QGEN - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by. I am Katie, your call operator. Welcome, and thank you for joining QIAGEN's Q3 2024 Earnings Conference Call Webcast. [Operator Instructions] Please be advised that this call is being recorded at QIAGEN's request and will be made available on their Internet site. [Operator Instructions]

like of your Relations Corporate I'd Vice John at time, Head President, Communications this to host, introduce Gilardi, QIAGEN. At and Investor ahead. go Please

John Gilardi

So website. in pleased be IR to of you to live with for thank will appreciate thank archived call have quarterly for section your is and interest webcast our We're joining the us This of you, all call. results us and QIAGEN. our operator, in you you being

the of quarterly press can also copy You our a the and on results, presentation find release website.

results everyone the website. Now to may in discussed we like SEC our projected forward-looking cause with we I'd recent to discussing most from factors on our actual statements materially this remind in XX-F and differ results that Actual materially The on will that available file statements could make. call. are be also Form any those on that differ our

will generally useful we investors. addition, measures be provide measures information certain principles financial believe non-GAAP We accounting In GAAP. accepted prepared these to following to referring not or

references You All in a EPS refer reconciliation our release. diluted can to find EPS. to

initiatives with Thierry remarks our Chief start Roland our on Chief Sackers, Q&A So Officer, followed will the Executive and Financial by quarter, Bernard, Officer; for key a the some session.

over With that, to call hand let me Thierry. the

Thierry Bernard

recurring us. solid over you sales. heavily to John. once and delivered pleased and very have when world, results. our good quarter revenues, in targets are our XX% good our which for of I'm of Thanks on Hello, that you, depending the joining Thank thank morning, exceeded even good or another represent to our evening afternoon again teams and share you

outstanding challenging truly want achieve moment on this QIAGEN. to some well of But for remarkable get environment. celebrate the let we our the performance track take quarter here I very macro goals into me impact in our achievements. of X, a recognize are before We to XXXX to still

This real our impact contribution our where prizes to and a is Nobel for QIAGEN customers were care. year customers their daily is invaluable the science testament lives. advancing health to XXXX another our awarded on of improving

XXth support product we price committed delivering noble life more As helping winners to will in quality that the make in anniversary we our are future highest than possible. improvements in XXXX, celebrate ever to

me So now key let for our highlight messages QX.

$XXX in we foremost, Growth quarter. outlook and We outlook excluding rate. was the First sales our CER. $XXX the growth exchange constant CER. least exceeded the sales the X% million delivered earnings at for X% third quarter, adjusted This and million exceeded NeuMoDx in representing franchise of at at for third also

Consumables XX% X% To XXXX, and be our related sales. Solutions CER noted, contributed we our grew saw product Diagnostic over group. QX and in to a of growth XX% revenues

has diluted and on $X.XX, this continue those customer see instruments, EPS We constant cautious was spending $X.XX X% our to above Adjusted and for $X.XX. were at rates results and outlook $X.XX least were at CER. declined exchange

on milestones. our key message, for launches strongly several delivering ambitions achieved as This future we key positions our XXXX important and Second we product growth towards set QIAGEN commitment.

CER highlight, the in placements with first quarter. a of than more sales quarter third As a QIAstat and XXX instruments by strong very worldwide driven demand XX% increasing had growth

panels, now the for and the this FDA and clearance We for menangitis received clearances have just week the QIAstat X panel. of this announcements includes sepalitis

GI accomplishment. the Europe gastrointestinal IVDR appreciation yet September, new for and we done are respiratory this to tremendous we for with the on my panels. plan. QIAstat in express But here our approvals also QIAstat new our In expansion menu not me the regulations received instruments Let team along and

announced ecosystem testing, regulated this for decisions diagnosis to we treatment framework. QIAstat for diseases is Building various help in regulatory product expanding provide Most QIAstat disease. guide with precision test chronic with XX% and success on of have now new recently, and we of Alzheimer's to goal ill in we [indiscernible]. QIAGEN, use the the AstraZeneca for rigorous over using our for into more syndrome The to transferred Lilly. AstraZeneca are medicine Eli collaboration Across and also also

If we the our to such move have also new digital to A developed progress. PCR can system, as specifically cancer now are to through offer research, in online our we PCR XXX the disease surveillance. validated key addition that high-quality different infectious X,XXX areas genetic disorders now over accessible our assays seen for development was portal. QIAcuity support We inherited significant customers of and well digital GeneGlobe customers assets

clinical in version creating development PCR key Another applications. a was for digital of QIAcuity

The version designed first QIAcuity oncology. X-plate initial and after customers have A the focus been made approval specifically of FDA on Diagnostics. an September placements clinical with for in

QIAcuity continue a we capabilities solution And very suited very out way. is the equity well that next-generation meaningful in decision diagnostic application better QIAcuity a cancer it QPCR now offers customers and to progression against portfolio many clinical supporting for make It sequencing. making for or build monitoring diagnostics. for

significant Turning and delivered We message. improvement now a the free third cash profitability to flow. in again key

Our discontinue third well by quarter of in XXXX. adjusted XXXX. from business the of operating came June sales system the income margin of across to including the the This gains as improved combination NeuMoDx by as X% to efficiency factors, from XX.X% a decision

a as the NeuMoDx and and we here, In our X The we had takes constant exchange terms in continues sales net adjusted target least first sales, we This million ] XX% EPS. XXXX into as as be cash 'XX. expectation increasing for for our we at for outlook outlook the for saw reaffirming the those are 'XX to to billion business of are year [ $XXX reduced to well sales date tracking full in $X.XXX consideration expected performance XXXX. increase net flow, solid base are at of months free Last, rates.

