Q3 2024 Novanta Inc Earnings Call Transcript
Key Points
- Novanta Inc (NOVT) delivered strong third-quarter results, reaching the top end of their guidance range.
- The company reported $244 million in revenue, representing a 10% growth, with adjusted EBITDA growing 9% year-over-year.
- Bookings grew 13% year-over-year, indicating strong demand for new product launches in 2025.
- Novanta Inc (NOVT) is optimistic about returning to organic growth in the fourth quarter of 2024 and expects strong growth in 2025.
- The company is well-positioned in markets with long-term secular growth trends, such as precision medicine, minimally invasive surgery, and robotics and automation.
- Fourth-quarter revenue guidance is impacted by the rescheduling of DNA sequencing product shipments and new product launch timing shifts.
- Short-term timing changes and macroeconomic factors are affecting customer confidence and capital equipment market demand.
- Adjusted gross margins were down year-over-year due to lower factory utilization and the impact of the Motion Solutions acquisition.
- The precision medicine and manufacturing segment experienced a 15% sales decline, weaker than prior expectations.
- The company's book-to-bill ratio was 0.89, indicating a weaker demand environment in life science and advanced industrial applications.
Good morning. My name is Gary, and I will be your conference operator today. At this time, I would like to welcome everyone to Novanta Incorporated's third-quarter 2024 earnings call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Ray Nash, Corporate Finance Leader for Novanta. Please go ahead.
Thank you very much. Good morning, and welcome to Novanta's third-quarter 2024 earnings conference call. This is Ray Nash, Corporate Finance Leader for Novanta. With me on today's call is our Chair and Chief Executive Officer, Matthijs Glastra; and our Chief Financial Officer, Robert Buckley. If you have not received a copy of our earnings press release issued today, you may obtain it from the Investor Relations section of our website at www.novanta.com. Please note, this call is being webcast live and will be archived on our website shortly after the call.
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