Revvity (NYSE:RVTY) 2025 Conference Transcript

Revvity (NYSE:RVTY) 2025 Conference Summary Industry Overview - The conference focused on the Life Sciences and Diagnostics sectors, specifically discussing Revvity's performance and outlook in these areas. Key Points and Arguments Financial Performance - Third Quarter Results: Revvity reported a 1% organic growth for Q3, with Life Sciences remaining flat and Diagnostics growing in the low single digits, driven by strength in newborn screening [4][32]. - Reagents Business: The reagents segment generated approximately $750 million in revenue, with two-thirds from pharma biotech and one-third from academic and government sectors. Year-to-date growth was low single digits overall, with pharma performing slightly better than academic and government [7][11]. - GMP Capabilities: The company expects GMP capabilities to become a significant revenue contributor over the next three years, although it is not currently material [8][9]. Market Dynamics - Academic and Government Sector: The academic and government market has faced challenges, including potential budget cuts and a government shutdown, leading to low single-digit declines in revenue [11][12]. - Pharma Activity: There has been an uptick in customer activity, particularly from large pharma, with expectations for instrumentation to return to growth in Q4 [13][14]. - Biotech Funding: Investment in biotech is seen as a positive sign, with less than 5% of total revenue coming from pre-revenue biotech [15][17]. Geographic Insights - China Market: Revvity has experienced growth in its China Life Sciences business over the past two years, attributed to a focus on innovative science and preclinical R&D [19][20]. - US Market Penetration: The US market for immunodiagnostics has seen increased penetration, growing from 5% to nearly 20% of total revenue, with expectations for continued growth [42][43]. Product and Innovation - Instrumentation: The high content screening segment, which constitutes 25% of the instrumentation portfolio, has seen increased demand, with average selling prices ranging from $500,000 to $1,500,000 [21][22]. - Software Growth: The software business has grown by 25% year-to-date, driven by a strong product cycle and expansion into material sciences [26][27]. - Newborn Screening: The newborn screening business has consistently grown mid to high single digits, driven by geographic expansion, adoption of new assays, and menu expansion [32][33]. Strategic Partnerships - Genomics England: The partnership has been beneficial, with successful outcomes in rare disease detection and ongoing discussions for expansion into other countries [35][36][38]. Future Outlook - 2025 Expectations: The company anticipates continued challenges in the academic and government sectors but expects to see growth in instrumentation and software, with a focus on new product launches and market expansion [11][14][27]. - Margin Expansion: Operating margins are expected to improve from 27.2% to 28% in the next year, driven by actions to address China volume declines and operational efficiencies [50][51]. Additional Important Insights - AI Applications: Revvity has launched three AI applications for its instrumentation, indicating a focus on integrating advanced technology into its offerings [25]. - Regulatory Stability: The company emphasizes the need for regulatory stability in China to return to growth in the immunodiagnostics business [48][49]. This summary encapsulates the key discussions and insights from the Revvity conference, highlighting the company's performance, market dynamics, and strategic initiatives moving forward.