EMBC - Earnings call transcript Q3 2024

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Operator

Welcome, ladies and gentlemen, to the Fiscal Third Quarter 2024 Inventor Earnings Conference Call. [Operator Instructions]. Please note that this conference call is being recorded, and the recording will be available on the company's website for replay following the completion of this call. I would now like to hand the conference call over to your host today, Mr. Pravesh Khandelwal, Vice President of Investor Relations. ahead. go Please

Pravesh Khandelwal

details Good With Third operator. Chief and release Officer. and to Embecta's company's Chief webcast welcome slides Relations and the Thank of President today section XXXX morning, Elguicze, are Earnings Jacob Financial Fiscal the replay and call Quarter accompany at press Officer; available Conference Embecta's our on to Investor www.embecta.com. you, website today's everyone, are me Call. Executive and Kurdikar, The Dev

actual referenced like or remind statements to factors as as press call in you are would to accessed events of differ I are, well differ matters discussed materially. conference We and which can some caution cause outlined begin, the results not the uncertainties, such and statements on subject are in with our will factors but in be we our filings Before to may events limited wish or to website. that our The actual results to, slides. our materially as events the could regarding fact, risks that SEC, you nature in that forward-looking today forward-looking contain and release future in include,

measures financial In of these for non-GAAP should and addition, not included with A call reconciliation will financial our accordance is GAAP. presentation. GAAP measures in and discuss conference a measures a measures supplement on non-GAAP the we this which substitute considered press call, certain be to prepared release comparable in to

fiscal a as Jake our an year. of our review our priorities. some well financial will of as third Our guidance results our the QX agenda performance in-depth on will as remarks strategic as then today's the follows: begin Dev during XXXX overview overall provide of well of financial updated the quarter providing more for is call as for business by

CEO, Dev the would turn call Kurdikar. I our open now questions. Dev? With call the then over will to like to We for that said,

Devdatt Kurdikar

Good taking us. the you for to thank time morning, and join

strategic priorities spin-off of start where Let's Slide have our X, XXXX. with we April that see the executed three since you will in

base First, the we global category strengthen maintaining continue devices. our to leadership business injection position while of our insulin in

our proud being for as market, ourselves Second, type made we an activities form additional we stand-up well operationally developed invest significant have progress these and in is independent each M&A progress as program made within to finally, am X as we to goals. establish of and company. necessary separation that the partnership opportunities. seeking insulin for our notably most significant pass And have continue the I of around growth,

Turning to third some quarter highlights.

revenue currency our constant to During based $XXX.X When approximately of injection our with of results that and on core the execution the quarter, million We prior sales aligned our business financial basis. were currency expectations. parent, manufacturing former constant decrease and basis period. of X.X% for non-diabetes generate we X.X% the as-reported an led a a generated on to third normalizing our on a prior transient X.X% which products that to revenue declined represented compared revenue disciplined team's decrease year as contract by the of

rebalancing growing remained first quarter ERP constant was and our primarily currency something during and injection revenue to call basis, that had this basis, constant some year-to-date that months year-over-year we implementations earnings that a quarter our lower the was during occurred currency following basis. X.X% a the second expected While year. on has on X third fiscal stable, was due our occurred our inventory business the a on highlighted distributors with our of core of On

past eliminate what GLP-X of do independent, need our come might and on over not that delivery. have while people has news insulin several Based and much on the year, past with onset insulin they the the view diabetes GLP-X delay the have may they the insulin. out Over for becoming years, is regarding impact seen we

within years In use the needle, end, an requires to fact, be over and the as first eventually this will this of of administration. the pen to needs expect product benefit. therefore for growing countries to of an auto-injector the needles come we pen other To months identified stand with the and method help product in used new to administration. small that We to which intend a of expand people product we several the next continues We injector, to the a GLP-X GLP-X meet can needle offering market this have of from for number pen to will believe a introduce administration evolve that several pen we in that pens that future. Germany next using opportunity GLP-X pack

distribution activities. to in of Turning ERP network services progress shared significant of made the own to that we separation own system, operationalization I'm pleased and report our capabilities. our implementation

are XX% and in systems regions, of operational our cover our capabilities which base. revenue approximately Now

