Earnings call transcript Q1 2023

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

Operator

Good day, and welcome to the Bruker Corporation First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mr.

Ward. Justin sir. ahead, go Please

Justin Ward

of morning. I Corporation's name everyone Bruker Senior to Justin Corporate would quarter XXXX like Director Bruker's first am My and welcome Relations earnings and Ward Development. to I Good Investor conference is call.

on Frank Laukien, today's and and our and President are Executive our Herman, Vice call CFO. me President CEO; Joining Gerald

Events a In & downloaded call, we conference today, during addition today's be Bruker's of to the section can be Presentations earnings slide referencing Investor release from that we the issued earlier website. presentation will Relations

will During today's measures highlighting call, earnings on Reconciliations information. of in at included non-GAAP we release financial be GAAP website non-GAAP are posted our financial to and our our ir.bruker.com. are

harbor presentation. is of Before Slide X on statement which would we Bruker's begin, I the shown like to safe reference

geopolitical this and we call, events that the financial statements be the challenges. including operational forward-looking uncertainties, involve logistics those and and making company conference During of to supply performance chain, risks and and risks inflation regarding future will related

Form ended may actual as financial today's include website differences for by Factors statements. might on that on limited company's from our in such -- period XXXX, SEC our differ our such and The are and our release, are other SEC’s those the available discussed cause not earnings December to in which XX, but materially other XX-K website. updated results filings, the

release results in We on not by is based be following except today, reasons, the quarter early based Also, August other conditions XXXX our law XXXX. financial information for that may expected or as events future business second update forward-looking intend our do information, prior please the of to and our new required note current May X, to XXXX. of on statements as to outlook

on after rely as necessarily not statements these of date today. our any views outlook or forward-looking as should representing You

fiscal cover our call will business said, that outlook. of and first quarter Frank overview year an updated then we the progress. the With with financials in detail, providing XXXX Gerald will for our financial more begin today's share

turn CEO, Now Bruker's to to Laukien. I'd like the over call Frank

Frank Laukien

everyone, start commend joining us XXXX excellent their year you Thanks, on to and Justin. an earnings thank contributions. today's team quarter the hard Bruker call. members achieved globally I Good morning, first and our work for for and

We are advancing opportunities Accelerate large high-margin spatial focus in biology. the high-growth, our proteomics and Project with initiatives, X.X, on particular

XX While investing next excellence, productivity, our for also and operational years. growth in capacity the

instruments for first of Bruker strong. Turning high-value differentiated to scientific portfolio, revenue solutions Bruker for Slide was and relatively across organic broad-based our In strong X. and posted robust The remained quarter, and the have life-science demand growth XX.X%. backlog bookings the

XX.X% quarter first of increased growth net implies Scientific exchange currency XX.X% a X.X% growth acquisitions increased to first year-over-year. an rate and segment, intercompany the organic growth, quarter BEST which organic For organic of in our On and of Bruker's Instruments in constant our basis, despite to XX.X% revenues growth XX.X% X.X%. This X.X% eliminations. included $XXX.X minus added headwind of revenues year-over-year XXXX, million, segment

margin margin non-GAAP an gross non-GAAP bps year-over-year XX our basis 'XX quarter increased first points was year-over-year. XX.X%, Our operating while of XX to increase XX.X%,

growth R&D resulted in volume the in first commercial expansion from operating the margin strong of drove quarter. in performance expansion with year-over-year line capabilities. our combined stepped-up strong leverage, despite XX.X% growth investments top Our margin revenue and non-GAAP on profit The

in basis, On 'XX. the of 'XX, a EPS quarter reported non-GAAP of quarter compared In from GAAP first the XXXX. the diluted first of $X.XX Bruker of quarter EPS was $X.XX XX.X% 'XX an quarter in reported $X.XX, first to increase first diluted $X.XX

by disciplined return XX%, upon process the strategic growth our well differentiated of Bruker focus acquisitions, metric on months on supplemented acquisitions capital skills, a and and Our technologies. management and reflects was trailing XX invested that complementary organic entrepreneurialism

In summary, particularly groups, Accelerate bookings, all Instruments continued with quarter Bruker the as growth strong across excellent in quarter proteomics. 'XX Scientific Project an investments with X.X, in revenue was well of first as ramping

Slides instruments turn we and highlight performance BEST of to where a quarter X constant all of X of first and and our three 'XX, quarter groups the the In 'XX on segment, the now, Please robust basis. year-over-year million our currency gigahertz-class a scientific on high-teens BioSpin even revenue preclinical Group quarter. any in MRI BioSpin grew percentage revenues revenue of its the NMR and across full without imaging. currency portfolio basis, saw $XXX the growth constant in first including first in

X.X do NMRs not the from the in X materials that test second Kingdom of final gigahertz 'XX, the now some system expect half gigahertz-class first GreenTech and we or 'XX. research. orders for Life-Science United Please delays, half in gigahertz note but expect class systems any two X received the for we revenue now after for Notably, we NMR of revenue

increased million a first percentage vibrational strong of of the on mass the For with Group basis currency businesses. low revenue science spec CALID and quarter constant spectroscopy of life XXs $XXX 'XX,

Our had timsTOF announced growth. first XD year-over-year epiproteomics key platform excellent we In and the multiomics. bookings further in continues its capability proteomics, quarter, adoption enhancements and

