Earnings call transcript Q2 2023

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Operator

Good morning and welcome to Bruker's Second 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]. this being that today. note also event recorded is Please conference to Justin Relations I like the and over Development. Investor would now of turn to Director Ward, Corporate Senior ahead, go sir. Please

Justin Ward

welcome XXXX Earnings and Call. morning. would good I'm and Ward, is Corporate Conference Bruker of Bruker's you, Quarter like Development. Senior My Thank Director to Second Corporation's everyone Justin I and name to Relations Investor

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

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

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

to would the X Safe Before like Statement, begin, Slide presentation. reference we on is of which Bruker's shown I Harbor

are XXXX, not XX, might and differences that period Form as on our cause website. earnings by call, will involve regarding website this differ statements. available Factors release risks During that logistics may to forward-looking including and in our and and company the such December SEC those include, The the from updated geopolitical limited statements SEC events uncertainties, future challenges. supply but actual those such discussed are to, company's we performance and the today's and chain and and financial materially the results related conference operational of which risks filings, be in inflation XX-K ending making on other for

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

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

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

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

Frank H. Laukien

thank you, everyone Thank call. Justin. XXXX joining on Good quarter morning, today's for and second us you earnings

and In acknowledge demand see industrial we market and to we general are the in cyclical government, continues truly markets, medical centers that bookings softer trends. more for quarter While good retail conditions applied of and continued academic second solutions. and semicon industry life Bruker science from scientific instruments XXXX our contra becoming differentiated academia, metrology growth saw

our the and growth in the reductions XXXX. technologies weakness. solutions in customer half We from partially often and unique quarter are us attribute of We continued pleased first bookings second both biopharma differentiated and well as performance, with budget which China, shield resiliency capabilities in and market as can in this in our and to

our of in XXXX. this single-digit mid-single we intend growth environment. in agile But to be solid organic second half expect We costs revenue macro also high managing digits to the choppier in

market acquired our services, neuroscience We proteomics software. discovery but tools, drug Accelerate solutions, drivers our in and Project proteomics scientific investments additional will consumables, spatial in particularly transformative and proteomics strategic X.X also continue biology, in recently research in applied growth

implies slight second growth year-over-year. in XX% currency quarter quarter included million, revenues BEST while exchange X. intercompany X.X%. delivered revenue the Bruker In from XX.X% basis, growth of which increased organic another XX.X% quarter rate and segment to with of second included in XX.X% of XXXX, revenues year-over-year. Bruker's of XX.X% scientific Slide XX.X%, of This of year-over-year reported growth XXXX non-GAAP EPS our organic $XXX.X to which XX.X% growth net Turning solid instruments a tailwind growth constant increased an X.X%. a acquisitions eliminations, On added organic and

Our both to second headwinds. product currency non-GAAP quarter bps quarter unfavorable well in mix year-over-year with the to as attributable XXXX decline gross as XX to a and XX.X% margin inflationary decreased

non-GAAP quarter Our OPEX margin initial to In acquisition of XX.X%, quarter XXXX of well earlier transitory we year-over-year XXXX, we in a XXX gave explained already Bruker was as the compared the year. margin the from the reported as discuss in XXXX. and second operating diluted $X.XX QX XXXX, decline due the drivers later quarter currency the of in basis, XX.X% detail. second EPS a and for diluted to second margins bps partially gross XXXX was to $X.XX decrease $X.XX when had in and in headwinds of GAAP as Gerald guidance anticipated our non-GAAP On EPS of up EPS increase XX.X%. more will of an $X.XX

XXXX, XXXX in non-GAAP X, and revenues year-over-year, XX.X% More XX.X% revenues Moving revenue billion. Slide first of instruments an half with to consisting increased of strong and of you scientific XX.X% first organic half basis, and excellent Bruker's EPS of growth at organic $X.XXX intercompany our by the growth can half performance net XX.X% execution XX.X% On of BEST, specifically, grew XX.X%. with organic to eliminations. organic growth in first see growth

book-to-bill remained grew order CALID double-digits our by Bruker BioSpin year-over-year for and the our X.X. for and above XXXX Instruments Scientific Bruker segment first First organically, ratio half bookings BSI driven half

which performance margin are and is space. science GAAP X, non-GAAP life Our all first believe gross tools the on summarized and the excellent non-GAAP EPS we XX.X%, and strong Slide non-EPS EPS and non-GAAP in -- can operating see of performance you half XXXX growth

measure growth return non-GAAP on strong focus our and that management invested and capital, process organic smart selected Our our XX.X%, highlights a Bruker trailing acquisitions. entrepreneurialism was by a disciplined and XX-month on metric supplemented

