IDXX - Earnings call transcript Q4 2024 | IDEXX Laboratories, Inc.

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Operator

Good morning, and welcome to the IDEXX Laboratories Fourth Quarter 2024 Earnings Conference Call.

As a reminder, today's conference is being recorded.

Participating in the call this morning are Jay Mazelsky, President and Chief Executive Officer; Brian McKeon, Chief Financial Officer; Andrew Emerson, Senior Vice President, Corporate and Companion Animal Group Finance; and John Ravis, Vice President, Investor Relations.

IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that our discussion during the call will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today.

periodic risks in is this can our well our in these forward-looking under morning idexx.com. be regarding Securities website, Investor as noticed the Relations SEC statements press our visiting obtained information from and Commission, or available uncertainties the as and the Additional Exchange with by which the filings release of issued section

XXXX or generally GAAP GAAP. most financial call, reconciliation organic measures discussing not compared to be accepted of we growth accounting earnings by accordance website. unless in XXXX our directly growth provided In guidance, this the growth refer non-GAAP all principles During these to prior reviewing equivalent initial also otherwise quarter our certain with A please to the of references and which financial measures will prepared noted. Relations found to note visiting comparable growth, section period, may release, in year be measures our fourth is the and Investor comparable results

Today's prepared remarks our the of section earnings Instructions] after posted be the Relations call website Investor conference to concludes. will [Operator

call I McKeon. Brian turn would the over now to like to

Brian McKeon

the to X, pleased will quarter Andrew take you and March our outlook and call. the Today will XXXX. earnings company's be of I'm for who Emerson, Good everyone, year XXXX morning, IDEXX's as to on CFO welcome QX our results. review fourth full financial assuming details responsibility through

increased margin and our a Diagnostic benefiting recurring guidance solid of Revenue gains, fourth gains CAG X% X% Operating gross by performance end the operating basis, IDEXX performance profits organically, organic supported solid had ahead of XXXX, a high increased comparable X% our X% expectations. to which range. quarter from finish reported at reflecting in margin on as revenues. supported

rate. effective We also benefited activity, from tax positive increased impacts compensation our stock-based which saw

a basis. These of QX, up factors on in $X.XX delivery EPS XX% comparable support a in

for growth in revenues, business gains base, is imaging full growth full XX% the premium growth recurring installed global of in in X% our drove organic execution our water year software X% reflected This in year organic and business. organic recurring revenues, Diagnostic our IDEXX digital and expansion solid XX% instrument XXXX. CAG in

on year $XX.XX in improvement XXXX supported includes high per We end which full gains operating XXXX payment. our per including share XX% impact Full related to annual discrete delivered at accrual, financial resolution of X% negative a from negative customer a share, margin excellent year comparable contract litigation basis, a performance of of impact lapping of EPS by expense of $X.XX growth long-term comparable increased goals. the the

achieved through were greater-than-expected growth successfully results macro headwinds. innovation-driven work advanced and These strategy our and sector we as

solid As enter a Andrew discuss, our as for will sets foundation upon XXXX. this we build to business performance

global net benefits trends. improved average improvement growth XXXX X% with were X% of organic X% water. price X% growth organically diagnostic gains U.S. results. a X% revenue net QX, increased our reflected Worldwide with from supported X% begin of in quarter and in recurring organic segments, review including X.X%, IDEXX's across volume approximately price solid Let's organic in of organic revenue of in Fourth LPD to growth Results gains major realization including growth CAG, X.X%. by CAG business

long-term agreements and for benefits will earnings impacts last extension our in X provide successful noted of the which net incremental expansion in As call, growth XXXX, volume includes realization customer U.S. from price major IDEXX.

equivalent and growth high utilization drove relatively solid recurring net and organically IDEXX in sustained increased visit. per customer levels equivalent were for results normalized Diagnostic from X% QX U.S. new X% growth in execution a volume days. retention clinical fewer CAG diagnostic selling days. These gains, quarter, gains by higher supported business frequency impact volume of X% revenue the U.S. approximately in negative

solid achieved quarter. normalized clinical basis premium visit the in IDEXX point fourth to growth growth compared a levels U.S. XXX

U.S. to the macro continue in primary QX IDEXX's nearly which recent growth, constraint levels, impacts transitional the full on accelerated visit and of X% been work X% reflecting XXXX. declined on same-store year following clinical care through sector expansion has during pet in pressure pandemic. the This We health for the

year-on-year revenue our International price by CAG effects. premium Diagnostic gains results a growth, instrument international supported XX% improved in installed X% including QX recurring from equivalent new growth expansion in was reflected from and net international Strong volume days growth QX, double-digit in base. benefit business benefited

performance and gains by increased double-digit XX% SediVue global strong regions gains in revenues gains X% in installed the increase IDEXX consumable for XXXX, premium quarter days across our supported effects. global fourth was Catalyst a normalized base platforms. were premium IDEXX solid Consumable U.S. our and reflecting international in VetLab reflecting supported organically, instrument growth in consumable equivalent revenues. hematology by

placements. achieved XXXX, instrument reflected XX,XXX and Catalyst For excellent we approximately premium in the new full year competitive placements sustained high with quality

from fourth X,XXX QX. were by prior year Overall XX% instruments, also and gains in results premium revenues organically strong placed SediVue high in expansion instrument XX% continued In One. we placement ProCyte declined the down quarter, CAG supported Quarterly levels. of

