IDEXX Laboratories Announces First Quarter Results

IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced first quarter results.

First Quarter Results

The Company reports revenues of $964 million for the first quarter of 2024, an increase of 7% as reported and organic, driven by Companion Animal Group ("CAG") growth of 7% as reported and organic, and Water revenue growth of 11% as reported and organic. Overall IDEXX revenue gains were net of an estimated 0.5% - 1% negative growth rate impact from severe U.S. weather in January. CAG Diagnostics recurring revenue growth of 7% as reported and organic was supported by sustained benefits from IDEXX execution drivers. 8% global premium instrument placement growth and continued high customer retention levels supported 11% annual growth in IDEXX's global premium instrument installed base. High demand for IDEXX solutions drove veterinary software, services and diagnostic imaging systems revenue growth of 12% as reported, including benefits from a software and data platform acquisition completed in the period, and 8% organic growth, reflecting high recurring revenue growth and continued momentum in cloud-based software placements.

First quarter earnings per diluted share (“EPS”) were $2.81, an increase of 10% as reported and 9% on a comparable basis, including ~7% negative EPS growth impact from the Q1 2023 customer contract resolution payment. Reported EPS included $0.10 per share in tax benefits from share-based compensation.

"High levels of execution from IDEXX teams drove strong results in the first quarter. This performance reflects continued high interest from customers in adopting IDEXX’s innovative, multi-modality testing platforms and solutions,” said Jay Mazelsky, President and Chief Executive Officer. “By partnering with IDEXX, veterinarians use the differentiated diagnostics insights generated by IDEXX solutions to deliver better patient outcomes, while also driving better business results through workflow optimization and staff productivity."

First Quarter Performance Highlights

Companion Animal Group

The Companion Animal Group generated revenue growth of 7% as reported and organic for the quarter. Solid growth was supported by CAG Diagnostics recurring revenue growth of 7% as reported and organic. U.S. CAG Diagnostics recurring revenue growth of 6.5% as reported and organic, which included impacts from severe weather in January, remained solidly above sector growth levels in the first quarter, reflecting a ~900 basis point growth premium to U.S. same-store clinical visit growth.

Additional U.S. companion animal practice key metrics are available in the Q1 2024 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.

Strong global growth was achieved across IDEXX's testing modalities.

• IDEXX VetLab consumables generated 9% reported and organic revenue growth, with high single-digit gains in the U.S. and continued double-digit gains internationally supported by double-digit global premium instrument installed base growth across major platforms.

• Reference laboratory diagnostic and consulting services generated 7% reported and 6% organic revenue growth, driven by similar solid gains across U.S. and international regions.

• Rapid assay products revenues grew 5% as reported and organic, driven by solid gains in the U.S., supported by benefits from higher net price realization.

Veterinary software, services and diagnostic imaging systems revenues grew 12% as reported and 8% organically, driven by continued high levels of organic growth in software and diagnostic imaging recurring revenues and benefits from a recent software and data platform acquisition.

Water

Water revenues grew 11% as reported and organic for the quarter, reflecting solid gains across regions and benefits from year-end order shipment timing.

Livestock, Poultry and Dairy (“LPD”)

LPD revenues declined 3% as reported and organic for the quarter. Solid gains in the U.S. and Europe were offset by lower Asia Pacific revenues, including impacts from reduced herd health screening levels.

Gross Profit and Operating Profit

Gross profits increased 9% as reported and on a comparable basis. Gross margin of 61.5% increased 120 basis points as reported and ~110 basis points on a comparable basis, supported by benefits from business mix, lower instrument costs and improvement in software service gross margins.

Operating margin was 31.0% for the quarter, lower than the prior year by 10 basis points as reported and on a comparable basis, including ~180 basis point negative impact from lapping a customer contract resolution payment in Q1 2023. Operating margin results reflect 12% operating expense growth as reported, including ~6.5% overall growth impact of the customer contract resolution payment in Q1 2023. Operating expense growth was driven by higher R&D spend related to advancing the Company's innovation agenda, including new platform development.

2024 Growth and Financial Performance Outlook

The Company is updating its full year revenue growth outlook range to 6.5% - 8.5% as reported and 7% - 9% organic, driven by a CAG Diagnostics recurring revenue growth outlook range of 6.5% - 8.5% as reported and 7.5% - 9.5% organic. This updated outlook includes a $35 million negative impact from the recent strengthening of the U.S. dollar and a reduction of 1% to the high end of the organic revenue growth range to reflect near-term moderation in U.S. clinical visit growth trends.