its grew across and new lab in Please the scientific the currency We academic revenue strong XXXX its research, explained year-over-year of as X growth software note single-digits. or X.X half first -- gigahertz now high division markets release. constant the of X the recent the scientific and platform, million and were NMRs basis. half novel of well in our XXXX all gigahertz that was Slide in gigahertz expect revenue XXXX, no the XXXX In the on of in groups the second half X XXXX. in to instruments half where to which now, there saw three highlight government, data revenue and turn in applied systems class some performance segment, of our into with XXXX. industrial integrated of with press first compared Please NMR solutions we BioSpin as first we first a a Group and in $XXX first gigahertz XXXX, X half class and revenue BioSpin In in of half shift early BEST

science half strong For XX XXXX, life growth and low IR, in well Group by percentage platform the the spectrometry Raman first the as the had CALID revenue business. as of in business IR timsTOF and with Near $XXX driven increased of and mass optics million aftermarket

final quantitation sensitivity expanded saw timsTOF timsTOF we peptide demand up anti-proteomics unbiased as revenue revenue Our launched XD molecular coverage and more applications Infectious In accurate drop consumables our demand throughput and now single-cell was with at to provides for robust proteomics. Disease which diagnostics more. platform for solid COVID-XX cell line of slightly the in tissue Microbiology metabolomics market-leading zero. and by near was Biotyper QX in Ultra, proteomics, MALDI modest and and and ASMS, XD a offset

tools. industrial with Slide percentage $XXX grew million revenue strong to in Nano XXs innovation microscopy was its also markets and surfaces tools semiconductor first half. includes and research and turn for on product NANO strong the across neuroscience from delivered and Inscopix Please revenues, recent strong in X revenue first Revenues acquisition now, the x-ray XXXX, demand including end our and low the science all and half metrology. Bruker government, a up the contribution revenue Life fluorescence academic of our was revenue advanced growth now growth research

driven from superconductor XXXX advanced customers. growth of for intercompany percentage OEM and tools FUSION Finally, share Science, for revenues semiconductor the in UV MRI customers by key mid-teens as technology gains and net half first grew revenues extreme by as well Research, BEST eliminations, in demand Big strong OEM

we On don't probably, plays and and chips, that R&D namely million some Slides usually this video XXXX tends production. which of manufacturing, rather at this FPGAs, closely, on in then of many keep unique how they familiar X let chip Slide driven high-bandwidth X. our you obviously intelligence, or AI There's memory overall by something Bruker revenue approximately message estimated be points chip to tools so to is development we is I our role a will take-home with, read the wanted that Moving chips, look you something you insertion highlight and metrology CPU serve AI, key increasing. systems trends, are X, artificial where that and GPU $XX our will to and leading similar, slide. think

and the latest Of the we're -- and as trends more less the I much that not have -- memory cloud course, fundamentals very, novel computing or us should to metrology exposed exposed pervasive there's in techniques here. only -- to we're much to generation the make for semiconductor other highlighted the strong This as the is in chips. from more very say, much more especially opportunity, from space,

course, on to over proteomics, Switching and of life science Slide X.

of transformative with really our best-in-class bar unbiased sensitivity timsTOF already for next-generation Ultra launched have ASMS in that sensitivity XD heard technology. may TIMS next-generation we further at new which source, new You technologies, XXXX ion for proteomics and the we believe, raises the and about proteomics

including which for well protein-protein cancer phosphoproteomics diseases discovery lipidomics, clinical More other low research and so of advantages and fields. All sample in important all brings types single-cell performance single-cell analysis, modification amounts, post-translational importantly, in this as interactions. proteomics significant as and drug is cutting-edge immunopeptidomics,

Bruker portfolio. demand our instruments across continued solid our to In and summary, for differentiated solutions experience

disciplined in in X.X areas in continue investments staying also with compelling Project infrastructure R&D make We opportunity and our cost. Accelerate to while agile commercial our and

our culture Our management of disciplined entrepreneurialism in technology execution continued unique leadership us areas, process and world-class many with Bruker and outperformance. for combined well provide applications biological

call Bruker's CFO, now financial QX will more performance XXXX in to our review over outlook me Let Gerald who detail. and Herman, year turn fiscal the

Gerald N. Herman

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

foreign decreased margin lower to operating basis non-GAAP and communicated impacted currency in and our and was a quarter inflation X.X as X.X%, performance points we've of down year. increased continued transitory larger result also the income and mix year-over-year XXX gross margin partially headwinds divisions. in earlier of Gross well operating of as from our several unfavorably non-GAAP investments, XXXX as the in XXXX acquisitions, margins second Accelerate QX Our by XX.X%, as Project

finished the quarter equivalents with investments approximately and cash We of cash, short-term second million. $XXX

cash fund we expenditures. X.X During generated in the of investments cash Project used to We the operating and of capital second $XX Accelerate quarter flow selected XXXX. million quarter,

free $XX.X million $XX.X four operating quarter resulting of cash have quarters. a XXXX. million outflow capital cash our XXXX. seasonally cash of second the in to of outflow flow the second investments with cash million quarter of $XX.X the quarter were cash second Our lowest tends Bruker's of of flow in compares free and million $XX.X This outflow expenditure in

of by the half XXXX while organic earlier. reviewed quarter the system our XX% XXXX, prior part the shows revenue to as quarter of research second class Frank the planned driven BioSpin's revenue originally Nano's gigahertz XX X.X revenue, XXXX. grew system for shifted a was flat of quarter Compared has gigahertz due into and in revenue strength quarter academic a range, XXXX XXXX, QX low essentially Slide the bridge second to in in second the XXXX, in has second businesses. industrial of for second organic Nano