also our increased $X.XX from to CER. EPS was outlook the at have adjusted which We target least at prior $X.XX

our business has this to a mention from Jonathan our down like change here QIAGEN in Head Committee. Insight also Executive role. would I Digital our stepped Last, of Sheldon,

wish Let me the all many our to important future for in and express his developing business best his appreciation to we our contributions Jonathan endeavours. bioinformatics

our of who from Digital forward him Those QIAGEN had Capital with team. the chance the of Jones the I'm York to to inside Markets working rest our Day team. looking and you New meet and in Dominic QIAGEN attended

So as a quick summary.

on profitable environment. teams the to put a for course macro goals Our committed delivering in and are position challenging achieve QIAGEN XXXX. so, on our targets XXXX for growth XXXX midterm us we'll to in for the Doing further

financial review like now would over our I results. of to Roland for a to hand

Roland Sackers

joining as everyone. Thank you, you me Thank Thierry. call. Hello, for well for our

financial for the quarter. strong report to third pleased results are We

adjusted to income, give highlight percentage performance. an income to margin me figures an X increase A adjusted months operating operating the in you key adjusted the Let same compared of XX% in XX.X%, 'XX X year, first net free XXX rise period million. and that flow point in last for XX% increase X income improvement a to to XX% cash USD in

achieve are ahead, full our ability targets. to confident Looking year our we in

at our is the EPS billion least have we We to outlook outlook sales net $X.XX This at for adjusted X.XXX reaffirmed in we $X.XX from at of least the January. and at gave CER. increased CER up USD

from you give trends some the now into sales quarter. results me additional our and Let insights

and in over driven we Group In the 'XX, product year we systems. quarter higher the while kits growth sales on sales our for demand used instruments unchanged. Diagnostic CER and automation saw in sales, were Sample terms Genomics of consumables, ago and In of in third Sample X% over Technologies saw quarter, GS group the Technologies, Solutions particular, PCR by

This growth trend of is systems, QiaCube coming from EZX particular, in and the launch Connect. upgraded Connect

test, led the double-digit in the sales above launches we system the XX% of TB and new XXX were QuantiFERON the XL growth dynamic double-digit expect in further thanks important Diagnostic sixth sales growth. 'XX and gains growth for and sales instrument grew to consumables preparing also rose In CER marked which and a in to million. are strong consecutive drive USD in significant QIAstat this We sales. XX% pace, 'XX at Solutions, quarter CER by

$XXX the also the in We target on goal all XXX track are million are seeing and exceed revenues and across for to sales for deliver placements system growth of regions 'XX new over year. on over our

This in 'XX. on digital track kits. system case grew sales we on QIAcuity PCR at the we CER overall used In the the PCR for a are consumable for double-digit sales consumables consumable growth product double-digit and saw where group, over especially was pace 'XX very various an in double-digit strong growth

is year-ago But in QIAcuity like the by of time, digital business that saw to Sciences new the for others, are a with single-digit period. the and product recent Dx cautious confident 'XX we launch care health in clinical prepare customers CER the opportunities NGS In increasingly the trends unchanged spending and instruments. genomics of used we group, the for strong, the the in universal quarter at over continue third on on were declined in low processing of in growth improving At interest rate. sales future kits customer Life also sequencers. Sales are version. samples inside to same sales see We

for saw of the to of QDI of subscription host Service and being In are But virtual This business. generated we by to midterm for or dive trends Software genomic that to QDI good event our a from clearly was pharma clinical growing data perspectives more transition customers, you SaaS in as particularly favor we due share on business December light levels in the given mainly the industry longer-term in contracts. planning customers. deep growth to a the agreements in potential, the growth our are license

announced be will information Further about this event. online soon

for the Let's regions. now results to move

and countries our was we the Middle to region, from Europe, quarter. for this the the strengthen presence We expansion France in top-performing in rose initiatives the investing contributions the seeing and CER our Africa included sales X% Middle are In results international East. are and East, Italy, reflected

spending the year continued rate In were conditions lower growth third China, more light and of sales CER part third of sales Pacific, continue cautious are high that single-digit sales recovery. X% offset Asia the with in quarter at of 'XX, market over instrument down consumables Japan in CER in ago The the the period. cautious predicting environment. the to China than in In decline quarter. region, we challenging a a X% CER the in Americas, rose solid over

sales quarter. it's However, made to up the about in our that third note X% important only of China

CER single-digit business delivered this The Australia, thanks region and in growth, rest Singapore. to India expansion Japan, of our

rest the for review the third Let's now income statement quarter. the of

[indiscernible] sales the share core over operating costs mentioned to investments the margin a I as As as as levels grew the adjusted adjusted XXX gross well million. lower Key USD SG&A were XX% period. income of and ago contributors improved margin in operating to earlier, year of R&D lines

the while growth income third to QIAstat-Dx, quarter also freeing adjusted and sales. higher mix, contributor product percentage an underscore to increase the which of production the increasing margin margin the benefits on a quarter gross of XX.X% commitment operating impact solid was results X XX points of adjusted had These The was from outcome consumable points from was utilization. profitable we resources favorable our opportunities. up for had also capacity and The The basis reinvest to XX.X% 'XX.