The Company maintained its full year reported operating margin outlook of 30.2% - 30.7%, reflecting continued high levels of operational execution. Projected full year operating margin profit expansion of 20 - 70 basis points is net of a ~40 basis point negative growth impact from lapping a customer contract resolution payment in Q1 2023.

The Company updated its EPS outlook range to $10.82 - $11.20, a reduction of $0.08 at midpoint, reflecting ~$0.11 of negative foreign exchange rate impact compared to previous guidance. Adjustments to the high end of the Company's organic revenue growth guidance range were mitigated by sustained expectations for operating margin improvement and favorable adjustments to projected net interest expense. The updated EPS growth outlook is 8% - 11% as reported and 9% - 13% on comparable basis, net of a ~2% negative growth impact from lapping a customer contract resolution payment in Q1 2023.

The following table provides the Company's updated outlook for annual key financial metrics in 2024 with a comparison to the prior outlook:

Amounts in millions except per share data and percentages

2024 Growth and Financial Performance Outlook
		Updated				Prior
Revenue		$3,895	-	$3,965		$3,930	-	$4,040
Reported growth		6.5%	-	8.5%		7.5%	-	10.5%
Organic growth		7%	-	9%		7%	-	10%
CAG Diagnostics Recurring Revenue Growth
Reported growth		6.5%	-	8.5%		7.5%	-	10.5%
Organic growth		7.5%	-	9.5%		7.5%	-	10.5%
Operating Margin		30.2%	-	30.7%		30.2%	-	30.7%
Operating margin expansion		20 bps	-	70 bps		20 bps	-	70 bps
Comparable margin expansion		20 bps	-	70 bps		20 bps	-	70 bps
Negative impact of 2023 customer contract resolution payment		~ 40 bps				~ 40 bps
EPS		$10.82	-	$11.20		$10.84	-	$11.33
Reported growth		8%	-	11%		8%	-	13%
Comparable growth		9%	-	13%		8%	-	13%
Negative impact of 2023 customer contract resolution payment		~ 2%				~ 2%
Other Key Metrics
Net interest expense		~ $21				~ $27
Share-based compensation tax benefit		~ $10				~ $8
Share-based compensation tax rate benefit		~ 1%				~ 1%
Effective tax rate		~ 22%				~ 22%
Share-based compensation EPS impact		~ $0.12				~ $0.10
Reduction in average shares outstanding		0.5%	-	1%		0.5%	-	1%
Operating Cash Flow (% of Net Income)		110% - 115%				110% - 115%
Free Cash Flow (% of Net Income)		90% - 95%				90% - 95%
Capital Expenditures		~ $180 million				~ $180 million

The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2024.

Estimated Foreign Currency Exchange Rate Impacts		2024
Revenue growth rate impact		(~ 100 bps)
CAG Diagnostics recurring revenue growth rate impact		(~ 100 bps)
Operating margin growth impact		~ 0 bps
EPS impact		(~ $0.09)
EPS growth impact		(~ 1%)
Go-Forward Foreign Currency Exchange Rate Assumptions		2024
In U.S. dollars
euro		$1.05
British pound		$1.21
Canadian dollar		$0.72
Australian dollar		$0.63
Relative to the U.S. dollar
Japanese yen		¥157
Chinese renminbi		¥7.35
Brazilian real		R$5.28

Conference Call and Webcast Information

IDEXX Laboratories, Inc. will be hosting a conference call today at 8:30 a.m. (EDT) to discuss its first quarter 2024 results and management’s outlook. To participate in the conference call, dial 1-800-776-0420 or 1-773-305-6837 and reference passcode 951825. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (EDT) on that day via the same link and will remain available for one year.

2024 Annual Meeting of Shareholders

IDEXX Laboratories, Inc. will hold its 2024 Annual Meeting of Shareholders (the “2024 Annual Meeting”) on Monday, May 6, 2024 at 4:30 p.m. (EDT). The 2024 Annual Meeting will be a virtual meeting via a live audio webcast at www.virtualshareholdermeeting.com/IDXX2024. The online pre-meeting forum can be accessed before the 2024 Annual Meeting at www.proxyvote.com. At this online pre-meeting forum, you can submit questions in writing in advance of the 2024 Annual Meeting, vote, view the Rules of Conduct and Procedures relating to the 2024 Annual Meeting and access copies of the Company's proxy materials and annual report.

