Raymond James
45th Annual Institutional Investors Conference
Jay Mazelsky
President and Chief Executive Officer
IDEXX Laboratories, Inc.
March 4, 2024
Safe Harbor Disclaimer
The following presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on management's current expectations and beliefs, as well as a number of assumptions concerning future events. These statements are subject to risks, uncertainties and other factors that may cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements contained in the presentation include discussions about growth opportunities for our business and industry, our anticipated total addressable sector opportunity, industry trends, our innovation strategy and plans, expectations regarding product development, product launches and capabilities of new products and services, future premium instrument placement opportunities, expectations and beliefs regarding the resiliency and durability of our business model, business plans and prospects, future operating and financial performance and other future events. No forward-looking statement can be guaranteed. You are cautioned not to put undue reliance on such forward-looking statements, which speak only as of today's date. The Company assumes no obligation, and expressly disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The reports filed by the Company pursuant to United States securities laws contain discussions of the risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements and you should carefully evaluate forward-looking statements together with the many risks, uncertainties and other factors that affect our business, particularly the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Quantitative and Qualitative Disclosures About Market Risks," in our most recent Annual Report on Form 10-K, as well as any subsequent filings on Forms 10-Q and 8-K. You are advised to review the Company's filings with the United States Securities and Exchange Commission (which are available from the SEC's EDGAR database at www.sec.govand via the Company's website at www.idexx.com).
We refer in this presentation to our 2024 outlook communicated on February 5, 2024. These references speak only as of the date on which they were communicated and shall not be deemed to be a reiteration or affirmation of the guidance or an indication that our expectations have not changed since that time. We also refer in this presentation to our long-term financial model, including revenue growth potential, long-term EPS growth potential, potential average annual comparable operating margin gain, and potential capital allocation leverage. None of these references constitute and shall not be deemed to be the Company's outlook, guidance or projections.
Non-GAAP Financial Measures
In this presentation, we refer to certain non-GAAP financial measures. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies. For a reconciliation to the most comparable GAAP financial measures, we refer you to our footnotes and the Appendix to this presentation, which also refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023, available at www.idexx.com/investors.
Please refer to additional footnotes in the Appendix.
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 2 | |||
IDEXX's Purpose is Aligned with our Business Strategy
"To be a great company that creates exceptional long-term value for our customers, employees, and shareholders by enhancing the health and well-being of pets, people, and livestock."
- Giving pets a voice through advanced diagnostics
- Providing microbiology tests that ensure the safety of drinking water and other water supplies
- Delivering diagnostic tests and services to monitor the health of herd and flock animals worldwide
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 3 | |||
Our Focus is on Companion Animal Diagnostics and Software
- Highly attractive long-term growth potential with ~$45B total addressable opportunity
- Global leadership position
- Innovation driven
- Commercial partnership
- Cloud-basedsoftware, data, and AI
- Durable recurring revenue model
- Attractive, expanding margins support high ROIC
© 2024 IDEXX Laboratories, Inc. All rights reserved.
Livestock, Poultry,
and Dairy
3% Water
5% | Other |
$3.7B
92% | AnimalCompanion |
of 2023 revenue | Group |
4
Consistent Strategy Yields High Long-term Revenue Growth Driven by Strong CAG Diagnostics Recurring Revenue Gains
IDEXX Revenue and Normalized Organic Revenue CAGRs ($B)1,3
12% | $3.7B |
CAGR | Other |
Revenue |
11% | $2.4B | ||
CAGR | |||
8% | $1.6B | CAG Diagnostics | |
CAGR | 13% | ||
$1.1B | Recurring Revenue | ||
CAGR |
Sustained Strong Growth Supported by Key Growth Drivers
+ Dx Innovation: diagnostic |
menu, new and |
existing platform extensions, |
integrated software |
+ Direct commercial model with |
subject matter experts and |
supporting ecosystem |
9%
13%
CAGR
+ Geographic expansion |
CAGR
+ Sizeable software business |
with 15%+ growth potential |
1, 3 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes.
