BIO - Earnings call transcript Q4 2024 | Bio-Rad Laboratories, Inc.

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Operator

Thank you for standing by. My name is Prila, and I will be your conference operator today. At this time, I would like to welcome everyone to the Bio-Rad Fourth Quarter and Full Year 2024 Results Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Edward Chung, Head of Investor Relations.

You may begin.

Yong Chung

operator. Thanks, and joining everyone, you thank afternoon, us. for Good fourth full an year we on will financial and the review Bio-Rad. for provide Today, XXXX quarter results business trends key update and

today are me Officer; DiVincenzo, and Lakkaraju, and President Chief the Roop With Operating and Vice Norman Jon Officer; on Chief Executive our Chief Schwartz, Financial Executive call President Officer.

expectations, will management's I assumptions begin like events to are and we our goals, risks that to about statements review, statements would are uncertainties. future that and be we and performance forward-looking Before everyone making These future financial other our plans remind and subject expectations matters. of on based

may Our goals from expectations. differ plans, these materially actual results and

statements, the to our intend forward-looking factors does and during I You to where place SEC in company the any call should detail not encourage filings our review forward-looking undue the with not discuss update these reliance in we The risk made business. you statements today. on

Finally, measures of net financial the income review principles. reconciliation our earnings should non-GAAP measures financials, non-GAAP contained defined are diluted which include including will Investors per share, comparable release. are generally remarks GAAP accepted and not the under our accounting to to results in these that references today earnings

With turn Operating call the will Officer, that, now I Jon over to DiVincenzo. Chief our

Jonathan DiVincenzo

joining Since on the Bio-Rad key joining focusing for call. in achieving X I'm today's strategic everyone, made we've transformation. progress share milestones you, in excited and ago, thank to and aligning Hello, execution our priorities, months our

margin for XXXX successfully we August. First, both report met I'm that last to revenue operating and presented revised guidance as our pleased

by business was better the Life Science diagnostics our affected while than clinical forecasted, softness slightly market. biopharma in segment performed continued Our

in improvements our management. rationalization acquire our into I'm our complement also manufacturing sustained in challenges, chain to to through some improvements, we've we gross in be effective announce Technologies, and our portfolio. by cost initiatives sites digital and our achieved P&L believe of global significantly XXXX productivity XXXX. footprint Stilla our move excited driven These lean will offer entered that margin a expansion supply binding PCR Despite in revenue a will we execution

Stilla's enhance research applied forward, and strategy platform digital diagnostics, expand in product us our to offerings Going would our in allowing clinical PCR.

subject We expect with XXXX, relevant the transaction and end representatives, closing QX to regulatory employee close the conditions. of to at customary approvals consultation

streamline financial toward better for our Additionally, designed to goals These and to Bio-Rad cost actions we've XXXX our position strategic and for taken move we as further are beyond. steps structure. success

Looking across as past with Diagnostic saw we markets, performed the we've expected the trends over demand. year. global our broad-based continued experienced

to related However, China certain not clinical fourth diagnostic testing Pacific due tests the the nationwide. earlier-than-expected for adoption region procurement, decline rates during Asia the change in reimbursement volume-based to diabetes saw a adjustment, This quarter. standardizes of a for

of anticipate We mind for don't China in reimbursement currently further total represents diagnostics Keep revenue. in percentage high single-digit XXXX. changes Bio-Rad's that

China remained in in half second In in We and seasonal XXXX, from customers XXXX. biopharma improved a uptick soft. we chromatography of And demand process accounts. expect and academic we area the Life research seeing see recovery, are though did our modest Science, in growth sales in a biopharma this

media, our our increased chromatography business. outlook the with encouraged the process also activity new future which for bodes are for well in We programs using

for our strong year-over-year. Interest win-loss continued For low in double-digit portfolio, our assays saw consumables gene Droplet for and we're we Digital demand cell and and platform. our and oncology for remains maintaining growth reagents ratios high, therapy PCR with applications strong

a sector. particularly biopharma XXXX, gradual recovery, Entering the expect we in

building and soft, instruments remain conversations funnel. more for a we with customers having biopharma demand healthy are While order

is the recovery science of uptake pace in of short impact to instrumentation term. However, life this the likely gradual

segment, funding XXXX, any change have factored has we and in in academic dynamics not research soft the throughout been globally In for XXXX.

