HSKA - Earnings call transcript Q3 2021 | Heska Corp. (Restricted Voting)

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Heska Corporation Third Quarter 2021 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Jon Aagaard, Head of Investor Relations. Please go ahead, sir.

Jon Aagaard

Thank you, and good morning, everyone. Earnings the Corporation's XXXX. Quarter Heska to Call Third for of Welcome

with we financial we a make being Executive Chief Investor Officer. on We this Head And and to is Heska's today's Officer I Relations Mr. the such this company. and statements. call Wilson actual I then could we statements Heska. and uncertainties detailed that As performance Catherine need unknown conference those Financial the Aagaard, and recorded. the President; reminder, results Grassman, Heska's to Kevin Prior of forward-looking have or to to would and during Wilson, which questions. reported, Factors am caution involve different future and beliefs and writing in or in such Jon current certain based Kevin, by are cause at of expressed us will are Ms. to Chief morning, Heska's before Grassman you course like contribute forward-looking will provide results to materially over statements call to you the discussing that be cause may risks implied regarding open turn call, provided expectations known intend performance that forward-looking and any any differences our intention made, and surrounding the and details Any or quarterly I time that are In will of of statements future and does as results from with events our is to please update references this the release, not speak the may GAAP release, quarter morning's to of the SEC directly annual results, earnings forward-looking to and and third obligation which elsewhere. by measures Corporation's filings our the prepared reconciliation statement to XXXX, Heska Also disclaim accordance A and [Operator that most the they the with in to non-GAAP or also Kevin website. being is our to specifically Accepted be growth equivalent not time said, the now reviewing Heska Principles this we comparable to discussing all measures Accounting of Generally measures section financial certain was statements call visiting these Relations reflect period and note, unless XXXX call, compared occur GAAP. after forward-looking be pleasure will or my found Wilson, earnings it any otherwise that Investor in With over President. turn made. refer financial in CEO Instructions]. during Heska's events such Kevin? to noted. growth only remind

Kevin Wilson

to appreciate and lot I in. We've Net-net, everybody. Heska this with got good scorecard had you've you're a a day, I'm taking ahead full jump just going time got so that third Thanks, to go a financial morning, mixed and truly. morning. quarter a with Jon, know us I and the cover, great right

on I challenges in the balance. period, we but we that know CEO quarter great, well every worked was through supply did except Now, the says for

few vaccines the unpack million $X.X for miss supply sales are computing XXXX. for let's a time new fourth and delays to for third our So of chain the of products in the line of mirror. resolved as our in digital the in where have issues in raw these believe in $X.X quarter. about international launches weeks to about caused In and third affected we million quarter, issues rearview of been tune believe the components these are we contract imaging in prepare us we therapeutics materials radiography in XXXX We in manufacturing lines delays and quarter, and

side overwhelmingly through follow promises. to ledger, our on continues positive Heska of the the On

to work every a few almost in as take AIM the but Catherine we full of XXXX to commercial the first, will like conclude detail is scorecard. Element moments success by encouraged detail shortly, financial our are release. I'd the metric now in goal scorecard balance to We guidance. within major strategic and Up

Element Heska is new of those transformative at urine platform only artificial Heska, first the Point fecal vision and world's this to a years fecal and had intelligence for urine and for AIM For the ago Care. microscopy several analyzer. testing

proud at and of competition rebranded with settled scale testing technical weeks I the While utility several am postured Heska and milestones. Heska for limited general release these and past their teams and as platforms have full-steam-ahead reached human so for manufacturing repurposed of innovated. our difficulties, efforts pivoted we

docket with user Initial We have the on installs XX fourth quarter installed. have and surveys been feedback for this about XX already great.

and in Our running manufacturing chain up for that in trained, lines are and of and our are are England place at goals supply well supportive and XXXX. volumes New teams

done and continue XXXX in meaningful now We being anticipate contribution opportunity to in Element manually for year. financial dollars per beyond AIM already automating market millions of from a

