Hologic (HOLX) 29 Jul 212021 Q3 Earnings call transcript

Good day, and welcome to the Hologic’s 3Q 2021 Earnings Conference Call. My name is Kathy and I will be your operator for today’s call. Today’s conference is being recorded. All lines have been placed on mute. [Operator Instructions] I would now like to introduce Mike Watts, Vice President, Investor Relations and Corporate Communications, to begin the call.

Kathy. you, Thank thanks fiscal and us Hologic’s for Good earnings for call. quarter XXXX third afternoon, joining With are our Chief Executive me President Officer; Chairman, today and Steve MacMillan, Karleen Oberton, Chief Officer. Company’s Financial the and

quarter of website. section third the our press now available Our on is Investors release

we We will after prepared our website remarks also them. to our shortly post deliver

a of this August replay call through Finally, XXth. will be archived

this and like we the These financial found earnings from Harbor begin, Such I'd our in the to in to A call, to risks known make referenced that's statements will included be we that results statements include during reconciliation be inform with Safe discussing certain we release factors that Before in certain those measures. GAAP uncertainties will non-GAAP and forward-looking. our today be involve actual in implied. our can may unknown and you filings release. those are expressed cause Also or materially earnings statements differ SEC.

One business Mobidiag. non-GAAP revenue Blood Biotheranostics, businesses and as Acessa, divested define excluding year the revenue constant Screening organic of currently which measures well revenue from currency as Diagenode one acquired these as we is

revenue be currency Finally, on be will that today otherwise we basis, and any noted. percentage constant discuss growth unless a changes will rates year-over-year in

like I'd MacMillan, to Now turn CEO. the Steve call to Hologic’s over

everyone. afternoon, and Mike, you, good Thank

XXXX. the and We XX%. guidance base per was non-GAAP We results bottom share contributions pleased financial our up lines. $X.XX $X.XX the third billion, fight continued excellent top ongoing both up earnings our performance of revenue discuss our posted COVID We to significantly on exceeded and pandemic. fiscal were to driven Total the rebound and XX% are by for overall, businesses in strong quarter

Our was based broad in revenue quarter. the outperformance

by of to both also versus same substantially period importantly, pandemic. were when period results divisions prior XXXX. negatively the and businesses grew Breast the compared year the Surgical affected And Our grew both

about well. where XX% tests but grew many despite back term, on over take division some is as you of sales full Diagnostics of last increased Hologic I she will before year, to the financial today, Karleen want lower our requested. compared perspective provide Our XXXX and to a step and headed review to longer have does, COVID compared results as

As on have working investors based mentioned is from stronger, passion our and pandemic We this by those especially never strategic process, on pursuing impact been are focused priorities. and making and our all in more our this, promise. global last ESG I've call, our about been clearly know Hologic growing we company. our as purpose, through important excited emerging and planning faster the we future a is to COVID-XX the annual

boosting is the more cash From which blade our perspective, $X.X razor operating than business and accelerate last instruments, billion of create of in new and stronger We higher has the global more profile have our a much helped And stage, Panther growth. have have durable we generated a model. just a foundation quarters. international dollars to which we on five financial razor placed hundreds

development Biotheranostics During used have we $XXX ancillaries, X% now Diagnostics companies now two are to which $X.XX in Based expect time, to assay growth this million targeting base between businesses revenue decline excludes sales X% added growth XXXX. assays our six with billion organic new and over and rates and of of back our capabilities related strat on In horizon. we alone, Diagenode. COVID our all this plan progress, to we own we substantially about platforms buy have between stock. This Mobidiag our and buy in and increased about and

call, but we discuss to how than we typically This out to a is future. the important in play to our like three it's more divisions. quarterly underpin detail our we we'd Now have this provide enthusiasm expect for in

assay are more instruments, Panther we customer Diagnostics, new continuously adding driving installing diversifying in testing base, and demand. menu First, our

and Our our foundation and women's and in Test for the key instrument, assays health Trichomonas. diagnostics remains on chlamydia Panther rock solid our U.S. namely market with Pap gonorrhea, leading ThinPrep HPV positions

leaders have strong like by our customers in testing partnerships of educate enable largest with As CDC. many these lab guidelines we categories, issued that about to us groups built physicians the

the for Just very for public fact, recommendations last in posted are positive our business. health new week and that CDC

growth very already driving expanding So while we high, our markets. addressable by market shares are are

and as women's addition, have that test tests In from patient's vaginosis for are panel our mycoplasma we related genitalium. performed our such health developed same sample, often the

our see of increase we lower are much to significant market sales Finally, where opportunities other today. shares products

these response unquestionably accelerate growth has strategies. enabled pandemic Our to the to us COVID

