Qiagen (QGEN) 29 Jul 222022 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. I am Kyle, your PGI call operator. Welcome, and thank you for joining QIAGEN's Second Quarter 2022 Earnings Conference Call Webcast. [Operator Instructions]. At this time, I would like to introduce your host, John Gilardi, Vice President, Head of Corporate Communications and Investor Relations at QIAGEN. sir. ahead, go Please

Roland joining Today, and very call today section performance we and the IR move Chief are details Sackers, archived will Investors Please of Officer. and you the from along Loh our website, call. Relations being Thierry at Investor Executive to with webcast The remarks on Roland team. Also the Financial of section Chief speakers Thierry Q&A and that our first is much, thank Phoebe welcome from this will is operator, the note quarterly www.qiagen.com. then have into the presentation session. our Officer; release. some be us website is our with available A So Bernard, on our and our live on

will call. the slides not the be We during showing

the discussion of conference we to your me statement. Before let begin, reflects This of as usual, harbor XXXX. and responses July safe XX, views our management call cover questions today, as

revise safe We and statements our of provisions providing state your that or questions expectations of beliefs, the intentions, future. statements be purpose the the These under constitute the making for responses forward-looking to and will harbor predictions of forward-looking These Act to Reform to Litigation Securities statements. Private could statements uncertainties involve cause materially those any XXXX. intention projected. obligation any or risks from that differ results actual QIAGEN disclaims

Securities with on U.S. filings For our our and Commission, more which information, refer please also website. the Exchange are available to

turn All reconciliation directly to non-GAAP that unmute EPS release Thierry. to press now both as the would are most certain comparable the measures for line. our not available or generally call this well financial accounting prepared call as to your measures in in like the GAAP Thierry, will quarter refer GAAP. our with We to on please in over accepted I to A the financial be measures of referring accordance principles diluted EPS. these presentation website. to also references available second is for

and unmute would even joining, John, today. you, I'm you, our I everyone, be Thank sorry obviously, if to better, welcome line. call Yes. conference and it for that. for Thank the

our second We of solid are delivered XXXX. that report quarter pleased in the worldwide results teams to very

have outlook by at constant goals. rates double-digit making We with sales guidance, portfolio. strong our again our our towards our growth solid X In of exceeded driven non-COVID pillars growth our exchange from progress line are XXXX

we macro and landscape have to company change the challenges, of confidence new our our present While strategy. continues and still the robustness to in

proactive challenges. to very business tightening in chain supply onset up shoring withstand costs. and COVID, definitely prepare for has been supply have current company infrastructure the helped environment began us to This of teams the various those rising our of our against Our we manufacturing and constraints. At strengthening the

implementing We foresight see last as from alternative energy our give strong late with This will served well, also energy gas. delivery system sourcing in us results. flexibility you of year now continued from natural began at away very our This can German us has site. on

those during agile times. key me today. get our operationally and to changing to commercially remain for now to able been And have We allow messages

outlook Adjusted period same for XXXX of $X.XX. sales share $X.XX non-COVID growth decreased our First, X% adjusted solutions at driven result least XX% sales to CER and in XXXX. the in the the was outlook growth in COVID-XX-related diluted QX at quarter net XX% CER above Net XXXX time, the as quarter. compared we of products. second million per earnings This for by quarter same were CER sales by At second for the a decline for mentioned, CER, XXXX. the set EPS sales of for to exceeded over grew same $XXX

Second message. key

our in our on successfully portfolios, especially growth. pillars X Our teams execute to continue to of goals our advance

have launched in the QIAstat upgrade and labs to such broaden for testing We menus. the diagnostic rise high-volume instrument continue syndromic as

assay. NeuMoDx added HSV the have We Quant

bases, installed a future consumables continue asset for Our also key to grow.

placements As placements. have QIAcuity and has QIAsymphony cumulative an reached digital now passed example, over over X,XXX X,XXX PCR system

our at are on XXXX track billion a least we have target as outlook the are very the the And of perfectly year first to we XXXX. now pillars macro environment the increased performance sales year full reaffirmation result have last for CER we We growth on With maintaining of a the conservative account of taking the growth adjusted full of and expecting achieve for portfolio. All are half. expect in sales message goal least XXXX we X today, $X.X COVID-XX coming of full for testing double-digit the our of demand for set year for our CER. with at into year. the view $X.XX for non-COVID the And for now EPS, our outlook, from this as challenging

testing we growth. in COVID but any case future, sustainable to are on outbreaks to in executing As on core we be continue always, our our of the to for foundation support focused business ready strengthen

and on of to growth. a X we cornerstone our focus be how strategy pillars Our balance of to continues operate, particularly

for provide the details now the on financial And more would outlook will like to over later call. hand We to update. this in I Roland Roland?