PACS. is and to point-of-care be I announced wanting PACS is information geographies. and And picture of demonstrated can't week's within and Germany, PIMS major diagnostics the PIMS has in VetZ software, successful hope this better without software, than expand and new a with strong Heska and read and X,XXX most than going of of very innovate, PACS for and all a or fit Heska logic and VetZ in hospital VetZ our leader over and deeper. we archiving communications business simple. PIMS; services highly customers software of most our space advanced many the larger that Heska sales connecting clinics positions as information, PACS especially summary middle, is the VetZ This focused, we days, clinical aspects strategy in for pleased invest, customers, associated is position While many force Up Together, it. it stool experts the decades. markets. most press and to customers, competition. cover in mega To great. thrilled sizes all X,XXX has for strong that you and early countries. for very and to acquisition you'll in market, leadership and leading management all-important key more demanding a geographies. is in PACS advanced well. the scale. find to stronger VetZ, release, review, of and VetZ, puzzle fits the or more The of team that with where leadership has encourage and and Together, key practice segments our leading leg Heska but expert piece already of anyone a this PACS. Diagnostics. subscriptions still PIMS, next Heska this are are the innovation with is we and In has PIMS into than I I development, PIMS, all-important at and are the more geographies all-important Heska VetZ launch, most. German Heska the large field multiples wonderfully has enters lots is major, without connectivity, important leadership support team investors much is has bond

Okay.

the let's scorecard. to So continue update

multiyear Those stated to we baseline the and product our while have start As geographies our were end win streams of continuing to goals, business. we reach met revenue have and served our customers, Act our them. X, we in doubled core

the for at trusted We that and decades. have chain. center a to business top value stand subscriptions the the veterinarians us We innovation very business of puts model creation

generating Our cash. in are we are sales assembled stack operational our dollars of many margins while win. and growing, full products invested and growing, business We've directly a have to our of geographies millions

many We revenue along hundreds collaborated and technological in have invested to and indirectly more of millions minority smartly technologies research millions for an the of developers of dollars early positions of and millions partnered capabilities innovation. and and technology invested tens directly development from in future. teams, acquiring with with in additional We've leaders dollars benefit of tens

proxy smart All of investment. and development this for research is a

we these also COVID-XX in captured the financial this metrics of growth While stepped-up succeeding denominator. levels past through months have initiatives, new our XX as strategic

as accomplishments, year. normal think remarkable. goal see on I our that while at and now our very that's fully this well-positioned goal scale going you line And it's rapid are call nicely these of scorecard $XXX of $XXX Act XXXX million subscription with CSV will to our we contract -- so for XXXX we XXXX, indicating on and XXXX Investor base we we top million full sales Day stepped-up is to headline tracking year reflects in win such sales subscription on reinvention year. XXXX our far our and and this schedule and with grow presentation entered Look, our upcoming Sprint. in forward for to our with achieve $XXX headline And stack an full will update million ending off our value leapfrog good million success X also We $XXX to that to in growth,

minimum XXXX we $X,XXX implied customers we surpassed goal of we and For $X,XXX privileged in belaboring well ended bit example, by $XXX because have North XXXX always be we long-term our of will of of of in average excess it we clear bit well finished we doing some XXXX month all that our it. is plan, will finish with with this million And monthly the per of with excess not CSV, of well That's of in year. million well point, are of capability July we finish American XXXX surpassed July year. our and and because XXXX target been but this We to $XXX.X in our our target of doing this Without are shown XXXX in $XX partnership them. growing that CSV.

for of those us have periods capture We with of returns. that extended are substantial are to the time and thankful for glad invested for investors support

doing keep you that. think I should

thrilled XXXX We with years. growth my for have And beyond. both and development expectations But strategic while business yet our past year in these X the and thrilled intrinsic and to and assembly I'm I XXXX is performance, substantial even underpin with next strong Regardless, they best more optionality am our opinion, my created subscriptions come. accomplishments. financial value

our for our we ending update reasons. many call, on strong call normal full I While scheduled outlook will year update XXXX a anticipate our during

those few Heska, new to touch moments For a them. a to to take like just I'd few of on

well-positioned sheet to play wonderful Our has within healthcare multi-decades is pet experiencing culture and that us a offense space growth. balance

domain momentum dedicated was and of diagnostics just and for of and we a offering informatics and to family we our and assembled unified which and manifest track all expertise and record accelerating. We have their housed reinvention. serve a work Heska so, scale XXXX, has doing Building the XXXX, great to in at of needs. directly value, things within long Heska veterinarians capital We required on relationships hard do win is the great have have subscription to decades hard transformative, hand, in