Shareholders as of the close of business on March 8, 2024 are entitled to attend the 2024 Annual Meeting, vote their shares electronically and submit questions before and during the live audio webcast. As part of the 2024 Annual Meeting, the Company will answer the questions submitted by our shareholders during a live Q&A session, as time permits. The Company will publish the answer to each question, including any for which there is not sufficient time to address during the 2024 Annual Meeting, on the Company’s Investor Relations website as soon as practicable after the meeting. An archived replay will also be available at www.virtualshareholdermeeting.com/IDXX2024 after the conclusion of the 2024 Annual Meeting. Further information on the 2024 Annual Meeting can be found in the Company’s proxy materials.

About IDEXX Laboratories, Inc.

IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions—to advance medical care, improve efficiency, and build thriving practices. Our innovations also help ensure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500 Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.

Note Regarding Forward-Looking Statements

This earnings release and the statements to be made in the accompanying earnings conference call contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, including statements about the Company’s business prospects and estimates of the Company’s financial results for future periods. Forward-looking statements are included above under "2024 Growth and Financial Performance Outlook" and elsewhere and can be identified by the use of words such as "expects", "may", "anticipates", "intends", "would", "will", "plans", "believes", "estimates", "projected", "should", and similar words and expressions. Our forward-looking statements include statements relating to our expectations regarding financial performance; revenue growth and EPS outlooks; operating and free cash flow forecast; projected impact of foreign currency exchange rates and interest rates; projected operating margins and expenses and capital expenditures; projected tax, tax rate and EPS benefits from share-based compensation arrangements; projected effective tax rates, reduction of average shares outstanding and net interest expense; U.S. clinical visit trends; and new product launches. These statements are intended to provide management's expectation of future events as of the date of this earnings release; are based on management's estimates, projections, beliefs, and assumptions as of the date of this earnings release; and are not guarantees of future performance. These forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, among other things, the matters described under the headings "Business," "Risk Factors," "Legal Proceedings," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Quantitative and Qualitative Disclosures About Market Risk" in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and in the corresponding sections of the Company's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024, as well as those described from time to time in the Company’s other filings with the U.S. Securities and Exchange Commission available at www.sec.gov. The Company specifically disclaims any obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

Statement Regarding Non-GAAP Financial Measures

The following defines terms and conventions and provides reconciliations regarding certain measures used in this earnings release and/or the accompanying earnings conference call that are not required by, or presented in accordance with, generally accepted accounting principles in the United States of America ("GAAP"), otherwise referred to as non-GAAP financial measures. To supplement the Company’s consolidated results presented in accordance with GAAP, the Company has disclosed non-GAAP financial measures that exclude or adjust certain items. Management believes these non-GAAP financial measures provide useful supplemental information for its and investors’ evaluation of the Company’s business performance and liquidity and are useful for period-over-period comparisons of the performance of the Company’s business and its liquidity and to the performance and liquidity of our peers. While management believes that these non-GAAP financial measures are useful in evaluating the Company’s business, this information should be considered as supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similarly titled measures reported by other companies.

Constant currency - Constant currency references are non-GAAP financial measures which exclude the impact of changes in foreign currency exchange rates and are consistent with how management evaluates our performance and comparisons with prior and future periods. We estimated the net impacts of currency on our revenue, gross profit, operating profit, and EPS results by restating results to the average exchange rates or exchange rate assumptions for the comparative period, which includes adjusting for the estimated impacts of foreign currency hedging transactions and certain impacts on our effective tax rates. These estimated currency changes impacted first quarter 2024 results as follows: increased gross profit growth by 0.1%, increased gross margin growth by 10 basis points, increased operating expense growth by 0.3%, decreased operating profit growth by 0.1%, was immaterial to operating profit margin growth, and was immaterial to EPS growth. Constant currency revenue growth represents the percentage change in revenue during the applicable period, as compared to the prior year period, excluding the impact of changes in foreign currency exchange rates. See the supplementary analysis of results below for revenue percentage change from currency for the three months ended March 31, 2024 and refer to the 2024 Growth and Financial Performance Outlook section of this earnings release for estimated foreign currency exchange rate impacts on 2024 projections and estimates.

