Azenta, Inc. (AZTA): Business Model Canvas [10-2024 Updated]

Understanding the business model of Azenta, Inc. (AZTA) reveals the intricate strategies that drive its success in the life sciences sector. Through a combination of key partnerships, innovative activities, and a robust value proposition, Azenta is positioned to meet the diverse needs of its customers, including pharmaceutical companies and healthcare providers. In this blog post, we will delve into the components of the Business Model Canvas for Azenta, exploring how each element contributes to its operational efficiency and market competitiveness.

Azenta, Inc. (AZTA) - Business Model: Key Partnerships

Collaborations with Research Institutions

Azenta, Inc. has established partnerships with various research institutions to enhance their product offerings and accelerate innovation in sample management and genomics. These collaborations often involve joint research projects, access to proprietary technologies, and shared resources.

For instance, Azenta collaborates with leading universities and research centers to develop advanced cryogenic storage solutions, which are crucial for preserving biological samples. Such partnerships not only contribute to technological advancements but also help in validating the company’s products within academic and clinical settings.

Strategic Alliances with Biotechnology Firms

Azenta has formed strategic alliances with several biotechnology firms to leverage complementary strengths and expand market reach. These partnerships allow Azenta to integrate innovative biotechnological advancements into their sample management solutions.

One notable collaboration is with companies specializing in Next Generation Sequencing (NGS) technologies. This alliance aims to enhance the efficacy and reliability of sample processing and analysis, thereby improving outcomes for genetic research and diagnostics.

Partnership	Focus Area	Impact on Revenue
B Medical Systems	Cold chain solutions for temperature-sensitive specimens	Revenue increased by 7% in Q3 2024 compared to Q3 2023
Various Biotech Firms	Integration of NGS technologies	Expected incremental revenue growth in Sample Management Solutions
Academic Institutions	Joint research and product validation	Strengthened product credibility and market adoption

Partnerships with Healthcare Organizations

Azenta's partnerships with healthcare organizations are crucial for expanding their reach in the clinical market. These collaborations often involve providing tailored solutions that meet specific healthcare needs, such as sample tracking and management for clinical trials.

Moreover, Azenta has worked with hospitals and clinical laboratories to implement their systems for better sample management, which is essential for improving patient outcomes and operational efficiencies.

In the fiscal year 2024, revenue generated from healthcare partnerships contributed significantly to the overall financial performance of the company, with a notable increase in demand for sample management solutions.

Healthcare Partner	Collaboration Type	Revenue Contribution (2024)
Major Hospital Networks	Implementation of sample management systems	$30 million
Clinical Labs	Customized solutions for specimen tracking	$25 million
Pharmaceutical Companies	Support for clinical trials	$20 million

Azenta, Inc. (AZTA) - Business Model: Key Activities

Development of life sciences solutions

Azenta, Inc. focuses on developing innovative life sciences solutions that cater to the needs of researchers and laboratories. In the three months ended June 30, 2024, the company generated revenue of $172.8 million, reflecting a 4% increase from the previous year, driven largely by its Sample Management Solutions segment, which saw revenue of $80.7 million.

The company invests significantly in research and development, with expenses amounting to $7.9 million for the three months ended June 30, 2024, which represents approximately 4.6% of total revenue. This investment is aimed at enhancing its product offerings and maintaining a competitive edge in the life sciences market.

Management of sample repositories

Azenta's management of sample repositories is a critical activity that supports its value proposition. The Sample Management Solutions segment includes services related to the preservation, tracking, and management of biological samples. In the nine months ended June 30, 2024, revenue from this segment amounted to $233.8 million, up from $221.8 million in the same period the previous year.

The gross margin for the Sample Management Solutions segment was reported at 43.8% for the nine months ended June 30, 2024, indicating operational efficiency and effective cost management. Additionally, the company has committed $53.3 million in non-cancellable purchase orders for inventory, underscoring its focus on maintaining robust sample management capabilities.

Conducting genomic analysis and sequencing

Azenta is actively involved in genomic analysis and sequencing, which are essential components of its Multiomics segment. Revenue from this segment was $63.6 million for the three months ended June 30, 2024, slightly down from $63.8 million in the prior year. The company is focusing on expanding its capabilities in genomic services, which are increasingly in demand in research and clinical settings.

