Conference Call 1 Fiscal First Quarter 2025 Financial Results Februar y 5, 2025 1 © 2025 Azenta, Inc. • All rights reserved Safe Harbor Statement This presentation contains certain non-GAAP measures which are provided to assist in an understanding of the Azenta business and its operational performance. These measures should always be considered in conjunction with the appropriate GAAP measure. Reconciliations of all non-GAAP amounts to the relevant "Safe Harbor" Statement under the U.S. Private Securities L ...

Financial Data and Key Metrics Changes - First quarter revenue was $148 million, representing a 4% year-over-year growth on both reported and organic basis [44][45] - Non-GAAP EPS for the quarter was $0.08, with adjusted EBITDA margin at 9%, reflecting a 400 basis points expansion year-over-year [45][46] - Free cash flow was $22 million for the quarter, with $530 million in cash, cash equivalents, and marketable securities at quarter-end [46][54] Business Line Data and Key Metrics Changes - Sample Management Solutions (SMS) revenue was $81 million, up 3% year-over-year, driven by growth in Sample Repository Solutions and Core Products [49] - Multiomics segment delivered revenue of $66 million, with a growth of 6% year-over-year, supported by strong performance in Next Generation Sequencing (NGS) and Gene Synthesis [51][52] Market Data and Key Metrics Changes - In China, organic revenue growth was 7%, outperforming the market despite macro challenges [52] - NGS grew 11% year-over-year, indicating stabilization in pricing and volume growth [51][122] Company Strategy and Development Direction - The company is focused on portfolio optimization, operational excellence, and value-enhancing capital allocation [20][22] - The Value Creation Committee has been established to oversee strategic initiatives and capital allocation decisions [35][112] - The company aims to maintain a disciplined approach to capital allocation, prioritizing growth initiatives and operational improvements over share buybacks [111][112] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about gradual market recovery, reiterating full-year 2025 guidance of organic revenue growth between 3% to 5% and adjusted EBITDA margin expansion of 300 basis points [19][55] - The management highlighted the importance of continuous improvement and simplification in operations to drive long-term value creation [22][24] Other Important Information - The results of B Medical Systems are now treated as discontinued operations, and the sale process is underway [4][17] - The company is implementing a new business system and operating model to enhance operational efficiency and performance [23][24] Q&A Session Summary Question: Size and timing of the U.K. Biocentre BioArc opportunity - Management confirmed that the BioArc Ultra project was included in guidance and is expected to be operational early in 2026 [60][62] Question: Impact of Illumina being added to the unreliable entity list in China - Management indicated low risk to NGS business in China, as most operations are partnered with BGI, allowing for flexibility in platform usage [64][66] Question: Guidance for Multiomics and potential deceleration - Management acknowledged that guidance reflects a cautious outlook, with NGS experiencing strong growth but potential challenges in Sanger Sequencing [70][72] Question: Status of B Medical sale process - Management stated that the sale process is still in initial stages, with a focus on maximizing value [82][83] Question: Exposure to tariffs in China, Mexico, and Canada - Management assessed that the impact of tariffs is immaterial, with minimal risk from operations in Mexico and Canada [89][90] Question: Guidance for Sample Management Solutions - Management noted that timing issues affected SMS performance, but a robust pipeline and backlog are in place for future growth [92][93] Question: Gross margin sustainability and operating margin ramp - Management expressed confidence in gross margin trajectory, with expectations for continued improvement [98] Question: Academic and government exposure and NIH impact - Management confirmed that recent delays in government-funded projects are expected to resume once funding decisions are made [102][103] Question: Cell and gene therapy market performance - Management reported strong progress in the auto cryo business related to cell and gene therapy, with significant growth observed [106] Question: Share buyback program and M&A strategy - Management clarified that share buybacks are a lower priority compared to growth initiatives and M&A opportunities, with a focus on demonstrating operational credibility first [111][112][114]

