Growth Strategy and Market Opportunity - IDEXX has a significant global testing opportunity to raise standards of care, estimated at over $45 billion in Total Addressable Market (TAM)[11] - The company aims for long-term durable organic revenue growth potential of 10%+ with high Return on Invested Capital (ROIC)[11] - The worldwide addressable companion animal diagnostics revenue opportunity is estimated at $45B+, with only ~15% currently served[34] Financial Performance and Growth Drivers - IDEXX delivered exceptional long-term financial performance from 2018 to 2023, including +11% revenue CAGR, +170 bps average annual comparable operating margin expansion, and +22% average annual comparable EPS growth[17] - In 2023, IDEXX's ROIC was 48%[18] - The company's consistent strategy supports accelerating revenue growth, with CAG Diagnostics recurring revenue showing a 13% CAGR[21] Innovation and New Products - IDEXX is introducing a new wave of innovation, including the IDEXX inVue Dx Cellular Analyzer, which is shipping in Q4 2024[72] - IDEXX Cancer Dx will launch with canine lymphoma in 2025, with plans to expand the panel to cover >50% of canine cancer cases over ~36 months[70] - The company estimates a ~$2.5B opportunity in oncology diagnostics[61] Commercial Engagement and Customer Focus - IDEXX has doubled its commercial field-based professionals since 2015, reaching approximately 1,200[98] - IDEXX-engaged practices grow faster, with average clinical revenue per practice growing at 10.9% CAGR compared to 3% for unengaged practices from 2018-2023[104] - The company's U S Net Promoter Score (NPS) is high across various product lines, with Reference Lab at 33%, In-house Chemistry at 32%, In-house Hematology at 30%, and Rapid Assay at 29%[112] Sector Trends and Future Growth - The estimated global companion animal Dx sector spend is projected to grow from $5.8B in 2023 to $10B+ in 2048, implying a 7.5-8.5% CAGR[116][125] - IDEXX is positioned to outpace sector growth, with an implied CAGR of 9%+[116] - The company estimates that the percentage of clinical visits with bloodwork will increase from 19% in the U S in 2023 to 34% in 2048[116]

Summary of Zomedica (ZOM) Conference Call - August 07, 2025 Company Overview - **Company**: Zomedica Corporation - **Ticker Symbol**: ZOMDF (OTCQB Venture Market) - **Industry**: Animal Health and Veterinary Services Key Points and Arguments 1. **Market Opportunity**: The total addressable market for Zomedica exceeds $2.7 billion annually, with the veterinary services segment in the U.S. valued at over $62 billion and growing [4][6]. 2. **Revenue Growth**: Zomedica has reported an increase in year-over-year revenues for 18 consecutive quarters, with revenues rising from $1 million in 2020 to $27 million in the last year [27][28]. 3. **Product Portfolio**: The company has developed six proprietary technology platforms aimed at improving veterinary care and practice profitability [4][5]. 4. **Capital and Liquidity**: Zomedica has $59 million in capital to support growth towards profitability [5][28]. 5. **High Margins**: The company maintains gross margins between 67% to 70%, with a focus on manufacturing its products to control costs [28][34]. 6. **Recurring Revenue Model**: A significant portion of revenue comes from consumable products, with nearly 70% of revenue from the PulseVet system derived from reorders of handpieces [13][14]. 7. **Innovative Technologies**: Key products include: - **PulseVet**: A shockwave therapy system generating significant revenue [10][11]. - **Assisi Loop**: A targeted pulse electromagnetic field therapy device, contributing about one-third of revenue from reorders [17][18]. - **Vetagel Hemostatic Gel**: A fast-acting gel for stopping bleeding, licensed for distribution in the U.S. [19][20]. - **TrueView Microscope**: A digital microscopy platform with AI capabilities, enhancing diagnostic capabilities for veterinarians [21][50]. - **TruForm Platform**: A diagnostic device utilizing bulk acoustic wave sensors, showing over 75% growth this year [22][23]. - **VetGuardian**: A pet monitoring device that provides vital signs without attachments, enhancing post-surgery care [24][25]. 8. **International Expansion**: Approximately 20% of revenue comes from international markets, with a 13% growth in international sales last quarter [30]. 9. **Future Growth Strategy**: Focus on leveraging commercial infrastructure, expanding product portfolio, and pursuing M&A opportunities while maintaining high margins [29][33]. 10. **Market Positioning**: The company believes it is undervalued, with a negative enterprise value despite significant revenue growth and potential [46][47]. Additional Important Insights - **COVID-19 Impact**: The pandemic led to an increase of 23 million pets in households, expanding the market for veterinary services [7]. - **Veterinary Challenges**: Veterinarians face staffing shortages and revenue loss to online competitors, which Zomedica aims to address with its products [9]. - **Economic Model**: The economic model for veterinarians using Zomedica's products is favorable, allowing them to achieve profitability quickly [15][16]. - **R&D and M&A Balance**: The company is shifting focus from R&D to scaling commercial adoption while still considering M&A opportunities for growth [39][40]. - **Future Product Launches**: New product launches are expected to enhance revenue and market presence, with AI integration in diagnostic tools [50][51]. This summary encapsulates the key insights from the Zomedica conference call, highlighting the company's market position, growth strategies, and innovative product offerings in the veterinary sector.