Slide Please turn now. X to

Nano industrial NANO First the high-end semiconductor all tools delivered a and strong revenues, remain GreenTech for our basis. growth constant was in grew million Revenues currency quarter XX% and NANO's X-ray Bruker also the revenue in Surfaces $XXX metrology Research advanced low and on strong. academic, and quarter.

quarter metrology Life up demand, the semicon as microscopy performed which last sharply with backlog. innovation bookings and as year. strong research Science well and tools revenue did our acquisition, and microelectronics NANO's in was fluorescence fourth well of product Inscopix on we strong

Finally, of by gains MRI high-single-digit but customers, strong superconductor share grew OEM intercompany percentage and the supply meaningfully first demand by revenues net challenges. constrained driven by in eliminations, chain quarter BEST

systems University University and which now. Warwick we orders life-science X.X Bruker of for at have -- GreenTech Moving of lot These a to for they're our that On interestingly, materials will functional placed UK. for the biology both and recently. received Birmingham, X X.X highlight They're both we X Slide and two the new also research gigahertz already just interestingly of X, structural used and the NMRs. in but be NMRs Slide gigahertz also research, both

is really investment, but two UK UK for will used systems really by that these scientific This be community. only infrastructure the not the host broadly scientific universities

attention and it read good. being X. really quotes think is of to course, biofuels, exemplary. the quite it's energy that I I universities. life-science won't at them, how are I draw materials, And on interesting, much is very these two very self-explanatory They're also see but storage, the research actually but Slide your to research, done

on Slide Moving X. to

the support certain for our having sample and proteomics prep are business. innovations We software that timsTOXXXX

the it's you an by our compact a see friends very the very -- one. left, They're PreOmics far system. and workflow, the but of business, area, innovation majority tabletop, and benchtop new important a really On Munich it's owned on out

of The case. FFPE BeatBox gentleman is this to tissues large-scale University from biobank in and the research now also precision greater workflow a tissue qualified and unbiased gives for FFPE for deep, with said, BeatBox breakthrough projects. tissue for pathology for cohorts us now proteomics an proteomics results quickly, allows this reproducibly particular enabling Copenhagen importantly of excellent, large process The

at our So prep automation this PreOmics. of sample and is enhancement consumables important business an further and

levels, I an and Switching now research small to used for Canadian very important with where reached the could the tumor software collaborate provides enabled and biopsy first which in on that for be support AI, in it think immunopeptidomics, is we and samples, Novor the has time informed really of algorithm immunopeptidomics. external throughput sensitivity GPU company

not very also immuno-oncology in expressed those of immunopeptides targeting. genome. They reminder, are are For you important a -- as the

sensitivity you in in excellent de and the important really clinic. to applications with case area software in in novo also hopefully, future, some at-scale immuno-oncology the another is So have doing that in research this immuno-oncology and sequence and

and science to again I'd solutions experience progress for just summarize. our go demand Right. and excursion, differentiated continues this like across our portfolio. After and strong made excellent to back Bruker instruments

high margin X.X, performed initiatives high Accelerate Project Our well. growth,

We reiterate pleased in the biopharma semicon as to Very growth, ramp for accelerated applied executed spatial have well markets, our well and year. to metrology. how in with our as especially biology, begin intention proteomics, teams investments

and high continues good XXXX, and year through XXXX. to year us fiscal growth full move give are guidance the As we our revenue EPS we visibility, raising our backlog very for

Herman, turn call financial with in and will year So raised let XXXX the fiscal CFO, that, review quarter performance guidance who first over Bruker's Gerald our to more me Gerald? detail.

Gerald Herman

today. performance Thank everyone, us for you, revenue detail I'm provide $XXX.X Frank, approximately of first per In reported of $X.XX which to a on quarter revenue first starting reported organic XXXX. of We XX.X% million, of on joining $X.XX financial little more to pleased GAAP XX. XX.X% an quarter in XXXX the the EPS thank to and you, share first year-over-year. XXXX, quarter increase compared increased Slide reflects Bruker's Bruker's

the EPS from was XXXX $X.XX of QX XXXX. quarter first the an of posted On we per a basis, increase non-GAAP in $X.XX XX.X% share,

QX operating operating approximately income XX.X% for $XXX investments reviewed. increased equivalents, short-term quarter XX of We Our has the cash, finished and non-GAAP already Frank XXXX points margin million. non-GAAP XX.X% first our the grew basis with year-over-year and cash reasons to

we Accelerate we first quarter, of and to majority In about investments, complete the million. XXX,XXX ramp fund During fund the used repurchases. $XX XXXX, cash X.X repurchased expenditures, a Project acquisition quarter share selected proteomics for shares approximately capital in

XXXX. first quarter resulting EPS a partially X.X of year of $XX.X million, we flow of for the of investments We $XXX cash As approximately impact which expenditure reminder, quarter $XX.X first repurchased continues million the favorably full offset in XXXX, of in flow for full year shares in generated million the capital of in million XXXX, free to cash operating by 'XX. the

bridge for earlier. Slide of the XXXX as XX, quarter first revenue the shows discussed

revenue XXXX XX% quarter range, mid First in BSI organically. increased systems the

in compared an of quarter in European the quarter revenue recurring Americas and in BSI grew organic low-double-digits. basis first and While, our BSI organically the of revenues the XXXX. grew Geographically, to first XXXX, high-single-digits on the

grew than our While Asia-Pacific all revenue XX% year-over-year. more

declined World revenue of quarter first Rest XXXX Our slightly.

