IDEXX Laboratories : Q1 2024 Earnings Snapshot

IDEXX Q1 2024 Earnings Highlights (NASDAQ: IDXX)

	Revenue		Operating	Diluted
		Profit		Earnings Per Share
	$964M		$299M		$2.81
	Reported growth:	+7%	31.0% of Revenue	Reported growth:	+10%
	Organic growth:	+7%	YoY change in basis points:
	CAG Diagnostics Recurring	Reported	(10 bps)	Comparable growth:	+9%
	Organic growth:	+7%	Comparable	(10 bps)
	CAG		Water		LPD
	Revenue	$889M	Revenue	$43M	Revenue	$28M
	Reported growth:	+7%	Reported growth:	+11%	Reported growth:	(3%)
	Organic growth:	+7%	Organic growth:	+11%	Organic growth:	(3%)

Net CAG Revenue	Q1	Reported	Organic
Revenue	Growth	Growth
		year over year	year over year
CAG Diagnostics Recurring	$780M	+7%	+7%
IDEXX VetLab® Consumables	$317M	+9%	+9%
Rapid Assay Products	$86M	+5%	+5%
Reference Laboratory Dx and	$344M	+7%	+6%
Consulting Services
CAG Diagnostics Services and	$33M	+6%	+7%
Accessories
CAG Diagnostics Capital - Instruments	$34M	+3%	+3%
Veterinary Software, Services and	$75M	+12%	+8%
Diagnostic Imaging Systems
Recurring revenues	$60M	+15%	+11%
System and hardware	$15M	(1)%	(1)%

IDEXX Premium Instruments Installed Base

Q1 Premium Instrument	WW	U.S.	Intl
Placements
Catalyst®	1,668	570	1,098
New and competitive	1,150	289	861
Second	443	280	163
Premium	2,361	522	1,839
Hematology
New and competitive	1,207	309	898
Upgrades	1,154	213	941
SediVue® Dx	762	284	478
TOTAL	4,791	1,376	3,415

			Catalyst Installed Base			10%					Premium Hematology Installed Base	11%					SediVue Installed Base
			year over year
				(in thousands)												(in thousands)			year over year				(in thousands)
										69.1	70.4
									67.6														48.8
								65.8
				63.1	64.2																47.8
			61.5																46.4
		60.0																45.1
58.2															43.1	43.8
																41.8																		16%
																40.9
																39.5
																																					year over year
																															13.8	14.4	14.9	15.6	16.2	16.8	17.4	18.1	18.8
	Q1	Q2	Q3	Q4			Q1	Q2	Q3	Q4			Q1		Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
		2022					2023			2024				2022				2023			2024				2022				2023			2024

For full financial data, non-GAAP reconciliations and cautionary language regarding forward-looking statements, please refer to IDEXX's 2024 first quarter earnings release issued on May 1, 2024 available at https://www.idexx.com/investors. Amounts presented may not recalculate due to rounding.

© 2024 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations [phone].

IDEXX Q1 2024 Earnings Highlights (NASDAQ: IDXX)

2024 Growth and Financial Performance Outlook Commentary

• Updates 2024 estimates to refine high end of organic growth guidance, incorporate FX impacts from strengthened U.S. dollar and reinforce strong profit performance outlook
• • Adjusts revenue guidance to $3,895 million - $3,965 million, 6.5% - 8.5% growth as reported and 7% - 9% organic, incorporating ~$35MM negative FX impact and lowering high end of organic growth guidance by 1%
  • Reinforces Operating Profit margin outlook of 30.2% - 30.7%, supported by continued high levels of operating execution
  • Updates EPS outlook to $10.82 - $11.20, an $0.08 reduction at midpoint as reported reflecting ~$0.11 of negative FX impacts, offset by favorable updates to net interest expense. EPS projected to grow 8% - 11% as reported and 9% - 13% on comparable basis, including ~2% negative growth impact from lapping a customer contract resolution payment in Q1 2023