We have broader player with base. a diversified niche STI much leader into a in testing industry customer grown successful more from a

or placements in today We have reference testing we total pandemic, or assays hospitals largest though States more sizes assays. we the installed instruments, XXXX on are are use in about more XXXX XXXX by beginning COVID run and instruments numbers smaller have these have Panther dramatically of increased types, countries, well tests start wanes we than half fewer global from is even significant run now Panthers. done labs Since this the our and non-COVID the and a to Panther to XX% base the customers by their opportunity, by increasing more This of available. other real now about Panthers We to United in customers instruments. customer across as three almost our and than have because XX diversified

than of we record, reflected TORs a discussed. Pre-COVID, COVID business comfortably signing and growth. we COVID We TORs our we have are States, business have of our that up established as assay has us more metric number and test historically, or about the year, our for has levels are a about relationships that year best internationally well-known win $XX on $XX third and new the profile. a was Diagnostics exceed business, elevated little new been drive with to of of this on new materially in the the Last fiscal record less million by sales future capitalizing XXXX. opportunity million. have we United record Since will in Hologic track generated Outside pandemic began, set help where been

increase generated $XXX as sales growth cash Finally, we've us has expected flow top from to annual rate. growth enabled to recent of that the providing are platforms COVID Diagnostics, than together strong complete as line in revenue, contribute three more acquisitions new that our well million

$XX enables in more the growing the off with quarter is to than prior higher rapidly. enter than First, of third space, has a to their been interest lab-based to million oncology XX% that revenue Biotheranostics quarter, time Biotheranostics excellent start us about of the area pandemic. long best an

instrument, believe turnaround, over we provides and the manufacturing monitoring rapidly Panther for our States. years. care, create for Second, the low Diagenode smaller add instrument have time. near-patient expand us enter growing the And been hospitals help of dollar acute cost the testing, acquisition of the to and in United both ease-of-use, We Novodiag menu and Europe PCR-based which to market a us in will rapid the product Mobidiag third, to Fusion line million enables right combination multi-hundred

plan recurring, strength. division, where diversified, Now foundation consistent ever discuss more gears built Similar more on of more than to Skeletal revenue growth global, is a and and shift becoming before. is our and Breast let's Health our strategic more Diagnostics,

long of across leaders partnership and customers, on the the in breast based are breast care. continuum We history innovation, with our health of focus

consistent They years women's is Mammography a lives. is exam investor built could real innovative that converted question questions cancers have XD. XD thought be inevitable reducing our leveraged strategy in much overcome making don’t leadership XD all steady many revenue diversified with around Genius growth. get ago, business creating products, difference cliff that Our [ph] we few to much anymore, market-leading XD focused while because the the unnecessary We our dangerous in detect whether once A market key Like on more platform. to to was our callbacks. Genius more we more

less U.S. the breast revenue. in fact, XX% of gantry third sales global represented health than In quarter,

We this have in ways. four accomplished

of a breast revenue quarters. product, health the service as it expanded with we've company's be single million business. we last second four would our think $XXX If global the largest more than First, service over of

to cornerstone strategic will results our horizon, While financial be planning continue underpin our service this of grow our the the tight we customers. dramatically with over expect relationships and to don't have we

our capabilities our up R&D on traditional beyond beefed have imaging. we focus x-ray Second,

industry's new the have We which developed images. software packages Clarity fastest highest like HD, provides resolution

to radiologists We And with AI radiography of plan all fully new tools learning software annual for time. a Brevera over subtle generating we our have helps biopsy these detect horizon. strat million Brevera procedure Genius now potential about the cancers. revenue, that and expect to we is strategic products alone drive growth first new $XX the specimen deep integrate introduced based detection, pioneered like

breast our internationally ultrasound, about these markers. now breast innovation In companies four care in in biopsy and SuperSonic health. product moved acquisitions deals XXXX radiography, plan. Faxitron, which and our since and expanding surgery, SOMATEX, aggregate, are are health contributors and we portfolio, breast strategic further revenue our And position customers Imagine, broaden important continuum breast expand Third, These all bolstered $XX the which Focal conserving growth breast to annually in adding are in across include to of needs. fourth, our health acquired for partner our choice health million specimen strengthened to we offerings which and increased of breast become which the us into in

XD to is positions same products mammography with market products, established continue that existing share and have gaining our United leadership the focus in States. the XD Our upgradable

discussed, Spain bringing secure revenue. get customers purchased I've to also new other both countries. closer to markets distributors the acquired are We And Germany, in internally and service additional more products we've and developed and to

momentum Now growing the let's division surgical will plan XXXX. our before with fastest and our Surgical assumes GYN continue strategic to through our Division. its pandemic turn that Surgical

differentiated our opportunity the OB/GYN unique to solutions women's a have throughout We lives. channel to provide strength leverage in

and in remains hysterectomies. expand laparoscopic, products fibroid offerings run. or MyoSure world's huge seen leading to a of still as month, remains hysteroscopic, number It's Since this years future mothers-to-be MyoSure today women, health as of affected you've complicated describing plenty who fibroids the often stronger of remove our large have July invasive Within way While many Surgical, help plan less presence by procedures product within clear among fibroids. they market we middle-aged articles many and awareness after the the to hysteroscopic the women and silence markets. pelvic we that has exceptional are that room women the is mainly and our and such suffer older smaller, in undergo to growth, underpenetrated probably

fibroids complicated we excited to a is is MyoSure the We reach. Acessa about also to system. treatment treat fibroid larger, XXXX acquired very more system perfect laparoscopic Acessa, which as is that in are complement and MyoSure can't used

updated Importantly, the of on MyoSure, included important same great fibroid surgical Acessa We force. plus OB/GYNs now two that its another necessary news management Acessa, recently guidance brand who $XXX ACOG's milestones our to sales MyoSure NovaSure. list and are to the dollar it's in road have use potential on for our alongside on These so pieces and of a Cigna's million rely creating procedures. fit received good medically

development. of management Another revitalization R&D new division tools basically feel fluid however, GYN the robust we two-product show. reason as we ago, was in the years products, A versions we of as new confident and multiple have pipeline hysteroscopes a other is sell products a of pipeline. few surgical these and future Today, in Surgical's system, well our