we Germany modest early of and funding programs. announcement its the of in week's U.K., understand China we're continues be U.S. in need funding. improvement the while remained cap indirect In soft. for more And Europe, impact, Asia, the last research mixed due in NIH France increases to on seeing in However, to some stimulus if information any, signs to with funding

you, We the strategy. of on discussed to as I've remains many e-commerce Bio-Rad's consumables excellence. increase remains with in and of And operational and So of part our at XXXX, heart prioritize as attachment aim focus growth innovation strategy. our commercial growth long-term

our acquisition platform, chromatography market. portfolio, our Digital about new we're system, imaging NGC including a system Stilla, version updates of excited the for refreshed of our QXXXX key diagnostic a Beyond anticipated Pro PCR and the ChemiDoc to

purification chromatography with our prepacked resins We're enhance process larger the launch column capabilities. portfolio also Nuvia expanding that of and additional a XX-centimeter

continue program progress, see it part we XXXX of portfolio Our digital significant important to making an QX is and beyond. our in Continuum PCR as and

we revenue view stone a towards So stepping XXXX stronger growth outlook, as the given moderated profitable growth.

innovation, driving productivity our cost supply enhancing and chain initiatives implementing to support improvement. and continue will margin We

line As life market we is well growth. believe positioned normalizes, the to Bio-Rad top science leverage

now support. the you So financial I Roop continued you review pass to thank results. for your to will

Roop Lakkaraju

were and represents start Thank on with $XXX Good XXXX basis a the to of a a of versus million, decline QX the of reported for which results. like quarter quarter fourth review you, XXXX year in full approximately sales $XXX million I'd X% fourth afternoon. Jon. Net XXXX.

quarter Life year-over-year X.X% in QX XXXX, regions. this in to Life sales on due fourth the and were decreased XXXX sales segment. our the currency-neutral X.X% across basis, million currency-neutral a is basis. to of Science a was a On Sales $XXX Science reported a on all group $XXX lower in of decrease and of compared of X% approximately million decline which basis a Currency-neutral represents

increased revenue basis. Science X.X% Group Life on year-over-year core sales, and dermatography a currency-neutral X% process Excluding

single approximately $XXX consumable low million currency-neutral a digit of improved by a quarter and Diagnostics increase Sales $XXX which mid-single growth X.X% were XXXX Group Core fourth digits QX that on basis. the a the is sales compared year-over-year. of XXXX, to in of and million reported basis X.X% was in on of an Clinical sequentially Life Sciences driven

of margin experienced Diagnostics amount. the points increased by approximately estimated driven by due million the reimbursement primarily XX Growth higher was typing reduced China same quality mid-single-digit that demand revenue intra-quarter our our blood sales the an portfolio by or and gross QX change for to decline Offsetting products. affected and diabetes basis control demand, a

a gross China. and expense to compared reported fourth was test decrease sales XX.X% GAAP XXXX. for increased in as the to Americas. restructuring The in QX of in margin EMEA footprint rightsize was diabetes our On a geographic driven currency-neutral the impact reduction basis, XX.X% the further margin and of in reimbursement gross by quarter

million actions annualized yield XXXX in should with we alluded manage reduction these XXXX. Jon to our our headcount are global recent organization. The is a million the for structure approximately contemplated of X% million including in our guidance to fully $XX $XX million of to $XX further $XX to impact workforce continuing earlier, cost As to savings savings align and proactively implementation in of of

