Hologic (HOLX) 1 Nov 222022 Q4 Earnings call transcript

Good afternoon and welcome to the Hologic’s Fourth Quarter Fiscal 2022 Earnings Conference Call. My name is Jennie, and I am your operator for today’s call. Today’s conference is being recorded. All lines have been placed on mute. I would now like to introduce Ryan Simon, Vice President, Investor Relations. ahead. go Please

Executive Good fourth Jennie. today thank for and you Steve Chief Oberton, Thank Officer. Financial fiscal afternoon XXXX Hologic’s Chief President Chairman, quarter the me and earnings joining Karleen MacMillan, our you, company’s and Officer call. are; With

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

call an website will replay deliver them we We post will after a November through our also available and well be prepared updated as XXth. shortly of presentation remarks this to our corporate as

COVID-XX safe found organic filings. release. by Before excluding statements we differ harbor and to revenue may revenue excluding and begin, statements included to be Blood earnings that organic define we currency GAAP constant measures. measures these business those release as Screening revenue, which that our one, Two And during non-GAAP would discuss in like acquired results our Also statement year. can or known to materially the we A factors from include the forward-looking. less are: COVID-XX, non-GAAP expressed of inform to we two, you and unknown in revenue involve will SEC revenue, call, reconciliation uncertainties and Such than sales from which one financial for be certain Hologic in Diagnostics. actual related certain earnings owned businesses risks and make today excludes COVID-XX implied. assay product revenue, discontinued divested cause we this will those in referenced These

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

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

provide results revenue for to for Halloween. fiscal quarter. It and results was non-GAAP good earnings another Ryan, posting strong you, our quarter and guidance. and was fourth exceeding while XXXX. per closed Hologic, fiscal of performance COVID $XXX.X financial again $X.XX, the the business share navigating XXXX afternoon, and Thank and XXXX delivering we dynamic We're for for base once was Total outstanding year guidance Happy macro pleased headwinds everyone. discuss our million both

We the of million buy shares quarter. $XXX also back capital in million X.X deployed to

you our keeping $XXX cash repurchase year, X.X flow those full shares, we confidence future. of utilized for million score, in the exceptional For million reflecting great of our to

In provide today's a our high-level into share of on quarter strong call, we'll insights also no to forward as reflect fourth these Overall, look future then mistake, first our times results. make we'll in our no performance coincidence. we doing overview For our XXXX. full is consistent and so, year outlook turbulent performance

different the We than company COVID when are today pandemic. a we fundamentally entered

are We you still our also understand businesses. the of of strength trying core to that some ascertain

listen surgical core for fiscal closely of franchises, look expected top produce we double-digit low ahead, are XXXX. diagnostics, each and breast As to our here, line growth

our out set our pandemic both into passion and years champions we health. two to to are much do thoughtfully a and upside As stronger we strategically just our business from women's the ago, half reinvested into for company emerging earnings be we and over

have and the of But achievement. the will will of more today, business That is much thrive. our foundation we on live that these of face Our anchors and our company was demand before. today, a our Hologic be the across market-leading pandemic organic our we real in business form was run plate pivotal ability said, These drivers additions, the to ever adversity. to Under for inorganic an that our we landscape COVID step-up pressures franchises each growth growth the companies a all during drivers of layered transformation times. volatile than testing solid incredible stronger address and Through in ignored. cannot divisions home global the Hologic now top in intense core because macroeconomic

on recognize in been capital to it before, is count us on our commitments in our the equally As history. even to that important ever can the sensitive we've revenue and our has face you least said deliver XX-year uncertainty. of It's volatility

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business is our purpose-driven healthier Our confidence day. unwavering around and everywhere, strategy, that conviction lives purpose in is to strategy our every enable by commitment centered underpinned our a business our to

our the Our to women's continue health to and passion path the achieve see promise science to don't in and ESG of to as mission trend champions Instead, that our or our and improve women's sure. we elevate continue strong fad. order world. must on We for commitment results, a well-being to health know we become around financial and global our

let's Now quarter the to turn results.

businesses. are and strong Panther question, expected, performance molecular strong. is utilization To wondering. both primarily by Core our As we're many was sure the surgical answer our driven diagnostics of you

legacy our Diagnostics Molecular excluding robust This exceptional molecular of by fueled once more expanded in was and again Panther being by grew in of and assays our newer Our driven run business QX, north growth installed COVID, XX% assays combination portfolio. primarily a broad-based through base.