entered of subscription. the Element incredible an manually diagnostics parvo FeLV, expanding, many Point European launch it's that otherwise. space portfolio sales and and single-use line, service by market Heska hundreds for and With $XXX Heska our has many has of the of because the Heska Heska Lacuna telecytology entry is in continue the in laboratories in thousands in fecal means dollars telemedicine FIV, geographies. rapid global Heska to expand acquisition to with of scale of under our strategy this needs practice and is heartworm, around Care leading Heska as for and Biotech reference acquisition team financially accomplished What to products commercial all the software year. of what subscription driving of acquisition approximately full management our that Italy to others, with of of in the world's our possesses consumables XXXX. in and in enters year refreshed through Diagnostics world begun Germany, technological cycle XXXX in is this for and at veterinarians and per occurring and AIM only trusted digital with of has the diagnostics a a in point-of-care this it go far plasma, an address invented upgrade launched next-generation September intend and of XXX-micron we specialist VetZ has market important each a market the urine fantastic acquisition February assembly. Heska already competition through industry's position family its leadership year, this blood radiography available needs this has tie week market into strong year. to moment the the a wonderful BiEsseA a million launch to and best into that leading high-definition millions of July has entered performance of wonderful. has preferred with together. a tune information with has through of will this point-of-care market take entered the Let's analyzer Laboratories Heska with the fully address platform of diagnostics so and year. years auricular made And other share

exception of is by $X.X I'm this quarter, best can about tell in and of accomplished chain as challenges the strategically XXXX the so the I supply is leap team With third our discrete largely million solved far that unmatched has pleased. forward in industry. anyone in What

slice grow as of conclude full and pie capabilities new to overall financially, In will expand, markets. XXXX the also integrate, invest while across Now attention it. bring multiple well to in geographic we scale getting our and simple. will doing also skills full we bigger we It's our bear this, a subscriptions

we're it's it. makes but the always stuff fun, makes and partners we finding do doing, that the them the supported worth competition, it since work, bumpy is employees, delighting wash, problems, that honored Look, honorably, in beat Sometimes grow work. customers, solve markets rinse, winning as hard and to it's customers, we're thankful repeat. and goals process, have our then This glad little opportunities to it shareholders investors do and win to XXXX in and we're business us and a big setting

work lot for you not lot, of could about do. a I'm to it's and or I was the that that's more really get a with subject it helpful. I hopeful that than I paid that's talk usually but on So calls. to this our you hours, words you some

my So as conclude the to use today, I about I I'll just words that think remarks I last used prepared how think same quarter.

results and We activity, are opportunity. a whirlwind positive of

XXXX first The been quarters fun. has of X

to detail over I to before why, could rest and to be I talk the that, how think we move to of for turn promised, and going I XXXX going Catherine quarter Catherine? our and will as I'm hours to of call I'm do about fun. time. all but XXXX Q&A not the the

Catherine Grassman

XXXX. take financial third quarter good and very you full turning pleased to Kevin, year quarter despite you how Thanks, through chain challenges see delivered the supply in out. morning, to a we as fourth update and, strong Heska XXXX I'm strong and quarter everyone. a quarter performance results thus, and our some third comparative

which this Increased product launch grew XX.X% North strong third our the Imaging grew the bolstered comparison. in the majority Heska of by quarter the the Consumables. note, revenue recorded in resulted X.X% of in the X.X% growth refresh revenue U.S. continued Canada. and over growth very quarter. in and Of for Lab Third was pricing Driving point-of-care brand of utilization achievement America segment, XX.X% the point-of-care

to Our chain and flat -- by International offset supply were results Point Imaging care and the segment of Lab other prior higher mostly revenue were challenges Instruments Point-of-care year. results PVDs.

included sales, healthy prior consumable year, to down slightly volumes. Our while

long-term for to been contracts. this subscription share X- the via growth, revenue margin demonstrated As in our benefit of the a exchange portfolio included U.S. we long-term we unified transition both X-year to program, relationships in of profitable our cost customers The and success and better, to in products program, more has expect

This under portfolio excellent consolidated the recent increased gross XXX Our Despite lab from a conversion most customers revenue, from points basis new low basis gross profitable International is XX to subscriptions The follow-through contributor XX.X%. margin their gross of improved prior to the segment to accounting this approximately more margin significant points for XX.X%. quarters. our was margin equipment drag the to subscriptions increase. sequential

bridge we acquired opportunity As America was XXXX, these there to the assets believed close North in margin their we margin. to substantial a international reminder, when early

charges drivers the synergy. margin was points margin solid short-term toward segment costs operating Higher well work of basis and achieve cash approximately gross compensation to of to OVP material incentives as attributed XXX million. as to declined achieving a of delivered third in objectives. raw America impacts. other to Operating the the $X.X which company XX% We mix incentive disruption basis X% its because The due primary well plant the decline product as North lines our as negative to largely of quarter, strategic continue were XXX points, expenses continues in stock-based some as including increased supply PBD idle

