Core Insights - Avantor, Inc. is participating in the RBC Capital Markets Global Healthcare Conference on May 20, 2025, with Brent Jones, Executive Vice President and CFO, as a speaker [1] - The session will be available for live audio webcast, and presentation slides will be accessible on Avantor's investor relations website [2] Company Overview - Avantor is a leading provider of mission-critical products and services in the life sciences and advanced technology sectors, supporting customers in their scientific endeavors [3] - The company's portfolio is utilized in critical research, development, and production activities across over 300,000 customer locations in 180 countries [3]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $40.8 million, a decrease of 10% year-over-year, attributed to a challenging market environment and elevated backlog from the previous year [9][29] - Non-GAAP gross margins were 53.2%, down from 56.2% in Q1 2024, impacted by lower volume and price realization [32] - The net loss for the quarter was $26 million, an improvement from a net loss of $32.2 million in Q1 2024, representing a 19% improvement [34] - Adjusted EBITDA loss improved to $16.9 million from $23.7 million year-over-year, a 29% improvement [34] Business Line Data and Key Metrics Changes - Consumables revenue was $14.5 million, down 16% year-over-year, primarily due to lower volumes in the Americas Academia segment [29][30] - Instruments revenue increased by 24% year-over-year to $7.8 million, driven by strong demand for spatial proteomics products [30][32] - Services revenue, including lab and field services, was $17.6 million, down 16% year-over-year, with lab services declining by 19% due to backlog gaps [31][32] Market Data and Key Metrics Changes - The Americas market is experiencing a mid-teens percentage decline in academic revenue, with a high single-digit million dollar impact expected [10][36] - International markets and biopharma engagement remain resilient, with continued traction noted in these segments [10][11] Company Strategy and Development Direction - The company is focused on high precision proteomics and expanding its distributed offerings through partnerships, particularly with Illumina [25][66] - A disciplined M&A strategy is in place, with a focus on consolidating the market and leveraging operational synergies [26][48] - The company aims to reach adjusted EBITDA positive by 2026 while maintaining a healthy cash position of $261 million with no material debt [13][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic operating environment but emphasizes a strong internal position with a diversified portfolio and disciplined operating model [8][14] - The company expects the second half of 2025 to be back-weighted in terms of revenue, driven by larger projects in the sales funnel [42][36] - Management remains cautious about the impact of tariffs and macroeconomic conditions but believes they can manage these challenges effectively [11][36] Other Important Information - The company has operationalized $90 million in annualized cost reductions since the merger with SomaLogic, which is crucial for navigating current uncertainties [33] - New product launches at the AACR conference included three new offerings aimed at enhancing the company's market position in proteomics [19][20] Q&A Session Summary Question: Guidance on revenue weighting for 2025 - Management indicated that the revenue is expected to be back half weighted, driven by larger projects in the sales funnel [42] Question: Instrument demand and sales funnel outlook - Management expressed encouragement regarding growth in the sales funnel, particularly for the Hyperion XTI, but refrained from declaring victory due to market uncertainties [43][44] Question: Update on U.S. Academic and government demand - Management confirmed a mid-teens decline in U.S. Academic revenue, with some delays in consumables orders due to funding uncertainties [51][54] Question: Feedback on new product launches - Management noted that the new single soma reagents are now fully available, with expectations for significant long-term opportunities despite initial cautious sales expectations [60][62] Question: Illumina