Outset Medical, Inc. (NASDAQ:OM) Q4 2024 Earnings Conference Call February 19, 2025 5:00 PM ET Company Participants Jim Mazzola - Head of Investor Relations Leslie Trigg - Chair and CEO Nabeel Ahmed - Chief Financial Officer Conference Call Participants Marie Thibault - BTIG Shagun Singh - RBC Capital Markets Suraj Kalia - Oppenheimer Operator Good day, and thank you for standing by. Welcome to the Outset Medical Fourth Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-on ...

Financial Data and Key Metrics Changes - In Q4 2024, Exact Sciences reported a revenue growth of 10%, or 11% on a core basis, with adjusted EBITDA increasing by 52% to $75 million [10][14] - Full-year core revenue grew 11% to $2.75 billion, with adjusted EBITDA margin expanding nearly 300 basis points [14][15] - The company ended the year with $1.04 billion in cash and securities, more than doubling free cash flow [15] Business Line Data and Key Metrics Changes - Screening revenue increased by 14% to $553 million, driven by the adoption of Cologuard among providers and health systems [10][11] - Precision oncology revenue slightly increased to $161 million, led by international adoption of Oncotype DX [11][12] - Adjusted EBITDA margin expanded nearly 300 basis points due to volume growth and expense controls [12] Market Data and Key Metrics Changes - The number of eligible patients for Cologuard tests is expected to grow by 30% to 2 million in 2025, with rescreening rates at an all-time high [22] - Cologuard Plus is set to launch in Q2 2025, initially available to Medicare fee-for-service patients, representing about 15% of Cologuard volumes [17][91] - The company anticipates steady growth in Precision Oncology, particularly with Oncotype DX, and strong double-digit growth internationally [20] Company Strategy and Development Direction - Exact Sciences aims to enhance its leadership in cancer diagnostics by leveraging its commercial engine and expanding its technology platform, ExactNexus [9][31] - The company plans to launch three new tests in 2025, focusing on colon cancer screening, MRD testing, and multi-cancer screening [38][98] - The strategy includes improving patient education and provider engagement to drive adoption of new tests [21][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in 2025 being a productive year, driven by strong growth in Cologuard and the launch of new tests [49][50] - The company is optimistic about the impact of Cologuard Plus and the expansion of care gap programs on revenue growth [40][41] - Management highlighted the importance of maintaining strong payer relationships and the potential for increased reimbursement rates [92][93] Other Important Information - The company recognized an $830 million non-cash impairment charge related to the Thrive acquisition, reflecting changes in external factors since the acquisition [13] - Exact Sciences has been recognized as a great place to work for six consecutive years, indicating strong employee engagement [7] Q&A Session Summary Question: What growth drivers are expected for Screening guidance? - Management highlighted rescreens, care gap programs, and the launch of Cologuard Plus as key growth drivers for the second half of the year [35][40] Question: Can you elaborate on the productivity and balance of product launches? - Management emphasized the capability of the team to manage multiple product launches while driving revenue growth and margin expansion [47][50] Question: What is the status of Cologuard Plus reimbursement? - Management confirmed Medicare pricing of $592 for Cologuard Plus and ongoing negotiations with commercial payers [91][92] Question: How does the company view the impact of the Braidwood case? - Management does not anticipate a significant impact on business, as payers remain motivated to maintain screening rates [146][147] Question: What is the expected contribution of MRD and Cancerguard to revenue? - Management expects MRD to have a near-term impact, followed by Cancerguard, with Cologuard Plus being the most significant contributor initially [97][98]

McGrath RentCorp (NASDAQ:MGRC) Q4 2024 Earnings Conference Call February 19, 2025 5:00 PM ET Company Participants Joe Hanna - Chief Executive Officer Keith Pratt - Chief Financial Officer Conference Call Participants Scott Schneeberger - Oppenheimer Mark Riddick - Sidoti Daniel Moore - CJS Securities Operator Ladies and gentlemen, thank you for standing by. Welcome to the McGrath RentCorp Fourth Quarter 2024 Earnings Call. At this time, all conference participants are in a listen-only mode. Later, we will c ...

