Bruker (BRKR) 9 Feb 232022 Q4 Earnings call transcript

Good morning, and welcome to the Bruker Corporation’s Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I'd like to turn the floor over to Justin Ward, Senior Director of Investor Relations and Corporate Development. Please go ahead.

Thank you, Anthony and good morning, everyone. welcome XXXX Bruker earnings to and fourth like year full call. would everyone Corporation's to quarter I My name is Senior Director Justin Ward and Investor and I Relations Corporate Development. of am Bruker's

our today's are Herman, on Executive and President Vice CEO; me Joining our Frank Laukien, and President call Gerald CFO. and

Relations today, of the a addition that slide website. earlier we can to Bruker's Events we call, be release earnings today's In from & presentation section Presentations will Investor the downloaded issued during be referencing

we included call, non-GAAP are information. earnings today's at highlighting During will GAAP financial website and Reconciliations be to ir.bruker.com. non-GAAP financial release posted our of in our on measures are our

the reference Before safe on which harbor presentation. we statement of shown I begin, like to Bruker's is X would Slide

make geopolitical regarding the statements the call, energy During company's risks future of company actual will elevated this and COVID financial pandemic, and uncertainties, supply that we to and The and and related the chain challenges. involve performance logistics operational and inflation risk XX those events may XX-K including other are statements. on release, might in include our Form and such differences SEC today's by updated limited Factors are which discussed and such differ not materially cause but earnings to the on website. our that SEC those results filings, our as from in website available forward-looking

do X, based We our May XXXX current and results statements other on release law to as conditions to may quarter new XXXX. except based intend our be financial reasons, our of by business for early prior XXXX. that information, in of note on information events required the expected or as future today, following Also first February is the to outlook forward-looking not update

on today. representing rely forward-looking not after as outlook views our of should any date as or statements You these

he today's in then quarter will Gerald We and for of year more call and full XXXX business the an overview cover financial year fiscal providing fourth with XXXX will our detail, begin outlook. Frank share financials our will progress. the

Frank Laukien. I'd the Now to turn like to Bruker CEO, call over

gross morning, today's earnings call. thank Thank and for improvements growth, while a non-GAAP solid on Justin. XXXX, And and XX% while And revenue points all capital basis operating significantly joining Good and financial you margin organic with above you, everyone. all invested non-GAAP spatial with In growth year achieved XX% Bruker EPS fiscal us XXX investing on return in proteomics biology. expansion XX%.

have proteomics automation made in and proteomics breadth last We expand tools markets research drug key in cancer expert enter research the XX solutions. our several order attractive and software neuroscience services the of and discovery and in in consumables tools new proteomics into and to acquisitions to also investments months capabilities order

navigating some with in demand even investing excellence, chain key will introduced yet areas and again the tools capacity operational the while in fully productivity related importantly, particular lifetime for biology for bookings for teams opportunities innovations the high the our year. the be additional resolved and probably our Bruker has we are XX growth field supply you generated into margin also as on XXXX. XXXX. focus X.X segment early large know a Project our high have initiatives value growth of until proteomics scientific high digit but years. Our backlog next spatial fully also of Accelerate and Most is in XXXX, And double solutions build fiscal good electronics instruments growth and been which improving our resolved into and visibility differentiated strong. organic In And instruments geopolitical year year-over-year and not of gradually end XXXX. are effectively challenges not in advancing

other additional and drive further investments expanding key in the while our X.X focus recently Project to In strong acquired our Accelerate we revenue in solid strategic capabilities increase, intend another growth XXXX, EPS initiatives. and proteomics

Our with growth company and revenue EPS further and continue goal double operating growth growth consistent to Bruker medium-term digit high transform significant a to into margin Brooker is expansion potential.

the Turning year X.X% company. slide fourth capped for quarter in now organic X, year-over-year the off to revenue another strong growth Bruker’s solid

in high Continued quarter differentiated segment demand our value instruments one. solutions book-to-bill was for drove our robust revenues. and bookings greater than ratio performance again scientific ‘XX And fourth

For increase the backlog double-digit full organic bookings both the year-over-year. year XXXX, our and BSI segment in percentage

XXXX, in in of nicely For with to based driven comparison of and year-over-year order QX the quarter BSI X.X% continue demand particularly grow prior ‘XX customer Bruker’s revenue strong a demand, increased QX strong. to from X% to ‘XX headwind by QX year FX. million. This ‘XX Europe segment fourth was broad bookings being the reported with $XXX a

year-over-year. So QX X.X% XXXX our on basis, an increased revenues organic

XXXX non-GAAP QX year-over-year basis to XXX gross XX.X%. points margin Our increased

quarter ‘XX reported of quarter Bruker well $X.XX, tailwind. margin XX% currency from our quarter XX.X%, pricing benefiting productivity up fourth in in up On leverage, of margin was from as $X.XX quarter While non-GAAP Project our ‘XX. diluted same inflation was Accelerate fourth XX% GAAP the EPS the and as margin the Despite In earnings per ‘XX. reported ‘XX. fourth volume a diluted as expansion of of gross the fourth clearly is our excellence mix, operational gains to basis, non-GAAP share compared the headwinds, $X.XX ;XX, X.X $X.XX of fourth for quarter

for of was In summary, continued of the quarter a broad demand good fourth differentiated portfolio. and our execution ‘XX quarter

on Bruker’s slide for full Moving XXXX. to performance show X, we year the

$XXX Year billion million fiscal increased on X.X% organic XX.X% by an or by year-over-year. to basis year-over-year, revenues $X.XX grew XXXX revenues Our