consumables point period. from the Additional of investments contributions SAP the X.X% from PCR. about and technology sales, year Digital ago R&D were percentage business down came QIAstat X

was In we cost at pillars. projects efficiency IT and Sales X.X% to time, percentage particular, steady gains. NeuMoDx same expenses programs. cybersecurity into At efficiency effective the decrease. driving our combined of expenses a through management investments of targeted stop high has declined maintain our mainly marketing administrative level up about this and we this of investments and in stepping with General X.X the were as are been sales R&D points, and due

continue bulk approximately of cost pretax of to which about second restructuring quarter expect we about and of $XXX total million to of the with and this came for million, USD charges a in for noncash noncash. results The XX% XX% charge involved Regarding related NeuMoDx be XXX items. the charge projects,

third for million We in additional the and fourth to quarter million incurred about quarter. $XX million expect charges $XX of the $XX about

in first the of we 'XX complete as may Some program. remaining come the half charges

was was XXX shares at $X.XX $X.XX. at results adjusted This XX% line enabled the and the while full year estimate As outlook results rate for diluted million expectations. rates us above raise outlook adjusted $X.XX for average to of about profitable growth by were $X.XX. and reported tax while of the ahead and with in the at number our for solid exchange constant of XX%, were confirmation $X.XX, The EPS,

cash to Turning flow.

This over We improvements in restructuring is months the even our the the are quarter. cash in million for flow continued related period 'XX. same an impressive XX% third payments pleased to Operating of year first see $XXX to increased for after the by X decisions. to results absorbing

working $XXX X.X% by by end which stood at total of of has seen September. fallen and decreased in at receivable third and about of assets have quarter Accounts at We end 'XX. end capital, the X.X% at also since 'XX the million the at stood and the the from improvement about end have XX% a down days steady of XX.X of

by Another to the cash 'XX. went in rising cash 'XX. This impressive to upgrade a Free was pace first end the same of since the inventories the CapEx year flow in million our in than system. contributing about in levels. software compared factor of cash operating reduction is flow flow a 'XX grew at this faster $XX X months This given for primarily of SAP to the XX% $XXX period million development, particular, towards particularly increase

trends cash are the So to and NeuMoDx we solid decision. track including 'XX charges on flow related even in after for the

our about share received for September future will due to XXXX through raised prospects. our we demand, issuance strategic in growth reflecting initiatives financing, with robust confidence This repay new to million growth in in debt convertible and investor coupon. support sale proceeds a The upcoming used $XXX be obligations. of bond As successful offering also our a the X.X% net

reaching million $XXX in fourth have convertible maturity quarter. We notes in the

$XXX to expect reaching redemption repay million another 'XX maturity an in also due to for We notes convertible in early 'XX.

would I hand Thierry. to to now that, like With back

Thierry Bernard

have take a across more discuss all a now teams world Thanks our a progress Roland. to lot, let portfolio. you made And of moment me with

First on to and Roland it. Sample Technology alluded

we in We applications are is areas, the only provider QIAGEN and And many expanding are of liquid biopsy. top provider all portfolio of this biopsy liquid state-of-the-art our prep key includes of technologies: a sample X solutions.

Circulating DNA X to [ and more G&A, exosomes. ] sell

of At the world and research been leaders the the diseases in portfolio offering other studying for liquid cancer increasingly test. across biopsy that commercial to those to major this are invaluable step would today years to as you customers. in and Our many the of has many Those start various labs names recognize field.

in DNA [indiscernible] from critical to Dickinson, and We pre-analytics portfolio blood analysis. for the our for samples. continue recently needs process gene on venture moving focus urine liquid area This launched beyond and the kit leadership expanding on biopsy Becton our by pack samples to initial samples collect, solidify In we our this how addresses set. joint new with store urine

care applications both to minimal ceramic include treatment detection residual identified research markers in Key to of disease for health clinical and monitor analysis even response and targets.

to biopsy innovate monitor We easier tailor it patients continue advance the this treatments of to and make outcomes medicine area world. to get to the use better to particular, in in for precision around help liquid and improve

move we now If QuantiFERON. to

the COVID-XX rise. global Global October. for a XXXX ago WHO test was key overtaken the few as Tuberculosis detection that to disease Our to killer, has TB leading for a released be report according this the weeks tuberculosis. latent in on world's contributor fight in is the continues just is once against infectious again, And Tuberculosis

The the showed pandemic. It marked shows cases again before X.X increase significant also recorded This tuberculosis were this diagnosed people newly tuberculosis in the once million year monitoring by testing from XXXX. it began the in WHO number limited represents a And during since report the XXXX. TB of million the impact new TB reported X.X XXXX. in of the highest cases with

our a deadly and more once in event resurgence with hybrid hosting XX,XXX participants fifth leveraged resources invited of conference in-person disease London We amid again experts and Summit world's reaching the in Global virtual than across sessions. the the TB annual of knowledge our infectious by most October,

in positive, to X essential. One cases. active be is X new waves estimated create X, detection worldwide in is people and TB of the Latent TB

TB well Given of remains that the the growth latent for skin testing up U.S. test, market over in Europe, or globally XX% substantial. very still make the for all annual potential QuantiFERON

TB involved than test, to already QuantiFERON the programs our more To in skin around are in world. XX national countries test further conversion from latent screening accelerate we

further exceed We market XXXX midterm are from to drive test at our $XXX as set track now as well of the growth in and clearly on million growth. to is least conversion sales overall for target skin

new the partner We detection of disease with relay Lyme are QuantiFERON with our diary. also creating test growth of a for

are FDA from season. We testing getting XXXX awaiting the for the decision and a ready