partnership revenue expectations - Management is optimistic about the long-term potential of the Illumina partnership but cautioned that significant revenue growth is not expected in 2025 [65][68] Question: Biopharmaceutical market conditions - Management reported good traction in the biopharma sector, with healthy growth in the sales funnel beyond large customers [69] Question: Impact of cost reduction actions on EBITDA outlook - Management indicated that the recent cost reduction actions would contribute to an improved outlook for adjusted EBITDA losses [70]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $40.8 million, a decrease of 10% year-over-year, attributed to a challenging market environment and elevated backlog from the previous year [10][29] - Non-GAAP gross margins were 53.2%, down from 56.2% in Q1 2024, impacted by lower volume and price realization [33] - The net loss for the quarter was $26 million, an improvement from a net loss of $32.2 million in Q1 2024, representing a 19% improvement [35] - Adjusted EBITDA loss improved to $16.9 million from $23.7 million year-over-year, a 29% improvement [35] Business Line Data and Key Metrics Changes - Consumables revenue was $14.5 million, down 16% year-over-year, primarily due to lower volumes in the Americas Academia segment [29] - Instruments revenue increased by 24% year-over-year to $7.8 million, driven by strong sales in spatial proteomics, particularly the Hyperion XTI [30] - Services revenue, including lab and field services, was $17.6 million, down 16% year-over-year, with lab services declining by 19% due to backlog gaps [31] Market Data and Key Metrics Changes - The Americas market is expected to see a mid-teens percentage decline in academic revenue, reflecting ongoing funding uncertainties [11][37] - International markets and biopharma engagement remain resilient, with continued traction noted in these segments [11] Company Strategy and Development Direction - The company is focused on high precision proteomics and expanding its distributed offerings through partnerships, particularly with Illumina, to enhance market leadership [25][66] - A disciplined M&A strategy is in place, with a focus on consolidating technologies and optimizing operations to drive growth [26][49] - The company aims to reach adjusted EBITDA positive by 2026 while maintaining a healthy cash position of $261 million with no material debt [14][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a dynamic operating environment but emphasizes a strong internal position with a diversified portfolio and disciplined operating model [8][12] - The company remains committed to long-term profitable revenue growth and increasing shareholder value despite macroeconomic challenges [38] Other Important Information - The company has operationalized $90 million in annualized cost reductions since the merger with SomaLogic, which is crucial for navigating current uncertainties [34] - New product launches at the AACR conference included three new offerings aimed at enhancing the company's service portfolio [20] Q&A Session Summary Question: Guidance on revenue weighting for the year - Management indicated that the revenue is expected to be back half weighted, driven by larger projects in the internal funnel [42][44] Question: Instrument demand and sales funnel outlook - The company is encouraged by growth in the sales funnel, particularly for the Hyperion XTI, but remains cautious about declaring victory [45][46] Question: Update on M&A pipeline and timing - The company remains committed to a disciplined M&A strategy, with a healthy cash position allowing for strategic acquisitions [49] Question: Trends in U.S. Academic and government demand - Management confirmed ongoing challenges in U.S. Academia, maintaining guidance for a mid-teens decline in revenue [52][56] Question: Feedback on new product launches - Initial feedback on new single soma reagents is positive, with expectations for long-term growth potential in this area [58][62] Question: Revenue expectations from the Illumina partnership - While cautious for 2025, management sees long-term potential for significant revenue growth from the Illumina partnership [65][67]

