Revvity (RVTY) FY 2025 Conference September 03, 2025 08:00 AM ET Company ParticipantsBrandon Couillard - Managing DirectorMax Krakowiak - SVP & CFOBrandon CouillardAll right. Good morning. Thanks, everybody, for joining us. Welcome to the Wells Fargo Health Care Conference. I'm Brandon Couillard, covering the life science tools and diagnostics space here at the firm. Thrilled to have Revvity back with us at the opening presentation this year and joining us from the company, CFO Maxwell Krakowiak.Max Krakowi ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenues of $57 million, aligning with expectations, and full year revenues of $259 million, near the midpoint of the previously stated range of $255 million to $265 million [10] - GAAP net loss before non-controlling interests was $46 million for Q4 2024, compared to a loss of $110 million in Q4 2023, while the annual net loss was $260 million, up from $138 million in 2023 [12] - Adjusted EBITDA for Q4 2024 was a negative $1 million, down from $21 million in Q4 2023, with a full year adjusted EBITDA of $36 million, reflecting a margin of 14% [12][13] Business Line Data and Key Metrics Changes - The Biologic Safety Testing segment generated $15 million in Q4 and $63 million for the full year, with an adjusted EBITDA margin of approximately 70% [10][17] - The Nucleic Acid Production segment reported revenues of $42 million in Q4, including $14 million from high volume clean cap sales, and $196 million for the full year, with an adjusted EBITDA margin of 26% [10][17] Market Data and Key Metrics Changes - Revenue breakdown by customer type for 2024 showed 48% from biopharma, 25% from life sciences and diagnostics, 5% from CROs, CMOs, and CDMOs, 4% from academia, and 18% through distributors [11] - The company’s exposure to China was $13.6 million for the full year, with expectations for flat growth in 2025 [69] Company Strategy and Development Direction - The company is focused on returning its base business to growth, anticipating revenues of $185 million to $205 million for 2025, excluding high volume clean cap [19][20] - Strategic investments include expanding commercial footprint, enhancing intellectual property protection, and integrating recent acquisitions to drive growth in the discovery area [30][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in forecasting due to market dynamics but expressed confidence in the company’s capabilities and growth opportunities [19][24] - The company is enhancing visibility into customer clinical programs to better predict sales and manage operations [27][35] Other Important Information - The company ended 2024 with $322 million in cash and $300 million in long-term debt, resulting in a net cash position of $22 million [14] - Capital expenditures for 2024 were $30 million, with expectations for a decline to $15 million to $20 million in 2025 [23][15] Q&A Session Summary Question: Can you provide guidance on gross margins for 2025? - Management indicated that the cost structure for 2025 will remain consistent with 2024, with fixed costs around $200 million and variable costs expected to range between 10% to 12% [46][47] Question: How is the company improving visibility with key customers? - Management noted that new agreements include mandatory disclosure requirements for clinical trial milestones, which should enhance visibility into customer programs [52][53] Question: What are the expectations for segment growth and revenue cadence? - Management expects Q1 2025 revenues to be between $43 million to $45 million, with growth anticipated in the back half of the year driven by acquisitions and new product introductions [56][58] Question: What are the capital allocation priorities for 2025? - The company plans to focus on reducing cash interest expenses and is open to evaluating M&A opportunities that align with their strategic goals [62][63] Question: How much of the revenue forecast is related to COVID vaccine contributions? - Management stated that the forecast excludes any contributions from COVID-related revenues, reflecting a shift in focus to base business growth [80][82] Question: What percentage of revenue did the top 10 customers comprise for 2024? - The top 10 customers accounted for 46% of revenue in 2024, showing a gradual diversification from 48% in 2023 [84]