Qiagen (QGEN) 8 Feb 232022 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. I am Katie, your PGI call operator. Welcome, and thank you for joining QIAGEN's Q4 Full Year 2022 Earnings Conference Call Webcast. At this time, all participants are in a listen-only mode. Please be advised that this call is being recorded at QIAGEN's request and will be made available on their Internet site. be a will session. remarks prepared followed question-and-answer by The [Operator Instructions]

at I'd At Corporate your Relations ahead. like host, time, Communications Please John Investor of introduce Head to this go President, Gilardi, and QIAGEN. Vice

you, is Roland thank for note are, Sackers being Financial and Thierry Phoebe is our live Loh Thank the for our Chief The that And call you today and Chief this of joining archived welcome us you Please call at Katie www.qiagen.com. be Executive -- today. section Bernard, our joining speakers all Officer; also Officer. will -- Investors of webcast website IR and from the team. on our and

A have Today, with our Roland from on then the presentation performance some is and available session. release. section quarterly Thierry along with remarks website, we'll of our on details move first and IR the Q&A into the

this to with We slides the we during will conjunction in but slides you be not the the call, encourage showing discussion. review

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

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

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

to and presentation. prepared with measures most referring measures EPS. press comparable principles release financial diluted in to financial is measures accepted in refer the A the references All will also accounting to to of reconciliation available non-GAAP certain EPS our We the accordance be or GAAP. directly generally not GAAP

that, over turn call the Thierry. like With I'd to to now

joining And a welcome John. for us. everyone you all you, and Thank obviously big thank

to report of year are that outlook. performance the We solid quarter our again, fourth in exceeded a to XXXX close the pleased with the

QIAGEN new proactively agility execute Our volatile with doing environment. job and capabilities to successfully respond at are in a to developments in their to showing teams a great

As appointed the move a as before that very important we Board our of on, Advisory report point member the new has Bright QIAGEN. quarterly Scientific been a of including Rick news

a expert may know, immunologist, record. vaccine, As track an Rick significant public an is drugs who you many development, diagnostic of in American health with is and

team deep pleased are to of add We to expertise his our advisors.

Now, let me the go messages top today. through for

non-COVID exceeded groups. XX% the our fourth from First, fourth quarter adjusted and net groups. came Once in for for double-digit product again, in the the CER non-COVID and bit year year both was of sales for sales sales full both growth we EPS, the outlook full growth XXXX. driver and quarter XXXX our primary And for outlook product the

for for exceeded CER the While were COVID and for million as quarter sales sales period. for year million at both $XXX our the over expected the XXXX fourth declined at use product testing in sales. full outlook least and Net the fourth quarter $XXX

our the delivered group total of over and product non-COVID growth XX% represented fourth quarter CER XXXX Our XX% of sales.

CER. For billion. about result This with exceeded full for $X.XX $X.XX above net also of the XXXX, sales, outlook year for outlook our our we was at billion

and expected throughout declined performed COVID XX% significantly testing for the in Our finished used as well at CER Sales non-COVID $XXX business $XXX million growth million year compared the products of CER with XXXX. to in year XXXX.

$X.XX outlook CER. at $X.XX CER least were quarter for the fourth the for share per earnings Adjusted above

the results at headwinds. significant this adjusted also the share CER. saw about above later is rates. was actual by release as $X.XX For this outlook and EPS for currency at the cover $X.XX impacted And press per full XXXX, was in year Roland you CER the will

key second Our message.

goals key advance to on to executed teams in our XXXX Our Sample Insight portfolio.

their We all pleased respective goal. sales exceeded are pillars to five very of growth report that

Our platforms the Diagnostics, for set QIAcuity three goals and all achieved instrument placements. NeuMoDx we QIAstat new

trends We also Sample consumables saw and solid instruments demand for portfolio. Technology our in

I milestones QuantiFERON through Our and achievement later. walk the broke through grow target to continued franchise annual as you $XXX exceeded the XXXX on XXXX update sales an the million of of and later well. will

while million, high year $XXX business shareholder a rose As increase invest a XXXX allowing cash to highlight message, flow to to generate of continued strong investing third Those free part growth to takeaway the as a to ambitions very us flow into cash while flow, to for allocation XX% key XXXX capital increased our our XX% value. cash level the $XXX at results for million. strategy. disciplined over cash flow our Operating ability support

years, from acquisition sample really focusing sequencing. Adding portfolio. human as we and the primarily, Sample prep that A Qiagen most our the is on thanks forensics next-generation based are Verogen. our to human are growth profile. type deals prime that portfolio on for enhance very the with to example extremely in genomic Technologies is know of workflow that identification synergistic and are This analysis Verogen our we merger and acquisition creating you the identification for of recent complete has XX active last means been

continuing for to Lastly, we macroeconomic prudent have outlook the CER in our portfolio. trends, while XXXX a expect double-digit the growth to given non-COVID approach taken sales

at least and XXXX, exchange least at at we billion of for rates CER. of $X.XX constant $X.XX sales expect EPS adjusted For

