QuidelOrtho (QDEL) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $727 million, down 2% year-over-year, mainly due to lower COVID-19 and influenza revenue; recurring revenue was $598 million, up 1% in constant currency, with Labs recurring revenue up 6%.

• YTD 2024 revenue was $2.08 billion, down 7–8% year-over-year, with non-respiratory revenue at $1.71 billion.

• Leadership changes included new CTO and CHRO, elimination of CCO and COO roles, and a flatter structure to enhance efficiency.

• A non-cash goodwill impairment charge of $1.7 billion was recorded for the North America reporting unit, driving a net loss of $1.87 billion for the nine months.

• The company reinstated full-year 2024 guidance, citing improved visibility and progress on cost actions.

Financial highlights

• Q3 adjusted EBITDA was $171 million (23.5% margin), up 80 bps year-over-year; adjusted diluted EPS was $0.85, down from $0.90.

• Q3 adjusted gross margin was 49.2%; Q3 GAAP net loss was $20 million, with a net loss margin of (3%).

• YTD adjusted EBITDA was $393 million (19% margin); YTD adjusted gross profit was $977 million (47.1% margin).

• Q3 adjusted free cash flow was $120 million, 70% of adjusted EBITDA; net cash from operating activities was $118 million.

• Basic and diluted loss per share for the nine months was $(27.92), compared to $(0.26) in the prior year.

Outlook and guidance

• Full-year 2024 revenue expected between $2.75–$2.80 billion, adjusted EBITDA $530–$550 million (19.3–19.6% margin), and adjusted diluted EPS $1.69–$1.91.

• 2024 COVID-19 revenue expected at $160–$170 million; cost savings of at least $50 million in H2 2024.

• 2025 outlook: mid-single digit top-line growth (excluding COVID-19 and U.S. Donor Screening), with further cost savings and adjusted EBITDA margin improvement of 100–200 bps over 2024 exit rate.

• The wind-down of the U.S. donor screening portfolio is expected to be substantially complete by the end of 2025.

• The company anticipates sufficient liquidity to fund near-term capital and operating needs for at least the next 12 months.