from Non-GAAP our volume, pricing from P&L Project increased supply Slide of chain foreign on operating Accelerate a XX.X% XX.X% gross leverage benefiting non-GAAP from margin basis. XX headwinds. offset performance quarter partially points mix, of the XX, XXXX, from shows by exchange, quarter basis higher first and higher and first in XXXX tailwinds

XXXX quarter and XX.X% expansion driven operating gross volume of points solid XX.X% non-GAAP higher margin margin leverage, ramp. than first a the basis XX First Project by continued the investment despite of X.X quarter was Accelerate XXXX, in

now NMRs in half expense expanding sequentially operating XXXX modeling, of of For quarter of ramp our the previously year gigahertz-class in from moderately shift of is ramp due expected and part expect the X second XXXX in purposes to operating margin we XXXX. quarterly the we second XXXX are quarter revenue revenue of before to that in quarter the into in an to your full expected second second outpaced half result This 'XX. again the our the first of decline

we non-GAAP our quarter XXXX that, to down sequentially, mid-to-high the non-GAAP by but expect with second percentage also to And up posted XXXX. $X.XX EPS quarter we single-digit second be compared EPS the of in

first the share was XXXX of shares repurchases shares were of of million, XXXX, tax the or XXXX. compared effective rate first the X.X outstanding months. million over first quarter in XX.X%, quarter past to the of quarter the first non-GAAP our reduction from quarter XX.X% of average diluted 'XX, approximately XXX.X from XX a For the Weighted X.X% in resulting

Finally, $X.XX XXXX sharply XXXX. the EPS non-GAAP XX.X%, first to quarter compared of by up first was quarter were

strength Slide guidance first the record increasing for 'XX Turning we're backlog, revenue our in in the quarter the given bookings year. our now to and XX, and

revenue X% of year-over-year, This to our for of raising range billion X% billion. updated an a guidance. revenue from $X.XX includes to growth of organic Our outlook increase our full XX% prior of guidance the $X.XX implies year to XXXX

tailwind X% February. a exchange estimated about We of estimate down foreign tailwind in and we the currency from foreign X.X%

of the contribute to XX% reported the This estimated an acquisitions about prior increase X.X% to XX%, revenue growth, growth the from from expect to range guidance. We up leads we in to X% earlier. of X%

continue solid expect and previously margin. transitional gross deliver decline profit the margin XXXX, to operating to We in explained growth with profit in expansion operating

XXXX. growth EPS $X.XX guidance XX%, our XX% up year assumptions estimated We to to range the Other to which for rate X% X% a guidance non-GAAP by for represent compared on -- of of growth. approximately XXXX, non-GAAP the slide. EPS of prior listed range project line, On the tax X.XX from we're bottom full our of are would $X.XX year to XX% the to EPS full XXXX, of non-GAAP raising

XXXX full-year foreign currency XX, for ranges been XXXX. March our updated of as For rates have

more growth improvements about planned growth. XX, medium-term how financial revenue our on excellent quarter learn To wrap to first growth, organic our Bruker XXXX, initiatives up, profitability or booking of delivered outlook. strong to drive Project are key in Day Investor continued Hopefully, join and and strength, June and us excellent the expected Accelerate you'll in-person with they virtually EPS X.X

to that, Justin it I'll back Thank start the very pass Q&A with you And to much. session.

Justin Ward

turn the Thank call. to you, call the to the over of begin the Gerald. now portion I'd like operator Q&A to

As everyone allow we a one reminder, you questions, follow-up. that and one time limit question to ask to for yourself Operator?

Operator

We [Operator the please have first yourself one will And session. of Instructions] limit Please now question Bruin re-enter question-and-answer Derik De queue. if one to and you follow-up. Bank may our come you And questions, And the begin America. again, question question from go ahead. with will further

Unidentified Participant

guidance that prudence and 'XX? exercising This by elaborate on there's growth more? organic the XQ your appreciate bit of to Certainly a here growth could you morning. for Peter just Thanks. on raising XQ uncertainty. Derik. updated a you Hi. But not just for is Good Are upside approach lot organic given the the comp,

Frank Laukien

Yes.

question. Of the and still raise. it's it's years prudence. in early mean, I course, a we're Good think I good exercising

under think that's we So prudent circumstances. the

saw also bit little that QX will be our weaker. You sequentially a

So that make sense to us.

Unidentified Participant

fair can the remind long first 'XX? of And in current, us of that how growth of it us? order Is products state chain? you the kind you just how give supply revenue the Or the would us and in update much orders for of given generally and kind the is translate, convert to nature to going assume Okay. an you that like, saw frame to quarter of

Justin Ward

mean, revenue in the year. of will other orders in. came product Indeed, Yeah. NMR I some this very course, into semiconductor some much floor It larger where additional or depends or systems spending turn orders systems, metrology still systems benchtop on line. came or

of delivery different different Some actually that now lines product But have XXXX. times. is into going

All bookings right seen strong again them of and in excellent have generally QX. now very backlog have

Unidentified Participant

any by is of then All right. China loan update program for chance? status the then you And have do me. you. the on in that it And Thank

Justin Ward

that on right? in program loan Is China. was Sorry, the that

Unidentified Participant

Yes, correct.

Frank Laukien

Yeah. We've and fluorescence end in high spec, high-end QX benefited in orders from our but in mostly that some mass and instrumentation, NMR significantly, systems. also microscopy IR

we orders So good orders from -- from in we really good QX. Very got China China.

Unidentified Participant

you, Thank Okay. guys.