QIAGEN to the details the Roland you has the across outlook positioned, now for And that portfolio, So can back our our see company on our and working never better we edge. positioned are been strengthen year. with competitive to

Roland Sackers

Thank you, Thierry.

and me Let more quarter. updated fourth now in perspectives the outlook provide 'XX our for on also

X.XXX into of to for decision in billion sales have the taking at after solid at USD system. business the the from net our and growth We reaffirmed sales least base reduced year outlook the NeuMoDx full consideration discontinue CER

net of For $XXX from outlook of headwind the 'XX. the $XXX for we at have the This about X NeuMoDx quarter, fourth CER, an about CER of at percentage from decision. million set includes least a of fourth quarter increase sales an point million in X%

over fourth the growth So in CER a X% to second effect, underlying the of of 'XX, with X%. X% growth leaving half rate quarter

This confirms half On in second adjusted in another our rates for significant the in year outlook earnings on this profitability. for is the acceleration upgrade to based CER and 'XX expected results of per first for compared $X.XX the year. updated the at our share, least improvements half of growth year-on-year at

compared fourth $X.XX to at for profitable be commitment so the least share of that the per at we our 'XX, earnings Remember EPS the $X.XX CER at the start also good solid as improvement. per quarter least year $X.XX on fourth [indiscernible] quarter to for down CER adjusted outlook of this to share another expected at doubled are for in Adjusted growth.

not the the at change announced quarter. we based any from impact on second what recent do end on currencies, for we of movements, the expect As

We share about expecting adjusted results. impact percentage per year EPS on and X of adverse point sales on an net about impact are full were $X.XX adverse

to would I like now to hand Thierry back

Thierry Bernard

Thank lot, Roland. you

coming We to the are of our end call.

the messages So summarize into let our move session. me then and for we'll today, key Q&A

and very recurring for macro solid we the over earnings. our that of quite among XX% sales had to customers solid our performance a also Despite First, instruments, spending adjusted and third heavily quarter environment at net the challenging on revenues deliver exceeded on on outlook continues growth. sales cautious

performance the especially solution of were pleased PCR diagnostic technologies, product our sample with We groups. and

We to steady our number efficiency and adjusted product flow on growth confident generation outlook the is 'XX improved new cash for for delivering that that, a target of power now with development. margin in our on with product in like teams the fair updated saw back and income and its in commitment the innovation solid years us say to I'd more on XX.X%. and to This is delivering through operating company and to operator the And on profitability, delivering Q&A 'XX hand on achieving is also It session. launches an profitable at positioning John sales. makes for ahead. the QIAGEN

Operator

Instructions] [Operator

Patrick first with to go Donnelly We'll Citi.

Patrick Donnelly

another the your from to QuantiFERON, landscape this the certainly double-digit type nice business. guess, some quarter no of few on there's I seems have growth competitive quieted Obviously, forward, maybe perspective. Thierry, clearly last down talk noise you sustainability here. going over impact but the drivers, growth Can our quarters, the of about, just

again, what you're a And seeing I forward? then just talk that. going the follow-up after about maybe growth So have

Thierry Bernard

another digit remains same. revenues. have $XXX sixth double and quarter us the highlighting quarter, another you Yes, driver also million for seen Patrick. you, Thank Main above the

We very coherent. are

to in skin Diasorin It's customers the with QuantiFERON antiquated It's offers convert a fantastic test. We XX% partnership market. this potential as gives still of blood than more customers; to our well. an its format value second, value have and technology to

proof more of and converting to installed technical our efficiency, traditional DiaSorin more We guidelines QuantiFERON latent are convert years it because plan; test tuberculosis. a partnership. but adding of base. to quantify we to their of publication, TB premium testing It's third, we we customers, against to have convert successful medical DiaSorin, any a we can time many education countries continue in at and also are customer do to the And

that, that objective We Market our for year a X sustainable coming have but to growth Capital seen Day you X% would for we years. Patrick, X% that revenues gives I announced CAGR a projected highlight drivers. key of an as the of in QuantiFERON the us $XXX the believe it's million XXXX, by ahead which us,

Patrick Donnelly

of I kind about that, aware Roland that Yes. And high Roland. on you talk piece, Thierry. can headwinds the margin remarks I eyes think on then No, guys next then we're next as highlighted you in year reason know level moving mid-single-digit type we end closing of the -- chime that's here, of helpful. year. it appreciate the both maybe we be as range kind And I about of? revenues, the should why can any turning pieces, should on healthy just the in then on towards year question margins high you mean, just any be same another be maybe of the for and the wouldn't 'XX kind revenue the there,

