model that is designed to do just that for organizations of all sizes and in all sectors.”

This offering will draw on Kearney’s expansive capabilities to offer executives truly differentiated insights: product design analysis from PERLab, on-the-ground data from reshoring experts, market insights from the Consumer Institute, detailed trends from the Supply Chain Institute, and macroeconomic forecasts from the Global Business Policy Council.

For more information about how Kearney’s Geopolitical Dynamics capability will help you navigate the road ahead, please visit Geopolitical Dynamics or contact one of our experts listed below.

Drew DeLong – Drew.Delong@kearney.com

Doug Mehl – Doug.Mehl@kearney.com

Ben T. Smith, IV – Ben.Smith@kearney.com

About Kearney

Kearney is a leading global management consulting firm. For nearly 100 years, we have been a trusted advisor to C-suites, government bodies, and nonprofit organizations. Our people make us who we are. Driven to be the difference between a big idea and making it happen, we work alongside our clients to regenerate their businesses to create a future that works for everyone. To learn more about Kearney, please visit www.kearney.com.

Press contact 

US media contact:
Meir Kahtan
MKPR
mkahtan@rcn.com
+1 917-864-0800

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