QuidelOrtho Corp Q4 FY2024 earnings call

• Brian Blaser discussed 2024 operational highlights, including changes to the leadership team to focus on growth and profitability, and second half 2024 results showing progress in high impact opportunities. - Q4 2024 had ongoing contribution from Labs, Immunohematology, and Point of Care businesses, with over 90% of sales being recurring. - Joe Busky provided full year 2024 results, including regional performance (other region grew 13%, China grew 11%, Europe, Middle East, Africa declined 6%, North America declined 11% excluding COVID), P&L details (adjusted gross profit margin 47% in Q4 2024 vs 52% prior year), and balance sheet details (cash $98 million, borrowings $198 million on revolver).

In the fourth quarter of 2024, total reported revenue was $708 million, down 4% year-over-year due to expected declines in COVID and flu testing revenues. Over 90% of Q4 sales were recurring. The Labs business, roughly 50% of total company revenues, grew 4% in constant currency excluding COVID and non-core revenue. The Immunohematology business in transfusion medicine had stable growth of 4% in Q4. The Point of Care business continued its leadership position. Molecular diagnostics initiated clinical trials for the Savanna Respiratory Panel. For full year 2024, total reported revenue was $2.8 billion, with Labs growth 4% excluding COVID and non-core revenue, respiratory revenue $504 million growing 4% excluding COVID, and full year COVID revenue $185 million including $17 million in government contracts.

• Full year 2025 total reported revenue expected between $2.6 billion and $2.81 billion, with a negative foreign currency impact of $55 million. - Adjusted EBITDA expected $575 million to $615 million (22% margin). - Adjusted diluted EPS expected $2.07 to $2.57. - Respiratory test market expected $50 million to $55 million in 2025, COVID revenue $110 million to $140 million. - Cost savings of $50 million in first half of 2025, $30 million to $50 million incremental savings. - Free cash flow expected 25% to 30% of adjusted EBITDA. - Net debt leverage expected to be 3.5x to 4x by end of 2025.

• Tariff uncertainties, with monitoring ongoing as the situation changes. - Competitive intensity in China, with some impact on cardiac reimbursement. - Potential VBP pressure in China, though risk was seen as largely passed for 2025. - Foreign currency exchange impact on results.

Q: On the tariff and exposure to secondary suppliers?

A: Joe Busky said all tariff exposure is factored into analysis, with Mexico being the country with more exposure including secondary suppliers