COO - Earnings call transcript Q1 2021 | The Cooper Companies, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Quarter 2021 Cooper Companies Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. I’d now like to hand the conference over to your speaker today, Ms. Relations Management. Investor VP, Duncan, and Risk Kim Thank you. go ma'am. ahead, Please

Kim Duncan

welcome Good Companies to first and quarter Cooper call. the afternoon, conference XXXX earnings

today's use discuss earnings During Q&A. will included we the in the release remaining the results then time for and call,

call on White, Al and today's Executive and Treasurer. President Financial Andrews, Chief Our Officer Chief Officer; are presenters and Brian

and anticipated revenue Before contains forward-looking call of we this and per or and that earnings conference regulatory begin, regarding failure I'd acquisitions integration you like achieve other share market operations, of guidance including anticipated benefits. results or to all statements to remind conditions statements, their any

our e-mail coopercos.com. filings, I'll at all please investor (XXX) are cause described are the XX-Q or imprecise and any questions website actions which future the our to or actual the statements forth on now to forward-looking results Company following line uncertainties. subject of Forward-looking caption from materially SEC set earnings XX-K for to Form are in over his our the may additional under on XXX-XXXX Al call, available you could of release be ir@cooperco.com. Statements and Form in methods the have and assumptions, those Should Forward-looking our are and statements today's incorrect And described or data and call risks Cooper's including depend turn differ at filings, call that that opening in Events remarks.

Albert White

market MyDay We hydrogel excited strength everyone a momentum. silicone took portfolio note We this on started Thank our Biofinity. to positive contact in our led fiscal the in call. conference are we year you, Cooper's by lens share Kim, and and first with welcome, quarter and off about

XX%. and continued and management portfolio fertility moving very posted strong cash growing flow forward. a earnings we CooperSurgical quarter million, XX% including myopia $X expect XX% with growing both and delivered continued robust With businesses and PARAGARD strong Our to outperforming, MiSight strengthen, to performance

the challenges, per currency and on all and revenues X%. $XXX a were continuing with $XXX CooperSurgical COVID posted share quarter X% we revenues million, CooperVision of reporting earnings revenues of constant up Regarding million, up $XXX with Non-GAAP percentages $X.XX. consolidated of basis, even million

our in led we CooperVision, By hydrogel Biofinity along for by down Biofinity silicone in continued nice growth strength COVID-related from restrictions. was general silicones, both saw torics multifocals. though, through the in our strength silicones that portfolio bodes so strength daily daily well Americas countries For in including franchise, Biofinity and managing in and X% clariti X% several We grew geography, and stringent EMEA with MyDay. and growth see as and future. did daily the our

MyDay, current Pac positioned with growing are in up continue X% in and Japan. Asia product led driving to was especially expectations, well exceeded future and we strength sales share taking and launches Overall, by momentum.

additional some numbers. to quarterly Moving

dailies with around growing. daily that both X% especially clariti strength MyDay as rolling and hydrogel silicone the was noted product there and hydrogels continue need Our be to $X.X health as that of global and trends will drive up. now right wellness market older adoption is sales believe grew are silicones MyDay Particular in continue the as that traded out Overall, toric in annual world. we we billion MyDay still leading and

differentiate year offering multifocal as fatigue alleviate And and is a excessive is Optics product multifocal. in before, of I've our eye but part portfolio. mentioned launched a to Energys In extensive to are with products reminder, well. truly a last noted unique was innovative and that our these uses strength Biofinity extremely products today's FRP Biofinity has ability time. doing Biofinity this made-to-order we world, X% that from well product Moving our perform screen help is and the This and Energys Digital that. business. our and toric to grew of lens seeing Biofinity unique Zone toric

launches, product successful we doing launch in We and now shortly. addition regulatory And market. to that incredibly a in Japan, active. our will curve Regarding that's launch MyDay have of second remain we be approval that base clariti in sphere to ongoing for

We and are world. also launch in many toric MyDay continuing around to sphere markets relaunch the and other

toric the We out for are and in toric continuing ranges extended we Biofinity shortly, Europe launching are Biofinity. rollout of multifocal, rolling including clariti and

XX% and Ortho including over X,XXX of GP in million last Specialists our the we active With of to $X grew now K over grew around we K forward. acquisition with wearing XX,XXX grew Ortho expect respect which of August to accelerating. busy Within the lastly, U.S. kids $X and to And the lens, lenses, our XX% are is myopia MiSight pipeline revenue from have Additionally, to million. our our from management quarter MiSight, very $XX world incredibly momentum XX%, and we going and is million MiSight for of strong remain portfolio this, year. including the

Our launch well, markets, go we we months. as Korea, in launching similar success South next such to will new and few activity where be continues extremely expect in the

U.S. large Popular made in retailers stores. associations making to are and several We've with care. several moved schools retailer training as to optometry with From received for their Comparing contact average awards age MiSight from exceeding our this MiSight sales perspective, Contact look with the This is in a a a for discussions exciting and bringing year. supporting XX also curriculums. many new we wear universities, supports several even progress myopia data, trending which students is advancements recognize of are management a standard Science multiple year and much and professional including advancements it's extremely made or and myopia shows of training fantastic. fiscal all next of positive into regular million XX adding if a age, education we age average and and phase the lens fitting helping large contact are Spectrum at now million MiSight we great reaching this courses get and over the wear And of younger. XX test the their management of at regarding XX kids with also roughly old Lens remains to have into buying younger We years new sign, groups we of recently, a one XX goal

reduce our the expertise spectacles Moving SightGlass and to want of commercialization spectacles. joint of spectacles our progression to acquisition partnership developed I global Vision, innovative to Vision leverage EssilorLuxottica our these myopia leadership world. in with around on venture the myopia management in and shared our recent children to touch accelerate and of will EssilorLuxottica. management SightGlass the has myopia with