‘XX EPS Africa industrial XXXX, digit XXX Asia Europe percentage growth the double bps semiconductor organic gross South markets. bookings or X.X. APAC percentage as year region For strong the book-to-bill three XXXX, growth. delivered growth proteomics, operating and Americas. our Pacific, and East organic Australia, XX mid-teens research and non-GAAP by with revenue are organic fiscal bps abbreviated Bruker’s and year and fiscal scientific experienced our above we double organic full in ’XX EMEA margin growth organic odor growth metrology we Middle year for bookings year-over-year led in mid-single were Asia digit in instruments digit group New the expansion Zealand, order percentage In BSI all and expansion, Geographically particularly year-over-year In growth biopharma, margin we double-digit in

non-GAAP Our target well and above invested our again capital than process was XX.X%, ROIC return confirm And strategy differentiated long-term of working. to our greater of entrepreneurial on continues management XX%. culture are this and

year-over-year, $XXX.X margin EBITDA bps we're with and to to bringing also XXXX EBITDA XX.X%. EBITDA pleased non-GAAP X% up Finally, non-GAAP related million the non-GAAP our growth XX

our Optimal. to on a and groups, full we revenue million in digits So, in In grew analytical year-over-year our please turn XXXX, on constant strong segments where X year well acquisition and BioSpin with technology performance services revenues three software contribution the ‘XX. and of BEST and in biopharma basis. growth in X BioSpin all NMRs preclinical with currency of percentage consistent slide the notable recognized as strong as its a revenue $XXX.X to process support four GHz-class our highlight imaging XXXX single systems from year-over-year in scientific recognized X Group Bruker growth high and ‘XX instruments instruments

of ‘XX, and were very four And NMR and of the some to gigahertz ahead XXXX. in X.X at It compact, quarter way technically our by gigahertz acceptance I this in to X.X XXXX. systems is going of You press you customer of hot NMR first going really in moving one well. Japan have some which installations XXXX, schedule Barcelona, we launch gigahertz new class gigahertz first this Ryokan as fourth the resulted detail following quarter install seen X.X are two single already the in however, know product week in These none that year quarter. we in acceptances story one expected of quarter the last expect by are release there are in to may Spain. the

single CALID with for in units the life timsTOF spectrometry revenues continued percentage and $XXX on Group more with our portfolio in million high XXXX, now customer growth strength full than in mass in digit to labs. our business Moving proteomics installed applications and science increased notable year XXX the

however, revenue delays, in to We supply went CALID execution continue and slowing up. the hence some experience backlog chain

timsTOF spec proteomics proteomics single or of Our are the models various robust PTM very as epi proteomics, mass on well platform. cell in platforms all applications timsTOF XX for imaging the and demand as

year-over-year comp and difficult and Microbiology was strength aftermarket diagnostics comparable demand a Molecular revenue slightly of up as from said Our faced XXXX. modest which instrument

in on full percentage semiconductor high particularly to high growth X, the markets industrial year million. grew Moving our slide ;XX Nano in was start Bruker strong. teens, revenue to Nano’s $XXX growth revenues teens our

have with bookings Our division drove versus metrology ’XX Nano with analysis semicon data while backlog divisions and Nano and that's as Bruker Nano’s also fluorescence and result year-over-year some a x-ray demand science strong life XXXX. and in and Group microelectronics tools I'll in strong moment. research Nano into us further the product of visibility grew good Science provide a acquisitions that where performed strong additional well XXXX. made showed innovation strength microscopy surfaces we a growth Life discuss also

revenue shortages. but superconductors experience Eliminations robust by the mid-teens all BEST fiscal our medtech there but and to we customers. material So of by for at appears demand OEM grew to energy science, our driven well, year’XX healthy big as net superconductor in last challenges from MRI some chain supply Intercompany due least percentage not contributions clean That demand research continue

of which good our recent really Moving now ‘XX in Project represent X, and that generated of continue research. although to of two progress X.X On make business, fundamental very total acquisitions neuroscience, Inscopix slide our Biognosys, circuitry X we specialized brain and way in of Inscopix revenue. Accelerate X animal life highlight and we and and initiatives microscopy now, slide to with XX% fluorescence part microscopy, it's fluorescence our pioneered has Inscopix field is a doing

