Azenta, Inc. · NASDAQ:AZTA

Azenta — Q3 2023 Earnings Presentation

19 slides from Azenta's earnings presentation, Aug 8, 2023

  1. Slide 1: Conference Call Third Quarter Fiscal 2023 Financial Results

    Conference Call Third Quarter Fiscal 2023 Financial Results August 8, 2023 1 © 2023 Azenta, Inc. • Proprietary Information

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement “Safe Harbor” Statement under the U.S. Private Securities Litigation Reform Act of 1995; certain matters in this presentation, including forecasts of future demand and future Company performance, are forward-looking statements that are subject to risks and uncertainties that co

  3. Slide 3: Azenta Life Sciences Q3 FY 2023 Overview

    Azenta Life Sciences Q3 FY 2023 Overview Continuing Operations – Quarter Ended June 30, 2023 Q3’23 revenue of $166M, up 25% YtY and up 2% on an organic basis • Growth led by automated stores systems, sample repository solutions, and genomics • Consumables and instruments (“C&I”) market softness cont

  4. Slide 4: Azenta Life Sciences Operating Performance

    Azenta Life Sciences Operating Performance Continuing Operations – Quarter Ended June 30, 2023 $ millions, except EPS GAAP Non-GAAP Q3’23 Revenue Growth (YtY) Q3'23 QtQ Q3'23 QtQ YtY Revenue 166 12% 166 12% 25% Gross profit 68 28% 76 24% 23% Q3 '2 2 Q3 '2 3 Y tY % 41.0% 5.1 pts. 45.6% 4.4 pts. (0.7)

  5. Slide 5: Life Sciences Products Performance

    Life Sciences Products Performance Quarter Ended June 30, 2023 Total Products (including B Medical) B Medical Products Revenue Growth (YtY) $ millions Q2'23 Q3'23 QtQ YtY Q2'23 Q3'23 QtQ Revenue 59 75 27% 57% 15 27 77% Q3'22 Q3'23 YtY Gross profit 21 33 61% 57% 4 10 140% Reported 47 75 57% FX (0) 0%

  6. Slide 6: Life Sciences Services Performance

    Life Sciences Services Performance Quarter Ended June 30, 2023 Services Revenue Growth (YtY) $ millions Q2'23 Q3'23 QtQ YtY Revenue 90 91 2% 7% Q3'22 Q3'23 YtY Gross profit 40 42 5% 5% Reported 85 91 7% FX (0) 1% % 45.0% 46.1% 1.1 pts. (0.9) pts. Ex FX 85 92 8% Operating expenses 44 45 2% 18% M&A -

  7. Slide 7: Summary Consolidated Balance Sheet

    Summary Consolidated Balance Sheet Mar Jun $ millions 2023 2023 QtQ Cash, restricted cash, short term marketable securities 1,185 1,126 (59) Accounts receivable, net 168 163 (5) Inventories 151 142 (9) Other current assets 82 80 (2) • $1.3B cash, cash equivalents, Current Assets 1,586 1,511 (75) res

  8. Slide 8: Summary Consolidated Cash Flow

    Summary Consolidated Cash Flow $ millions Q3'23 Cash, restricted cash and marketable securities - Beginning 1,452 • Improved cash flow from Net income (1) operations driving free cash flow Deferred income tax benefit (provision) (4) of $9M Contingent consideration - fair value adjustments (1) Deprec

  9. Slide 9: Q4'23 Guidance

    Q4’23 Guidance Guidance $ millions, except EPS Q3'23 Q4'23 Projected Q4’23 Revenue $166 $155 - $173 Revenue Growth (YtY) LS Products $75 $69 - $79 LS Services $91 $86 - $94 Q4'23 As Reported ~19% Adjusted EBITDA $13 $2 - $9 FX ~(1)% Non-GAAP diluted EPS $0.13 ($0.02) - $0.06 M&A ~(18)% GAAP diluted

  10. Slide 10: Appendix

    Appendix 10 © 2023 Azenta, Inc. • Proprietary Information

  11. Slide 11: GAAP to Non-GAAP – Total Azenta

    GAAP to Non-GAAP Reconciliation Continuing Operations – Total Azenta $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Revenue 139.7 145.5 132.7 137.6 178.4 148.4 165.9 GAAP gross profit 67.0 70.8 59.6 58.1 73.9 53.2 68.0 Gross profit margin 48.0% 48.7% 44.9% 42.3% 41.4%

  12. Slide 12: GAAP to Non-GAAP – Segments

    GAAP to Non-GAAP Reconciliation Continuing Operations – Segments $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Life Sciences Products Revenue 49.9 53.6 47.4 48.4 89.7 58.9 74.6 GAAP gross profit 22.7 26.3 21.0 19.1 33.0 14.3 27.2 Gross profit margin 45.5% 49.0% 44.4%

  13. Slide 13: Revenue and Gross Margin Quarterly Trend

    Revenue and Gross Margin Quarterly Trend Continuing Operations Non GAAP Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 63.8 Genomics Gross Margin 32.6 32.1 27.3 28.2 28.9 28.2 29.5 Genomics Gross Margin % 51.0% 49.4% 46.0% 45.0% 47.4% 45.4% 46.

  14. Slide 14: GAAP to Non-GAAP – Genomics and SRS

    GAAP to Non-GAAP Reconciliation Continuing Operations – Genomics and SRS $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Life Sciences Services- Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 63.8 GAAP gross profit 31.1 31.1 25.9 26.5 27.7 27.0 28.3 Gross profit margin 48.7% 47.9%

  15. Slide 15: GAAP to Non-GAAP – B Medical and Products ex B Medical

    GAAP to Non-GAAP Reconciliation Continuing Operations – B Medical and Products ex B Medical $ millions, except EPS Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 B Medical Revenue - - - - 41.8 15.1 26.8 GAAP gross profit - - - - 14.1 (1.3) 4.8 Gross profit margin - - - - 33.7% (8.7%) 17.9%

  16. Slide 16: Net Income to Adjusted EBITDA

    Net Income to Adjusted EBITDA Reconciliation Continuing Operations $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Net income 43.3 2,119.9 (9.6) (20.8) (11.2) (4.9) (1.5) (Income) Loss from discontinued operations, net of tax (40.5) (2,121.7) 2.6 15.5 - 2.9 (1.0) Net income (Loss)

  17. Slide 17: Operating Profit to Adjusted EBITDA – Segments

    Operating Profit to Adjusted EBITDA Reconciliation Continuing Operations – Segments Life Science Products Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Operating Profit (Loss) 4.2 5.0 2.0 (0.1) (3.8) (16.4) (4.9) Adjustments: Depreciation 0.7 0.9 0.9 1.2 3.1 3.3 2.9 Amortization of intangi

  18. Slide 18: Operating Profit to Adjusted EBITDA – B Medical and Products ex B Medical

    Operating Profit to Adjusted EBITDA Reconciliation Continuing Operations – B Medical and Products ex B Medical B Medical Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Operating Profit (Loss) - - - - (0.5) (9.0) (4.1) Adjustments: Depreciation - - - - 2.1 2.0 1.9 Amortization of intangible

  19. Slide 19: Calculation of Organic Revenue Excluding COVID

    Calculation of Organic Revenue Excluding COVID Continuing Operations Growth Metrics $ millions Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 Q1 FY23 Q2 FY23 Q3 FY23 Revenue 18% 12% 3% 0% 28% 2% 25% Acquisitions/divestitures (2%) (1%) 0% (3%) (33%) (13%) (24%) Currency exchange rates (0%) 1% 3% 4% 4% 3% 0% Organic

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