Thierry Bernard

Patrick. and And look you, that disclosed line the forecasted HX. then acceleration acceleration, you margin on paradigm Patrick, if with the growth at we of you in we it, in see the Roland expansion. 'XX, starting pattern our Thank that the and mean I top

you be X% going X% to If between look overall at we're growth. to the HX,

transition, a growing well. of business very the the X in had instruments QDR the and are different in as QIAstat, consumables growth. the And of momentum digital had, growth then in back we we fastest said, to have in tech Digital as have base installed business we in 'XX PCR. solutions a portfolios. going said have, We highlighted, was Roland very bioinformatics but solid. is very up fundamental QuantiFERON, that some new last going PCR, 'XX. We on our Sample Roland are and years,

features well believe good mind, analysis the QIAGEN more calling market more bioinformatic With our menu and in are testing growth NGS track 'XX and the with that More are that differentiations 'XX pillars for to for so to achieve in I I'm oncology to leveraging express that CAGR, are expansion. XXXX. as X% on testing growth in opportunities, York -- of trying a on we very in of X% HX, June to sales 'XX continue performance to decent growth X% New that our

expansion margin the for Roland

Roland Sackers

we Sure. of clearly nice will far half just going year. to half compared the first that also continue do can what the see while so also No, seen said, have a we in profitability acceleration And fourth third the of think continue compared clearly I quarter, do on just the higher year it's margins I in clearly into second believe to than to the the quarter. fourth quarter the

track on the said are We XX.X% to full at to we at deliver and what least year, before, 'XX. for make

is to it's numbers think think in the But from of as discontinuation you know, the to composition because, it is very understand majority improved that us the for the impact that do 'XX. important NeuMoDx. in margin the of was an I change of important not on do also I important understand that

which course next first IDA It the of the the we will will into would you come certain mid a built most that. might numbers clearly still have in rather I the know, is for so by that in numbers and a 'XX you of still going related or -- eat, like, because, -- this X/X, to of other helping customers year likely the the now be say, helping year, and is, things we half lot to which if our as the numbers, which continue to impact, topics on. amount, or is is of are moving be with done producing over year. into we're the There's

ago, with continuous of empower we efficiency now more but adding that which therefore, margin improvement all In the organizations not see up. addition decentralized that is what right now. what a which get couple we clearly number And improvement, quite we're and And halfway. driving QIAGEN is a stopping efficiency gains, having to continue program. a we that, opportunities of to to company is the quarters started across

So also margin improvement. for I of a year would next expect continuation

Operator

We'll our from Manesiotis Odysseas take Berenberg. question with next

Odysseas Manesiotis

us these on launch the share since a there follow-up. of since been what placements Firstly, many were have on of last then an panel [ And the Was also share you contracts. I launch And placements ] could you color placed give part more the a quarter? bit reagent and GI what acceleration have these could placements rental QIAstat competitive?

Thierry Bernard

for question. the Thanks

like So very first thing more is placements than XXX good I'd quarter. placement number, the the very all, good highlight for competitors. QX to a It's first performance for than of our QIAGEN more

customers, say the drivers. first the The and is with to QIAstat growing wouldn't the be can I remember, market important GI approval. offer U.S. meningitis. to minimal still very is specifically What U.S., in syndromic world in now it's And the GI competitive still respiratory, the for and menu testing.

be GI. for respiratory In and seen, addition to for panel that, soon, panel in the will mini mini we U.S. bringing as you have we are a bringing

and in York XXXX U.S. in entering you more the took we franchise this $XXX the for without which of competitive placement QIAstat, XX%. already This regions growing that here more momentum -- to were competitive now other the the capital XX%, see where we market XXXX. at thanks sales. the and achieve between and we key us should XX% even June, New a XX% Europe So or This message is versus region we create million across the revenue is we to commitment strengthen the is some are region, confident by -- is placement, what But well, a U.S. sales. capital to makes you for

Odysseas Manesiotis

one And on deployment. a quick capital

larger So a towards of is were there M&A you still -- Or bias buybacks? more year? as talking is likely about earlier the in

Thierry Bernard

I active are mean fronts. we extremely both on

beginning the active at buyback seen year. on us You have of the

for question shareholders I for a think us given at time. the is our is best main what

have a very solid balance We sheet.

billion commitment shareholders a taken M&A, once in $X to until York return absent New have of We XXXX. again of significant

that. to growth hand of increase same as see At We value option reinforce portfolio. on And to the our the achieve we still time, an is committed QIAGEN potential M&A are interesting portfolio. for our to accretive the M&A creation

Operator

Matt from with question Goldman next take Sykes We'll Sachs. our

Matthew Sykes

Thierry, out maybe to just level. one you high start for

I sort about of the talked QuantiFERON to growth the a you've that a year, as of the and you to thinking the little long-term the combination growth think hear how QuantiFERON you growth bit. And comfortable past that drive [indiscernible] closer to a continue significant that sort but if love growth you the I'm about QIAstat, QuantiFERON. of of just and incremental obviously incremental over portfolio about portfolio normalization How mix we to are assuming has mix of As as normalized drive normalization are it's mix QDI, that you with been to achieved of to X get would X. driver.

Thierry Bernard

you are in would what New you perfectly to and for right. the June. And in Yes, York refer presented question, thanks I we

believe data QIAGEN a reinforce gave We growth portfolio. leadership either and focusing and in continue in bioinformatics focusing in precise market testing share. we believe can back digital take QuantiFERON take syndromic where very QIAGEN tech June. we market meaningful And reinforce It's a shares, substantial or opportunities Insight, PCR, you to our we It is leadership. sample and Digital

alluded market. we automation new above Sample tech, success our coming years in skin in because have invest XXXX QX X Qiacube to Lyme to Lyme partner success growth, can to to in expectation, we until achieve a we And it's the market success X% conversion X% off we going to paid QuantiFERON,, believe U.S., the between believe now, has we the Roland test, XXXX, QX. that will the we CAGR the Connect it by strategy launch instruments [indiscernible] are in assay, of in together explained approved on will 'XX. our the difference by with is be conditioned driver behind and of and U.S. have success our

and we said QuantiFERON $XXX QIAstat, solution for X% a we clinical Then for to strong from a million said PCR, believe of target growth to movement have Life by to we X% gave Science diagnostic. base, XXXX. achieve very we installed we digital in leadership

recognized. R&D is of It's of versus gave We growing. But target PCR power on The in invest $XXX is are million digital growth. more going more in the people QPCR or the to a becoming a more market significant XXXX. field. NGS We by more and double-digit

just a plan very I we have said, menu for as precise QIAstat, expansion.

