Azenta, Inc. (AZTA): history, ownership, mission, how it works & makes money

A Brief History of Azenta, Inc.

Company Overview

Azenta, Inc. is a leading provider of sample management solutions, multiomics, and medical systems. The company operates through three primary segments: Sample Management Solutions, Multiomics, and B Medical Systems. As of June 30, 2024, Azenta had total revenues of $486.3 million, a slight decrease from $492.7 million during the same period in 2023.

Financial Performance

In the three months ended June 30, 2024, Azenta reported total revenue of $172.8 million, up from $165.9 million in the corresponding period in 2023. The revenue breakdown for the three months ended June 30, 2024, is as follows:

Operating Income and Loss

For the nine months ended June 30, 2024, Azenta recorded an operating loss of $188.4 million compared to a loss of $56.5 million in the same period in 2023. The significant increase in loss was primarily due to a non-cash impairment of goodwill and intangible assets amounting to $116 million.

Net Loss Analysis

Azenta reported a net loss of $159.2 million for the nine months ended June 30, 2024, compared to a net loss of $17.6 million for the same period in 2023. The net loss per share for the nine months ended June 30, 2024, was $2.90, compared to $0.26 for the same period in 2023.

Share Repurchase Program

As of June 30, 2024, Azenta had repurchased 25.1 million shares under its $1.5 billion share repurchase authorization, with a total expenditure of $1.25 billion. The remaining authorization as of this date was $249 million.

Cash Flow and Liquidity

Cash inflows from operating activities for the nine months ended June 30, 2024, were $36.6 million. The company reported total cash, cash equivalents, and restricted cash of $346.9 million as of June 30, 2024.

Market Trends and Outlook

Azenta's strategic realignment into three segments aims to enhance its commercial strategy and accelerate growth. The company continues to focus on operational efficiencies and innovation within its segments to drive future profitability.

Segment Performance Overview

The financial performance of Azenta's segments for the nine months ended June 30, 2024, is detailed below:

Balance Sheet Highlights

As of June 30, 2024, Azenta's total stockholders' equity was $1.99 billion, down from $2.53 billion as of September 30, 2023. The company had no outstanding debt, providing a strong liquidity position moving forward.

With a focus on enhancing its operational capabilities and addressing recent challenges, Azenta aims to leverage its strengths in sample management and multiomics to foster growth and improve profitability in the coming fiscal periods.

A Who Owns Azenta, Inc. (AZTA)

Major Shareholders

As of June 30, 2024, the ownership structure of Azenta, Inc. (AZTA) is detailed as follows:

Top Institutional Investors

The following are the top institutional investors holding shares in Azenta, Inc. as of June 30, 2024:

Insider Ownership Breakdown

The insider ownership includes executives and board members of Azenta, Inc. as of June 30, 2024:

Recent Share Repurchase Activity

As of June 30, 2024, Azenta, Inc. has engaged in significant share repurchase activities:

Stock Performance

The stock performance metrics for Azenta, Inc. as of June 30, 2024, are as follows:

Share Structure

As of June 30, 2024, the share structure of Azenta, Inc. is as follows:

Azenta, Inc. (AZTA) Mission Statement

Company Overview

Azenta, Inc. operates in the life sciences sector, focusing on sample management solutions and multiomics. As of June 30, 2024, Azenta reported total revenues of $486.3 million, representing a decrease of 1% compared to $492.7 million for the same period in 2023.

Mission Statement

Azenta’s mission is to provide the life sciences industry with innovative solutions that enhance the management and preservation of biological samples and data. The company aims to empower researchers and scientists to accelerate discoveries in genomics, proteomics, and other fields through reliable sample management and advanced technologies.

Financial Performance

For the three months ended June 30, 2024, Azenta reported a net loss of $6.6 million, compared to a net loss of $1.5 million in the same period of 2023. The company's operating loss for the nine months ended June 30, 2024, was $188.4 million, significantly higher than the $56.5 million loss reported for the same period in the previous year.

Revenue Breakdown

Cost Structure

Operating expenses for the three months ended June 30, 2024, totaled $83.8 million, slightly down from $83.8 million in the previous year. The major components of operating expenses include:

• Research and Development: $7.9 million (4.6% of revenue)
• Selling, General and Administrative: $73.8 million (42.7% of revenue)
• Restructuring Charges: $2.1 million
• Impairment of Goodwill and Intangible Assets: $116.0 million for the nine months ended June 30, 2024.

