Revvity (NYSE:RVTY) 2025 Conference Transcript

Revvity (NYSE:RVTY) 2025 Conference Summary Company Overview - Company: Revvity - Industry: Life Sciences and Diagnostics Key Highlights from Q3 Results - Overall Performance: Solid quarter with organic growth and operating margins in line with expectations [2][3] - Free Cash Flow: Generated approximately 90% conversion from free cash flow [2] - Software Business Growth: Grew by 20% [2] - Newborn Screening Business: High single-digit growth globally [2] - U.S. Immunodiagnostics Franchise: Grew in the mid-teens [2] Growth Drivers and Market Trends - Instrumentation Business: Increased commercial activity noted in September and early October, but cautious about sustainability [3] - Reagents Business: Differentiators include rapid innovation, customer service, and competitive pricing [5][6] - E-commerce Growth: Reagents sold through e-commerce increased from 25%-30% to approximately 45% post-BioLegend acquisition [7][8] - GMP Facility: Completed build-out expected to drive results in 3-5 years, with potential for quicker financial impact [10][11] Instrumentation and Software Developments - In Vivo Platform Refresh: Positive traction noted [15] - AI Integration: Ongoing innovations in AI software for instrumentation and analytical capabilities [15][30] - Signals Business: Anticipated mid-single-digit growth due to product launches and expansion into smaller biotechs and material sciences [18][19] Financial Metrics and Projections - 2026 Framework: Projecting 2%-3% organic growth, with life sciences and diagnostics expected to grow in low to mid-single digits [47][48] - Software Transition: Approximately one-third of the portfolio sold via SaaS, with a target of 65%-70% in the future [22] Acquisitions and Capital Allocation - Recent Acquisition: ACD/Labs for $70 million, expected to be EPS neutral in 2026 and accretive thereafter [26][29] - Share Repurchase Program: Increased from $250 million to approximately $900 million due to favorable market conditions [54] Challenges and Risks - China Market: Anticipated decline in revenue contribution due to policy headwinds, with expectations of low single-digit growth post-adjustment [46] - Immunodiagnostics Growth: Focus on FDA approvals and automation to drive growth in the Americas [38] Conclusion - Long-term Outlook: Revvity remains optimistic about growth drivers in software, reagents, and instrumentation, while navigating challenges in specific markets like China and adapting to evolving industry dynamics [50][56]