fourth approximately X.X% approximately million and of or development $XX million fourth was the XXXX. sales quarter XX.X% in sales XX.X% SG&A of $XXX or of or were Research million to of QX million expenses in in expense quarter of XX.X% compared XXXX compared or QX for to $XX $XXX XXXX. sales of

compared of was $XX operating sales million to $XX approximately QX X.X% XX% or income or QX in of sales of XXXX. million

the of a diluted other and are year. loss change period substantially holdings, income effective treatment AG rate versus loss securities. market of or $XX.XX which Sartorius resulted led XXXX. of related interest by affected quarter, fourth accounting quarter reported income resulted million, equity which fair effective XX.X% of equity value a in periods net The other is to share. was these was $XXX The The the which the compared net of for loss, million to shares, $X XX.X% the for the During $XXX primarily the same our in reported per of unchanged rate to XXXX security prior tax ownership tax in in million in

non-GAAP reconciliation of XX.X% table the exclude both and operating atypical certain items press and that to detailed unique our are compared Non-GAAP the QX gross impact Fourth which in results. margin income in XX.X% financial quarter was measures, XXXX. in margins Moving gross release. and other non-GAAP to

effective compared XX.X% in compared to the non-GAAP XXXX. quarter Non-GAAP rate fourth was in was XX.X% Fourth of for operating XXXX. same period XXXX for to the tax XX.X% XX.X% quarter margin

or Finally, per of non-GAAP XXXX quarter share. $X.XX was net million income earnings the for $XX diluted fourth

on currency-neutral a $X.XX this XXXX, billion Currency-neutral sales Net decrease Science for and for $X.XXX X.X% billion, decline a On which results. Clinical XXXX, and and the basis. the represents by driven versus segment. a regions. XXXX a compared of X.X% a Life basis, reported currency-neutral billion a was for to reported a across Life on sales were billion in XX.X% approximately sales our Group of Sales were of $X.XX the basis compared represents full X.X% all billion basis now $X.XXX for were full lower decline in Group a in increase on $X.XXX XXXX. Diagnostics which XXXX XXXX And basis. Sales Science represents decreased $X.XX billion growth basis currency-neutral primarily year the year X.X% of a on to is XX.X% on which reported a in

typing a regions. geographic increased Diagnostics blood revenue was driven demand all control quality of by across On primarily basis, products. for Growth and currency-neutral our X grew

XX% by non-GAAP of year-over-year As margin the impact year The product made we was gross in full increase throughout targeted, improvements driven year overall to and compared favorable a mainly XXXX. mix. reached XX.X% operational margin the had

due sales employee-related million Full XX.X% of SG&A expense lower decrease in year discretionary primarily expense of in in XXXX. reduction or $XXX was $XXX or spending XX.X% was dollars SG&A to The a costs. and to non-GAAP million compared

The non-GAAP or R&D onetime million of million due to was in sales XX% $XX to a versus of $XXX primarily Full in R&D development non-GAAP acquisition. in-process $XXX year expense X.X% research acquired was Sabre or million and Bio XXXX. the increase related

by XX.X% R&D product impact margin and in year which XX.X% offset operating favorable of decline aforementioned mix compared revenue the the and of in-process operational expense, the to Full effects non-GAAP XXXX, was improvements. reflects

XXXX effective the the full rate Lastly, XX.X%. non-GAAP year for tax of was

of million from we the cash in continue of billion of at the XXXX. to compared end $X.XXX Inventory at at billion QX balance the end short-term XXXX for investments million, down was $X.XXX make end as Total reducing inventory. $XXX progress and quarter the $XXX QX to Moving the sheet. prior QX to on

activities operating approximately compared to of from the fourth XXXX. $XXX generated was quarter XXXX, For for of QX net cash $XX million million

the the was from cash efforts versus $XXX year XXXX million of capital $XXX driven million working net to focused full in by efficiency. improving For XXXX, generated operations and improved in

capital the and amortization year Depreciation fourth expenditures $XX approximately Net were $XX and full the expenditures of quarter XXXX quarter million were net for million capital $XXX year. where million. full $XXX million for for fourth was the