Finally, States based than solutions many divisions less to generated on revenue today. capabilities, invasive strengthening world, around women opportunities global surgical of the have United we of deliver is less the to XX% the our outside the our commercial since now

call pandemic. to XX a Before Hologic to before the Karleen, the saying like ago, fundamentally over me different today I by months than up turn looks company that wrap let me, just

they We ever have. than have three franchises growing faster

We in regions world. the major are of all growing

We have to have in tests base. drivers new divisions, to COVID upside added with a all and a line multiple we strong provide growth significant our our product new

several and X% excited will our the non-COVID are the business confident and next between for Taken years. over we X% base, we that future together, grow

let over the Now to me Karleen. hand call

everyone. good and afternoon Steve, you, Thank

said, XX%. significantly exceeded compared to from We expectations the third As XX%, our billion guidance revenue our continued testing upside sequential with meaningful COVID and base EPS Steve increased quarter as grew and revenue driven line prior top contribution results improvement by year. our base and Revenue Organically grew $X.XX COVID. a both businesses in in revenue. our exceeded bottom in global of

profitability significantly year compared the prior to We also period. improved

more our As a capital us remained allocation which quarter of result, in on in operating moment. third discuss EPS Further, increased I'll strategy, $X.XX a cash the robust, execute XX%. to allowing flow

quarters the will of Before both our molecular of our on COVID I as diagnostics I an picture than massive strength In our provide the impressive sales. period third decline XX% XXXX often Within offset Diagnostics, complete me do grew more expected results results. that, some compared million to COVID sales based compare prior and XXXX. $XXX.X performance, our of more revenue let Diagnostics, higher revenue franchise. detail to divisional and Providing global on core increased U.S. internationally the growth year in XX.X% than globally molecular the of

COVID testing still revenue declined, exceeded Although guidance. recent most it our

revenue sales we XX% this, kits, the In Diagnostics and teens the the United quarter Specifically, Rounding total grew but we do that grew footprint outside revenue in momentum. pandemic prior businesses COVID molecular COVID global of tests. continues COVID reflecting global in also out globally. were tests and Steve broader year two mid slightly million Diagnostics, our that and better $XXX third the quarter. of shipped XX% total Diagnostics To organically that compared understand the exceptional we Compared ancillaries XXXX revenue periods assay current the to compared Backing mid million in the assay base about gain behind pre-pandemic see the in increased was same collection million are their generated this to molecular digits. About of grew grew If trends. of Perinatal discussed. the about provides businesses, underlying to used underlying XXXX, generating single out Cytology and levels. to XX $XXX of results franchise of of businesses that Health, revenue XX% still picture quarter, of thirds & as the these customers, the let has Breast performance to non-COVID sales grew with you year, remind better our a instruments true me revenue prior our States

now XXXX revenue last performance streams diversifying revenues with As compared increased strong have breast increased Steve sequentially period The to year the three evidence and XX% our reflecting compared and businesses division's and imaging XXX%. rounded, to well of this, quarters. to for as imaging the interventional remains growing prior Both discussed. interventional commitment increasing

encouraged remain in quite continued the environment, still not XXXX we to Although back is improvement capital the capital by levels.

levels new few are encouraged by by strong and continued the in quarter rates procedure with the $XXX.X XXXX double low backlog healthy to However, quarters. third continued Surgical's exceeding of also recovery breast sales has improve screening exceptional performance over to our revenue while XXX%, about products we hands digits. next been normalizing In driven volumes, Surgical, force. and of MyoSure the million

tremendous XX%. million XXX% of a was result. of States, Outside period. million, Lastly digits almost basis, single grew prior sales organic compared of Outside revenue sales revenue sales It increased Skeletal, the in On was XXXX. United $XXX.X the U.S. $XXX.X $XX.X increased the low Overall, XX% up to year to terms domestic compared of in an increased up Organically XXX%. million U.S. geography, XX%. also

the the on basis businesses, by XX.X% third points, our rest the a margin tests. down of our increased sales XX% of move of P&L, nice base million, driven increased of the operating in P&L $XXX.X from to XXX let's third contribution quarter. and for COVID quarter. recovery volume Now Continuing Gross expenses the total in

about increased in XX% from would R&D our for as expenses recent our acquisitions, have growth Excluding incremental future spending reinvested expenses marketing. operating we and

the the remember driven XX.X% with rate operating net Putting and non-GAAP In quarter mainly basis a in altogether, this on tax basis pandemic, was associated cut sales margin XXX margin of given our XX.X%, that spending XX.X%. COVID by third XXXX. quarter addition, the back favorable to we uncertainties points tests to Out XXX mix, States. geographic points increased United increased outside of income in

non-GAAP a our at earnings were net income and top share finished $X.XX non-GAAP end As of exceeding result, $XXX.X the per guidance. million,

cash a metrics. base the highlighting testing, tremendous operations third strong These cover other from guidance, as flow flexibility. Driven quarter flows was million give contribution double strategic financial from COVID our continue were businesses, to non-GAAP strong financial I'll by income, excellent the as cash $XXX our we Before our in and quickly few touch on nearly well conversion. performance of net us This quarter. cash fourth

the also our quarter of enterprise ratio we X.X in -line growth to intend for division-led, acquisitions at top continue acquisition on example, and was cash the the tuck-in for rates. using and cash third end million $XXX leverage repurchased our value X closed we third improve shares and repurchases an quarter, We of share Overall, For million, of bottom stock Mobidiag and that million. the of had our times. $XXX million $XXX of