So digit crucial while gross better, this that ’XX lot much in revenue in have brain support had function above only this and And between accretive margin growth over more behavior and vivo they're about much is a a investment need to and to have $XX is mode. is businesses one expect function profitable become investing in not operating CAGR, also but margins fast this this years. become over single revenue, of well understand year, right very are double-digit their to that we million a we and time, molecular only now, not we to XX%. EBIT them they in our they not brain But they're because few margin a just

go Biognosys the this very slightly also also consumables Somewhat services general research but has kits proteomics strategy specialty software. drug beneficial much in as and Biognosys but discovery not a services, DRO field, and we development where by on or services key story you similar way very where us, specialty but, know, different the a may some did into for

their ‘XX including in significant a we're specialty tools double revenue, that million mix a accretive in also So they then they're discovery, margin this expect proteomics. their our CAGR will facility, because have of double of them about But proteomics to and expect rollout them CAGR, over had but long-term investments they in over ‘XX, few And not think time, we because will time. take drug US digit not support, in a -- we DRO year, profitable. to also be do we expecting very years, of This the businesses, digits. key $XX be of acquisition them to operating a become to additional

as but visibility BEST But very used in only clean contracts briefly, press here that something superconducting experiments, we or energy our tech to tech within very physics ITER fusion got don't for also technologies some the have contracts. materials those heat all specialized are for be are ITER confinement and of Plant that long-term well radiation be is ITER or work. we diverter, ‘XX big probably and million December. by are are a indirectly, way, high experts as not magnetic on something all under that have contracts. or be those in have materials that Moving don't the we the you just magnetic these $XX customers, machine from the MRI many as increasingly technologies from this there expect fusion for and will But had MRI, received much clean the And of examples part X, OEM By on fusion low on have an and This Pilot our of Pilot or ‘XX and Asian highest development. science not multiyear you revenue. to parts release slide over of for on, I how by Plant,

offshore Superconductors role get will one offshore heavy. larger efficient sourced this Asia and wind in is also country, that XX from more they wind also and megawatt investments in particularly in probably China are enormous because may in too planned turbines. for in larger, wind play away an are get rare Europe case. turbines only The the increasing earth US and and materials It

future wind probably And on had growth offshore so superconductors an bright future in some of for there be for may haven't a turbines, which outlook much areas more you visibility.

and be now XX% excellence innovate and to from where proteomics where XX let Americas, the up in very different this also is few fast because new you But TAMs XX% This the and proud particularly the and Bruker’s total if really geographic our up has balance large one, an are Project opportunities improve, parity Accelerate spatial than present not broader and XX%. our our slide APAC, operational as recurring very very obviously growth the operating a and instruments to and about new, similar to company and an markets. South lower and on has particularly Asia revenues. revenue at for opens XX% revenue, to large the along from global we EMEA illustrates changed to look very, We're left, Americas that's which wrap incremental. biology. So up instruments margins, of with with last a our XX% mid-XXs in our next for still dramatically picture and this at growth the see advances revenue decade new But our create me us, continues It's are our changes that revenue, XXXX. in XX% from company advanced years X.X year, percentage the ago. quite mix Year-by-year of about pre at now to COVID you

I've last in things wrap key again proteomics me several let particularly technology months, summary, neuroscience and Bruker in fluorescence capabilities In during and acquisitions, and We microscopy, Well, we XX the up. made closed progress. are XXXX very excellent expanding new supply entering attractive the breadth the earlier, as chain addressing depth well and as our agility teams our the markets of of proud of challenges. and capabilities responsiveness as to referred and

our into rapid term solid high to we visibility XXXX, and increase a to further And gives of revenues, of XXXX for strategic another margin additional growth, year forward, Moving ahead. growth intend EPS R&D good revenue in backlog combine promising gross and us from XXXX. reach in proteomics our Commercial with R&D we spatial XXXX, of or biology. up particularly previously Investments, announced and medium X.X% step investment And bps for XX% expect in is XX target which expansion

financial good and will So while really process. our outlook are It's that, a detail. It's call our year-over-year. we investing financial with more CFO, the significantly performance Herman, me review to turn a over strategy. improving Gerald who let very Gerald? good performance in And Bruker’s

reported financials. Bruker’s year-over-year. increase quarter quarter On in per of the We $X.XX EPS quarter increased approximately revenue $XXX today. which thank And provide you for year I to million, Bruker’s XX% to full Thank slide joining $X.XX you, increase share, and to of of an an am to XXXX, us in the XXXX was detail fourth XXXX. the Frank. reported GAAP more fourth EPS on everyone pleased fourth in XXXX. reflects per of Starting X.X% fourth organic quarter $X.XX fourth XX, in X.X% share, ‘XX of of non-GAAP a revenue compared compared quarter $X.XX the basis,

operating fourth quarter Our quarter margins year-over-year, grew ‘XX at XXXX XX%. the flat fourth X.X% non-GAAP operating income year-over-year non-GAAP about with

strong inflation X.X well Project was and by costs. Accelerate related higher Investments initiatives as expansion gross Now as the Commercial R&D by offset margin for

$XXX of million. cash, cash We and finished short-term with the investments approximately equivalents fourth quarter

key fourth approximately cash we $XX X.X course, Accelerate shares our consideration strategic to for Project total capital stock, of Bruker in opportunities, purchased investments In our and we about the During program. dividend quarter, quarter, expenditures, the million. fund selected used of is XXX,XXX