IDEXX initiated supporting in value the quarter of also projected the inVue strong inVue of gains, including preorders. Dx We comparable shipments EVI

basis to the on addition organic Rapid well to as our pressure of slide flat growth. Catalyst lipase a to which revenue constrained wellness pancreatic assay QX. QX was as headwind were revenue U.S. on X% menu, we be Rapid in by results visits estimated the by an assay

Reference net in in the expanded X% normalized price growth. customer and price major from will long-term benefit by net near-term in QX Lab by supported organically Reference Global solid volume Lab impacts revenues gains. were regions new U.S. results which Lab were Reference growth moderated in Lab quarter QX. agreements, gains international and

Results software veterinary CAG and by to solid momentum placements. to ongoing in software in imaging and in be services strong recurring organically revenues increased continue X% growth compared levels. diagnostic prior year cloud-based QX, supported revenues

America and solid strong to in and compared Europe. X% organically continued poultry regions. prior solid our increased In Latin increased in QX, Livestock, in revenues gains QX year and other dairy U.S. driven X% revenues levels, by water U.S., supported by the business in segments, organically Europe gains

increased P&L. X% Turning a reported comparable were as supported adjusting gains. the positive by XXX approximately margins on of profits basis, gross QX and basis, XX a X% basis. and margin as Gross X% comparable X% up XX.X%, to increased basis for basis on a Gross points impact. FX comparable profit reported on operating points

and mix, strong gains margin gross reflected from growth, favorable margins. consumable by Gross improvement water price business net benefits higher supported

and basis in initiatives, innovation with up instrument comparable were expenses XX% in advancing spending our new as platforms. R&D our on Operating aligned X% reported increases quarter, reflecting a the including

were payment expense on a of XX to recorded a increase included operating an in margins point points XXXX. basis, discrete year operating approximately a accrual including the second points from related negative XXXX, basis quarter. basis year full impact XX%, customer the XXX margins basis Full resolution in negative an contract litigation impact lapping comparable For XX of

EPS applicable including per a lapping on benefits activity statute from per share-based related QX tax of benefited a $X.XX tax share release and a QX, reserve from effective XX% in nonrecurring $X.XX share, was tax to In an share rate, per up lower of limitations. comparable basis. benefit EPS from $X.XX compensation

million hedge share per $X EPS drove a approximately exchange gains. net $X.XX headwind the in Foreign of quarter, in

EPS on was to customer and benefits a payment. an share-based results basis, on and X% a full expense year a from discrete from of negative year impact Full XXXX $X.XX currency $XX.XX contract lapping including growth share, per increase negative X% negative $X.XX comparable of a tax ongoing include EPS an EPS to compensation $X.XX matter, related in XX% resolution accrual impact reported changes basis of a litigation from related activity. impact

and exchange limited Foreign growth. year impact had full on revenue QX

exchange by in per net hedge operating by gains. $X million profits of For million the full and year, foreign EPS share, reduced $X.XX $X

for for cash XX% aligned million flow net with long-term of was our full revenue. the approximately $XXX or X% of Capital XXXX and Free year income, was million $XXX goals. spending guidance or

We million in to shares XXX,XXX allocated fourth the $XXX quarter. repurchase

the $XXX shares. allocated million For repurchase year, full X,XXX million to we

X.Xx is ratio We and Our position. X.Xx a with net ended strong balance leverage XXXX cash. in sheet of of gross

walk through now initial financial Andrew our XXXX our concludes financial you outlook. That review. will

Andrew Emerson

Thank you, Brian.

of Turning to a foreign impact for revenues. At recurring reported to growth innovation. to We're billion, X% of strong revenue guidance of basis. IDEXX X% year range benefits $X.XXX to supported profit On from full have and on led X% X% increase overall, to year Diagnostic expect revenue a negative execution organic by growth is solid a X% to an and billion outlook. rates, an our providing revenue X% on initial planning organic this basis, X% we exchange new organic to CAG XXXX $X.XXX reflects full gains in current deliver growth. growth by exchange

gains expectations incorporates the with same-store outlook, CAG gains clinical drivers, decline X% outlook for realization similar and growth to XXXX our approximately terms IDEXX declines and visit In innovations. by in for The midpoint price range revenue IDEXX rate growth key of new solid drivers a U.S. Diagnostic X%. of benefits execution seen customer XXXX. increases utilization our including global X.X% global continued of targets These for in growth volume incorporate in midpoint of testing levels supported growth reflecting from recurring of net includes assumptions organic the