we our is will in We we a working global a regulatory of having the marketplace. the as pediatric technology and we follow More be and developing entire to await is opportunity. will partner market game changer. requirements the The vision management, is pediatric its compliment JV wrap the an in this in data, working progress. at on of which are contact certain has next accelerate to through clinical myopia growth lenses, the we started SightGlass in been forefront product great extremely like two-year exciting now continue typical up only management couple the To are a of months. portfolio exciting growth EssilorLuxottica but on the making to existing the This plans out great markets, FDA-approved launch infancy, of exciting opportunity with myopia as form and MiSight

offers on such in global continuing health R&D and are programs detachment, such visual with retinal immediate and later as a to and driving life, myopia keep We patients, sales benefits, long-term regulatory basis. eye approvals the to adoption glaucoma. risk the serious in of addressing and as invest marketing reducing progression along new of many pediatric correction launches, disease in Proactively cataracts

optometry activity. involved definitely expect along retail benefit effort eye professionals foot increasing the supporting us why traffic add is especially the To staffing Vision, this strongly important will better attendance of at me let of So In and so it's that outlets, vaccines offices. and our given the conclude rollout and on getting care capacity and are we continuing nature this near-term, service malls, better with consumer business. many

strong our is myopic that's our the a a trend and back-to-school more industry On continuing in and with also macro world time very season currently growth in-person increase roughly by expected as XXXX. world. returns silicones, and basis, torics the improving and of the a on XX% trend multifocals, third drivers likely spending this are people strong a around that We of bright has to remain geographic daily longer-term growth expansion to estimated expect shift electronic learning one with It's Combining future. devices. to

for position strong and activity, For long-term with data robust puts us portfolio, product growth. management CooperVision, a our launch in great momentum product new fit sustainable active myopia

revenues to and right and were with now the we quarter throughout CooperSurgical. excited state Revenues team I'm led around XX% year-over-year a grew with a of We and leadership her looks strength Starting $XX took bright. about had world the and to fantastic really extremely the by our seen Overall rebounded future fertility. of Holly under and $XXX product up million strong million, X% the portfolio. healthy PARAGARD Moving share. very CooperSurgical as markets fertility.

for We our in are share with accounts. are taking future well gains positioned and we traction key improving

of spectrum business which the product our full One the fertility of needs clinics of products. broad pharma outside portfolio is covers our strengths essentially fertility of

growth trends on Within taking the and well are were and management X% building and the to better RFID products In are activity. than in incubators driven RI that growth COVID done and are lab-based trends market in I India remains fertility expected has such relationships negatively we PARAGARD trends, meantime, surgical ranging we have we genetic activity world as strong, great to the seeing in our significantly the the growth. testing. consumable has as we is Witness, from market but office still and XX%. we and still unit, the definitely positive drive We extremely by to continue. wellness pipettes, cross-selling larger quarter, macro areas a PARAGARD’s up important capitalize to with that we are in positive by this flow led pickup performed a job of around resulted patient impacting countries media solid expect are like and positioned growth patient Overall, a hampered, our discussed share and system these U.S. clinics long-term workstations to and health some last equipment From like of seeing perspective, market

and the fantastic As of U.S. on needs XXX% a product IUD the a offers only control the option alternative. interests women market, healthy birth hormone-free addresses that the for looking long-lasting

including bullish deferred elective seen quarter, device posting continue rescheduled, believe patented and EndoSee sales our the now, Several very direct surgical PARAGARD in our improved. closure system are and focus skin year. solid we procedures Advance, on of we uterine our endometrium; manipulators. Elsewhere, of medical this will We evaluation steadily of portfolio our right have visualization growth INSORB, products grew for device and our

Before governance. further it to turn on close let I enhance and environmental mentioning responsibility matters, good over to our corporate focus our strong efforts Brian, by me

out passion with or the of very connect. to great past the made interest assessment progress please work have over call And to anyone reach things ESG and lot just materiality happening ESG a my turn have focused the questions on I'll this that, in today. and and and commitment an to our has We ensure If type over exciting of years, strong. remains right Brian. several areas efforts, completed we We any stay we let's

Brian Andrews

Al, you, please refer afternoon, a results. commentary everyone. reconciliation to for non-GAAP basis, to so of non-GAAP will of a earnings good on release Thank our be GAAP my Most and

extremely with Consolidated basis increased in XX in million. higher margin margin with or fertility quarter favorable year-over-year XX.X%. X% currency. fourth $XXX was revenues points increased constant along PARAGARD gross products This by consumable performing strength currency improvement X% and Our year-over-year consolidated driven to CooperSurgical to well

up Non-GAAP rebound. being the forward, the excellent in EPS quarter lower are million effective environment delivering expect well $XX up growth. restructuring with Net solid an absorption-related average expect with efficiently gross see still within investment continue leverage opportunities flow up XX% average year-over-year rate shape to manufacturing XX.X%, away positioned performance XX.X%. We to flow million expectations completed tax was in under was against sales solid from by we for control debt stock and kept we strong of balancing This consolidated posting XX.X in we at Interest $X.X comprised million QX, outstanding. by quickly and our to as million ready of but we per $XX nicely to we results, improving business, along at resulted of to OpEx X.X% exceeded increased go of within of $XX cash Moving current was margins. we inefficiencies, that year. expense was cash continues myopia particularly share. have as management. expense activity lower operating was slightly operating ratio the expenses for And control. debt, adjusted while finally, $X.X to our last to demand offset roughly average ramp This so those We $XXX continue only million are we with rates decreased price $X.XX driven worth million EBITDA. and with Free this $XXX quarter of our repurchased billion, CapEx. past X.Xx shares margins

operational strong performance, completed to recently. several we addition In tuck-in acquisitions our