XXXX $XX of XX. to compares was cash quarter free Fourth flow approximately QX million which million, in $XX

repurchases. year For shares we've free over million. XXXX. compares totaled $XXX the year share the flow years, And over XXX,XXX full which million for $XXX $XXX of million approximately for year was for XXXX $XXX deployed the Full to million cash full approximately past 'XX, of buybacks

we expect dynamic the current have million further buybacks $XXX repurchases approximately under Considering the authorized environment, for do program. board and to available share current

Moving revenue We're X.X%, a full the the which and for growth to to guiding currency-neutral any XXXX. from for on year non-GAAP be acquisitions. guidance between excludes X.X% revenue

QX revenue an currency-neutral X% Group be be sequentially improving poised basis growth expected and Science approximately each and is to as-reported year-over-year On quarter. our chromatography on basis, to is expected processed single to X% digits. between to X.X% Life high a then business lower with X.X% year-over-year increase

a NIH sales. Overall, -- soft NIH total academic but consider that is proposed dynamic last component not not this week's our of significant indirect contemplates spending outlook does funding a actions. environment, Note

and the estimate segment is government academic that NIH. including U.S. academic U.S. segment we A research, single-digit government of percent of the Specifically, Bio-Rad funded represents approximately a and federally revenue. high subset our

exposure our X% federally total research revenue. our approximately estimate as We of funded

growth For X% group, X%. revenue and make to currency-neutral have to be the Diagnostics between we

testing basis approximately XXX a XXXX diagnostics our As impact outlook exit point the a growth clinical in reminder, basis approximately for from due from diabetes the partner's in a screening reimbursement XX for impact China. includes the business donor reduction to and

margin Subsequent target the headwind basis, exiting reimbursement approximately gross the On business. related steady expect productivity high is benefits to our XXXX. QX continued gross of operational margin diabetes point gross we QX, non-GAAP for reduction margin a sales volume. projected because to from to improved basis efficiency and includes look to and Full and like be QX's initiatives we year XX.X% our the the sequential and margin be between gross incremental XX% range. improvement XX% expect year in XX to We the quarterly

and approximate Full U.S. year on projected XXX basis or of change, the effect XX an drag representing is as the XX% headwind XX.X%. point well between basis point margin. $XX non-GAAP the gross point operating and as the earlier strengthening be includes through mentioned revenue headwinds margin to XX million reimbursement as from approximately from basis the dollar XXXX This

we addition, The million considered Sabre key progress summer XX have to plan a our or in R&D XXXX. and with impact both and expense which been nice last $XX is which a point GAAP development are range. non-GAAP Bio, impact, in guidance and would achieve results making a purchased In milestone potential we result basis

as $XXX for support rate estimate we infrastructure million be for to million our as free to We projected We to XX%. our transformation. approximately approximately is $XXX in million XXXX. cash cash, million invest multiyear CApEx $XXX to $XXX approximately year full to of to non-GAAP anticipate tax continue year $XXX flow full to XXXX be compared a million

I'll the turn With to call over his Norman remarks. for now that,

Norman Schwartz

Roop. Thanks,

and Just a on Jon take build maybe comments. and Roop's minute

think was productive year. I that a XXXX certainly

several the of focused assembled driving running all improving expansion, that's a First, in we the markets. been despite at ground driving new tasked end key leadership line hit They've performance our growth team on headwinds with kind certainly margin top Bio-Rad. of and

key and offerings. portfolio, like expanded applications. Go products with Imaging the on the growing ChemiDoc think introduced cell our portfolio for innovation product building we've our advanced core new As platform ddPCR biology I our and System refreshed

important it's made that potentially technology think best-in-class companies OncoCyte. our also using and I ddPCR diagnostics like with we Geneoscopy investments in