The potential lower for macroeconomic of range and potential visit the Diagnostic end captures the growth the higher improved growth trends, of further outlook of end for CAG while our sector conditions. revenue same-store recurring calibrates effects

aligned revenue $XX X,XXX million comments. IDEXX projected Jay with progress approximately our will includes outlook growth against placements. launch revenue inVue Dx instrument of discuss inVue in his Dx Our

of for net related in XXXX is basis comparable second basis, of outlook XXXX. an the XX.X%. operating basis improvement margin litigation On XX point full this of of lapping operating the Our year-over-year recorded quarter margin outlook points to discrete reflects to XX reported a expense year to the the benefit of XX% XXX

expansion high-margin margin unfavorable XXXX, for growth preliminary solid supported internationally instrument software levels materials. and lab planned productivity higher revenues, our basis risks by comparable in sourced CAG from by We're planning benefits on for is initiatives mix recurring This gross partially revenue of tariff estimates CAG Diagnostic Diagnostic offset on and business in gains gains business. from of cloud-based a

during $XX.XX basis lapping reserve the share litigation from to EPS per reflects of $X.XX QX and release net XXXX of includes a expense, a headwind tax quarter per $XX.XX XXXX Our XXXX. a discrete fourth increase X% growth This from on outlook the of to taxes comparable the benefit XX% X% a is related higher to share. nonrecurring EPS an of

Our EPS rates. of expense also at outlook net includes prevailing interest

$X.XX rates disclosed Foreign release, net a negative is the have hedge positions. expected established at press of our impact exchange to of in year-over-year

$XX value hedge terms million positions. In to U.S. foreign the project operating year we X% dollar a changes in $X reported and of the the by revenue net change of would full impact income in million sensitivities of rates, exchange by

of aligned with outlook cash free repurchases long-term increased incorporates deployment continued billion reflects flow our free growth X% X% XXXX ratio market $XXX towards reflects Our with approximately or innovation capital XX% This advancement goals. aligned or flow XX%, This share to our including our high our capitalization. of cash and equity agenda. confidence current in spending income million The outlook potential, execution $X.X net of is to capital strong conversion revenues. of estimated IDEXX about of for approximately

clinic benefits at agreements overall our major in we noted as revenue gains similar of our XXXX recurring realization with end planning Regarding pricing by Brian. year for aligned of full with U.S. the more net X% outlook, growth organic factors low QX of price customer days visit and through in trends work X% range headwind. revenue CAG to we're This X.X% Diagnostic QX a to X%, the

approximately growth negative rates. revenue X% at impact includes from foreign current to X% exchange Reported X% of

to in and QX prior levels product margins and reflects compression moderate This reported high are launches. XX.X% the Our XX.X%. support investments year for to compared recent operating comparable quarter in planned to reflects margins upcoming

during well positioned new financial execution with the and over of I to guidance will This and strong our update, to Overall, solid launches concludes robust on our call comments. turn XXXX. performance we're Jay continued for now set XXXX build product his

Jay Mazelsky

XXXX, strong of delivered out capped Dx. the morning, inVue and Andrew. thank IDEXX to another additional close quarter Good placements with IDEXX you,

business significant our commitment steadfast of celebrated expand point-of-care built to the care common the high-touch Our and results of canine most panel a on IDEXX anticipated in medicine. customer-centric veterinary recently a the a standard the of of lymphoma, redefining foundation we by commercial to We Cancer execution highly model, launch advancing quarter exemplified this will address canine aid including milestones, the with growth . This resilience over IDEXX slide-free of innovation, screening and in analyzer, oncology cancer. groundbreaking inVue transformative announced Dx, launch Dx time diagnosis that cellular testing. year, the

technology Catalyst new software. solution single Testing, life platform a menu for and SmartQC, X on of clinics. workflow and part Introductions updated commercializing of as interface our Pancreatic intuitive thousands concurrently also slide very station calibration We're IDEXX efficiencies. services products more platform our include and enabling easy with monthly Lipase supporting an by chemistry VetLab modern, which enables a embraced already test in

new installed commercial levels high teams year, post-pandemic operate base. adoption of a across supporting growth to across solid our retention XXs drove platforms instrument percent and modalities, business continued premium customer highs. levels realization, IDEXX's utilization X% testing testing gains, core via level our this net at price in diagnostic premium instrument sustained High levels placement high a major

The IDEXX coming EVI preorders inVue benefit over which benefits Dx, from year-on-year gains nearly the year. delivered strong global for team very business incorporating also when will our X,XXX