For flow quarter, in XXXX, the cash the million. totaled flow higher ‘XX. in to fourth primarily generated This or of operating million approximately fourth in of the a year expenditure quarter million our resulted fourth income million quarter shares, full $XXX capital cash due of net X.X after the a free investment $XXX million from quarter. We $XXX for which the repurchases $XX of ‘XX in represents increase

fourth the the bridge revenue of for ‘XX. XX Slide quarter shows

strength As slightly BioSpin a currency in the strength the digit positive XXX, But Group had fourth X.X%. high constrained acquisitions performance organic quarter single metrology increased increase of in and in semicon with low ‘XX. for organic foreign revenue tools materials supply and percentage than fourth noted was contribution higher of the the Nano From by digit again fourth chain and our quarter quarter fourth and compared headwind quarter businesses. ‘XX BioSpin to bookings were systems compared analysis We quarter of up of organically our of organic in BSI PCI robust. meaningfully a XX% CALID the in earlier, an notable for grew from were to revenue single on revenue in surface significantly software and revenue bookings Nano aftermarket the Order a revenue XXXX. divisions. quarter X.X% quarter ‘XX Fourth X%. in perspective, the delays CALID growth revenue in percentages both fourth revenues one. high a the quarter were and book-to-bill above fourth

XXX increased and revenue quarter the to capacity ’XX percentage is basis an our organic the the high quarter leverage. of due XX% fourth quarter XX in P&L fourth XX.X% and revenue favorable down was margin fourth percentage The to mix of region volume on non-GAAP world fourth in ‘XX utilization, high quarter year-over-year, -- Slide shows XX.X% single points percentage. ‘XX APAC teens year-over-year. quarter in rest of grew our ‘XX range the and basis increased on Geographically the mid-single year-over-year performance in XXXX, range, digit the of European fourth higher in gross revenue Americas digit grew from

to quarter the in addition XXXX related non-GAAP biology, of in spatial and Commercial Investments to and continuing reflect expenses operating proteomics Fourth ‘XX costs acceleration fourth up X.X% in increased compared Accelerate quarter were and Project R&D to including X.X, the of inflation.

the the fourth XX.X% a primarily the For average Weighted to clarification fourth ‘XX, XXXX, due in million repurchase approximately tax from shares the a in resulting quarter issued to outstanding in of shares tax year. was quarter the from reduction share diluted US XX.X% ‘XX, was quarter quarter ‘XX our million, of past effective rate ‘XX. X% quarter activity over the $XXX.X fourth our X.X favorable or of of non-GAAP fourth of fourth compared

Finally, following EPS fourth of up non-GAAP compared of was year-over-year for ‘XX. full on to organic over revenue year full the including of Slide $XXX of comp exchange year XX.X% $X.XX quarter Acquisitions XX% in X.X% added top strong the our ‘XX. a headwind up or was foreign growth XX the the fourth a ‘XX line, million, XXXX the shows is bridge for organic very for $X.XX quarter Revenue ‘XX X.X%, slide year XX%. results P&L ‘XX. of XX. was X% full growth while to summarized

to of tax margin XX points The year, operating XXX reflecting a non-GAAP many higher was favorable full gross XX% to rate the leverage mix the Accelerate XX.X% while in same XX.X% /XX. compared to expanded reasons. grew for X.X XX.X% basis full For rate more points basis revenue, and Project from volume margins

‘XX related XXXX. receivables. $XXX Full year flow we more the proper in than of lower flow, million higher benefited timing cash from cash increased inventories than to $XX approximately volume, free net in by capital XX, our working generated ‘XX, free year full the and of to Turning now higher of slide offset income million

of investments in productivity growth and drive. continuing operational Our as the in capital part expenditures excellence our capacity our reflect year

days, supply due XX was of fourth risks. higher cash cushion cycle fourth Our of ‘XX. in working ‘XX the to to end the increases at compared quarter capital days an conversion the quarter of to increase XXX This needs chain

solid backlog given in to in growth strong slide now XXXX, continued XXXX. we Turning growth expect XX, bookings and our

to X.X% revenue of $X.XX Our outlook to organic year-over-year, lead tailwind to to a we of contributing to XX% growth. XX% compared of also with about about range X.X% representing acquisitions now a XX% growth for This X% is estimate in revenue XXXX of XXXX. are reported foreign to we growth guiding $X.XX expected includes, currency to billion to billion,

growth the to X% approximately continue and targeting expect expect XX basis delivered up Nonetheless, we X.X% And XXXX, to XXXX. gross in our R&D innovative non-GAAP X% margin XXXX. we're portfolio profit reach we we a in growth of level XX% points medium-term in year-over-year expansion to target That's to of deliver our operating ‘XX. For profit revenues. solid step from operating

approximately combined recent exchange a by to Organic basis basis XX of decrease about from points margins in XXXX. XXX for headwind operating points margins to non-GAAP expected operating XXXX is approximately transitory foreign dilution expected our points from are in expand and XXXX XX with basis about XX.X% to our acquisitions,

this our expect which our to margins XXXX. level, And beyond We operating from goal first expand in medium-term well continues to anticipated XXXX our XX% dip we rebound non-GAAP achieved in time the margins operating for XXXX. be to

highly are acquisitions recent our mentioned, Frank synergistic and As strategic.