To growth what initiatives, we M&A we're internally. have complement to at our looked doing support

our space. I think digital Stilla, anticipated provide accelerate a and is acquisition should ability of our good tools example to PCR which the enabling broaden in

high Sabre acquired technology, cell droplet As utilizing T entirely novel principally mentioned, the we throughput antibodies an core of discovery new biopharma also for receptors, and platform recently Bio, our really enabling market.

we guess in rate very company business So the our position investing for for with positions our our to while Diagnostics, core to their globally all of returned pandemic support all, the be growth I intact. I'd diagnostics Clinical here like to strategy molecular to growth future are that new our has In a its normalized building market leading platforms, view reiterate focus and much in and growth post segment.

our cell chromatography our to products course, area of academic digital other and well PCR development new focus digital around as Science, to biology. biopharma and areas continue we in And in on broaden as for especially invest markets. in Life to we the Similarly, PCR continue offerings our focus process

interest summary, all guess aligned support in and we believe and in this positioned you to overall, for as I And I period. well in dynamic drive our well thank current markets your long-term move we're through growth Bio-Rad.

turn that, So to back maybe Ed? with over I'll it Ed.

Yong Chung

today. take prepared Operator? our remarks concludes the That line open We'll questions. your to now

Operator

first the of Donnelly from Citi. Patrick [Operator question Instructions] Your line with comes

Unknown Analyst

I was X.X% I growth high you guide, ddPCR single what just on X.X%? to said wondering Patrick. for You process for ] at Life on but that have Science's what does I the chrome is just imply, digit, [ considered. ddPCR know guess, Lizzy guess,

Roop Lakkaraju

chrome overall, gave ddPCR, from to ddPCR, a an single-digit more from X% in it's kind So over we process the a range. -- towards high X% the of but

included just Just a that just range. acquisition we to acquisition And that announced, announced as the we reinforce. isn't proposed reminder, our that in

see would that upon that depending this closes where year. we being potentially so additive And as

Unknown Analyst

$XX.X Got the the get guess, for year, but I the the you it on end? million this Like margin you high what there, margin gets million, to walk the the can it. gross for $XX low to And end, just And be that's just what's different guide, then me. guide curious scenarios? through you

Roop Lakkaraju

Yes, of course.

up being ability at midpoint march really end the primarily. obviously, So about to is the market XX.XX% dependent,

about soft. any academia so signals And the think year. as these And there we come continues how biopharma, is the soft into China sort as stimulus actually remains still we provide think of although relatively to things. some Biotech, evolve, uplift, can improvement, of are I

end. us can So those higher things take to the that are

upon I more or if the depending they guess negative on a markets how little range. say, were And react, the lower that side, I we've might what us than lead of assumed, negative end towards those end would that bit

Operator

line UBS. Question the with comes from of Dan Leonard

Daniel Leonard

have I a couple.

just about The I first math to that the ended product Is more XX% quarter the for decline chromatography, want Did one confirm fourth XX% on and process my year. full in declining than correct? up line that here.

Roop Lakkaraju

right, Yes, that's Dan. about

Daniel Leonard

then, that's wide conviction XXXX? What's that in single-digit growth variable. very forecast high a And Roop, been your for

Roop Lakkaraju

Yes. with our with we've talked is our destocking we've pretty conversations customers. conviction kind that about of around about customer the We -- continuing part strong feel direct been Obviously, the of having. our that that

we feel good So about number. high that single-digit

Daniel Leonard

you China follow-up, is charge. a wanted XXXX. for like foreign it's I like correct And year-on-year better currency. for sounds XXXX it IPRD understand the point looks as to XXX the basis operating if decline and about then entirely due And diagnostics Okay. It the bridge just to margin decline, that

otherwise is a right, flat math picture would head one, then I flat. reduction. operating if margin Two, margins confirm you X% guess, that operating that? count can sounds reconcile how with have would But that been like So that it

multi-parter could but any that's a there, kind I of help just offer. So know you

Roop Lakkaraju

Yes, of course.