transition, a to activities Looking distribution remaining fiscal packaging ahead, all on from program of XXXX. these Once the year network by entails to implementations, are product exception with early the the complete separation ours. shared track complete, deferred BD's and brand implementations remain we be closing jurisdictions, which only ERP will few service changing brand separation

been for as they associated continue with accustomed important packaging. boxes people feel will years. same and or fiscal is schemes since experience We to have product with program needs execution we this color Notably, to the diabetes changing the the This spin-off XXXX. many this that not been year and are the our for to we look of phases intend transition our in begin planning have on during

to on [indiscernible] Regarding the progress we patent our open insulin platform. program, continue

submitted application. from XXXX. the application a this XXX(k) the FDA As questions a we year, of concerning December reminder, earlier in we that FDA received to And

data We have from feedback responded and the the with since await FDA. necessary

pump at will the appropriate patch the insulin updates the to We continue provide our community progress times. on to investment regarding

delivery abstracts the point sponsored and manage XX fewer Association insulin with that Relating through market, sessions diabetes longer Diabetes which patch pump American insulin larger of at over time. X to entering our a with patches disposable adults times could for objective the infusion reservoir, wear potential the XXX-unit to two to provide scientific we pump a better type

learned the the reaffirms diabetes with data with their The health a what people validates insulin speaking critical living presented care with from we've for that reservoir. among and population and is there thesis diabetes unmet our need pumps type larger X providers

our had another metrics year quarter the our we reaffirming financial So as ranges while key for results and fiscal the based remainder year-to-date tightening revenue to raising again range. our as of we of summarize, for are the well performance on good guidance expectations guidance and

our more Now let's performance third review revenue in quarter a and bit year-to-date detail.

$XXX.X basis that million, when represented As for QX, sell reported I the X.X% constant or a changes non-diabetes basis generated normalizing revenue we impact BD. revenue of we before, a contract in on to of mentioned a manufacture decrease and and of the X.X% on which year-over-year [indiscernible] currency of decrease of products during X.X% the

When lower normalizing U.S., ERP approximately implementation. during the quarter, The of year-over-year and due decline revenue approximately advanced $XXX.X was X.X% constant revenue inventory X.X%. distributors U.S. purchases levels basis. was primarily their U.S. currency revenue, the our contract decline a within manufacturing QX making was revenue constant Within totaled to within the the after currency our expected ahead underlying of a represented for million, on normalizing which year-over-year

price price our as volume increase well partially This offset adjustments. effect by went April decline As favorable gross to that X. into net annual was on and

Turning to our international business.

quarter X.X%. our decline the Like of expected customers equated primarily was totaled million, to constant During a the revenue to which QX, decline of the of currency year-over-year $XXX.X implementation. currency International timing revenue was this in ERP advance that in advanced due purchases and constant made within U.S.,

remarks. occurred me financial That injection more separation And to call the business our Jake? third all results that well XXXX, stable, updated in during through to quarter currency the remained you year year X.X% my core constant year-to-date with activities that, let completes as take through over basis. financial on guidance full as detail. fiscal turn Jay Importantly, growing a our prepared

Jake Elguicze

morning, good you, Thank everyone. and Dev,

regarding gross has fiscal and review for XX.X%, period. and million to Embecta's respectively. the million the will compared year already totaled This at prior XXXX discussion of start quarter I third Given the performance financial revenue, $XXX.X profit third that quarter $XXX.X the margin gross GAAP occurred line. for the and of in my profit XX.X%

to earlier. in an points labor, product compared and and adjusted weakening basis, impact inventory was on of impact year-over-year favorable due foreign gross totaled by from by margin U.S. adjusted well currency our the to adjustments by on QX $XXX.X to the profit and in of offset primarily approximately increase driven the net the raw that inflation gross margin freight referred in gross changes negative basis volumes, as the While of and This XX.X% price primarily Dev which direct dollar. adjusted as of the materials, to profit results and period. impact impacted positively XX.X%. XXX adjustments year-over-year impact translation revaluation certain lower XXXX partially the of million The cost and and prior overhead the year was This million $XXX.X