due costs administrative and consulting compensation. were and onetime stock-based costs related and general acquisition declined XXX other the Additionally, other onetime margin and professional costs same development. higher business and and for both excluding increased to points basis services to Adjusted reasons benefits the EBITDA

position million liquidity of expand product investing internationally. and plan strong in a we strategic our into maintain both domestically to In $XX offerings, acquisitions quarter, over cash approximately continue capital, as the deployed and $XXX we with in We new furthering million.

turning year and expected to full the Now results. fourth quarter

As call, already supply million. Based unexpected on communicated chain we as of the and part is X as including of in of exchange, outlook of range, to more result us XXXX disruption of this low discussed our second experience of resulting million year-over-year approximately end consolidated quarter to puts at revenue date, growth an presented ago Kevin likely $XXX $XXX earnings year some multiyear foreign year factors range such noted, XX%. outcome And the our the revenue only month. this ahead the X

XX% provided previously XX% of ranges year. Adjusted growth all for in the And questions. like as in with reaffirming to your that, open consumable rate call for are would full North is as margin EBITDA excess we still America excess well of the expected. the We Operator?

Operator

Instructions]. [Operator

first Scott from our with Chris question will We JPMorgan. take

Christopher Schott

for you. I have two just

some timing to And guidance one clarify understand point-of-care second you are the trying on we last year-over-year. was time I would was consumable of also and range. just -- equipment factors been be of of update there. just appreciated. relative the it manufacturing purely chain healthier they've on that the were know there consider growth. gave talk they flat with any results? as other just well August? placement showing about some lower you should contract Just then of basically the -- supply guess or in the lines quarter, as some international can I'm just to end I your dynamics First, think, this color I there based FX, the to the

Kevin Wilson

okay, Can you. hear you me thank Chris, guys?

Christopher Schott

I you. can hear

Kevin Wilson

Great. Okay.

ask first was somebody thank would the hoping I question, So yes, you. that.

I'm to So X minutes it's worth to this, probably X but or I going think take explain explaining.

is pictures, of it America a process the we're margins, XX%. level. look in garden. I'll business the we bought I land we We towards North with those grow the way me, organizing say, We're the substantially at -- bear in bought plane. think I with since it, So flower I so said margins a would

And like there going XX put you're some trimming going to with that new flowers and ones so flower you are weeds you're and interesting in to replace for some ones to times, X in less you're old flowers start the garden, going some pull years. the and to

So rationalization we of sold our to moving part unit that's we're referring low-margin products customers from can our more effects products. the as of profitable. each with consumables to higher-margin of with what our to mission of we share on means consumables that cost keep the kind standardized much bring savings The customer the while

it but we higher drags what for happens line of so same limited cost the revenue gross we savings. And at some the share is the because on top get volumes margins, unit time, a

$X. then a And say, way is, now look let's gross for XX% gross at we've margins. margin, I a rotor we rotor developed with it the with $XX So sell a XX% would

our a the savings offer platform, hey, sell new and able XX% upgrade you we're customer, We're and rotor. customer the going help to go we that we to rotors for on you we say, a $XX. can to so you to And

back to ahead XX% realizing going We're we're customer. $X that gross go and Now with share the margins.

$XX.XX that to $X to as going still gross only revenue $XX. we're rotor But in customer margin of is in generate site. to we were opposed every customer like $XX So uses instead realize in going yesterday that

The the about around revenue dampened pet gained XXX% saves test. saves while that our family over probably vet we $X. $X So XX%, We on profitability.

you you're hundred converting pick happens -- that margin. as converting, scale, basis a points that's as so of we're at And gross couple when in fast that's up when where

some And gross at so, same the money And but our is a is gross margin customer, the if to you when which share way, part grow better really, and and going for the we to right revenue the issue, time. we want again, of ahead look the want of customer of line to as margin. and right-of-way a clinically them prioritize go also save top job mission grow revenue, do we're always with to a there's at

but a I oh it's It long that I'm that just people and it's number great. -- at important answer, sorry, wow, I that's I at should really go, God, that flat. So and a one was my because be think flat. look number go, look

kind want about that to just You of right. get

Now, to and when want higher if our get all subscriptions, just I prioritize and platform. you that it's to you growth customers the happens, those much can bed a gross but over outsized faster margins right-of-way get in -- addition issue wonderful, that flower getting in dynamics product again, the I'll

that calendar that I was called any chain things, the other with there's of year $X.X Catherine, you quarter. the and Catherine And don't or of just to the at to I any of some get ForEx think the lower that add back. out. question second the want the run I range. And know, We'll out for end if in full out million we and think really Chris? third then supply the called color say guide I'll about

