Waters Corporation · NYSE:WAT
Waters — Q1 2024 Earnings Presentation
14 slides from Waters's earnings presentation, May 7, 2024
Slide 1: Q1 2024 Earnings Call Presentation
Q1 2024 Earnings Call Presentation May 7, 2024
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
Forward-Looking Statements & Non-GAAP Financial Measures This presentation contains forward-looking statements regarding future results and events, including financial and operational guidance and projected estimates. For this purpose, any statements that are not statements of historical fact may be
Slide 3: Key Messages
Key Messages Strong Execution Continues Excellent Operational Performance Innovation Fueling Growth Strategy ©2024 Waters Corporation 2
Slide 4: Q1 2024 Results
Q1 2024 Results CC Organic Q1 2024 Revenue Revenue Growth Q1 2024 EPS $637M (9%) Non-GAAP Reported: (7%) M&A: +3% FX: (1%) $2.21 CC Organic CC Organic Recurring Instrument Growth Revenue Growth Growth (25%) +3% (11%) CC: Constant Currency; Growth rates are versus prior year Note: A reconciliation of
Slide 5: Excellent Operational Performance
Excellent Operational Performance Strong Margin Results Despite Headwinds from Volume, FX, & Inflation 1 Pricing 1Q24 Gross Margin 58.9% 2 Productivity Expansion +40bps Y/Y Proactive Cost 3 1Q24 Alignment Adj. Operating 27.0% Margin Expansion +20bps Y/Y Note: Operating margin results and percentage
Slide 6: We Serve Attractive, Secular Markets Driven by Testing Volume
We Serve Attractive, Secular Markets Driven by Testing Volume Downstream Serving High Volume, Strong Margin & Presence Regulated Applications Free Cash Flow Profile 59.6% Pharma QA/QC testing Gross Margin (FY-23) Late-Stage Drug Development Food & Environmental Safety 30.9% Adj. Operating Margin1 (F
Slide 7: New Product Launches Serving High Growth Areas
New Product Launches Serving High Growth Areas Alliance iS Bio SEC Columns Sample Prep Rheo IS for Large Molecules for Gene-Based Therapies for PFAS Detection for Battery Testing Eliminates up to 40% of Improves sensitivity by Reduces sample prep time Advances electrode design common errors in QC la
Slide 8: Q1 2024 Organic Revenue Stratification
Q1 2024 Organic Revenue Stratification Academic & 11% Government Service (30%) Pharma +4%** Instruments 37% (6%) 41% (25%) END MARKETS c 31% Growth %* 58% PRODUCTS & SERVICES Growth %* Industrial (7%) Chemistry 22% +2%** TA 12% Europe (9%) 30% 33% (3%) GEOGRAPHY c Growth %* Asia (16%) OPERATING SEGM
Slide 9: FY & Q2 2024 Guidance
FY & Q2 2024 Guidance Organic Constant Currency Organic Constant Currency Revenue Growth vs. FY 2023 Revenue Growth vs. Q2 2023 FX (~1%); M&A +~1% FX (2%); M&A +1.5% Reported Growth 0% to +2% Reported Growth (6.5%) to (4.5%) NON-GAAP EPS NON-GAAP EPS $11.75 to $12.05 $2.50 to $2.60 Based on current
Slide 10: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations
Slide 11: Sales Stratification – Q1 2024 Reported & Organic CC Growth
Sales Stratification – Q1 2024 Reported & Organic CC Growth % Growth Impact of % Growth Organic (in millions USD) 2024 2023 Impact of Currency Reported Acquisitions Constant Currency Waters 561.9 602.1 (7%) (1%) 4% (10%) Operating Segments TA 74.9 82.6 (9%) (1%) 0% (9%) Pharmaceutical 374.2 384.9 (3
Slide 12: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Operating Income Reconciliation of GAAP to Adjusted Non-GAAP Q1 2024 Q1 2024 Operating Q1 2023 Q1 2023 Operating (in thousands USD) Operating Income Income Percentage Operating Income Income Percentage GAAP 133,846 21.0% 174,168 25.4% Adjustments: Purchased intangibl
Slide 13: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations Earnings Per Share Q2 2024 and FY 2024 Guidance Q1 2024 Q1 2023 Projected Sales Q2 2024 FY 2024 GAAP $ 1.72 $ 2.38 Organic constant currency (6.0%) - (4.0%) (0.5%) - 1.5% Adjustments: sales growth rate* Purchased intangibles amortization (a) $ 0.15 $ 0.02 Impact of:
Slide 14: Slide 14