We achieving in decline XXXX, the feel in significant planning also for to confident double-digit a for sales. group for Year COVID-XX CER the product growth while target continue our New non-COVID

on current impact of and recognize some parts volatility business. environment the the our it of also can We the have

this this in ongoing the volatility market, we while we recognize full in confident So for are year XXXX. the outlook

the ambitions. over growth instruments a teams our solid and portfolio, to on support world with again are Our a full-year pipeline goals ready knowledge to deliver great all our of customer

for review Roland a XXXX. the to over of our hand for performance to now like would financial I year

well thank today. as me and us Thierry. you for from Hello, joining Thank you, everyone

with outlook call. move the later me and the XXXX, our a the of Let start results to year and quarter on in full fourth review for the then

For the at decline the expected about XX% million fourth results year of percentage actual rates. a to actual quarter, currency ago sales headwinds over points. rates These the five were at period due US$XXX represented net

the year quarter, we growth In non-COVID up product groups fourth again period. saw CER sales better-than-expected the these in with over our XX% ago

double-digit were For CER the XXXX, with sales in and XX% year non-COVID for growth. outlook our full line CER up

sales rates. XX% down at for over fourth the full CER quarter expected, the group and XXXX from product COVID As also about year XX% the million actual declined they're $XXX from of to

XX% fourth environment. fourth COVID-XX over gaining the in This quarter period product CER. year-ago the of the showing rising X% revenues much related of sales are new the impact fell CER Instrument the stronger and shows of traction XXXX, the quarter sales. in were post-pandemic systems in Consumables decline in our

period. product fourth sales. terms Sample throughout rate in one-third the quarter continued four groups, start rose among sales product This our year-ago to This the sales single-digit at and let's represents contributes this trend Technologies. of In over product about group the CER XXXX sales the non-COVID high of of of growth in group and total with portfolio heart solid

million overall XXXX, full least represented rate majority This non-COVID target at large a mid-single-digit $XXX CER. sales and product a rose sales the CER of for results. result For group at in XXXX year at this exceeded

least of sales about and driver second Diagnostic this the Solutions These the This year all XX% QuantiFERON XXXX. year The is growth group our XXXX. and in represented product led to million full $XXX CER for the XX% CER one-third group supported for CER. quarter of exceeding in at key was sales the full goal at franchise. the regions rose our fourth teams in sales

cumulative billion since surpassing acquisition QuantiFERON in XXXX. in also our We milestone sales a of reached for XXXX $X

increasing in For system consumables QIAstat-Dx, see and usage More demand. the around came XXXX healthy QIAstat-Dx the non-COVID placements half demand world. we from growing continued sales to than of the for

year exceeded for the Full target at at $XX for least CER. sales million QIAstat-Dx

sales decline about two-thirds fact testing. the from reflected the COVID-XX that NeuMoDx, For for sales came in of XXXX

by the non-COVID quarterly CER $XX However, to NeuMoDx applications the sequential at sales XXXX. fourth quarter the in for growth from still of exceeded million at and third target least quarter driven XXXX

product was the product product to amplification non-COVID in acid COVID-XX group, represents which total than sales decline of PCR/Nucleic XX% significant a compared XX% the groups. CER group, about In more

QIAcuity PCR is included for in strong CER double-digit full the entry product year XXXX a $XX at and at grew digital is CER. quarter into million pace sales our and sales the this target fourth year group. over both as These for exceeded full the

that the was placement driver total placements key ongoing trends XXXX. the end over reached of at solid A X,XXX

saw in the biopharma We was launch customers. recent by new for supported of increase which also assets consumables,

of quarter of our NGS non-COVID use Insight the the were XXXX. sequencer. than In led XX% and more of was also higher performance product offering business of universal our product total QIAGEN any genomics/NGS sales the over terms in with fourth which group, the expansion This Digital bioinformatics for group, by represents

Looking most in due XXXX. a in for quarter lower regions a basis, at This the to the had also XXXX significant the regions sales fourth on all sales. year sales and of on in ago full three year basis COVID-XX period geographic decline over was

rates. sales non-COVID regions exchange at growth had three constant all However, trends solid

Americas, gains in sales terms rising Europe, non-COVID In non-COVID ago XX% over a year non-COVID of than sales in Kingdom. was in product and solid France, it and included region countries more U.S. XX% the over rose the product CER. led Spain Middle Africa East, quarter CER, In by the sales with group the fourth top-performing similar period United the the Germany, The group situation

non-COVID the during for is were XXXX. and rose big country year sales essentially the of our quarter was in product in In the X% over region fourth Sales was X% by XXXX year. given the Asia this achievement Pacific, teams, China in and also about in the the CER full up lockdown a Japan most that groups in CER

country big year. driven by rose [Technical of Okay. the and given teams, during the was is Difficulty] lockdown our in in Sales sales XXXX this most preparation a in sample was This essentially of that achievement by China

sales to kits the of first half in This of the environment. COVID related and preparation enzymes sample the was driven by year

as closely situation landscape the local the We market monitor continue evolves. to