year. the identification portfolio plan assays culture it blood you their pneumonia. none in UTI, a If differentiated remember, their of very because Complicated has next direct and competitors or of positive

high confidence very and grow our throughput solid #X $XXX the In said that, be last XXXX, proves what we double million our the will QIAstat That addition by digit syndromic testing. U.S. in will system, Rise which to to a justify be achieve approved years, in we X for

transitioning Roland towards business. the change customers of explain our more are SaaS of that doesn't the QDI, follow That needs business. interest the We market. a we our

reaching and QDI is on what objective. growth double-digit ambitions, but million by a course, for still a consider $XXX realistic investing XXXX realistic we of So

Those growth. will grow. of not will be the parts portfolio our mix of doesn't that other That our mean

our very still confident in chemistry. in sequencing positioning next-generation We are

We we X is are in And activities. still this years how see very confident starting forensic positioning the in with 'XX coming our and

Matthew Sykes

want thinking by margin target of XXXX then, XXXX. Really helpful. from sort I performance that as margin expectations. And you early far 'XX? operating about above to to out you've end in base your of I guide progress but the And you greater XX% Roland, operating so here year, this on than your off revisit made that, just How June too the this probably realize of just laid given probably -- are understand we

Roland Sackers

question. clearly do I Yes. the same would confidence I QIAGEN it's said And a made is No, what before I see it we that good I high progression. 'XX. just also with that that to happen think at also very we a see fair that agree shared and And have going in you

surprised that So time, early. also, it's said, way way. that target you have some a revisit be point But to I positive at too we in as in wouldn't

Operator

next Research So has our in years. stock your Schenkel -- take stuck from Doug a question with Wolfe been We'll range for

underperforming been You've the a market the and while. group for

solid You're clearly rewarded increasingly this This the year. execution. good first a and not it's not one being for quarter, was

I keeping know with in you're said shareholders I can going material in the to anything you XXXX. billion trades mind, stock So to plausibly $X you acquiring. a to that probably return and mind see by discount

the Why competitive possible Like saying is concerns quickly your what I get going and do. and the at really yourself you confident are now? as sure seems not again, what Capital like believe guess bet aware If remain you in you for? if like LRP, buyback you what aggressive waiting at And just you as my this why with noise. more on you're of Markets are We're said today. Day not question that valuation? it get

Thierry Bernard

it's quickly, and right that Doug, I. could of York Once we one question another we best come and that it's New take always interesting can We never in a value an question, it the wouldn't 'XX. the Roland creation. quite again, we both, clearly and moment signaled said

comment, and pay after obviously, and say, the quarter is first discount demonstrating executing the at that I our of I convinced look price. that the share solid. continuing we extremely will off, to portfolio quarter On value humble would be remain material just your

pay might about how something Roland, execution address and efficiency, the on here. want it's it not on only the question. also off. So delivering But line could and but then That's I top will add you operational your to

Roland Sackers

our again, to Yes. $XXX typically, are XXXX very I in per the And started share less up just $XXX know, incremental have stepped buyback And you policy Thank million we that with it incrementals. X or years, with approved. we year. last started. more say incremental We we you, consistent now you $XXX another million as you million know where would since

flow, there's said, have up. our cash say also that would to I you say I step So fair opportunity would we us. given time opportunities And over it's clearly also for what

continue -- that we it's an way, a question. fair So it's if And opportunity.

appreciate I about that. of question math Okay. And building a OpEx. then

the good equation. But every quarter. through roll margin a won't it in I -- was variable You

off, NeuMoDx which be margin got rolling will accretive. really You

margin we're then optimization. multiyear we've the revisit not lot Recognizing got but kind couple of to for to have to anything about prospects I is this as a a OpEx talked maybe year, for to And while. an incrementals. You've normal targets, lean pursuant just things of how there going and last but math process think just be been missing thinking some don't this you we're about and we the of outsized and year into trajectory be Is through standpoint. of next just closer those than the to levers as want relatively normal going back next lot the kind speaking, about the levers walk from over a years I'm to the

Thierry Bernard

we to Roland again can take I us, I this the once answer. alluded previous think in one. that But both think of

we a back I are also already P&L you I strong time, compared highlight gave to June. if very competition. think for we have opportunities same would At probably we targets to improvement the the in that compare some

you deliver decisions have AXX not We operational network. when it's you mean site site rationalization that. of our like ] that, see better it, utilization but we that we proven efficiency, about just start [ speak about to on only NeuMoDx, Not we and

decision to the goods. seen German Diego for ] have You San effort It's or the Verigene took very ]. that we German and close Frederic, town -- on [ to cost significant [ moving on town pressure of

You tremendous processes, we purchasing have QX. on updated with therefore, investment and digital efforts in it's of cost It's than ERP probably activities. better companies that margin goods a many SAP HANA of of in seen the It's payoff, in investment the QIAstat and quality end-to-end evolution improvement fundamental tremendous did with contribution procurement. to

but might and well. first you then see. some have we Roland, have deliver you But numbers color So opportunities, gave, let's other we yes, the as on there