Financial Data and Key Metrics Changes - Revenues for Bausch Health, excluding Bausch + Lomb, increased by 4% on a reported basis and 7% on an organic basis compared to Q4 2023, with full-year revenues increasing by 5% on a reported basis and 6% on an organic basis [9][10] - Adjusted EBITDA for Q4 2024 increased by approximately 7% compared to the prior period, with full-year adjusted EBITDA growing by 8% [10][29] - Adjusted operating cash flow for the full year was approximately $1.3 billion, reflecting an 85% growth year-over-year [30][35] Business Line Data and Key Metrics Changes - Salix revenues in Q4 were $634 million, a 9% growth year-over-year, driven by Xifaxan, which grew by 16% [36] - Solta revenues increased by 34% in Q4, primarily driven by volume growth, particularly in South Korea and China [41][42] - International segment revenues were $279 million, a decrease of 4% on a reported basis but an increase of 1% on an organic basis [38] Market Data and Key Metrics Changes - Canada and EMEA were the strongest contributors to growth, with Canadian revenue growing 9% on a reported basis and 16% on an organic basis [39] - The Latin American market saw a 14% decrease in organic revenue year-over-year, primarily due to the timing of government tenders in Mexico [40] Company Strategy and Development Direction - The company is focused on three fundamental pillars for value creation: enhancing operational assets, unlocking the value of the Bausch + Lomb equity stake, and optimizing capital structure [12][23] - The strategic priorities include people, growth, innovation, efficiency, and unlocking value, with a strong emphasis on operational excellence and innovation [13][16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in carrying momentum into 2025, with expectations for continued revenue and adjusted EBITDA growth [12][27] - The company is actively exploring avenues to unlock the full value of its Bausch + Lomb equity stake, ensuring benefits for shareholders [12][52] Other Important Information - The company reduced its net debt by approximately $520 million in Q4 and nearly $1 billion for the full year [45] - The 2025 financial guidance expects revenues between $4.950 billion and $5.100 billion, with adjusted EBITDA projected between $2.625 billion and $2.725 billion [47][48] Q&A Session Summary Question: Update on the Norwich situation and FDA lawsuit - Management stated that Norwich gained tentative approval but the FDA denied final approval, and they believe the FDA's determination regarding Teva's first filer status is correct [61][62] Question: Reasoning behind the discontinuation of the Crohn's disease study - Management clarified that the study was not discontinued but deemed not worth the investment based on performance data [67] Question: Details on recent international deals in the cardiometabolic market - Management highlighted two deals in Latin America aimed at expanding their branded generic portfolio, which are expected to drive growth [70] Question: Contribution of Xifaxan to future growth - Management indicated that Salix with Xifaxan and Solta will be the two biggest contributors to growth in 2025, with continued strong dynamics expected [78] Question: Impact of potential government initiatives on Xifaxan - Management acknowledged Xifaxan's inclusion in the Medicare renegotiation list for 2027 and emphasized the importance of demonstrating its value during negotiations [90][92] Question: Plans for accessing capital markets and pledging Bausch + Lomb shares - Management confirmed that they are exploring various financing options, including potentially pledging Bausch + Lomb shares, but did not provide specific quantification [113][115]

Financial Data and Key Metrics Changes - Q4 2024 consolidated revenue was $87 million, a decrease of $0.8 million or 0.9% compared to Q4 2023, performing better than expectations [46] - Full year 2024 revenue was $350.4 million, a decrease of $12.2 million or 3.4% from the prior year, largely driven by the planned decline in the SoHo business [48] - Adjusted net income for Q4 2024 was $25.8 million, an increase of $4.4 million or 20.8% over the prior year [47] - Full year 2024 free cash flow was $88 million, compared to $77 million in the prior year [53] Business Line Data and Key Metrics Changes - Corporate revenue for Q4 2024 was $52.9 million, an increase of approximately 7.1% year-over-year, contributing to a full year corporate revenue of $209.1 million, representing a 4.8% growth rate [17][41] - SoHo revenue for Q4 2024 was $34.1 million, down 11.1% from $38.3 million in the same period last year, with full year SoHo revenues at $141.3 million, down 13.3% [25][45] - Corporate ARPA for Q4 2024 was stable at $304, while full year ARPA