These provide solid revenue categories. IDEXX business. gains important renewals saw solutions bring the important highly expansion through also growth our our value customers, the extension Lab supporting customer of their to testing contractual will XXXX X highlight which practice diagnostic Reference volume for major agreements, and

XXXX owner pet pet expanding veterinarians diagnostic double-digit Vello, patient driving adopted full cloud-native by care placements the a year seamless business in was helping and software gap of operational clinics enhanced communication engagement and also PIMS has These highlight for nearly now the we're for owner and our and potential increased advancements Vello, bridge and a our the experience delivering of growth visits alike. software pet unlocking practices, solution, in streamlining engagement by pivotal efficiency. XXX launch with while between owners diagnostics role of clinical our the frequency.

dynamic in environment clinical pressure delivered and in which was sector a macroeconomic execution continued strong saw The visits.

owners of health. care, in better prioritization Diagnostics higher standard driven strength the central in enabling diagnostic continued the half highlights pets some demonstrate work by clinical outcomes a visiting pet care, of use role The the of advancements of value preventive technology in proactive medical place growth the pet nearly play U.S. in to awareness of screening clinics, pet bond For interest a in reflecting parents key of and form pet the include of benefits. health as visits and blood testing. on owner

strategy use such included is testing Start the Simple be Cancer programs positive this support inspire of which to IDEXX care commercial Our marketing attractive and at pull-through. through as like to innovations preventive Dx, trend prices will

IDEXX's teams and commercial the a globe. to customer deep of success, expertise, commitment cornerstone execution focus of our our continues be reflecting around the

that indispensable retention approach partner of has Our partnership rates customer to and efficiency continue yielded see exceptional growth in an IDEXX ensuring over their as XX%, practices goals.

visit to IDEXX trust navigate them Customers help challenges of and trends. staffing

by chemistry, double-digit nearly growth as premium robust is the SediVue and inVue Our driven new as IDEXX placements placements of across Dx. hematology instrument first installed platforms, base well

in suites technology benefit focus to a We area the point-of-care uptime innovations measured fast, years. bottlenecks while make for competitive we medical instrument our common their IDEXX easy-to-use since with Customers with and hungry interface, in usage. that workflow in consumables minimizing also mission progress growth such supports load-and-go real-time VetLab full a capability, as an placing results greenfield accounts, of strong get continue are

baseline. benefit healthy base rapidly innovations rapid over for large, new installed of as our bit in menu Lipase XXth help adoption such the visit such XX Pancreatic testing Pancreatic analyzers, a to is XX,XXX Menu support the clinic as allow chemistry for volume Lipase, that such An extension example, premium growing global a additional extensions over years. of

of X of global strong performance outside our investments premium targeted showcase significantly past Double-digit region the base years. international contributing U.S. Our growth our commercial over in to story. underscore our expansion XXXX, the the installed benefits

potential. but where Asia Europe to only gains, not regions Pacific consistent has utilization we organization and driven high-quality continue sales international in see placements particularly also secured maturing untapped the diagnostic Our

heart very consumables teens. double-digit Diagnostics we region's strategy, Spotlighting quarter performance, satisfaction commercial and of sector-leading CAG IDEXX with of revenue saw trust. levels seventh in high European consecutive the sustained the recurring our by our remains growth Customer strong VetLab growth the of supported engagement at

matter and through gives feature This not reference and that to order status the sample is our expansion time VetConnect investment areas IDEXX's such provide turnaround PLUS to now the ability loyalty, solutions. subject of as modern on expertise part customer only the lab diagnostic strategy remains in consulting but information. access This complementary support clinics veterinary care. customer the that not medical only testing go-to also ensures but partner focus workflow help navigate of drives IDEXX that complexities optimization our success organization, for

of for Dx inVue launch life The IDEXX intelligence taps that optics, menu morphology, of Dx artificial well-understood, and to been of with use. clinically inVue cases one exciting technology XXXX, ease step-up advanced point-of-care combines has and new as high-volume a the diagnostic marking developments consistency X on workflow blood a most insights Designed in and and from a focuses diagnostics. of deliver a transformative into performance. The slide-free platform, automation cytology testing ear in initial unparalleled benefit use era

continues with QX, limits in globally end Customer managers worldwide. of been clinics platform. though preorders geographies level this for to select preorders some for account IDEXX International as enthusiasm the inVue in This our interest taking U.S., take. begin next-generation have be transformative QX, inVue robust like similarly of underscores high we in strong the exceptionally interest of the has Dx nearly placed orders potential we X,XXX Dx of reflecting number by demand the the on

feedback is a or the placements with through have IDEXX complex previously, in easy best-in-class initiated controlled a As results I Customers customer amazed And in we exceptionally minutes. preparation how of experience, inVue the QX. ramp for been experience are positive. slide trials placements, analyzer with eliminating to and interpretation, need for the simply initial will use, customer XXXX. gradually the launch in to customers, both mentioned Dx we from ensure Early up