legacy while rate. our panel, business lifted and newer growth portfolio including Our the vaginitis MGen STI our virology dollars contributed growth our assays,

in In of organically As around grew over nearly Bolder A X,XXX including XX%, business the for X% X,XXX fiscal now acquisition. achievement exited our we remarkable world. nearly and have the slightly the considered we Surgical, Panther Panthers placements, field. Panthers placed XXXX north

and will as our new Bolder MyoSure, Fluent we pressure our contributions said as that, expected, XX%, strong the business as abated in confidence that the the drivers volumes return shortage as anticipated, have saw our shortage quarter, us Powering Surgical on Health, business the As was worst the Breast surgical behind is throughout the lines. gantry COVID the and business business adversely solid performance same Having from by primarily the In were accelerate in XXXX. driven Acessa. well of the in and procedural return business. growth and from and we down acceleration impacting that QX, chip

Breast the We depth will gears. on call. Shifting later go into in Health more

We will full reflect on now our year outlook and XXXX. results fiscal for

without Diagnostics at result Surgical or long-term and grew of X.X% a sales that For XX.X% chip X.X%, XXXX, shortage, above the clear would gantry our declined been grew our shortages. Health each chip and and driven have by businesses it as Skeletal is solidly constrained primarily very of Net guidance. Breast

of currency, annualize they constant exclude and well discontinued exclude acquisitions and these as as As and COVID a revenue. are in reminder, until products also each assays figures COVID-related

Surgical. are landed impact And have We that extremely the both concentrated Diagnostics strongly we in we Breast of and high confidence XXXX. Health will on proud where in rebound

base, at call, powered including by as internationally. each double-digit XXXX, division we businesses, growth we of division the to division, is mentioned by in expanded bolstering well onset in our forward growth our from growth low strong Biotheranostics contribution as of expect achieve Panther expected from In international, expect double-digit XXXX. vastly Diagnostics, low as this Mobidiag growth Looking from sequential fiscal incremental the installed continued for the

volume more on Focusing diagnostics, thesis more on menu and centers more running systems. Panther on growth customers our molecular our

in to continue ramping customers we and molecular of our broad to Panther our end utilization, To of customers positive XXXX, of spoke pre-COVID growth to were the signs Moreover, While their new COVID utilization, non-COVID to US during least future close of customers XX% are today. As assay. menu, fact are the now on customers assays on more opportunity US one four the what shed Panthers, already XX% we least improvement Fast QX, With at fiscal seeing future sites. customers on are their the of all forward over in other customer over color a we're on days in over asked, COVID. light are at XX% one provide business systems. about utilization of Hologic impressive nice signal still running two strong still assay worldwide of to at new these QX assays are ahead. acquired More assays, you early of at our running least at in we customers, COVID? XXXX. running new at new of additional last Many non-COVID their are of that that Panther well-positioned is at four double-digit Panthers we other least XX% of running least the close, core running non-COVID XX% about over addition and quarter, Panther

expect to utilization still positive and While quarters these to we years the in continue early, come. trends

Surgical. to Now turning

Acessa plus two last We Surgical and Consistent XXXX, the to we lead believe low XXXX. will the expect and in double-digit MyoSure Fluent also growth quarters of Boulder way. deliver with

our Health, our strong exit we business continue division's accelerate a sales to of million integrate the tailwind to revenue our coverage and should growth complement Longer we and to that constrained plus Breast from expect and XXXX, $XXX is our will MyoSure surgical term, line for comps. to laparoscopic the expect acquired into laparoscopic supply and XXXX as fully We for to In into goal growth. Acessa top over access bags low into both build improve assets double-digit physician portfolio products. achieving be the brands continue our time and Increased payer Boulder force. surgical NovaSure the market-leading

us. worst confidence have of We chip behind shortage is the the

supply should over as it XXXX. normalizes, the chip of As course

gantries to position the and business our have we we gantry of our work as XXXX, shortage reason gantry the to to US year. Frankly, backlog, giving we rate, are believe the competition. placement we down to grew have slightly faced ground return historical in we market-leading run presence the the maintained expect the any opportunity fiscal the with Even internationally as our We to exit in above no strength. we perform

we the for continues rate. a orders receive fact, continue healthy gantries In best-in-class and to grow, backlog to at our

represent enter capital the Despite tend price pressure in confident opportunity gantries importantly, customers understand care. also Gantries even The is environment. reality and macro for of ability the budgets remain more recession. this place be at to our we increased lower a world-class we that value-driving capital our to may capital patient given point essential equipment spend. gantries hospital if also challenge, face a for We both

business grew continue now business even growth poised each will with tailwind be XXXX, powerful supply. chip gantry just and X% COVID, north International our organically, of In and international to is international a and growth trajectory. strong lever its headwind posting of nearly of XX% continue for the a revenue growth constrained excluding total division. our Finally, to