XXXX CALID organic and aftermarket grew in with strong growth quarter aftermarket. single-digit spectroscopy. growth growth in second Americas grew systems growth and performance in segment solid percentage, the percentage high from mid-teens in grew quarter BSI with of revenue XX% in of had mid-single-digit proteomics basis revenue on revenue the high growth, Pacific the mid-teens our XXXX, and the high Geographically, single-digit revenue molecular all systems while European in We organic year-over-year. delivered percentage and the an Asia in range, second

it categorize we year-over-year. as small is up over quarter which second region, XXXX EMEA our For was XX% revenue

non-GAAP XX.X% and shows XXXX product XX XX.X% XXXX Non-GAAP foreign performance X the headwinds. mix Slide P&L posted margin second inflation we points a the and gross from due unfavorable quarter our basis in of decreased of basis. to on QX currency

Second the quarter, X.X second was XXX quarter XXXX we margin continuing of lower quarter Project in XXXX, Accelerate a put operating than foreign basis by up and headwind. acquisitions mix as recent XX.X% investments were margin impacted margin lower this non-GAAP gross initiatives, the XX.X% select in exchange points and we our strong in product of

For the XX.X% share XXXX over quarter rate jurisdictional of XXXX, the tax the in of shares reduction quarter second in at past diluted quarter from of effective mix. XXXX, the second X.X% up XX.X% Weighted quarter XXXX were XXXX, the resulting mostly average XX.X% second to non-GAAP driven million, XXX.X for of our quarter by repurchases approximately outstanding $X.XX, was finally, second to quarter our non-GAAP And a from the or compared compared the was shares favorable EPS of second million second which came XXXX. X.X months. XX of in

second top Slide XX.X%, first the XXXX. growth Slide largely drivers and was XXXX foreign to organic the for our million of the XX.X%. half Acquisitions added drivers of on with Revenue the while XXXX. XX, the XXXX, $XXX I've Frank half slide. including of was are results headwind. or as summarized XX covered Non-GAAP year-over-year P&L explained similar X.X% first revenue already the has of half first X% of bridge exchange for for shows revenue a on quarter up the to line,

half million half items. half of the of cash productivity XX. optimization. million of XXXX. the profitability other capital Turning first $XX $XX the from Including first $XX over to of up over and and capacity about $XXX.X operating In We million XXXX generated we half first of flow generated free expenditures Slide of XXXX, favorable flow, first in for higher higher XXXX, million the cash up expansion

first Turning strength we're the half revenue of Slide the given now XX, to in for revenue the XXXX, increasing our year. in guidance again

guidance. to revenue revenue for a of year-over-year, $X.XX increase X.X outlook fiscal raise of percentage of includes XXXX year X.X% billion $X.X range to to from of organic This updated an a guidance Our XX.X% growth billion. our includes prior point

This of our about of range to an expect X% a acquisition revenue We an to continue leads guidance. growth tailwind foreign reported to currency of of XX.X% in to X% X.X% prior and XX.X%, contribution about revenue growth. increase from our

of excluding we XXXX, XX recent continue organic basis foreign of effects In points operating and margin expansion, the to currency. expect our about acquisitions

in margins, Swiss partially for Franc due For quarters. in and from non-GAAP recent estimated XXX currency, dollar primarily decline with the steeper-than-expected headwinds the points operating the expect basis at against decline due XXXX, approximately a we year the year foreign the to headwind margin last this and from transitory Euro the of a U.S. operating full to prior few now acquisitions

and cadence single-digit mid Accordingly, quarter. expect of As year, typical third a third year slightly XXXX. the year-over-year then our organic and in was the high down fiscal XXXX non-GAAP strong, in exceptionally quarterly growth to and more EPS quarter quarter we EPS last a a revenue of fourth we reacceleration XXXX, of anticipate reminder, growth for

high to will given half the costs organic revenue While macro expect solid changing growth in XXXX, manage our single-digit mid second in of proactively also we range, environment. we the do percentage the

XXXX. EPS exchange X% bottom to headwind we're X% EPS. now to to slide. which represent estimated for $X.XX an XX% of year $X.XX year-over-year are or listed compared growth on of Other includes maintaining approximately non-GAAP guidance the would estimated that our this EPS assumptions foreign the On line, range to Note fiscal non-GAAP XXXX, non-GAAP $X.XX

ranges as Our fiscal June year for of rates XXXX XX, have updated XXXX. been currency foreign