XX.X% due investment decision rest compared XXXX. for The the on support like to full year XX.X% XXXX, mainly into margin the I in in was accelerate of focus income to business For the to XXXX. opportunities. sales further of growth was results statement, would our to the operating This adjusted income to of

components in gross production. adjusted from particular to of down XXXX QIAstat-Dx for have by production due of The the XX.X% At same and in in was margin improvements for developments XXXX. favorable capacity. XX.X% cartridge the improve trends included utilization utilization gross in margin the better we to sales opportunities XXXX time, slightly higher driving Turning margin to

new tests of we rose our and continue as XXXX. compared investments investments reaching R&D XXXX of XXXX, systems. X.X% into Sales XXXX, for in to rose in XX.X% in X.X% sales especially expenses our XX.X% during marketing sales, to from

the after the XXXX reflected of a trends. in during as the commercialization into The light results investment the activities, pandemic incremental well as five higher of pillars level sales of growth non-COVID strong slowdown

X.X% administration to in IT seeking our In infrastructure while about as slightly and expenses, terms investments gains of significant rose of general sales efficiency from into these are and these we X.X% making XXXX, cybersecurity.

CER the for and was Results $X.XX in was strong level above Adjusted at for XX% $X.XX to were currency at due at XXXX CER. rate least as The EPS headwinds. actual $X.XX XXXX. XXXX adjusted at tax same outlook for rates the the and

solid $XXX full rose a to XX% flow million to cash for expansion. cash pace year operating Free business flow XXXX, $XXX cash to the flow at XXXX XX% rose thanks faster million. to Turning over

a due a the higher purchases of of levels fell operating the higher was These X% sales of in reduction in and and of cash from property with after along period X.X% XXXX. XXXX. a plant equipment, in level XXXX of This combination in investments to to XXXX flow

$XXX at net debt at reflects In repaying maturity. our to at XXXX, the end of the million compared the total time solid sheet, end XXXX. $XXX flow million terms of trends, same consolidated balance of our the debt while This at at cash stood

at compared EBITDA leverage end to at the XXXX. a X.X our X.X times to end times the As of result, of debt ratio at net adjusted XXXX stood

of In terms we a take continue that has served us capital disciplined deployment, to well. approach

through repurchase are our investments We business using balance strengthen through increase M&A, returns and ways while also share healthy considering sheet targeted programs. our to to

of completed in acquisitions and further activities, Verogen BLIRT of M&A production we recently. acquisition involves two advance this human capabilities. of have to the develop This January bolt-on enzyme our of purchase XXXX year our capabilities to terms identification forensic and in the In

terms fit discipline We of prices. in continue focus acquisition opportunities a financial to review with keen on additional strategic and

repurchase share and progresses. We returns increase as the will programs review ways consider to through also options year these

now would hand to I back like Thierry. to

And teams XXXX with provide and the I now of like for our the Thank XXXX. you would progresses more some goals to on Roland. details you, in

First of Tech. let's Sample all, talk about

the seen, recently the forensics have specifically address laboratories the may Europe in accepting which molecular instrument launched registered to another you diagnostic launch areas the we release This instrumentation, easy-to-connect As version was easy-to-connect and in for expands This XXXX use diagnostic. upgrade of new research is released with and of mark. CE-IVD first line in customers. other

Even in This trends. signal light is pandemic, the of and the trends our good during to instrument during about future value consumable continued of the should we XXXX. positive portfolio a support placement very see

and surpassed family over EZX trends were cumulative among the platform. cumulative cumulative the placement end we our family placement an X,XXX flagship X,XXX over of while at As example, placement, placement. also XXXX, And system. milestone testing clinical seen new the EZX a strong QIAcuity with the QIAsymphony reached of XX,XXX The instrument reached

Talking, at as the RSV between XXXX. beyond influenza saw QIAstat-Dx, cumulative well SARS-CoV end good driven This really for the once and to by end for value the We need virus. year, we COVID. syndromic again the example, surpassed the as testing of the X,XXX about testing of at for placements distinguish shows respiratory of infections, demand

share use, NeuMoDx the where testing, to broadest see XX% especially platforms making tests. transitioning non-COVID of have one the lab leading active achieved we of About in after only result than placed CE-IVD with of of which XXX XX core already a competitor, market launch US. laboratories is the QIAGEN In cumulatively more the two years that of about we menus progress, been worldwide, also NeuMoDx. have of as outside

since X,XXX QIAcuity, instrument digital on consumables over biopharma market involves is solution PCR. a expansion focus our just in share strong two cumulative achieving a focus we system for growth, over on solid and This placements with research last base as launch. based years Our gains, are This future on very placements for customers. making

the As for to by end of of also preparing you we know, are submission to regulatory clinical XXXX the power customer. important QIAcuity bring

good business. exclude strategy of does also our around growth pillars five our seeing growth we fact are core in course, that the Of trends not our