Growth and organic revenue growth - All references to growth and organic growth refer to growth compared to the equivalent prior year period unless specifically noted. Organic revenue growth is a non-GAAP financial measure that represents the percent change in revenue, as compared to the same period for the prior year, net of the impact of changes in foreign currency exchange rates, certain business acquisitions, and divestitures. Management believes that reporting organic revenue growth provides useful information to investors by facilitating easier comparisons of our revenue performance with prior and future periods and to the performance of our peers. Organic revenue growth should be considered in addition to, and not as a replacement of or a superior measure to, revenue growth reported in accordance with GAAP. See the supplementary analysis of results below for a reconciliation of reported revenue growth to organic revenue growth for the three months ended March 31, 2024. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Please refer to the 2023 Growth and Financial Performance Outlook section of this earnings release for estimated full year 2024 organic revenue growth for the Company and CAG Diagnostics recurring revenue growth. The percentage change in revenue resulting from acquisitions represents revenues during the current year period, limited to the initial 12 months from the date of the acquisition, that are directly attributable to business acquisitions. Revenue from acquisitions is not expected to have an impact on projected full year 2024 revenue growth or CAG Diagnostics recurring revenue growth.

Comparable growth metrics - Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) are non-GAAP financial measures and exclude the impact of changes in foreign currency exchange rates and non-recurring or unusual items (if any). Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts. Management believes that reporting comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) provides useful information to investors because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding key metrics used by management. Comparable gross profit growth, comparable gross margin gain (or growth), comparable operating expense growth, comparable operating profit growth and comparable operating margin gain (or growth) should be considered in addition to, and not as replacements of or superior measures to, gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain reported in accordance with GAAP.

The reconciliation of these non-GAAP financial measures is as follows:

		Three Months Ended								Year-over-Year
		March 31,				March 31,				Change
Dollar amounts in thousands			2024				2023
Gross Profit (as reported)		$	593,070			$	542,971			9%
Gross margin			61.5	%			60.3	%		120 bps
Less: comparability adjustments
Change from currency			656				—
Comparable gross profit growth		$	592,414			$	542,971			9%
Comparable gross margin and gross margin gain (or growth)			61.5	%			60.3	%		110 bps
Operating expenses (as reported)		$	294,112			$	262,572			12%
Less: comparability adjustments
Change from currency			859				—
Comparable operating expense growth		$	293,253			$	262,572			12%
Income from operations (as reported)		$	298,958			$	280,399			7%
Operating margin			31.0	%			31.1	%		(10) bps
Less: comparability adjustments
Change from currency			(203	)			—
Comparable operating profit growth		$	299,161			$	280,399			7%
Comparable operating margin and operating margin gain (or growth)			31.0	%			31.1	%		(10) bps
Amounts presented may not recalculate due to rounding.

Projected 2024 comparable operating margin expansion outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects immaterial impact from year-over-year foreign currency exchange rate changes.

These impacts described above reconcile reported gross profit growth, gross margin gain, operating expense growth, operating profit growth and operating margin gain (including projected 2024 operating margin expansion) to comparable gross profit growth, comparable gross margin gain, comparable operating expense growth, comparable operating profit growth and comparable operating margin gain for the Company.

Comparable EPS growth - Comparable EPS growth is a non-GAAP financial measure that represents the percentage change in earnings per share (diluted) ("EPS") for a measurement period, as compared to the prior base period, net of the impact of changes in foreign currency exchange rates from the prior base period and excluding the tax benefits of share-based compensation activity under ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, and non-recurring or unusual items (if any). Management believes comparable EPS growth is a more useful way to measure the Company’s business performance than EPS growth because it enables better period-over-period comparisons of the fundamental financial results by excluding items that vary independent of performance and provides greater transparency to investors regarding a key metric used by management. Comparable EPS growth should be considered in addition to, and not as a replacement of or a superior measure to, EPS growth reported in accordance with GAAP. Please refer to the constant currency note above for a summary of foreign currency exchange rate impacts.

The reconciliation of this non-GAAP financial measure is as follows:

		Three Months Ended						Year-over-Year
		March 31,			March 31,			Growth
		2024			2023
Earnings per share (diluted)		$	2.81		$	2.55		10%
Less: comparability adjustments
Share-based compensation activity			0.10			0.06
Change from currency			—			—
Comparable EPS growth			2.71			2.49		9%
Amounts presented may not recalculate due to rounding.