So me and piece take try a by there. let it bit

the first right? one. that's terms the points FX XX is next of points, the part The part is So In effect, March, China basis is basis XX that headwind. is which reimbursement the of

you that XXX to basis about So points. gets

is $XX basis an The other pretty completed R&D, expense points be there's therefore, XX event, moving onetime there. achieved also such, And acquisition we factored the piece which incur that. which a into likely that of in-process we'll well. provided, that we that mentioned, last products R&D there additional be I that is the as QX earn-outs will development we a guide of for million just that Bio would along that result And summer. Sabre would charge the as The are some that be

So the Dan. total XXX of that basis overall, is about points

I a so if it, where guide, of sense to guide mid- would you you the stands from kind we of in march midpoint, our the from of of kind XX.XX% be And gives would that high those up say that perspective, headwinds. sort XX% of

X% reduction, was the do. As that obviously, difficult workforce it thing to relates for to us a

expenditures year-over-year merit of does us whether and some roll it other that's to basis, otherwise that. over would what is offset on provide aspects However, of a that the

Operator

your Brandon of line Couillard with the Fargo. Wells And from question next comes

Brandon Couillard

would about base, on keeping margins What your Stilla I portfolio acquisition. financials numbers while. that And dilutive imagine, you the to have? dilutive, I losing already the now? Just share around And any about it around base? be mean, be Why the would it asset, it's can guess, business money, the revenue been installed complementary and I is that. didn't a

Jonathan DiVincenzo

part. launched year. chip mean, technology, company solution that a workflow. of great a platform they very true first all-in-one portfolio, This team I proprietary DiVincenzo. solid their it's based but an It's take has new I'll the around kind is last on a for been developing Jon while, the

themselves with great And reach. a real global essentially, a saw product without they

we're portfolio to get expertise, more have why our So bringing put our researchers content on able world. in that about excited into around being but with we to that our that's to support the

today. the key grew very we attractive think to I that's So point why it

Roop Lakkaraju

Jon's Yes. comments. me to And Brandon, let add

end also think, address part to PCR allows application we the us entry market, of address with to allows here us the high don't Stilla just in where digital today. of, level I the of PCR Stilla but the -- terms other potential market not the The products,

allows in cannibalization, don't to We effectively actually other to As for actually it's compete players we the market very cannibalizing us the opportunities think anything. it marketplace. think us and expands with

get we about think we about that's -- does products The that add. companies M&A be we we get accretive and with we it terms on from them we XX be And even try other that I way strategy, once think months work close, within obviously, think in of promised are but accretive moving think market XX revenue and have to today, faster, it think to we'll have value and as and the that our towards thing I think integrated it revenue. will a should

So hopefully, that's helpful.

Brandon Couillard

Roop. clarification, one Need Okay.

return first revenue phasing? you quarter sort organic growth the the of implies then down year? maybe second low guess said I expect the starting Is about X%. think positive to of think quarter the is X% down you over I reported to balance do that that to how we a mid-singles, in

Roop Lakkaraju

Yes, to I phasing. that's reasonable think think a the about way

Brandon Couillard

then on Okay. and risk the structure. the And cost one, just last

don't of what kind mind the the is of larger this strategy P&L, color now? what company? we'll why targeted or part that of the a of of evaluation parts and more you see manifest. giving are And portfolio If areas around And

Roop Lakkaraju

across Yes. as areas, perspective structure and to business, -- from and action. we where performance appropriate evaluate different take was I continue just we something think a I we thought standpoint mean, such with why I now, the from our to the overall softness think it's business stand market the it an time

area within the are a SG&A our areas, but some With of that predominance the R&D in it sits chain majority the supply within There's -- based. said, COGS our within in the of bit There actions area. plus it's the organization, areas. OpEx up little infrastructure is OpEx broad

Operator

comes Jack with Nephron Research. question line of from the next your And Meehan

Jack Meehan

of down the trend segment guess, why X% I would about assuming you're with than first be to the within kind Wanted to Can that? what you forecast. quarter? by And talk right, so X% just saw sales. start If different the assuming you're it fourth in what quarter we I on heard