them growth, expect revenue and margin double over returns develop to strong time. to digit improvement, We shareholder rapid deliver

we're a CAGR compared fiscal the from XX% in $X.XX, to bottom to non-GAAP XXXX would in X% or our non-GAAP This $X.XX On a guiding XXXX. growth year of also represent EPS to EPS $X.XX XXXX. of EPS range level XX% for pre-pandemic non-GAAP to line,

non-GAAP full been We XXXX. are XX% approximately guidance updated tax are And as ‘XX. of ranges the currency of for have for assumptions January the year listed full a XX, XXXX projecting on Other our rates foreign year rate slide.

in giving up, wrap deliver year performance to in XXXX, ability our backlog XXXX. good in solid another and off very growth confidence of record carrying financial products the us and financial We're innovative improvement. quarter, good a bookings to So capping bookings, momentum, fourth strong another backlog Bruker in revenue delivered

turn the start over very Q&A much. to call to Thank session. I'd you With that, the Justin to like

to begin I'd the now Gerald. the you, Thank call. the to Q&A of to turn operator like over the portion call

that you question limit one we Operator? allow one to everyone As follow a and yourself for ask time to up. questions, reminder,

Instructions] [Operator

question come Puneet SVB from first Souda Securities. Our with will

for taking questions. Gerald, Hi, Yes. thanks my Frank.

So on you groups you hearing first addressed maybe getting on other have skewing supply on been in on obviously to segment other that your one one. just one than supply versus instrumentations elaborate is greater Could they chain the Are came among supply, obviously throughout book-to-bill the instrumentation? bookings? you were chains from constraint. year. been CALID, And said We peer the have

So what about could you that have a little and and on chains then what follow-up. there. maybe talk instruments visibility sort And impacted I there have you of bit are supply

Hi. I'd I'll dropped start for bookings. But strong with or that the that. book-to-bill segment, was greater nothing than had something in strength one very it BioSpin really in out the timsTOF BSI sure, that like

bit Some a of that. QX. an in industrial resilient. the that applied and such Europe eye kept then a remained pretty had is on And geographically strong surprise areas We of bookings

more may are may, surprise things you maybe the think remarkable of you are as them I expected. and that those some some

got, To both got some delayed. parts that the on certainly the few some can still there sometimes just is just a second the for chromatography deliveries not that molecular instance spectroscopy, point Group, in supply but delayed just a are there's our Bruker optics, worse. deliveries part chain. getting things equipment getting timsTOF we even delayed line and Yes, and that sometimes it's so the be even also but it CALID But that or better,

itself sort not bore you to don't all out, better, still that sailing, it I want it's it's the details, is but gone. getting take smooth time not but with to it's this that So some will

further we what's than really still revenue, we going drag intend if or perhaps, a delivered all is better on build delightfully if on a which growth. our better you had QX, concerned it but were didn't in expected, economy. so little the with also than we -- is to But feared that we revenue backlog good And

our our pretty up went that we're and backlog yes, strong So yet pleased bookings so again. were that

the there. bigger that's So picture

it. Got

the hearing we've a then cadence investments if And general margin and Could – one squeeze about talk XXXX. could bit off off those think about then R&D about? helpful. here in How you're in year, China? should in margin, on little talking dip on that just Frank, throughout just we I you been Okay,

One sorry. - by one,

one, trillion but view to it's Appreciate it. in strong a X.X get and this XXX instrumentation. because get to instrumentation, would an love love But billion stimulus the know there. important your you is certainly of RMB loan, sort I you're I obviously on

we'd So could get to Thank meaningful. be there that love you. your thoughts

don't in delighted until ‘XX. Europe. the and for we're announcements time. it's CHIPS in it in long-term grants to know tech that just that and great revenue these that budgets, up with purchase gets to into Act US this as so But caters from In all Act caution have But happen clean additional But won't and and till by to potential takes want well. delighted as ’XX- then you Sorry that, Inflation along obviously medium- prospect, the we're show time And strengths. all our in excited. and orders into the probably mean specific US, the I we're and I other some energies, it may take very, at stimulus Reduction tailwinds principle some before, this also

or – I other you to Justin the question, to On or over go

respond. to happy I'm

So to performance. relative guidance to the ‘XX relative margin the

as prepared from think, factors probably my there's remarks, you've I heard there. two major

performance posted, very think, First of I operating That's company. solid, all, year full of record for we ‘XX margin a the XX%.

for There's we dilution on R&D for factor think another foreign already able which will down we're slightly to work our the in levels R&D operating that back be bring pulls a you've accelerated some spend, do combined is expect XX% stabilization margin we which exchange ‘XX. on and Secondly, the doing with acquisition we do of there some supply ‘XX. and level the margin ‘XX, some operating up to chain the all related that of referenced,

able We to expect rebound to that in ‘XX. be back

and going to year, still we're the we they're that expand margins. yes, But bps. deliberate margin, and that either even XXXX, to and company. have look they'll expansion thinking think margins, we're the gross us our to And in which these we've organically acquisitions; company accepting We're us ‘XX. gross and growth and on, glad drag in more acquisitions. operating the we you expect only for a margin first FX future we're company. grow good, not transition are we transform But terrific good operating they But non-GAAP if I very margins our the we're about low gives some that we our be it's XX in think on gives years slide guidance at Importantly, very acknowledging profitable, positioning headwinds the the potential as the in from did temporary margin continue