I'd and To the With Q&A start and Justin the strong the wrap over turn like in that, to remain up, of first and growth XXXX Bruker delivered Thank beyond. excellent session. full growth we to XXXX, to much. very outlook organic revenue in confident our you EPS half call year

Justin Ward

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

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

Operator

this time, Puneet come Souda ahead. with from first [Operator Leerink go which we take At will Partners. Please Instructions]. will our question,

Puneet Souda

taking Hey, here. thanks Frank. Thanks for questions

and AI. a First on follow-up one, financial

First stepped in the one, down as maybe the for margin gross strength congrats line obviously Gerald. quarter, Obviously, quarter. the to on the great see But top and raised obviously well. meaningfully guide

being gigahertz the magnets that know the margin and in I the gross lower us for to and talk about op you and half. second a of land? how the EPS XQ orders think given But little sort X just Could these You XQ, how will for about lift. XQ about have that bit just maybe gross in you XQ. you cadence coming versus cadence margins talked impact talk

Frank H. Laukien

said Indeed, year. to And some X to we're that. it's in Puneet. to ultra-high take there the for of going might or that shifting gross half, second the I'll little has to possibly perhaps field QX. Hi, do the that some the when Yes, QX gigahertz margin product of with of XXXX. may be also X saying in and QX But a the weaker, into X being half mix we shifting second be X be in now X magnet

they think dominate field overall, don't big big-ticket quarter. you just that a I important items, see these but are

things don't manage And so them. we other around really -- we

kind fun can execute don't One quarter while a and them. or -- without our they're we like Formula it's with in they're So they of -- visible pretty but car,

Puneet Souda

for Obviously, expect that for a on you I are so that important talk on Alzheimer's being just about the rate to Got major get the how wild market, demand that trend, you reaching I'm talked has are there GPU and growth in that rate of there significant you chips to ask want some the clinical tempted then out PET. $XX bit far there And little and talked is could for to million imaging, expansion, of about that growth it. PET that. mean drugs two And so then AI a and MRI sort term. near estimates And about expected that? do GE are you themes Super. one. about

a as you. So minute take positioned with you PET Bruker imaging to talk could how Thank about is well? and respect

Frank H. Laukien

Right.

questions. your don't down obviously taking all be I'm of industry a and you. this I going I you're So But Starting that data we're to give that. that because big to We can have growth I actually data better AI, have Right. numbers. with big part feeling at think off small other looking growth it's

cooled We our -- of have had previously a bit of intensive that pulled a our computationally together not has revenue. established what is revenues obviously, big -- course, AI-related think there for generally and needs -- to we for also AI-related little only kind now similar a had off not baseline was, do we've previously that and point our

of rate. we carry and I We revenue And affects of meaningful a apologies growth have take just that amount but growth future of drivers. a with just data cannot answer, measurements good a it's obviously, internal one So realized don't give tends It us baseline you also while how for margins. Bruker to yet. our it this as Bruker's for quantitative this -- exciting is

believe it. you and The the what We our with offer the MRI PET well course, do to products, Very PET-MR of indeed, both and you rarely -- particular, world's only in implied be as clinical as question second leading the because we co-localization. in products supplying CT well To PET for important of MRI MRI preclinical MRI Alzheimer's leader them. true need an both And will is as PET know, are MR or in has we're MRI directly, neurodegenerative market become with we do them, and of as leaders same high-resolution materials various the world is superconducting more as PET-MR. providers on people will use the your clinical, and for associated I important. disease, which PET we

quite to is more many of the -- MRI, or are HP PET has successes we where they that well animal we while PET is good. are perhaps and but whether just rodent very models, an of, our only believe they're nonhuman quite some growth been areas skeleton it and in discovery -- that now positioned. also without in seems they other that -- as perhaps primates out, our preclinical some probably course, oncology And CT, cannot it we after extent indeed, preclinical there's, MRI, drug healthy research and the pipeline. segregate So MRI certainly or years And at the PET point growth failures, PET-MR honestly, are neurodegenerative we muscle to many, element be modest of towards and inflection poised research but

superconducting well MRI So preclinical that business. materials bodes business and for for our BEST our

long but that or the about longer Sorry answer, couldn't questions you no. yes with asked answered be some

Puneet Souda

Thank the I you appreciate Frank. No, context.

Operator

ahead. And of Please our come go Bruin next America. Derek question will with De from Bank

Michael Ryskin

think for X.X. about is first you Thanks little were stronger I ask the And book-to-bill in today, Derik. of to about greater XQ couple last I for bit the Great. than I XQ, quarter. on in being years first pacing half Mike talked question. believe you than a time orders. on taking for Ryskin bookings revenue said a This want the

in normalize just them on little sort it bookings So XQ, stronger you and could apples-to-apples little than markets a XQ, an order in front of third a basis a maybe on put bit, bit any bit are revenue, did which quarter? color customer little for better in on you the of classes, that terms come or provide could of still end do the