goal is placements we made the supply and chain ramping towards support target Underpinning level year over X,XXX-plus march placement operations manufacturing of have guidance X course the outstanding progress, years. teams financial as inVue our the IDEXX and our XX,XXX analyzer placement this support of to over installation to critical a for Andrew continued The growth bring capacity representative both our to customer us transformative field to upon is placements, service the to while has of been expanded platforms. this core provide ramp instrument base. moment and our team trained inVue global shared

addition and expand significant we aspirate with further inVue Dx's track unlocking diagnostics. XXXX, for of capabilities ahead, oncology to testing needle in on lumps in the fine or remain bumps opportunity later FNA Looking IDEXX

diagnosis launch innovative of VMX, Animal significant with in and oncology. to have need for in in as attributes as aid addressing breakthrough for an canine March aid an a screening and and per $XX The represents solution test performance pioneering Cancer diagnostic early little as the patients. early-stage This Dx step panel forward detection excited veterinary Dx screening We're included with select Cancer cancer of part announced IDEXX cost diagnosis IDEXX has lymphoma, advancement cancer critical the test. a diagnostic as time Healthcare, turnaround a Priced panel as in Companion panels. for

will managed, implications of canine and positive for is how change the will patient healthier with This how longer, cancer change its cancer care and detected support lives. when likely is early diagnosis

Cancer turnaround of the performance, an attributes panel, the much and the care cost to broader cancer Dx as blood time part work. screening the Given a preventive of opportunity inspire of inclusion is essential

and cancers one will in of lymphoma initially dogs. Dx launched Cancer The detection, panel treatable most the with common

an XX% innovation. Over cancer the X collectively opportunity, of account dogs. estimated in billion the to underscoring addressable prevalent the over This the into cases panel expanded will canine which X diagnostic tap of for $X.X next most expand cancers, will this potential include years, menu

optimizing vertical success, a enabler With fostering growth Our supporting and enhancing cloud as pet reinforcing veterinarians a to placements, remains offerings role of veterinary diagnostic and software practices owners. data by and deeper adoption in a practice needs. ecosystem position with leader tailored in SaaS connections clinic our pivotal software critical double-digit in workflows efficiency, plays

of One been ability pet-owner improved practices since seamless XXX of expansion demand base at has the its diagnostic Early by QX. application. year's address increased standout and clinical This Vello points while embraced visit growing achievements and Vello, owners. communication highly relationships the Designed nearly engagement user was with improved address the have year-end, critical revenue. doubling our from outcomes, to and for veterinarians usage the pet pain reporting results to encouraging, visits, stronger been workflow app fostering higher clinics deployment between Vello's underscores participating

in We have XXXX. in development and investment and meaningfully Vello XXXX now through increased resources

in communications, personalize Vello's road with ahead, value Looking our Customers unlocks and development appreciate that ability and growth. tools, an greater commitment even upcoming integrating opportunities to new engagement including expanding to integrated advanced way suite promises a focused map enhancements the for messaging, diagnostics streamlining analytics. on software

Beyond native finished top seeking choice We XX% record the expand continue software in we of that solutions. base Day a year-over-year, installed our of remain at August. base to PIMS by installed estimates offerings year PIMS, of clinic expanding scalable with We Investor placed number our Vello, cloud for modern, a in cloud, shared portfolio. ahead broader our as XX% our the

allow workflow workflows. Web engine on our IDEXX care. processes spend only PACS, imagery such focusing simplify also experienced double-digit more subscriber also points cloud at addressing as but imaging dental native patient time relevance its to pain These key advancements growth, demonstrating clinicians complex not

diagnostics The care a delivering to of unlock we value intuitive, software proposition. By levels integration and of their and comprehensive providing to cornerstone while new of clinics patients. superior efficient performance empower IDEXX's tools, remains

on innovation with veterinary recurring software growth revenue practices and move drive we focus our worldwide. into continue to will our XXXX, partnerships As deepen

IDEXX the of pets, the page have our dedication accomplishments for employees work innovations. As in setting a we to robust people our while turn promising results steadfast IDEXX these beyond, my by a for have XXXX, nearly well-being XXXX value financial new I possible. and whose delivered deepest on we supported of wave and and Together, made gratitude its health create customers, long-term stage XX,XXX by to and hard and the employees exceptional enhancing extend livestock. purpose: remains shareholders

XX the years contributions of over for as IDEXX's XX-year member thank a made the to last spanning he IDEXX Brian both CFO. like as has a exceptional Board I'd over our McKeon and

of down March CFO as previously X. from announced, will Brian stepping the role as be As

been develop finance leadership future build Brian's and a has to of talent. contributions team One world-class many

will including business, It's to years more X. day of well in years become Andrew who is to he industry increasing as brings new He our Emerson, welcome care and XX time. my CFO responsibility, our health great of is of in Andrew working the than pleasure with sector roles IDEXX March finance to at side set side Brian our on X. versed and contribute throughout over X by this our strategy, experience

with Brian IDEXX a advisory retirement until date will senior June and capacity for a order X remain to smooth ensure seamless in transition his help in of Andrew.