The gross margin for the Multiomics segment was 45.3% for the nine months ended June 30, 2024, reflecting a stable performance despite fluctuations in service demand. Azenta's investments in advanced sequencing technologies and partnerships with research institutions position it well to capitalize on growth opportunities in genomic analysis, which is projected to continue expanding in the coming years.

Key Activity	Revenue (Q3 2024)	Gross Margin (9M 2024)	R&D Expenses (Q3 2024)	Non-cancellable Commitments
Life Sciences Solutions Development	$172.8 million	N/A	$7.9 million	N/A
Sample Repository Management	$80.7 million	43.8%	N/A	$53.3 million
Genomic Analysis and Sequencing	$63.6 million	45.3%	N/A	N/A

Azenta, Inc. (AZTA) - Business Model: Key Resources

Proprietary technology and patents

Azenta, Inc. has developed a range of proprietary technologies that are integral to its operations, particularly in the life sciences sector. The company holds various patents related to its Sample Management Solutions and Multiomics platforms. For example, as of June 30, 2024, the company has recognized amortization of completed technology amounting to $18.3 million for the nine months ended June 30, 2024. This reflects the significant investment in technology that supports its product offerings.

Skilled workforce in life sciences

Azenta employs a highly skilled workforce that is essential for maintaining its competitive edge in the life sciences industry. The company invested approximately $25.1 million in research and development (R&D) for the nine months ended June 30, 2024, representing 5.2% of total revenue. This investment indicates a commitment to fostering talent and innovation within the organization. The reduction in R&D expenses compared to the prior period was driven by cost-saving initiatives, highlighting the efficiency of its workforce.

Comprehensive product portfolio

Azenta's product portfolio includes a diverse range of solutions across its business segments, including Sample Management Solutions, Multiomics, and B Medical Systems. For the nine months ended June 30, 2024, the company generated total revenue of $486.3 million, which reflects a slight decrease of 1.3% compared to the prior year. The breakdown of revenue by segment is as follows:

Segment	Revenue (2024)	Revenue (2023)	% Change
Sample Management Solutions	$233.8 million	$221.8 million	5.4%
Multiomics	$188.6 million	$187.2 million	0.7%
B Medical Systems	$63.9 million	$83.7 million	(23.7)%
Total	$486.3 million	$492.7 million	(1.3)%

The comprehensive nature of Azenta's product offerings allows it to cater to various customer needs, thereby enhancing its market presence and customer loyalty.

Azenta, Inc. (AZTA) - Business Model: Value Propositions

End-to-end sample management solutions

Azenta, Inc. offers comprehensive sample management solutions that streamline the handling and storage of biological samples. The Sample Management Solutions segment generated revenue of $80.7 million for the three months ended June 30, 2024, a 7.2% increase from $75.3 million in the same period of 2023. This growth is attributed to enhanced operational efficiencies and an increase in service demand.

The operating income for this segment reached $2.5 million, compared to just $0.1 million in the prior year, reflecting a significant improvement in operational performance. The operating margin for this segment improved to 3.1%, a rise of 297 basis points year-over-year.

Azenta's offerings include:

• Sample Repository Solutions
• Automated Stores
• Cryogenic Systems
• Automated Sample Tubes
• Consumables and Instruments

High-quality genomic services

In the Multiomics segment, Azenta provides high-quality genomic services, including gene sequencing and gene synthesis. For the three months ended June 30, 2024, this segment reported revenue of $63.6 million, slightly down from $63.8 million in the previous year.

The operating loss for the Multiomics segment was $1.8 million, an improvement from a loss of $4.6 million during the same period in 2023. The operating margin showed a positive shift, improving by 448 basis points to -2.8%. The adjusted operating loss for the nine months ended June 30, 2024 was $7.1 million, compared to $10.5 million for the same period in 2023.

This segment's advancements in genomic technology and increased demand for genomic data analytics contribute to its value proposition, positioning Azenta as a leader in this rapidly evolving field.

Reliable cold chain logistics for temperature-sensitive specimens

Azenta's B Medical Systems segment focuses on reliable cold chain logistics for temperature-sensitive specimens. This segment generated revenue of $28.5 million for the three months ended June 30, 2024, compared to $26.8 million in the prior year. However, the segment recorded an operating loss of $19.1 million for the nine months ended June 30, 2024, compared to a loss of $13.6 million in the same period of the previous year.