margin. operating GAAP to and Turning income

third this prior the million period. and compared $XX.X year $XX.X million quarter, XX.X%, were the in and they XX.X% During to

operating period. and income QX While prior and XX.X%. on XX.X% The and operating I adjusted million million This XXXX gross our compared $XX.X an is primarily increase $XX.X the due basis, in the profit totaled year-over-year discussed. margin just adjusted year adjusted changes income adjusted to to in

cost both increased The well year-over-year TSA in by SG&A somewhat as and to due approximately As in costs. period $X reductions offset decreases optimization costs. was current These and as SG&A in well the warehousing primarily actions taken year-over-year were million R&D. of as freight decline lower

lower While approximately was pump due platform. associated million the primarily our to in R&D patch decline insulin $X with year-over-year of expenses

third and fiscal Turning We to share compared the earnings bottom GAAP prior the in of per year line. million which and diluted income the $X.XX $XX.X during million was quarter and period. net to $X.XX $XX.X XXXX.

quarter adjusted an income and basis, adjusted increase XXXX. $XX the year net profit to just adjusted due The compared discussed. the million, I is in While fiscal million share to and during drivers $X.XX were $XX.X share earnings of diluted primarily net This prior operating period. in earnings and year-over-year third the on income and per $X.XX per

was in a somewhat rate the This rate XX% As the variable debt. with XX% tax of QX SOFR associated adjusted our rise XXXX. QX reduction expense in an approximately had of in that to XXXX year-over-year offset impact well our approximately increase on in interest by in interest from and as

$XX.X period. prior from quarter XX.X% our XX.X%. the third in and approximately Lastly, EBITDA adjusted P&L This million for margin totaled and $XX.X million year compared a to perspective, and the of XXXX,

under defined balance totaled our agreement, our as quarter, million, last the third approximately and our of the months stood facility balance to end At credit while cash X.Xx. the at $XXX sheet net Turning XX cash flow. approximately leverage

a product to leverage perspective, resources, covenant separation this count and associated integration primarily our resources activities. As business stay balance approximately X.XXx. implementations. with requires legal net our used and head that temporary Which costs, $XX and us IT-related associated and setup finance, than lower cash June human our cash distribution has IT labeling with as as work below ERP within flow costs related costs, global September include costs, been XX registration attributed to XX, regulatory and and of trademark onetime that warehousing patents tax, existed accounting, the reminder, cash million a is largely to and From is of balance

of we the used X fiscal XXXX and towards estimate the cash that during separation We million months first approximately activities. $XXX of year

our now mentioned implementations. show receivables we sheet given on previously globally Additionally, our balance ERP trade

separation I'm such, factored report BD whereby our Consistent base receivables that direction. to shared ERP As a made receivables our following pleased the and systems in comments second implementation now with for on XX% those from that expectation associated customers receivables approximately the expect quarter. an year prior balance million. for directly compared of to that second year, a XXXX. fiscal continue used XXXX approximately use of This we the This during of balance activities that existed end to $XXX cash towards year we at to of collects within service behalf. with implementations, have comparable of Embecta will ERP of includes separation the million global our the fiscal continued roughly to end I approximately $XXX the with the cash full will collections Or conference on to cash our earnings functionality trend $XXX those revenue to quarter activities. we million positive call, compares cash as

and cash beyond end an balances repayment. in that largely including fiscal XXXX results. fiscal fiscal in more material we by additional debt our separation completes That of our expect flexibility Given to we year which allocation, comments complete on be with activities expect of my QX the in this us improvement to would year, see allow capital terms

Beginning Next, I update will full with XXXX our revenue. on year guidance. provide financial an