$XX close approvals. million EssilorLuxottica tuck-in $XXX of the eggs, closed to and solution with into did in soon. to sales on to as CooperSurgical. the based management that acquired for added embryos, to at cryo-storage $XXX,XXX milestones in stake we joint a clinics During subsequent we revenue we Al and SightGlass in in last acquired sperm. earnouts Within more the XX-XX CooperVision, year venture After The to million automate to portfolio, quarter, agreement our hope the we Also, quarter add regulatory fertility the million deals entered of cryo-preserved of to Vision allowing QX. close and we quarter, in plus of business XX% our mentioned, end, an January a remaining aggregate two $X.X Options form up Embryo cash potential revenue software

purchased balloon of first manufacturer was launch in-office used during C-sections will water a an The device Obstetric system that And Safe make Medical, a vapor owner Systems, pre-revenue AEGEA Fetal ablation to shortly. of the Pillow, delivery earnout $X.X to for and in potential business The last mother million $XX cash, less a it million traumatic of in we for the and sales $XX did million. plus year, up baby.

note our discussed were This last I you Before to transferred non-GAAP. will property in where our XXXX. than that November UK much moving earnings the to release related were our tied item directly to guidance, higher the GAAP quarter and earnings is in intellectual CooperVision's assets tax

we this and will we purposes, so for non-GAAP For doing adjusted activity forward. continue moving

guidance. to Moving

and monitor ongoing scope, operations to the duration the continue impact We evaluate and our pandemic and COVID-XX on of financial results.

to up in to or expected of billion, to $X.XXX X% CooperSurgical currency. to XX%, to in million of billion up $XXX or be performance, and up improved, EPS providing $XXX a better includes significant revenues still XX% billion factor, guidance risk to constant visibility our $X.XXX so of $X.XXX now currency. upcoming the CooperVision to management constant XX%, we investments. is guidance With to $XX.XX XXXX revenues of for range including view in to or XX%, we to myopia XX% are as up XX% $XX.XX. million, XX% constant XX% our currency a has feel Non-GAAP up our While XX% resurgences billion, full-year $X.X The in XX% anticipated provide XX% expected consolidated revenues to to

now free expect I'll cash on this for and year flow it to operating million approach back with we Lastly, flow, $XXX reduces. questions. operator to CapEx hand the cash that, improves And as

Operator

[Operator Instructions] question Larry first from We our Keusch Raymond have from James.

line Your open. is now

Lawrence Keusch

much and very afternoon, Thanks everyone. good

looks looks So of a single-use two-year doubled and stack. ahead it sequentially the like consensus sphere on like nicely Al, was

give mean, I going that? thoughts driving obviously, you it's what's hydrogel. what's there? So silicone some I But if could assume on on

Albert White

MyDay But strong. on Yes. more back constrained has while. as is doing is you the anything. MyDay mean, that been we're know than And capacity silicone product certainly demand quite hydrogel-driven. a Larry, really it goes to on for I It clariti fine. maybe

a no around being the the constrained, finally out we're it capacity to that's world, toric the around we're we're to world just that launch able product, sphere, Now product provide getting able longer out the and high-demand there. the

So there's is a toric sphere question strength. MyDay that and no of driving lot

Lawrence Keusch

that how think globally? And you Or is again, geographies? specific in about it any

Albert White

It is global.

we're MyDay. three it So regions in all strength to when comes seeing

Lawrence Keusch

the MiSight. then just And is guess question I Perfect. second on Okay.

or if million that $XX over in I this to year said XXXX. exceed reach $XX you think and relative this expect you I caught correctly, to million

guidance, those So to be on that. changes the margin more now in certainly at the bullish seem

what's of So did million I look, has or lot numbers? you And three give to in you the that to this keying guess a the a those get question greater million MiSight there into quarter, happen to $XX is confidence $X more in quarters. revenue to next

So again, that? drives what

Albert White

continuing as at here U.S. about look mean, I if is Yes. the of world, U.S. the million see that of a $X I to just think that. an because things get I in only I right? acceleration was good an accounted mean, the way you for, including That's mean, we're interest activity question. in $XXX,XXX and part of example, around the

the imagine can what's you market. U.S. coming in So

launches that ramping I Now a around for of certified little We're success including somewhere ways with if we've free, with organizations mean, up right the figuring at you activity bulk to volumes. longer Other get right fitters, in Taiwan. with now no going bit looking with MiSight right away giving discussions on, a the manner, we're in tons colleges, product I think fitters – who to of retailers will. seeing into more and now do we're with their organizations, buying over great now, out are and Russia activity X,XXX, our groups X,XXX had maybe

see momentum February. of just of single more So us in a in every we different saw lot areas We that makes of lot a that And month. optimistic.

with So certainly continuing to move in direction the right MiSight.

Lawrence Keusch

you. Thank Terrific. Okay.

Albert White

Yep.