ended at $311, down from $316 in 2023 [22][41] Market Data and Key Metrics Changes - The corporate customer count reached approximately 59,000, with over 3,000 new customers added in Q4 [21] - The VA's ECFax solution revenue exceeded $2.6 million in 2024, with expectations to reach up to $5 million in 2025 [24] Company Strategy and Development Direction - The company plans to prioritize profitability and stability in the SoHo business for 2025, with a revenue target of approximately $128 million, down from $141 million in 2024 [31] - For the corporate channel, the company aims for a revenue target of $222 million in 2025, reflecting a growth rate of 6% to 6.5% compared to 2024 [35] - The company is focusing on customer retention, upselling, and cross-selling strategies to drive growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the corporate channel's growth, noting improvements in decision-making and market normalization [72][74] - The company anticipates a flat revenue year at $350 million for 2025, with expectations for growth in subsequent years [36] Other Important Information - The company repurchased approximately $20 million in debt during Q4 2024, bringing total debt repurchases to $207 million since the program's inception [11][51] - The company expects to file its fiscal '24 10-K by the close of business on the day of the call [38] Q&A Session Summary Question: Can you talk about the uptake of your advanced products, particularly Clarity and jSign? - Management highlighted that Clarity is in full production and is capable of extracting data from unstructured documents, with significant demand and several proof of concepts underway [60][62] Question: What are your expectations for corporate revenue growth going forward? - Management indicated that while Q4 showed a 7.1% growth, a more normalized growth rate is about 5.5%, with a target of 6.25% for 2025 [68][70] Question: Can you provide details on the '25 go-to-market investments? - Investments will focus on expanding sales headcount and reallocating marketing funds to enhance corporate marketing efforts, with most impacts expected in 2026 and beyond [80][81] Question: How much of the corporate growth in 2025 is derived from the VA rollout? - Management expects about $5 million contribution from the VA in 2025, with the rollout anticipated to continue without disruption [110]

Financial Performance and Key Metrics - Full year 2024 total revenues grew 18% to $2.85 billion, with fourth quarter revenues increasing 16% year-over-year to $747 million [16][9] - Non-GAAP operating margin expanded over 900 basis points, reaching 28.6% for the full year 2024, and 31.1% for the fourth quarter [21][10] - Non-GAAP diluted earnings per share increased 69% to $3.52 for the full year and 88% to $0.92 for the fourth quarter [22][10] - Operating cash flow for the full year 2024 was $573 million, a 260% increase over the previous year [22] Business Line Performance - VOXZOGO for achondroplasia grew 56% year-over-year, contributing significantly to revenue growth, with total revenue of $735 million for 2024 [11][30] - Enzyme therapy business totaled over $1.9 billion for the full year, a 12% increase compared to 2023, with consistent growth across marketed brands [17][10] - PALYNZIQ revenue growth was driven by substantial patient uptake in the U.S. and ongoing expansion in Japan [37] Market Performance - VOXZOGO's revenue split for 2024 was 24% from the U.S. and 76% from international markets, indicating strong global demand [32] - The company plans to expand VOXZOGO access to over 60 countries by 2027, focusing on early diagnosis and treatment [34] Company Strategy and Industry Competition - The company is prioritizing its most promising pipeline candidates and reorganizing its operating model around business units [8] - A $500 million cost transformation program is underway to enhance profitability and support long-term growth [8] - The company aims for double-digit revenue growth in 2025, with a target of $4 billion in total revenues by 2027 [23][25] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2025, supported by a strong commercial portfolio and ongoing innovation [10][13] - The company anticipates that the majority of revenue growth in 2025 will occur in the second half of the year [24] - Management highlighted the importance of early diagnosis and treatment in driving future growth, particularly for VOXZOGO [33] Other Important Information - The company expects non-GAAP operating margin for 2025 to be between 32% and 33%, reflecting continued strong revenue growth and cost transformation initiatives [26] - Non-GAAP diluted earnings per share for 2025 is expected to be between $4.20 and $4.40, indicating a strong growth trajectory [28] Q&A