Market Position

As of June 30, 2024, Azenta's stockholders' equity stood at $2.0 billion, with cash and cash equivalents reported at $336.5 million. The company had no outstanding debt on its balance sheet.

Strategic Initiatives

Azenta has implemented a share repurchase program, authorized in November 2022, allowing for the repurchase of up to $1.5 billion in common stock. As of June 30, 2024, the company repurchased 25.1 million shares for $1.25 billion.

Global Reach

For the three months ended June 30, 2024, revenues generated outside the United States accounted for approximately 45% of total revenue, amounting to $77.6 million. This reflects Azenta's ongoing commitment to expanding its international market presence.

How Azenta, Inc. (AZTA) Works

Business Overview

Azenta, Inc. operates primarily in the life sciences and biotechnology sectors, providing sample management solutions, multiomics services, and cold chain equipment through its various business segments. The company focuses on enhancing the efficiency and reliability of biological sample management and analysis.

Financial Performance

For the three months ended June 30, 2024, Azenta reported total revenue of $172.8 million, an increase of 4% compared to $165.9 million in the same period in 2023. The revenue performance was driven by a 7% increase in the Sample Management Solutions and B Medical Systems segments, while the Multiomics segment remained flat.

Gross Margin and Operating Expenses

As of June 30, 2024, Azenta's gross margin was 40%, compared to 41% in the same quarter last year. This decrease was attributed to higher amortization expenses and transformation costs. Operating expenses for the three months ended June 30, 2024, were $83.8 million, relatively flat compared to $83.8 million in the prior year.

Net Loss

Azenta reported a net loss of $6.6 million for the three months ended June 30, 2024, compared to a net loss of $1.5 million for the same period in 2023. The increase in net loss was primarily driven by decreased interest and other income.

Segment Performance

In the Sample Management Solutions segment, the operating income was $2.5 million for Q3 2024, compared to an operating income of $0.1 million in Q3 2023. The Multiomics segment reported an operating loss of $1.8 million, improving from a loss of $4.6 million in the previous year. The B Medical Systems segment had an operating loss of $10.3 million, compared to a loss of $7.1 million in Q3 2023.

Liquidity and Capital Resources

As of June 30, 2024, Azenta had cash and cash equivalents of $336.5 million and total assets of approximately $2.0 billion. The company reported a significant decrease in cash from $678.9 million at the end of the previous fiscal year due to investments and share repurchases.

Research and Development Expenses

Research and development expenses for the three months ended June 30, 2024, totaled $7.9 million, representing 4.6% of revenue, down from $9.0 million or 5.4% of revenue in Q3 2023. This decline reflects cost reduction initiatives across all segments.

Restructuring Initiatives

In fiscal year 2024, Azenta initiated restructuring plans to optimize resources, leading to restructuring charges of $2.1 million in Q3 2024. The total restructuring charges for the nine months ended June 30, 2024, were $10.5 million.

Market Risks

Azenta is exposed to various market risks, including fluctuations in foreign currency exchange rates and changes in interest rates, which could impact the returns on cash and investments.

How Azenta, Inc. (AZTA) Makes Money

Revenue Streams

Azenta, Inc. generates revenue primarily through three segments: Sample Management Solutions, Multiomics, and B Medical Systems. The revenue performance for the three months and nine months ended June 30, 2024, is detailed below:

Sample Management Solutions

This segment includes Automated Stores, Cryogenic Systems, Automated Sample Tubes, and Consumables and Instruments. Revenue from this segment increased by 7% compared to the prior year, driven by growth in the Cryogenic Systems and Sample Repository Solutions businesses.

Multiomics

The Multiomics segment includes services such as Next Generation Sequencing and Gene Synthesis. Revenue remained relatively flat, with slight growth offset by declines in Sanger sequencing services.

B Medical Systems

Revenue in this segment decreased by 24% compared to the previous year due to timing of orders for cold chain equipment. The segment showed a 7% increase in the most recent quarter compared to the prior year.

Gross Profit and Margins

The gross profit and margins for the three months and nine months ended June 30, 2024, are as follows:

Operating Expenses

Operating expenses for the three and nine months ended June 30, 2024, are detailed below:

Net Loss

Azenta reported a net loss for the three and nine months ended June 30, 2024, as follows:

Interest Income

Interest income for the three and nine months ended June 30, 2024, is detailed below:

Share Repurchase Program

As of June 30, 2024, Azenta had repurchased 25.1 million shares of common stock for $1.25 billion under its $1.5 billion share repurchase authorization.