Insulet (PODD) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good afternoon, ladies and gentlemen, and welcome to the Insulet Corporation First Quarter Earnings Call. At this time, all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that time. As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, June Lazaroff, Senior Director, Investor Relations. Good afternoon, ...

Financial Data and Key Metrics Changes - Q1 2025 revenue was $1,040 million, down 1.4% year over year, with constant currency revenue roughly flat [19][30] - Non-GAAP EPS was $0.97, at the high end of guidance [18][27] - Non-GAAP gross margin increased by 30 basis points year over year to 67.4% [24] - Non-GAAP operating margin was 20.4% in Q1 [27] - Cash flow from operations was $240 million, with free cash flow at $208 million [28] Business Line Data and Key Metrics Changes - Sequencing consumables revenue was $696 million, growing approximately 1% year over year [19] - Sequencing instruments revenue was approximately flat at $109 million [22] - Sequencing service and other revenue decreased by approximately 5% year over year to $142 million [23] Market Data and Key Metrics Changes - Clinical business consumables grew mid-single digits, while research consumables were down in the high mid to high single-digit range [49] - The Greater China region is expected to contribute only $165 million to $185 million in full-year revenue, significantly down from previous levels [30][32] Company Strategy and Development Direction - The company aims for high single-digit revenue growth and 500 basis points margin expansion by 2027, excluding Greater China [8][10] - A $100 million cost reduction program was initiated to address challenges in China and the U.S. funding environment [11][25] - The company is focused on advancing its Multiomics ecosystem and has several new product launches planned for 2025 and 2026 [13][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges but emphasized the resilience of the business and strong sequencing activity [6][44] - The company is actively engaging with regulatory authorities in China to find long-term solutions [10][32] - Management expressed confidence in the long-term growth trajectory despite current headwinds [9][39] Other Important Information - The company is revising its guidance to reflect geopolitical impacts, particularly in China [29] - The estimated gross cost of tariffs for 2025 is approximately $85 million, impacting margins [34][35] Q&A Session Summary Question: What is the outlook for revenue growth and margins? - Management believes revenue growth will rebound and margins will expand above 25% in the future, with a focus on cost control [41][42] Question: What are the growth rates for clinical and research segments? - Clinical revenue grew mid-single digits, while research revenue is expected to decline in the mid-double digits for the remainder of the year [49][50] Question: How are tariffs affecting demand? - No significant change in customer behavior was observed in Q1 due to tariffs, but future impacts are anticipated [66][68] Question: What is the impact of China on future revenue? - The company expects continued revenue decline from China, with proactive measures in place to mitigate risks [96]

Financial Data and Key Metrics Changes - First quarter revenue for 2025 was $41.5 million, a decrease of 7.6% compared to the first quarter of 2024, primarily due to weakness in instrument sales in the U.S. and EMEA regions [8][25] - Service revenue increased by 24% year-over-year, reaching $13.3 million, driven by the expansion of the instrument installed base [8][26] - GAAP gross profit was $20.2 million, a decrease of 12% from $23 million in the prior year, with a GAAP gross margin of 49% compared to 51% a year ago [27][28] Business Line Data and Key Metrics Changes - Product revenue, which includes instruments and reagents, decreased by 18% compared to Q1 of 2024, mainly due to a weaker instrument market in the U.S. and EMEA [25][26] - Aurora cell sorter revenue grew by 15% year-over-year, while Northern Lights revenue increased by 6% year-over-year in the first quarter [18][19] - Trailing twelve-month recurring revenue grew 17% year-over-year, representing 31% of total revenue in the first quarter, up from 26% a year ago [21][56] Market Data and Key Metrics Changes - Total revenue in the Asia Pacific and the rest of the world was $11.4 million, up 35.6% year-over-year, driven by strong demand in China [11][26] - U.S. and EMEA revenue declined by 13% and 24% respectively, due to lower instrument sales influenced by academic funding uncertainties and government budget pressures [26][27] - The company continues to experience growth in the clinical market, particularly in the EU and APAC regions [22][23] Company Strategy and Development Direction - The company is focused on expanding its market leadership in the cell analysis market and has established manufacturing operations in the U.S., China, and Singapore to optimize product flows [13][14] - Strategic investments are being made to advance the product pipeline, including the launch of the SiPET MUSE microsystem to drive adoption in emerging markets [15][18] - The company aims to leverage its established and expanding installed base to drive long-term growth in recurring services and reagent sales [21][24] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and uncertainties affecting capital equipment spending in the U.S. and EMEA [12][31] - The full-year 2025 revenue outlook has been revised to a range of $196 million to $210 million, reflecting a growth of -2% to +5% over the full year 2024 [31][32] - Management remains confident in the company's positioning and believes it will perform well relative to the overall flow cytometry market [31][32] Other Important Information - The company has a strong balance sheet, allowing for continued investments in growth and share repurchases [30][34] - The company plans to host six user group meetings in 2025 to engage with the scientific community and showcase its products [5][6] Q&A Session Summary Question: Impact of tariffs on gross margin - Management indicated that tariffs are manageable and expect a limited gross margin impact of 1% to 3%, with improvements anticipated as revenues increase [36][41] Question: Academic government end market outlook - Management acknowledged uncertainties in university funding and indicated that more than 50% of revenue comes from outside the U.S., which mitigates the impact of U.S. funding issues [44][46] Question: Growth drivers for AURORA sales orders - Growth in AURORA sales is attributed to the alignment of the SiTeX sorter with existing analyzers and strong performance across all territories [50][51] Question: R&D spending focus - The company continues to allocate 15% to 20% of revenue to R&D, with a focus on imaging and spectral innovations [59][60] Question: Share repurchase versus M&A - Management plans to balance share repurchases with capital available for M&A, indicating a healthy balance sheet [63]

Longeveron (LGVN) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Derek Cole of Investor Relations Advisory Solutions. Thank you. You may begin. Speaker1 Thank you, operator. Good afternoon, everyone, and thank you for joining us today to review Longgevron's twenty twenty five first quarter financial results and business update. After The U. S. Markets closed today, we issued a press release with financial r ...

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HireQuest (HQI) Q1 2025 Earnings Call May 08, 2025 04:30 PM ET Speaker0 Good afternoon, everyone, and thank you for participating in today's conference call to discuss HireQuest's financial results for the First Quarter ended 03/31/2025. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Belladeau of IMS Investor Relations. Please go a ...

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