Favorable worth as advancements are portfolios in those mentioning well.

eligible lung a Mirati Therapeutics. to our example, dozen For assays has of non-small program, with pharma new of identify to the for drug approved treatment companion portfolio has in for cancer diagnostic a that FDA-approved FDA adds cell the a than therascreen oncology from developed patients assay range more This QIAGEN with a partners.

are on in partnership with of diagnostic comes patients XXXX improving Parkinson in to In XXXX. we of example, this beyond oncology disease. diagnostics, advance diseases. for a companion the a start use at for we partnership, which a the diagnostic outcomes Together, with new development for companion heels for This business Helix, companion with with signed announced NeuronXX, of the of hereditary for expanding new want was

has more pharma currently companies. XX and biotech with reminder global than agreements As QIAGEN a master collaboration

medicine in digital from ranging technologies only and PCR and NGS PCR. QIAGEN to fact, company is probably offering precision In the solutions

In serving our NGS group, and offer platform-agnostic our product well. consumables and us is decision our to customers quite Genomics/NGS bioinformatics

Insights, For researchers relevant is launch new development. that business, for with in drug QIAGEN have sale example, allows our announced database a we select biopharma ATCC Digital which lines to bioinformatics to partnership a

Insight we at historically Digital ongoing QIAGEN capacity continue Universal NGS grown and bioinformatics generate Both their CER solid double-digit to rates. consumable growth. And the portfolio building have to

have portfolio growth also on in as our not strategy, our pillars to progress leverage working So five and our build execute see can our hard core to our but been expertise. you of teams only overall value

outlook. to Roland for back now, our XXXX And

Thierry. you, Thank

perspectives the provide also on XXXX for me first outlook more quarter. our for and Let

sales initiated We US$ outlook have at rates. for for billion full a least XXXX constant exchange year X.XX at

COVID-XX of for XXX we to same US$ million million. we US$ represented As to noted sales to XXXX product in expect about X.XX growth from are for groups planning earlier, At the time US$ million full XXX and in sales XXX these the level in the group CER non-COVID XXXX double-digit CER product the billion at US$ year decrease XXXX.

in that testing. various As XXXX, for a had reminder redeployed got from sales COVID-XX about XXX of groups product US$ million we

this for the So future. to forms consider a baseline

that double-digit we vectoring share consumables achieve target. that of particularly is will to the have resilient strength high CER help us Our a portfolio, with the

our in also the areas volatile short-term We portfolio, as OEM some a the involves some recognize and business. are our more world, China that such also of we areas facing environment. This of as such

are signs that any acceleration year. we foresee reimbursement science sales why we during seeing decreasing is environment more challenging is This that the However, a research usual. life not than is clinical the funding now

of initiated to includes constant EPS adjusted for outlook at about terms $X.XX an the exchange In be $X.XX from dilution acquisition. we the profitability, have This Verogen rates.

income our levels. adjusted above operating are the to initiatives We our drive pre-pandemic intensifying margin

expanding operational while also these set investing sales first rates. an business Our teams rate. we US$XXX continuous the supporting on have XXXX is expected for least outlook light are million constant environment. of for the to focusing our engagement exchange as exchange net in factors, $X.XX in also In current share, EPS improvements, and such at constant per Adjusted inflationary at at employees of our the quarter at be digital of customer least

half movements both adjusted basis. for of currently against rates against on US a adverse expectations these on the X, are currency Based at full-year least as exchange impact EPS movements expect second have trend neutral US of half. a year, in to the we February more net the and to on become diluted for the As using dollars dollar but currency first positive expected XXXX sales

percentage an about have EPS. to $X.XX adverse adjusted on headwinds currency expect we about quarter, impact two and on first sales the points For of

like to now hand Thierry. would back to I

me coming as our with let before messages key Q&A a you of move to we end our you, provide we Thank the quick are session. recap the call, Roland. of And into

year our by for for outlook non-COVID group sales, double-digit driven the both First, results CER exceeded quarter and of full product. the fourth the QIAGEN in XXXX gains

We strong delivered also outlook share earnings of and another per year exceeded adjusted for cash flow. our

excellent year Second, on pillars Insight Sample not our progress this made in of teams five only advancing our but growth. our to especially portfolio,

in their in sales, solid the and placement. five instrument exceeded terms targets of XXXX gains saw pillars All of

us continuing are we has allocation Third, policy that served many disciplined years. for our capital well

continue considering enable while We sheet have that business, create to investing healthy to greater and increase balance value. our a us will returns ways

for we of that in non-COVID the continues CER XXXX have a announced outlook for trend on an group And while XXXX view full from sales macro taking last, prudent trends. the current terms double-digit year, the

today clear we have to to determination. usual a again humility, continue determination our execute to but conveyed on you deliver with commitments and as our Obviously, with