Catherine Grassman

good. think that's I No,

Operator

And Westenberg our with Securities. David next question will come Guggenheim from

David Westenberg

The consumables but of ask to question, a defend little did this me. I consumables North pointed a you might -- guys American miss bit kind -- fair think it's I going I'm of for here. to ask

you've historically, a as market kind share at of number. of said look this think I kind

and as as like X things it's anything be that you of question, think we was veterinary PIMS we an to like realize market. a trends read And it's so you quarter there, that's both but use but of a a guys looked IDEXX a to all that looks -- tough number to success traditionally, in are terms we have seeing example, quarter little It being we like Is would in above there de-sell data. share probably gainer. data, of Now volume revenue and access it. give can you more pretty I position? the bit there market opportunity X defend that share think market I I of think apologize, you into are where pointed veterinary it

Kevin Wilson

start. feel has I'll So getting about product our market know, good probably every We information. We are. additional share. We who's who's Catherine know subscription what and subscriptions our a month. on

really don't question. so a And it's share I market think

XX.X I guiding. where think is Catherine right around was

haven't I at a wouldn't but think than in that little detail. our earth-shatteringly, bigger I competitor I numbers better so say their did looked

So don't say -- I yes, disappointed. I wouldn't I'm

it with fourth Catherine, right for we the where think I what year. quarter in rolls was I think, the up actually indicating think to

So want Catherine, do you have to anything you add?

Catherine Grassman

was oddity see think Yes. from tend typically to seasonally spot COVID. a Last on. mean, an QX to also every No. think slowing I QX with year I I we that's year.

I think our major competitor sees the trend. same

So...

David Westenberg

for I'll weight of have get And that? consolidators consolidation. consolidated -- this that market you position going people No that Do X,XXX size percent from going some you did And Do punched North in uptick. think think massive do consolidators be I right. a problem. then above be We industry your terms would of your above and And acceleration you in to mean continued terms see weight an tailwinds of you which hop with your America. back practices? you in share comfortable with All consolidated to are your to one. continue clinics XXXX, feel after queue in there's punch for in

Kevin Wilson

really couple nice So David, a We've consolidators. got do. I of

majors, Consolidator hospitals, say. numbers. I great. I'm get is think And and think but B and let's fair think a use is consolidator to They're So time, A going the consolidators just ones. round good. of participate It's X,XXX, But XXX, we got smattering they're their really are I B C and XXX we've And is over share. those acquiring. that. smaller we of to A I doing feel very acquiring in competitive, organizations And

So have yes, bigger out, consolidators, that's a a the as market do rate. you consolidators so yes. higher like as rate, the than trend faster because, a we general percentage think us, get and that pointed think just we And should our help we favorable at we

Operator

And Ben next our Alliance with Partners. Haynor come from Global question will

Benjamin Haynor

Can okay? you hear me

Kevin Wilson

You bet.

Benjamin Haynor

for me. ones quick of couple a Just

convert think happen than the instruments the some have. directions? out get But swap that maybe we your acquisition, to of is software forward. easier over the that it of to you easier what's to and sense competitive to front on a to numbers, is easy would you or going VetZ kind somewhat harder someone it's wanted the a suite. you just that what can how what both give or expect accounts But X,XXX sense should I in they you have, I it of On mentioned of mean, can maybe cross-sell imagine X,XXX us

Kevin Wilson

into XXXX other always to to VetZ. were the I coveted management that's harder One right. There was practice switch think somebody X and have I when German their was get assets that since It's Skill, back the I space. vet software. got

to of get them I users, wonderful. things think several their finally on with analyzers to a really be Obviously, tighter direct basis, and can I've a a for questions. integration of those it long so the we worked deal. answers with big is in be VetZ -- place time, And types will reason partners And very is part and

solutions wonderful. point I care, those think to things of and is other of type do trend labs and ability reference between the

wonderful. things moving mobile is think to I

their technologies directly think I only some things with thing, VetZ fulfillment pet think the I fulfillment, And owners extra that. to like us, so and veterinarians adding help has is channel sacrosanct. through that It's families pet think that PESXL, value we the the wholly veterinarian and and is really like support. great