Operator

Biegelsen Fargo. Wells from is Next Larry

open. is now line Your

Lawrence Biegelsen

MiSight. afternoon. and for a on here. congratulations quarter the question CooperVision, good nice one Hey, on on taking Thanks one Al,

on in underlying timeout. demand. unusual any love trends I'd recent new color an fits, it's obviously So hear to

through if continuing of QX we February, implies your et QX, if the February? improvement And tends I us CooperVision guidance kind step And follow-up. where if up of should cetera? If had that you're typically tell you're to see normal seasonality – to an business sees kind willing over to one

Albert White

Yes.

typical I QX and mean, probably better, then QX accelerate stuff, right? little of up we in QX lowest is and a and So usually, is our kind QX.

think we haven't look we as example, back for look I you mean, kids but year, at think, opportunity. to a a you the back-to-school when stronger in school have the it have the of guidance year. our I California have in in I opportunity, here We been half activity. at don't an really, in-person

have kids who because kids, to are seeing when be kids it normally video front problems, activity, the to that would their have in, right so addressed year the not last So in blackboard, back-to-school you're on you're speak. all faces and only now. the going should've going have working screens had you kids that coming of are having But to things

So back-to-school not certainly for hope I and I that or in-person. demand, you if kind a or there's with boom activity like of potential happens. come do that really pent-up that. the on on that's But counting something that being think a will, We're

build seeing basis. global that grew. but that We're Demand but are guidance. on we fits will our don't a to into seeing We’re I I new I But into months, – quarters, continue February say trying or improve. there. is to mean, to get want

the was step right another grew CooperVision good February, in in direction. So which positive

Lawrence Biegelsen

any can envision products. building you out both this in have Al of see you myopia to question. That's do taking And likelihood other it's Can kind SightGlass? I management You how becoming for color on the the China, Essilor, know JV long-term? over of China early, time but this broader getting addition playing you Thanks – on on approval MiSight, guys in helpful. super XXXX? And

Albert White

the continuing on front point say much there. that. approval on would on I we to at still Essilor work to and Yes. this still some With to Sure. decent regulatory mean, of respect cautious that. great a that get Essilor respect here too JV. year, mean, company. I optimism With but some is see. we're I do to have kind update the We'll conversations China, Not to

market. that We're Ortho in SightGlass those K starting if We run. spectacle together, a management have We the market Coming the lot on obviously products and together have They be should great a guys. will. between relationship of in have you Vision with myopia a a MiSight. journey home

much how there. that right other be if so like makes But if a of wanting JV that strategic that potentially, to hands sense, it would I of success does mean, evaluate We’re much now sense, successful activity we and it's expand have things, see we'll really Ultimately and plays full something there's certainly. certainly. our we're having it makes we include so mindset out.

Lawrence Biegelsen

Al. Thanks,

Albert White

Yes.

Operator

Next from Piper is Sandler. Matthew O'Brien

line now Your is open.

Matthew O'Brien

product of taking sales questions. I a to half about Thanks. X% quarter, attention. of hate of Thanks ton that's gets Al, this Good for but afternoon. MiSight the a talk

I but international going us So Russia from year? to to ton million $X mean, of it's this to contribute will probably not this can million domestic, a $XX it's I'm big, all because be bridge going you to a domestic. is going Just sure nice, be be right. primarily

X,XXX got here are trained. people You've that

it's this they If need you put of for months math, month nine the basically last to on a do like, year. the per patient

So bridges get more give from the you it to million full-year us can there? up us that you $X comfortable $XX really color, the make – can for just to million to some

Albert White

Sure. at vast the growing percent early I of of mean, of million in was the lot somewhere I or about of good the revenue outside We're somewhere so so, When growth Canada, Americas. we're was like our a talking here would very at U.S. that the just in getting recognition. first sales kind I in XX% majority the stages you're all, say XX-plus the range. that $X U.S. the look mean, of growth outside of here you the U.S. of

now. right of of thousands wearing or have more lens couple we So kids, thousand the

be whatever I kind of and of February ramps numbers, all through see here. if million, U.S., was we it fittings that's successful. XX% stuff. to growing in the way the diminish here the not U.S. we nicely, But mean, would see the continue see I that and the see I all I I great $X.X be continue accelerating. coming. will So outside mean, the the I up revenues I successful think to moving I

drive that's going growth. the to of So lot a

Matthew O'Brien

be Sorry, to just more clear.

this I saying, million so U.S., was domestically, quarter, it ton. it's think was going grow to pick sequentially, you That's XXX you said a grand then just $X.X the think have ton it last of slack. And million. a didn't and probably had I'm $X to quarter in up I why it the

So bridges again, that? pushes some is, purchases. what know these what that? piece, what I but the domestic I really really of mean, it bulk don't

Albert White

mean, of would annual Got that $XXX,XXX would for quarter. have It those like in you. Yes. done I some have have goes products much something been to like, been just have U.S., or much, if would in or the sold it that like the you higher. purchases sales

if That's of So about struggle right? talking lower, this quarter bit can was for So us, that's little because back you're over go quarter January, it, closed. you are like, You look anyways. an and as you of for a imagine optometry time kind the in fiscal have our why you a of December, right, sales example November, right? offices

holidays, the going have have You on. everything you

You're trying here. brand thing fit to new a

pretty $X expectations. to million our were rollouts exceeded So the happen. that we continuing happy That

You're about People around it. it. They’re They're outfitting are docs hearing more about more it. comfortable They're getting world learning about getting patients. the fit.

million, And as then then right, pretty plus to comfortable it's And like of million, like product it around we're $X.X something we the just And $XX is $X $X.X that more year, up So to become I crazy, decent this towards against progress on you're moves you're something in on QX. have for move a going through. $XX away given to that. not with especially next million continue if a million $XX goes when comfortable kind mean, free. million, lot just the say, that. having be million, of doing right? $XX it pretty let's requiring The normal comping progression decent definitely million, year, And we $XX visibility you $XX million that. Like, as an $XX something million, that. million, to example

Matthew O'Brien

know Okay. multifocals but And the side you effect MiSight of were we Super elsewhere necessarily halo throughout about this. that? talk the of strong helpful. that mean, see always then really I yet, on starting the any I to not portfolio. this quarter. Are

call you're so I anything mean, Just benefiting that it is anything out to there? multifocals, seeing far?