Roland Sackers

Yes.

of some quite things see, accelerate we going pipeline news. I Doug, are approvals well some less which certain helps things got on and revisit now it's different weeks, because We think to is as also couple which -- we clearly, us certain great of R&D now. we in projects, might think much our again, that of also, topics going clearly right more I thought. QIAstat or have X faster is you a than perspective, a seen, course,

would say again, probably the the something have the as point needs that, the rates as some ideas, next of Matt we might seeing capacity some certain that. on quarter I turn improvement in have to nice said, it's and we at if sure. accelerate we is I XX%, great will, and year question we them before And also see from for fourth will to R&D confirming said, also we So back margin going and I time, in heard

balance the us an for keeping also topic here on is well. trying So important as

Operator

Aisyah We'll question our take from Noor Morgan Stanley. with next

Aisyah Noor

of today? ]% how happening you was My this what view business, communicated XX on at QDI the what And your subscription shape you low is the QDI ambitions sales portion I quarter. subscription first versus think Capital And [indiscernible]. the but accelerated licensing your out called is one single-digit in shift decline around a [ Day growth where Markets for the versus to already does growth the before,

Thierry Bernard

biggest recognize want. the question. we our an for It It's thanks. happened the has interesting It is trend solutions time. way overnight. volume revenues interest just customers, evolution the changed customers, It's and The not Yes, of this the customers, especially we a contract. not over change listen [indiscernible] decreased. they our to It has doesn't pharma the the

QDI research point in softer of academia a look you those it is academia, up and but the the was and performance clinical, bit -- as research days, well. pick growing. at performance If bit it a a very will because It's much softer at

to in or million our to the our It's also listening we long are thing model portfolio. not the to nature therefore, think, is I changing 'XX them. not customers their contract our achieve interest our do, of So story it's changing. the accompanying of evolution, $XXX short, the by in good And ambitions volume

the We highlight. the never to not the in this a need is our something It's compared we case profitable also It's X. business But QIAGEN. X. number And accretive that also we to to are rest forget, are It's market. of number for competition, profitable, P&L.

Aisyah Noor

second Okay. And -- one was QuantiFERON. then on on my

So keen on thoughts to updated signing a secondary get your partner. distribution

terms Is hurdles the McKesson. like partnerships new right this because to with what got Just not signing you've the licensing you, foreign would Lilly, not Astra, It's it a are partner? before. to on partnerships be the right instrument, done biggest you've

that talk would you your be considerations through right. could there, If

Thierry Bernard

have we times, As said are options. open many different to remaining we

commitment we contract, add efficient. The By partner well partnership to to is be have are options -- the in need of where that that We highlight, invest. and in to a partner together creation, DiaSorin to base criteria operating with installed invest works and would has one want proven also that willingness now real first the market geographic thing be the review be we of creation. new a DiaSorin. demand we is show with right We would into partner -- would-be to per to business it region important

QIAGEN. one On we successful partnership. a hand, are many best of the at moment we at the basically, in have So words very

take potentially partnerships. the hand, options see. have other We'll On we to tell. other will Time

Operator

We'll take America. Bank with our of next Ryskin Michael from question

Michael Ryskin

I a just little follow think has on up on I sample bit. to touched which want prep,

market about talked growth. you Just

that's want the You've bit business of talked call on the outperforming in for instruments that But this you performance maybe impacting market important that can terms just dig more an anything that year the demand. of part and confidence reaccelerating just or are CAGR the a on some still year, relative to but clearly, that out just years. you're -- in one-timers I about little diagnostics, to whether in this of broader into more that it's

Just help bridge single back digits. low that to us

Thierry Bernard

for Michael, Well, question. as thanks know, the you

is new EZX what upgrade see X now [indiscernible] in X a years are means to mix market, or shares this is us you bidding have but current EZX. of with Connect. for the manual years, market taken either and a X clear base have instruments. installed X In years in and automated strategy both. features base. X segment in you [indiscernible] the half, launching for we the automation. of to became seen a coming both years, What installed the new on on You going we that better upgrading last last know have years, our automation of significant current And became

still upgrade laboratories of is the I all to flagship [indiscernible]Symphony over thousands for [indiscernible] that you Symphony. going are world. the instrument We remind

by add at benchtop launch of in what new New more in of JP give said We We the we details probably XXXX. much plan become this disclosed in And of also going that end would Morgan, [indiscernible] the you features And York. is to with a throughput that we solution instrument are where enter we will segment high Connect York tech. throughput smaller system. plan new to more the new which sample system a a launched will New is

So growth. we are on results And growth, have shares. it's on. Yes, if based but it's look back we coming already market growth X% you for existing the our at X significantly automation last quarters, on X

low-throughput slightly we or are either JPMorgan. our and accelerating So see system not that present momentum we of why easy we volume, don't going customers to even throughput at we because offer could the it continue that new high solutions automation new in will with system

to giving York. in gave delivering this on growth, us leadership New market So years, yes, CAGR which be we numbers around above the what our confidence coming will you be the probably will market is X% for which strengthen we you then and the gave and

Michael Ryskin

a useful Okay. bridge. maybe modeling then on And just That's NeuMoDx. tie-up That's helpful.

wind it down we're been the way we in I be you've a will mean, it to to than bit there still how the any like ahead Is just of a NeuMoDx bit But to think next as look XXXX, the could sort model expecting a down. timing about very that? just of little X% be and you're year-over-year. that that Or about I right? much size year. contribution less, consistent more from winding headwind little realize I that.