X.X% of during revenue Given expectations to range we well the as constant currency reaffirming as the headwind performance $X.XXX X.X% are a called our for foreign exchange existence first to the guidance exchange between in for down between be a our that reported our as reaffirming in and of as as fourth the We to U.S. we revenue and to about July year. prior currency, Likewise, year provided to to X X.X% our $X.XXX to for basis, a flat which continues be foreign rates a months compared be quarter, These XXXX. are $X.XX. versus foreign We Euro revenue year of resulting currency full X.X% in compared down FX for assumptions of guidance time dollar combined our the range based frame, billion were billion. are guide XXXX. call on to approximately rate On late including previously

to margins. Turning

raising of range between that XX.XX% of and between range a narrowing an between margin and range and XX.X% guidance adjusted range XX%. to raising and Similarly, new and between are and of XX.XX% operating a XX.XX% to new guidance and from narrowing XX.XX% from XX.X%. are gross a adjusted We we from of perspective, a margin our XX%

new a range that terms and XX% range between we adjusted XX.X% of XX.X%. a and in guidance margin, and XX.XX% of to are While between of EBITDA from narrowing

to narrowing of and a Lastly, to range an the guidance at an are at adjusted from to margin earnings $X.XX midpoint our per between improved questions. And or between like this $X.XX. over call the and outlook, for turn and I $X.XX due would and time, This the prepared $X.XX increasing of share of approximately remarks. my a we operator range increase $X.XX completes new to

Operator

Instructions]. [Operator

from comes BTIG. Our first question Marie Thibault with

Marie Thibault

very exactly quarter. I gross valuation bit a nice I the the help inventory fourth mention here we specifically metric? wanted this And of little quarter. strong in implied then fiscal to were guidance on they you Can should me that down And be start gross Very that specifically? what and think on what I quarter heard readjustments. understand margins, step margin assuming is for

Jake Elguicze

the appreciate Marie. question. Sure, Thanks. I

prior basis was start So year what's adjusted once let really saying better us quarter. expectations range. And our full slightly margin year at our the new by in range me to allowing about guidance that's that again margin gross our the midpoint XX.X guidance than of points our full increase adjusted gross by

as the a as quarter, moment of what's was. year-over-year that So few to margin mentioned revaluation I'll contributed point back or basis year-over-year to gross a the you was adjustments come about that increase due a in increase. inventory, occurred the in from referred what benefit during factors, largest to profit adjusted XXX And and and a to that inventory which

year-over-year to the was of well And contributed from April of in the that In profit the volumes product inventory made pricing basis levels advance adjustments. That XXX and during rebalancing increased stemming somewhat some net from increase had the lower that with reserve went as X also in headwinds their favorable ERP some quarter as gross then customers and the associated into points impact, impact the international second implementations addition purchases offset our they that both effect price year-over-year following the we increase. to inventory U.S. the by about

impacted negatively XXX points. items basis year-over-year by about those volumes So

basis about points. headwinds In addition, with year-over-year associated we inflation also XXX saw of some

inventory. -- to revaluation inventory to on profit or and coming So back your question the

in of And fiscal in a in real China, was all our that early issues as no Ireland year shipped legal happens, shipped customer we ERP one level. to result effort concerted locations there a to another. of XXXX, manufacturing that the from sure a for entities. yet any third-party us implementations to we profit from U.S. once variety that that And in inventory make product standpoint. and a to profit began built build and the And that a had inventory were So then up wasn't a to to results different transfer entity there's be that customer. centers of that type -- intercompany at legal eliminated inventory And that intercompany needs things consolidated distribution when those since in

happened So we ERP sold into the resulted quarter. than amount recognized once because to of in on P&L. that the see. what all implementations, then a larger sheet what to needs And in the advance that is that just customers, that's profit balance typically had inventory of happens so be inventory that It was built previously this it up we the that

typically, something and that and then sheet inventory P&L. see. So million range it adjustments be within happens we sold the balance And the into -- to so inventory what contemplated dollars and was built this to the needed year just much than a that that these It then inventory was would fact profit It we previously prior the be range. guidance we profit every to larger year our had just it's within release -- market, full was because normally happens few from and typically up that into quarter. inventory recognized much

necessarily gross you not inventory go And move to we profit QX fourth the the our correct. into we're implied performance to again, quarter. QX And as that inventory gross the quarter, into same or -- our down do margins step and QX. largely in margins, would revaluation recurring has QX the from with benefit. So see performance, not level of from fourth to going The that see if

from is So that to point QX. about basis alone a move QX XXX

capital of Latin only going our America say start QX, product as But inventory less I cash. Beginning see us because some left. attempt ERP doing that, and reduce QX. and systems, overall now improve to that in business, to within and we're and to intentionally additionally, levels negative would our we've working variances impact have our we that our our India we XX% in to manufacture implemented manufacturing then improve And we're going we're

benefit Again, had in during was inventory and that from year guidance. like contemplated in the occurred prior manufacturing QX the profit reduction our to something our we P&L previously the volumes that the positive