Albert White

we're We who thinking basically that, of had any I CooperVision starting but to the fit like XX% are signs off head. say top see very docs yet. fitting I'm products. not MiSight much Yes. would don't of early the my of Yes,

we're So lot getting doctors’ relationships building progress, definitely forth, making of of a so to and kind know that better, all stuff. these

products So I than we're to so MiSight. a other we're right be synergies, hard to lot really think that. focused wouldn't we're going pressed get not too on to from because I that would really, yet do really say rather but of those speak getting into much cross-selling offices MiSight now, we will

Matthew O'Brien

you. Thank it. Got

Operator

from Block Stifel. Jon is Next

open. Your line is now

Jonathan Block

with you. flattish. in I quarters, OpEx, guys. past will If the year-over-year OpEx believe at the Brian, Great. spend I I look the start evening. Good somewhat two Thanks, seems

to If temporary eventually call or right? what's one, T&E So Number is from that initiative? comes actually, strip you out, into the assumed OpEx suppressed due that some COVID of, benefits spending is there back the sustainable sort actually it, MiSight it is structure?

Brian Andrews

question, Good Yes. Jon.

played was way interest that to about out. with guide we're the talked a expenses. last of be and Obviously, one offsetting and is what driving When OpEx controlling another. happy was of sort doing FX and then tax we We’re sort good the quarter, favorability job guided we going

as say. respect forward I new also the OpEx look launching certainly at should so And we're MiSight going that beat OpEx there's fuel to to and you things was marketing expanding operational then throughout want And the guidance, throughout forth when sales to opportunities going with obviously see the we management the see going we to And growth investing our strong. where going spend sure and to we're spend, promotions going we're be so doing we're be the or be and coming. make be and products, to that world, to we right within myopia

mindful be a controlling but of kind that about pick see up you'll we're little to bit, going So still costs.

Jonathan Block

it. Got

maybe Okay. the attack you least come out And MiSight that better pivot that kids? for Is time, into about uptake? as, year think talk that aware? you kid U.S. be you a for we could on at any experiencing there management, a nine, for when and see the and self maybe like ideally been become then of on SightGlass to for XX two more outside they limited has you utilization just myopia to of ages MiSight some or churn MiSight where Are drops example, year at Thanks. the about Al practice of transitions the or XX that hey, one some markets Do myopic you if sort eventually Canada, have might six-year-old SightGlass? the and on what's for

Albert White

Yes.

right SightGlass, that, right? to going going glasses going to handle You be are to my glasses parents their to on age. lenses want are kids hey, wear want more young You're who think comfortable and to that, this can't at with get are or them wear contact child

but to them in in to want more treatment, treatment. need comfortable with I glasses. get I'm get So I them

even kids little at get And So maybe our years seven probably forth, eight, young some been nine, lens olds of the so bit at you're get you'll spot also, on then there. get that old. a experience want XX-year Then so that's six, if of you and that you'll and far. ages, contact least into will five,

looking need kind year. those of open where to a so hey, tool. of a to not some significant we're one we've kids bit markets lot some of powerful a is some We're supplies together purchase the forth. and see more I I now seeing interest little continue a to of Canada, When been of stay had where the those our and retail you while the saying, come a seeing segments outside combination and of it selling right hey, for U.S. portion thing to of about the we some of after look why quite The from take kind up more for stores at a myopia and kids at product We're those in starting want developed is saying, in very a the operations markets retailers and management keep the we've of of in think really MiSight the awhile. two that's dropouts. So

make there want success and want we that, having lot work. growing, bring we our operations. into we a some really this these we to way could So really if can We to that see is independents of see trial

we're those discussions. So having a lot of

As now. that activity mentioned, of off. other entered a on are I going discussions we've some just have XX-store And number to of trial a right we kick that into

Jonathan Block

Perfect. Thanks, guys.

Operator

is from from Next Mishan Matthew KeyBanc.

now is open. line Your

Matthew Mishan

everyone. for Good Thanks the Hey. afternoon, taking questions.

Albert White

Matt. Thanks,

Matthew Mishan

seems seems like or more to the going changes I'm with Is and over So be above one some maybe five it market an that as in your years there surgical bigger because momentum to now? to do surgical of of opportunity business occurring the compared last see yourself and here? fits there grower a in consistent so. start a the there you lot Or starts from

Albert White

Yes.

office back Mark a business, So there, short manufacturing, got you answer made on moves. as some we six, seven, or great months Holly over couple a distribution, has Valentine’s ago work in of commercial running that made taken is lot there. know, something, what, that eight moves. done just We've yes.

the about moved at. market really up of We're where recently, taking We're we're I'm really well who positioned. share. excited Some other folks have

products on channel I forth not gains. pretty of fill That's so would anything, quarter envision had, taking and growth. of a we time you're just growth patient I talk lot spend demand to share surgical, more it we that going for flow and quarter, don't to good talking a does coming. of I know hear that but continue X% about and think and those me about and market or this – without damn posting kind share market better that's

Matthew Mishan

me years? another to the double-digit getting what Okay. had bit you that which to consistent, are like you, you've that area, And grower be surprising the Americas kind is little is over Excellent. growth that in the to And that so outgrowing you a then when market? used Asia of Asia recovery and have for do recovery you consistent back seeing see double-digit a

Albert White

have that trying to Asia, strong. my like to market really that and you come But is start on. ourselves That's else we're going Yes. in to out I still the tired we We're I other back it's that, got getting a malls, things, get of for talking for like interesting as was right. to perfectly going still right. Japan. come Asia lot traffic areas really there. toric market out. mean everyone in the the right. have of That's are that's be It's COVID of the offices I Pac and position and in back a I going I And you MyDay vaccines going it. optometry the one believe kind really have of it's mall we stuff is. – still But – In right. is low. out within challenges countries, got and about roll-on, am some we Like what into where we rolling everybody's is coming great There Japan, have it too, clariti, of clariti,

and in You're forth. places going so help like to see increased a lot. malls traffic to foot going That's

improvement to do things consistent a bit continue I we're get Asia up see because in going we're So better. to there, see to Pac we're to starting open starting little think

So what the I you kind and back if some will, of terms of market in And leading to that consistent going envisioned growth. pre-COVID, was point improvement. world it at

Matthew Mishan

you. Thank

Albert White

Yep.