Roop Lakkaraju

Yes. Thanks, Jack.

a it to X% The sure X% make basis comparative there. that everyone to year-over-year right. maybe clarification So on is a to give just has got

So there's from sequential a dimensions that's different biopharma. there. QX be would standpoint, down the Two, it to a to point why, one, Number continued few a within your from that. biotech, the also academic and as Obviously, the softness XXXX. market

as other The is there. there. factored for And get effect the headwinds through of the thing China are well as the in piece the then business now all recovery over, donor we've see level on year as diagnostic reimbursement to sciences the that expect of into for full sequentially, as in well screening And life both both then some you've we got space FX factoring space -- the us. as we us

Jack Meehan

And that clarify, year-over-year, inclusive of it. to an X% X% all-in Got just FX to number that's down headwinds?

Roop Lakkaraju

That's right.

Jack Meehan

the sounds Okay. said in first across probably quarter? both even commentary roughly based segments And it it's like you on the

Roop Lakkaraju

Yes.

of terms that downtick? in Just

Jack Meehan

Yes. Correct.

Roop Lakkaraju

Jack. reasonable, Yes. That's

Jack Meehan

Okay. Then turn I to to wanted China.

pretty kind percentage these talking of So in single-digit areas the just concentrate you that. And confirm diabetes $XX wondering exposure if meaningful is the what of annualized said just region's seems I pressures thoughts business, cut to today, million reimbursement portfolio. any testing like spreading around it's a was relative if revenue, it other probably high second you you're could is. about, the diagnostics then to that of the in

Roop Lakkaraju

one change into supposed XXXX earlier the China that's AXc one and in in, rate especially because of obviously our fourth they it -- kick to Yes. the for quarter, was originally reimbursement with adopted the quarter. that start it of mid-fourth latter brought concerns was Maybe as I'll

frame. mid- late time And so to the November we learned in

And we So expect in think seem other be expectations we support don't that have don't areas should us change. we don't it to the things that, -- any this subject time. we to we to marketplace. in -- related at affect But that obviously,

So aspect I that's of think one it.

of it, is we the -- the million. In the it I script terms $XX not in guess, the of said way think I effect

More you use of Jack, there. of what that, to kind mid-teens that's number I is in think take that. you the out levels ought the

Jack Meehan

was million or the I think fourth in I Yes, $X Okay. on tacking quarter. so

Roop Lakkaraju

thank you. But

Jack Meehan

then target I working one, capital. you It some made you for flow the what the thinking. do That's Yes. the progress year? a last was cash And seemed have on like

you're Just for thinking about be curious 'XX. that how

Roop Lakkaraju

I flow, to range amount. gave improved the And cash million board. that towards we Free further of we're Yes. across a incremental so working million working $XXX-ish capital kind Obviously, finished $XXX $XXX of kind efficiencies range. of million,

Operator

Your Instructions] from Markets. RBC with comes of [Operator next line question the McNamara Capital Conor

Conor Noel McNamara

off, that's buying patterns how were a on put appreciate some the they had the halt already that's only them color If was it's rebounding? exposure, NIH Or NIH this -- or there that. case, I around other that on gave have with cuts? anticipating And that? should the week, but numbers some spend? slowdown of a So how we and the been about you think conversations First their -- customers? But recognize how changing you they we and are

Norman Schwartz

Yes.

a it for capital would happens. a will especially be anything as bit they're in has little researchers. to that of think of in little And near probably term. kind a probably affected come I to the really -- imagine, wait-and-see shock I as what more think a I mode they're else -- equipment of than bit

Conor Noel McNamara

-- on overall improvement year? assumptions should with the at the for of Great. making are of Okay. year? markets how And a gradual things sciences, rebound just then life thinking kind half Or a you of you end normal what the back of are end you Are in markets? the the -- about returning how the assuming end and kind