or done if proper -- be management to [indiscernible] capabilities. management us system So doesn't not up the isn't answers also integration current immediately. those solution snuff system I they're entire practice accounts out where It their or levels even things for think can offer competitive of switching maybe questions in

universities for the deal. from to be These hey, some can largest those great critical. workflow think, position they've our business really, is of of the hundreds and in really the whole I the I enhance take and experience, workstations think, strong and have of if world, with so guys that the those responsibility users of I we the is hospitals And business our And super some to spaces, a I hundreds to biggest in best-in-class. footprint able that logic think in bigger hospitals. piece, And It's the in specialty say, really will developed logic a certainly the kind is something not the in reputation hospitals. biggest, world think, and

So great around. don't find all it years is XX to me, the I it took just negative I other happen. a know can't can't Other make that, I what that, than a it's way than negative. find

Benjamin Haynor

the Okay. it from the And VetZ or about off swap-outable you just the mean Or more is easily, thing walking is of kind software, solution? Or an the training when the buy-in cost it to is of can solution if get are from the transfer data things relatively I a personnel? to logistics account? tougher different old software these a or

Kevin Wilson

competitor has are data and solution tools conversion technologies conversions every major practice the they've done And VetZ software there. just extremely with So that about powerful. out

think whole competitors I really the substantial refresh think our I a really, is cycle. for in market, and agree,

the more seeing in space. PIMS So you investment are

that's converting just The and does think, them happy. highly barrier. don't to so and experience trained, teams, of in always platform people their wonderful good and is German making people, issue, for of so very is VetZ a years like is having better the converting good I that. a thing an XX precise providers converting have And super terms where technology Workflow I think data,

Benjamin Haynor

acquisitions for elsewhere. That's these of helpful. on that me lastly then And Okay. some made you've

On the those of when give point-of-care you us Italian hitting rapid any color you And do can diagnostics, there kind additional is envision the on the then market? lab?

Kevin Wilson

Yes.

working XXXX. the things. bundling the the lab, July, rapids and see do all going And we through it's and well, it's those So days, we're early Italian of types market opportunities hitting in and

XXXX, since opportunity out. I call It's for I'd think. think and It's learning been It's us. I small So around it lab. a scaling a

that learning veterinary think it's really place market. Europe's a great think, continuously while I and going it's oldest to well. servicing it's good But get Italian reference lab, so operating we Northern primarily

Operator

We'll question Sidoti Company. take Sidoti from now with Instructions]. Jim a & [Operator

James Sidoti

you and inflation? the your quarter in not you supply first sign issues a company costing You're for any reported pressure. when do remind long-term you contract with chain just the that Can me, in some has customers, there escalators have

Kevin Wilson

We've do. had in always had since We've the adjuster we XXXX. XXXX, always a CPI programs in we began there. So

in we increases price consumer contracts, above under and price So that, about exception periods match with we where that don't is the the which our at are of X% index those generally point above go CPI.

have feel those, So we increases there. And most covered in supply basis. cases, aren't price seeing generally on We contracted a side. the we on fixed

James Sidoti

Okay.

rest cost some just must mean you increases seeing be I of labor like So world. the the

Kevin Wilson

Yes.

that's think not I to Heska. specific

everybody think that. I will see

So yes, we're not it. immune to

James Sidoti

ballpark acquisitions sounds on reference you've up then to they that and Okay. into running. what leeway us products But single-digit from get sense of like to the -- some know we don't want details point-of-care Just and get practice tens on guidance management give can talking lab, most look you annual some but on done I like these a the revenue you think millions? or of give X in And the deals you a you it increased X will contribution do cost. us are have the software, whatever, the All right. millions, recently, once pricing absorb

Kevin Wilson

Sure.

of could business, It's you one PIMS on a so only a $XX go-forward profitable starting kind as our the as business. basis -- point. annual additive million So a VetZ, that the an of the think

as get specific XXXX we We'll think, of terms of acquiring But more the $XX piece. just of it. obviously a million did whole about add, could about in well size it that's I think it. you in the but

on The the terms It's and certainly to fast that a revenue very market. in $XXX relative small manufacture. really how And other starting lab business, it revenues. that's none Italy, two, and million our none, and virtually we the then the Rapids at menu really of reference get market, that's we're in just we other about

to I one number want XXXX we on that a don't for give So until put guidance. XXXX