our joining upgraded results and for you Hello, everyone, call for the outlook to the and for 'XX. second quarter Thierry. you, review Thank this thank

you through Let detail. begin our walking sales by and the results more me in

our at exchange This outlook quarter, second second ahead USD the well remember represented genomic had the again, million million. constant was, of Also technology grew USD over rates. called sales. the sales for the in The set key XX% performance 'XX. was For which of of past product driver CER XX USD million quarter were XXX sale we at in out least XXX in non-COVID we a that XX% and of total groups, better-than-expected

U.S. this testing significantly 'XX. better non-COVID sales CER. in COVID and dropped quarter declined the up while period was CER quarter factor, the our of second actual from Sales used dollar of against 'XX. And currencies. to At in expectations, same XX% over other testing above X% this XX% the second across was points products currency Excluding regions. were in euro the declined X This than the in of due volumes rates, headwinds many sales

For same over quarter, period in related consumables second CER the X% the 'XX. declined and revenues

sales were COVID CER, X% instrument Although tough to was this very demand. down testing due against a comparison

still in are seeing We good placement key systems. trends

sales about among In is product with terms sales. start Sample This of the of groups, let's X X/X total technologies.

X% the last a total the call, case course second technology and of market As sales representing sample XX% nearly the expect more in in favorable was it 'XX the performance up solid This we non-COVID with a sales. strong half the we on the said 'XX. was quarter That during non-COVID leadership. trends quarterly reflects first of for CER sales, of

of total in or 'XX. product to second X% testing which in region. driver rates in sales decline tuberculosis. quarter group the the an EMEA test X% Americas the second double-digit CER demand this on created The represents and second XX% saw QuantiFERON of at exchange Sales gains for Diagnostic quarter. and due was reduced quarter X% the constant COVID significant Solutions compared key However, were about up to overall the by Sales headwinds

total trends than quarter remained first in of million The product and PCR track we exchange with the to full half represents the we for year XXX XX% at that our sales well growth on results the track sales. QIAstat-Dx rates, testing clearly sales about largely which for USD on unchanged are full 'XX. for with PCR/Nucleic constant of million year the exceed systems, year of In USD NeuMoDx CER. pleased amplification and second were Given clinical more were or double-digit were overall the XXX expectations, group our particularly from QIAstat-Dx. CER consumables acid These goal

the delivered sales QIAcuity gains placements increase consumable driven This CER in growth an with by testing strong non-COVID product groups. includes in double-digit pull-through. and Our digital instrument PCR teams solid

million a sales BLIRT the of in to sales for sales decline about 'XX constant XX% in group, XX% product provided at about acquisition exchange the May of $X Genomics/NGS total The quarter. which represents second Additionally, rates. onetime

quarter. earlier, solid CER in to comparison you for demand NGS the CER. 'XX's growth solutions. noted at in X% technology exclude up thanks a sales we were results As sales single-digit the group these product this to shares universal group Non-COVID due difficult this faced rate, factor, When a genomic product

Insights see basis. in this We saw also the with business, this slowdown given larger as low rate. sales a in quarterly Digital sales swings business QIAGEN bioinformatics an that on have declining We a CER outlier at single-digit a can trends

delivered Moving X local reduced line for this second of for the demand 'XX. Americas the regions impact region our rates solid second in Japan It the sales expectations the lockdowns. the of sales. in best China COVID with quarter. China region, Growth COVID-testing life of this CER product COVID customers the our the CER science came was Pacific, down regions for demand sales driver and sales was low-single-digit among in the market. unchanged non-COVID in The growth performance offset at by sales supported was made was testing largely in more overall rate. also with demand QuantiFERON-TB. light in groups, growing geographic came of testing. the quarter components of felt This by The than drop-off from with at from regional X% for constant but with non-COVID on in to breakdown exchange Asia All