So while market, volatility outlook for ongoing we full recognize our are the we confident in in year. the the

solid Our teams goals customer with a deliver are of XXXX pipeline ready to our full-year a instruments, support great a our growth ambitions. again portfolio, solid knowledge to on

and With a back that, I'd session. lot. to like hand operator to Thanks for the the John Q&A

this of question-and-answer Donnelly comes Ladies and will first Please Citi. [Operator from at Patrick we time the sir. question gentlemen, The you. session. Instructions] Thank begin go ahead,

question. in well. Hey, and guys. sure I'm taking can the you as jump for Thank Roland sure maybe one for you Thierry, I'm

sounds and the throughout some of near-term XXXX, that. the to sounds Obviously, some like a But the Just terms to it's low Obviously, comp piece talk headwinds. year from ramp the the you is dynamic then there. of just for explains the going in near-term just sounds China, you're it what XQ is like through through margins going It into then perspective the your can of be growth it in there? you point cadence for kind health it the dynamics, key and OEM the but progresses, improvement there? love market more some little the impact end growth these like year And side, navigating visibility comp of margin headwinds are right of would there? maybe a where want the as just drivers

in. said, as And obviously can Roland Patrick. chime Thanks, you

for Roland alluded both talking I, QX. of rationale guidance I all first QX, and behind think our to So the

one. of First financial environment. consider recognize look obviously, we and all, and That's and very number, economic proactively our

to know, as a QX COVID way there Second, where testing XXXX base extremely is was QX effect in significant compared strong. XXXX, the by you still QX XXXX,

third, sorry Second I'm -- and highlighted we two elements.

different all, Chinese is other prudent is many last enzymes because It's company disappearing. Chinese know testing. their of over constantly for factors. market for reasons, in a and years some at the with we particularly three market And have that around look take China, components. fueled components sales own we This by we the First the current COVID impacted

First, regions in affect recovery lockdown. of still obviously, COVID some

a as So, cautious. it's We than I for market, us take for we but an are and you important consider still look. better prudent China to think

our we and is the features. volatile which past, had surprising, business, Second, more saying volatile OEM This that a This the have nothing in QX. because OEM see a kept those is we surprise. business has nature always in not of

Over of Roland the we the of acceleration constant the see as year, rest business. highlighted, our

you as year, last because all, have starting of bits quarter-after-quarter, seen First QX, non-COVID. from the coming were of most

us decline. is of obviously, of to will itself help the COVID going also this The So the quarter. in rest impact

So be the going better. comp is to

for Second XX% said, pipeline vision instruments. clear also do vision a potential of portfolio. from on QX. forget a have instruments. coming of non-COVID as least, Therefore, Last some given we the we have number have is the of QX, consumption than not but More the under on as consumables the our not recurring what we of we bit

allows after quarter as us believe this that be will well, quarter. So there this to acceleration

the On of our we today, margin a we to alluded and around in the digital. that pocket gross efficiency that around also the presentation Roland investment I believe to margin, think continue EBIT have especially

optimal ratio Second made not as the especially, not pillars and achieved goods cost five part know, in of between of volumes. our that who portfolio is products, you very new have -- the have of

in improving to seen there. We need have really continue QIAstat XXXX. We well

something? we margin. gross improve we confident also can and both on those so, dimensions, And the EBIT the this two are is that to do want add margin Roland, why, you

well said. It's, No.

Stanley. from take you. our Thank We'll Morgan ahead. Noor Aisyah of go question Please next

question. but me, not not it's I hope the do only Hello? hear I

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week. what outright the stake Would towards you. bioinformatics the the news Could you [Technical means up some will business? be confirm Just talk capital, the that? of investment other around Difficulty] just it one priorities? last to be of you -- would aim sale Could Thank and you through sale free or

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that I our I question. alternative captured around you potentially the we considering I news, believe that hope So, that asked bioinformatics portfolio. for the were

clearly, it's So we just can about that what is, say today not bioinformatics.

part at portfolio, every For to offer better optimization alternative our better constantly of investment, we potential look of of growth, better on return portfolio. this

includes I in And market, market both needed where break bioinformatics, a clearly in or a well a Well, believe market code of the say QIAGEN also investments that diagnostic, leader. solutions to we hereditary. in is research, the of those value so that as if oncology but so a fully may bioinformatic significant where are

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go We'll to Manesiotis Odysseas Berenberg. next with

assume how Thanks And make to COVID-related us it more you lower to color to would compared it on expand and base Could will expect XXXX, your that of would NeuMoDx, higher then the XXXX, for a strong or growth mean level growth I weakness over sense make installed a despite instrument give terms sort more year to utilization? molecular a by to led be follow-up. there. my One Obviously, have of base normalize small expect QIAcuity? sense installed QIAstat on I to your for taking questions. installed some in Hi, placements, base. here. you particularly

