Core Insights - Instinct Science has partnered with Arista Advanced Pet Care to implement its cloud-based practice management platform, Instinct EMR, at Arista's new specialty and emergency hospital in Atlanta, marking a significant milestone for both organizations [1][4]. Company Overview - Instinct Science is a veterinary software company focused on transforming veterinary medicine through advanced practice management software and clinical resources, serving over 360,000 veterinary professionals globally [7]. - Arista Advanced Pet Care is a multispecialty referral and 24/7 emergency veterinary hospital group that aims to revolutionize specialty medicine through a shared ownership model, with plans for national expansion [6]. Product Features - Instinct EMR is designed specifically for the complex workflows of specialty and emergency veterinary hospitals, featuring digital treatment sheets, automated charge capture, administrative tools, and real-time reporting [2]. Partnership Details - The partnership reflects Arista's commitment to building a scalable and efficient foundation for growth while maintaining high standards of patient care and team wellbeing [4]. - Both companies express confidence that the partnership will be mutually beneficial as they expand their operations [5]. Future Plans - Arista's Atlanta facility is the first of many planned hospitals, with expansion into key markets such as Dallas, Texas, anticipated later this year [5].

Core Insights - Vivos Inc. announced that the University of Florida Veterinary Hospital has been certified to offer IsoPet Precision Radionuclide Therapy, a significant advancement in cancer treatment for animals [1][2] - IsoPet therapy is a targeted, minimally invasive treatment that utilizes a proprietary radionuclide injection to address solid tumors in pets, expanding the availability of advanced oncology services [2] Company Strategy - The company aims to expand the network of certified clinics providing IsoPet therapy nationwide, with each certification enhancing access to this effective and less invasive treatment compared to traditional options [3] - Vivos Inc. supports clinics through the licensing process and provides necessary training to ensure safe and effective administration of IsoPet therapy [3] Market Position - The University of Florida Veterinary Hospital is recognized as a leader in advanced veterinary care and research, indicating a strong market position for the newly certified IsoPet therapy [2]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][17] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [15][17] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [14] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [12] Market Data and Key Metrics Changes - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, reflecting a solid growth premium compared to a 2.6% decline in U.S. clinical visits [8][9] - International CAG Diagnostic recurring revenue organic growth was 8.5%, with strong volume gains building on 2024 momentum [8] - IDEXX VetLab consumable revenues increased by 10% organically, supported by a 9% year-over-year growth in the global premium instrument installed base [10] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and the rollout of IDEXX InVue DX, a new cellular analyzer [24][26] - IDEXX aims to maintain solid organic revenue growth and comparable operating margin improvement, with updated guidance reflecting positive changes from foreign exchange [18][19] - The company is well-positioned to navigate the changing tariff landscape, with 65% of consolidated revenues from the U.S. and less than 1% from China [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential, despite macroeconomic pressures affecting clinical visits [6][38] - The estimated pet population remained stable, supporting strong tailwinds for the business and confidence in delivering solid organic revenue growth [39] - Management noted that while clinical visit metrics are under pressure, diagnostic frequency and utilization remain strong drivers for the business [62] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [19] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [17] - Share repurchases during the first quarter totaled $415 million, supporting a 2.4% reduction in diluted shares outstanding [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and the macro environment? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism that clinical visit moderation has stabilized [46][48] Question: What feedback have you received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results [52][56] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans to mitigate tariff impacts [65][68] Question: Can you provide insights on the uptake of CancerDx? - Over a thousand unique practices have ordered the test, indicating strong initial interest and awareness [73][75] Question: What gives you confidence in the guidance for CAG recurring revenue? - Management expects clinical visits to decline similarly to 2024 levels, with ongoing innovations supporting growth [78][80]