our and we our our patient strong sustain we life-changing our To power of to our COVID response the technologies we access results, financial from Health Hologic continue deliver are our the drive COVID, momentum purpose reaching initiatives, Hologic, confident global shareholders. to invest initiatives results. strong to and and achieve will strategic on our know while excluding will growth strong continue perpetual of to strong From by international will to line return Global education we and helping double-digit access and must like Women's forward more in technologies. business, Index we Looking and top delivering value investments, our our the to cycle at patients, XXXX, initiative. and conclude, business. financial impact From our for center These our created continue will innovative, groundbreaking to all results

year like about to leadership Karleen, to finally, excited excited would dedication of around congratulate Karleen. where where personally the about And we that With and our every our are global purpose call rest employees our Hologic. and we by each call that, close me have one over their incredible incredibly the let of to at me we over X,XXX and from saying and world me headed. we're been the the hand team, even another turning and Before more thank let for nearly to

you, and afternoon, good everyone. Steve, Thank

core that as We growth our strong pleased performance, as fiscal posted position the These to fourth opportunities share businesses, Growth and results off excellent diagnostics of quarter to to capping period ahead. tremendous was lie XXXX. franchises both our are well very highlight as surgical by strength year. the powered in an current end close financial our

a fiscal of are quarter this each resilience businesses a For growth second Breast to we proud catalysts. teams. showcased drive our Health, multiple are forward. And in excited In as look momentum towards of the these XXXX, we our row, we

rare still constrained, problems allocations of the that in vision the chip the supply are our worst we chain Although believe are view.

As our when revenue guidance more continuous I next and we should see detail XXXX. for in will year, chip improvement throughout highlight fiscal our discussing thus supply in gantry

sheet balance results, it to before that a strength is as fiscal reiterate Finally, XXXX. to head our is divisional on important we key moving our of point into

structure business target below is incredible remains our and pristine, Our given flexibility, our capital increasingly leverage confidence range uncertain environment. the providing far macro and rate our

$XXX financial and will I more our This as In result now exceeded results. on, profitability total nearly million. fourth Moving estimates, was in on again once was despite guide. headwind million came than our midpoint revenue guidance, of the $X.XX, provide our a color higher significantly higher EPS than greater-than-expected quarter, the at the revenue the $XXX.X $XX our midpoint million of of approximately non-GAAP quarter. $X.XX prior And in roughly FX

compared businesses In to to of Turning $XXX.X XX.X% our the revenue prior results. global year. million Diagnostics, declined

state result. XXXX driven Delta than the vaginitis of Diagnostics, important well of However, in our revenue XX% testing the is business broad-based, with in performance COVID-XX. quarter, legacy products. results and variant. Panther was virology a These both solid quarter molecular in to note performance again organic by diagnostics as amount our onset conjunction a accurate the in fantastic extremely exceptional making fourth more COVID growing the quarter excluding the continued adjustments, to these XX% as of strong was Therefore, of a business. our revenue Growth business fourth base when more quarter, our of portfolio, it success in the discontinued we of molecular fiscal increased Diagnostics depiction and impact Within the STI strong, exclude traction of panel our our molecular that elevated of due see ancillaries from in our COVID small in highlights business menu. is revenue that related revenue, was last worldwide When assay the to

assay of to exceeding the quarter, it in COVID previous million guidance. our As relates well we COVID $XXX results, generated revenue our

testing COVID XX% terms our geography, US nearly split of in revenue revenue the representing In expectations, COVID the outpaced Domestic of COVID revenue period. demand with by assay assay total

compared expected, year. As Perinatal shortages. expected, and businesses to continued as prior X.X% primarily XX% international our revenue by Cytology Rounding global was million Health, increased Breast supply $XXX.X In moderate. driven demand out of chip Diagnostics, the to down

For supply to XX%. Surgical, guidance. with prior chip than $XXX.X nearly revenue fourth impact acquisition, shortage grew Boulder of quarter in QX, excluding the line the And In revenue our the was X%. million business from grew the more

in by The as our fiscal MyoSure We with are very encouraged we third momentum by our led continued our again fiscal franchise another the strong and were quarter quarter from results into recent contributions saw Fluent quarter. acquisitions. division's surgical fourth from

to Lastly, in our Skeletal prior business, revenue of $XX million increased approximately year X% the and compared period.

rest in the other G&A our of due R&D expected move operating of driven higher of primarily million associated period. forecast, in quarter $X.X income, in of than let's the Total Gross COVID-XX to for was income spend hedging testing of decreased our activities. marketing million, strong period. ahead quarter. foreign X.X% Below offset business within Now, volume year by base expenses This to less and was the $XXX.X sales, expense non-GAAP fourth driven results on less to gains our the compared operating and margin anticipated, fourth P&L the than the partially higher with by exchange by prior expense. was and decrease XX.X% an