Marie Thibault

makes all That level Thanks of me, Okay. there. Jake. sense the to for detail

start here How then look to follow-up me land is as is toward Germany. for selling with pen Germany a going to GLP-X starting Let there to you those well? there something on that on did are needle And thoughts in on packs? those users. the the What move that ask pricing packs country, on premium, small be a marketing

Devdatt Kurdikar

We small us. absolutely our in that logical of pen. launching of form the excited GLP-Xs are about GLP-Xs for country launched pack a first made are a the Germany prospects for sort of Germany. in being

are To are GLP-Xs. needles today required pen those administer for needles pen obviously, administration. the same So GLP-X needles our required. that make pen we are The that

And small for friendly patient more you make a few launched and are imagine, administration. customer to so months as packs GLP-X projects packs ago. can the small we because

we will to get. certainly to GLP-X, we pen expect pen with The pleased look just the that pricing about more starting we specifically is, I we the case. let wouldn't are with would say injectors provide proliferate the that me be for and say, there price but expand administration are of as appropriate needles. premiums, talk the for appropriate And Germany and I market for broadly, use pricing

have capacity provides packs certainly, enter biosimilars small ramp tailwind that can number of the out market, up you the years, if And us. if a over again, to for demand. production project really fill a of and We these quickly

a there coming Germany. imminently about there. we'll months. excited launching maybe And are in from see of go We're to we going couple product weeks, be we here where the So that

Operator

next with Our Steed comes Securities. question Bank Travis America of from

Travis Steed

need product launch next to margins on kind street's How this you you for investments kind to I kind launch should the for like Even make get margins guys start making successfully. the like I sure you that think models to and earnings forward expand the forward. about of modeled we guess correct the the kind that want first when about we think question, going with this? Can year? just I'd with got the kind progress the that of investments pump and of product? of required of going to you're

Devdatt Kurdikar

that right, from manner, FDA. just the been reminder, the calendar a It's that So quick in responded normal as here, a of some submission as We late the for got we've made closed-loop in timely on part audience solution we XXXX. we well. progressing questions very the and process.

I commercial when to need and hope get Obviously, respectfully, on comment XXXX pump. we and on So the fiscal timing ready not the our to it this on clearance comment point, outcome implications for first for And won't FDA to for the the XXXX and numbers. first, of comes plans things the Travis. we At decision. the are pump potential launch

I I have will said what before. repeat

mindful our mindful very are We're We of of very net leverage debt. our levels.

the that You've we heard an debt in and pay have down. do on increasing us past comment cash focus

thoughtful in be are we hold that right that open thinking we'll what Day sometime we so and By on now, would Analyst measured an later December. And certainly, loop. have in year, this time, very our clarity plans. Travis, we'll And

have the confirmed will plans pump. on We our

progress We closed in loop. will the have made

meantime, delivering In successful all obviously about focused we so time. a out at are that closing the this on of XXXX. can we talk And laser and

Travis Steed

look to picture. the is I question Great. I'd the Analyst And I ask guess bigger of second Day. forward kind just

going be for You been just differently this to and markets while you're a independent? today? like Are what's versus public kind thinking just make at gotten maximize about a maximized value point? have reflected about this value now sure forward things in you company to from that of that how point for shareholders And public there shareholder the is guys thinking

Devdatt Kurdikar

a on that. look shareholder X-year day focus Travis, us a we we've every team, day the ways has continue management been plan mean, But all value, that that. look, really that execute to and continue maximize to to do been right, X maximizing from value. think certainly be sort laid pre-spend available we of executing as for really, We our from might look, to we'll ways about shareholders' to out a I on,

guide on to continues decisions all make. us certainly that the we So

Operator

Our question King. Kristen ] L. [ from Steward next comes C. with

Unknown Analyst

flows. just little on free I could was a focus wondering bit if you cash

be I down if was Jake, little that more any you mentioned could costs the flow I think, color here. separation stepping wondering that there's or to company. had a for on going way that bit provide are you cash quantify outlook the just