Session Summary Question: Insights on VOXZOGO guidance and growth expectations - Management acknowledged that while VOXZOGO is expected to grow by $200 million year-over-year, the growth rate is decelerating as the revenue base increases [50][52] - The U.S. market is a significant focus, with efforts to expand the prescriber base and increase patient starts in the 0 to 5 age cohort [56][57] Question: Business development priorities - The company is focused on both pipeline and commercial assets, with a strong interest in genetically defined conditions [62][68] - Management highlighted the importance of their global commercialization capabilities in attracting potential partners [70] Question: Durability and safety of growth hormone and CNP combo - The company aims to develop a single agent CNP drug that delivers best-in-class growth while ensuring convenience and safety for patients [79] Question: DMD program and dystrophin levels - Management indicated that the 25-week data will provide a clearer indication of whether the target of 10% dystrophin levels is achievable [86][88] Question: Diagnostic harmonization and enzyme therapy growth - The company is actively working on harmonizing diagnostic protocols across geographies to enhance patient identification and treatment [90][93]

Vimeo, Inc. (NASDAQ:VMEO) Q4 2024 Earnings Live Q&A Conference Call February 19, 2025 5:00 PM ET Company Participants Gillian Munson – Chief Financial Officer Philip Moyer – Chief Executive Officer Conference Call Participants Tom Champion – Piper Sandler Bill Kerr – TD Cowen Youssef Squali – Truist Operator Hello, and thank you for joining Vimeo Q4 and fiscal year 2024 earnings live Q&A. Before we begin, a few comments. First, this session will be recorded and available on the Vimeo Investor Relations site ...

Financial Data and Key Metrics Changes - In 2024, Toast added a record 28,000 net locations and processed approximately $160 billion in payment volume, with recurring gross profit streams growing 34% year-over-year [9][57] - Adjusted EBITDA for the full year reached $373 million, with margins expanding 20 percentage points year-over-year, marking the first full year of GAAP profitability [9][58] - In Q4, recurring gross profit streams increased 39%, with total monetization measured by recurring gross profit streams as a percentage of GPV at 93 basis points, a 10-basis-point improvement from the prior year [60] Business Line Data and Key Metrics Changes - SaaS ARR grew 32% year-over-year in Q4, with a 5% increase in SaaS ARPU on an ARR basis [62] - Payments ARR and fintech gross profit both increased 35% in Q4, with GPV at $42 billion, up 25% year-over-year [63] - Non-payments fintech solutions, led by Toast Capital, contributed $43 million in gross profit in Q4, with Toast Capital originations exceeding $1 billion for the year [64][65] Market Data and Key Metrics Changes - SaaS ARPU for international locations that went live in Q4 2024 was up 50% year-over-year, indicating strong growth potential in international markets [21][44] - The company processed over 0.5% of total US GDP in 2024, showcasing its significant market presence [57] - The company expects to surpass 10,000 customer locations across new segments later this year, indicating strong growth in enterprise, international, and retail markets [39] Company Strategy and Development Direction - Toast's mission is to help restaurants thrive, focusing on deepening market share in the US restaurant segment while expanding into new customer segments and geographies [10][11] - The company plans to increase sales and marketing investments in its core business and has launched campaigns to enhance brand awareness [13][14] - Investments in 2025 will focus on accelerating progress in new markets and fortifying core strengths, with a disciplined approach to balancing growth and profitability [59][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position for 2025, highlighting strong growth signals in both international and retail segments [9][11] - The company aims to maintain a high margin while gradually expanding margins, reflecting a disciplined investment strategy [31][59] - Management anticipates a balanced approach to pricing and continued growth in customer adoption of its platform, leveraging data and AI for differentiation [30][49] Other Important Information - The company achieved a dollar-based payback period in the mid-teens months, demonstrating strong efficiency in customer acquisition [68] - Free cash flow totaled $134 million in Q4 and $306 million for the full year, with expectations for free cash flow to mirror adjusted EBITDA in 2025 [70] Q&A Session Summary Question: Progress on international and retail segments - Management emphasized that the