Harvard Bioscience (HBIO) Sidoti September Small-Cap Virtual Conference summary

Strategic overview and market positioning

• Focus on advancing life science tools for academic, CRO, pharma, and biotech sectors.

• Two main product segments: cellular/molecular and preclinical systems, each 50% of business.

• Strategy aims to shift from academic to larger industrial sales, leveraging strong customer relationships.

• High barriers to entry with innovative, sticky technologies and recurring revenue streams (35%).

• Long-term targets: double-digit revenue growth, 60% gross margin, 20% EBITDA margin.

Financial performance and macro environment

• 2023 revenue reached $112 million, EBITDA margin improved by 34% over 2022.

• Challenging first half of the year, especially in Asia-Pacific; macro environment remains tough.

• Cost rationalization and efficiency initiatives ongoing since 2022 to support margin targets.

• Academic research demand in Asia-Pacific showing signs of recovery; industrial demand stabilizing.

• Interest rate trends and global economic stability expected to influence future demand.

Product innovation and growth drivers

• New products: SoHo shared housing implants, VivaMARS for high-volume neurobehavioral testing.

• MeshMEA Organoid Platform enables long-term organoid testing, expanding into in vitro safety and toxicology.

• BTX system for bioproduction now generating over $1 million in annual consumable revenue from a single customer.

• Early adoption of new platforms by major academic and government institutions; full production ramp expected by Q1 next year.

• Product pipeline increasingly focused on recurring revenue and consumables.