Operator

like I with take Wilbur Our a Raymond It come Elliot with now Chris JPMorgan. from will question apologize, from we'll next question Scott James. looks

Christopher Schott

scenario guess, so and, over analogy. we continuing a convert margin just the kind care, play savings Just a is higher I of XQ I into is want of phenomenon a more account appreciate just be way for you accounts, international as growth might quick into basis, earlier but be cost should to should on of about quarter is lower, some XXXX the for a the improvement sales where go-forward one-off all kind quarters. of towards though. this offsetting like I had thinking maybe customer the little you? representative trying that next a kind this of that? gardening I of had some bit gross color the we kind dynamic point think be the -- thinking get about what this that of sense more follow-up Or margin on the a with out about of products to sort just but this few much conversions skewed these If maybe of just

Kevin Wilson

of sense it's for but that built it's not of couple that's guide has think It's I another year. quarters. of Catherine the My kind couple years, into given again, is quarters. And another the

Operator

hear apologies, we'll my with James. Raymond And Wilbur Elliot now from

Elliot Wilbur

Can me you hear right? all

Kevin Wilson

We can.

Elliot Wilbur

there. happened what sure Not Okay.

Just a Catherine. for quick question

a obviously what outside the International around you lately just levers then could been the of market If and are obvious of in you is in what you opportunity And the just Kevin, the do the terms of the and, AIM. for differentiators impact uptake. factors Element the initial in currency and on the segment the ultimately, impact some of what provide yourself, time the what was in of there high-level of of are key terms marketplace like, could terms a some and growth of platform convenience but flyover in think in Maybe again drive noise just lot quarter. that

Kevin Wilson

and to AIM? Element then I'll Catherine, you do want ForEx, do

Catherine Grassman

the impact foreign XXX is about the exchange quarter said to probably I Yes, basis growth. points the on

Elliot Wilbur

is Catherine, the top-line the for that segment? across or is sorry, that I'm for entire -- International

Kevin Wilson

lose we Did Catherine?

Catherine Grassman

I sorry. I'm sorry. talking I'm was mute. on Oh,

Kevin Wilson

You're on mute?

Catherine Grassman

was. I

Sorry about that.

for just X%. revenue X.X% reported basis, let's you versus on growth constant Can about the a say at me? was currency hear So

Kevin Wilson

Yes.

Catherine Grassman

Okay.

Kevin Wilson

you what Elliot? needed, that Is

Elliot Wilbur

just then And [indiscernible]. Yes.

Kevin Wilson

Okay.

XX so The only $X,XXX for is clinics. $XX fecal. goes a through AIM, And month it cost real you into go is costs a Element fecal. X quickly. device when months. AIM additional use use there that fecal that per you minimum let's promotion and an consumables commitment So prep the test And current Element pricing for urine

a of X looking between terms particularly a you're and fecal. in only just And don't So X day hurdle. to for veterinarians urine that utilization, find most high

that's what economics like. the So look

can chemistry see you line closely with biggest So part which and the of lab. be core would why meaningful. in our hematology really it's our we business, think It's

so it, that. think We it, there's think product sedimented outperform look We sample. Eastern behind differentiators, a product regarding looking and at things overcome more we it like in SediVue, we out a medical of IDEXX terms that highly In samples product the of out there. urine of urine. at issues we've lot We Europe. look, of human aware is repurposed, a we're looked rebranded and

fecal, dollars and all we we of well is many well. mousetrap automating the there of ago as slide of that's millions competitor no a So thousands really to scanner, technology wonderful we fecal. with ago better that a think And couple of that's have them. launched of they And for were in terms deference and product place urine, aware a fecal years

slide microscope much we So it more that under looking looking Again, at is don't at we're sample. same fecal a automated then think the with and thing. an preparing

We have sealed a that's designed purpose. for consumable specifically consumable. a this It's

having fecal, liquid believe, are the user we those experience, computations remember, and and on our have we're thing we types better better substantially anybody things we when whereas the speeds it we fecal and Especially great and then do urine Internet at with variability, do at So with that of is think combine smearing liquid. make do those, talking fecal And a is go in cloud. specializes their is thing. We good platform at in. the AI how a think together we that better we a you Fecal they just we're the to case great about think the and mousetrap. think, single economics. slides not locally urine, competition We're one much, much we not it faster, we quite sure would in that isn't as should slower, and and,

more. So There's does that help, Elliot?

the bit help? does that next marketing teams, we'll we're that and have a We month X and getting or be launch. But sales after doing little here as in more the

Elliot Wilbur

a that's good No, it. Appreciate Yes. overview.