Thierry Bernard

are call we 'XX. -- we not to revenues it Yes, are we still invite Yes. that QX. Yes, Again, the But for you will have thanks. and well executing is thank some you highlighting I the way in see QX for that here. on

be see in of anymore the revenues end shut way definitely Our on of should therefore, you the QX. Anbar And XXXX. no HX is probably in NeuMoDx it at down will sites for NeuMoDx

Operator

Woodring JPMorgan. next take our Casey question We'll from with

Casey Woodring

One Roland. quick one maybe for

of XQ, but growth instrument kind if instrument then step-up stabilization what embedding any So was was have continued or revenue seasonal I one flat for down sort And of you're follow-up. Curious in there? sequentially. year-on-year taking sequentially you're assuming

Roland Sackers

also better in in if there here have mind from believe clearly, particularly No, that of that is in sequentially the good is quarter that growth. -- slightly be clearly one headwind general terms a Again, actually the factor, NeuMoDx. fourth instrumentation will question. We do also you on

QIAcuity will again, particularly, that, quarter negative, help than some see instrumentation going others overall, stay on being are the and Nevertheless, we side. the helpful before. it So better QIAstat, to but

Casey Woodring

helpful. for one Got maybe And it. Thierry, That's you.

your in capabilities number a solutions liquid talked recently. biopsy new bit You have and of little a launched there about

biopsy forward? here over Just moving if how you're way thinking curious liquid consumables the any quantify And about growth driving growth really that application time. to contribution here there's

Thierry Bernard

one a you So I QIAGEN the of see is way that in liquid invite to pioneer. biopsy

technologies said CCF to market company biopsy today, Our good just not the X And as again, the liquid CTCs the penetration fully I is perform are mastering XXXX. we only key liquid necessary DNA, exon. of biopsies,

in your you like Guardant mainly are is by positioning It's because solutions, QIAGEN in on many in but this to bio-based more to forth. a names others Health, And enabler the second, enabler. liquid enabler their are exposed big solution world Natera change bios being have oncology. and to biopsy on so perform we downsize our oncology liquid being And and where in necessarily top the using want of position, the use And providers, an solution but insist smart so of application, and in beyond can market, the an coverage more is a liquid that investing solution. reimbursement, very not companies we

beyond added because well. will also, also consumable around Sample and where we our this also quite You much New pricing we generate instrumentation said in invest as liquid York, more is we biopsy. will tech, have sample and as high -- value in see tech mostly can value, portfolio in

take positioning strengthen. already the to that leveraging that but from, that's are that So we want want we to we

Operator

from We'll last Blair. with Andrew question take William our Brackmann

Unknown Analyst

earlier week, this a the broadly. been just key Maybe U.S. here following tariffs has election of just sort topic

policy just I you're global on guess, So any is maybe of we've of sort business. about these impact exposure a of QIAGEN then thinking the business directions potentially of how about. been sort there? the hearing And picture, sort in any set running of bigger way Can some us that light recognizing level thinking that about very broad you you're to

Thierry Bernard

can the two Europe, that we the emerging I also global between would company geographic we presence said, is that, the is extremely you countries. but of our the first the question, as and this William, say are in take you, balanced us, Thank company also thing one and a U.S., obviously, of strengths

a strength. that's So

fast it's Second, very statements. to we too believe that some take early

the Obviously, very we is first bit our with we R&D we health all, is see the the commercially, and concerned, extremely as What to listen We'll clear and main important, going innovation and Being the change market premature. that. what for built a is but and candidates of also far to health are platform, care is U.S. the there It's far, as for it by care way happens. no U.S. in accordingly. still present is in manufacturing model and world.

you but like to be and would coming would need and some we a rest, to what say I for color the that to policies add according months the For to adjust constantly this see actions to and Roland, look our decision might at stage. that? made, that's

Roland Sackers

in Along also the U.S. places And XX% having sites corporate concrete we're elections. these the to a quite before the of lines, ahead a I as having of said, couple revenues were the do the are [indiscernible], going the which the with some and ones straightforward, in significant and facts But very takes in there's clearly U.S. think probably side, in clearly details to obvious right? are is that of the it's time announced nevertheless, local some which no more programs, on that happen. tax around of it's

There's liability tax clearly a corporate also for QIAGEN.

that President means to the expecting that quite Pillar is agenda happens midterm you -- what we change a bigger to going were I'm X in corporate globally And because whole as with So see developments rate rising we sure know, well. have as also what rather the as there's Trump, to question that plan tax now, well.

answer on X directions. becomes think no there's there always but that, I questions. final all as Tariffs, know, go do again, more we in So

something there say would just companies one site, to and I is is in wait affecting direction that is to tax side, another going the to reacting Therefore, globally that never adding if that nobody is details. have happen, that. for you any There's

John Gilardi

hesitate want Thank to that that, end your Dominica I'd call and any the With appreciation you to Bye-bye you our reach out very of please and And like topics much. address. not to you for me Okay. questions or express do to participation. with all to comments,

Operator

and conference pleasant Ladies Goodbye. day. call. you. this you Thank and for Thank the gentlemen, concludes joining, have a

Qiagen (QGEN) 7 Nov 242024 Q3 Earnings call transcript