The operational challenges faced by this segment include a product mix with lower volumes of cold chain sales, leading to an operating margin of -29.9%, down 1,370 basis points year-over-year. Despite these challenges, Azenta continues to innovate in temperature-controlled storage and transportation solutions, which remain critical for maintaining the integrity of biological samples in transit.

Segment	Revenue (Q3 2024)	Operating Income (Loss)	Operating Margin
Sample Management Solutions	$80.7 million	$2.5 million	3.1%
Multiomics	$63.6 million	($1.8 million)	-2.8%
B Medical Systems	$28.5 million	($19.1 million)	-29.9%

Azenta, Inc. (AZTA) - Business Model: Customer Relationships

Dedicated customer support teams

Azenta, Inc. places significant emphasis on dedicated customer support teams to enhance customer satisfaction and retention. The company reported a gross margin of 40% for the three months ended June 30, 2024, indicating a stable cost management approach that supports customer service initiatives. Additionally, Azenta has a strong focus on improving customer interaction, which is reflected in their operational efficiency efforts that have contributed to a reduction in selling, general, and administrative expenses.

Consultative selling approach

Azenta employs a consultative selling approach to build strong relationships with clients. This strategy allows the company to tailor its solutions to meet specific client needs, thus driving revenue growth. For the nine months ended June 30, 2024, Azenta's revenue from its Sample Management Solutions segment increased by 5% to $233.8 million compared to the previous year. This growth underscores the effectiveness of their consultative approach in identifying and addressing customer requirements.

Long-term partnerships with clients

Establishing long-term partnerships is a core component of Azenta's customer relationship strategy. The company's revenue generated outside the United States was $212.1 million, representing 44% of total revenue for the nine months ended June 30, 2024. Such international partnerships enhance the company's market presence and contribute to sustained revenue streams. Azenta's focus on client retention and ongoing support is evident in their customer service metrics, which are designed to foster loyalty and long-term engagement.

Customer Relationship Strategy	Key Metrics	Financial Impact
Dedicated customer support teams	Gross Margin: 40%	Stable operational efficiency supporting customer service
Consultative selling approach	Revenue from Sample Management Solutions: $233.8 million	5% increase in revenue compared to the previous year
Long-term partnerships with clients	Revenue outside U.S.: $212.1 million (44% of total revenue)	Enhanced market presence and sustained revenue streams

Azenta, Inc. (AZTA) - Business Model: Channels

Direct sales to laboratories and healthcare providers

Azenta, Inc. utilizes a direct sales approach to reach laboratories and healthcare providers, generating significant revenue from these channels. For the nine months ended June 30, 2024, total revenue was reported at $486.26 million, slightly down from $492.72 million in the same period of 2023. The Sample Management Solutions segment, which includes direct sales to laboratories, contributed $233.82 million, showing a 5.4% increase from $221.84 million in the previous year.

Online platforms for service accessibility

Azenta has developed robust online platforms to enhance service accessibility for its customers. These platforms facilitate order processing, customer support, and service inquiries. The online segment has become increasingly important, especially as digital transformation accelerates in the healthcare sector. The company reported that 25% of total sales were conducted in currencies other than the U.S. dollar, indicating a broad international reach facilitated by its online capabilities.

Industry conferences and trade shows

Participation in industry conferences and trade shows is a critical channel for Azenta to showcase its products and services. These events allow direct interaction with potential customers and industry stakeholders. Revenue from external customers in the United States alone reached $95.20 million for the three months ended June 30, 2024, indicating the importance of in-person engagements at such events.

Channel Type	2024 Revenue Contribution	2023 Revenue Contribution	% Change
Direct Sales to Laboratories	$233.82 million	$221.84 million	5.4%
Online Sales	Not Specified	Not Specified	Not Specified
Industry Conferences	$95.20 million (U.S. Sales)	$89.20 million (U.S. Sales)	7.1%

Azenta, Inc. (AZTA) - Business Model: Customer Segments

Pharmaceutical and Biotechnology Companies

Azenta, Inc. serves pharmaceutical and biotechnology companies by providing comprehensive solutions for sample management and analysis. In the three months ended June 30, 2024, revenue from the Sample Management Solutions segment was $80.7 million, reflecting a 7.1% increase from the previous year. This segment includes offerings such as cryogenic systems and automated sample storage solutions, which are critical for drug development and clinical trials.