Roop Lakkaraju

and a is from normal get I I Yes. Conor, With to year open as of necessarily what back going I to that say rest guess, as question the improvement it's QX to sequential because being go wouldn't we think year. say with new we'd QX that expecting normal. through that's to we're improvement see kind to the QX going through the said, -- an quarter, it's highest to are but anticipate of we the the

Conor Noel McNamara

is from market should franchise. for both Got from share ddPCR competitive the think on standpoint last about in the one just progressing, the talk and ability is you Or just then market? your me ddPCR and then acquisition and that we it. how continuum? maintain growth the how to Can a And from market about

Norman Schwartz

important I segmentation mean, of we course, within the line. we've platforms it's look both the through we to and line internally our to of as build is or assay the acquisition. product And -- the of an in certainly technology, a that forward, market. We market. we consideration And competitive in portfolio continuing number product invest got Today, players continue on course, as look a to of our well.

know. So I don't

I think there of opportunities surface we continues to side. the lots there. -- be have on diagnostics the of And we're yet scratch really course, to

Roop Lakkaraju

Yes.

the the part we don't Stilla of platform. kind segments launch with marketplace robust more the which the a part where to year at with allows the think I a point excitement. of once compete that end are we continuum So lower participate ddPCR bridges marketplace. kind kind really us of And later is beat of of to QPCR today, of that's price that, platform It this high-end actually where and the

don't we us competitive to market really compete it participate a So in standpoint, allows a in today. from

Operator

of question Tycho next line from your Jefferies. comes Peterson And the with

Tycho Peterson

again guidance X% digital the put down a of So equipment on you maybe And Does this the X% decline? that year. to point assume for year? PCR on finer can

Roop Lakkaraju

to has to QX. -- but is 'XX. Tycho, doesn't continue into instruments were presume strong strong it down, Consumables and soft. that relatively still that We're its be Yes, it's expecting continue through

really of soft there, that's to is the so as and that's major biopharma, kind that to assumption biotech, as tied continue well academia. And be instruments

Tycho Peterson

those contributions you of guess, way think year, in product this to from aggregate? a I laid about for handful then new introductions. And Okay. any out

Roop Lakkaraju

overly the most and build in the market. the of is XXXX not them into piece not significant They're getting beyond, introduction. terms They're significant. which They'll out critical of to

Tycho Peterson

Okay. Two deals. kind I other do been messaging of capital quick on the I could ones. allocation, think guess, messaging you bigger you've

in You've and obviously invested Geneoscopy OncoCyte.

today. deal the did You

think assets? that still you larger balancing how I are on, you scale? smaller So you the And Are buyback? considering guess, focused about with do

Norman Schwartz

Yes.

factors that it's of are there. couple -- think I a there

we certainly great they And that on our have Jon It last that generating. know, through then And kind think our couple And would As larger screen. pivoted come our years. distribution. still fit done we've think as a global now. we lot to revenue in portfolio. it of yes, things you And radar deals midsized a things earlier-stage think the of example I accelerate I with so of our can in be I said, or is

Tycho Peterson

then ex the And assuming China Okay. pricing. last just of one, What diagnostic you are dynamics? kind on

Roop Lakkaraju

Yes. thereabouts kind we're of I We're guess effect, it, X%. China in the X.X%-ish somewhere ballpark. I that net without around if

Operator

it turn time. showing And Edward further back to no like to for at remarks. I'm would to questions closing this I

Yong Chung

Day notice All we're out right. and up for today's a save-the-date get Investor mid-November. in an your Thank hope also for that to more as you. for We're become connecting catch joining you And we forward as We always, call. look soon. interest, the to details finalizing plans targeting months. with you We'll person in Thank coming concrete. we look to appreciate

Operator

Thank call. this and gentlemen, concludes for you all ladies Thank conference you, today's presenters. And joining.

now disconnect. may You

Bio-Rad Laboratories (BIO) 13 Feb 252024 Q4 Earnings call transcript