Revvity (NYSE:RVTY) FY Conference Transcript

Revvity (NYSE:RVTY) FY Conference Summary Company Overview - Revvity is a $2.8 billion company, with revenue split roughly equally between life sciences and diagnostics segments [4] - The company has undergone a portfolio transformation, moving from a legacy industrial company to a focus on high-growth life sciences and diagnostics [2][3] Key Financial Metrics - Approximately 85% of revenue is recurring, derived from consumables, assets, services, and software [4] - Life sciences solutions have a five-year average organic growth rate of high single digits and operating margins above 30% [5] - Diagnostics revenue is about $1.4 billion, with a similar growth rate and operating margins around 25% [6] Strategic Initiatives - Revvity aims to be a key player in the drug development lifecycle, providing comprehensive solutions from early discovery to commercialization [9] - The company has launched AI initiatives, including Transcribe AI, which improves workflow speed by 40% for clinical lab customers [10][11] - A partnership with Eli Lilly aims to accelerate AI-enabled drug discovery through the Signals Synthetica platform [11][12] Market Dynamics - The life sciences segment is primarily focused on pharma and biotech, with 75% of customers in these sectors [5] - The diagnostics segment focuses on immunodiagnostics (60% of revenue) and reproductive health (40%) [6] - The company has seen a significant increase in immunodiagnostics revenue from the Americas, which has doubled from 10% to 20% [14] Growth Outlook - For 2026, Revvity expects 2%-3% organic growth, with high single-digit adjusted EPS growth [19][20] - The company anticipates double-digit growth in immunodiagnostics and Signals Software, with mid-single-digit growth in life sciences solutions and reproductive health [20] - The operational excellence initiatives aim for a 28% adjusted operating margin by 2026, with a focus on cost reductions and efficiency improvements [19] Partnerships and Collaborations - Revvity has formed strategic partnerships with Genomics England and Sanofi, focusing on large-scale genomic screening and pediatric disease screening [15][16][46] - The company is exploring opportunities for partnerships in AI and genomics, although specific details are not yet public [54] Challenges and Risks - The company faces headwinds in the Chinese market, particularly in immunodiagnostics, but expects growth to return in the second half of 2026 [50] - The overall market conditions and funding trends in biotech are seen as positive indicators for Revvity's growth [33][58] Conclusion - Revvity is positioned as an innovative life sciences and diagnostics company with a transformed portfolio and a focus on operational excellence, aiming for significant growth and margin expansion in the coming years [21][22]