Frank H. Laukien

greater in order. than long-term sense these thing has still that which BEST QX makes was is for only because X BSI QX the indeed book-to-bill X-year

our our and at at QX business, X. segment look was the book-to-bill we roughly of Scientific their So Instruments XX%

on medical X.X, sometimes -- above many healthy. I participate many where There's our and Not of quite good, more bookings only healthy are still there. certainly but it not academic manufacturing, growth quarters, with in so use. centers, still So very had strongest, we you just China, and the drug tools you discovery in years discovery our I in budgets. tools in I also need clinical of when above guess, biopharma. the the centers. them. where And medical We're as in and strong tools Still on funding we of But side. many indispensable in X government, in and think been also that least quite good you development academic, quite down need translational in much from growth research book-to-bill not many more them, our lot as yet. has at apologize, a that academic so you can are cut growth used but in It's save geographically not when not something biologics research,

applied orders So of markets, some I and orders question, for hope orders semiconductor softer. and a shields choppier completeness, it metrology industrial now, Mike. from environment. let me the that us were And partially your Then answers little

of These unexpected. X of So cyclical slightly now bad, the that's bit which little has why that fairly down very book-to-bill, which still our need not to is to long to that closer bring times more these down getting into we in bring QX, certainly to are the a We over typical but next couple we're as more because are softer, is delivery backlog markets. need Not years. much. healthy

Michael Ryskin

color, spec. I that CALID And mass to bit then all appreciate on little want a for and thanks. follow-up, touch great. a That's I

products by the led and some them obviously, timsTOF demand strong about guys at on ASMS, touched talked at You Analyst Day. new you showcased

into Just curious you little dive mass performance spec bit if could a more.

just So on spec and Thanks. mass seeing you what launch any in early Ultra the learnings or are feedback broadly, land?

Frank H. Laukien

their comment on don't we them. or read claims. mass We specs Yes, companies, other

timsTOF Our platform. timsTOF is a and product not only line

lipidomics do Ultra the lot spec And we new interest. we the there But particularly So platform. specialty metabolomics, for fleX. for the is are of products ultrahigh-sensitivity high-throughput of routine for the timsTOF a some lot also but getting market. have targeted imaging remember, are mass timsTOF including proteomics, markets, is of multiomics, the a other derived with that It HT, timsTOF

really introduced it's can exciting is And ASMS and performance impressed recently, doing with we're what with course, quite people I really of platform well. very just product it think, an So very, that its are at entire do. new

the year, continue. nicely the half and that's fact. That's it has we expect -- throughout the news first CALID platform, to from is the been So very that and the of timsTOF growing

Michael Ryskin

thanks. Great,

Operator

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

Joshua Waldman

Hey, good morning. my Thanks taking Two questions. for for you.

or and the to mean medium-term follow-up I Mike's or number the and you're in quarters contributes Frank in Curious the First, the I growth work Gerald, how resiliency that supports on how question. a the down maybe backlog guess from contribution coming about down XXXX a guide. there that it? is think is base not case work backlog organic for that about way thinking

Gerald N. Herman

I'll take that one Josh. quickly,

are held you high a backlog, record to be high. and as got already from continue perspective, we've my the numbers So know,

of eight We for us. that's have over level backlog, a -- we estimated significant months and

virtue So get But does that it our quarter. backlog. to obviously reduce significant a That's multiple scale to has expectation through to mentioned, to to in it is particular of Frank to years fundamentally resiliency it will quarters as just we because that on take by going us execute forward backlog not us, do simply on rely need opposed as comes give that. when pushed incoming that orders

largest sizable be strong some to have continue of into divisions to that the have backlog other but fundamentally, quite slowly divisions seems we have the started our think our point across backlog. most that that backlog, I to and business is

think think, bodes particularly forward well, view, So the I on I for organic it our side.

Joshua Waldman

it's the implies systems, the high modestly Got The single-digit organic curious there comp difficult, and second the obviously, it. assumptions growth Then Gerald, headwind, I I half. takes gig mid the mean, X underpinning through you wondered could if right? to and for it maybe talk a to additional step only down. any puts net you like could the that then is the on on sounds more impacts walk is color provide a

Gerald N. Herman

all, in of is, mean up, guess XX.X% headwind. organic net it growth back as on revenue I course, characterize our wouldn't I first half. first perspective -- the of posted I we the

costs strong guide a I So appears We also very backlog, execute space. move organic quarter. is on hope the growth. of as third do midpoint, the fourth as which We quarter. our is particular. have significant, expectation and stronger certainly, We the the to at -- some third for -- do and Bruker, we'll just the We exceptionally forward. significant overall had not we both is in we on that even And it an only of think, but is in the I on amount strong XX.X% that's said, fourth our quarter third have which improve in in that

So the color it's performance, us going that in sunny forward. is to be our Billerica to revenue continued here expect and relative way I to think it's organic that for

Frank H. Laukien

So obviously for are first choppier. quite see others a continued be strong to orders as half, in that. resilient growing very There mix, strong It's us. that markets were and continue can we We not little resilient In as demand acknowledge far backlog, here. as continued the fast the year last that it. are some we're getting they as

our next say, medium-term You Day Investor I gave that for the guidance, know few our long-term should we at years. guidance or just

of consistent are don't expectations half the second grow half. anymore pace of XX% our if we even the with at certainly, So plus torrid first that

Joshua Waldman

Got it, guys. Thanks good to hear.