With that, I'll turn it back over for Q&A. Thank you.

Operator

The Wright first from question Stanley. Instructions] [Operator is Erin with Morgan

Erin Wilson Wright

been in you with start years, Brian, forward. working But questions, with over to working And terms kind Andrew, I'll the looking retirement. as of your it's innovation. too, with my of and congrats move great on forward you we

I X guess, innovation to assumptions assumes point that speak to Is guidance can growth about of XXXX? contribution terms in in So what CAG recurring the you adding now you? for

but there preorders guess, and just X,XXX. update I of placements, you are the limiting that inVue of I I wanted XX, And to on front. U.S., on why in get preorders are guess, an

assumed I guess, adjustments is I on just guidance there? guess, offering as to backlog for rollout and anything timing like waiting So more AI front? a when such why training Is FNA there or that, you Is do that there or what to necessary expect the or of practitioners needed? FNA? the well is launch there

Andrew Emerson

over Jay Andrew. talk a to is with hand inVue. what's to off to about I'll this bit included Happy guidance, in kick and it us Erin, the then

instrument as what in we initially inVue and we launch remarks the from a inVue. on $XX of we've What Dx the placements Just platform revenues in get platform. launch we benefits noted X,XXX innovation provided, million the of the prepared approximately like is terms

that's captured about good that, our feel in we overall So guidance. but

at other we've we his to the continue but But benefits PL point. both expect build highlighted to We out as momentum in broken included we to that, do and in areas, Jay guidance that broken and necessarily going just this we cancer, us allow have out. domestically haven't the internationally. good from They're provided feel about those haven't We innovation remarks.

Jay Mazelsky

Yes.

So I'll there, take Erin. it from

of lens, and disclosed, is I'd that that's been close the QX. X,XXX As XXXX. and I in very a the interest talking the preorders we've are FNA things that cytology we shipping morphology in has then customer responding say customer customers ear to the and began From that high, system, menu, with been reflected attributes of key some starting blood indicated. later the to in about, what

very sometimes -- these the accurate integrated way an is want see use preparing well also cases, really operation. And the and course, see customers bottleneck, the intensive slide-free practice. of volume, consistent, workflow the high like as minutes. And day, end they into how understood, They at what clinical XX of deliver as results. highly to What XX, see the able of they that. they slides well inVue They being

for analyzers. In terms all very the approach, of process launch and actual launch we a follow tried controlled and true our

any since being us. will excellent the over delivering that X,XXX to tweaks with come making experience. world-class I development starts is we're exceptional in instrument at a It's is they what the it aim as always say There's have fourth We deliver know my of product XXXX, IDEXX. They premium And we an indicated, launch ramp this fact, of year. customer In that I of organization. launch. part up would progress. plan as plus the What expect

Manufacturing and aren't achieve are customers us FNA are strong plan, answer plan. to they take around not. for of question in delivery, to specific And and they're the to waiting, waiting that puts position ahead a installation capacity your

Erin Wilson Wright

Okay.

action notable that? us And lingers sort a you guess, XXXX? XXXX? that does or lap when remind repricing of changes then I a helpful. headwind guess Ref account incremental in customer some less in XXXX. it fully assume quantify an I into standpoint, you headwind of from Is how lapping of headwind care any taken, can your And us guidance you Okay. net-net That's that or through help can of Lab? at point Great. Presumably, still you're

Andrew Emerson

just just was his would expect Brian noted did that on the results. we QX on large full be In end remark So in captured lapping range, to pricing, what we given on customer we had X.X% that the X the lower specifically, commentary for that X% to year. of

internationally But we continue our strong we throughout good XXXX. to installed our we that captured will a and that double-digit we we installed to have as lap So in customers base, our where year. the well to work we've momentum X% feel guidance. that as of growth, And base for both I ability expansion had our terms saw continue again, with where think globally . in expand

Operator

from Schott question with JPMorgan. next Chris is The

Christopher Schott

guidance. XXXX X the Just on

from can I you prepared about the you But on here? down just can X% there? think, XQ. you confidence from remarks, First, like, just sounds recovery It elaborate recovery and so from talk visit expect the trajectory the in or vet in

And Any second question year. kind as just about was expecting we ex the this on U.S. of that you're regions? differences versus think notable or the trends growth U.S.

Andrew Emerson

vet Chris, included the for signaled in the the U.S., for that just guide decline to similar the visits, in to so talk it we we about of was terms what intended we've XXXX.

