Azenta Reports First Quarter Results for Fiscal 2025, Ended December 31, 2024

Rhea-AI Summary

Azenta (NASDAQ: AZTA) reported Q1 FY2025 results with revenue from continuing operations at $148 million, up 4% year-over-year. The company's performance was marked by growth in both major segments: Sample Management Solutions revenue reached $81 million (+3% YoY) and Multiomics revenue hit $66 million (+6% YoY).

The company reported a diluted EPS loss of ($0.21) from continuing operations and total diluted EPS of ($0.29). Adjusted EBITDA was $13 million with a margin of 9.0%, showing a 400 basis point improvement year-over-year. The quarter ended with $530 million in cash, cash equivalents, and marketable securities, generating free cash flow of $22 million.

For FY2025, Azenta maintains its guidance of 3-5% organic revenue growth and expects adjusted EBITDA margin expansion of approximately 300 basis points compared to FY2024.

Positive

• Revenue increased 4% YoY to $148 million
• Multiomics revenue grew 6% YoY to $66 million
• Adjusted EBITDA margin improved 400 basis points to 9.0%
• Gross margin improved 300 basis points YoY to 46.6%
• Generated strong free cash flow of $22 million
• Maintained healthy cash position of $530 million

Negative

• Operating loss of $11 million with -7.7% operating margin
• Diluted EPS declined to ($0.21) from ($0.13) YoY
• Operating expenses increased 3% YoY to $80 million
• Quarter-over-quarter revenue declined 2%

Insights

Financial Analyst

Azenta's Q1 FY2025 results reveal a complex financial picture that requires careful analysis. The 4% organic revenue growth demonstrates resilience in core operations, particularly in the Multiomics segment which grew 6%. The improvement in gross margin by 300 basis points to 46.6% signals successful operational efficiency initiatives.

Three critical developments warrant attention: First, the decision to divest B Medical Systems marks a strategic shift toward core capabilities in sample management and multiomics. Second, the 400 basis point improvement in Adjusted EBITDA margin to 9.0% reflects successful cost management and operational leverage. Third, strong free cash flow generation of $22 million demonstrates improved working capital management.

The maintained FY2025 guidance of 3-5% organic growth with 300 basis points of margin expansion suggests management's confidence in executing their transformation strategy. However, persistent operating losses ($11 million this quarter) indicate ongoing challenges in achieving sustainable profitability.

Key positive indicators include:

• Robust performance in Next Generation Sequencing and Gene Synthesis
• Strong cash position of $530 million providing strategic flexibility
• Improved operational efficiency reflected in margin expansion

Areas of concern include:

• Sequential revenue decline of 2% from Q4 FY2024
• Continued GAAP operating losses
• Decline in interest income impacting other income

BURLINGTON, Mass., Feb. 5, 2025 /PRNewswire/ -- Azenta, Inc. (Nasdaq: AZTA) today reported financial results for the first quarter ended December 31, 2024.

The results of B Medical Systems are treated as discontinued operations and reflected in total diluted EPS, following the Company's announcement in the fourth fiscal quarter of 2024 of its intention to pursue a sale.
		Quarter Ended
Dollars in millions, except per share data		December 31,				September 30,				December 31,				Change
		2024				2024				2023				Prior Qtr				Prior Yr.
Revenue from Continuing Operations		$	148			$	151			$	142				(2)	%			4	%
Organic growth																			4	%
Sample Management Solutions		$	81			$	85			$	79				(4)	%			3	%
Multiomics		$	66			$	66			$	63				0	%			6	%
Diluted EPS Continuing Operations		$	(0.21)			$	(0.00)			$	(0.13)				NM				(63)	%
Diluted EPS Total		$	(0.29)			$	(0.10)			$	(0.28)				NM				(5)	%
Non-GAAP Diluted EPS Continuing Operations		$	0.08			$	0.22			$	0.08				(64)	%			(1)	%
Adjusted EBITDA - Continuing Operations		$	13			$	18			$	7				(25)	%			89	%
Adjusted EBITDA Margin - Continuing Operations			9.0	%			11.8	%			5.0	%

Management Comments
"Our first quarter results represent a strong start to fiscal 2025 as we see positive momentum in the demand for our unique offering of Sample Management Solutions and Multiomics services," stated John Marotta, President and CEO. "Starting the year like this gives us confidence in the strength of our unique market positioning, value proposition and ability to continue evolving to our customers' needs while delivering profitable growth. We continue to see the benefit of our transformation initiatives and our free cash flow was strong. We are encouraged by the progress we are making."