Frank H. Laukien

Josh. Thanks

Operator

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

Daniel Arias

production And about would own up XX period just BioSpin, how bringing then times good new months and to exiting guys. the terms reached XX you change morning lead think look think think a over steady your do or can installations the the Thank there just capabilities, or you shouldn't NMR on of some etcetera, last you've you of are that over Hey, state in that acceptance you still that say that when there customer you. Frank, improves lead you things site, the and times sort today? Germany really COVID do months. next

Frank H. Laukien

times. still Dan, and they -- should next No, the coming quarters. bring NMR should over high, in Yes. we exceptionally still the lead be down They're future

And steady We we that by the -- not delays isn't our were leading-edge products. so were this some So had gigahertz right. our that state. NMRs, --

of I think BioSpin modifications of second quarter's the did the happen. and good easily need factory, first But in to require delay demand that it's from round systems. of very they when that some ramp also been capacity sometimes very, can and happen half So we other some at Bookings has our and to continue mean, to to or be honestly, a quite test a That installations. field we excellent. the factory have they'll means everything been strong. tests

decades, CAPEX And need yes, and So are wonderful. productivity, more in actually, down seen or capacity sort years, year to we of and but done. them many decade this capacity so year, over the we last need a the areas these times problem, we're kind for and we also think few our but next for to and with that's true high-quality the be growth. It's in building of elevated last so that you've actually, bring work

Daniel Arias

Okay.

make to customer now, just related, sure So rather are XX to months more if it's lead anything right. times do that from internal your want have than improved have with own I processes chances

Frank H. Laukien

I yes. that's a think assumption, reasonable

Daniel Arias

you spend, of what know program, for investment that for I'm to kind then point NMR totality off at to you gotten outlook that up investing academic X.X XXXX on as say it how And hadn't sort just think then it's the an the point? extent. But orders do I on in XXXX to curious maybe versus much the plan guide, XXXX thing have make thing Accelerate to been when Okay. another kind look -- and pushed is continuous would sorry, on it X.X the thing? just Gerald, to of sure have of of straight. X of X.X a just I And a you If fair maybe

Frank H. Laukien

ultra-high one, the around mean So on depends I $XX all these NMR, It right. there's system a range. whether first fields, the X.X, on X.X, roughly but maybe a is very on it's million, X.X,

yes, is So different. it

that's bp you size a XX if I like. So like suppose,

it's it's not unimportant. It's but So that meaningful, significant. not

Gerald N. Herman

are others upside have takes about be -- concern are and that we some we and say I'd There downside. elements we puts hope will the have we in that guide.

-- the see at as moment. so guidance take those into that all we we And I think the factored that into the

Frank H. Laukien

To Accelerate track Obviously, of investment on I correctly, Project we're the your a second X.X if it there. question, multiyear understood about investments. part

we period revenue. our guidance, giving at But of as that not we're during Investor the medium-term R&D keep we guidance investments near of our expect course. we XX% medium-term would XXXX -- gave till said time that's So XXXX to guidance Day, that for

Gerald N. Herman

in And as going business that commercial as on elements to faster-growing support investments you see also, well. of are we have the of and area marketing sales a number the the

Frank H. Laukien

very that worked going growth for are doing EPS while we're and this parallel. faster in company, a X% next growth significant our also we're sure, delivering high years. more absolute EPS investing in EPS to this extremely a as making X%, first for the growth our investments we guidance It's enough for us good on second maximizing half which coming year, single way future and and Gerald has and Accelerate. excellent No, mid growth growth. growth well. focusing and digit with transformation It's was nicely the really delivering along growth, the and few gave the an looking in and And in speaking, relatively to specifically It's -- out or the organic what Project half medium-term from

we're are off. paying investments We're -- right. the So

Daniel Arias

you. Okay, thank

Operator

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

Patrick Donnelly

set China off quarter you're industry the saw feeling the piece, comment hear markets. what had the the just and you're how terms even went and Questions. in July. some on maybe of willing the little guess, shook Frank, on you those go in be two you changed bit expand kind little as guys Can encouraging if would anything there. of a great to linearity, a issues I It concerns to guys on about, biopharma you peer forward Obviously, of talk bit on if to just there? in

