Slide 1: Second Quarter Fiscal 2023 Financial Results
Conference Call Second Quarter Fiscal 2023 Financial Results May 9, 2023 1 © 2023 Azenta, Inc. • Proprietary Information
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
Slide 3: Azenta Life Sciences Q2 FY 2023 Overview
Azenta Life Sciences Q2 FY 2023 Overview Continuing Operations – Quarter Ended March 31, 2023 Q2’23 revenue of $148M, up 2% YtY; FY23 Guidance Reset to Approximately 20% Growth YtY • Genomics turnaround is evident with Gene Synthesis and Sanger showing 6% sequential growth • SRS delivered growth of
Slide 4: Azenta Life Sciences Operating Performance
Azenta Life Sciences Operating Performance Continuing Operations – Quarter Ended March 31, 2023 $ millions, except EPS GAAP Non-GAAP Q2’23 Revenue Growth (YtY) Q2'23 QtQ Q2'23 QtQ YtY Revenue 148 (17%) 148 (17%) 2% Q2'22 Q2'23 YtY Gross profit 53 (28%) 61 (25%) (15%) Reported 146 148 2% % 35.9% (5.5
Slide 5: Life Sciences Products Performance
Life Sciences Products Performance Quarter Ended March 31, 2023 Total Products (including B Medical) B Medical Products Revenue Growth (YtY) $ millions Q1'23 Q2'23 QtQ YtY Q1'23 Q2'23 QtQ Q2 '2 2 Q2 '2 3 Y tY Revenue 90 59 (34%) 10% 42 15 (64%) Reported 54 59 10% Gross profit 39 21 (46%) (22%) 20 4
Slide 6: Life Sciences Services Performance
Life Sciences Services Performance Quarter Ended March 31, 2023 Services Revenue Growth (YtY) $ millions Q1'23 Q2'23 QtQ YtY Q2 '2 2 Q2 '2 3 Y tY Revenue 89 90 1% (3%) Reported 92 90 (3 %) FX - (2) 2% Gross profit 42 40 (5%) (12%) M&A - - 0% % 47.6% 45.0% (2.6) pts. (4.6) pts. Organic 92 92 (0 %) CO
Slide 7: Summary Consolidated Balance Sheet
Summary Consolidated Balance Sheet Dec Mar $ millions 2022 2023 QtQ Cash, restricted cash, short term marketable securities 1,138 1,185 47 Accounts receivable, net 202 168 (34) Inventories 146 151 5 Other current assets 134 82 (52) • $1.5B cash, cash equivalents, Current Assets 1,620 1,586 (34) rest
Slide 8: Summary Consolidated Cash Flow
Summary Consolidated Cash Flow $ millions Q2'23 Cash, restricted cash and marketable securities - Beginning 1,443 Net income (5) Deferred income tax benefit (provision) (15) • $7M adjusted operating cash flow Contingent consideration - fair value adjustments (17) • $19M cash taxes related to sale of
Slide 9: Q3'23 Guidance
Q3’23 Guidance Q3’23 Projected Q3’23 Guidance $ millions, except EPS Q2'23 Q3'23 Revenue Growth (YtY) Revenue $148 $150 - $168 Q3'23 LS Products $59 $63 - $71 LS Services $90 $87 - $97 Reported ~20% FX ~1% Adjusted EBITDA ($2) ($3) - $6 M&A ~(19)% Non-GAAP diluted EPS ($0.06) ($0.07) - $0.03 Organic
Slide 10: Appendix
Appendix 10 © 2023 Azenta, Inc. • Proprietary Information
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 Revenue 139.7 145.5 132.7 137.6 178.4 148.4 GAAP gross profit 67.0 70.8 59.6 58.1 73.9 53.2 Gross profit margin 48.0% 48.7% 44.9% 42.3% 41.4% 35.9% Amortization
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 Life Sciences Products Revenue 49.9 53.6 47.4 48.4 89.7 58.9 GAAP gross profit 22.7 26.3 21.0 19.1 33.0 14.3 Gross profit margin 45.5% 49.0% 44.4% 39.4% 36.8% 24.3%
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 Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 Genomics Gross Margin 32.6 32.1 27.3 28.2 28.9 28.2 Genomics Gross Margin % 51.0% 49.4% 46.0% 45.0% 47.4% 45.4% SRS Revenue 25.9 26.9
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 Life Sciences Services- Genomics Revenue 63.9 65.0 59.4 62.7 61.1 62.2 GAAP gross profit 31.1 31.1 25.9 26.5 27.7 27.0 Gross profit margin 48.7% 47.9% 43.6% 42.3% 45.4%
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 B Medical Revenue - - - - 41.8 15.1 GAAP gross profit - - - - 14.1 (1.3) Gross profit margin - - - - 33.7% (8.7%) Amortization expense -
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 Net income 43.3 2,119.9 (9.6) (20.8) (11.2) (4.9) Income (Loss) from discontinued operations, net of tax (40.5) (2,121.7) 2.6 15.5 - 2.9 Net income (Loss) from continuing ope
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 Operating Profit (Loss) 4.2 5.0 2.0 (0.1) (3.8) (16.4) Adjustments: Depreciation 0.7 0.9 0.9 1.2 3.1 3.3 Amortization of intangible assets 0.2 0.3
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 Operating Profit (Loss) - - - - (0.5) (9.0) Adjustments: Depreciation - - - - 2.1 2.0 Amortization of intangible assets - - - - 3.9
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 Revenue 18% 12% 3% 0% 28% 2% Acquisitions/divestitures (2%) (1%) 0% (3%) (33%) (13%) Currency exchange rates (0%) 1% 3% 4% 4% 3% Organic revenue 16% 12% 6% 2