IDEXX Laboratories, Inc. (IDXX) Bundle
A Brief History of IDEXX Laboratories, Inc.
Company Overview
IDEXX Laboratories, Inc. is a leading global provider of veterinary diagnostic products and services, with a strong focus on innovation and technology. Headquartered in Westbrook, Maine, IDEXX has been at the forefront of the veterinary diagnostics industry since its inception.
Recent Financial Performance
As of September 30, 2024, IDEXX reported total revenue of $2.943 billion for the nine months ended, representing a year-over-year increase from $2.759 billion in 2023. This reflects a growth of approximately 6.7%.
| Financial Metrics | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $2,943 million | $2,759 million | 6.7% |
| Net Income | $671.7 million | $650.5 million | 3.3% |
| Earnings Per Share (Diluted) | $8.05 | $7.75 | 3.9% |
Acquisitions and Strategic Growth
On February 1, 2024, IDEXX acquired a software and data platform business for approximately $81.1 million. This acquisition aims to enhance IDEXX's practice management system and expand its data solutions capabilities.
Operating Segments Performance
For the nine months ended September 30, 2024, IDEXX's revenue by operating segment is detailed below:
| Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| CAG (Companion Animal Group) | $2,703,573 | $2,531,091 | 6.8% |
| Water | $139,959 | $126,362 | 10.8% |
| LPD (Livestock, Poultry, and Dairy) | $87,503 | $88,866 | (1.5%) |
Cash Flow and Capital Expenditure
For the nine months ended September 30, 2024, cash used in investing activities increased to $167.2 million, up from $94.8 million in the prior year, primarily due to acquisition activities. The capital expenditure outlook for 2024 is estimated at $160 million.
Stockholder Equity and Share Repurchases
IDEXX has been active in managing its capital structure, with significant share repurchases totaling $591 million during the nine months ended September 30, 2024. As of September 30, 2024, total stockholders' equity stood at $1.618 billion.
| Stockholder Metrics | Value as of September 30, 2024 |
|---|---|
| Stockholders' Equity | $1,618 million |
| Repurchased Shares (2024) | $591 million |
Debt and Liquidity Position
As of September 30, 2024, IDEXX reported total debt of $878.8 million with a debt to adjusted EBITDA ratio of 0.67. The company maintains a strong liquidity position with cash and cash equivalents of $308.6 million.
A Who Owns IDEXX Laboratories, Inc. (IDXX)
Major Shareholders
As of 2024, the ownership structure of IDEXX Laboratories, Inc. (IDXX) is characterized by a mix of institutional and individual investors. The largest shareholders include:
| Shareholder Type | Number of Shares Owned | Percentage Ownership |
|---|---|---|
| Institutional Investors | 66,000,000 | 81.5% |
| Individual Investors | 15,000,000 | 18.5% |
Top Institutional Investors
The following table outlines the top institutional investors in IDEXX Laboratories, Inc. along with their respective shareholdings:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 14,500,000 | 17.7% |
| BlackRock, Inc. | 13,200,000 | 16.1% |
| State Street Corporation | 10,500,000 | 12.9% |
| FMR LLC (Fidelity) | 8,000,000 | 9.8% |
| Invesco Ltd. | 4,500,000 | 5.5% |
Executive Ownership
In addition to institutional investors, executive officers and directors also hold a significant number of shares:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Jonathan Ayers | Chairman & CEO | 1,200,000 | 1.5% |
| Brian McKeon | CFO | 500,000 | 0.6% |
| J. Scott B. Timmons | COO | 300,000 | 0.4% |
| Board of Directors | Various | 1,000,000 | 1.2% |
Market Capitalization
The market capitalization of IDEXX Laboratories, Inc. as of early 2024 is approximately $8.1 billion, indicating a robust valuation in the diagnostics and veterinary services sector.
Stock Performance
As of January 2024, IDEXX Laboratories, Inc. (IDXX) shares are trading at approximately $100 per share, reflecting a year-to-date increase of 15%.
Recent Financial Highlights
For the nine months ended September 30, 2024, IDEXX reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenue | $2,943,216,000 |
| Net Income | $671,718,000 |
| Operating Income | $866,651,000 |
| Earnings Per Share (Diluted) | $8.05 |
These figures highlight the financial strength of IDEXX Laboratories, Inc. and its position as a leader in the veterinary diagnostics market.
IDEXX Laboratories, Inc. (IDXX) Mission Statement
IDEXX Laboratories, Inc. focuses on enhancing the health and well-being of pets, livestock, and poultry through innovative diagnostics and services. The company's mission statement emphasizes their commitment to providing high-quality veterinary products, advanced diagnostic imaging systems, and cutting-edge software solutions to support veterinarians and animal health professionals worldwide.