XX.X% of trailing XX-month Finally, X,XXX a basis increase was on significant basis, ROIC a points.

let provide the strong in discuss the to for decline sales. XXXX, $X financial quarter period, call In XXXX with we again, $X.XX currency our of of year targets. constant on fourth the huge open revenue longer-term we Before billion and expectations fourth the representing versus fiscal few comments quarter fiscal from results a me expect billion, questions, COVID for the prior to benefited which XX% range XX% of assay total of

franchises strong XXXX pandemic very negative the in and rates Cynosure revenue fourth XXXX, to fourth as we expect expect impact nicely grow than of the base In well. to to generated businesses, recovery $XXX our compared quarter million and significantly we levels. above to growth business, grow of so year ago quarter continued perspective, pre-pandemic For these divested the excluding the of of generate compared a to momentum given we less we the XXXX, expect

continue and quarter, we vaccinated. of as COVID more forecasted expect U.S. continues this testing the sales, assay market terms are to last people trend In as we decline to

reduce in domestically and demand Europe. In addition, further summer vacations may

to quarter. fourth assay the to range mind, $XXX $XXX in in we million factors these expect from With sales COVID

related In in million our estimates. roughly expectations, for $XX addition, the sequentially. current down we expected new fourth our generate drive variants that demand upside $XX in approximately our to are to COVID to items exceeds quarter, million deliver well-prepared be Diagnostics customers If and are

we Diagenode Mobidiag, guidance revenue, decline of Blood revenue million forecast fourth expect would COVID $XX But approximately quarter assay million acquired quarter. from to we XX%. excluding net, in revenue revenue, includes to I this expenses, as in related that point and Biotheranostics, and expect low-to-mid-teens million the to operating other $XX to grow organic fourth we out out, the sales to expected fourth increase revenue Screening quarter. $X Our as Below Backing about XX% of well organic income, Acessa.

guidance Our of XX.X%, All tax outstanding expected fourth shares $X rate this EPS is the on diluted based quarter. a to $XXX nets and million out to for of $X.XX of quarter. in the

outsized in XX%. XX% the to of of the translates a decline impact this assay COVID sales period, year to Given prior

We update model would forecasts, you that still is of the As encourage let the due me ranges, which our upsides you therefore your to uncertainty and middle high. you both incorporates downsides. remind macro pandemic to at potential

questions, Before touch we few a longer-term on let open the items. call me for up

do seemingly we uncertainties sales year. a our answer weekly Toward some that No that will which It’s on have understand COVID million desire shortest, and instruments, of grow COVID that pandemic can possible our more our kind and for the it that less as confident As same, $XXX instruments. don’t installed strategic of on exist as you of million revenue rates upside. much to given the anything base this on Having X% than given unlikely we organic ancillaries We And most one going Steve excluding as that said our much potential certainly the we be the that COVID assays the maybe change on XXXX, also sales well in and asked year, you businesses revenue that, related discussed. above end, assays. broad that, base $XXX based is, significant of strong be make for consider sales biggest process our one but scope next would your underlying Steve does, next be are perspective at global basis. conservative do we believe assay of assay's recent we the instead ongoing Many the that discussed, our framework. would COVID than planning to and is that X% accurate are fiscal still Panther through know. of molecular could growth and to encourage stage as focus double,

wrap Let in third Hologic growth by the that guidance. saying up results quarter, tremendous exceeded me that with showed

ask health globally COVID make the company pandemic acquisitions, to emerging from multiple a meeting related for evolves. to are impacts. the with return excluding a and queue. top-line organic With plus follow-up, testing will the we the open call for to question. and needs then your rates we COVID continue women’s as X% the are We operator that, growth pandemic huge as Further, Please impact ready X%, to Operator, questions limit with first to are I the investments a questions. stronger on of one

to Certainly. Peterson of We'll first instructions] JPMorgan. Tycho [Operator go

outlook. A then question near I longer Hey the term on both thanks. term that often guidance, get and

the a So earnings. revenue you the both at quarter midpoint consensus bit fourth guidance below and are of

know heavily longer for as I And X% in the the easy not roll you've then off, COVID. want the You impacted just was the obviously deterioration XXXX quarter to business it COVID got term X% lot outlook. make sure comps fourth that's a base obviously growth, to still by model there's any from but

in we given should near growth here core, could at assume comp or be term? high So the the the the and dynamic longer it term above, non-COVID end

of exactly what's on the ago. with Three Sure, to we're conservative the leads Tycho, in about it each looked underlying It's very COVID in and than you continuing We base predict the week weeks very ago going different world. COVID that starting good be really it's a us about guidance to businesses. day. and really hard fourth day to them the feel the quarter feel should decline trends good