Operator

Next is Anthony from Petrone Jefferies.

open. now is line Your

Anthony Petrone

myopia Thanks, latest Al, the Maybe, set Great. the opportunity control. of a market on strong on once views around the us congrats here. to quarter just level again on and totality

follow-up. maybe have you between one you the quick in And contact that and we that segment think lens Vision. have TAM, a about then $X I billion spoke SightGlass and past now Can I soft eyewear?

Albert White

be early glasses start Yes. market kind going stuff. tough you when myopia into I that stage billion. well at now, it, of management the looking ultimately be on forth of a billion. well big tune. it's the fine $X people a to that. going size. hard right to I I But now little market. it's ultimate really north But north It's a $X know of we're because back believe added being go is little on right and mean It's to

Anthony Petrone

you think there, a a of That's sort space. versus lens helpful. contact little guess the about the I bit in pediatric pressure When eyewear

easier. Just market But bit a eyewear certainly both. done checks could for little there's we've certainly be a some suggest

and or now DTC? of commercial it bump maybe I like campaign. that just or guess, the Is regional? one do from a PARAGARD be, what we if other on, from they national looks And the we kind quick other near-term as And noticed simultaneously? new it new, And the the one so the is do campaign it's or again, night for expect, grow a should would leading then that you surgical see revived

Albert White

Yes.

part and that play on do So what certainly I now, contact what will lens right. tied see, they think than bigger showing we're that is our for are one, the that correction of of management contact in lenses surveys to the myopia general we market a vision seeing right part the is efficacy

You treatment put right. glasses the a a lens can do Kids XXX% off. of right. contact of glasses, getting and the full They time, things you're can take a variety with

when talking full treatment, want treatment times. you a that about all you're So at

Having shows a happen seeing. to optometrists contact big our kids what putting I work with and to parents lenses and going are and usage forth said so that percent than survey there's going want to into that going to work the and to that's comfortable believe of see glasses to market our part glasses. used a their we're wear be still more that, So greater interaction being you're

or of maybe in more we've There's out thing some Nothing us I the It couple means So anybody. we some and bottom expect of terms I go strong in advertising mean, drive expect have growth PARAGARD about that's would which a really like that I spend, would dollars new April of have into going to The again we And say years, would XX%. grew, one be that been next was we're like yes, because for money also. line. spending PARAGARD, is, would to that drive what that'll last strong and kind something didn't out. wellness are quarters XX% May. similar ultimately. that's quarter. helping sales to kind the daily and – a coming in The crazy and we're of have advertising I amount there. flow That's the bigger. trends helping they're about doing SiHy, the continue of really growth of couple health there I in seeing strong to that PARAGARD to we're market

interest out right that. more So there tied now there's to

I this perspective, spending for revenue I'm to from at That's of the wouldn't different of anything perspective. we'll a So see lead time, some how kind that out. plays But sure. you from optimistic believe but

Anthony Petrone

Helpful. Thanks.

Albert White

Yep.

Operator

from Next is Cooley Chris Stephens.

Your line now open. is

Christopher Cooley

on be contact getting thing, will said blank for you're just the acquisition. a like just doing to the the for there's would great if one new the assume I'm pattern doing – technology, But year. with on SightGlass Essilor. lens taking overlay now. with with the that just I on Thanks Maybe now, afternoon. soon wrong MiSight lens I'm I you're there, I you the lens with or the could that sorry, blank potential the curious congratulations and Good on I MiSight on the realize questions start to me, But rolling acquisition. with

relates to it forward? then a trial on as from when a expect perspective, Just to I've got we thoughts clinical And to start should see that follow-up moving CooperSurgical.

Albert White

too myopia those possible obviously Yes. the that, includes lenses. in I property a the we're filing to in MiSight to in into we're just technology and put more more now ourselves space. I certainly rolling I going coming, out. management have terms exciting of intellectual we're in our going we work more say in will contacts total keep that within done. not the won't technology, management best to within do myopia position There's mean, space get doing of that best around are particulars. kinds different of much lot stuff And and that R&D to right some we're contact different and spectacle

to come will. you we're but scenes the work on more So if behind that, clinical definitely doing

Christopher Cooley

How full-year, most we growth make in. Thank bridge us is, when the PARAGARD We'll Just to kind look it's help then say, these there there growth just getting the from kind look hearing you the guide acquisitions And guidance we business step correctly. that. of just Could I tuck-ins? you. for really rates CooperSurgical at recent and about to do that in versus up want shall to forward year-end base on guess sure the at additions of baseline have you or much CooperSurgical? I'm from a the some that strong flow

Albert White

Yes.

So you've QX got in. to obviously, the beat, roll

biz. got like bit little roll will million on part the remaining acquisitions. something the of than fertility upside. more got side the A probably that And base You've you've $X operational the about then is in because

is of single-digits. a is PARAGARD lot low strong. medical to biz a to then continuing think core I outperform. base remain There's demand pent-up of fertility. in device fertility kind probably is going And lot of products,

And in pent-up you markets India addressed. demand, the that's open. being combine others are like So and addressing that some that of that's in when currently still you markets and occurring layer not

gains going get in outsized to continue You're fertility. to

that's So things combination the kind to there. get of of

Christopher Cooley

you. Thank

Operator

is Next Wuensch Joanne from Citibank.