Growth and Financial Performance Outlook	2024
Revenue	$3,895	-	$3,965
Reported growth	6.5%	-	8.5%
Organic growth	7%	-	9%
CAG Diagnostics Recurring Revenue Growth
Reported growth	6.5%	-	8.5%
Organic growth	7.5%	-	9.5%
Operating Margin	30.2%	-	30.7%
Reported margin expansion	20 bps	-	70 bps
Comparable margin expansion	20 bps	-	70 bps
Negative impact of 2023 customer contract	~ 40 bps
resolution payment
EPS	$10.82	-	$11.20
Reported growth	8%	-	11%
Comparable growth	9%	-	13%
Negative impact of 2023 customer contract		~ 2%
resolution payment
Other Key Metrics
Net interest expense		~ $21
Share-based compensation tax benefit		~ $10
Effective tax rate		~ 22%
Reduction in average shares outstanding	0.5 %	-	1%
Operating Cash Flow	110% - 115%
Free Cash Flow	90% - 95%
Capital Expenditures	~ $180 million

Amounts in millions except per share data and percentages

For full financial data, non-GAAP reconciliations and cautionary language regarding forward-looking statements, please refer to IDEXX's 2024 first quarter earnings release issued on May 1, 2024 available at https://www.idexx.com/investors. Amounts presented may not recalculate due to rounding.

© 2024 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations [phone].

U.S. Companion Animal Practice Growth Update

As of March 31, 2024

Total Practice Revenue and Visit Growth

+ + + + + + +

Weighted Average Year-over-Year % Change Per Practice*

20%

16.2%

15%

Practice Revenue

10%	7.1%	6.2%
6.2%
4.7%	5.7%	4.5%	5.3%
5%	6.2%		3.2%

0%	2.0%																							Total Visits
			0.8%														-0.8%-1.4%		-0.8%
-5%																-1.8%				-2.3%	-2.7%
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1
			2019				2020				2021				2022				2023			2024

Clinical Visit Growth

Weighted Average Year-over-Year % Change Per Practice*

17.0%

16%

											12.6%
12%																						Non-wellnessVisits
8%											9.9%															Clinical Visits
	4.2%																							Wellness Visits
4%						1.9%
	3.0%																			-0.4%	0.3%		-0.8%	0.1%
0%																-1.4%			-0.4%						-2.1%
1.3%				0.2%												-0.4%	-0.7%				-0.2%
																			-1.7%
-4%															-1.3%					-0.5%
					-2.4%									-1.4%						-1.9%	-2.9%				-2.3%
																										-2.7%
-8%
	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1	Q2	Q3	Q4		Q1
			2019				2020				2021				2022				2023			2024

Total visits include clinical and non-clinical visits. In 2023, there were an estimated ~335 million U.S. total visits. Approximately 70% of estimated U.S. companion animal diagnostic sector revenue is from non-wellness visits.

Clinical visits are those where the reason for visit involves an interaction between a clinician and a pet. Non-wellnessvisits include those for which the reason for visit is sickness, procedure or monitoring.

Wellness visits include those visits for which the reason for visit is an annual exam, vaccination, or routine check-up.

• Note that we estimate net new practice formation adds ~1% of incremental market growth per year beyond per practice growth. ** Growth rate estimate with margin of error of +/ - 0.4% at a 95% confidence level.

Source: IDEXX Practice Intelligence data; sample of ~8,500 practices representing six different practice information management systems, weighted to represent the country based on practice size and region.

© 2024 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations [phone].

U.S. Companion Animal Practice Growth Update

As of March 31, 2024

+ + + + + + +

Contributors to U.S. Companion Animal Diagnostic Revenue Growth per Practice**

Q1'2024
Year-Over-Year
Growth (%)
				+ 5.0%
+ 7.5%
0.0%
- 2.5%

+ 9.0%

+ 10.0%

Q1'2023

+ 0.5%	+ 0.5%

Q1 Average

2019-2022

+ 6.0%		+ 11.0%

+ 1.5%

+ 3.5%

Clinical Visit	'Diagnostic	'Diagnostic
Growth	Frequency'	Utilization'
	% of Clinical	Dx Revenue $ per
	Visits	Clinical Visit
	including Dx	including Dx***

• Rounded to nearest 50 bps.
• Diagnostic revenue per clinical visit includes volume/ intensity of Dx activity and net price realization.

Source: IDEXX Practice Intelligence data; sample of ~8,500 practices representing six different practice information management systems, weighted based on practice size and region to reflect market composition.

© 2024 IDEXX Laboratories, Inc. All rights reserved. Contact: John Ravis, Investor Relations [phone].