Jake Elguicze

Yes.

coming this going million the around of year for of using So around using back question, heels in cash XXXX. that's end thanks on the around $XXX we're year. That's to Kristen. with include year, and the to I cash balance this sheet Again, think $XXX the of for going cash of the to on $XXX activities end in coming year, in of million the separation million terms

flow that you're in of company to think cash that beginning quite see generation a through of the I free the of of really capabilities cash it This a flow isn't the investment. masked So strong. that the think the gets tremendous we've one gone is franchise sort I And of type is free XXXX, as because expenditure things improved amount I spin capital here generation. needs going think really much

we capacity that three even highly put are. where we automated through. Given we I have more mean can plants

about thinking going those next we're So as tick down. to separation materially costs are year,

million going and largely in XXXX. And so brand some reason even down year going the the do year. the a maybe has amount go have have we're to it's around million lesser to go year that to then with to that -- extent finalization next to $XX through that transition of expenses to next of we $XXX in tune XXXX it, to why from, somewhere somewhere So or call this let's around

But our next EBITDA as years, closely should our we flow a really company. we more free start generation as over adjusted should the move forward approximate cash here, couple of

materially number from going a free XXXX, is So but not improve to I XXXX think in beginning that going you where I'm give cash XXXX. we for specific were tell I would to flow you in our

Unknown Analyst

of received questions then, any And helpful. us were Okay. that any that FDA be the you back can the sort Dev, color you provide Or they if would there from expected? on color

Devdatt Kurdikar

call in you the comprehensively would have we a you. I so on to nice our all timely to manner. questions the that we to more got say and least and engaging from It's to, Listen, at were look and perspective, respond with forward able do adequately

Beyond feedback. we eager into details, obviously, wouldn't decision the I go to are the that, of Kristen, the receive And FDA's here.

Unknown Analyst

And would prepared to as will version be work? as with soon the that you approval forward How closed-loop of the version? get go loop open you

Devdatt Kurdikar

in Yes. working been on parallel. closed-loop version the We've

with You our been with remember, we an open agreement and signed an Tiderpool has integrating team busy that loop. algorithm

the even the loop. the on working closed been the loop progressing on has work So actually to we've responding been on FDA as open

Operator

[Operator Instructions] with Our next question comes from Michael Polark Wolfe Research.

Michael Polark

X pumping. gross margin a ask type question I have up and two. I want about on then follow to

Jake, even lot thematic gross I there. But the good I taking when you to Maria. -- A the down EPS do me I like when conservative? step of your huge margin, versus down into get in which of XX% the P&L, implied response I as $X.XX heard for is So color huge ultra account $X.XX, obviously considerations when that flag. run you down then you've And quarter, you a It see where step the been. XQ just strikes

it can to So just you fathom. it's -- tough --

the those here numbers are And this the to conservatism ultra are see, confirm plan So is numbers and to I I for? that just I sequentially? -- those to want you intend want

Jake Elguicze

Yes.

QX mean, implied your the I question. for I So math for thanks think is correct. Mike,

of from it PII I the largely a is move associated In margin gross occurring that mentioned, QX to basis XXX a point with terms that -- that really drives QX. story that is is around

of my all intentionally Additionally, inventory Marie, separation as looking in are largely I answer through activities. levels that of and the now to we're to I try these said, all rightsize our through we think, very

headwind the associated So that least intentionally are working at quarter, in with to looking we our is what variances. that manufacturing is sort to very in going and capital do temporary of fourth improvement that's mean something a to drive an

of So not have the level going same to we're absorption.

