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Sep 30, 2022
Mesa Labs Q2 2023 Earnings Report
Reported a revenue increase of 64% and an operating income decrease of 5%.
Key Takeaways
Mesa Laboratories reported a strong rebound in revenue growth for Q2 2023, reaching 12% organically and 18% on a constant currency basis. Profitability also recovered, with adjusted operating income excluding unusual items reaching 27% of revenues.
Revenues increased by 64% compared to the same quarter in the prior year.
Operating income decreased by 5% compared to the same quarter in the prior year.
Clinical Genomics delivered revenues of $18,435, representing 31% of total revenues.
Sterilization and Disinfection Control revenues reached $16,964, representing 21% organic growth.
Mesa Labs
Mesa Labs
Mesa Labs Revenue by Segment
Revenue by Segment
Sterilization & Disinfection Control Revenue
CapyFin.comBiopharmaceutical Development Revenue
CapyFin.comCalibration Solutions Revenue
CapyFin.comClinical Genomics Revenue
CapyFin.com Forward Guidance
The company is navigating macroeconomic conditions and supply chain complexities, but remains confident in its long-term growth potential due to its exposure to high-growth verticals and its operating model.
Positive Outlook
- Strong revenues growth in 2Q23, reaching 12% organically and 18% on a constant currency basis.
- Profitability recovered strongly, with adjusted operating income excluding unusual items reaching 27% of revenues.
- Strong execution of process improvement initiatives in commercial engagement, labor supply, and supply chain execution.
- Heavy exposure to high growth verticals in biopharmaceutical development, biopharmaceutical production, medical device manufacturing, and clinical genomics.
- Nimble operating model in The Mesa Way allows the company to remain confident in its long-term growth potential.
Challenges Ahead
- Supply chain constraints continue to weigh on growth.
- Navigating macroeconomic conditions that may impact near term demand.
- Complicated supply chain conditions are top of mind as the company enters the back half of the fiscal year.
- Gross profit percentage contracted by 280bps vs prior year driven by FX and higher labor and labor related costs in Sterilization and Disinfection Control segment.
- Gross profit percentage contracted 30 bps due to the strengthening of the USD, unfavorable product mix and higher labor and materials costs in Biopharmaceutical Development segment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income