Operator

question will John Please with go UBS. ahead. from The come Sourbeer next

John Sourbeer

taking the on the year? for to question. Hi. on the the there be for on what Would the like for Thanks quarter backlog. Maybe willing and look question the any provide color you just outlook just previous book-to-bill

Frank Laukien

quarters I far. above haven't -- mean Yeah. than point, we slightly -- X, Book-to-bill but again was above under X. at lower with achieved some And book-to-bill need right? we that so yet

was So kind of X% remark. Obviously, than again a greater is obviously. it's answer. I it growth, short good revenue slightly mean, the very despite the tongue-in-cheek And

John Sourbeer

Got it. Appreciate Speakers] [Multiple then And it.

Frank Laukien

to always orders. true year Best scientific the for business. is is fives That these instruments take at

which take three groups we'll is that instruments, for So was our XX% scientific But business, the the scientific out. of instruments true. that

John Sourbeer

year on then And color. for the side. the guidance appreciate the I the just on updated EPS

color think just for cadence with year we how on you're Just should and of there, about just investments some that? additional the any R&D the and the making investments margin the

Frank Laukien

Yeah.

better half. we in and sequential recovery see step QX expected obviously, even expected our than year. haven't you changed guidance margins in then the expect And for Slide the XX for the and the that drops in on that really QX, we guidance, down margin second margins, We

dollars, but that's not in obviously in bps. percentages So, or always

the less same. is that So

John Sourbeer

the Got Thanks for taking it. questions.

Frank Laukien

Sure.

Gerald Herman

Sure.

Operator

from go Securities. Souda Puneet come Please will question next ahead. The with SVB

Puneet Souda

on Yeah. and an really impressive Hi, here Frank, congrats quarter.

versus book-to-bill to in sort that NMRs, of bit you seeing is and If is end are stay I appreciate what back you X, a over that second and the that look you step tougher could of the high-ticket way at backdrop items take macro. has the half? continued sort and of we're a booking and a of those high the have

continue where But us semiconductor and mean, confidence both is from that and to health concerns as funding we where of I NANO, sort maybe have sort give portfolio of the CALID visibility low. in the have and just little hear a maybe you in care bit more headwinds, that the biotech well. you visibility

versus give the your strong So just of and results backdrop? the overall, us visibility just sense your

Frank Laukien

Yeah.

orders. China mean, I noticeable. noticeable, was that's So strong

I think from we stimulus that are of program. loan some benefiting

additional all Now business. will be not that of

Some where year those this forward be ordering people will incentives of years been are that than probably of have China because created. earlier in that pulled other in

not does we additional Some did expect this look of that like actually necessarily that year. business

So all it's a mix, but not it's additional business.

Some forward of from pulled probably it later is quarters.

Europe strong. was quite

still I Semiconductor bit. a we that. us, For are because that's too orders softening biopharma and was long little backlog strong. honestly there's quite our about of lot rumblings was a But backlog have still but actually so is welcome, much quite quite know long. metrology

as expected, better-than-expected, perhaps biopharma proteomics doing So of better sort expected, than China with great.

Europe sure Europe. academic everybody and also else in also expected We that, also really Europe biopharma the front. expected of in yeah, but worldwide, European A Research we And has nicely recovered lot but that. also but I'm -- not GreenTech Europe,

So very different or kind of little more welcome. demand industrial industrial that's and, from cyclical course, research the of traditional a bit

Puneet Souda

Got it. super helpful. That's

of program? would are of terms bit? In the Thank too. be a the And that you elaborate sort in that that quarter, hearing of pricing in any what's helpful, this pause wondering if any the you. provide program, contribution if China, Gerald, on duration you can you about temporary And if could

Frank Laukien

that to goal the take We don't I'll is orders don't know. may expect We come most first right. All We of part. think continue. that of through. have stimulus

and the been have for have we visibility or others. sell-side data been It we additional that So really may. reports but that's really reading research yours read insights don't high-end by we don't independent program have from that paused, our systems. and good hear We reading don't may

about you want do Gerald, pricing/inflation? to talk

Gerald Herman

pricing the see -- continue we guess on is take the to I'd I continue side, say what action to on Sure. side. Puneet pricing we

as prior do of in that, that for points about XXXX. as to It's from offsetting XXX year well XXX impact. the the is continue basis that still significant inflation points. pricing it's about realization basis We And think us. We

So about expectation to quarter XXX net as XXXX. drag for forward thinking. That's points. basis of our drag net in of of rest XX XXXX, into our we march that's We is going moderate first the basis think current around the points

Frank Laukien

On margins.

Gerald Herman

sorry. yeah, margins, On

Puneet Souda

great. it. right. Thanks, All That's Got guys.

Frank Laukien

Sure.

