IDEXX(US:IDXX)2025-05-01 10:30Revenue and Growth - IDEXX reported first quarter revenue of $998 million, reflecting a 4% increase as reported and 5% organic growth, driven by Companion Animal Group (CAG) growth of 3% as reported and 4% organic [5]. - IDEXX updated its 2025 revenue guidance to a range of $4,095 million to $4,210 million, indicating a reported growth of 5% to 8% [14]. - The company anticipates CAG Diagnostics recurring revenue growth of 4% to 7% for 2025, with organic growth projected at 5% to 8% [14]. - IDEXX's veterinary software, services, and diagnostic imaging systems revenues grew by 9% as reported and 7% organic, driven by cloud-based software placements [9]. - The company experienced a 5% increase in Water revenues as reported and 7% organic for the quarter, indicating solid growth across regions [10]. - IDEXX's Companion Animal Group Diagnostics recurring revenue growth was supported by 5% reported and 8.5% organic gains in international regions [7]. - Revenue for the first quarter of 2025 was $998,427 thousand, representing a 3.6% increase from $964,095 thousand in the first quarter of 2024 [44]. - CAG revenue for Q1 2025 was $919,836 thousand, showing a 3.4% increase from $889,285 thousand in Q1 2024 [46]. - The company’s international revenue grew by 3.1% year-over-year, with a notable 6.7% organic growth in international markets [47]. Earnings and Profitability - The company achieved earnings per diluted share (EPS) of $2.96, marking a 5% increase as reported and 7% on a comparable basis, excluding a $0.08 per share benefit from a litigation expense accrual adjustment [6]. - The updated EPS outlook for 2025 is projected to be between $11.93 and $12.43, reflecting a 12% to 17% growth as reported [16]. - Comparable EPS growth for Q1 2025 was 7%, with comparable EPS at $2.91 compared to $2.71 in Q1 2024 [35]. - Net income attributable to stockholders for Q1 2025 was $242,677 thousand, compared to $235,579 thousand in Q1 2024, reflecting a growth of 3.0% [44]. - The company reported a basic earnings per share of $2.98 for Q1 2025, an increase from $2.84 in Q1 2024 [44]. Margins and Expenses - Gross margin for the first quarter was 62.4%, an increase of 90 basis points as reported, supported by strong growth in IDEXX VetLab consumables revenue [12]. - Operating margin was reported at 31.7%, reflecting a 70 basis point increase year-over-year, despite a 4% growth in operating expenses [13]. - Operating expenses for Q1 2025 were reported at $306,845,000, a 4% increase from $294,112,000 in Q1 2024 [30]. - The operating margin for Q1 2025 was 31.7%, up from 31.0% in Q1 2024, reflecting a 70 basis points improvement [30]. - Comparable operating profit growth for Q1 2025 was 4%, with comparable operating profit at $312,022,000 compared to $298,958,000 in Q1 2024 [30]. Cash Flow and Financial Position - Free cash flow for the first quarter of 2025 is projected to be approximately $708 million after deducting capital expenditures of $160 million [40]. - Free cash flow for the first quarter of 2025 was $207,936,000, compared to $168,312,000 in the first quarter of 2024, reflecting a 23.6% increase [54]. - The company reported a net cash provided by operating activities of $237,962,000 for Q1 2025, compared to $198,585,000 in Q1 2024 [53]. - Total current assets decreased to $1,317,613,000 as of March 31, 2025, down from $1,399,897,000 at the end of 2024 [50]. - Total stockholders' equity decreased to $1,448,013,000 as of March 31, 2025, compared to $1,595,313,000 at the end of 2024 [50]. - Cash and cash equivalents decreased to $163,970,000 at the end of Q1 2025, down from $288,266,000 at the end of 2024 [53]. Research and Development - Research and development expenses increased to $59,061 thousand, representing 5.9% of total revenue, compared to 5.5% in the previous year [44]. Shareholder Activities - The company repurchased a total of 945 shares in the first quarter of 2025, at a total cost of $415,339,000 [55]. Other Financial Metrics - Days sales outstanding improved to 45.7 days in Q1 2025 from 47.1 days in Q4 2024, indicating better collection efficiency [51]. - Inventory turns remained stable at 1.3 for Q1 2025, consistent with previous quarters [51]. - Adjusted EBITDA for the twelve months ended March 31, 2025, was calculated based on net cash provided from operating activities of approximately $968 million [41]. - The impact of foreign currency exchange rates decreased gross profit growth by 1.2% and decreased EPS growth by 1.4% in Q1 2025 [26]. - The company reduced its litigation expense accrual from $89 million to $80 million during the first quarter of 2025 [42].