core focus remains on scaling the US restaurant segment, while also seeing positive signals in new segments, with nearly 10,000 locations expected across these areas [78][79] Question: SaaS ARR and same-store sales trends - Management noted that SaaS ARR per location was higher than expected, with same-store sales showing slight improvement despite external factors affecting Q1 [86][89] Question: Unit economics across different growth areas - Management indicated that customer acquisition costs and unit economics vary by segment, with retail showing healthy payback periods and strong GPV per unit [94][96] Question: AI product developments and customer reception - Management highlighted ongoing investments in AI capabilities, with positive customer feedback on tools that leverage data for operational improvements [100][102] Question: Enterprise pipeline and product positioning - Management reported a strong pipeline in the enterprise segment, with significant improvements in product capabilities to support upmarket growth [108][111] Question: Retail segment economics compared to restaurants - Management indicated that early retail customers show higher ARPU and margin contributions compared to traditional restaurant customers, suggesting strong potential for growth [112][114]

Financial Data and Key Metrics Changes - Grand Canyon Education reported service revenue of $292.6 million for Q4 2024, an increase of $14.3 million or 5.1% compared to $278.3 million in Q4 2023 [26] - Operating income for Q4 2024 was $100 million with an operating margin of 34.2%, while net income increased 1.4% to $81.9 million compared to $80.7 million in Q4 2023 [27][28] - GAAP diluted income per share for Q4 2024 was $2.84, while adjusted non-GAAP diluted income per share was $2.95, slightly above consensus estimates [29][32] Business Line Data and Key Metrics Changes - Online enrollment growth was 7.1% in Q4 2024, with hybrid growth excluding closed sites at 14.9% [5][14] - The hybrid campus saw a year-over-year enrollment increase of 9.8% in Q4 2024, with expectations for low-to-mid teens growth in 2025 [14] - Traditional campus enrollments were down slightly year-over-year, but there are positive trends for new student registrations for fall 2025 [11][13] Market Data and Key Metrics Changes - GCE's service revenue increase was primarily driven by a 5% increase in GCU enrollments and a 9.8% increase in university partner enrollments at off-campus sites [27] - The company anticipates total online enrollments to grow year-over-year in the mid-to-high single digits throughout 2025 [42] Company Strategy and Development Direction - Grand Canyon Education aims to address workforce challenges by expanding relevant programs and creative delivery models [6][7] - The company plans to grow its traditional campus to 50,000 students and has set a goal of 80 locations for its hybrid programs [12][20] - GCE is focused on producing graduates in high-demand fields such as nursing and education, which aligns with national workforce needs [24][86] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting enrollment growth goals despite current challenges, citing strong retention rates and relevant program offerings [10][13] - The company anticipates a slight decline in margins in the first half of 2025 due to increased investments but expects margins to expand in the second half [49] - Management highlighted the positive regulatory environment and the potential for increased support from the administration for their educational model [87][96] Other Important Information - The effective tax rate for Q4 2024 was 21.2%, an increase from 19.9% in Q4 2023, primarily due to higher state income taxes [35][50] - The company repurchased 416,497 shares at a cost of approximately $64.8 million in Q4 2024, with an additional 226,258 shares repurchased since then [36][37] Q&A Session Summary Question: Can you discuss demand and conversion initiatives for fall 2025 ground campus intake? - Management noted adjustments to the Discover GCU process have improved conversion rates, leading to significant early registrations for fall 2025 [54][57] Question: What are the academic outcomes for ABSN students? - The reported outcomes are for all ABSN students, with high success rates for those entering the program [60][64] Question: What is the status of the GCU contract? - The GCU contract continues without expiration in July, with discussions about early extension due to positive outcomes [72][74] Question: How many hybrid locations are currently open? - There are currently 45 hybrid sites open, with plans to open six to eight more per year [75] Question: Any impact from changes in the Department of Education? - Management indicated no significant impact, emphasizing