Europe, the CER East, for trends. sharp the double-digit CER in region, Spain Middle first XX% saw testing down COVID the sales product double-digit that a maintained trend In drop-off Africa groups. due the headwind, for Germany, and the quarter. from we However, Netherlands growth quarter CER were to the growth non-COVID Despite

statement. XX.X% Moving income mainly income of down contributions. to declined lower due operating the the sales sales, to The margin adjusted

about sales It reflected adjusted the Turning secondary to R&D product with QIAstat-Dx sales quarter. capacity, to also to rose NeuMoDx. to in in margin. income the the X.X% and of in our cost year period. points especially initiatives additional includes from X.X adjusted margin suppliers. the of inventory for to second percentage and second This supply gross operating declined of the X.X% investments increase quarter XX.X% The production secure components ago the chain

our to the R&D second We rising are in the growth. also the taking of X marketing pace expenses above were to expenses these least higher were of mainly for XX% sales about EPS Adjusted to 'XX, of and percentage percentage pillars the for rate the opportunity sales rates the Result XX% exchange of of again, quarter X the investment we investments Sales constant And the point in points of administrative The was into X.X majority XX.X% $X.XX to the of general in was for are adjusted 'XX seeking the currency XX% to and about quarter the last rose increase second a for customers from to outlook investments as dedicated above freight strong pass costs, This about outlook pillars rates with to expect due sales at and $X.XX. the cybersecurity. due quarter. for in well rate point, same due surcharges. at systems in X on we activities headwinds. above marketing actual higher a into tax well full the and and to to as of to as This X.X% IT the period year. are growth was $X.XX continue and quarter, was 'XX. and which

solid the in cash the to to USD USD USD 'XX. X.X% in first was to X.X% 'XX. for XX purchases the increased faster driven of The both from of half Free XXX first flow terms for over in sales of 'XX higher of important rose that at fell trends investments or million XXX and was half quarter half of PPE first of million net higher XX million, by of of first cash and the sales to adjustments the USD also sales in compared the first property, and in This million ago factor cash continuing completion equipment even flow income capacity. lower saw to year cash second year free Operating the plant or growth half operating XX% We period. Turning production the items. of noncash to year of led the XX% flow. flow. the of 'XX in key with half expand

unchanged 'XX. net In XX, debt XXX terms million has December at due million XX, XXX compared This USD to and short-term at sheet, debt cash, at second to X.Xx June to end equivalents ratio higher adjusted of levels the consolidated decreased total USD is The cash investments at our third the EBITDA. of stood 'XX quarter balance of quarter. the paid leverage from net

foundation to capital flow deployment a solid cash Our healthy provides policy. continue and position us our strong disciplined with cash

-- to quarter second the with would in the like saw second now Thierry. acquisition back You the I quarter to BLIRT. hand with

X,XXX market The used analysis instrument. for QIAsphere app, RNA automation of both builds progress now being allows key second preparation QIAxcel like to and which would updated NGS portfolio, launched upgrade EZX, already of portfolios. of PCR system connectivity. Roland, points Connect and few to technology on the instruments. you part quality real-time In instruments to in on remote new workflows. and all first, in system higher QIAxcel a was Connect our connects we launch After you, of program Sample QIAxcel our this of Much over This in new is offers sensitivity a the share with and QIAGEN the the level it QIAcube the the the Thank system all like monitoring their the quarter. sample and ongoing DNA automated in

Solutions, and means why removed The loading platform unloading is flexibility such the addition to automatic the let be individually. Diagnostic market, and to on great in already the to processing. QIAstat-Dx tell used is with and preparation X only Rise we is this of our portfolio. mentioned Rise. analytical It But and offering Second, a system allow you the modules samples. only me the hands-off the sample employs modules That QIAstat-Dx

in testing. So this industry high-volume unique the syndromic something is truly for

have panels. CE-IVD we a a and X of As key gastrointestinal QIAstat, reminder, respiratory, test offering solid on meningitis

at panel of In FDA in the we respiratory The respiratory offer XXXX. time ongoing the to for was end the place. the submitted Discussions the panel terms of U.S., on with remain menu GI the agency. and

it will NeuMoDx. on HSV for This year. At call, for to tests come the However, the platforms the testing. menus it lab approval beginning the XX mentioned quantification core broadest NeuMoDx the the brings probable of making of after the CE-IVD is end the CE-IVD of menu Europe, I assay on in one new

the to reminder, but PCR with expansion only amplification onto not sector. the a U.S. As and milestone crossed PCR into In continue in we another CE-IVD important QX, placement research in test acid and strong very the development nucleic menu also Digital in invest to transfer years. coming had biopharma QIAcuity it