are company depressed someone too year, contributing to franchise our of yes, than well, we based growth where dramatically continue steady focus and X% each think we've to little want comps longer on go far through businesses pretty for piece, next to businesses given term bounced this we So about. good Karleen? think our want to that go saying been. we feel be able feel on I different but don't to the I And that people good is that X% to very the as we And some not so we a back period. about but get

and levels in add Yes STIs that back are that elements franchises about of are related that if and back would are XXXX of well think about to some still just Tycho women XXXX some you the I NovaSure our to not the our to to psychology business, or you levels. think those those getting of

been out you quarter. have follow shares see a we helpful, you the backs right and how up then shift this will think I'm and that you deployment. front, you did M&A here very about X active that's Okay valuation given just Do and M&A more pause going million you've Obviously would here? forward? growth but on capital buy the repurchase to the curious, on a

continue do that continue. will share and active No, the the Again front active. M&A a the given I maybe do other little to and to led, still we Tycho, divisions so flow on quiet certainly think, cash can are still can Diagnostics We for both. certainly think strategy the more it's I a division while, M&A but continue still pipeline and repurchase is

Citi. Out will Donnelly Patrick next question from of come

you long-term I certainly all for one on there. be color may guide, Steve the the thanks, Great appreciate

Panther you get talk do in at that as just comfortable again, to so mean in like just and you you good feel we the the you move terms some test a of base the COVID through biggest I beyond higher would things placements, driving, the include utilization, systems I about of guidance COVID? think there, with Panther look term of of rate we've get, of see in record about guess various the how is that utilization work One increase attach healthy installed piece? systems there's how guidance, the But this about many out their but of guys when there's what that questions near good seen well. ton of dynamic? and beyond out and mean kind pretty I in that in winning terms share maybe obviously,

really is comes ongoing these across some actually placed contractual as Patrick, provide with an fronts, COVID multiple Panthers particularly the Sure, revenue we've it on both basis. to obligations

your that there's led and common The automated a as tougher tougher platform, start labs labor and future, Panther, the labs there businesses. there sense with right, and basis be to to been look all of level the tests. and other the the lot you've instruments to the to going customer at particularly really way the systems in incredible out the And has an my have going important to to automation it the I of is best of simple, provide -- shares to hear as market now. look is out what unbelievable simple we combine. us virtually you of where super be to our that But when think, is what The automated well talk the enough most is pieces ongoing approach on highly

techs those, and to want record to lab months of XX And and and just this placed inventory and we've consolidate bunch got still that. where on off last a and This in they're is they delivering happen. multi-year over. think want a and to I placed of or sky, customers from pre-Panther of running COVID years, we track them. seven more of think is They stuff. more what six they The so, hey is hear, other still over bleeding get on Panthers Panthers inventory people's of to year, stuff on we've used for long-term them, in just we are not Panthers want It's keep Panther, everybody hearing the went the especially, every some a put out of pie everywhere been is some more could in what as every the continue got our and going which get and to doing consolidate, we they to days we test every early that machine,

So the space not in help space, us I same high a really it's platforms, automated for good going high not all volume established Panthers throughput the are all emerge, think itself boxes same. to reason. the

about think Hey Pat when strat briefly to those week, you opportunity weren't for only to you I about that it's is, just business issued our things are screening put you testing together although [ph]. Mike, the and gonorrhea, like were we think guidelines for of plan [ph], about we certainly BD molecular aware think just chlamydia our when molecular that add when the helpful think I universal when the Amgen new testing might around CDC for think last

as something of I to at to that categories. we it drive largest demand those our were the speaks to but with expense primary lab our and time, customers So, said work in ability certainly wasn't aware

that $XXX about should thinking just just the COVID know have next That's the you pricing helpful little a is was bucks, follow I for recent maybe year, XX how been quick we on that forward? around the piece. shaken of more two perspective, a another thirds What on to about for floor the you about go Can way that and business you. then million just the talk Thank kind is we the up that OUS, right in be as pushing teams? pricing contracts Karleen, forward that and mid think of mentioned

XX from those dynamic I see revenue, average being and come XX, yes is saw we certainly, OUS contracts, the of down up to pricing QX we away, thirds two think closer assay mid to to then I we'll we we'll renew that given as that even average of from Yes, what think, QX that's with ASP we'll have as probably an to for end goes maybe pressure, profitable low the if and pricing see coming us. teens in still down pricing very some that reimbursement but

next And to go will Kumar of we Evercore Vijay ISI.

a on for talk question. little end I assuming which X? Hey behind a towards X Diagnostic higher to a May some franchises? of lot little thanks to next few of taking versus assumptions are lot best the at maybe be it cadence, That color. my the Steve, appreciate we Breast the progressing the guys, versus the X details of X X here, years, bit over starting numbers, the of -- some for a and details Surgical or plays more

Vijay some frontend faster a see in range, think we we year-over-year. highest not little franchise roughly and backend level, see at I bit probably changes don't Yes, that loaded. It's dramatic it's not the maybe being each loaded,

said let's when always to we're as we this until as in, coming So give those but belief than feel for guidance. our growth company, we're our think are struck, our But know, and call, of I underlying we to we COVID we'll forward. stronger faster each going is you emerge like were exactly going the formal guidance, wait XXXX growing businesses not a year-by-year give and see rates we better well ready November what is

and what excitement I would just it's gives us these your rate growing is by it's point, Steve businesses confidence the businesses. been been of all at so Yes and that the rates, historically other, driven when is add the that the this one growth to all never