Non-GAAP margin previous net EPS was $XXX.X tax our QX Putting net came XX% together, rate in at in Finally, million our income and as ahead XX.X% estimates. was QX and both at of operating XX.X%, for margin was non-GAAP finished these expected. $X.XX. pieces

the ratio $X.X balance the cash on quarter. Moving X.X times. our operations strong from a on $XXX.X cash billion Based of our on million sheet was cash had P&L, conversion, leverage from we was flow in fourth

in instability today. positive to balance pillar a excellent although valuable tuck-in teams of M&A be especially and of are our have Our active remains is Both face sheet funnel cash, remain robust. of environment, but to we attributes division and cares in continued build strength. in like cash each continues macro opportunities any potential our generation our we And

an million. a repurchases, approved share quarter, Directors the integral to Board moving $XXX million share up deployment our XXnd, fourth five-year $X September of relates Further, X.X new capital on remain shares we to billion. authorization repurchased for In of repurchase our forward. As it they strategy part for

move on fiscal our year non-GAAP and let's guidance financial quarter updated XXXX. for full to Now, first the

total As expect organic results only Therefore, million. with in strong deal first again range of guidance guidance each to our quarter our until our the a $XXX revenues revenue of XXXX, organic base. revenue annualizes. Boulder our reminder, acquisition quarter $XXX in excludes organic we the fiscal quarter from second excludes Boulder XXXX. In million becomes of financial fiscal first

significantly This $X.X million slightly of constant XXXX, year conservative expect dollar, full double-digit and million to very with for XXXX, unpredictable. all the total billion, significant US revenue in exceeding in COVID to foreign To of XXXX. when revenue of currency billion the continue are the assumes strength headwinds organic considering levels. taken we assuming we a our fiscal the note exchange help the For we in quarter each $XX Please view $X.X modeling, excluding approximately have low of that growth, more markets for than pre-pandemic guidance division while fiscal year. be the full $XX the currency of first range

molecular we Breast grow to Core for XXXX. the divisions, low of double to terms we drive Surgical growth. excluding impact of digits In business Health, Diagnostics, In COVID to Diagnostics, expect and our continue our expect

on through incredible tremendous automated scarce to remains Our our on for automation. the assay our opportunity are this capitalize expanded on scalability to a deliver is we resource, menu, utilization consolidation, labor eager With Panther this assays where our In base. Panther a to nearly XX highly customers proposition. and installed benefits continues increase environment, value great

than units have QX. XXXX in placed globally, mentioned, X,XXX Panthers and fiscal in Steve XXX as Panthers we more now approximately placing Finally, XX

on Panther will cadence. annual to return placements an reporting forward, we Going

Breast to Moving Health.

the are We excited ahead. for year

Our best-in-class customer hungry for base thermography is instrumentation. our

We the the we optimistic should exit remain And allocations XXXX, expect throughout improve only while fiscal to at therefore, levels. impacting two revenue continue to have quarters will gradually year. that we sight and of out, normalized chip division's throughout to supply or business increase revenue the gantry about line XXXX near

relates prior we our not fiscal be our by it expect Breast chain of that down double revenue to given quarter digits yet impacted Health the As supply was in low guidance, year to XXXX shortages. first

will reflecting Health digits, full the However, our double progresses. recovery low year, for year as the Breast assumes guidance grow the supply

Finally, than but We broad-based notable drive Bolder. MyoSure anticipate expect to well Surgical, growth ever our will laparoscopic we from more system in Fluid our continue lift before. Acessa as as expect and portfolio of growth, also management Fluent

state. we that, terms messaging, COVID quickly assays accurately given it sales, believe seen said COVID the too change In we've course, pandemic of our we could prior long-term. an of with the be endemic Having largest one molecular early is believe consistent over forecast to still how

As full of approximately we and in be expect XXXX first amount a $XX million be the first $XX for for of the year. million assay million COVID expected result, of year. revenue to a small discontinued quarter related full million COVID are items, to inclusive $XXX product and sales $XXX in the the quarter

the down P&L. Moving

seasons loaded of be we year, half XXs, operating full anticipate revenue, XXXX to COVID the Please gross will first margin is be the which winter For margin coincide the in US. approximately XX%. to note our and our we with and percentage that the in percentage fall accretive, front-end the margin non-GAAP non-GAAP or to forecast low

persisting In addition, higher guidance elevated costs We input to foresee these incorporated relates again as have inflationary our costs. pressures it XXXX. throughout we into

spending expenses, to to year. operating prior of be terms expect we down the In compared

around such to for income, onetime lower and XXXX we will spending WTA Super business will fiscal items, our other Below such expenses as be had net large commercial higher our our million XXXX, invest spend a in as fiscal as we Bowl initiatives expense several be While continue to in quarter. expect partnership. Marketing our operating $XX