Projected 2024 comparable EPS growth outlined in the 2024 Growth and Financial Performance Outlook section of this earnings release reflects adjustments including estimated positive share-based compensation activity of $0.12 and estimated negative year-over-year foreign currency exchange rate change impact of $0.09.

These impacts and those described in the constant currency note above reconcile reported EPS growth (including projected 2024 reported EPS growth) to comparable EPS growth for the Company.

Free cash flow - Free cash flow is a non-GAAP financial measure and means, with respect to a measurement period, the cash generated from operations during that period, reduced by the Company’s investments in property and equipment. Management believes free cash flow is a useful measure because it indicates the cash the operations of the business are generating after appropriate reinvestment for recurring investments in property and equipment that are required to operate the business. Free cash flow should be considered in addition to, and not as a replacement of or a superior measure to, net cash provided by operating activities. See the supplementary analysis of results below for our calculation of free cash flow for the three months ended March 31, 2024 and 2023. To estimate projected 2024 free cash flow, we have deducted projected purchases of property and equipment (also referred to as capital expenditures) of approximately ~ $180 million. Free cash flow conversion, or the net income to free cash flow ratio, is a non-GAAP financial measure that is defined as free cash flow, with respect to a measurement period, divided by net income for the same period. To calculate trailing twelve-month net income to free cash flow ratio for the twelve months ended March 31, 2024, we have deducted purchases of property and equipment of approximately $124 million from net cash provided from operating activities of approximately $921 million, divided by net income of approximately $867 million.

Debt to Adjusted EBITDA (Leverage Ratios) - Adjusted EBITDA, gross debt, and net debt are non-GAAP financial measures. Adjusted EBITDA is a non-GAAP financial measure of earnings before interest, taxes, depreciation, amortization, non-recurring transaction expenses incurred in connection with acquisitions, share-based compensation expense, and certain other non-cash losses and charges. Management believes that reporting Adjusted EBITDA, gross debt, and net debt in the Debt to Adjusted EBITDA ratios provides supplemental analysis to help investors further evaluate the Company's business performance and available borrowing capacity under the Company's credit facility. Adjusted EBITDA, gross debt, and net debt should be considered in addition to, and not as replacements of or superior measures to, net income or total debt reported in accordance with GAAP. For further information on how Adjusted EBITDA and the Debt to Adjusted EBITDA Ratios are calculated, see the Company's Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2024.

IDEXX Laboratories, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations
Amounts in thousands except per share data (Unaudited)
				Three Months Ended
				March 31,				March 31,
					2024				2023
Revenue:		Revenue		$	964,095			$	900,195
Expenses and Income:		Cost of revenue			371,025				357,224
		Gross profit			593,070				542,971
		Sales and marketing			149,453				147,804
		General and administrative			92,024				70,101
		Research and development			52,635				44,667
		Income from operations			298,958				280,399
		Interest expense, net			(3,479	)			(12,711	)
		Income before provision for income taxes			295,479				267,688
		Provision for income taxes			59,900				53,634
Net Income:		Net income attributable to stockholders		$	235,579			$	214,054
		Earnings per share: Basic		$	2.84			$	2.58
		Earnings per share: Diluted		$	2.81			$	2.55
		Shares outstanding: Basic			83,096				82,992
		Shares outstanding: Diluted			83,957				83,959

IDEXX Laboratories, Inc. and Subsidiaries
Selected Operating Information (Unaudited)
				Three Months Ended
				March 31,			March 31,
				2024			2023
Operating Ratios		Gross profit		61.5	%		60.3	%
(as a percentage of revenue):		Sales, marketing, general and administrative expense		25.0	%		24.2	%
		Research and development expense		5.5	%		5.0	%
		Income from operations1		31.0	%		31.1	%
1Amounts presented may not recalculate due to rounding.