Yes, and from lived week which as kind through Breast back think early having of surgical some and down. quarters the Health it Vijay good that you and well know of peaks on then valleys, the I magic and even

acquisitions with of magic accretive time line more it's the things growth effectively to coming think with and I the of it just there's now the us it's the cadence just, are building the supplemented both together. service, but underlying and strength and bag, giving this no in base, rates that there's installed lot and we've a domestically that profound and product just the flow of each to strength existed businesses been of in each over we franchises, products has top a the where see a internationally then of

helpful that's a translate to was for And of guess maybe so going back margins the And you, the X the years Steve. line? bottom Karleen one the a debates or to stock I on some peak top question. few ago, the X on should what

right some margins CapEx digit and on So growth trajectory? now where logic we earnings double the also and are in

trends that's Yes, expectation. high I think cadence prior digits I think an looked and pandemic I a our so don't either at if -- certainly I to think unreasonable mean, low of the growing historical single you regular double EPS

that that over margin income look to do, dilutive are going QX revenue XXs. operating the X% forward, and kind low you term near also X% XXXX is would little I to quarter to but acquisitions, we to before which certainly was in go think little pandemic, as the be side I to the if lower any growing we a to last of probably COVID be a say faster move that they can our as international the that. are than back accretive clean is on percentage, us, Certainly I

Meehan will Research. we to now of And Nephron go Jack

you. to turn wanted Thank to color get the back and Panther afternoon. trajectory. on Good some I Diagnostics

your higher instruments XXXX get are than pandemic. I got like color are interesting doing It trend many them color you're have the of translate curious placing you seems total other think a thoughts, given in is systems to there I on just the in systems I how just And rate here? appreciate thought at I from if how to we at inability and will that where it record, past COVID look but things? now. the was to or you I'm only the test still any

seeing next yes to year think I where to place early call -- would demand. think XXXX, to And tell, look already think, some we're Jack, but I we as So starting we little okay, we're the strong pretty Panthers. about, we still it a

I we're And a fall to just not literally think placed, concern XX-XX off off. in XXXX expect though would some years, even four that I that would So about cliff, we've drop months.

to in the we'll plus fiscal think I year. next in XXX-ish placed Panthers be the be even still probably

now see our think out. running to right COVID out were continuing seeing today encouraging back some is and of we're flat don't very what I I think running, COVID, part picking up demand, folks So a them are that of flat that of we're ton there's

are starting I up see starting back back women's picking go think to visits to as them in. we're

with the tests can batching you to women's the even needing it's batch, platform is or health simultaneously. a COVID running loads back viral a as not So to all part the magic of of and just start get to

I about So we're pretty that. feeling think good

you humor molecular, look timeline Novodiag give updated us enter the can sits market, you can how and can and when us you know for think to U.S. and for acquisition, an Right, it the the out contribution with platform revenue Mobidiag this think as Panther? sticking you next XXXX, here you you can what with to look like

towards Yes, the horizon. plan Novo is end I think U.S. to strat of best think the come about to that the way

work sells years and sales In meantime, we've interest Europe more force Europe, a it. since in in already that Panthers. of to installs I we do get have customers got we've few think the some worth already in among our acquired

I this additional I XXX think in as we opportunity beyond And multi even business we dollar the over of probably of got becoming said to into really get to into we numbers. I that, the That's horizon the that, strat inject see the plan time. those to that closer really get to U.S., end life -- immediately we've million some So think a particularly, do end script, think, that. see to the

question from Brian And Weinstein Blair. now we'll a of William take

kind STI democratization we're place you to talk company after in longer of Dustin on as does and term? Hey relates And testing been of you viewpoint rank testing do regarding how where and going think entering testing, STI number you on market. centralized Brian. of this diagnostic for companies market There's the line take your a about seeing plays where particular where a the in of guys priorities? Can guys, talk testing of will terms is of kind this it this lot

a of in We the well in and day we first the the positioned, talk decentralization. that There's with customers, and with time frankly there's for the and projections as home increased already companies real other operated always in. haven't decentralized whether from stuff pretty the a a off, Yes, end in I think, just established lot STIs I at ourselves of it's Panther. think there for do collection we're that world. have frankly hype opportunities necessarily our footprint see both we're we And as long presence see every market or putting lot out competition strong we've with of also a

came also So I see it's drive also out last back important that over we're time. it's to the think week we and have the ones guidelines that that market helping been expansion that to CDC significant just

continue more So being tests in certainly done to we more I think there be different be will competition, there. places and

question just a the on diagnostic I'm of an but update years pretty and a And are update expectations, doing thanks, how to give can how seem Great, bit, that. if for going previously? I looking integrations Biotheranostics, the you little appreciate but be were this in wondering versus going general kind of businesses earlier goes for in Things acquisitions. well off guys recent these

over They already people. Diagenode been one. them our I Hologic. of And assays. in are the part I've has Yes, it. team San with in for I five really some right here very be is week our our this working love of gone the integrated We They've to years. well think Diego, Biotheranostics Biotheranostics great team. It's Belgium, with seen the think absolutely a excited down we've San developing integration street Diego facility in been well