Roland, we not management, have myself, changed this So here.

continue not a continue call of and QIAcuity reasons. for have for We ambition base. We take realistic market installed what includes obviously, to shares reason, to see we QIAstat, for the for no to different our and NeuMoDx growth that

a play. COVID of because a play. instruments, First it's it's play, a It's menu three not those all, menu for

So have the biopharma will in QIAcuity. installed we for help the application growth added It of XXXX. base

especially add new NeuMoDx, We continue in to registration for Europe.

to of expect are we to last new the in year, the hope the growth installed US It's have going year. this And well US – this We base. did ones Europe meningitis also going to in see I QIAstat, the we as in GI as registered help year.

help as well. So would that

What of coming that the pivot, or the are much to we said is is to two in one COVID a changes But the used probably for year favor of placement sales question more capital always market that. the will ratio in we your post years. on evolve that placement versus

to again, to once are We because where instruments we plan that used used are selling we sell on consumables.

So we as place are used instruments well. to

Last but from morning this heard our solution that QIAcuity, also XXXX. evolution to the have you not of least, platform clinical life of happen science expect digital we diagnostics to at end the

clinical digital because market new which market, for the platform. in a well as we oncology help would that is the open So

Bruin Derik We'll of take from with America. our next question De Bank

for my Thank Hi, good morning. you taking questions.

what net XXXX? expense? a is sort pipeline assumptions PCR So also income what's is trying percentage versus in assumptions and NGS think Just diagnostic just and that evolving. interest of was your fiscal in I'm of to business, technology question. XXXX? two, overall there on companion a about companion trying one housekeeping the the how Roland, XQ digital what sense the Your to on PCR? interest assumptions landscape interest And get is diagnostic for for expense your on

products were and And strategies switches those Thank coming some your sort on? your you. see of from of to that NGS starting delayed or back are tailwinds other you

you want first take of the do part to Roland, the question?

would net side additional development. Sure. would I think last say million XXXX – probably compared $XX depending Yes on the interest year happy to do on XXXX, flow and cash interest the I the the so. Yes, Hi, income also delta on interest somewhere an I and Derik. between probably to take

XXXX. probably two say interest on would Again, both from interest net of reported for I the that's and between the So XXXX terms also in results adjusted side. delta but the

remain on question. and for market. clear a obviously yes, we mean thanks are that I mean to I terms diagnostic we companion the the in In team, leader want

highlighted pharma of agreement First more of companies. leverage XX than today, as we all, network unique with a we

we So to our or it imagine time discussion. any interest constant you can with NGS, a be new that Illumina partnership with technology be and come it up thanks obviously, PCR, it triggers digital

our mostly based. So portfolio is far PCR

a clearly are leader. We

We diagnostics, numbers But we on approved, are of is but on that at a pharma of regulatory very not told a traction companion that with for are interesting line companion especially, years leader on to FDA. is companion base. of diagnostics And the only are companion what the perfectly NGS-based. obviously diagnostic PCR what ago deliver digital we last significant diagnostic we you years, see three numbers X.X

is also Helix look this our agreement diagnostics because to is up portfolio very confidence the us for maintain at which thing to you and if leadership with of important companion gives One us mostly pharma with it set a with of And now hereditary oncology disease. with diseases. is Helix this we We Parkinson's with company partnership started that solutions a interesting to for driven. offer implement very signed

We other have projects.

So solutions and leadership why digital this invest maintain NGS other in we PCR. And we want to is like it.

number the last is for million rate. constant $XX year on Derik combined And exchange

question next from with Sykes comes The Matt you. Thank Goldman Sachs.

upfront. two I my both got questions. off Thanks for quick on taking ones just

Technologies. Sample on First

for kind the non-COVID still could single-digits we in that the provide you -- see that we last growth you Is be at of more the there's that kind Sample help guidance I'm XXXX sure some Technologies of Tech? expecting year? trend high should on of there. Looking color COVID Could $XXX. Sample that on

thinking from XXXX. XX side the about of just going we on margins there? - the XX margin then pre-COVID be for EBIT then sort expanding forward and more Thanks. And on secondly Should

some the ask what have saying will margin you, been time. on confirm Thank for I Roland Matt. answer and And gross we to

obviously XXXX yes, and for numbers our part non-COVID, extremely proved have healthy Tech portfolio. the portfolio leadership relevance growth seen Sample because the numbers this of you the non-COVID of On

XXXX, deliver what have is back For what said Sample to this we the come early we year. basically have after digits mid-single December which between the overall expect portfolio was Tech year to of a we on as and around growth XXXX, we market to want

on EBIT Roland, gross or the on margin margin? the

Yes.