IDEXX Laboratories, Inc. and Subsidiaries
Segment Information
Amounts in thousands (Unaudited)
				Three Months Ended
				March 31,				Percent of			March 31,		Percent of
				2024				Revenue			2023		Revenue
Revenue:		CAG		$	889,285						$827,279
		Water			43,071						38,883
		LPD			28,205						29,208
		Other			3,534						4,825
		Total		$	964,095						$900,195
Gross Profit:		CAG		$	546,236			61.4	%		$498,757		60.3	%
		Water			30,497			70.8	%		27,268		70.1	%
		LPD			15,234			54.0	%		15,053		51.5	%
		Other			1,103			31.2	%		1,893		39.2	%
		Total		$	593,070			61.5	%		$542,971		60.3	%
Income from Operations:		CAG		$	279,696			31.5	%		$261,750		31.6	%
		Water			19,430			45.1	%		16,971		43.6	%
		LPD			866			3.1	%		1,308		4.5	%
		Other			(1,034	)		(29.3	)%		370		7.7	%
		Total		$	298,958			31.0	%		$280,399		31.1	%

IDEXX Laboratories, Inc. and Subsidiaries
Revenues and Revenue Growth Analysis by Product and Service Categories and by Domestic and International Markets
Amounts in thousands (Unaudited)
		Three Months Ended
Net Revenue		March 31, 2024			March 31, 2023			Dollar Change				Reported Revenue Growth1			Percentage Change from Currency			Percentage Change from Acquisitions			Organic Revenue Growth1
CAG		$	889,285		$	827,279		$	62,006			7.5	%		—			0.3	%		7.2	%
United States			602,195			564,527			37,668			6.7	%		—			0.4	%		6.3	%
International			287,090			262,752			24,338			9.3	%		—			—			9.2	%
Water			43,071			38,883			4,188			10.8	%		0.2	%		—			10.6	%
United States			22,199			19,920			2,279			11.4	%		—			—			11.4	%
International			20,872			18,963			1,909			10.1	%		0.4	%		—			9.7	%
LPD			28,205			29,208			(1,003	)		(3.4	%)		(0.1	%)		—			(3.3	%)
United States			5,164			4,543			621			13.7	%		—			—			13.7	%
International			23,041			24,665			(1,624	)		(6.6	%)		(0.1	%)		—			(6.5	%)
Other			3,534			4,825			(1,291	)		(26.7	%)		—			—			(26.7	%)
Total Company		$	964,095		$	900,195		$	63,900			7.1	%		—			0.2	%		6.8	%
United States			631,009			590,413			40,596			6.9	%		—			0.4	%		6.5	%
International			333,086			309,782			23,304			7.5	%		—			—			7.5	%

		Three Months Ended
Net CAG Revenue		March 31, 2024			March 31, 2023			Dollar Change				Reported Revenue Growth1			Percentage Change from Currency			Percentage Change from Acquisitions			Organic Revenue Growth1
CAG Diagnostics recurring revenue:		$	780,144		$	726,902		$	53,242			7.3	%		—			—			7.3	%
IDEXX VetLab consumables			316,929			291,114			25,815			8.9	%		—			—			8.9	%
Rapid assay products			86,315			82,032			4,283			5.2	%		(0.1	%)		—			5.3	%
Reference laboratory diagnostic and consulting services			344,338			323,180			21,158			6.5	%		0.1	%		—			6.4	%
CAG Diagnostics services and accessories			32,562			30,576			1,986			6.5	%		(0.3	%)		—			6.8	%
CAG Diagnostics capital – instruments			34,092			33,144			948			2.9	%		(0.4	%)		—			3.2	%
Veterinary software, services and diagnostic imaging systems:			75,049			67,233			7,816			11.6	%		—			3.3	%		8.4	%
Recurring revenue			59,700			51,707			7,993			15.5	%		—			4.2	%		11.2	%
Systems and hardware			15,349			15,526			(177	)		(1.1	%)		—			—			(1.1	%)
Net CAG revenue		$	889,285		$	827,279		$	62,006			7.5	%		—			0.3	%		7.2	%

		Three Months Ended
		March 31, 2024			March 31, 2023			Dollar Change			Reported Revenue Growth1			Percentage Change from Currency			Percentage Change from Acquisitions		Organic Revenue Growth1
CAG Diagnostics recurring revenue:		$	780,144		$	726,902		$	53,242		7.3	%		—			—		7.3	%
United States			523,041			491,340			31,701		6.5	%		—			—		6.5	%
International			257,103			235,562			21,541		9.1	%		0.1	%		—		9.1	%
1See Statements Regarding Non-GAAP Financial Measures, above. Amounts presented may not recalculate due to rounding.