conclude, future of on full diagnostics year. non-GAAP quarter, to hedge despite to expected and ask well outstanding approximately the XX% the and and that, nets Our let uncertainties, out to quarter diluted surgical uncertain EPS while macro the and guidance our million XXXX. the shares with are by for headwinds. balance results operator are fortress me results was by $X.XX our driven exceeded our continue remains to our to various tax in open All once is a guidance natural strong call $X.XX businesses, $X.XX we effective outlook rate for the expect future to exceptional be based $X.XX wrap-up $XXX first to in molecular we year. growth approximately positioned of this an saying again questions. in To COVID a macro fourth strong sheet, fiscal to continue. that, for we With which Performance And the expected the

to Thank Citi. you. our we question Patrick [Operator first from Instructions] Donnelly And go with will

questions. Hey, you the taking guys. Thank for

Hey, Patrick.

side, Steve, Obviously, Can you that maybe implies to how visibility May -- about the the one you? hey of are continues guidance on I the into the like you chip order kind goes. one the improvement? just for sounds it Health talk, build, Steve, year good again, Breast gantry as pace. backlog guess,

You exit you rate. about the guys talked --

hospital I guys then or kind in obviously. of similarly, through lot the share what mid-year. on what yeah, good you talk the staying about any order just order I this? feel customers CapEx, think the improvement mentioned recession, gives of growth you even like. on there, with you And kind maybe a guess, again, of of the sound seeing you Are questions visibility shift look pretty just we side. confidence, about But, on about would a gantries that kind

So the I first appreciate. maybe would on for one, just the focus gantries

Sure, Patrick.

have cancers else a from avoiding of published data, from the a seen really the in base especially buying really sooner, we but People both market our really into positives United needless what great we're doing labeling, without and in detect world, a built efficacy the around earlier-stage everything about I workflow we is think the in false superiority callbacks. the also standpoint, time, over the and that. products, haven't from US clinical States, the share that to and installed feel people reducing

need So is down They're into to when new for of a they've from decision to want to it it come to hospital us. not us comes gantries because made going to away few looking a system, go system. that their

much industry wait is an in this back to across-the-board other So willing issue. we're business, they're plus is more until the reality

like it's others and are short we can provide. not So

we So really dealing everybody the two and us, we're the is things with that the with have which is for products incredible our the we're and going -- chip micro, issue it, macro products else. offering what call by being felt

So customers I think our understand that.

I chains understands, purchasing personalized, a of everybody the their supply things hospital, going be works a think playing understand all little And for anybody in to or taking that months okay, think who's right? it's a while. they life. just get out everybody's and in own need those to I and dishwasher are kinds the parts You fixed

working better feel go. and the customers with SKU into we better and down we've one all continuing about our right single go machines So vendors great to about to been where our and chips as better our of we'll feeling every how about chip visibility products better want many every into and feeling

be as Karleen, Okay. of at the that, Steve, mentioned the Breast on half. we time, more same a in going the going which been just op But talked That's heavier with in margins. margins, is through That's accretive. be there margin the second COVID back to maybe helpful. to the first half, on terms you drag recovery of is Health And then,

rolls Thank margin XX% throughout the the things the talked year. other should and year? I for So moving op that there? just cadence about COVID, Breast you, think Health know maybe through how about given But talk about we the how pieces guys. some between you

would throughout the consistent I of think, Yes. I probably is XX% mean, pretty course year. the the

As kind dynamics the first half. back change of you said, versus half

or plus I you're if minus quarter, So right any you're think think point XX%, a on. two, I in or that

go our Savant Stanley. with from so And Tejas we'll Morgan to question next

the terms guys. Hey, you afternoon. us following specifically call Can operating of piece are margin rest little assumptions just you're here? Remind question a the gross out the in margin just what on up of for in that COVID of here baking contribution Good business? versus the bit. that assumptions Karleen, and

just it are our don't what noted say on initial year add full we in you in power. to prepared going we've pretty that -- margins guide Yes, And for say that net margins but in actually, margins disclosed to specifically. Tejas, levels, about averages, earnings why to the they're is corporate to the were is XX%, industry this be is when that that remarks macro I at accretive results, haven't reinforcing I'd our our would to you rich imply guide And XX%, proud are strong XX%, roughly pretty even think COVID really that at to look that. which we're really if also environment operating the and pre-pandemic of which the compared around our our prior XX%

some you is helpful. quick to taking just terms possibility high longer? of ranges the baked there then assuming for bit quarter Health a of normalcy you've follow-up the the end essentially At guide, recovery? of guide, still Karleen. little are Breast us there into the just recovery walk by through what's you That's or And assumed it. Got in a the the fourth a the return Can

Yes.