Financial Performance Overview
As of September 30, 2024, IDEXX Laboratories reported total revenues of $2,943,216 thousand, an increase of $183,864 thousand or 6.7% compared to the previous year.
| Financial Metrics | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| Total Revenues | $2,943,216 | $2,759,352 | $183,864 | 6.7% |
| Cost of Revenue | $1,134,949 | $1,095,549 | $39,400 | 3.6% |
| Gross Profit | $1,808,267 | $1,663,803 | $144,464 | 8.7% |
| Operating Expenses | $941,616 | $811,977 | $129,639 | 16.0% |
| Income from Operations | $866,651 | $851,826 | $14,825 | 1.7% |
Revenue by Segment
The revenue breakdown by segment for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) | Percentage of Total Revenue |
|---|---|---|
| Companion Animal Group (CAG) | $2,703,573 | 91.8% |
| Water | $139,959 | 4.8% |
| Livestock, Poultry, and Dairy (LPD) | $87,503 | 3.0% |
| Other | $12,181 | 0.4% |
Recurring Revenue Growth
IDEXX Laboratories has demonstrated strong growth in recurring revenue streams, which are crucial for sustaining long-term business performance. The recurring revenue for CAG Diagnostics for the nine months ended September 30, 2024, was $2,372,041 thousand, reflecting a growth of 6.7% from $2,223,336 thousand in 2023.
| Recurring Revenue Metrics | 2024 (in thousands) | 2023 (in thousands) | Change (in thousands) | Percentage Change |
|---|---|---|---|---|
| CAG Diagnostics Recurring Revenue | $2,372,041 | $2,223,336 | $148,705 | 6.7% |
| IDEXX VetLab Consumables | $971,405 | $890,891 | $80,514 | 9.0% |
| Rapid Assay Products | $282,379 | $266,934 | $15,445 | 5.8% |
| Reference Laboratory Diagnostic Services | $1,020,094 | $973,580 | $46,514 | 4.8% |
Cash and Liquidity Position
As of September 30, 2024, IDEXX Laboratories had cash and cash equivalents totaling $308.6 million, a decrease from $453.9 million as of December 31, 2023. The company's working capital was $424.5 million as of September 30, 2024.
| Cash and Liquidity Metrics | September 30, 2024 (in thousands) | December 31, 2023 (in thousands) |
|---|---|---|
| Cash and Cash Equivalents | $308,636 | $453,932 |
| Working Capital | $424,500 | $543,700 |
| Remaining Borrowing Availability | $998,200 | N/A |
How IDEXX Laboratories, Inc. (IDXX) Works
Company Overview
IDEXX Laboratories, Inc. is a global leader in veterinary diagnostics and software, providing a wide range of products and services to veterinarians and animal health professionals. The company operates through multiple segments, including Companion Animal Group (CAG), Livestock, Poultry and Dairy (LPD), and Water.
Financial Performance
For the nine months ended September 30, 2024, IDEXX reported total revenues of $2,943,216 thousand, reflecting a 6.7% increase from $2,759,352 thousand in the same period of 2023. The gross profit for the same period was $1,808,267 thousand, representing a gross profit margin of 61.4%.
| Metrics | 2024 | 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenues | $2,943,216 | $2,759,352 | $183,864 | 6.7% |
| Gross Profit | $1,808,267 | $1,663,803 | $144,464 | 8.7% |
| Operating Income | $866,651 | $851,826 | $14,825 | 1.7% |
Segment Performance
The performance of IDEXX's segments for the three months ended September 30, 2024, is summarized below:
| Segment | Revenues (in thousands) | Cost of Revenue (in thousands) | Gross Profit (in thousands) | Gross Profit Margin (%) |
|---|---|---|---|---|
| Companion Animal Group | $891,990 | $347,529 | $544,461 | 61.0% |
| Livestock, Poultry, and Dairy | $87,503 | $42,084 | $45,419 | 51.9% |
| Water | $139,959 | $42,633 | $97,326 | 69.5% |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $941,616 thousand, which is 32.0% of total revenue. This represents an increase from $811,977 thousand in the same period of 2023.
| Operating Expense Type | 2024 (in thousands) | 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Sales and Marketing | $438,399 | $424,034 | $14,365 | 3.4% |
| General and Administrative | $341,154 | $248,804 | $92,350 | 37.1% |
| Research and Development | $162,063 | $139,139 | $22,924 | 16.5% |
Net Income and Earnings Per Share
IDEXX reported net income of $671,718 thousand for the nine months ended September 30, 2024, leading to earnings per share of $8.05 (diluted), compared to $7.75 in the same period of 2023.
| Financial Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in thousands) | $671,718 | $650,521 |
| Earnings Per Share (Diluted) | $8.05 | $7.75 |
Cash Flow and Liquidity
IDEXX's cash and cash equivalents were $308.6 million as of September 30, 2024, down from $453.9 million at the end of 2023. The company had working capital of $424.5 million as of September 30, 2024.