seen our nice areas improvements at on initiated as improvement add is overall Yes, which in we now the within as before some production to happy with the actually So we I XXXX here said expected line on on side margin have think QIAstat gross large-scale where least we Hilden. well that. of

on a Same in time seen again future clearly expected even very have increases is volume terms be We helpful. improvement NeuMoDx. over cartridge And for of nice will costs.

we number before, be business time, double-digit said NeuMoDx that the business same revenues expect non-COVID to a growth in good At on a which is in of do still COVID have XXXX clearly has clearly, the As where we side. we normalized. sequential

will XXXX environment. in probably that impact I So utilization overall helping and our then see us we production of beyond which say would in is an

we side. I on going topic think the other on where the see what on also we any to work inflationary has as clearly are is company

the knows I bit a think it are getting easier how now things looks like looks world, months. in right but in six that who it

So that clearly has an impact as well.

Brackmann go William Thank Andrew Blair. you. next to We'll with

maybe that should impact Thanks. Technologies just there. that, terms morning. business with the for taking these to for on the we Can I think you instrument the how the go And where of you just of in relatedly Sample you're state Thank about Good post just the give growth union automation stand us upgrades? then of Maybe question. to things upgrades guess utilization to back the automation what portfolio? on seeing just

question Thanks for Andrew. the

years, arrogant the QIAGEN most in is that I think that it's as not ambitious implementation. of program the a to you say last launched potentially updates our company have three has seen over

the time And seen QIAcube have the EZX an EZX. launched science we any QIAcuity version. version MDx Connect. after life version, becoming clinical You become and

the is five view has platform and their helped. in that because obviously, growth, potentially reviewing have start rolling average period and So, where my years it helping renewing they this customers

bioinformatics, come we those new any they platforms time with features around then of a be upgrade opening connection, Second, new business.

For better is for example, EZX example a for forensic. platform

We the So we open to system on QIAsymphony. want of flagship now our upgrade new focus segments.

to of come in We expect probably second the half this XXXX.

Tech, it's it's we to pillars of And in we for any to run, five but want key biological the of which invest us it's in a continue for our need of is also Sample to kind definitely and once is of why obviously instrumentation step growth. again one application -- both this leader that course in first clear remain if

from our with Falko Friedrichs We'll next Thank you. Bank. take Deutsche question

Hey good question. afternoon. my for taking Thanks

because any expect And fine whether the bit you a is the softness of for a I'm year larger you on asking week. perspective? is if my can from in lab environment funding more my And one then this So potential just is, that demand end? question in this Europe chains equipment sounded Thank you. everything cautious follow-up confirm

I the that his where for years myself, about the John, give Roland talked ambition. view. can again last is this realistic What Phoebe three could again question highlighting is say once Roland, we also So

guidance believe this for year. really we the we gave in you So

is is coming One of I impact of time. placement sale than said the clearly the will and on market more this of instruments two see pure an COVID for probably the evolution years, that we capital the

But to do used are we that.

execute on contracts. sure we consumables and You basically volume that based customers see need on the we we make with those of to contract

We are that. do used to

at if Roland the main Germany, as wise research, will the signal the decreased. any budget comments, the be their see UK, US, his France, Funding system world said we in in look that care own we for health don't

to continue for the X% increase US. CDC budget a plan We in the NIS for of or example

is So our numbers. this factored in

challenging reimbursement than said Roland seen factor any as something decision not are as And also forecast. we himself reimbursements well, in we have our usual. And that more

we guidance we what we is and There can difficult but our in this portfolio. our So be this say humble, at a in believe I cautious. stage, want is to environment, believe

John take you. We'll our from question Thank UBS. Sourbeer with next

bioinformatics frame just that revenue just question. Thanks could a would you two-parted. revenue on growth, but double-digit Hi. for where perspective? you appreciate business? that I see Actually you One, the number from the a taking provide

five across pillars and provided year, Thanks. guidance why? the And XXXX of the the you upside then do when one has of think guidance your growth which second, you those and look versus this you most potential in

execute pillars five the I QIAstat, COVID the namely NeuMoDx, think those numbers. to in going some on of first, to in say, a we like especially their where So XXXX five I'd context what pillars, tell you, base let's first have Sample Tech

execute on what So let's have. we

said that is quite last But you I QIAcuity, the to significant. exceptional years, really for an PCR. think with for compared two as XXXX the we have seen digital have solution we growth as

execute on let's that. So

for has which For immediate bioinformatics, the market. achieved clearly I'm pleased us as around year in three the one number XXXX, number as big to makes five that as our two times market. the is number as the big in $XXX that activity and I million, report the this an mean twice

this that of activity. you a So gives magnitude

next Woodring We'll Casey go JPMorgan. you. Thank of to

for my question. you Thank Hi. taking

on to last $XXX $XXX pointing XQ and month guidance during between and the COVID maybe COVID, $XXX been below you've million for just to a the revenue slightly pointed That's calls So $XXX prior or million CER. the million that million give take you below call. to at conference