actual we would guide base the the part our installed the of get service resource in say engineers, imply did do levels think field I if maintains we're the chips quarter. exit also gantry any that the even recovery, would incremental who also with anticipated as approaching than the as I installs limitations year. normalized we that

So, levels. normal I course the the sequential this to recovery there will through balance gradual of year a throughout a would, and but recovery, exiting be in about general, think close

you. Thank it Got

Welcome.

with our to go And we'll next from question Mizuho Petrone Group. Anthony

I'm evident diagnostics. here finish on guess one see Thanks XXXX, maybe but to and was or year patterns at and from the pandemic the good to guidance here and I forecast just just large flows, the COVID things governmental visibility testing given to be here that contracts. of strong headwinds. least it's that and that is some going congratulations on of whether broader into follow-up still calendar understanding a becoming the even perhaps start on is a tough to lab entities The ebbs then tender issued it the sort and

And then OUS larger the think into or relates can you on to at diagnostics. so broader point have you when XXXX, a to as tenders, be incremental it at follow-up there US, government is And level? visibility Thank hospital the any level you. just it whether I'll that

international of been the Ministries all within any in Yes. various say as both wouldn't close to the hospital. the countries of Health, labs US, one every our the within along, deciding and We've customers parties very down as customers we've I to well right got Anthony, same from things the of visibility. our regional terms both more the in main

So, we out continue the whatever think to good about terms to marketplace very position our the continue we we're I forecasting COVID deliver and of and our needs, close think feel get we're way about going financially. in it not stay to to is going of skis

be a flow testing I at of providers if a beyond really business as we quick of to then even contributor look going it XXXX, what point going reliably driver, think terms follow-up COVID. cash do that consistent is a cash again, we And at mean maybe this in as forward. as relatively on consistent just look flow ahead a

are of of Panther that of lot new a you the kind how the And this beyond think at consistency lastly, think then on again. we -- here the point plays just of COVID? diagnostics, intensity, just users Thanks out end do fiscal year? are when So, testing you of the broader views

the been to we've has relates approached that consistency off this cutting We the didn't as of predict part COVID, this all and been to what way hear the It volatile along first question consistent. has by of Andy. out part never of to eight-week and probably can't the period, fully it predict you terms been in been first were second timeframe. in about follow-up on trying happen. I And region was you have any by people way on the think has Thanks part because

that going assay thing million, everybody back as for I us COVID far long we this thought respiratory with the enduring we back create approach, $XX at mutate. be long beginning, like is that $XXX go away million, it was would more achieved. what molecular what And testing beginning, being going again, frankly, hurry away million, countries we XXXX Herd go then, the else in arrived be to but Whether So is good that $XXX up going don't as still business. in be up anybody fact thought that that that antigen along, around. would always learned never And end came would we really an right? was business thought term business. soon ever going people as have really the What we was away enduring new we're that in China however, in and to to think be know, it a the $XXX go a this would when said as as said virus thing thought is million, enduring ends was vaccines zero a thought we as was tests we feel to everything this and to this this going to or trying immunity will are or we've soon

thank you. So

in. back hop I’ll you. Thank

And we'll of to Meehan go Research. next Nephron Jack

you. have Good before couple of go questions molecular a or afternoon. treating. I I on testing Thank Well, trick

on is COVID sales. the first The

And based like down XX% PCR government sales US sounds it about your disclosures, think I the was volumes quarter-over-quarter. were on assay look the So which I million, pretty stable $XXX at were data, sequentially.

just curious great. ordering on dynamics? could season? quarter that if into be would the on share the there you side, respiratory was about end of Any color So was any talk Or I COVID either

stuff out very more one that to know, base. pricing our to up And a business. well. reasonably of broad customer us business the we stocking enduring of share unusual know no pandemic went early would I And up we has for generally fully things -- were to was a provide very and also diversified. pieces. We in say the there think ordering on the you did, so because hard quarter insulate hold little is this nature quarter. helped various as none It's fourth of helped I It's think a I well is at for Yeah. patterns our our end, the

does continues we're normalized go settling And testing so it feel and we're like no But more business, I that -- certainly a in and think and it US for first but to spikes and is just unusual pretty we feel -- time we still good. spikes. regions the see this to and pattern our to starting in own

I more beyond then than XX% you than the commentary I there anything those my how can XX% they the don't on this business? large as the respiratory these have handy, vaginitis great. second share is large customers, what And Excellent. if be you about how the Any the stats is I look more X%, full are but X%. running at running? And year, so new business? would the appreciate updates testing? Is Is know virology on If question,

Yeah.

would towards very the I continues disclosing the year-over-year and business trajectory. strong primarily. leaning to probably diverse on on that, nice other core but think we number say have that assays the stopped but I actual a assays, women's growth health that it's

Karleen. you, Thank

Enjoy trick or treat.