Operator

will Waldman go Research. question from Please Josh next ahead. come with Cleveland The

Josh Waldman

like on wondered taking an for questions. Frank, bit couple Thanks for quarter. It you. timsTOF. I sounds could Hey. provide update another more had you my strong a A of if I

additional the primary you which I if the to then color are bigger drivers provide here? was issues end curious this Just had could system chain markets think maybe on supply some last year. strength And that a

Just production capacity it about thinking and Is the 'XX say, medium in term, you're could how curious one just contribution this how supply XX% a growth now XX% portfolio to as that to looks forward? and here chain and going 'XX? grow

Frank Laukien

be to We don't the to have single-cell timsTOF to line in To your orders proteomics chemical Yeah. proteomics that granularity, continued strong. proteomics various to the proteomics. plasma that's, question, very in to flavors types biopharma or proteomics proteomics give of stuff course, cell of industry but tissue from

get into pretty well As we proteomics, all once are you fact actually deeper strong. there -- the more and are you and and different pretty of have so these. more And they're doing that many subfields

points platform, timsTOF but of performance have We multiple product have course, different types of different of and, applications. a for software we points product

do segmentation. the biology. to product imaging, with begins Not be, to market as as microscopy spatial proteomics that granularity, in forget, targeted non-timsTOF with of CellScape the one the see greater line. has our MALDI well we when with tissue course, to One

there's of all of lot early addressing decades this very I sense, that, pretty the decade it's and points. a all they're and X.X in more the So we're in more proteomics demand doing think We're and that those is days healthy. of of and well, and broadly or

by immunopeptidomics,, research I mean, I in mentioned earlier or mentioned proteomics, really it's I it's earlier -- FFPE this. pathology all

fixing we the chromatography did don't Sorry, also acknowledged growth perfect where some not that some rates. on some it and But there chain. system. break And previous yes, yeah, we need overall on the there's issues, systems yeah, and still other acknowledged was other -- that's market. up actually, through the on right, chromatography modeling have the it. yet means, for continued mostly supply supply but we you by the But We're we're

it that sorting kind out that we're So are important, but... details not of

Josh Waldman

Okay.

Frank Laukien

wrong you're your not with you're not But question. --

Josh Waldman

months And and months update on Okay. portfolio us two you over if I would you're total you think stands something to where six said at, had I then like thinking that work today more the maybe years. could previously you about eight and guess, plus I again. looking backlog down how had wonder normalization? you like

you're still thinking about Just curious that's it? if how

Frank Laukien

up that's sticking down We're come that And problem we but it went a is our a to bit, reality. wonderful the would to fact, in story. backlog to No, thought little which begin have. further,

yes, and with healthy. issues not two-plus are very up, as But yeah chain, to perhaps going in continuing getting in over still our looks strong invest over have areas itself really years. well. -- quarters. it better, then problems to while capacity few fewer will strong a But so, been And it's but over QX be some supply come This resolve we're meaningful improving. quite -- new orders is and And

also answer plus you still greater short is is, if is take the correct, will like, months two eight that to years Josh. still true, and normalize, than this So yeah,

Josh Waldman

Frank. Got it. Thanks,

Operator

from ahead. will Arias question next come The Please Dan with go Stifel.

Daniel Arias

of Thanks in us in Europe? utilization guys. a and maybe the region? or placements going China right you And for to US on moving lot that update Biotyper in questions. obviously, just on how morning, parts now. Can just what's Good comparing Frank, in performance

Frank Laukien

revenue, The MALDI business services, including of Biotyper business Biotyper systems slowed recurring systems. has is down. and databases, and us. has for down systems somewhat The slowed course, reagents MALDI consumables, more

doing has replacement company in replacement market It in for and quite It's our doing down replacement the Also, well Europe. comparison. strong now there's meaningful China. we're systems, very other and that. very, a slowed to comparison in also However, systems, of significantly well very a with

twice in US. Europe in have bit, And Biotyper almost in but should over the has equalize. mind many little lot of that US picked as time, US potential. as a Keep that has still MALDI up we a

continued the as of expect. grow kind business consumables margins the to might in the double-digits and better you So has

million of very usage probably don't strong. there out identifications the -- systems that X,XXX know, year these $XXX per of So these is approaching of just systems, about I -- are

a more workflows, in we're investing non-clinical consumables, and and additional Sepsityper it's also research extensively eventually, platform. the tool really susceptibility into although clinical on microbiology phase that's useful in additional testing lab. used So software, selected the It's and in antibiotic that being still

into the that's instrument So to it's but be XX a flywheel, as part bit last over not nice later placement years. a little that's used the steeply getting as of curve it the S anymore the growing

Daniel Arias

Okay. the in then Helpful. that And Canopy, to inside that would spatial obviously, growth lot there's within overall right that space. what's on Acuity, program Accelerate Maybe staying the just year attach for portfolio you rate outlook guys? with a the business, you the this going Vutara,

there? So interest? where launch tell the can timing And are us Acuity, seeing the most you about then is anything you product on there

Frank Laukien

Day like Acuity June in not single lipids is including a cell out colleague, much it's the take those and better listen a – because market. give I'll we’ll and the imaging with se, 'XX until of easy well And to niche. of will my a that's but on 'XX. questions. our getting that say, Mark be Munch, per and Investor probably Mark multi-omics, address imaging, interest that's launch many Munch and won't metabolites a more spatial in -- tremendous consolation, so doing that's We're the topic. event, way CellScape. you also biology Yeah. XX, proteomics with Canopy, join tissue different spatial imaging or can you using a of bit is tissue a It’s MALDI going

includes And cell are market, the spatial broadly biology a microscopy that business more then and biology then fluorescence bit those of high-end little also growing.

a So Obviously, Inscopix, come there's will that I the may June. better rather things neuroscience be Mark in-vivo our and -- up single rodent with like somewhat during more microscopy. it's than will the in of really that's I lot imaging, than think together that adjacent just much a Investor cell. explain tissue do some to pretty elements include a Day much better have markets, coming Street job But

Daniel Arias

Okay. Very good. Thanks, Frank. Congrats.