Financial Performance & Outlook - Revenue for Q1 2025 was $40.8 million[10] - The company is targeting revenue in the range of $165 million to $175 million for 2025[10] - Non-GAAP operating expenses decreased by 22% year-over-year in Q1 2025[10, 17, 53] - Adjusted EBITDA improved by 29% year-over-year in Q1 2025[10, 17, 58] - Non-GAAP Gross Margin was 53% in Q1 2025[49] Cash Position & Cost Reduction - The company had $261 million in cash, cash equivalents, restricted cash, and short-term investments as of March 31, 2025[10, 22, 62] - The company operationalized approximately $10 million in cost reductions in Q1 2025, totaling $90 million since the merger[10] Strategic Initiatives - The company is rolling out new proteomics solutions and Illumina NGS[10] - The company is targeting adjusted EBITDA positive in 2026[10, 19, 64] SomaLogic Merger - The company is targeting $80 million in synergies from the SomaLogic merger[19, 22]

Core Insights - Avantor, Inc. is a leading global provider of mission-critical products and services in the life sciences and advanced technology sectors [3] - The company will have its President and CEO, Michael Stubblefield, participate in a fireside chat at the Bank of America Securities 2025 Health Care Conference on May 13, 2025 [1] Company Overview - Avantor operates in over 300,000 customer locations across 180 countries, supporting critical research, development, and production activities [3] - The company focuses on enabling breakthroughs in medicine, healthcare, and technology through its comprehensive portfolio of life science tools [3] Event Details - The fireside chat will take place at approximately 10:00 a.m. Pacific Time [1] - A live audio webcast of the session will be available on Avantor's investor relations website, with a replay accessible for 30 days [2]

Financial Performance - Revvity Inc. reported first-quarter sales of $664.76 million, a decrease from $709.07 million, but exceeding the consensus estimate of $661.18 million [1] - The company achieved an adjusted EPS of $1.01, surpassing the consensus of 95 cents [4] - Adjusted operating income was $170 million, compared to $166 million for the same period last year [4] - The adjusted operating profit margin was 25.6%, slightly up from 25.5% year-over-year [4] Guidance and Forecast - Revvity affirmed its fiscal year 2025 adjusted EPS guidance of $4.90-$5.00, compared to the consensus of $4.94 [2] - The company raised its 2025 sales guidance from $2.8 billion to $2.85 billion, exceeding the consensus of $2.83 billion [2] - The guidance reflects a -0.5% impact from foreign currency exchange and assumes 3%-5% organic revenue growth [2] - The company forecasts a 2025 adjusted operating margin of 27.9%-28.1% [3] Segment Performance - The life sciences segment revenue increased by 1% to $340 million [4] - Organic revenue grew by 2%, while diagnostics sales rose 3% year-over-year to $324 million [4] - Organic diagnostics revenue increased by 5% [4] Market Reaction - Revvity stock rose 5% to $99 during the premarket session following the earnings report [3]

Leadership Transition - Avantor, Inc. announced that Michael Stubblefield will step down as Director, President, and CEO upon the appointment of a successor [1] - The Board has initiated a search process for the next CEO, led by an executive search firm, and plans to expedite the process [2] - Jonathan Peacock, Chairman of the Board, expressed gratitude for Stubblefield's over a decade of service and emphasized the need for a strong successor with a proven track record [3] Company Performance - Avantor reported its financial results for the first quarter of 2025 and will host a conference call to discuss these results [4] - The company serves over 300,000 customer locations in 180 countries, providing mission-critical products and services for life sciences and advanced technology industries [5]

Core Insights - Avantor, Inc. reported a net sales of $1,581.4 million for the first quarter of 2025, reflecting a 6% decrease compared to the same period in 2024, with an organic decline of 2% after accounting for foreign currency impacts [3][7][28] - The company experienced a net income increase to $64.5 million, up from $60.4 million in the first quarter of 2024, with an adjusted net income of $155.2 million compared to $150.6 million in the prior year [4][20] - Avantor is implementing a comprehensive strategy to enhance its Lab Solutions segment and has increased its cost transformation target to $400 million in gross run-rate savings by the end of 2027 [2][7] Financial Performance - Net sales for the Laboratory Solutions segment were $1,065.0 million, an 8% decrease from $1,157.1 million in the first quarter of 2024, with an organic decline of 3% [8][28] - The Bioscience Production segment reported net sales of $516.4 million, a 1% decrease compared to $522.7 million in the same quarter of 2024, with flat organic sales [8][28] - Adjusted EBITDA for the quarter was $269.5 million, with an adjusted EBITDA margin of 17.0%, compared to $283.0 million and 16.8% in the prior year [4][20] Cash Flow and Leverage - Operating cash flow was reported at $109.3 million, while free cash flow was $82.1 million for the quarter [5][27] - As of March 31, 2025, adjusted net leverage stood at 3.2x [5][27] Strategic Outlook - The company is facing ongoing funding and policy-related headwinds, particularly affecting its Lab Solutions revenue due to reduced demand in the Education and Government sectors [2][7] - Avantor is committed to accelerating growth and improving performance across its business segments, with a focus on cost management and operational efficiency [2][7]