Our next with question will come Patrick Citi. Donnelly from

this you I the Frank, growth guys a out questions. to I've number put think highest start is the for Thanks year. seen

the conservatism. that, what You in get gives kind to bit, of you guys clearly, pretty you conservatism what they're that start to guess talked it'd I last as perspective be known And the that amount number. bumping type in healthy there. concern for you numbers It your year of it, on with assume alleviate growth typical to confidence prior still the back stand numbers, Bruker great typically of this elevated the semi give quarter, this visibility it about the where I have mean, we record years this of that JPM. even backlog, year, to on that of start layering you like a out talking you a get here. little did to from are I part headwind the just guess put does didn't of I were about in

of question, Good because already feasible China delays to very question. of we can or semiconductor or point, a few not export out of pieces last the being certain incremental probability from took equipment. you because for I to significant thanks our about backlog out of some your the it's orders give Yes, either of,

So additional risks you in built time. forecasts. care no if took see QX, that our we that's can like, all And of into so that at there we the

it's fast. as come of of some Yes, think would the course, not are in all and concerned, they whether It's two-to-three-year in it will continued orders of process. I the areas there'll usual balance that, while and momentum, be it's backlog, one year, weaker, we backlog we're quite were that we also to ourselves get some and a of acknowledged a levels, growing risks bit normalized is opportunities. them wondering where not

signs pronounced any or signs of haven't seen weakness real weakness. of We any

areas And just momentum. momentum it's and of coming in the BioSpin, very strong timsTOF we order So number order is then have.

early will I for the hope can just, unusual We, it's think good we that us, an we would the deliver. is balance in but we it’s right? hopefully it number that the year So usual that's number regret, yes, not

the throughout of And given that's annual the give guided think should XQ our on the the your particularly the been throughout to maybe way some you guys of the just on Okay, on year? yes, the focus XQ both through kind expectations kind year. we there's of growth of peers Can helpful. again, we of think particularly, as have us XQ be an little progression the Most work light latest increased progression. cadence margin science the about just side, How life the just perspective then think in bit kind then XQ this in via as of some quarter, organic growth headwinds a side, terms you about I kind China? and quarter build on Gerald, and of

We little expect QX, yes, expect lighter. also QX a be to sorry, we

expand there on you we lighter expect do we some expect to but QX want but still to Gerald, we do color quarterly that decent growth. acknowledge also the on be So, side,

would may some as And ultra-high remember, But Yes, a to be through from perspective, organic I HX be are field targeting growth systems years. an say, the still solid, we very little expect we lighter. move we QX we do.

it So – didn't get

QX. I think

clear that for the hope chain constraints. supply of to able Sorry And be QX, be that including is as first some know, quarters through we first likely And half the in we strength some to addition, first so. release in sure. we there'll had you move it the but half,

for add of that maybe strong. to modeling, And year very was last I'll QX your

will year, flat revenue this last we're more be down So or us. so don't QX have comparison weaker compared to, QX last to likely even flow of on supply margin for margin particularly year be We was a year. expect a and expect to chain to we QX of year constrained, last than

-- to XXXX. in year, comparison we more more QX, comparison, even weaker and expect out last be even strong in So QX, that

so speaking, help. was our will that QX your because strong. QX I modeling, So ‘XX of for not be that hope relatively strong,

and build XX, So again through on then a X maybe way mid-single year. fair growth that side, of kind we our like maybe XQ the Is below to ballpark? that

numerical We're color. color, giving not

not just don't not to. that to So try color we it out. because to comment very we'd rather giving this there There's nothing call that additional sure make unusual, that But something numerical I'm get quarterly want didn't intend we time. color I we, was we if

Meehan will question Jack Research. next Our come with from Nephron

organic talk coming so of us fourth morning. And how that semiconductor much spatial? you. things over how Thank for like Good the investments is the really an just outstanding year Nano, XX% today? XX% dissect year. is Can from in this of about versus for you like quarter big Wanted to growth business

we've mean, contributor that soft of portfolio. strong strength still will a moving we smaller the XXXX, the also still advanced area. businesses was semiconductor neuroscience very bit and Inscopix they're and and than And areas where some and orders bit microscopy, We're needle to semiconductor others up group adjacent in like revenue memory is In area semiconductor much ‘XX, going and we in semiconductor by acquired, XXXX the fluorescence looks strong more growth weaker spatial in than not grow yes, a our which up the biology expose it and in is new steeply but But to in Spatial include or spatial areas Oh, microscopy business is a that least wise, margin commoditized. semiconductor oversupply be are the there an much, landing for does, it's, including but made quite that the at electronics. to But be sure. fluorescence wise I smaller to in indeed are there, that a than areas the backlog. business, made expect particularly it up not