curious as here that number COVID to for XXXX? now your much Thanks. is just derisked how So, view in

all with to million of due I mean, mean, crystal ball. I accurate the kind respect, COVID is on a being

that seen XXXX. in have We

fully remind volatility. from QIAGEN We early have is And COVID XXXX. seen was this decouple XXXX that our on really company to P&L first as of the you why I the all that July

a pre-COVID million yes Roland X% of million per yes, full to account you fully over that $XXX million, Is I year. is which around that less. probably believe taking COVID We growing it's bit It which number it slightly a And X% and the to between is mean, $XX $XXX for alluded believe number we -- or that into again, year. be will have customers gives on it. non-COVID portfolio. what it's the compensate solution. is priority and well. could obsession real as with we COVID COVID and If have the this we this appropriate to way provide the of we continue to to This once management relevant it's an see view of But If the will be more, less, is derisked?

that the perspective, it's from level. is Casey COVID was it the what a we down at look a it bit to normalized QX way Thierry more, to to I on a larger number a quarterly that allude really Yes, goes and and describing side probably clear think, probably then

of So over probably asking we I for. say approach course the would the what you were year,

Roland. you, Thank

Hugo We'll next take BNP. question from with Solvet our

will two I in Question. on parts. one split TB, which have I QuantiFERON

second growth? contribution reach QuantiFERON to can it's left strike sales you evolved the gains past deal you maybe the And IGRA when of First, years. to the share with your talk know testing to I market over in that few in we have back some exclusivity partner period for give at around a were specific that under you impression Thanks. options you Could please time. the details us of the that the was XXXX moment? and

thanks questions. Hugo, for share, the On market

those have times. that the know numbers numbers You many are we given

to taking are market, that growth are once With that the above we again shares. it's double clear the digits, we market showing

skin market probably to a market shares tests tests. Mostly against are world. around We is all convert that million, you still remind all taking I what? X-X significant here XX against skin And over million there the

US. on the million, million If you it's just XX X-X the tests focus US, skin in

on test. So this need competition, the put We the is obviously priority. take is obviously from main where focus we to skin market share but

respect in has as with DiaSorin. DiaSorin helped well. for helped has company QuantiFERON it this We think a It partnership the have tremendous

right. XXXX, very perfectly In need are And you we exclusivity. is open. to discuss QIAGEN

is we the the going we Nothing growth are but at everything the and stage. We the say of in tremendously perspective, is would to DiaSorin evolution dogma DiaSorin. that considering with you they the open, need market. that here. no their have their this partnership put perspective, add to discussion This start is Roland, like to We with investment what that? dogmatic, can something respect to product

and think, while a test is still clear very the is low, see I overall still is story success quite it's market growing. QuantiFERON conversion No, QIAGEN that from we for that overall clearly the great skin

skin course, great stand converting think DiaSorin in a but clearly market thing So for success of us. away. test said, in I you with it big also had we from alone, as that's where And it's combination a

The last question comes Redburn. from Ridley-Day Ed of

Thank Good you. afternoon.

estimate as market Can can underlying please? you panels has today. First And and remind in last of the approval addressable QIAstat on of And XXXX was what growth line for success the update was? also, meningitis the what been that discussed of for us time of also, the you each market you year? GI just question, the another you than

good. very was the not again because once line captured questions I the Thanks. I hope all

growing that to our probably year. we market to going already the to the we above success that the $X.X in new for regular per billion. clear a confirm addressable probably as billion us, to digit we for market years before double on key So, new said is how we this bring come. menu for between that QIAstat basis, around believe It $X.X to And It's this is XX% is market statistic XX% applications. a see is the factor and

to and in us We need meningitis. US. in the key the three to have kind Europe, allows any syndrome build We GI or that tenders participate in this assays respiratory, now of

in end and In to half expect our we the year second submit for approved XXXX. our GI the the will of meningitis be for we US of XXXX, numbers before the

infection those is are around urinary of to tract blood identification positive direct that obviously So for for that you to portfolio, that time need two the in urinary two that coming numbers other expecting the tract years, means namely a have R&D we we continue unique have And new the developments infection, menus and approval. because to which bring development are then meningitis years. we no complicated in for come our culture

solution a is and COVID monoplex offer NeuMoDx; in syndromic for So is play. how respiratory, QIAstat. solution NeuMoDx the between flu, And our solution analyze It's be to see menu the QIAstat; a able proving RSV and portfolio and not relevance situation it. a the current we only this large-plex short-plex to

the you have with please very Bye-bye. always give remind and questions resolve, We're issues Thierry. a much. that, end any Thank like very And or you, Phoebe follow-up you Thank to I'd comments call. just much. or you Okay, available. to call me and also if

Thank you.

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