So would approximately highlighted. X%, Brian that represent as

XXXX. ultimately, about saw decline exited saw some When trends as modest a anticipating we QX, as for visits year. clinical we similar in QX, visits decline overall. we just QX was anticipating we X% about clinical about saw in on the by X% are quarter. we But we again, think we're that differences a And

So not more as head and by really year little bit and quarter, the an around goes could improvement that into information we we'll provide year, as a on. the bounce

Jay Mazelsky

the stream. and growth We've, consumable seen of And a we've performance. execution, that's you and the fairly of overall over medicine. of terms And years. [indiscernible] standpoint just to seen in in know, longer really the premium a reflection in international double-digit response them nice as teens. invested tenure help commercial our One of expanding our footprint just international like innovations, other associated growth high in last X-plus strong quarters I maybe installed heavily In think we've ProCyte fact, good consumables spotlight solutions base our X Europe, from practice last instruments that to customer Chris, really and

Operator

with from of Michael The next is question Bank Ryskin America.

Michael Ryskin

have of quick couple ones, hopefully. I a

to dynamics. on back First -- the just the going

It is look shouldn't little of just accelerated here 'XX But fourth through and broadest into your want of You and in course are between bit. like all for its quarter-to-quarter sort reached of dispersion nonwellness trends, seems talked I XQ quarter. understand the struck we these dispersion I I what it know really sort and assumptions wellness through the things the volatile. dig me. probably that. into XXXX. a to just

really wellness relative or saw drop visits visits. sharply off clinical pretty You to total nonwellness

feedback wondering you're weak Just a just options the talked elasticity, more concern away quarters getting by about driven sort lot in that people potentially injectable of Obviously, that's trends some demand seeing drugs. visit there's turning price, backing from prior on I discretionary consumer the of you've impact and from what know is of some the what visits. ground, on therapeutic those including -- environment, you're that.

Just the that seen any color why wellness and deteriorate you course can you've over provide of on XXXX? specifically

Jay Mazelsky

Sure.

of wellness diagnostics some provide insight margin is the consumer We from the do think impacts inclusion went was overall environment. the interesting me Let at the and the the actually about on that, But thing macro up. Mike. probably there

a nice saw really we premium growth. So

the intensity Our is diagnostics. really higher of in went that veterinarian of these belief The pet visits use up. owner that quality

benefited inspire, owners continue on some through that. pull and ones in. to cancer that off, probably visits, there's or high potentially deferring dropping came potentially delaying wellness the And with included of from visits, we diagnostics think our marginal panel too. end Very pet quality, those we in IDEXX So some that we'll

Michael Ryskin

for bit Okay. don't this All are that for you then XXXX, follow-up Brian, in question, prepared little Andrew, noticed right. I the called but buyback. guys remarks, for more And think you the a share my out guide really I assuming or

said shares. X% in I reduction to think X% you

you've think you've of X% -- in most reduction. I that sort been years

in that? the for there terms color additional rationale of any Just

Andrew Emerson

Mike. Yes,

of has growth terms of kind confidence in high of have cusp here. innovation, which rationale, we the several of times. potential exceptionally on executed new in and company's the highlighted model wave I just that think we're really So We've well, Jay

strong reflects really flow generation. This free cash

QX, leverage a our deployment balance those higher Brian and a sustains X.Xx, gross was about call, terms rate. at of mentioned have healthy levels high on We really sheet liquidity. largely this in with the

does again, shares. we in positive term. achieve long X% that as reduction it this average momentum for to look So X% the a And at

Operator

Jon question with next Stifel. The from Block is

Jonathan Block

the most in inVue before premium was part. like XQ the for the so And rollout other the for essentially before 'XX, quarter, the It that Cancer the words, was Dx, IDEXX for year. strongest looks of mean, I

about follow-up. the you specific talk that's recurring just offset ask the it you quarter and question? CAG whatever the can a 'XX was, to premium fourth the quarter allowed I'll Then down, led still what pretty good arguably for uptick So in clinical, to to in X.X% up Dx the put some

Brian McKeon

Jon, it's Brian.

pointed As good a it was you very quarter. out,

year normalize Our we the a days, very growth. strong you saw consumable volume quarter growth when best of for

reflective made And on during Slide the good helpful year, benefit just is on progress really from momentum. instrument that's that of the think placements growing installed Pancreatic front. globally, innovation. that base international Lipase that The I we've some the

it's the really strong as company build at than coming. that that's sector. team into to enabled on well a be we've I grow the faster think I the rate of out, innovations So that the think with XXXX has the new seen And execution pointed that reflective year to will the is throughout us heading positioned

Jonathan Block

Got And a then question second it. on price. maybe Helpful.