it. Appreciate

question we'll Securities. SVB move Souda to Puneet our next of And from

Yeah. Hi, the Steve, question. for Karleen. Thanks taking

So to just about term. you've the X% mean, bit talked a I on X%. longer

way. more You're Obviously, here. expense, low capital saying your but recurring spending digits are of businesses double your that recovering customers are revenue low

about So, X% number? about about think that just talk you're the us about how just how us more And X% thinking conservative now talk term? we And should that? longer is of a to to to

Yeah.

below. a said along, X% long-term, think sometimes we're you're will what, to But as X%. all little to bit with above, the I sticking going it be sometimes we've be

stretch. about any way I that. above our get be about one some certainly bit where now, feel of businesses. by year, it. little It's we're for want to up good ourselves are where for up guidance saying, very don't either moving think but we're caught above that I next we of ahead and delivering we we right that There'll we There every just we're a But reminder. periods solidly as might that of periods feel below think be time

range We only about ago. XX that gave months

change point. feel we're don't -- to this I need it So, like not at

And then Okay, got a Steve, question broader you. for it.

long these the do of tail for a but viruses other primary RSV, going the just and that in flu, continuing see to of again, routine post-pandemic diagnostics significance such awareness in respiratory you it's have it, the of sort overall might and the just utilization on sustained. you era, to because of is overall heightened just overall, Now, be care settings

businesses Just understand, just respiratory a help higher the see long do us for sustaining utilization here time? for you

right? in Mobidiag both higher never And Puneet, RSV to see talking offer ago, in going bring right? that levels what us that levels the granularity we testing more even certainty our they what think seeing So, business it's in of we're desire think they think certainly, the we will also our European I'd month getting about and I will more It's because about a now. positive. that XX.X% of people diagnostics The these of industry last to know Yes, with And platform, question, Fusion now people do future. able great argue piece big have, want to about what be that of elevated as the forth, probably on to few have been have. we're into that a also we're has a here a simple right we're and something weeks. that as heard RSV even public know

the we're I So future. think well poised also for

Liza to move next UBS. from we question Garcia And our on will of

in to there have fiscal expectations growth like of Surgical kind off squeezing particular. what little XXXX. seems a in. for It of expectations growth Gyno leading kind for kind with more talk of me it. the Can kind Thanks and guys. bit you kind on optimism Hi confidence. MyoSure Maybe of start Appreciate of you you gives about about for MyoSure,

what's kind there. hear start -- let's well, the of optimism of to and driving kind love I'd So also

Yes.

in just think anybody with grower more them. the still our an basis, I could procedure are There's sales significant not you've procedure meeting on MyoSure, opportunities back positive we amazingly it from hard for now we're MyoSure seven think eight fibroid continue with to because with be great with markets thought long deeper to think biased outsized team. serious what last space. to first there's that been -- been just when week and and beyond And outcomes. US see underdeveloped is sales has is an be. or what some I I we MyoSure off, that it's still, came But we a degree, And years, excited

end what And -- is the truly just so, I there. quite we sure market think to continue we're not

gives performance what Yes. a well, as International continues to of in us be confidence that that outlook. piece bigger

San and CLIA you lines Great. to stand just you time automation should the going And where then, about how maybe potential Diego those your you underway and update think we Biotheranostics that us can and impact with initiatives for headquarters have lab there? and

well, in kicking that in the of calendar the of building and really will in next in, build-out automation terms quarters, more really The be the in sure. happening ordering next our here early gone year. will Diego be Yes, lab system San particularly has that we're of adding couple

it and so a they're to thing part all of crush that salespeople of week with of doing what since just them technologies trying to just We feeling rates. to continues of the in team been just in then to we're team that investment growth be with accelerate and its supportive what do put about the to So these are their Hologic. we're and Acessa, and bring great part doing what we've they've we is What team. the we're excited done were Biotheranostics part of Bolder, additional these able Hologic opportunities. with last classic And feeling with

Max hear Masucci Cowen And and from next with Company. we

strong Congrats good year. very on a Hey, afternoon.

