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Mar 31, 2023

IDEXX Q1 2023 Earnings Report

IDEXX achieved revenue growth and EPS increase, driven by strong performance in the Companion Animal Group and benefits from a customer contract resolution.

Key Takeaways

IDEXX Laboratories reported first-quarter revenue of $900 million, an 8% increase, with EPS of $2.55, a 12% increase. The results were driven by Companion Animal Group diagnostics recurring revenue growth and supported by a $16 million customer contract resolution payment.

IDEXX achieved first quarter revenue growth of 8% reported and 10% organic, driven by CAG Diagnostics recurring revenue growth of 9% reported and 12% organic

Strong organic revenue growth supported by IDEXX execution drivers, including record first quarter global premium instrument placements

Delivered EPS of $2.55, supported by operating margin expansion of 150 basis points as reported and 210 basis points on a comparable basis

Incorporated positive adjustments to full year revenue and EPS guidance ranges, raising low end and maintaining consistent targeted strong performance at high end

Total Revenue
$900M
Previous year: $837M
+7.6%
EPS
$2.55
Previous year: $2.27
+12.3%
Gross Profit
$543M
Previous year: $499M
+8.9%
Cash and Equivalents
$111M
Previous year: $205M
-45.6%
Free Cash Flow
$144M
Previous year: $82.9M
+74.3%
Total Assets
$2.81B
Previous year: $2.59B
+8.3%

IDEXX

IDEXX

IDEXX Revenue by Segment

IDEXX Revenue by Geographic Location

Forward Guidance

The Company is updating its full year revenue growth outlook range to 7.5% - 10% as reported and organically and EPS outlook range of $9.33 - $9.75.

Positive Outlook

  • Revenue $3,615 - $3,700
  • Reported growth 7.5% - 10%
  • Organic growth 7.5% - 10%
  • CAG Diagnostics Recurring Revenue Growth Reported growth 9% - 11%
  • CAG Diagnostics Recurring Revenue Growth Organic growth 9% - 11%

Challenges Ahead

  • Operating Margin 29.0% - 29.5%
  • Operating margin expansion 230 bps - 280 bps
  • Negative impact of foreign exchange ~ 60 bps
  • Comparable margin expansion 290 bps - 340 bps
  • EPS impact (~ $0.23)

Revenue & Expenses

Visualization of income flow from segment revenue to net income