and seeing Thornal to with masks don't exceptionally we're Kevin kind want great on traveling And there. his have we when Finland over time made else. trips at everything Mobi, So and people multiple have relationships of and to a what and hearing. be those pleased lots distances I'm team of

to been getting teams the have Our very teams there. over close

together. really, it's and and the advance really lead in teams at know were our getting the feeling of to teams the to acquisitions diligence really in deeply the So chomping good involved and bit division where work power the

just I of Diagnostics employees that's And passion, we've company got promise we've bigger Breast between and think we've the think purpose, a the big but been need what's I good recently deals got I Health genuinely the American purpose. really think there. on to So with in in much some excited profit, tax practice a old not companies, those that's I on particularly it be part the three done and employees, of of teams the our the ground Europe actually been each been a company is only as same and and it's to of done resonates lot over Europe SSI particularly a the deal focused each those of companies, think and a on have

Surgical, coverage to just Cigna, there is that's do guidelines and from add from so I'll what good there. in Acessa excited ACOG going news XXXX. our for acquisition, We've And got we're some FY in recent

And we Jeffries. go to Petrone now with Anthony will

Anthony, you are there?

have on mute? And Anthony this open, line you your do is

Well, move on.

take question Morgan be from will Savant of Tejas that next Stanley. We our will

evening. good guys, Hey

for Panther can the that last particularly few on one replacements evolved Steve, to customers, in share whole How with mix new the you're over uptake? logic the and you specific you, quarters some those to color So the has placing new menu in terms that of Panthers customers. terms of

certainly techs just Sure, a a of we I customers, each have frankly existing What on in revenue, say, come as been for to been place qualify don't would they on the with and and up is have COVID the a incredible things. down and for lot little was other of assays starting them over impetus new porting a are frankly the customers. lot other qualifying initial of able the lot air the with we've bit the come they've then customers, that, -- COVID new detail been to revenue is, as them but seeing lab

as good trajectory business very of think diagnostics the feel evidenced So back. our we I core coming by underlying

business COVID interest is even vaginosis, in [ph]. tested surprise new we encouraging think indicator in a But [indiscernible] BV If the really Mike. [ph] is is big our our what at metric to coming in. as you're it of asking got about, papillomavirus big chunk no as that that's assay selling what's of chunk an in bigger look the record we've Tejas, business Hey in, than a biggest probably I we've our HPV got of coming

our a So been out menu often of so about oftentimes and reflection existing comes terms what take same it new from type, to with are sample build test and little encouraging. that's ability we bit from talking before of the that's of in a

and Can contributions just about as assumptions of around the perhaps what ones in about you in fiscal COVID for testing about upside few then helpful. uptick variant the sort sort all would any you here. a floor fourth then you unrelated very testing couple spoke it because of of million And dynamic? a pickup $XXX a the Karleen Got of weeks terms for leading Delta at even all potentially outline your $XXX seeing relatively that strong last are trend in and a were be season, Karleen and for in million an XXXX. to the quarter of Delta flu reversal

our Yes, was I would a say our approach QX similar the to did looking in actual, July U.S. much trends. recent QX pretty to at outside we at looking and as the was guide then at what looking commitment, what's contracted

most I numbers accelerating provided. the for to part likely be flu upside would So season say as those upside we've Delta the with would that the well as

will we of of America. now to [indiscernible] And Bank go

for Dick. taking question. Hi, Thanks for on is John our this

companies quarter? the You've the this to specifically before Thank and alluded and kind today think pushing into growth of was contribution what we landscape going of landscape in had revenue the in was XXXX, how should you other I be in ramp it's multiplex that about have, molecular Mobidiag's this wondering the competitive with you. me also driver and course, for leading on

Sure.

in as -- it the years think we see I clearly United we the bigger come getting out do much States.

has that is -- So been a right now. it of European all it million in will quarter few right Part business be a now. particularly

see you'll year. the build it I think over

COVID Now year. some they last revenue had

business into New core see Year. up the it we're to we again, the going starting over if here time picking and So even

and divest again going that markdown the the in you European well? want the you it on in assets that be may integrations [indiscernible] of you to most or Diagnostics the is other any there are near-term the all then, front like as know of seeing Got

did we're with keep one now I we think right feel alone, lapping what good of continue now just be open. Diagnostics I a ears us we of what everything three in four-month have deals that a it, kind integrating good way think allows accelerated call and nothing years I next and about three in we covered opportunistic. and acquisitions period in feel announcing about that years to we'll of would window, think to actual to short There's eyes we time. were say We our of deals couple to in some it seven-month that we it right very closing we've that of really our hoping do. real and have and multiple three window to a six,

but and into heavy gaping pretty there's now open, side, we're the holes mode good we'll integrations that the on eyes continue So our in we the hot keep execution portfolio. execution to tend be but into to our no and

Masucci Company. go and will And Cowen now we of Max to

and emergence you the that detail how Hi bit business good lately, stands what's are trended us blood you details and around more delta of the more give afternoon, the thanks for today. of where seeing impact Can all sort recoveries wellness screening for the has with a routine backlog recently just just variant?