Your line is now open.

Joanne Wuensch

of might quarter, but bit Y for Good of I it the be. what over from questions. or you mean time expanding afternoon, by taking I whatever on a the time out you've and little margins revenue X not year is spend X just thanks to this that operating years. see about to a CAGR And particular talked or and want over the how

you think So a if like? the us looks were reach you an a what do LRP ongoing giving or goal even, or rate goal

Albert White

a question. That's good

certainly, But margin as that gross $XXX start and into the with plus, the that year. million a high to million operating get to – following kind some million as years margin from investment move to we'll high leverage product, million we we start will have margins. of next $XX and as high dollars that MiSight $XX that's you're think year to for at to of that associated next $XXX I couple moves looking

you going on if mean, with drag, being positive, surgical part little a has pretty CooperVision be margins you of add-on the should be solid a what's and So good margins becoming MiSight. stops once an the business that to you of starts good. will, operating now rest business I to see margins, will, with and bigger, it turning business that right has that gross the from the great higher a and continued if is core

going to going if lens normal think was market out, what and I contact So the say, X% to to X% hey, I to growth. its come – I’d is back go looking back we're

take of plus think us management I myopia you're to off that top that. to going on share continuing see

So I pretty an four out would expect going LRP numbers good you're years. doing some or five if

Joanne Wuensch

you lot That's launch that. of think do how MiSight. helpful. global And this do then and A you my next think to call on a with on United ramping, million training to and get my here from to we've heard obviously so forth? $XX I'm to and China today head questions has the in questions States. trying million on question already go mean, about I $X how and do about $XX around and million how you

Albert White

will, Yes. by we it, do It's almost you at market, mean, we right. I it question, look a if when good right.

a very be in see, could what how market okay, doing just like we're the having success. ramp where a are we’re management. And well a success see we where back calibrate lot can Canada fits having going, Spain Russia phase we're of to we that should see there, there, a we are in Russia, things how to in We well that launched of we're Canada, place you for lot going. large myopia back So

to to similar in we've now, some groups. where to ends kind a some being the where and product, if say, what new million markets. we've we performing in of optometrists retailers markets, $XX independent going launched to largely in about excited build million. of really that we're $XXX it. product So we've just grow right that's already you're continue grabbing right markets, numbers like seen what – to hold buying additional we're you're how and we this that referencing, spots upside perform to And are these we been those take have who with up I looking the the to talking really of the this seen that million Hey, And numbers $XX we in think Because these at. other kind is okay, they we've

just in the what that's simply, push who back some little those those see Russia, historical and retailers success out If We into in grab then of basis the and think that numbers. in and monthly basically, rolling these on a answer a these it to you forth. you bigger seeing, want to to upside have and we're here so Nordic rates of to that or bigger groups buying hold right. it, and But I go region taking rolling Taiwan and and start a we're U.S., our

Joanne Wuensch

Thank you.

Operator

Baird. Jeff Johnson is from Next

line Your open. is now

Jeffrey Johnson

guys. Thank afternoon, Good you.

currency of just that But of tax the the interest topics year? bottom most what you line still big in does full-year benefit maybe think quarter expense way us, guide? expected the in questions, was Brian, to think to and and rate about now. the the help Is offset have kind been still right And the this covered the it? I now can

Brian Andrews

expect the going Sure. Yes. expense would Sure, neighborhood interest from Jeff. million. probably Yes, full-year, to of for I is year, the be $XX down in last

XX.X%. is tax to I'd tax going neighborhood it's rate to probably say bounce – bit, little of Your rate going but be in the a around somewhere

million As was relates FX and it was the $XX.X FX EPS. $X.XX to quarter, it favorable to revenues for

Jeffrey Johnson

year, And year, at the the Brian, for ballpark I'm is Yes. favorable that $X.XX for so or about range? a about sitting

Brian Andrews

tailwind that of That's it's in about I'd kind right. percentage I mean, say kind X range. of

Jeffrey Johnson

Yes.

XQ right, tonight. XQ XQ If obviously think updates Al, got of picture XXXX. then, bigger of XXXX, guess math, I question a you're relative I XXXX, I've And one positive lot you, for but Thanks. the Okay. up not to

understand to You're look Is your same guide? we goal, but conservatism? X% or rate I'm up Thanks. being of of Is few really, next three over don't to through kind a in I flow just XXXX just X% X% quarters you're about to is the guide CVI, X%. currency. about growth little XXXX? for full-year just constant kind relative kind that why quarters? the at next Or at trying the the to of that on up conservative When closer that X%, the you're

Albert White

a bit our people should guidance? are question, lot give not. know and back right do? now day, the we here. and Good of business you're of feel direction What of end forth right. went Should Yes. I annual on a we're we we Should At the have give we kind a Yes, quarter? visibility like little Jeff. We decent we the going.

guidance. annual we decided the to give So

you're I'll – this think prudent still it's way, be I giving it pandemic, maybe annual that little when a you're conservative. guidance in probably a and answer to

Jeffrey Johnson

Thanks, All Yes. right. sense. guys. Makes

Albert White

Yes. Thanks.