Operator

next Citi. Donnelly go question with ahead. Please from will Patrick come The

Patrick Donnelly

Hey, gotten talk questions. the recently. to guys. Thanks you one you're exposure, actually Frank, it's for then us I some end, how The maybe you even what business. more taking through, on attention think on remind at sensitive budget has changes NIH Can guys budget? are hearing the maybe US the in your And your visibility mid-single, Any high-single-digits just expectations? there? And to the that? into just

Frank Laukien

Yeah. We're that the publications our reading. and you're in information reading same

any I insights. Bruker-specific don't have I think So

in our exposure obviously, are You correct, Patrick, in is the single-digits, to that.

much the the For spatial more year. any or biology and it's it up us, goes are what more than X% always doesn't important to much it priorities tools to in -- or more it's is a given effect whether and proteomics much, important it -- exact X% much or prioritizes X% raise that relate strongly that

into us, and curve, genomics fundamental for as trends, very those have of gets a and strong, lot So trends think S are the course, of biology of been the S probably those curve. that's part right? part for the That's very And very, proteomics later I secular spatial related for us, steeper decade. of then very the And for partly good getting the good. and parallel in into our next positioning just sequencing

Patrick Donnelly

setup. the And XQ then a we're helpful. on few That's just questions getting Okay.

of just comp? number given And as again, I'm obviously. the in then that's easy should know Just the timing think there, trying suggested how year. maybe a case, quarter, the the the double the off longer a bookings to do numbers digits? still we're healthy. the just growth be just was getting questions coming watermark that going step of side. previously, organic down you about it the I there. up this for Thank you. very frame maybe it high the But issue Is to be no had you kind given,

Frank Laukien

Yeah. No.

we the As earlier, we did step that. systems half have then be that almost QX now know yeah, ultra-high of know the we in that year. in sequential Gerald had expect two we QX bit pull-ins field not anticipated now -- said in QX inadvertent will that that down we and QX, And not little of because them -- we second have we're in will be a

it's mid-to-high on timing given, So was you've thing. single-digits. specific I what the we've a just color you've QX, really think looked indicated With think that, Gerald, that I at

Gerald Herman

Yeah, a Speakers] still [Multiple exactly. We'll on comparison

Frank Laukien

right? growth, EPS

Gerald Herman

The to I pretty think it's growth. trying And we're EPS much describe.

We experience. QX takes seems in the the as puts some it from if case individual and have takes the quarter, more of

view is more yeah, much think same. that about overall is It's our So pretty it's I timing. -- the the story year full

Frank Laukien

With full year, right? rates for the

Gerald Herman

Yeah.

Frank Laukien

sequentially QX be down. will yes, But

Gerald Herman

I'll that ultra-high XXXX, had revenues. also field out of maybe we XQ point in in one

we have quarter, of so, have organic that our none those field. in would ultra-high we assume commenting the watermark high the it we'd thought year two growth guidance for prior this be And that yet

that's big So thing, Patrick. the

Patrick Donnelly

Understood. you, guys. Thank

Frank Laukien

a with a So a shift the half. of to strong little and first in start bit more yes, the quarter. second And

Patrick Donnelly

Right. Got it. Frank. Thanks,

Frank Laukien

Thank you, Patrick.

Operator

from Rachel The with next Morgan. Vatnsdal will ahead. J.P. question go come Please

Rachel Vatnsdal

Hi. Thanks guys. for on taking questions quarter, the and you congrats

to Can package. you around China forward new you performance stimulus driven mentioned? China of that And XQ. much pull-forward How dig the just the Thanks. this that into outpaced strength really wind of pull about of that some so, by growth a in dynamics Can quarter? then further I was in lot China some wanted tell the bit here versus us actual And that you of the during those a around was dynamic comments earlier you and characterize talk some what flagged? China of

Justin Ward

This Justin. Yeah. is Hi, Rachel.

the orders really the first delineate quarter. to in impact in and revenue the want between we So China

But China, on And in orders So, robust. a lead in given strong. obviously. were much first the the quarter have. in quarter were times in revenues the backlog organic corporate that conversion rate the quantify the it higher still going to organic what being was wasn't in China growth orders the those were there quarter. revenues said, those organic an not We're we China than in in of into very first basis, rate the growth But

Frank Laukien

I to earlier, order seems that as And the there program. dynamics, Rachel, loan/stimulus some forward encouraged apparent to, China be pull said by that in is

that additional they business particularly there where get all that was we they to our fill million fridge with people -- just but this that and we that ticket is might get buy incremental years. an opportunity incremental not don't business, for saw teams So, reagents. this did the buy, a year budgets don't some They expect necessarily get they big-ticket items many grant otherwise by big high-end when extra not their -- items dollars. think They

difficult So don't know It mix. that a it's versus for of certainly business. to say bad us first additional since modeling, much be XX-XX don't I additional that was a is mix. whether know it's forward there -- But not approximation. might pulled real I was a a how

some -- lines, also favor acceleration, meaningful product additional those mass and meaningful So are especially and where specs other some business we -- but to NMR very tended big unique.