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 5 | |||
IDEXX Solutions Deliver Exceptional Customer Value
0
Electronic Medical Records | Metrics and Insights | |||||||
Pet Owner Engagement | Clinical Workflow | |||||||
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 6 | |||
IDEXX CAG Diagnostics Recurring Revenue Growth has Outpaced Practice and Sector Diagnostics Growth
IDEXX U.S. CAG Dx Recurring Revenue Organic Growth and U.S. Revenue Growth per Practice*
(2018 - 2023 CAGR)
12.6% | |
10.1% | |
7.3% | 8.4% |
Total Revenue | Clinical Revenue | Diagnostics Revenue | IDEXX U.S. CAG Dx |
Per Practice | Per Practice | Per Practice | Recurring Revenue |
Organic Growth3 |
3 Non-GAAP financial measure, please refer to Appendix for descriptive footnotes.
* Note that we estimate net new practice formation adds ~1% of incremental sector growth per year beyond per practice growth.
Source: Analysis based on IDEXX Practice Intelligence data n = ~8,250 practices. Clinical revenue is associated with clinical visits, where the reason for visit involves an interaction between a veterinary clinician and a pet, including wellness and non- wellness visit types.
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 7 | |||
Pet Owners Worldwide Continue to Prioritize Pet Healthcare
~95% of Pet Owners Indicate They Brought Their Pet to the Veterinarian When Sick in 2023*
>80% of Pet Owners Would Reduce Spend on Other Categories to Prioritize Care for a Sick Pet**
95% | 93% - 96% |
U.S. |
Source: Based on pet parent responses to IDEXX Pet Parent Survey, December 2023, n = 1,808 pet parents. * Represents percentage of survey respondents to the question 'Have you made any of the following adjustments to your
spending in the past year?' who did not select delay/skip veterinary visit for a sick pet. ** Q: We often have to make trade-offs in our lives to fit our personal budgets and lifestyles. You will now be presented with a number of screens, each with two options that would potentially address one of these financial trade-offs. On each screen, please select which one of the two money-saving options you would be more willing to take if you had to choose one.
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 8 | |||
Step-up in Pet Population Drives Sector Volumes Higher
U.S. Pet Population | Average Annual Clinical | |||||
and Annual Growth* | Visits per Practice** | |||||
CAGR | ||||||
Historic Trend | 2018 - 2023 | |||||
+4% | +2% | +1% | ~1% | 2%+ | ||
+6% | ||||||
2020 2021 2022 2023
- Based on modeling of dog and cat population growth leveraging analyses of multiple data sources. **Analysis based on IDEXX Practice Intelligence data (n = ~8,500 practices), weighted to be representative of the U.S based on practice size and region.
© 2024 IDEXX Laboratories, Inc. All rights reserved. | 9 | |||
Pets are Living Longer and Diagnostic Intensity Increases As They Age
Average Patient Lifespan 2010 - 2022*
14%
12%
2022 Average Diagnostic Revenue per Active Patientby Age Segment**
$150
$130
$85
$65
$45
Puppies & Kittens | Young | Adult | Senior | Geriatric | ||||
(<1 year) | (1-3 years) | (4-7 years) | (8-11 years) | (>11 years) | ||||
* Based on an analysis of IDEXX Practice Intelligence data from 2.5 million canine and feline patients with recorded deaths from 2010 through 2022. Lifespan reflects median patient age at time of death. | ** Analysis based on | |||||||
IDEXX Practice Intelligence data (n = ~8,750 practices), weighted to be representative of the U.S based on practice size and region. Estimates are for the overall number of active patients by age segment, not specifically for those | ||||||||
receiving diagnostics. Revenue figures are rounded to the nearest $5. | 10 | |||||||
© 2024 IDEXX Laboratories, Inc. All rights reserved. | ||||||||
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IDEXX Laboratories Inc. published this content on 04 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 March 2024 17:25:26 UTC.