BioSpin. to move over wanted then Right,

give just orders our gigahertz And you point? you the NMR, can the for to single-story expectations ability have Just scale ask at manufacturing. that about for us many an update this on how

we we coincidentally announced second QX, they last of of far, quarter came them have which orders, year. all in all, three just delivered the we two in So

could of amazing really two installation. be delivered was and delivered that a customer just and smooth of them, really So mature we getting ahead product indeed new so schedule quickly that

of people So ‘XX things the with few we're of But we no trying that orders pipeline to in activity. another there opportunities report in is a expect There's one kind and raise funding. a revenue. thrilled how to There that's yes, to going. are where No yet. And bit yet. quite quite report orders have is additional

question will next Our come with Research. Waldman from Josh Cleveland

context the targeted? these could for when are Gerald, taking I this Thanks my it that couple off and the remarks, guess prepared XX.X% the show And up growth? we ‘XX? A you're show Is curious and being is right? you wonder guide. morning. I And of ‘XX for on out kind for a more if And first to on see in more I you. revenue of up change targeting still Commercial like that. sounds in target? in where Investments one up think of and I start to I that the kind Or roll it R&D alluded mean earnings bit Frank, you questions. ‘XX. Good then, $X margin margins you investments but the guess, provide I time-ish a if follow bit, guess are a that is for timeline these of what in kind on

number the very good of are points, all they questions. So

We R&D ramping that's That's going been that the particularly -- not a be medium-term in had ‘XX. in in onetime XX% proteomics. no, investment, that's to So a target. shot

added in Now timsTOF of all chromatography consumables added continuing and to these to we've as sample, added course our in proteomics addition last portfolio. we've capabilities, you've develop seen, year, early automation. We

CRO software Now large opportunity. continued investments pound in R&D and require multiyear we've and capabilities do and very will to and and foolish not this These further invested we strong want consumables capabilities. added pennywise all proteomics be under

, R&D invested the for it be be predict at think here. how under that's which would strategic multiple we year many a So I XX% mistake, to level years I be, it'd want a a but mistake, to want actually don't

goes that that spatial of the won't out any area mix then this new to of part XD and begin spatial revenue which acuity, come second proteomics, spatial R&D single fluorescence that but cell XD biology that heavily proteomics, have is then us any microscopy investment structural, And more biology, traditional yet will in which cell genomic is the The the whole particularly products or a ‘XX. year the a neuroscience. biology, single into canopy and for

XX% is to R&D, there going XX%. drive the R&D So we're and significant, important or not very very very, XX% investments into

few we're also for here I investments. growth finance, doing is think as years that's not But to come. just quite forever, XX% the to but stay disciplined for a

that with to especially will improving that Biognosys further ’XX our investments significant and ‘XX, become digit will they larger these Josh, there ones the in important, the loss a need having transitory we're and lead investments. P&L then they grow for doing single and but and effects, margins acquisitions, on they eyes new will acquired wide The will in from are FX the newly more open, the ‘XX, Inscopix, M&A, in

indeed these is whereas and very, in half from that of ‘XX, that and our from R&D effect transitory biology. for transient why that's but be may there, for important and a much FX So reasons probably XXXX transitory XXX-bps around proteomics is still growth bit half very acquisitions the investment FX, much spatial XX% about or in evaded

We're to ‘XX. way, guidance. that operating not ‘XX just the we hope the And we substantially not we this in we're nowhere year, range margin from taking in recover we're that we're had But we've are not there. from grow within easily, revenue by ‘XX, ‘XX given for a giving getting your last on our number, guidance an Josh, not to margin, operating ‘XX question, we're and a dip giving already

happening much yards few within, we're goal already reaching on for yards, last our of faster, that's So the few in and line the here ‘XX we're ‘XX. EPS on

where in we'll XX reach year, to medium likely June on three-year give ‘XX. And new we're give that very the probably Day, planning in financial we're tend this medium-term XX of June which multiyear then goals our Investor for So Analyst and to to term. goals, we do

Got color. a follow And it, appreciate and all the then Frank. up,

an us months. recent in activity university give on the could you update and quoting view if ordering of wondered Just your among accounts

in Just ‘XX. end curious your this expectations market for

healthy. Very

will Rachel question Vatnsdal with JPMorgan. come from next Our

for Great. Thanks, guys, taking the questions.

so And digits down just But that were exceptionally here, region bookings the on noted the could Europe minute quarter. we maybe you in mid-single was a spend strong.

any are the of So can region? what there? in towards pockets So level Europe with expecting just you energy headwinds really for the that are what talk of can You you weakness? previously growth point maybe us just of in you seeing you seeing some year? you're and conversations out called about then customers And

Yes. Right, good questions.

That's running a So Europe hopefully. I you And anytime currencies, mood maybe a can in I in war right. fear Europe, rather we I a related probably in contained being winter the Eastern the hasn’t is think of than then little bit. Also, that gas strengthening think and changed out the broader Ukraine, soon. had mean, but and is mild of see broader currencies, Euro tragically, that to not a it fear Europe understand reduced. of war

is very supply gas high. the fact, In

everybody's for on, reduced. And this at to needs winters. least winter, for more still develop energy year, that accordingly, peak dodged strategies the again, future three, as of has ago their high much they're still come Europe And they So levels. absolutely nearly this peak they the energy way so probably energy as bullet. quite a the had of to prices But chances optimistic will, probably blackouts and the higher, prewar but like levels, are course, or not something down months bit four not that Europe

and summer with beneficial all the year, of so of that more measures making particularly So for energy saving that's in this when everybody's and hopefully us ready kind season instance, net-net. for power adjusting saving other solar investments energy to

on. are or the mood So not in continue version in Europe UK of to relying as the to having and and willingness supply or or a US in their pharmaceutical on US I chain drivers. invest into their in only and And also, all Europe, the R&D good think is and rebuilding Asia so semiconductor the European Switzerland discovery

for think I the is Europe yes, so, outlook optimistic. And much more

anticipated. totally than greater we And not that came surprised QX, in to a up extent so although they bookings, even, that did had we're