Rachel Vatnsdal

chain. Great. just is And me on for next one supply then

in of Is then supply walk further versus lift some of can segments of factor terms Thanks. follow-up the much So to limiting you the really most guidance you're you specific when for that to to year? the that. decision really macro those level the your you not or around really prudence guidance still? of that does through us into play how constraints what what's seeing chain the supply flagged? And visibility, And ease? chain And the that rest becoming backdrop then constraints expect the

Frank Laukien

I main we early, still also was QX. know, the -- it's a have you our I weaker guidance pretty But right? slightly mean, with sequentially satisfied And rates.

more has launch. are in it within that's So well still the really somewhat the medium -- They're long I they chain -- will and planned relatively their very probably that ahead right there term so is -- need that to probably comparatively invested some that's Supply -- even makes They've think and this industry. -- strategically in now. to supply group capacity anybody be sense constrained else superconductor BEST industry. than the it's their chain But in doing business.

in sometimes things but of exceptions and other with woods Things the the that's a topical all In that few we're some out I we're some wouldn't areas packaging generally much areas and area few new NMR, areas, chain that where supply areas, without incidence like There improved. a the of significantly. mostly is very and are other semiconductor of the improving, equipment yet. say down logistics, timsTOF in are those in came problems still warning electronics

Operator

from come will question Jack next Research. Nephron The with Meehan ahead. Please go

Jack Meehan

to more into China Thank little result you. really morning. this wanted bit dig strong. really, a Good I

of just more regional of XX%, on region China terms revenue you Can over just the bit little in up APAC above So the color for that. what year? growth And then was assume the well provide the a revenue growth? in rest does guidance

Justin Ward

is This Jack. Justin. Yeah,

by breakout really in a throughout say pretty which APAC, APAC. necessarily is guidance. strength in terms on we'll the going broad growth sort or regional in much what of the not rate country comment within I break is out think but growth factored in strong would fact, don't to the more that we're of the I leader But APAC, So Japan, in

Frank Laukien

that a revenue was Justin. Jack, by And comment

Justin Ward

Revenue comment.

Frank Laukien

was China orders the On Yeah. standout.

Justin Ward

Yeah.

Jack Meehan

Great.

restriction it Okay. China. it here, sort about And And where any doesn't had but helpful. stand? the -- issues update be think Is would impact previously, we've a then I just any follow-up, as of in does obviously, just that like on talked export that that seem

Frank Laukien

Well, recall equipment QX get QX, to already that of of semiconductor of perhaps QX. in out to already, times backlog you or very export those that to think, end no our the certainly taken will long have China if longer a would -- to either get pieces metrology at in I be permits able we've we -- may

China significant fast ago. eventually, a just then, they're come order you no slower biopharma life-science export further on, faster months in sense, because how food that get and is tend -- permits, But that from that. and permission, testing since the gating sometimes bit grow but German you so through months, change be to they authorities, can since markets, but there also sometimes they further of also until slower no little five really and instance, things And your so, on grow applied about is and sometimes get for changes in six

Jack Meehan

Frank. you, Thank

Frank Laukien

Sure.

Operator

Daniel The ahead. Brennan go Cowen. from come Please with next question will

Daniel Brennan

the for Thanks. question, the taking timsTOF. Great. one Thanks on on guide Frank, then Gerald. Maybe and one just

Because a pretty just material one reconcile is it backlog, of very year, the easing to it that Gerald after we're still how how of to order the quarter back XX% the healthy, I like, from from growth get from trying the guide, in just you first conservatism comps slippage? maybe and the XQ? it benefited but quarter phenomenon was in but much like early to Just slippage looks the and much deceleration, the and XQ guide the strength Frank where your implies how much is of

Frank Laukien

know even believe sometimes You're the little don't cadence fully -- It's early in conservatism we feel we the conservative, first of year, quarters, assumed absolutely It's half up then. we so a and Yeah. we it's second a we is a it and ends which hopefully. bit prudent not right? given have but of -- two appropriate -- strong second -- we'll the and being

of makes percentage quarter very And in a the had it really predicted. really So despite and XX% our as of first lot investments a good as quite revenue to it growth and -- organic R&D in good about we has sense us. is also and now reached revenue very, significant

growth, left And did we better And is little as we're, EPS in therefore, for our we that than so, seen and the the of we've we year, guidance are deliver a internally But same in well before. still you've course, pleased significant. It margin QX, even QX. investments the very expected.

of good and the our sign pricing So it's and value leverage of a systems.

that kind comes know but really what nailed I So here, to I mind. of that's your don't question

Gerald Herman

of Yeah. bit still I out may there. a quite that there's just uncertainty add

China geopolitical have uncertainty one. for related You to

supply the There's we a the have still Ukrainian recession issues form of constraints. conflict in in have or the mix. around We quite some shape and around globe. bit There's still chain way, floating

that we and is, both position of consideration the on think our I ups So into downs. guide, I took think

Frank Laukien

Yeah.

what course. see like belts If third our others and We strong their companies little be certainly, that saying not so I -- will be of that lot biopharma. of with bit, some will sales, and them a some It's they NMR are actually goes or timsTOF could go remarkably timsTOF are early-stage into biotech funding of there's less almost that's our further biopharma. There others a also a mean of into look saying. those tightening surprising

less on kind provide. what's We have and slowdown. But going the our biotechs the macro the in these for us. of the can need of not our systems value of that one around seen -- cannot for and early-stage It's information data any probably more the ignore

keeping So on.