Academic and Research Institutions

Academic and research institutions represent a significant customer segment for Azenta, particularly in the Multiomics and Sample Management Solutions segments. For the nine months ended June 30, 2024, revenue from the Multiomics segment was $188.6 million, a slight increase of 0.7% compared to the prior year. This segment includes services such as gene sequencing and synthesis, which are essential for research in genomics and personalized medicine.

Hospitals and Healthcare Providers

Hospitals and healthcare providers utilize Azenta’s B Medical Systems segment, which focuses on temperature-controlled storage and transportation solutions. For the three months ended June 30, 2024, revenue from this segment was $28.5 million, a 6.6% increase from the previous year. This segment is particularly important for managing biological samples and ensuring compliance with regulations regarding the storage of sensitive materials.

Customer Segment	Revenue (Q3 2024)	Growth Rate	Key Offerings
Pharmaceutical and Biotechnology Companies	$80.7 million	7.1%	Cryogenic Systems, Automated Sample Storage
Academic and Research Institutions	$188.6 million	0.7%	Gene Sequencing, Gene Synthesis
Hospitals and Healthcare Providers	$28.5 million	6.6%	Temperature-Controlled Storage Solutions

Azenta, Inc. (AZTA) - Business Model: Cost Structure

Research and Development Expenses

Total research and development expenses for Azenta, Inc. for the nine months ended June 30, 2024, were $25.1 million, compared to $25.0 million for the same period in the previous year. For the three months ended June 30, 2024, R&D expenses were $7.9 million, down from $8.9 million in the same quarter of 2023. This decline is attributed to cost reduction initiatives across all business segments, primarily from decreased expenditures for external services and reduced compensation and benefits expense.

Manufacturing and Operational Costs

The total cost of revenue for Azenta, Inc. for the nine months ended June 30, 2024, was $292.3 million, with manufacturing costs being a significant component of this figure. The breakdown includes:

• Products: $126.1 million
• Services: $166.3 million

For the three months ended June 30, 2024, the total cost of revenue was $103.8 million, which includes:

• Products: $47.6 million
• Services: $56.2 million

Operational costs have been influenced by restructuring charges totaling $10.5 million for the nine months ended June 30, 2024.

Marketing and Sales Expenditures

Marketing and sales expenditures for Azenta, Inc. during the nine months ended June 30, 2024, amounted to $230.7 million, compared to $241.4 million in the same period of 2023. For the three months ended June 30, 2024, these expenses were $73.8 million, down from $75.5 million in the prior year. The reduction in expenses was primarily due to cost-saving initiatives across the business segments, though increased commissions in the B Medical Systems segment due to higher sales have partially offset these savings.

Category	Q3 2024 (in millions)	Q3 2023 (in millions)	YTD 2024 (in millions)	YTD 2023 (in millions)
R&D Expenses	7.9	8.9	25.1	25.0
Total Cost of Revenue	103.8	97.9	292.3	297.6
Marketing and Sales Expenses	73.8	75.5	230.7	241.4

Azenta, Inc. (AZTA) - Business Model: Revenue Streams

Product sales from sample management solutions

As of June 30, 2024, Azenta's revenue from its Sample Management Solutions segment was approximately $80.7 million for the three months ended June 30, 2024, compared to $75.3 million for the same period in the previous year, marking a 7% increase. For the nine months ended June 30, 2024, revenue from this segment totaled $233.8 million, up from $221.8 million in the prior year, reflecting a 5% increase.

Service fees for genomic analysis

In the Multiomics segment, which encompasses genomic analysis services, Azenta generated $63.6 million in revenue for the three months ended June 30, 2024, compared to $63.8 million in the same quarter of 2023. For the nine months ended June 30, 2024, revenue was $188.6 million, slightly up from $187.2 million year-over-year.

Licensing of proprietary technologies and patents

While specific figures for licensing revenue were not detailed in the financial statements, Azenta's strategic focus on proprietary technologies suggests a significant potential revenue stream through licensing agreements. The company's ongoing investments in R&D, which totaled $25.1 million for the nine months ended June 30, 2024, indicate a commitment to developing patented technologies that can be monetized through licensing.

Revenue Stream	Q3 2024 Revenue	Q3 2023 Revenue	9M 2024 Revenue	9M 2023 Revenue
Sample Management Solutions	$80.7 million	$75.3 million	$233.8 million	$221.8 million
Genomic Analysis (Multiomics)	$63.6 million	$63.8 million	$188.6 million	$187.2 million
Licensing of Technologies	N/A	N/A	N/A	N/A