Illumina, Inc. (NASDAQ:ILMN) Q4 2023 Earnings Call Transcript

Joydeep Goswami: Yes. So first, easy part is, no, we have said right all through, right, that we had designed the X and X consumables that at scale, right, they would — we would expect the margins to be comparable to X consumables at scale. What you’re seeing is, of course, early on in the adoption, you’re going to see the consumables margins to be lower. We haven’t fully scaled up. And as we move through ’24, you will see that more or less normalized. Now as you go into ’24, overall gross margins will be — have several factors, right? So one, — we will have a little bit of a benefit from the lower placement of instruments as you — we’ve said right that we do expect that to declines a little bit more consumables that will lead to an increase in gross margin. We also will benefit from some uptick in terms of all the actions we have taken to improve COGS productivity. So those are the two largest things that will serve to improve our gross margins as we get to ’24.

Operator: Thank you. And that concludes our Q&A session. I will now hand the call back over to Salli Schwartz.

Salli Schwartz: Thank you for joining us today. As a reminder, a replay of this call will be available in the Investors section of our website. This concludes our call, and we look forward to seeing you at upcoming conferences and other events.

Operator: Thank you. That does conclude today’s conference. We do thank you for your participation. Have an excellent day.