Daniel Brennan

Great to that. know

Frank Laukien

in and CFO Canadian our say And as raise, about my to not, position we're skis. we of in, -- do we're All think a that's a that's prudent that. ahead getting hopefully, would

Daniel Brennan

us wondering, like then sure Can as like of is have? like, competitive mass that on remind refreshes any the anything like And is And of one big Or market? timsTOF idly just is expectation on I'm there just that share Thermo the helpful. by business Super sitting response? do there they're of Orbi? not kind No. maybe takes timsTOF. that market just spec you discovery What share you how today? Or

Frank Laukien

installed from last we And they're them think some not sitting what also name It's been double at the thing I you sitting digits. very we have years healthy sure that systems. I'm launches we growing double-digit We're by share it. in ago. Well, and was launched said orders the the we of said, wouldn't I an sure, certainly mean, five surprised. we've by. base for well not market gaining made revenue, since been ASMS, they idly now so XXX that be And over I product

we're with well really also sub-markets above perhaps stuff, XX% mortgage molecule in plays in spec The with the share and I'm their a mass proteomics sure mass thermal metabolomics actually. that market it's larger small market play a other market share but with has many markets getting and is XD proteomics XX% of lot same where proteomics and we're primarily a applied above traction a spec. possibly and

not capture is enthusiasm, I word, for is technology but So a think well. KOL, nice that doing call Also KOL we're it strong. very really really would I

Daniel Brennan

have we guys. thing Same heard. Thanks, Yeah. Great.

Operator

go The Couillard will with Brandon from Please next ahead. question come Jefferies.

Brandon Couillard

Hey. Thanks question. taking the for

for the Just UK, planned has one more and X book-to-bill first NMR clarification, of If second exclude manufacturing-related or of Frank, the the installations the gigahertz Is two quarter half. the we timing? that in still orders. north been delayed in terms customer the orders

Frank Laukien

Good questions, Brandon.

of still above yes, systems. question, We So was X.X We gigahertz factory have the that X. couple been needed And book-to-bill second the two without a yes, UK related. more on would factory one these bit retesting months. and that of timelines of of for is four least rework needed in at months six and a the magnets and retesting to requires rework always the

don't year. we were best is as So the We second tell as delays, to got which half now and some very -- one there's pushed delays QX factory maybe some just of complicated are able it's think look revenue, to pushed one, we so incurred month hopefully why the are -- short advanced the There is answer. passed. QX others they in systems. can getting in internal successfully they ship to to going We

the the not will sort yes, bit is sometimes retesting work system that. in acknowledged the for of in QX, So needed. some little year. and factory always but And out not us of rework every a We've it's box, affecting

Brandon Couillard

outlook year your getting contribution to a And you. then $XX are outperforming about million Got the expectations? be looks revenue you Which raised M&A assets are better or the improvement. for

Frank Laukien

M&A-related question that an or? sorry, I'm was

Brandon Couillard

Yeah.

the up. revenue went year You're -- contribution for the from M&A

curious, outperforming most or contributing outlook? assets I'm just are improved which that of So

Frank Laukien

question. I that Even don't have granularity. Good

Justin Ward

break to out the an that's had deal the in quarter the individual think But, that. we're We yes, to each partially contributing and forecast to the additional guidance, don't so. going contributions asset Yeah. small for necessarily I

Frank Laukien

It's out. So bit one out, performing thing it's generally, small noteworthy. nothing stands little to then thing highlight. like additional the plan we'd to yeah, plan. But that of wasn't maybe that and It the so stands that's and acquisitions ahead a one they're

Brandon Couillard

helpful. That's Thank Very you. it.

Operator

Matt with will Sykes go Sachs. from next question Please come Your ahead. Goldman

Matt Sykes

I'll And question. Frank, Thanks a one. maybe it leave just taking high-level my questions. to for

mitigation, and and backlog, the not those but this customers year. measuring chain of some how out backlog products investments? level investments the to do You about to your deliver at supply reduce get think that in and if same additional capacity normalization about think you we want obviously over-invest, you As sort in time, the of

for solve about at supply-demand environment? to same you time, backlog, thinking So how for the investments solve those but are a balancing that future

Frank Laukien

almost really it's more decade a Matt, next question. for or the of year than rather Good two. of planning

and decade growth -- And seen you've So for depth recently, our we're so, is since we've about pretty good least seen the optimistic the of right? year. pandemic, this growth have our at high the next CapEx

integrated two quite been last in of and for spec or decade-plus and high has the elevated CapEx that's capacity three years, years kind BioSpin the next with building factory really facility. Our mass new

for pretty for significant of remainder for the hopefully also consolidated built geographical buffers, productivity. we've of lot substantially that not next we're as capacity area not the only course, decade. additional there, only not It's That, -- XX well. only -- It's during is capabilities, this the for more the And years, in to up Plus a grow going think it for because period. capacity we capacity near we same as productive generated the be factories Karlsruhe, BioSpin Germany. going two a to

Matt Sykes

you much. Thank Great. very

Frank Laukien

sense, two for investing reach or a it three or it we year that the whatever year backlog I'm really decade. that With investing is, not just reach and a for is

Matt Sykes

it. you. Got Thank

Justin Ward

like close X:XX, call right. with we'd All at Operator, that, to here. the we're so

Operator

Yes, sir, for remarks. you call closing I'll along pass the to

Justin Ward

today. Excellent. us Well, joining everybody, thank you, for

and an have at out free which follow-up day. Also, reach Day focus to XX, and Massachusetts you, Billerica, scheduled in-person/hybrid to me any has great Bruker for June our reminder, a headquarters spatial to please discussions. biology. As proteomics feel Investor will on primarily arrange Thank a

Operator

now The conference concluded. today's presentation. has for you attending Thank

now may You disconnect.

Bruker (BRKR) 4 May 232023 Q1 Earnings call transcript