Financial Data and Key Metrics Changes - Overall revenues increased by 5% organically, with a 4.5% organic growth in CAG Diagnostic recurring revenues, despite a 1.5% headwind from equivalent days [4][5] - EPS was $2.96 per share, reflecting a 5% growth as reported and 7% growth on a comparable basis [5][18] - Gross profit increased by 5% as reported and 6% on a comparable basis, with gross margins at 62.4%, up 80 basis points on a comparable basis [16][18] Business Line Data and Key Metrics Changes - CAG organic revenue growth was supported by 7% organic gains in veterinary software and diagnostic imaging revenues, while CAG instrument revenues decreased by 5% organically [6][7] - Water revenues increased by 7% organically, driven by double-digit revenue expansion in Europe [15] - Global rapid assay revenues declined by 2% organically, constrained by customers shifting pancreatic lipase testing to the Catalyst instrument platform [13] Market Data and Key Metrics Changes - International CAG Diagnostic recurring revenue organic growth was 8.5%, reflecting strong volume gains and net price realization [9] - U.S. CAG Diagnostic recurring revenue organic growth was 3% in Q1, net of days headwind, compared to a 2.6% decline in U.S. clinical visits [10][9] - The estimated pet population sustained in 2024 at similar levels to the prior year, supporting strong tailwinds for the business [40] Company Strategy and Development Direction - The company is focused on innovation, highlighted by the launch of IDEXX CancerDx for canine lymphoma and IDEXX InVue DX, a new cellular analyzer [26][34] - The strategy includes expanding the oncology menu to address the majority of canine cancer cases within three years [33] - The company aims to maintain a strong commercial model grounded in partnership, flexibility, and execution excellence to drive innovation-led growth [31] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic conditions remain dynamic, but there are strong demand signals and continued willingness by clinics to invest in diagnostics [31][39] - The company is well-positioned to navigate the changing tariff landscape, with 65% of revenues based in the U.S. and minimal exposure to China [38][63] - Management expressed optimism about the stabilization of clinical visit moderation and the potential for growth in diagnostic frequency and utilization [47][61] Other Important Information - The company updated its full-year guidance for reported revenues to $4.095 billion to $4.210 billion, reflecting a $40 million increase related to foreign exchange [21] - The updated full-year EPS outlook is $11.93 to $12.43 per share, driven by foreign exchange and favorable adjustments [23] - Free cash flow was $208 million in Q1, with a trailing twelve-month net income to free cash flow conversion ratio of 95% [18] Q&A Session Summary Question: Can you discuss the trends in clinical visits and macroeconomic conditions? - Management noted a consistent trend in wellness and non-wellness visits, with some optimism about stabilization despite macro headwinds [46][47] Question: What feedback has been received regarding the IDEXX InVue DX? - Initial feedback has been positive, with customers enthusiastic about the ease of use and accuracy of results, leading to a significant ramp-up in placements [50][52] Question: How is the company positioned regarding tariffs and potential impacts? - The company is relatively well-positioned with a majority of revenues from the U.S. and has operational plans in place to mitigate tariff impacts [63][64]

Financial Data and Key Metrics Changes - Revenue increased by 6% organically in Q4 2024, with CAG Diagnostic recurring revenues growing by 7% organically [4][5] - Operating profits rose by 7% as reported and 8% on a comparable basis, with EPS reaching $2.62, up 10% on a comparable basis [5][20] - Full year EPS was $10.67, a 12% increase on a comparable basis, despite a $0.56 per share negative impact from litigation expenses [7][21] Business Line Data and Key Metrics Changes - CAG Diagnostic recurring revenue increased by 7% organically in Q4, with U.S. volume growth normalized for equivalent selling days at approximately 2% [8][10] - Water business saw 11% organic growth for the full year, while global premium instrument installed base grew by 9% [5][6] - IDEXX VetLab consumable revenues increased by 12% organically, supported by a 9% increase in the global premium instrument installed base [13][19] Market Data and Key Metrics Changes - International CAG Diagnostic recurring revenue growth was 12% in Q4, benefiting from net price gains and improved volume growth [12] - U.S. clinical visit levels declined nearly 3% in Q4, reflecting transitional sector impacts post-pandemic [11][12] - The company achieved a solid 800 basis point normalized growth premium compared to U.S. clinical visit growth levels in Q4 [11] Company Strategy and Development Direction - The company is focused on innovation-driven growth, with new product launches such as IDEXX InViewDx and IDEXX CancerDx aimed at enhancing diagnostic capabilities [31][44] - IDEXX plans to continue expanding its international footprint, with double-digit growth in premium installed base outside the U.S. [38][39] - The strategy includes leveraging software solutions to enhance clinic efficiency and deepen customer relationships, as seen with the Velo application [45][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing pressure on U.S. clinical visits but noted strong demand for higher standards of pet care [35][36] - The outlook for 2025 includes projected revenue growth of 4% to 7% on a reported basis, with organic growth expectations of 6% to 9% [23][24] - Management expressed confidence in the company's growth potential, supported by strong execution and innovation [80] Other Important Information - The company plans to allocate $1.5 billion towards share repurchases, reflecting confidence in growth potential [28][80] - Capital spending for 2024 was $121 million, approximately 3% of revenue, with free cash flow at $808 million [22][21] Q&A Session Summary Question: Can you speak to what guidance assumes now in terms of the innovation contribution in 2025? - Management indicated that the guidance includes approximately $50 million and 4,500 placements from the InViewDx platform, with additional benefits expected from other innovations [55][56] Question: What led to the uptick for the premium in Q4? - The increase was attributed to strong consumable growth and progress in instrument placements, reflecting strong execution throughout the year [84][85] Question: Can you elaborate on the vet visit trajectory expected from here? - Management expects a similar decline in clinical visits as seen in 2024, with approximately 2% decline anticipated for 2025 [68] Question: What is the rationale for the increased share buyback? - The rationale is based on high confidence in the company's growth model and strong free cash flow generation, allowing for a higher deployment rate [80] Question: Are you still limiting preorders for InViewDx? - Management confirmed that preorders have been opened in North America, while international preorders remain limited [93] Question: Was there any impact from weather on visit trends for Q4? - Weather impacts were noted, but management feels confident in the guidance provided despite these factors [95]