This of sector you is kits the and one As NGS, released been over our new for comparable to allow be commercial significant other digital than is and and since To X Insight have million more seen to bioinformatics gene we therapy and customer you that just any ahead gauge has this the Clinical genomics the PCR. segments quantification of recently, largest QIAcuity platform QIAGEN XX have used analysis in In development offerings. give assays of schedule for this cell used of now a success, manufacturing currently drugs. report analyze is and Xx and biopharma probably cases.

lower all This of next-generation or in of stage hand of years once We are growth. QuantiFERON, such sets platform back key Techs a X data in market. ago, enabling make continue expansion of defined our and relevant the is strengthening now me chemistry Sample our few a the as expanding of universal to again, believe of technology Those Roland? on over that this leadership just strategy for only are on And but pillars goals our rapidly Roland. market. the Not let QIAGEN management. also areas growing our strategy We built are our agnostic to a is a to market it our faster it portfolio. in player on platform be is teams examples advance Digital address and progress to introduction to X new with consumables sequencing that placed next-generation because very well in number very sequencing, this a cost sequencing and winning Insights

gentlemen, the apologize and pause music for Ladies we be in We'll Please until hearing the the presentation. remain resume. online. presentation

third and again, provide to the outlook Thierry, for year perspective the would also 'XX you, quarter. Thank some upgraded the on and like I for technology. full additional

USD billion. reach USD outlook full year billion is exchange increase at constant our We for now prior have outlook at the prior at an year least This increased X.X to for rates. sales -- X.X least

our reestimation performance of the X double-digit growth first We affirming groups in the the pillars non-COVID This for includes are of our target of growth. half in product after CER a the for XX% the expectations year. CER

We view COVID are also demand. on maintaining our testing conservative

from decline reflects and the current significant a our 'XX this We COVID sales continue the outlook The to million COVID new expect level generated sales macroeconomic updated also a CER In and the full views of in of amount year. USD inflation on XXX at 'XX, million. of of we first sales XXX half for the already expected is the USD trends.

are mentioned, point, used our terms August. covered is in of impact our and while needs. needs gas mitigate as for Thierry On the to it don't to energy by buildings, sources our we production. As we are to of supply in natural energy going taking another need be chains natural actions Germany heat that And gas

has about Ukraine consideration in had Our sales after of business X% the invasion outlook Belarus. year Ukraine. impact already from into of the taken Russia, of Russia the We suspended our full coming and

in of our prior step marketing. least $X.XX plans compared now takes consideration adjusted terms least terms for expenses into of pillars and at In to into and as up our profitability, $X.XX at we CER. to EPS X at of investments the This outlook expect of R&D CER growth sales

about by are the increases and The view in in as 'XX, 'XX. prices to against and rising sales time, now business, increasingly have $X.XX considered share an implemented to we per year $X.XX the our the exchange expected are on EPS create impacted progress of about inflationary net costs dollar. is expenses with against product percentage on operating We July same July Based on basis. points currency continue 'XX. our the of full for disciplined trends rates movements adjusted adverse also however, country-by-country due that impact on a dollar U.S. At X movements currency adverse to also for have on

the and adjusted to $X.XX reach at For have This adjusted both third least least XXX sales for sales EPS floor CER. a at at million we EPS. net calls for of diluted set and USD quarter, CER

hand the difficult to would Thierry. an about means third We to about $X.XX of headwinds in $X.XX EPS. points currency This expect percentage adverse now I adjusted to on X also quarter. on sales and back impact like

with Roland. quick you, me with session, leave obviously, we Thank provide you let and takeaway you summary some, the And a to Q&A before go key messages.

COVID-related that key And in better expected a non-COVID and the of course, to driven compared the we First, is strong the foremost, period. what of message. But than groups. our very product is outlook did in same exceeded this we a where focus quarter experiencing is company very drop This while QX product first still the our year demand by from performance keep is. ago

Second, of a to sales point, increased execute and menu And drivers with as our very for EPS we a portfolio launch strong XXXX instrument perfectly after growth year. last half our in teams the advancing continue plan. on and have the of outlook on upgrades our our expansion first

from and is from We are differentiated of portfolio value portfolio have XXXX. in determined COVID non-COVID greater delivering a create demand goals significant growth set year, testing growth our the of a commitment and on potential. QIAGEN truly to strength XXXX, a half this we view second conservative double-digit position with of continue the take moving on for reaffirming our in for for we to ahead

company focused us of ensure our and changing after are and working dynamic microenvironment. on we quarter stay a teams quarter, the in our to strength As executing

in our world. balance on as to regions like the pillars by and of lot Q&A leverage focus X attention. customers to and that, for hand And and your balance, the back you. of Thank diagnostics among well various and science John With operator thanks for opportunities as anchored a the and session. I'd the attractive life to market among molecular growth continue We strategy focus our

[Operator Instructions].

comes question Daniel first BHF. The of ODDO from Wendorff

important the you continuous key of to QX bit and the increased a just dynamics we during And QX. -- continuous are what catch-up I'd a so a Maybe Or can increase is in general here understand better talk basis there seen spending. related R&D effects non-COVID installed far is have the like to how trend about a pandemic sales, driver?

to better dynamics So I understand like really the here.

