Azenta Inc is a provider of life sciences solutions, enabling impactful breakthroughs and therapies to market faster. It provides a full suite of reliable cold-chain sample management solutions and genomic services across areas such as drug development, clinical research, and advanced cell therapies for the industry's top pharmaceutical, biotech, academic, and healthcare institutions globally. The company has two reportable segments: Life Sciences Products and Life Sciences Services, with the latter generating a substantial part of its revenue.
Performance Overview
For the third quarter of fiscal 2024, Azenta Inc (AZTA, Financial) reported revenue of $173 million, surpassing the analyst estimate of $166.26 million. This represents a 9% increase from the previous quarter and a 4% increase year-over-year. However, the company reported a diluted EPS from continuing operations of -$0.12, missing the analyst estimate of -$0.09.
Segment Performance
The Life Sciences Services segment, which is a significant revenue driver, showed robust performance. The Sample Management Solutions sub-segment reported $81 million in revenue, a 9% increase from the previous quarter and a 7% increase year-over-year. The Multiomics sub-segment remained flat year-over-year at $64 million but saw a 2% increase from the previous quarter. B Medical Systems, another sub-segment, reported $29 million in revenue, marking a 25% increase from the previous quarter and a 7% increase year-over-year.
Financial Achievements and Challenges
Azenta Inc (AZTA, Financial) achieved an adjusted EBITDA of $18 million for continuing operations, an 89% increase from the previous quarter and a 39% increase year-over-year. The adjusted EBITDA margin for continuing operations improved to 10.3% from 5.9% in the previous quarter.
“We delivered another solid quarter with above market growth, that together with the disciplined execution of our transformation initiatives, contributed to meaningful margin expansion and increased profitability,” said Steve Schwartz, President and CEO.
Income Statement Highlights
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Revenue | $173M | $159M | $166M |
| Gross Profit | $69M | $68M | $68M |
| Operating Loss | -$14.75M | -$15.84M | -$15.84M |
| Net Loss | -$6.58M | -$1.47M | -$1.47M |
Balance Sheet and Cash Flow
As of June 30, 2024, Azenta Inc (AZTA, Financial) reported total assets of $2.32 billion, down from $2.89 billion as of September 30, 2023. The company’s cash and cash equivalents stood at $336.54 million, a significant decrease from $678.91 million at the end of the previous fiscal year. The decrease in cash is primarily attributed to share repurchases and investments in marketable securities.
Analysis
Azenta Inc (AZTA, Financial) has shown resilience in its revenue growth, particularly in its Life Sciences Services segment. However, the company faces challenges in achieving profitability, as indicated by its negative EPS. The significant decrease in cash reserves also raises concerns about liquidity. Nevertheless, the company’s focus on transformation initiatives and margin expansion could position it well for long-term growth and profitability.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Azenta Inc for further details.