since settled? think expanding base, Diagnostics logical even the prepaid maybe since go-forward we menu out or we times, level First where margins items. evolved tamper doubling broader the pre-pandemic just an how non-COVID at a gross times? Or one, the Molecular a about Panther have Is margins there have adoption range gross terms, if asset of install nearly non-COVID have in

margin, price, margins accretive Yes, those of higher but a I on as higher at -- corporate get dynamics said all give the business pricing for of we along this to newer legacy we business, are gross the is, the the we we've molecular average. add on more the some assays, typically But the assays. mean

we'll but see trend wouldn't obviously than significant think I So, produce corporate our San But a about more those at we'll naturally higher anytime -- get as gain upward averages, I we more holding in absorption. those. facility, in Diego

got in cash, seeing leverage the billion arena. A public low ratio, valuations recalibrating Okay, final net historically it. then $X.X one. in And we're

sitting the prioritization? you could should So sort that with opportunistic market just priority in number give of in a playbook, peek remain we assume Hologic allocation the will into slot a in capital choppy of buybacks M&A that us environment terms two

would actually that. I reverse Max,

But ongoing opportunities, activity we at more. will So priority of grown share you've flow, noted, to dilution plans but allocation free a we'll jump a minimum of to couple the disconnects the and our But get cash as is years. the has consistently repurchase an is be as our be M&A, and over disciplined priority been little has manage see from in in last capital strategy. which, we'll M&A deploy our that to more equity

bunch. if that. The build the Max, we because year, year, did a the could front. in M&A as looking Yes, do if on you're I previous Obviously, we didn't whole on much last

doctors to about So the given of any our changed strategy. at couple look quarters overlying It's we've really don't the opportunity. that say sometimes

healthy. that's ability to The it's sense enormous deals all can when is of be make ones we for the the would other us. core doing I your best also reiterate when it you healthy in the is, very And business to have need and I piece us a think is deals. base part that There's patient business, given no do do

is still as acquisition clearly, one the So Thank number Karleen to reiterate, front. you. said, on

our question we'll next with Tim to you. And Fargo. Daley go Thank Wells from

time the Great. here. Thanks for

the first around macro So, kind of my environment. broader is one

that guidance or end? COVID of range Or maybe that drivers you is of put range did the non-COVID you the us guidance is high the there? for about low big that specific any here, So, the delta at guys the layout thinking there kind end

not. we're businesses them. is -- is being base COVID all of This three talking about strong, our really

OEM any to partners? that, around Any that particularly Just details you geographical up concerns is relating Great. to there helpful. following guidance? European your And be additional third-party some that the then footprint, in of around have are contemplated would that

scenarios the particularly Europe, particularly think and and else. as in comes everything geopolitical the this about and economic worry certainly We winter in energy I

just said the And think teams shape. macro. environment, be that, in power great businesses regardless you. the are I micro our our that. able poised are that's Thank and to I The think to all through having and is of deliver

de move We'll next Bank you of to Thank with Bruin Derik America.

Good Hey, two So, evening. Hope you're doing well. are questions. how you?

is the rate First XX% XX%. going tax of all, to from

public of of driven And mean, that? a the is driving push are the what's of as year, being sort -- revenue away you're emergency second COVID go at on or pricing higher to us health in of are tell you sort you is particular, of some potentially how customers, pricing? your by I away? next can what when the like the businesses back much as goes So reimbursement looking is organic question targets growth some starting price? to And assuming going Thanks. you likely be, to diagnostic double-digit in

Yes.

effectively certainly, our So, chain for footprint continue the we rate, to tax to more looking on our leverage supply areas. low-cost operational and opportunities our for look

a much certainly been when tax happening work does down discussion it the has that I driving pricing one health public of over been. the aspect COVID more than last think do think pricing, be lot I I our customers which the think with has from And margin go XXXX. will months, away, lower for And of of XX that so is a rate XX% to

Yes.

pricing net Derik, have the So, baked we into very numbers. little

across modest. few frankly, give margin Karleen hard operating to has geographies. working very side, because franchises just focused on our piece, the been net too she's last over for and team a plug very our have and admired tax always across she puts been Everybody's And have We takes, but the years.

year with So I job that great really do to to kind of opportunity net for to this continue us margin. drive show a another think great, up

XX% go-forward rate? And of would you use the

the federal XX% I point, good this At to Yes. statutory change I a muster use. is rate, in think would

Derik. you, Thank

JPMorgan. Woodring with next we'll And to go Casey

last pointing to XXXX. to from in guys. is XX.X% we -- place so Hi margin headwinds XXXX guess maybe you out pre-COVID Thanks as chain the would good think COVID spoke; That XQ to a were for of guys start I chipping just of operating breast. supply me I in. time some just a balance

XX% here, operating So, lower is the margin basis number is quantify you. can you from number? headwind in the Thank company's also year? curious And just total the the relation quantify the chain international point maybe how supply could the to then what you much on business maybe on dynamics

Yeah.

persist XXX XXXX. from margin chain basis So higher cost, have forecast I supply it's the roughly the XXX that to from on we the points operating would through think

improving have margins think there US, We forward. teams But have the disclosed move certainly, I international as about on not we leverage lower we talked their our are discussions, being the difference. focused than but is

evening. And concludes Fiscal question-and-answer thank Fourth XXXX today's Hologic's Conference Earnings now session. good That you, Call. Quarter a And everyone. this concludes Have