So will it up a I the because catch to anymore. opposite, Maybe don't a Europe little even has think drag bit. be

organic it particular Yes, in perspective if an the broad focused on one area. it was like side, from seems it very just booking seems it as wasn't

it So well, the I think, bodes for whole –

in now the additional US. in Europe elsewhere, in Act, somewhat tech our clean sector stimulus the discussing is political to and here And Inflation Reduction response

So that's the update there.

maybe then just last Perfect, me hear. great And to pricing. one for on

So are for us in XXXX you where increases and know, you what just last half And took modeling price, as let you them did Can incremental back then of XXXX. pricing especially you. for pricing year? the fully contribution well? there for land Thank

Yes. Hey, thanks Rachel, question. this for the is Justin,

digit, again, for realization offsetting year and year. the inflation low wasn't full as mentioned, that was in the XXXX we the fully for price single it So

it realization basis to XXX call from inflation. had price margin we net point So that about drag operating

think but next the low net For that little going through realization inflation, we're price still inflation, against price as to that next bit a still going higher bit be it's digit. do to it's maybe its the of a XX improve in on we a And single working better we year, net year, drag way expecting backlog, a think points. realization it's about basis little

that for from XXXX drag had So still a and for as price XXXX you of Gerald we're commentary expansion does the versus look margin the bit at our inflation. organic in implied expecting include margin, guidance that op

question will with Bruin Bank of from next Our America. come De Derik

Frank, quarter, questions bigger cleanup A one. and of one And and then company. morning. couple Good Hi. nice

for fiscal incremental I some mean, share So of buybacks. do kind ‘XX. you assumption

that. up. have FX quarter the set of want how year first just And into the sort rest follow I So in and pace we about to should the the then of think a

XX based into rated exchange, on have future guidance January baked so. And what Derik, rates. don't to the on share actually we comment we on there we already relative foreign our buybacks. numbers the typically And buybacks, are

saw currencies. that. analysis, is that major some You the X.X% is the our I think, as of the seem against that foreign for year, tailwind of line US into dollar to weakened which you currently on full assume And exchange factored predicting, from the revenue we've

quarter just wanted on the I assumption Yes, it, first FX.

the are those -- are so. really Yes, those expected levels

take XX looking so changed XXst, we January even had bit days. Normally quite we since FX had they rates, but step of in January, the still XX unusual for change baking our there after a did in yearend at in planning, the been significantly, rates of because

Got it.

should the about bit ‘XX? a little And more geographic also just China's talk little Americas, color EMEA, in we a So APAC, expectations stimulus growth bit then region, by on on going can for APAC Thanks. there outside of about bit just a of situation. companies little Is think how on political versus local China timing? we any that and headwinds more preference sort color

Yes.

is Europe difficult comeback, point Europe of some optimistic and wave you heard you've the as always country and we this at year, a getting right. have a So on have to were bookings And side making and China infections. whole right, read, infecting zero that geographic you about from, lockdown one COVID

disruptions. have all that far big not such So seems to

Although, little revenue correct? was a China think growth weaker is I in that QX,

we up QX But were single A bit. digits. the up teens was year. little for

digits. Single

visibility size slower and headline it this fantastic. say of that's than all go we a scientific But that little much into more probably instruments. the a have might It's effect. I the about that. of at So transition We're stimulus the bit how than of it excited wouldn't point, and into year.

you CHIPS takes so and the orders see get into little visibility the package when then like or a or first a until rubber on, quarters. few grants we passed it's road have that and So the Act get bit stimulus until hits always the

growth, local And have our China announcements often ‘XX for delighted these But a has effect. products and we're into so then, a to revenue some always hold preference they drivers ‘XX. they strong performance, they sometimes new. turn are probably in our continue sometimes where end right. we until People more Multi-biotyper, nothing competitive local buy MRI to X-ray preclinical areas. products, want are ground. and but lower That's in systems And higher that is the local.

with China difficult things other around that's the isn't going. balloons And see to there For most a very lines, Chinese that's or risk then very, substitute. where just Taiwan of geopolitical very, our product

have we geopolitical built crisis. major So not in any

that's just predictable next As us, not decade. for it of course, is but the for a concern,

here, going X:XX to we're past We're Operator. up here. finish call the so

to back any for to Okay, turn so I'd closing like question-and-answer it session. Justin remarks. this Ward concludes the over

everyone, Great. Well, us for thank today. you joining

the And the will expect Day the and the During Frank Healthcare Investor quarter, conferences, at headquarters as City Cowen in participate Bruker June Conference mentioned, a Bruker including Healthcare first we this several host Conference. Massachusetts Bruker, XX year. to investor in of on

team leadership all So to those have Also, follow you we meeting Have with one of feel me or at of looks speaking to forward look directly you out forward a quarter. a during that. morning. reach the you great to to free up. Please if with events, welcoming Bruker’s to you