First Quarter Fiscal 2025 Results - Continuing Operations

• Revenue was $148 million, up 4% year over year. Organic revenue, which excludes a nominal impact from foreign exchange, was also up 4% year over year. The year-over-year revenue increase was attributable to higher Multiomics and Sample Management Solutions revenues. 
• Sample Management Solutions revenue was $81 million, up 3% year over year.
  • Organic revenue grew 2%, mainly driven by higher revenues in Sample Repository Solutions and Core Products, particularly in Consumables and Instruments and Clinical and Cryogenic Stores Systems.
• Multiomics revenue was $66 million, up 6% year over year.
  • Organic revenue also grew 6% year over year, primarily driven by growth in Next Generation Sequencing and Gene Synthesis, partially offset by a year-over-year decline in Sanger Sequencing.

Summary of GAAP Earnings Results - Continuing Operations

• Operating loss was $11 million. Operating margin was (7.7%), up 380 basis points year over year.
  • Gross margin was 46.6%, up 300 basis points year over year, driven by higher revenue, favorable sales mix, operational efficiencies, lower amortization costs, and certain non-recurring items recorded in the same period last year.
  • Operating expenses were $80 million, up 3% year over year, driven by higher selling, general and administrative expenses, partially offset by lower research and development costs, as well as lower restructuring charges.
• Other income included $4 million of net interest income versus $10 million in the prior year period.
• Diluted EPS from continuing operations was ($0.21) compared to ($0.13) in the first quarter of fiscal year 2024. Diluted EPS from discontinued operations was ($0.09). Total diluted EPS was ($0.29), compared to ($0.28) a year ago.

Summary of Non-GAAP Earnings Results - Continuing Operations

• Adjusted operating loss was $0.2 million. Adjusted operating margin was (0.2%), an improvement of 260 basis points year over year.
  • Adjusted gross margin was 47.6%, up 270 basis points compared to the first quarter of fiscal 2024, primarily driven by higher revenue, favorable sales mix, operating efficiencies and certain non-recurring items recorded in the same period last year.
  • Adjusted operating expense in the quarter was $70 million, up 4% year over year, primarily driven by higher selling, general and administrative expenses, partially offset by lower research and development costs.
• Adjusted EBITDA was $13 million, and Adjusted EBITDA margin was 9.0%, an improvement of 400 basis points year over year.
• Non-GAAP Diluted EPS was $0.08, compared to $0.08 one year ago.

Cash and Liquidity as of December 31, 2024

• The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $530 million, which includes $27 million of cash held in discontinued operations. 
• Operating cash flow was $30 million in the quarter. Capital expenditures were $8 million, and free cash flow (cash flow from operations less capital expenditures) was $22 million.

Guidance for Continuing Operations for Full Year Fiscal 2025

• The Company is reiterating its revenue guidance for fiscal year 2025:
  • Total organic revenue is expected to grow in the range of 3% to 5% relative to fiscal 2024. 
  • Adjusted EBITDA margin expansion is expected to be approximately 300 basis points relative to fiscal 2024.

Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments  include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, and other gains and charges that are not representative of the normal operations of the business.

Conference Call and Webcast
Azenta management will webcast its first quarter fiscal 2025 earnings conference call today at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed. 

The call will be broadcast live over the Internet and, together with presentation materials referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events and will be archived online on this website for convenient on-demand replay.

Regulation G – Use of Non-GAAP financial Measures
The Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.

"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934
Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's financial and business results to differ materially from our expectations. They are based on the facts known to management at the time they are made. Forward-looking statements include but are not limited to statements about our revenue and earnings expectations, our ability to realize margin improvement from cost reductions, and our ability to deliver financial success in the future and otherwise related to future operating or financial performance and opportunities. Factors that could cause results to differ from our expectations include the following: our ability to reduce costs effectively; the volatility of the life sciences markets the Company serves; our possible inability to meet demand for our products due to difficulties in obtaining components and materials from our suppliers in required quantities and of required quality; the inability of customers to make payments to us when due; price competition; disputes concerning intellectual property; uncertainties in global political and economic conditions; and other factors and other risks, including those that we have described in our filings with the Securities and Exchange Commission, including but not limited to our Annual Report on Form 10-K, Current Reports on Form 8-K and our Quarterly Reports on Form 10-Q. As a result, we can provide no assurance that our future results will not be materially different from those projected. Azenta expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in our expectations or any change in events, conditions, or circumstance on which any such statement is based. Azenta undertakes no obligation to update the information contained in this press release.

About Azenta Life Sciences
Azenta, Inc. (Nasdaq: AZTA) is a leading provider of life sciences solutions worldwide, enabling impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey.

Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com. 