Operator

Marcus Next is Robbie from JPMorgan.

open. now is line Your

Robert Marcus

a Thanks for this the product answer lot historical or I the sectors. switches the that I results – taking question. isn't the Great. could new what competitive tech med like across talk of seeing environment Al, was I We're of at seeing today. you're know hearing was really happening I feel trialing you in rates. But different about hoping

there's So your And in part just the more terms that then of on seeing to quarter those you and the what confirm of are competition? products question, any relative constraints, daily in how impacts two from the wanted no expectations manufacturing silicone hydrogel? versus did

Albert White

constraints, so There Robbie. the more no of manufacturing one, so forth. Brian speak, to do, that. had are on we kind mentioned and that out product take activity finished we restructuring needed Sure. up ramped second woods, Yes, we're you I'll to we've so of the if speak that

and not good So constraints do in shape that we're on have anymore.

out On there past, against, the doing same. we're that. yes, happy I So space, you our we competitors talked launching I'm go very to in say big And out know we have are who mean, this products. good competitive two a guys environment, and the about there I

product it activity. been long MyDay heard competitors been a think terms about I a We've toric. than launch time. more interesting capacity we've able active because a on have It's we're like in haven't right. our where we been to MyDay constrained our put really, for of in position there out But you guys

feels around while. So to it's us though it times little a at even launch, it's for like been brand a new

with products good doing So out yes, I and good competitors things there. some mean good they're

think basis. are they on than little we're and global I we think probably bit are active a I a too, more

I are the going be back at. to was X%, share. not and rate you higher of The But were of than too we're going the add little to of cost. the think lot core that. we go. is you rates what other we're pre-COVID obviously go what taking mean where growing and I growth a to that's to that's to much know that a kind I bit X% ultimately to And industry mean, because growth than looking So

Robert Marcus

Great. Thank you.

Albert White

Yes.

Operator

is Co. Next from Lichtman & Steven Oppenheimer

Your line is now open.

Steven Lichtman

Hi guys.

the of of Just ones gross Brian, moving margin, of a parts. here quick a mentioned at on couple number sort end. you

margin you in both gross guess any XQ in provide for forward, can Looking us can I directions of the in and go? terms full-year, where

Brian Andrews

Yes. QX Not too really. from Steven. Sure, different

to it going FX have mix move of a obviously and that's volume-driven. might absorption, You're bit manufacturing-related product that little around,

as in So bounce I'd landing pretty that go of pick sales year. neighborhood the through probably up, starts to to landed stuff even probably close that XX.X% throughout year around say gross on margins once somewhere QX XX% sort But away. we to where get we we'd between the

Steven Lichtman

you with Al, then, day forward, looking looking you on the of driver toric ahead clariti And it. are versus and some the supply MyDay Thanks. how certainly thinking see of your that's MyDay starting to daily business. catch-up? versus about you say improvement pull forward? and clariti? of are Or the of But be a MyDay equal kind sort led think beyond Got they'll the hydrogels, Do sort supply contributors silicone even

Albert White

MyDay kind demand Japan's the and The well toric. going market will ahead there. big growing, Yes. It's add, where thing clariti and the doing especially premium is world do fairly Clariti now, certainly good pulled would daily that still and mass is is MyDay MyDay the more be toric now, strategy clariti of the in daily go to Right MyDay I silicone that's there. there usual but should well. two-tier around product very question. our in the and option of high market and has only And a is is as kind

be will, that in So “free of kind us expect I growth” marketplace. to you if would that for

know for I And that strong. a to I really, if juice it'll doing well. is it change. up So And don’t clariti growing, ends mean grow. – toric don't it see more. continue I demand really bit the little that'll think is really I that at MyDay up

high, good, low doing it's And strategy a right. of so mean, a well, day, so. regardless both of them I the at it's of the with kind end

Steven Lichtman

That's helpful. Thanks guys.

Albert White

Yes.

Operator

Next from Cleveland is Steve Willoughby Research.

now is line open. Your

Stephen Willoughby

fits talked on potential how I you you year-over-year. the that year quarter? for or of any Do think over see most a apologize if Hi you if fits I being XX% you be there. last have next believe two? as Thanks But recent was impact, guys just guys And fits quarter, guys there taking of down Al, Yes. what’s question. wondering, sort in my I being any, I about at residual from the period commented this impact down all. time? out wondering was prolonged could we the looked could over

Albert White

one. tough Yes. It's a

what's improving is right fits and about kind of down, forth. up think people is a of now. And I fitting period see consumption you with so talk and happened COVID each can little because right and unique now

QX world on they're different because improvement looking than October, to we're back today December where was go calendar we're little so the that So tough and stuff. it's like say, across a clearly the Board that seeing in November,

So to to little a it's answer. me hard

in strong. at that activity of bit on last it I if little see back-to-school all see that been fit think to start I much about probably kind look don't three anything, I that stuff I am six or on optimistic, fit increase that basis a any anything, an activity, I'm kids months. of kind over going concerned that we're of as more too consumption more activity a the has global I because than so going activity. mean,

Stephen Willoughby

I quarterly mind. guidance. could don't for I giving just wondering Brian, Brian, just just quick the And us our you about modeling help you're currency you're bit, if growth could not over with one realize a the if think swings we constant here? what quarters next I Okay. how you given then know guidance. of giving one was little wild like comps, couple But should in look full-year

Brian Andrews

bit, the I sequential not get going margins it growth. revenue a obviously, see to topline, to Al, beyond we'll mentioned into strong about that. we I'm results. gross with have about guidance. We stick but too little full-year I going quarters bounced talked your the much just already. Yes. detail gave around a to mean, and just I'm expect guidance But

Stephen Willoughby

guys. That's Thanks good.

Operator

the at time. No White. call further Mr. I this over questions back Al turn to

Albert White

Great. Thank you, operator. Thank you, everyone. Appreciate time. the

talked we We're so we've about, well. the about As started really forth. optimistic the and year up future

So months. thanks talking for three you forward and again Thanks. time to in look to the

Operator

and all Ladies today's you, conference for Thank you presenters. concludes call. gentlemen, Thank participating. this

a You may disconnect. day. now Have great

The Cooper Companies, Inc. (COO) 5 Mar 212021 Q1 Earnings call transcript