IDEXX Laboratories, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet
Amounts in thousands (Unaudited)
				March 31, 2024			December 31, 2023
Assets:		Current Assets:
		Cash and cash equivalents		$	397,433		$	453,932
		Accounts receivable, net			507,208			457,445
		Inventories			390,599			380,282
		Other current assets			206,733			203,595
		Total current assets			1,501,973			1,495,254
		Property and equipment, net			708,725			702,177
		Other long-term assets, net			1,142,817			1,062,494
		Total assets		$	3,353,515		$	3,259,925
Liabilities and Stockholders'
Equity:		Current Liabilities:
		Accounts payable		$	117,462		$	110,643
		Accrued liabilities			476,249			478,712
		Line of credit			250,000			250,000
		Current portion of long-term debt			74,998			74,997
		Deferred revenue			38,193			37,195
		Total current liabilities			956,902			951,547
		Long-term debt, net of current portion			620,778			622,883
		Other long-term liabilities, net			206,929			200,965
		Total long-term liabilities			827,707			823,848
		Total stockholders' equity			1,568,906			1,484,530
		Total liabilities and stockholders' equity		$	3,353,515		$	3,259,925

IDEXX Laboratories, Inc. and Subsidiaries
Selected Balance Sheet Information (Unaudited)
				March 31, 2024		December 31, 2023		September 30, 2023		June 30, 2023		March 31, 2023
Selected Balance Sheet Information:		Days sales outstanding1		45.7		46.1		45.6		43.9		42.9
		Inventory turns2		1.3		1.3		1.3		1.3		1.3
1Days sales outstanding represents the average of the accounts receivable balances at the beginning and end of each quarter divided by revenue for that quarter, the result of which is then multiplied by 91.25 days.
2Inventory turns represent inventory-related cost of product revenue for the twelve months preceding each quarter-end divided by the average inventory balances at the beginning and end of each quarter.

IDEXX Laboratories, Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
Amounts in thousands (Unaudited)
				Three Months Ended
				March 31, 2024				March 31, 2023
Operating:		Cash Flows from Operating Activities:
		Net income		$	235,579			$	214,054
		Non-cash adjustments to net income			44,422				40,467
		Changes in assets and liabilities			(81,416	)			(70,609	)
		Net cash provided by operating activities			198,585				183,912
Investing:		Cash Flows from Investing Activities:
		Purchases of property and equipment			(30,273	)			(39,511	)
		Acquisition of a business			(77,000	)			—
		Proceeds from net investment hedges			329				—
		Net cash used by investing activities			(106,944	)			(39,511	)
Financing:		Cash Flows from Financing Activities:
		Repayments under credit facility, net			—				(147,500	)
		Payments for the acquisition-related holdbacks			—				(1,780	)
		Repurchases of common stock			(154,764	)			—
		Proceeds from exercises of stock options and employee stock purchase plans			20,879				12,796
		Shares withheld for statutory tax withholding payments on restricted stock			(10,189	)			(9,597	)
		Net cash used by financing activities			(144,074	)			(146,081	)
		Net effect of changes in exchange rates on cash			(4,066	)			501
		Net decrease in cash and cash equivalents			(56,499	)			(1,179	)
		Cash and cash equivalents, beginning of period			453,932				112,546
		Cash and cash equivalents, end of period		$	397,433			$	111,367

IDEXX Laboratories, Inc. and Subsidiaries
Free Cash Flow
Amounts in thousands (Unaudited)
				Three Months Ended
				March 31, 2024				March 31, 2023
Free Cash Flow:		Net cash provided by operating activities		$	198,585			$	183,912
		Investing cash flows attributable to purchases of property and equipment			(30,273	)			(39,511	)
		Free cash flow1		$	168,312			$	144,401
1See Statements Regarding Non-GAAP Financial Measures, above.

IDEXX Laboratories, Inc. and Subsidiaries
Common Stock Repurchases
Amounts in thousands except per share data (Unaudited)
		Three Months Ended
		March 31, 2024			March 31, 2023
Shares repurchased in the open market			303			—
Shares acquired through employee surrender for statutory tax withholding			18			19
Total shares repurchased			321			19
Cost of shares repurchased in the open market		$	167,102		$	—
Cost of shares for employee surrenders			10,189			9,597
Total cost of shares		$	177,291		$	9,597
Average cost per share – open market repurchases		$	550.90		$	—
Average cost per share – employee surrenders		$	560.56		$	503.65
Average cost per share – total		$	551.45		$	503.65

 

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The IDEXX Laboratories Stock at the time of publication of the news with a raise of 0,00 % to 471,5EUR on Tradegate stock exchange (30. April 2024, 14:37 Uhr).