now we It our from continue our standpoint. points current raise down gross to gross being all then about this that we're our a really few ability drive guidance XX.X to the bit down of pricing comes mix, raise what was a to expected. obviously from midpoint prior to still guidance positive prior little a contemplated comes by and previously in better basis And both down margin guidance. things. margin that geographic guidance And pricing and raise our line to to comes product yet Now at in from our and than guide. a the also and had able

just would of some in freight say out and trying also terms I Additionally, to regulatory costs. we're take So cost manufacturing

our job effort reduce related on, to to same going to now gone as system. try from raise out at the trying kind then separation concerted PII, team full inventory which done to allowing real QX. likewise, isn't us a level. standpoint, going to guide. think manufacturing tremendous you I of a has levels But one and by drive moving the And really well. year from and That's QX that So our forward to things occur of that cost going us some There's a of think transient has about

full I X.X spin separation this go post all mean, through on years And we've there's noise the had to think the about a you base last as work. business, Mike, of if basis. year been for

from it's down and go the you have manufacturing to going sort more of margins an you're of to very much you at look from performance and if from small to business. we to that contract per business. seeing and year around XX%. it, during That at mean, gross consolidated -- if certainly, what the this you end is million look the let's you break annual components standpoint. -- a back I think at impact we a about into get $XX XXXX, quarter-to-quarter business think around, in stable generates going I call million different that's up are as XXXX, what revenue $X And

which then is gross to you a XXs. million a core in somewhere the $XX then very pump low have we typically in margin mid-XXs our operating low business business stable, the that around line at million to program. spend We have the $XX injection is margin year insulin And

sort So a should what is think, expect I much as move forward from to we more you stable of XXXX. business, XXXX

Devdatt Kurdikar

zoom to you sure products I is has sort of been into of in revenue in product a placed distribution FY patients distribution to can disruption, right? countries, the and that with locations, customers ERP marked implementations in centers. for that be of We case was involves working with dozens little mean our network disrupt I bit, moving background, what and any has there can if continuity new Mike, 'XX didn't imagine just to back And new and we in make dozens inventory from XX% the customers. went our right? BD's

particularly full year quarter-to-quarter. executing so in our lumpy I'm has And to frankly, the we guidance. been team But been And that No this has question. very incorporated had year thoughts this that. pleased our around

are at you of this the urge certainly, business at look appear, to quarter-to-quarter the certainly seeing, I and just a a year over look you basis might it back year full performance that over zoom while basis. and it full variance really so And would

wanted just I a little bit So context. of that to provide

Michael Polark

X ask color. on type Appreciate want I that to all pumping.

AID place you now. today, obviously, Type in heard pump pump I'm It's expect update market for interested internally in sub-X% is X the type XX% develop while the U.S. grinding could And quickly I'm loud you're you model the and in how you So you do trend follow this market. XX%, type in curve? the the have Do gearing next you topic. higher. I've X Type ] do on a that's program the you any that penetrated ramps? cadence? think curious you'd but X to a provide up for have I'd Xs, year. market penetrated that clear that been how think curious the interested Insulet Do be into push this color it slower? to How [ be faster,

Devdatt Kurdikar

it for simplicity and would has, with be And it provide for which of early also to remind type too I some to XXX would market type with customers. X I will expect just applicability ours us a platform type in quantitative I guidance designed that penetration And we've mean applicable. want the to Mike. competitors Thanks, argue, X specific entering as also, X what any while respect with that everybody sort it's mind, Yes. disposable units, be. makes well. we Look, on

a will more all have said We'll Type having our on So that as and we made this closed at more of we Investor Day, about this the December. expect said, decision. By talk that, progress X I some [indiscernible] planning to plans we are loop. have in time,

to this until our Mike, plans eagerness but X I wait suggest now more, later we respectfully, understand I do year. So the type

Operator

turn are Thank I'd to at questions the to like for time. further closing you. remarks. back Dev call over no There this

Devdatt Kurdikar

Thank you, Michel.

I call, at to all extend colleagues to across globe. Embecta my my this heartfelt up do wrap we the As appreciation want

Our executed for all developing engaging that our complex we all wavering call, in life to living mission from and mentioned major mid-December. for global of our people Thank in providing I as while and solutions during in And interest has this with the make look separation-related Investor better business. on diabetes. you team your call never with Analyst year, the at programs forward for of and attending Day our you

Operator

a for disconnect. participation. and Everyone, program, great the you conclude your now may you day. Thank does have This

Embecta (EMBC) 9 Aug 242024 Q3 Earnings call transcript