Sure, future bounced The have I we fully back sexually they really not core XXX%. on back, but most when a think some we've the the pretty more opportunity overall recovery see little seen recoveries we've places back mammography transmitted it's seen to of think that as, yet, side, will I mammography. women's close good and tests and for the infection in I health, Pap think get

I scheduling certain geographies little recent going and or to there think that. small it and seeing very don't right the forward. I here may systems material trends But hospital that visits delta with there will think here and like pockets things not be are be extra quarter now we're they of

that demand times? changer allowed share higher for or testing in low at higher time? customers over do Mobidiag plex the the seen game it, to capabilities in an you rising serve plex testing low both a as market as taker today segment you And Mobidiag followup, in compared industry a view pre-pandemic plex bigger just or decentralized a plex and higher just to have Got want or you but has plex setting, level

us. going we for The us in a in growth great think to magic addition platform it area in us for platform play think very Panther. is certainly I is, give think does new I completely well time Yes it's but it a to over be multiplex going to both, the

those platform, all So and we'll start it additional to just to European Europe getting then in as we've around we've at while got Mobidiag over expand States. time few ultimately placed, working Panthers subsequently both be the building right a and the a -- the largely now the countries and rate across bring it menu more in Europe bring now higher will Panthers northern up frankly it's it we we

And we one have time that come final for Anthony question and will Jefferies. again from from Petrone

between Apologies, on two calls, I just have hopping just Diagnostics.

recommends universal adopting of will in it that sort screening, terms it it guidelines, CDC of protocol. the site-specific on be looks First like but

a forward? So lot. one second quickly I'm OUS that testing, competitors Thanks upside wondering you the see Aptima thoughts have tenders. referenced is that certainly in STI of just franchise, for the just represents participating can what rolling actually early on company mean what represents And your and that And tenders if out? for tailwind? going Combo how any on COVID some of wondering the kind but

can quarter count they two the from deliver. our yes Sure, built very When I'll we relationships thirds us any very the internationally of on last our the relationships strong and certainly the health about ministers our known COVID frankly we to involved said tenders are revenue. revenue upfront, certainly ability of COVID establish in take frankly serve count as also customers well and on around to first, Panthers strong for international. can it's they was We've have world we some

So up got to new regional really we us. in good while these for really, your we And CDC feel pretty those. involved it specifically, we've on the good going back about guidelines. And being feel things it to first of couple leads piece about

more also Diagnostics them, opt and opt on physicians our team, First, and out calls to own going sales an but really educate system. into importantly the from effectively

be who the all the on way. these have be default in been other visits have had opted and should really women So there go routine should so that tests having then to done many

years, young not. and We'll lot market So that not, to move expand test and human women wait, the decide asking doctor' quarter? we think to the and -- because the are and doctor coming okay, about the to it's Probably we a here has significantly sexually a get active are of this therefore think the written. they so for the s when are great do they kid health the at in if going if we to coming they mum or with I the this yes is answer their test is question office give affect

that hey, As is to we're not soon just as I the order ultimately default you going this a going to becomes better but really anyway, much, much better be, think way what's for probably handle might on. a on society have test

Thanks again.

Great, thank you.

looks queue. Kathy, can left one Hey more the like it quickly still got take is We we've if he just there. that last question in

Certainly.

to of go BTIG. Zimmerman will Ryan We

Stephen, me thank Hey Mike, in. thanks Karleen, squeezing for you.

Just one me… from

was it know about I I that. sorry done it, wouldn’t if Ryan, have you

Thanks cut have off. for well, we on hanging couldn’t as

historically provided, mid can as and from digit business from sales, the that for certainly sales, the tales you've just of the you single declining rate within Breast the of dynamics over dull given question, kind as long kind over people again me? do sales years? that and guidance up a about you said, BJ's digit, that it rate think three shift have of move growth range cliff, gantry of that what with Well, low time growth So is called thought out Breast one growth, Steve percentage of single how with

Ryan. Yes

XXXX, but boom-bust, by came stuff also company more we're by in we that me early all to into who both that to do eliminate gantries and stable. our give ideas bringing and the the the Health a Valenti goal a additional more but gantries I want business, the cliffs has and the retired way very business joined better to Pete Breast from along consistent much subsequently were Hologic, going where exactly entire in what diversifying, continue encouraged much to when think achieved make the we've the peaks and and was he

little which ongoing that have. a biopsy market use to are brings, accretive it SOMATEX markers capital, really then is bit there business, adding has that we the revenue been but gantry underlying be stuff we those with is what things, stuff trying a think and that we're Brevera Surgery Focal a these then and I the the core disposable So but Breast service it's little see needle streams more of of as getting now bit is the growth whether a and business to the that also [ph] and into underlying

going Breast be to really Health good the growing So is in think it going fastest business? not, be Probably but feel comfortably is range, to that it. about we I

business internationally strategy markets will other division. [indiscernible] Breast believe I that direct, to accretive be to international think commercial growth we're general go I I capabilities looking Breast just under had about that improve overall managed think go to about that and that will there grow with -- the -- Kevin internationally continue Breast of Ryan, a would direct you helped are be in we're was seeing the to Yes business, and to our that's Thornal if historically add work who dealing commercially that think international going be

And afterwards Ryan [indiscernible]. will being at Mike yell

you. Thank

Thanks afternoon. everybody. We appreciate your this time

quarter This the concludes earnings a XXXX third good Have Hologic's call. you. conference evening. now fiscal Thank