Azenta Reports Strong Financial Growth and Expansion

Azenta, Inc. has just held its Investor Day, where the company's leadership shared its vision for sustained profitable growth. The company, a leading life sciences organization, provided insights into its financial performance and key growth drivers.

In terms of financial performance, the company reported a 5-8% growth in revenue from FY'23 to FY'24E, expecting to reach $696-718 million. Additionally, Azenta has seen significant improvement in its adjusted EBITDA margin, with over 300 basis points expansion from the first half to the second half of 2023. This was attributed to cost actions resulting in $28 million in annual savings and the company is on track for around 300 basis points of adjusted EBITDA margin expansion from FY'23 to FY'24E.

Azenta's growth strategy revolves around its key business segments, including B Medical Sample Management Solutions and Multiomics. The company is investing in multiple growth drivers, such as capitalizing on the wave of samples, converting to automation, introducing new scientific service offerings, and geographic expansion. The company is uniquely positioned to outperform end market growth and has a highly differentiated sample management portfolio.

For B Medical, Azenta aims to deliver more reliable quarterly profitability, focusing its portfolio exclusively on Vaccine Cold Chain (VCC) and exiting non-VCC product lines. Furthermore, the company sees significant upside opportunities from sample acquisition enabled by the B Medical platform.

In addition, the Multiomics segment is driving growth through investments in new scientific areas, geographic expansion, and capacity expansion in key labs, aiming to remain at the forefront of NGS technology transformation.

Azenta's near-term repositioning is geared towards enhancing profitability, with a focus on delivering more reliable quarterly profitability and identifying significant upside opportunities from sample acquisition enabled by the B Medical platform.

Looking ahead, the company is planning for sustained profitable growth, transformation for scale and growth, disciplined capital allocation strategy, and has outlined a roadmap to 2026, aiming for a 5-8% revenue growth from FY’23 to FY’26 and >45% CAGR in adjusted EBITDA margin from FY’24 to FY’26.

As a result of these announcements, the company's shares have moved -7.6% on the market, and are now trading at a price of $59.21. For the full picture, make sure to review Azenta's 8-K report.

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