Frank H. Laukien

if had order highlighted growth call. we we particularly earnings you We that and strong QX Yes. in recall, had -- our on in China QX,

additional program lo/stimulus -- we China disproportionately been that had expected that items, to our And except demand for was of have think. expect benefited I things continue not big otherwise, some ticket so and purchased of that that would with real we we and where

expect would it some year. also, within And pull be the forward of we

wasn't see However, in to exceptional still It was good so good, government didn't for China quite go but as quarter was China. our orders and [ph], from we QX, good. it in academic growth center quite academic salmon medical was from still second fees but to it continue and orders

the month within last quarter, So in orders the quarter. more the it just doesn't That's business. -- a of you're our when most instruments on of come

even that's a trends we at more or meaningful. So for quarter don't make for more particularly not look that have data That's We so. does us looking sense. companies that had would revenue at have within other consumables

Gerald N. Herman

And Patrick, other one just side. maybe additional from my comment

the from revenue quarter performance was second good and in significant from the So continue the really China above average. to backlog levels in there's China actually there be corporate

So there to restriction by work way issues, quite revenue. down, and we will a backlog and of level have constrained work some those, then some been the export we've but hopefully, through into that our somewhat fall we

Frank H. Laukien

We export delay, not filling.

Gerald N. Herman

export... our on Delays

Patrick Donnelly

Frank. then Alright. Understood. And a quick one,

Just I was to to book-to-bill is of X. lot mean, orders backlog. BSI I a There's safe the follow hovering commentary. on and assume it book-to-bill the appreciate around up focus if there.

the XX% grew think I quarter. organic BSI in

to So there double up that say? digits, orders fair is

Frank H. Laukien

I earlier book-to-bill our as sure in everything was Mike, not X. mentioned I'm QX, to I caught around BSI So

The second part, I...

Patrick Donnelly

safe is as well? it double to that grew orders XX%, say Given digits BSI were up

Frank H. Laukien

growth. was first double-digit The certainly half

were Now QX the year year bookings a right, that quarter growing I right -- second than because of less ago, a bookings the bookings ago.

Gerald N. Herman

the we the first year-over-year. organically And double-digit some up in add to in quarter, bookings. bookings that also of at forward in orders, in look the think saw, first makes it Patrick, some China we we might of I the really the the half Yes. half as of articulated lumpiness given pull first again, the sense were

it to forward. in makes half. So But was keep Frank look we quarter aim there's to did hovering in it just second first the so as X, going book-to-bill much area at around that lumpiness that from sense state quarter-to-quarter that we think which

Frank H. Laukien

In below strong to work to in some that solid, not as build quarters, we'll Still backlog. off have to QX. as come the

Patrick Donnelly

you. Understood, thank

Operator

Dan question next Our Cowen. Please Brennan with go will from come ahead.

Daniel Brennan

what orders Gerald dynamics the kind Thanks trajectory in of today? think, would of you. second the you Obviously, to be get thank guys are early just be that significant, is what and the what backlog of about taking trajectory questions. trying Frank. Frank sticking from on Great, today and XX% thinking one for half order the Maybe with seeing do might read sense organic of on growth, the you a sense but and just the any kind you

Frank H. Laukien

a to CAGR Day our Investor growth at X%, than our Dan, single gave saw not of we a it's even a imply which comment. high multiyear of That's really to comments, But Well, XXXX X% we digits. Day little our other have XXXX you mid no It's gave and we specific multiyear at would that's that comment. just not bit organic guidance. XXXX multiyear that comment a Investor

mean lot. half, So look we order And we'll know I the and we'll what something dynamics second in what the pipeline, opportunities QX. report QX That's have we strong. mean -- the after a that's that's not

QX, in really So than of about this greater know. been that's in year always all the segment, BSI we X X, greater far, book-to-bill and sort than has X for QX

Daniel Brennan

And how to seem at academics just that. broadly they budget. elsewhere, are think quarter while how sounds academic for QX, And there it your it this for you. quarter, about was you about tighter thank some peers Frank, like spot spending bright I a struggled but concerns solid be another over

wondering beyond? see So of we half the kind for market I'm you how the as to global back of out and look academic just year of the kind

Frank H. Laukien

Yes, academic centers old chemistry. or center of departments good more cancer than important. medical in is more government. research in academic centers and Again, becoming lot money There's more a neuroscience

good hood research very pathology is and under of academic academic our last for medical strong more been good, bucket us. particularly clinical academia, has the been center has shift in decade. the in towards And what's -- disease academic is that but within biology, the that in So research shows government translational

are which little course, are the concerns various second and the Europe budgets, Europe, bit down of the things also Japan. yet in been has in budgets still even about again, and but the equivalent there some of there's been the like Science It's Yes, a in delayed been hasn't China some strong. U.S., it's all until U.S. specifically. then the half, investment Germany Act, trickled NIH and in right. strong nonacademic, in CHIPS Act the course. spending in But Academic

with in to it's be were just while, a -- is government but biopharma know I academic and for us biopharma, area -- strong. for So continues a people fantastic

partially solutions, our which as due shielded rather just Bruker, products macro and products immune but of and blow think winds the macro does we So way resilient us technologies. are mean not we're and to to our somewhat unique I

Daniel Brennan

thanks thanks Frank, Gerald. Great,

Operator

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

Rachel Vatnsdal

for I up Patrick's wanted follow China. thank my question morning. to Hey, you earlier on taking about And good questions.