Business Strategy - Azenta, Inc. is pursuing the sale of its B Medical Systems segment to simplify its portfolio and focus on core businesses, aiming to drive revenue growth and profitability[2] - The company aims to enhance shareholder value through strategic evaluations and operational improvements[2] Financial Performance - Total revenue for the twelve months ended September 30, 2023, was $551,950,000, with product revenue at $176,100,000 and service revenue at $375,850,000[9] - Revenue from continuing operations for the twelve months ended September 30, 2023, was $551,950,000[16] - The company reported a net loss of $164,170,000 for the twelve months ended September 30, 2024, which includes a loss from discontinued operations of $140,531,000[9] - GAAP net loss from continuing operations for the twelve months ended September 30, 2023, was $(7,660,000)[14] - The company reported a GAAP net loss of $(164,170,000) for the twelve months ended September 30, 2024[14] Adjusted Financial Metrics - Adjusted operating income from continuing operations was $4,181,000 for the twelve months ended September 30, 2024, after accounting for various adjustments[12] - Adjusted EBITDA for the twelve months ended September 30, 2023, was $22,235,000, with an adjusted EBITDA margin of 4%[16] - Adjusted EBITDA for the six months ended June 30, 2024, was $29,155,000, with an adjusted EBITDA margin of 10%[16] - The company’s adjusted earnings before interest, taxes, depreciation, and amortization for the twelve months ended September 30, 2024, was $46,889,000[16] Losses and Charges - Operating loss from continuing operations for the twelve months ended September 30, 2024, was $50,561,000[12] - The company has incurred restructuring charges of $6,766,000 for the twelve months ended September 30, 2024[12] - Restructuring charges amounted to $4,577,000 for the twelve months ended September 30, 2023[14] - The company incurred stock-based compensation expenses of $8,830,000 for the twelve months ended September 30, 2023[14] - The company reported a loss from discontinued operations of $(6,596,000) for the three months ended September 30, 2023[14] Assets and Cash Flow - Total current assets amount to $832,807,000, with cash and cash equivalents at $280,030,000 and accounts receivable at $156,273,000 as of September 30, 2024[7] - Cash and cash equivalents decreased from $280,030,000 to $151,162,000 in short-term marketable securities as of September 30, 2024[7] - Interest income, net for the twelve months ended September 30, 2023, was $(43,541,000)[14] Discontinued Operations - As of November 12, 2024, the B Medical Systems segment qualifies as a discontinued operation under U.S. GAAP[3]

Core Insights - Azenta, Inc. reported financial results for the first quarter ended December 31, 2024, showing a revenue increase of 4% year-over-year to $148 million, driven by growth in Sample Management Solutions and Multiomics services [1][7][33] - The company experienced an operating loss of $11 million, with a diluted EPS from continuing operations of ($0.21), compared to ($0.13) in the same quarter last year [7][24] - Management expressed confidence in the company's market positioning and ongoing transformation initiatives, highlighting strong free cash flow and positive demand trends [3][14] Financial Performance - Revenue from continuing operations was $148 million, up 4% year-over-year, with organic growth also at 4% [7][33] - Sample Management Solutions revenue was $81 million, a 3% increase year-over-year, while Multiomics revenue reached $66 million, up 6% year-over-year [7][33] - Adjusted EBITDA for continuing operations was $13 million, with an adjusted EBITDA margin of 9.0%, reflecting a 400 basis point improvement year-over-year [14][7] Earnings Summary - Total diluted EPS was ($0.29), slightly down from ($0.28) a year ago, with a non-GAAP diluted EPS of $0.08, unchanged from the previous year [7][14][24] - Operating expenses increased by 3% year-over-year to $80 million, primarily due to higher selling, general, and administrative expenses [7][14] - The company ended the quarter with cash, cash equivalents, and marketable securities totaling $530 million, including $27 million from discontinued operations [14][19] Guidance and Outlook - Azenta reiterated its revenue guidance for fiscal year 2025, expecting total organic revenue growth in the range of 3% to 5% relative to fiscal 2024 [14][19] - The company anticipates an adjusted EBITDA margin expansion of approximately 300 basis points compared to fiscal 2024 [14][19]

Core Insights - Azenta, Inc. has elected Dipal Doshi, CEO of Entrada Therapeutics, to its Board of Directors during the Annual Meeting of Stockholders [1] - Mr. Doshi is recognized for his significant experience in the biotechnology and pharmaceutical industries, making him a valuable addition to the Board [2] - Mr. Doshi expressed enthusiasm about joining Azenta, highlighting the company's strong market leadership and commitment to growth and innovation [3] Company Overview - Azenta, Inc. is a leading provider of life sciences solutions, facilitating faster market access for breakthroughs and therapies [5] - The company offers a comprehensive suite of cold-chain sample management solutions and multiomics services, catering to drug development, clinical research, and advanced cell therapies [5] - Azenta operates globally with a presence in North America, Europe, and Asia, and is headquartered in Burlington, MA [6] Leadership Background - Dipal Doshi has extensive experience in the biotechnology and pharmaceutical sectors, having held critical roles in business development, corporate strategy, and finance [3] - Prior to his role at Entrada Therapeutics, Mr. Doshi served as Chief Business Officer at Amicus Therapeutics and has experience in investment banking with Merrill Lynch [4] - He holds an MBA from The Wharton School and a BA from Rutgers University, and is involved with other organizations in the life sciences sector [4]