Daniel. Thanks,

part different combination I of think my factors. answer it's of a the main is here basically

from seen parts are a are tailwinds First purely our Those extension because and today or increase COVID systems, for that we example, all, the and that increase those many of is to and menu for NeuMoDx know been meningitis available the have for of menu you This they complementing QIAstat QIAstat beyond XX -- run the increase NeuMoDx menu very assay have benefiting year, therefore, will for portfolio you with new they play. recently, in to respiratory good just why platforms, in growth. laboratory launch Europe. potential installed seen a COVID were therefore, test. to in after on highlighted be is a being. of also the assays And placement, that highlighted the always GI but continue not of we This their to a why assays limited year of obviously we XX Europe already have

And so the obviously favoring is movement first of this the growth.

Those going but in remember, around to strong generate some COVID in we also you had now quarter of systems, QX. a of placement them, are non-COVID for if of the obviously, menu also Second, menu. also consumption

benefit there some we And would now in But invested COVID. fully receive, impacted, return we to best last normal from the or Digital are at the laboratory Third, since we launched same. pre-pandemic a installed never that of level. or migration is of COVID half best been for COVID little that COVID. system, of of would science height for are that portfolio specific obviously, by with PCR level normal back had a we launch creating not wastewater part of investment all QIAcuity. And said remember, year a potential, in and was labs. in very clearly and are our activities the we normal application to COVID Obviously, that took obviously, not base that the the COVID has play advantage testing. to impacted is example quasi at The at consumption menu is of QuantiFERON the you QuantiFERON on obviously, I to is QuantiFERON well international blank think why with department. XXXX. because is if we in quasi here for life this the always back But on QuantiFERON, are back went consumption then, their growth. recover when I to say and the

XX% those coming promising also is back we So by increased and companies of basically oncology, to fully more probably to effect this double of pre-pandemic I growth, and invest PCR XXXX, normal and were in the could extend level closer development companion as have said in pre-pandemic activity new you solution now that demand have level most oncology. but laboratories the the of our into level the why mean, In And laboratories to normal installed level well. technologies back with in to see started to are contract or in that our other thanks we digital diagnostics, NGS pharma to PCR again also activities, I obviously, pandemic. generated you base,

Daniel? answer So trend is a question, factors, confirming those different your of also Does of it's non-COVID. it this basically, combination that good

question next Dan our take We Brennan of Cowen. from

you. you are We there? don't Dan, hear

Okay. to on move let's person. the Operator, next

We move Donnelly with next to the Patrick Citi. question,

okay? me, hear guys you Can Great.

well. Very

you with on if COVID seeing really touched looked performance QIAcuity. PCR, out even just about It just side. base on base you Maybe like on back you focusing strong talk PCR PCR was and the digital start then there? the you're what and digital PCR obviously, Maybe PCR. Good. Okay. Can

PCR performance in but quick the biopharma a just the have base into digital follow-up. I And PCR then maybe getting quarter? then bit, well, You're and a as

the we mean what Yes. in consumption. I those also our is and launched at I the because go launch Thank of are proposed than increased in an are be and the to into installed, application. why very you PCR we system you important And our are years launch here, difficult to solution reach market, answers mean, years let's that may, we to more proves clear you, -- the environment QIAGEN. systems development soon very still, once solution needs this for mean, infant in well. X.X in to us Patrick. the been consumption Obviously, PCR. the digital plan, that executing more going is after we in fact X.X But of has market biopharma by that And the obviously, routine quality -- so I X,XXX play as as if to first, is possible it's this time now more digital of is for one the laboratories offer extremely active our most basically all.

for and important for digital to an test an the choose that decision -- COVID. for It's very important have technology, win wastewater that and U.S. this it's worth in see digital both also you nice so this installed time, well. And increase therefore, on to for the seen why saying win to is as QIAGEN the of we same base testing by nice increase PCR related consumption. PCR, CDC when the At important

back what is investment point in application. comeback seeing obviously at in decline I PCR, this but is research, showing sales, back on sharp more go is but this that their application. the that and a there are more non-COVID coming more into this the consumption many see application would at And to say, be On digit. again This clinical basically are we pre-COVID double back this we what is growing are classical, the we than said And normal for once where they of also a COVID double labs is non-COVID And always say, would a academia, digits in situation. are will pattern moment. very what, of explaining what growth our substantially into, and let's

next from our take We Dan Brennan Cowen. of question

Thanks. hear me? Can you Great.