what in in mentioned in Can that tranches additional on there year's could from XQ, the the China? the high peers us and this We've China growth some coming contemplated your guidance? was and you are how of in give was expectations in released XXs. And region. what did is stimulus quarter you you then growth that so the that are orders hearing specific there So a in some APAC being be your as stimulus follow-up, what heard what grow

Gerald N. Herman

Rachel, Hi you. to morning Gerald. it's Good

China for would first the China, robust I revenue Just demand say, generally half. order performance robust and on in

that just that. so that quite around what a in doing we've of the certainly, these clear. in stimulus not some What at somewhat China a we're we've think information. off When far It's is bit But additional positive of on interest not suddenly government the that GDP surprise seen with very Chinese there are is interest program. I level. heard we is the there's Street that the hearing about following same

Frank H. Laukien

in on across reading based is the this think there's of things that speculative at rather than hard a mean lot of But industry, I that point speculation happen just I even from lot half. may a Yes. second data. the about

is what our based for on not second hope. -- given but So the what guidance we've half -- we half and year and full I think the you second color

Gerald N. Herman

that and earlier, significant have execute in. we've mentioned would Rachel just that's we We I on it, backlog in -- Yes. to baked what that have China. be

Frank H. Laukien

when we with have looking report we'll all it. on don't yet. hat hang of anything So but great our to And at this we yes, we're interest, do,

Rachel Vatnsdal

me. factor more rolling one just BEST, really On then the And growing and the limiting throughout off. there for year about talked chain Great. the supply was you previously

think growth was we kind you can you. So chain year? sequentially driving that those through the And should back XX% this about that impressive. segment pretty of about is How factor half how talk throughout supply Thank of obviously then quarter the numbers?

Frank H. Laukien

we've areas Supply gradually market even Chain long-term and made the like cannot we gaining of and share, completely we're multiyear in getting It is whereas normalized investments ahead And react And But logistics supply better. gradually but Logistics I is because some still not improving, I think, materials. superconducting why It constrained. is strong that's chain very the are execution. enough. it that. think now curve, others still fast have requires a multiyear

is I growth think higher also over partly different that we drag have It or but same but a years. and again. still while a in it backlog a down way a is two a shown of saying quarter that the in over on couple isn’t coming then which and it over

it anymore. So, is a headline but is a just is topic, better topic it getting it still not

Justin Ward

have one please. question we Operator, for maybe time from more one more participant,

Operator

go Research. last question come ahead. Please from here with Nephron Jack will Meehan Our

Jack Meehan

of family potential that new you instrument for there's up morning. wanted with pricing timsTOF dialogue Thank pricing. you, timsTOF's ask think and to how trending I about early Curious instrument to pull around these blended good is with customers Ultra, launches? do the just some the

Frank H. Laukien

out fleX time, the and the range. came And the the of multiomics, prices for for years I of capability Ultra imaging is range. also spec for additional sort carry selling Yes, couple been million-plus ago in that targeted with it's some SCP trending timsTOF timsTOF that higher million the right. mass a single-cell also $X up Obviously, above mean and in proteomics

the instrumentation time, market going timsTOF that on million -- that go and continue come to pricing trends on above be timsTOF been up. trend that indeed, has be the right some launching and average So tends It's the so family platform some has now. may not to a seems up ASP $X the to for also up for high-end for are competitive given that

Jack Meehan

about... talked Great. Gerald, you And

Frank H. Laukien

mix models within the not But platform. instrument. mix simply of it's it's the for the That’s of models,

Jack Meehan

you Gerald, that is Great. Can you're targeting? talk you're where you and proactively much managing just with focused about about talked to how Thanks. costs. possible quantify it

Gerald N. Herman

disciplined mean, Bruker's will all Look, disciplined I pretty entrepreneurialism, time. I philosophy so that the we're costs on is say

now stretch so. organization where very look a be will is continue and is beginning be focused discretionary from and very to any we the by deep we on surgery slightly. think areas to focus tighten at this our can Our just This spending in

we going any to to So be what in our not think to That's management. color do. on disciplined going we I'm numbers. continue But we're cost provide

Frank H. Laukien

sometimes obviously, ignore now have It's going tweaking. meaningful hiring, And restructuring. and sometimes you are spending It's you the macro. that what's that it's reduce, because, for We right a choppier us. cannot that you levers those you can around always not defer We're can on we've aiming savings discretionary we're already. on working implemented

Operator

question-and-answer to closing And turn Alright. Ward session. to this any for like concludes Justin back the our I'd over conference remarks.

Justin Ward

an Have a joining any everybody to today. team you reach great us event third you out follow-up. we Please arrange directly day. to to to with forward quarter. the free thank Bruker's leadership Well, during looks at want to or me with feel speaking for meeting

Operator

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

lines. may disconnect You your now

Bruker (BRKR) 3 Aug 232023 Q2 Earnings call transcript