Company Overview - Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions globally, facilitating faster market access for impactful breakthroughs and therapies [3] - The company offers a comprehensive range of reliable cold-chain sample management solutions and multiomics services, focusing on drug development, clinical research, and advanced cell therapies [3] - Azenta operates under several industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey [3] Financial Announcement - Azenta will announce its fiscal first quarter 2025 earnings on February 5, 2025, before the market opens, covering the period that ended on December 31, 2024 [1] - A conference call and live webcast to discuss the financial results will take place on the same day at 8:30 a.m. Eastern Time, accessible via the Azenta website [2] - A replay of the conference call will be available starting at 8:30 a.m. ET on February 6, 2025 [2] Operational Footprint - Azenta is headquartered in Burlington, MA, with operational presence in North America, Europe, and Asia [4]

Core Insights - Azenta, Inc. has been selected as the technology provider by UK Biocentre to expand large-scale sample storage for significant international sample collections [1] - The new BioArc Ultra system will enhance UK Biocentre's capacity to store biological samples, increasing from over 35 million to an additional 16 million samples [2] - The BioArc Ultra features a high-density, fully automated -80°C storage system with a picking capability of up to 9 million picks per year [2] Company Overview - Azenta, Inc. is a leading provider of life sciences solutions, offering cold-chain sample management and multiomics services to pharmaceutical, biotech, academic, and healthcare institutions globally [6] - The company operates under various brands, including GENEWIZ, FluidX, and others, and is headquartered in Burlington, MA, with operations in North America, Europe, and Asia [7] Industry Context - UK Biocentre specializes in managing and processing biological samples, supporting large-scale biomedical research and clinical studies [8] - The BioArc Ultra system aligns with UK Biocentre's mission to reduce environmental impact while enhancing sample storage innovation [5] - The system contributes to sustainability goals through an eco-friendly refrigeration system with zero Ozone Depletion Potential and zero Global Warming Potential [3]

Company Overview - Azenta (AZTA) shares increased by 7.2% to $49.65 in the last trading session, with a notable trading volume, contributing to a total gain of 13.2% over the past four weeks [1][2] - The company will join the S&P SmallCap 600, replacing Envestnet Inc. effective November 25, which has driven investor optimism [2] Financial Performance - Azenta reported a significant earnings surprise of 63.64% for the fourth quarter of fiscal 2024 [2] - The upcoming quarterly earnings are expected to be $0.05 per share, reflecting a year-over-year increase of 150%, while revenues are projected at $146.24 million, a decrease of 5.2% from the previous year [3] Market Sentiment - The consensus EPS estimate for Azenta has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - Azenta currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook in the market [4] Industry Comparison - Azenta is part of the Zacks Medical Info Systems industry, where another company, Inspire Medical Systems (INSP), has a Zacks Rank of 1 (Strong Buy) and reported a 2% decrease in its last trading session [4][5] - Inspire's consensus EPS estimate has increased by 0.5% over the past month, indicating a year-over-year change of 46.9% [5]