Yes.

Great.

Sorry about that.

some So And impacts anything of look revised have in wondering 'XX kind in is we you we it And for prepared still ex-COVID Thierry, or impacts. about about in double-digit in year? the up given potential you to seeing if I'm well. think do assumed macro potentially your held ahead risks? the last know, portfolio? impact some recession you this durability with I just not, terms seeing of of I 'XX the your Or guide, or talked reasonable when growth, remarks how guess, guys 'XX, exceptionally

both full Well, the trend Roland his of the Ukraine also I we that -- in appreciate We situation I year tension. geopolitical obviously, completely visible the both and the current factoring in the is some forecast war will I, to and can presentation and opinion. forecast Roland think said take the today this XXXX, with give for us

on we January a pricing price This and do power, So very, have all Ukraine, December it passing year. are this to environment as things, regarding current factored. Russia we company communicated, have we granular tensions and increase. with regarding the completely inflation, normal year very in decided, year, every for the really Russia, on in suspended factored. QIAGEN is on chains our trends is environment every supply example, inflationary trends twice. in given therefore, Current a and do we of are completely also operation we We X specific normally But and insist it

the also in very a passing July. December would to by need be in June January. clear. factored already, next which next the And be way, are Obviously, increase and we forecast. second This our we the are So preparing price we and for is wave,

or purely increase. already customers CPI have We with cost some contracted basically contract fixed annual that have

customers, of increase this and entirety, portfolio. covers pricing. obviously, year passing price revenues second we when So or But the of we the any accepted never time it's by a the can are the

as Why? demand chain constraints. Because chain of we -- were we and prepared Dan, plastic material QIAGEN, not constraint. are started have supply the in were supply, We if slightly world for constraints more they than remember, the the improvement we But for in those years already perhaps under of because we ago, of raw when testing, explained any our us, COVID X factored supply. you industry supply in today, huge particularly have the rest

our to work chain. we already X So coming supply are of years with hard strengthen

there think is obviously navigate immune QIAGEN always I the obvious care measures this in I choppy no for economic basically a, environment believe mean? the So and to to overall, volatility. more world, believe, completely optimal reason. protected let's taken macro way. is say, has industrial in is factors what company does no health to sector, proactive I it which

what magic I going the don't second part pressure XXXX. of next question, your example. is January and to preparing that chain disappear I'm which why what's I be to is by year. we January, This do price to happen. of going normal, that know. Now next don't X for as drastically working our for believe December will of I mean, mean know does inflationary will we already suddenly, know it everything we what to supply I are back increase, and improve. due if for goes saying, not even Dan, believe

this the we take time we to to going XXXX. are to budget account calendar, of on we next at So plan our In year need this work for year. when the Dan, start into also

actively can working are currently you we What know. on XXXX. you tell already probably what is I So

is time, the with We At X, exception going when same as If extra we we X model. on We volatile. said we confirm Sample that our have to it said COVID a our not want are tech, as COVID. early our P&L do on what by December pillars of see to volatility. as continues, not assumptions XXXX, impacted it the we that bonus take of we what of in profile. confirm low The to probably mid-single-digit -- next And growth tech, to growth been plus of different, our where we have we exception with during leadership that obviously, the level, a Sample portfolio believe we that we COVID add all our growth and solution year. a profile. crisis, had double-digit potential that, have to for confirm being able

our take question next of We Deutsche Friedrichs from Bank. Falko

My bit elaborate for question the little Sample digits. reasons in be you to Could performance is business strong QX. actually the the the Sample on non-core tech business. in high on a seems profit single Within very

this growth what mentioned forward you just higher business? this driving over was for going your is So what ambition

we testing. we Thank And because basically little in tech RNA keep numbers which of to we come consumption back by Sample commercial for commercial the always testing, pre-COVID part very the years the testing. would of And growth, Sample of when portfolio. us you, DNA is tech X translation to Around DNA QIAGEN. think limited granular back and little, real the see Falko. deployment And is market, been of the they we attention COVID portfolio on tech the would and of recede, strategy. explaining said XX% I rather a obviously Sample our pay coming is labs a the brand of for also, leading our the of last QIAGEN our for the which of leading what behind that solution portfolio one part since Obviously, pillars has it's that COVID of was

basically systematically are bring base make we back basically a all normal our consumption. sure we can visiting that to installed to of level So them