For the nine months ended September 30, 2024, net cash provided by operating activities was $666,976 thousand, with significant investments in property and equipment totaling $91,667 thousand.
| Cash Flow Metric | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Net Cash Provided by Operating Activities | $666,976 | $656,659 |
| Cash Used in Investing Activities | $167,219 | $94,819 |
Debt and Financial Ratios
IDEXX had total debt of $878,834 thousand as of September 30, 2024, with a gross debt to adjusted EBITDA ratio of 0.67 and a net debt to adjusted EBITDA ratio of 0.43.
| Debt Metric | Amount (in thousands) |
|---|---|
| Total Debt | $878,834 |
| Gross Debt to Adjusted EBITDA Ratio | 0.67 |
| Net Debt to Adjusted EBITDA Ratio | 0.43 |
How IDEXX Laboratories, Inc. (IDXX) Makes Money
Revenue Streams
IDEXX Laboratories generates revenue through multiple segments, primarily focusing on diagnostics for companion animals, livestock, poultry, dairy, and water. As of 2024, the Companion Animal Group (CAG) remains the largest contributor, with significant revenue from diagnostics, consumables, and software services.
| Segment | Revenue (2024) | Revenue (2023) | Dollar Change | Growth Rate (%) |
|---|---|---|---|---|
| Companion Animal Group | $2,703,573,000 | $2,531,091,000 | $172,482,000 | 6.8 |
| Livestock, Poultry, and Dairy | $87,503,000 | $88,866,000 | ($1,363,000) | (1.5) |
| Other | $12,181,000 | $13,033,000 | ($852,000) | (6.5) |
Companion Animal Group (CAG) Revenue Breakdown
The CAG segment is further divided into several categories:
| Category | Revenue (2024) | Revenue (2023) | Dollar Change | Growth Rate (%) |
|---|---|---|---|---|
| CAG Diagnostics Recurring Revenue | $783,443,000 | $733,958,000 | $49,485,000 | 6.7 |
| IDEXX VetLab Consumables | $329,128,000 | $296,042,000 | $33,086,000 | 11.2 |
| Rapid Assay Products | $92,774,000 | $87,562,000 | $5,212,000 | 6.0 |
| Reference Laboratory Diagnostic and Consulting Services | $328,383,000 | $320,294,000 | $8,089,000 | 2.5 |
| CAG Diagnostics Services and Accessories | $33,158,000 | $30,060,000 | $3,098,000 | 10.3 |
| CAG Diagnostics Capital - Instruments | $29,528,000 | $32,254,000 | ($2,726,000) | (8.4) |
| Veterinary Software, Services and Diagnostic Imaging Systems | $79,019,000 | $70,948,000 | $8,071,000 | 11.4 |
Operating Expenses
IDEXX's operating expenses consist of sales and marketing, general and administrative, and research and development costs:
| Expense Type | Amount (2024) | Amount (2023) | Dollar Change | Percentage of Revenue (%) |
|---|---|---|---|---|
| Sales and Marketing | $438,399,000 | $424,034,000 | $14,365,000 | 14.9 |
| General and Administrative | $341,154,000 | $248,804,000 | $92,350,000 | 11.6 |
| Research and Development | $162,063,000 | $139,139,000 | $22,924,000 | 5.5 |
| Total Operating Expenses | $941,616,000 | $811,977,000 | $129,639,000 | 32.0 |
Net Income and Earnings Per Share
IDEXX reported a net income of $671,718,000 for the nine months ended September 30, 2024, compared to $650,521,000 in the same period of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $671,718,000 | $650,521,000 |
| Basic Earnings Per Share | $8.12 | $7.83 |
| Diluted Earnings Per Share | $8.05 | $7.75 |
Future Revenue Estimates
IDEXX's future revenue from customer commitment arrangements is estimated to be approximately $4.2 billion. The breakdown of expected revenue recognition is as follows:
| Year | Percentage of Revenue |
|---|---|
| Remainder of 2024 | 7% |
| 2025 | 27% |
| 2026 | 24% |
| 2027 | 19% |
| Thereafter | 23% |
Cash Flow Overview
For the nine months ended September 30, 2024, IDEXX reported cash flows from operating activities of $666,976,000, compared to $656,659,000 for the same period in 2023.
| Cash Flow Activity | 2024 | 2023 |
|---|---|---|
| Net Cash from Operating Activities | $666,976,000 | $656,659,000 |
| Cash Used in Investing Activities | ($167,219,000) | ($94,819,000) |
| Cash Used in Financing Activities | ($645,291,000) | ($340,152,000) |
| Cash and Cash Equivalents at End of Period | $308,636,000 | $331,696,000 |
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Article updated on 8 Nov 2024
Resources:
- IDEXX Laboratories, Inc. (IDXX) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of IDEXX Laboratories, Inc. (IDXX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View IDEXX Laboratories, Inc. (IDXX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.