the focus on outcomes and the positive reception of their educational model [84][91]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenues of $9.6 million, which is near the high end of their guidance range. For the full year 2024, total revenues reached $23.1 million, a significant increase from $7.6 million in 2023, representing a year-over-year growth of approximately 204% [10][19]. - Non-GAAP EBITDA for Q4 was a loss of $11.7 million, which was better than the guidance of a loss between $19 million and $25 million. Non-GAAP EPS also showed a loss of $0.11, exceeding the guidance of a loss between $0.15 and $0.21 [19][21]. - The company ended the quarter with approximately $273 million in cash and cash equivalents, with capital expenditures (CapEx) in Q4 amounting to $16.4 million [20][21]. Business Line Data and Key Metrics Changes - The company completed its top manufacturing and product objectives for the quarter, including the Site Acceptance Testing (SAT) of its High-Volume Manufacturing (HVM) line and shipping the first samples of EX-2M to customers [11][12]. - The ramp-up of Fab2 in Malaysia was highlighted as a pivotal accomplishment, with yields exceeding those achieved in Fab1, indicating readiness for smartphone mass production by Q4 2025 [13][14]. Market Data and Key Metrics Changes - The company is focusing on segments with significant battery constraints, such as smart eyewear and the defense industry, which have emerged as unique growth opportunities. The defense sector has seen increased interest from drone manufacturers and defense suppliers since the US elections in November [15][16]. - The company has secured a purchase order from a marquee smart eyewear customer and is developing custom cells for this segment [12][15]. Company Strategy and Development Direction - The company is prioritizing smartphone markets while also exploring opportunities in smart eyewear and defense, where its technology offers a competitive advantage due to battery constraints [15][16]. - The design phase for EX-3M has officially begun, incorporating feedback from lead OEMs to align with their evolving requirements [18]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential upside from the defense industry and noted that the demand for higher capacity batteries is driven by applications such as AI, which consume significant energy [57][58]. - The company is confident in its manufacturing readiness and customer interest, with multiple customer audits ongoing [14][22]. Other Important Information - The company is in the process of optimizing its manufacturing lines to improve efficiency and throughput as it gains more visibility into customer demand [51][52]. - The company is also focused on expanding its capacity in response to customer qualifications and market demand, with plans to add additional manufacturing lines as needed [26][28]. Q&A Session Summary Question: What are the implications of new policies and tariffs on Enovix's operations? - Management indicated that there has been increased interest from defense and industrial customers in the US, and the company's manufacturing locations in Korea and Malaysia are favorable for shipping to the US, thus not seeing much effect from tariffs [24]. Question: What is the current guidance for adding manufacturing lines and capacity? - The company has completed SAT of its HVM line in Malaysia, which has a capacity of approximately 9.5 million to 10 million batteries per year. They are planning to add up to four lines in total [26][27]. Question: Can you provide insights on the growth profile of a drone customer? - While specific customer details could not be disclosed, management noted significant interest in high-rate batteries for applications requiring fast discharge, indicating a growing market [33][34]. Question: What is the status of the EX-2M and EX-3M models? - The EX-2M has received positive feedback from OEMs, and the design phase for EX-3M has commenced, focusing on increased energy density and customer requirements [41][43]. Question: How quickly can the company ramp up production for new lines? - The company is stockpiling long lead time items to reduce the timeline for adding new lines, with expectations that the second line will be set up significantly faster than the first [97][98]. Question: What is the expected CapEx for 2025? - The company has budgeted between $30 million to $40 million for CapEx in 2025, focusing on long lead time items and additional manufacturing capacity [110]. Question: How does the sales cycle work for cellphones? - The sales cycle involves working closely with customers to meet their requirements, with the expectation that cells can be qualified for multiple models over time, extending into 2026 [120][124].