IDEXX(IDXX) - 2024 Q4 - Annual Results

Financial Performance - Fourth quarter revenue reached $954 million, a 6% increase year-over-year on both reported and organic bases, driven by 6% growth in the Companion Animal Group (CAG) Diagnostics recurring revenue[3]. - The company achieved fourth quarter EPS of$ 2.62, reflecting a 13% increase as reported and a 10% increase on a comparable basis, supported by strong operating results[4]. - Full year revenue totaled $3,898 million, marking a 6% increase as reported and organically, with CAG Diagnostics recurring revenue growing by 7%[6]. - Revenue for Q4 2024 reached$ 954.3 million, a 5.8% increase from $901.6 million in Q4 2023[41]. - Total net revenue for IDEXX Laboratories in 2024 was$ 3,574,044, representing a 6.6% increase from $3,352,356 in 2023[47]. - CAG Diagnostics recurring revenue reached$ 3,129,492 in 2024, up 6.6% from $2,935,425 in 2023[49]. - International revenue grew by 8.9% to$ 1,164,892, while U.S. revenue increased by 5.5% to $2,409,152[47]. - Net income attributable to stockholders for the full year 2024 was$ 887.9 million, compared to $845.0 million in 2023, reflecting a 5.1% increase[41]. Earnings Guidance - The initial outlook for 2025 revenue is projected between$ 4,055 million and $4,170 million, indicating a growth of 4% to 7% reported and 6% to 9% organic[4]. - 2025 EPS guidance is set at$ 11.74 to $12.24, representing a growth of 10% to 15% as reported and 8% to 12% on a comparable basis[4]. - CAG Diagnostics recurring revenue growth for 2025 is expected to be 3% to 6% reported and 5% to 8% organic, supported by execution drivers and net price improvement[8]. Profitability Metrics - Operating margin for the fourth quarter was 27.4%, a 20 basis point increase year-over-year on a reported basis[15]. - Fourth quarter 2024 gross profit reported at$ 570,660,000, an 8% increase from $526,167,000 in Q4 2023[29]. - Full year 2024 gross profit reached$ 2,378,927,000, a 9% increase from $2,189,970,000 in 2023[29]. - Gross profit margin improved to 59.8% in Q4 2024, up from 58.4% in Q4 2023[42]. - Operating income for the full year 2024 was$ 1,128.3 million, a slight increase from $1,097.1 million in 2023[43]. - The gross profit for the CAG segment was$ 519.4 million in Q4 2024, with a gross margin of 59.7%[43]. Operating Expenses - Operating expenses for Q4 2024 were $308,974,000, a 10% increase from$ 280,865,000 in Q4 2023[29]. - The company’s total operating expenses for the full year 2024 were $1,250.6 million, compared to$ 1,092.8 million in 2023[41]. - Research and development expenses increased to $57.7 million in Q4 2024, up from$ 51.8 million in Q4 2023[41]. Shareholder Returns - The company plans to repurchase approximately $1.5 billion of shares in 2025, which is about 4% of the current equity market capitalization[4]. - The company repurchased a total of 1,760 shares in the twelve months ended December 31, 2024, at a total cost of$ 859,432 thousand[56]. - The average cost per share for open market repurchases was $487.66 in the twelve months ended December 31, 2024[56]. - The cost of shares repurchased in the open market for the three months ended December 31, 2024, was$ 248,685 thousand[56]. - The average cost per share for total repurchases in the twelve months ended December 31, 2024, was $488.40[56]. Cash Flow and Capital Structure - Projected 2025 free cash flow estimated after deducting capital expenditures of approximately$ 160,000,000[36]. - Free cash flow for the year was $808,079, an increase from$ 772,879 in 2023[54]. - Cash and cash equivalents decreased to $288,266 at the end of 2024 from$ 453,932 at the end of 2023[53]. - Total assets increased slightly to $3,293,443 in 2024 from$ 3,259,925 in 2023[50]. - The company’s total stockholders' equity rose to $1,595,313 in 2024, up from$ 1,484,530 in 2023[50]. - The company had a long-term debt net of current portion of $449,786 thousand as of December 31, 2024, down from$ 622,883 thousand as of December 31, 2023[55]. Operational Efficiency - Days sales outstanding improved to 47.1 days in Q4 2024 from 46.1 days in Q4 2023[51]. - Inventory turns remained stable at 1.3 for both Q4 2024 and Q4 2023[52]. - For the year ended December 31, 2024, IDEXX reported an after-tax return on invested capital (ROIC) of 45.8%[55]. - Total invested capital, excluding cash and investments, increased to $2,060,302 thousand as of December 31, 2024, compared to$ 1,878,349 thousand as of December 31, 2023[55]. Currency Impact - Estimated currency changes negatively impacted Q4 2024 EPS growth by 1.2% and full year 2024 EPS growth by 0.6%[25]. - Organic revenue growth is reported as a non-GAAP measure, facilitating easier comparisons with prior periods[26].