Financial Data and Key Metrics Changes - IDEXX reported a revenue increase of 11% as reported and 9% organically, with nearly 7.5% organic growth in Companion Animal Group (CAG) Diagnostic recurring revenues [5][6][8] - Operating profit grew by 14% on a comparable basis, with earnings per share (EPS) of $3.63, reflecting a 17% growth on a comparable basis [7][18] - The company increased its full-year revenue outlook by $90 million, projecting a range of $4.205 billion to $4.280 billion, indicating an overall reported revenue growth of 7.7% to 9.7% [7][20] Business Line Data and Key Metrics Changes - CAG revenue increased by 10%, with CAG Diagnostic recurring revenues growing nearly 7.5% organically, supported by a global average net price improvement of approximately 4% [9][10] - Water business revenues increased by 8% organically, while Livestock, Poultry, and Dairy revenues grew by 3% [16] - Global Reference Lab revenues increased by 5% organically, driven by solid volume growth [14] Market Data and Key Metrics Changes - U.S. clinical visits declined by 2.5% in the quarter, impacting CAG Diagnostic recurring revenue growth [10][12] - International regions saw double-digit growth in CAG Diagnostic recurring revenues, with strong performance attributed to IDEXX's execution and volume gains [9][29] - The company noted that U.S. CAG Diagnostic recurring revenues grew at a premium to U.S. clinical visits by approximately 800 basis points [11] Company Strategy and Development Direction - IDEXX is focused on expanding its commercial capabilities and investing in innovation to support its growing portfolio of diagnostic solutions [21][30] - The company plans to expand its commercial presence in three additional international markets and modestly enhance its U.S. commercial team [29][96] - IDEXX aims to leverage its innovative diagnostic products, such as IDEXX CancerDx and InVueDx, to capture long-term growth opportunities in the veterinary diagnostics market [30][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of the veterinary market and the ongoing demand for diagnostics despite macroeconomic pressures [41][42] - The company remains optimistic about the adoption of new innovations and expects to see continued growth in diagnostics utilization driven by pet owners' desire for high-quality care [26][27] - Management acknowledged the dynamic nature of the operating environment, including inflationary impacts and clinical visit trends, while expressing confidence in IDEXX's long-term growth potential [42][93] Other Important Information - Free cash flow was reported at $152 million for Q2, with a net income to free cash flow conversion rate of 80% [18] - The company repurchased $329 million of its shares during the second quarter, contributing to a 2.7% year-over-year reduction in diluted shares outstanding [19] Q&A Session Summary Question: Can you elaborate on the InVue uptake and the types of practices seeing traction? - Management noted excellent feedback on InVue, highlighting its workflow benefits and consistent, accurate results, with placements occurring in both independent and corporate practices [45][47][50] Question: What is the trend in consumables agreements and utilization? - Management indicated that consumables usage is tracking well, with independent practices moving quickly to adopt new instruments, while corporate practices tend to have longer lead times [53][55] Question: How are clinical visit trends reflected in guidance? - Management updated clinical visit trends to align with recent performance, expecting a continuation of the 2.5% decline observed [58][59] Question: What is the long-term trajectory for InVue? - Management maintained a long-term placement opportunity of approximately 20,000 for InVue, expressing confidence in the current year's placements [64][66] Question: Can you discuss the investments in the sales force? - Management confirmed investments in both U.S. and international markets to increase commercial density and support the growing portfolio of diagnostic solutions [95][96]

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]