Operator

Global [Operator Ben Instructions]. Alliance take Partners. We'll a question Haynor now with from

Benjamin Haynor

Just a here. follow-up quick

X-X AIM, as how also then was did assuming or color there's XX, the speak. the the On already? that's curious the DC there And out in Element XX say has Any I there? about Element you received X-X, out field we been field in

Kevin Wilson

Yes.

began October, full release so we of called of that So end and units, no, the it's the Remember, full X-X. towards we that commercial would out manufactured October. in release, start production

work X-X got are the got then to docket the we've number. been have And who are we've waiting, quarter that additional So customers who on the do installed. to fourth hit

say great. DCX, you yes, is. going it's terms expect me It to of In would

It they We it. step pleased it. additional with have inventory. very and like Customers for automates are one people,

customers X we just X individual large a to they don't now to analyzers, And comparison. the a as hit because And just us there's A competing path really they direct a nice think of of can no hospitals on then slightly the DCXX. price lower And lot the do So to DCX. DCX. as mega for opposed clients. DCXX, a higher just for point DC, in it's which or their have on downside upgrade those X devices price in put there's the count would we some with point

Benjamin Haynor

What's And I right of you the and than kind an how to of more more in are cycle? expect think would is Or of competitive? about DCX, it so wins? seeing, you slots replacement on competitive way that the terms guess, upgrade in where

Kevin Wilson

kind of don't or They're are those I an really think think upgrades. nice or It's either. I think upgrade incremental dry more a simplified a And products It's don't chemistry, simplified to again, the disruptor. our cycle. has that it's not have. disruptive launched competition that I regarding lower-cost new hematology

makes extra more don't looking I but an to share. the should you of DCX percent competitive, market us it And for so just know be grab

Benjamin Haynor

it. Got Okay.

Operator

Mr. any have over the turn no I'll this further additional back Wilson time, queued questions closing we for or And to so at conference remarks.

Kevin Wilson

Well, thanks, the everybody, who operator, thanks, call. and joined

I longest XXXX this you. our think, doing calls started with when call may be since I

impact third So well, just year prior for an to market, We full a market And We with experienced well. AIM. Element think the the I in we and simplify believe quarter. entered and pretty the that million-plus launch innovation. work worked extremely of after supply that's comparable. up I chain hit by strong of challenges want quarter. in this they million we commercial the that that, it We and of We we the about an size them $XXX that $X.X I year but apologize. had sums third exciting believe quarter, through market years think

garden subscriptions as Our subscriptions flower well. I'm I think, And we international conversion, and margin conversions rationalization, core to recurring happy those capture guided, POC and those And are we expected, Consumables and that grew going the XX.X%, as the number. international think, helps that. I with understand analogy, my consumables products people

talk I after those numbers comments, bonus July but think, about round, hit of is up those to it didn't we or CSV, beat to and this the the year have in amazing. those Our run prepared being in

the perfect, our those stack with to position that see, years, We've millions PIMS other rapids. strengths as supporting see of the end consumables for secular or year, several our reaching we including hundreds trends That we last and changed And work to entire we XX. all our it's X of aiming I relative are in X discuss if And margin, outlook a strong but hasn't of years key creation and starting several we lot can outsized a development and leapfrog companies been now in have last these record hasn't year over a multi-decade-long point. obviously, that and many meaningful, value the which of that like outlook. uptrend. not And subscription updated or more foothold business we now for in and are or the dollars do us worth the for and a that than strong revenue most, whole last key XX markets financial aren't And in XXXX would with within for an a manifesting stronghold are we've is months will accomplished the added a XXXX days revenue, often. changed. guidance of left market multiple that itself -- year believe legs stool, So years. things we

We our to will our keep we you updating look go we interest year your in forward your I at and on grabbers, call, We vet. normal hard and details our That's and and it. the and full pet subscriptions while arguments, appreciate expectations our update and that, do safe, avoid your until you the it forward. to work for then, on We're will call. ignore next take political quarter. smash working And to blessings count be avoid make wonderful another

we appreciate and today. time So bye, Thanks, bye. your

Operator

that And everyone, Once you, again, us. joining conclude call. for thank today's does

You may now disconnect.

Heska Corp. (HSKA) 6 Nov 212021 Q3 Earnings call transcript