Q3 2024 Bio-Techne Corp Earnings Call Transcript
Key Points
- Bio-Techne Corp (TECH) reported a 2% year-over-year organic revenue growth, surpassing initial expectations for the third quarter.
- Adjusted operating margin increased by 290 basis points sequentially to 33%, indicating effective cost management and profitability focus.
- Recognition by CiteAb as ELISA Kit Supplier of the Year and for innovation in RNAscope HiPlex12, highlighting strong market adoption and leadership in research tools.
- Strong performance in growth pillars such as GMP reagents, ExoDx Prostate test, and proteomic analytical tools, with new records set in quarterly revenues for GMP reagents.
- Strategic initiatives like leveraging AI for developing new patentable proteins and the expansion into clinical diagnostics with the Ella platform, positioning TECH for future growth.
- Continued macroeconomic challenges and biotech funding issues, although showing signs of stabilization, still pose risks to sustained growth.
- Revenue decline in China by mid-single digits year-over-year, reflecting ongoing market challenges despite stabilization in recent quarters.
- Protein Sciences segment saw a 1% year-over-year decline in organic revenue, mainly due to exposure to biopharma and Chinese markets.
- Higher operating expenses due to acquisitions, such as Lunaphore, impacting the adjusted operating margin which decreased by 400 basis points from the previous year.
- Uncertainties in biotech funding recovery and Chinese economic stimulus, making it difficult to predict the timing and impact on future growth.
Good morning, and welcome to the Bio-Techne Earnings Conference Call for the Third Quarter of Fiscal Year 2024. (Operator Instructions)
I would now like to turn the call over to David Clair, Bio-Techne's Vice President of Investor Relations. Please go ahead.
Good morning, and thank you for joining us. On the call with me this morning are Kim Kelderman, President, and Chief Executive Officer; and Jim Hippel, Chief Financial Officer of Bio-Techne. Before we begin, let me briefly cover our safe harbor statement. Some of the comments made during this conference call may be considered forward-looking statements, including beliefs and expectations about the company's future results. The company's 10-K for fiscal year 2023 identifies certain factors that could cause the company's actual results to differ materially from those projected in the forward-looking statements made during this call.
The company does not undertake to update any forward-looking statements
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