Illumina Inc. (NASDAQ:ILMN) Q3 2020 Earnings Conference Call - Final Transcript

Oct 29, 2020 • 05:00 pm ET

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Illumina Inc. (NASDAQ:ILMN) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Third Quarter 2020 Illumina Earnings Conference Call. [Operator Instructions] Thank you. As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference call, Ms. Julia Cunningham, VP, Illumina Investor Relations. Please go ahead.

Executive
Juliet Cunningham

Good afternoon, everyone, and thanks for joining us for our third quarter 2020 results conference call. During the call today, we will review the financial results released after the close of market and offer commentary on our commercial activity, after which we will host a question-and-answer session. If you've not had a chance to review the earnings release, it can be found in the Investor Relations section of our website at illumina.com.

Participating for Illumina today will be Francis deSouza, President and Chief Executive Officer; and Sam Samad, Chief Financial Officer. Francis will share an update on our business and Sam will review our financial results. Similar to last quarter, we are hosting our call from a number of different locations, so please bear with us if there are any technical issues or pauses.

This call is being recorded and the audio portion will be archived in the Investors section of our website. It is our intent that all forward-looking statements regarding our financial results and commercial activity made during today's call will be protected under the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks and uncertainties. Actual events or results may differ materially from those projected or discussed. All forward-looking statements are based upon current available information and Illumina assumes no obligation to update these statements. To better understand the risks and uncertainties that could cause actual results to differ, we refer you to documents that Illumina files with the Securities and Exchange Commission, including Illumina's most recent forms 10-Q and 10-K.

With that, I'll turn the call over to Francis.

Executive
Francis deSouza

Thank you, Juliet. Good afternoon, everyone, and thank you for joining us today. We saw a strong rebound in our business in the third quarter with a faster recovery than we expected in both our clinical and research customers. Total revenue for the third quarter was $794 million, up 26% sequentially and down 12% compared to the prior year period.

I'll share the third quarter highlights and Sam will provide more detailed financials. Sequencing revenue grew 25% compared to the second quarter of 2020. Sequencing consumables grew 29% sequentially with strength across our high, mid and low throughput product portfolio. NextSeq momentum continued to build with mid-throughput consumables growing both sequentially and 3% year-over-year. And we expect continued growth in the fourth quarter. Sequencing instruments also outperformed expectations with revenue up 24% sequentially. This growth was primarily driven by increased shipments of NovaSeq and NextSeq platforms. NovaSeq purchases have rebounded nicely from Q1 when some customers delayed purchases as shelter-in-place policies took effect.

We have been pleased with the sequential growth in NovaSeq shipments in each quarter since Q1. We're entering the fourth