QIAxcel. launched have as as This today, we we ago, X Remember, Let's years launching range always not also year, -- upgraded we EZX. well we a automation, version coming continuously there QIAsymphony. said year the again. once going to new QIAcube forget our that are Falko, in starting we be now, we years, will of launched of X Connect. said And we are that Last

with to of us is our Sample throughput also customers also higher with better non-COVID. consumption, pushing is this So move obviously, tech and also together helping this system, connected,

question to move We next JPMorgan. the Woodring from of Casey

to go regionally. business through Just wanted the

talk was Europe? seems in COVID of the that strength in was So countries versus towards results drove there. you're business I wondering you then, between It And what How mixed seeing can much there? base China? like were what

something slowdown headwinds U.K. customers pulling on? simply going countries? noise Horizon see any academic around the between to then that academic EU the there And you to Or So related from some specifically else due side, region's on the is the COVID did was funding.

So first on China. to

come deliver usual You remember early more than commercial more product we measures if, potential regarding with shipping we when even very and on proactive And to as become we partners basically explained we therefore, we QX as QX, to of China saw communicated first would China our part in obviously, the results, took decided the it supply lockdown. so after that difficult. could they that

not by you China. because driven have X COVID remember in #X. So we It's activities that's

on QIAGEN and COVID, products China or also have why? QIAGEN we Because product a China second the in from product, purely COVID brand. is classical no benefiting in foreign have accepted is registered We are The not in China.

solution non-COVID. So in fully the our growth QIAGEN is classical

Of described, brand, course, second as locally. with is a purely manufactured our product Roland which,

We of there for is also a COVID. benefit also surge demand anytime

that's China. So for

the yourself, pictures situation very countries. Europe, a simply it's between For said diversified you of as

that Europe know a is You Mosaic.

Switzerland United So Germany, the our growth a CER research sales you labs. see early France, investment or for Kingdom into academia United see, Netherlands, too far example, let's decline Kingdom. when still had, in Spain to for and slower is QX. in double-digit and the We we trend us say, in

we contrary, center the of allocated the research still is that to On budget national still healthy. believe the

just it's trend. say sequentially think Europe, a too shows conclude. I if a it's early I quarter. rather It's pictures. to X to say quarter things every X diversified would

part of demand demands perfect go started the COVID case and to Europe and interesting, instrument, NeuMoDx play. for half obviously very either QX, as Roland is menu for be what is but COVID of on of to still consumption COVID, in has said countries, portfolio. a obviously non-COVID this some Europe, see decreased COVID obviously, installed of in very very we which in encouraging there our on second are by is in The goes the example, First our the on translation exactly let's of QIAGEN also is clear, the has in strong impacted which obviously assays because Europe, drive with much benefit not of our ratio favor testing. this And of is want we And to already most a QX. also is non-COVID despite But also in that, strong where portfolio PCR it's all, his play, antigen It's COVID. but to where base. between strategy

We take our from Solvet question Paribas. Hugo with BNP next

which the growth Can is starting you business? non-COVID slowdown, seeing the of see mostly in data the or you maybe pull-through sequential Are the that any Life that with dynamics which supply be Or moment? of funding I could regional in client point have environment or remind if us by of you you the parts what weakening you on On single-digit Thierry, the at the product differences spreading on dynamics on NeuMoDx any press or here some And contained the come impacted we is And it through? maybe a to and on business, COVID aware should tests? Science other for issue business the getting supply better? us to. few to chain of? non-COVID mentioned biotech release, weak you chain, alluded share and

Hugo. So thanks,

for said control. chain, And the we think I the say that I'm On have I Which on pure back X are such supply manage. overall, can a we electronic is led to for are better are to we again, some are also wouldn't years. There doesn't labeling materials. last raw as, but while believe it some, There prepared for It company are create But but immune the completely I companies, components mix we products. going for that hard example, the boards. are It's basically, back of that under It's because that parts products papers protected, are pure affected? different than we that no example, stress of instruments, that our most we we in are some in specific order. tension, orders working for allocation. the

are We working on that.