take talk it's I can know, all the but going about can that's you're don't the I of implies, going it their because likely Jay, not sort don't think increases? margin. And consumer price you you think I that the the to just consumer, called dictate levels -- X.X% in you international the sort it these U.S., on think say I to your margin, markets. we in to the out on absorb of then disparate in reconcile for question that high you just very pretty $XX hence, expense, environment, owner a come It while is and, this B headwind interest providing to you 'XX. as part wellness think previous continue shock? this temporary where as pricing just that? sticker Mike's a slide do we fix, in pet a considering of to looks wanting the avoid wellness And acting were is, million to in the higher see So comfort pricing X-and-change we in do question, can

Jay Mazelsky

Yes.

about I'll interest talk and pricing me Let about to Andrew turn over the to talk expense.

are it a spend and more the for going course, sector minutes to different doesn't X, with determine Of X, things. not-wellness in the mind, veterinarian than our pricing Typically, say in wellness customers versus wellness Keep visit, pricing. I'm pet caveat owners. XX

And like pricing, differently. programs So they positions -- we compliance-based which it price a I number those -- offer think positions that of panels advantageously. very

very the A would are is for offer, of in [indiscernible] whether the whether what complementary say I innovations. antigen. in front through we and -- tapes be example, to the VetConnect we PLUS, mindful offer the it's differentiation we that of customer, fecal to lot that we of need add for

moderate price select Cancer think is per a at panels. I great Dx very keeping $XX-plus really example of that

an So indicated, comfortable and of price. just overall, we in panels. wellness of terms inclusion increase, the seen we're We've in I diagnostics where as

strong very fact, in increase In QX.

quality quality has So do address been the of fairly strongly. the... to you growing visits the diagnostics inclusion of Andrew, and the want

Andrew Emerson

in on Yes, the of interest, with align billion. of $X.X Jon, in does terms the $XX just terms planned our million that buybacks step-up of

So based that off calibrated again, rates. we've of

million about we noted, just in As did you Brian $XXX XXXX. as --

our level interest increased an captured and there's expense there, that So we've in costs.

Operator

with is next The question Clark Leerink Daniel Partners. from

Daniel Christopher Clark

now? preorders, or allowing a had limiting clarification fully just on quick you still are those you inVue. I Are

Jay Mazelsky

Yes.

field And North more in the just terms in we'll we the it we'll generally, America. So can continue limited, select what revisit our I year, of that. and say, it's offer we've throughout take funnel -- in internationally, opened to organizations would countries.

Daniel Christopher Clark

then for of about from worth just any a XQ? that's terms or separate visit Okay. Got trends thinking there calling how And you're XQ out weather impact question. it. Was in

Andrew Emerson

But so in we weather and as about good those just end on Yes, call types October. associated signaled with basis last today. the QX, the about of again, we the what quarter, captured guide we I into head in fourth certainly, points day, in outlook, that the our of Dan, weather we that anticipated feel we've at XX of presented we've we think the impacts. had seen early some saw

Operator

question next from Paribas BNP The is with Navann Exane. Ty

Navann Ty Dietschi

on vet First visits. the

in underlying potential replenish can If macro gradually. time improvement And and expected to you decline, Vet discuss impact you ] midpoint, in the factors [ embedded do further XXXX? Test in and terms the Vet expect of X%

is expansion XXXX led? we and SG&A And this margin with can expect should still and expansion? R&D then of margin inVue gross in and year discuss terms still Diagnostics launches you margin, And Cancer the the

Jay Mazelsky

Yes.

related less number to Just to some staff cover that talking continue on available. the they that. color for enterprise sense, think desire number to worked. hours drive In speak additional can practices, constraints capacity the levels hire -- to demand. as still accounts, more and some to and provide trends in employment We just they a of absolute more visit supply become to provide clinical around I'll veterinarians challenged just are more And or the to of corporate maybe

factor some primary more of a of macroeconomic result as is the and Probably environment, the cumulative impacts that. moderation inflation

Andrew Emerson

basis XX operating and Yes. improvement any Navann, year-over-year, just being comparable on about of detail a what points XX breakout overall is OpEx, basis on margin we XX points. didn't midpoint the to explicit we're basis an provide of the planning margin for gross here. But

I and time. that back have business. we think Certainly, ultimately. the potential reinvest making want innovation for about investments you'll we're good expect cycle we into right areas make here led support We feel be sure most as to the to the the order of to in over we again, gross margin that in growth

Jay Mazelsky

to Okay. full for of to Q&A to results. call. quarter this thank It's this questions IDEXX I'd pleasure everybody like another going morning. a and of conclude morning's our review their portion strong We're now year been

So thank participation and the your this you again we'll for morning, call. conclude

Operator

Thank Thank you. This your concludes for participation. you today's call.

disconnect. You may now

IDEXX Laboratories (IDXX) 3 Feb 252024 Q4 Earnings call transcript