Financial Performance - Total revenue for the year ended September 30, 2024, was $656.3 million, a decrease of 1.1% from $665.1 million in 2023[317]. - Product revenue decreased to $243.4 million in 2024 from $277.2 million in 2023, representing a decline of 12.2%[317]. - Service revenue increased to $412.9 million in 2024, up 6.4% from $387.9 million in 2023[317]. - Gross profit for 2024 was $263.4 million, slightly up from $263.1 million in 2023[317]. - Operating loss for the year was $200.7 million, compared to a loss of $73.1 million in 2023[317]. - Net loss for the year was $164.2 million, compared to a loss of $14.3 million in 2023[317]. - Total current assets decreased to $832.8 million in 2024 from $1.4 billion in 2023, a decline of 41.2%[316]. - Total assets decreased to $2.1 billion in 2024 from $2.9 billion in 2023, a decline of 27.2%[316]. - Total liabilities decreased to $331.1 million in 2024 from $351.2 million in 2023, a decrease of 5.7%[316]. - Total stockholders' equity decreased to $1.8 billion in 2024 from $2.5 billion in 2023, a decline of 30.2%[316]. - Net loss for the year 2024 was $(164,170) million, compared to a net loss of $(14,257) million for the same period in 2023[321]. Cash Flow and Investments - Cash provided by operating activities increased to $50,289 million from $7,158 million year-over-year[321]. - Total cash, cash equivalents, and restricted cash at the end of the period was $320,990 million, down from $684,045 million at the end of the previous year[321]. - The company had no outstanding debt on its balance sheet as of September 30, 2024[286]. - The company sold its semiconductor automation business for $2.9 billion in cash on February 1, 2022, which is reflected as discontinued operations in the financial statements[194]. - The company recorded a net increase to goodwill of $9.2 million due to various adjustments during the twelve months ended September 30, 2023[424]. - The company had sales and maturities of marketable securities of $0.7 billion and $1.1 billion for fiscal years 2024 and 2023, respectively[433]. - As of September 30, 2024, the fair value of marketable securities was $200.62 million, with gross unrealized losses of $387,000[434]. Foreign Currency and Risk Management - Sales in currencies other than the U.S. dollar accounted for 26% of total sales in fiscal year 2024, up from 24% in 2023[287]. - The company incurred foreign currency losses of $3.2 million in fiscal year 2024, compared to $4.2 million in 2023[288]. - The company plans to continue utilizing forward contracts to mitigate currency exposure risks[288]. - The Company reported net foreign currency transaction and remeasurement losses of $3.2 million, $4.2 million, and $1.7 million for the fiscal years ended September 30, 2024, 2023, and 2022, respectively[342]. Goodwill and Intangible Assets - The company's consolidated goodwill balance was $691.4 million as of September 30, 2024, with a significant impairment identified in the B Medical Systems reporting unit[303]. - A non-cash impairment charge of $111.3 million was recorded for goodwill within the B Medical Systems reporting unit for fiscal year 2024[428]. - The Company performs goodwill impairment tests annually or more frequently if impairment indicators are present, with significant judgment required[376]. - The total purchase price for B Medical was allocated at $432.16 million, with goodwill accounting for $228.24 million[424]. - Amortization expense for intangible assets was $51.3 million for the fiscal year ended September 30, 2024, up from $48.4 million in 2023[460]. Shareholder Equity and Stock Transactions - The company repurchased and retired a total of 30.0 million shares of common stock for $1.5 billion under the 2022 Repurchase Authorization as of September 30, 2024[474]. - The number of common stock shares outstanding decreased from 88,482,125 as of September 30, 2022, to 71,294,247 as of September 30, 2023[325]. - The company accrued $6.5 million for excise tax related to share repurchases settled in fiscal year 2024, impacting stockholders' equity[476]. Research and Development - Research and development costs consist primarily of personnel expenses related to the development of new products and enhancements to existing products[397]. Restructuring and Operational Efficiency - The company launched a restructuring plan in the second quarter of fiscal year 2024, with a focus on improving profitability and efficiency, expecting completion by the end of fiscal year 2026[463]. - Total restructuring expenses for the fiscal year ended September 30, 2024, included $5.3 million related to the B Medical Systems segment and $3.2 million for the Sample Management Solutions segment[464]. - Total restructuring charges for fiscal year 2024 amounted to $11,808,000, a significant increase from $4,577,000 in 2023[466]. Accounting and Compliance - The Company does not expect the adoption of recent accounting standards to have a material impact on its consolidated financial statements[406][409]. - The Company evaluates uncertain tax positions quarterly, which may result in adjustments to tax benefits or expenses[404].

Core Insights - Azenta, Inc. will participate in the Stephens Annual Investment Conference on November 20, 2024, with a presentation scheduled for 1:00 pm CT [1] - The company is a leading provider of life sciences solutions, focusing on accelerating breakthroughs and therapies to market [1] - Azenta offers a comprehensive range of cold-chain sample management solutions and multiomics services for drug development, clinical research, and advanced cell therapies [1] Company Overview - Azenta, Inc. is headquartered in Burlington, Massachusetts, and operates in North America, Europe, and Asia [2] - The company serves top pharmaceutical, biotech, academic, and healthcare institutions globally [1] - Azenta's product and service offerings are delivered through industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, Barkey, and B Medical Systems [1]