order. what's on something the to But the nothing situation. sure they are level the perhaps field situation, our customers supply knowing to him is also sorry. want than more Roland, communication granularity significantly chain also and have increased to you of make in customers situation the that not add informed We the people fully of There I'm and also the of our solution

Yes.

now I logistic as there's honest, us do comes think because but know, I months obviously had last mainly is XX to we this don't all inventories because, volatility clearly, over actually well the COVID, any for because difficult, think China. mention, by to hiccups But of day think all be the I we were impacted, ramping particular facing product prepared of in if significantly. around you out we also shipping things it up think with were are quite we specific we

You it sheet. balance also can our see in

so which larger affecting think do I issues quite an served becoming inventory QIAGEN were less us this to far levels so issue have never far. well So having that more customers or this temporary

Thanks, Roland. question, the part your of to second And Hugo.

that So in first, can we the you life stronger indeed, situation bit at is we Yes, the moment wanted understand for a non-COVID the science? trends something U.S. basically see that to highlight? And

and QX, a I remember As QX shared you bit rather Europe, favorably was in more especially with were progressing at academia, of as QX. we evolved in you, into end has if soft the

back. coming U.S. bit It's still it's the but softer than it's in So a back. coming

encouraging. it's So

a in drop still research rather healthy. on at happening see activities. interest us for And is public a activities of decreasing funding Let's see we especially least what biotechs or on is impact summer, don't real our public obviously, academia with the for We clearly, believe for funding so-called collaboration, level moment, that basically our of We don't the with the in and see research starting companies. biotech some for Europe. at

ratio is COVID by -- I'm happy lower on the as you just see I for the NeuMoDx the U.S., driven the we in the XXXX leave menu, the even say disclosed U.S. Europe. fair the to in numbers. probably have consumption because on it don't It COVID menu we was that Europe to is NeuMoDx were depends more the of the on XX% of the of Europe, the that XX%. one where NeuMoDx always at you for would in to country. which we know, results in XX% The XX% have to months that menu menu to that for than between total QX have and previous market I with this in that because NeuMoDx, and consumption. For obviously,

the our now installed, is blood-borne to to see that, but transmitted that pick we system to this we is viruses or laboratories push are Obviously, So our continue need encouraging. sexually up starting diseases.

Matt from Sykes question with last our Sachs. take Goldman We

high-level maybe Thierry, for you. question a

a you're how growth putting calling margin fuel at can you strategy in in that. Just and of given growth about been digits time, you sustainable you've Or want into Just X that there trade-off? seen you to versus you've for necessary investment what protect thinking as want move are of pillars 'XX as the you trade-off into Do your non-COVID to X in growth, would that is feel terms love the double to the for same to balance 'XX? thoughts growth the of of spend get level margins. the we and your

see I a our think R&D say want have Roland Also, also gross some could as that the is potential of evolution, which aware margin chime pillars it trade-off, of it as explaining And that need this heavily as to invest optimize X recently, are of we we growth, see XX%. also I our is there. perfectly below don't the a want -- continue we in would in. explained, I we if -- management of I we to to to duty. Obviously, invest

As you around clearly explanation given have have that. an we seen,

how an that are question we a also that to that broad here. off, that a thinking and careful normalized a But it's company -- back the will potential point That's a to our of I'm operating investment to start it's XX% X I We management still continue necessarily gross Roland in have to portfolio. invest. pay forgetting definitely dimension of margin has but QIAGEN of believe margin, while when has not sure be will And this investments those our trade-off, we to priorities. very come for XX%. more part I'm those mode potential obviously, XX% close without a in for between still in situation

industry. that in margin margins as Matt, yes, would a QIAGEN, particular -- I agree premium clearly, in has premium overall operating we well, gross the

are I the to margins quite in QIAGEN. also there I would are also want think of we QIAGEN. between match delivering, non-COVID overall have side, both It's the quite years record we growth growth able a in do So would to say believe But more strong clearly balance is say, that less particular, rate important now track I to is the within I think we very sure to nicely. or we that on given X.X industry, again, particular in the

Okay. very With Thank like call I'd that, your for end much you the to here. participation.

to or Phoebe know, me. you reach As please out

have to questions topics, with or you. or If follow-up you any we'd them be discuss glad comments you. Thank

call. this joining, Ladies a you and and Thank day. concludes gentlemen, the pleasant conference Goodbye. for have