Azenta (AZTA) Q4 2024 earnings summary

Executive summary

• FY2024 revenue was $656M, down 1% reported and 2% organic, with core SMS and multi-omics segments growing organically by 4%.

• Q4 revenue was $170M, down 1% reported and 2% organic year-over-year, with core segments up 5% organically.

• Announced the sale of B Medical Systems to refocus on core businesses and drive margin expansion; guidance excludes this segment.

• Leadership changes include new CFO Lawrence Lin, new independent directors, and a Value Creation Committee to guide long-term strategy.

• Transformation program drove site rationalization, cost optimization, and IT system reduction.

Financial highlights

• FY2024 revenue was $656M, down 1% reported and 2% organic; Q4 revenue was $170M, down 1% reported and 2% organic.

• Adjusted EBITDA margin was 10.2% in Q4 and 7.5% for the year, expanding 560 and 300 basis points year-over-year, respectively.

• Non-GAAP EPS was $0.18 for Q4 and $0.41 for the year.

• Returned $249M to shareholders in Q4, completing a $1.5B share repurchase program, retiring 30M shares.

• Ended Q4 with $522M in cash and no debt.

Outlook and guidance

• FY2025 organic revenue growth guided at 3%-5% year-over-year, excluding B Medical Systems.

• Adjusted EBITDA margin expansion of ~300 basis points targeted for FY2025.

• Multi-omics expected to grow low single digits; SMS to grow mid-single digits.

• Analyst day planned for mid-2025 to update on long-term strategy.

• Interest income projected at $16M–$18M; tax rate expected at 27%–29%.