AZENTA INVESTOR CONTACTS:

Yvonne Perron
Vice President, Financial Planning & Analysis and Investor Relations
ir@azenta.com 

Sherry Dinsmore
sherry.dinsmore@azenta.com 

 

AZENTA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(In thousands, except per share data)
		Three Months Ended
		December 31,
		2024				2023
Revenue
Products		$	43,827			$	43,707
Services			103,683				98,018
Total revenue			147,510				141,725
Cost of revenue
Products			25,334				26,783
Services			53,505				53,199
Total cost of revenue			78,839				79,982
Gross profit			68,671				61,743
Operating expenses
Research and development			6,380				7,313
Selling, general and administrative			73,213				69,889
Restructuring charges			431				786
Total operating expenses			80,024				77,988
Operating loss			(11,353)				(16,245)
Other income
Interest income, net			4,298				9,955
Other income, net			1,203				518
Loss before income taxes			(5,852)				(5,772)
Income tax expense			3,569				1,420
Loss from continuing operations			(9,421)				(7,192)
Loss from discontinued operations, net of tax			(3,919)				(8,532)
Net loss		$	(13,340)			$	(15,724)
Basic net loss per share:
Loss from continuing operations		$	(0.21)			$	(0.13)
Loss from discontinued operations, net of tax			(0.09)				(0.15)
Basic net loss per share		$	(0.29)			$	(0.28)
Diluted net loss per share:
Loss from continuing operations		$	(0.21)			$	(0.13)
Loss from discontinued operations, net of tax			(0.09)				(0.15)
Diluted net loss per share		$	(0.29)			$	(0.28)
Weighted average shares used in computing net loss per share:
Basic			45,626				56,709
Diluted			45,626				56,709

 

AZENTA, INC. CONSOLIDATED BALANCE SHEETS (unaudited) (In thousands, except share and per share data)
		December 31,				September 30,
		2024				2024
Assets
Current assets
Cash and cash equivalents		$	377,494			$	280,030
Short-term marketable securities			85,951				151,162
Accounts receivable, net of allowance for expected credit losses ($5,182 and $5,349, respectively)			155,038				156,273
Inventories			81,006				78,923
Short-term restricted cash			2,080				2,069
Prepaid expenses and other current assets			72,140				75,456
Current assets held for sale			72,573				88,894
Total current assets			846,282				832,807
Property, plant and equipment, net			149,666				155,622
Long-term marketable securities			29,533				49,454
Long-term deferred tax assets			627				837
Operating lease right-of-use assets			60,460				60,406
Goodwill			672,906				691,409
Intangible assets, net			115,822				125,042
Other assets			7,310				10,670
Noncurrent assets held for sale			158,604				173,794
Total assets		$	2,041,210			$	2,100,041
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	31,740			$	33,344
Deferred revenue			41,018				30,493
Accrued warranty and retrofit costs			4,973				5,213
Accrued compensation and benefits			28,405				27,785
Accrued customer deposits			26,833				22,324
Accrued income taxes payable			6,931				9,266
Accrued expenses and other current liabilities			38,965				46,364
Current liabilities held for sale			23,602				30,050
Total current liabilities			202,467				204,839
Long-term tax reserves			408				398
Long-term deferred tax liabilities			18,668				18,084
Long-term operating lease liabilities			54,341				56,683
Other long-term liabilities			8,229				8,874
Noncurrent liabilities held for sale			38,131				42,196
Total liabilities			322,244				331,074
Stockholders' equity
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding			—				—
Common stock, $0.01 par value - 125,000,000 shares authorized, 59,153,757 shares issued and 45,691,888 shares outstanding at December 31, 2024; 59,031,953 shares issued and 45,570,084 shares outstanding at September 30, 2024			592				590
Additional paid-in capital			511,068				505,958
Accumulated other comprehensive loss			(55,237)				(13,464)
Treasury stock, at cost - 13,461,869 shares at December 31, 2024 and September 30, 2024			(200,956)				(200,956)
Retained earnings			1,463,499				1,476,839
Total stockholders' equity			1,718,966				1,768,967
Total liabilities and stockholders' equity		$	2,041,210			$	2,100,041

 

AZENTA, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (In thousands)
		Three Months Ended December 31,
		2024				2023
Cash flows from operating activities
Net loss		$	(13,340)			$	(15,724)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			18,100				21,866
Provision for bad debts and inventory reserve			1,470				(121)
Stock-based compensation			5,112				3,202
Amortization and accretion on marketable securities			(541)				(704)
Deferred income taxes			457				(7,317)
Loss on disposals of property, plant and equipment			(8)				266
Changes in operating assets and liabilities:
Accounts receivable			4,850				2,830
Inventories			(4,646)				4,929
Accounts payable			(2,602)				2,442
Deferred revenue			10,462				(321)
Accrued warranty and retrofit costs			174				(554)
Accrued compensation and tax withholdings			650				(979)
Accrued restructuring costs			(566)				(90)
Other assets and liabilities			11,056				4,031
Net cash provided by operating activities			30,628				13,756
Cash flows from investing activities
Purchases of property, plant and equipment			(8,580)				(11,291)
Purchases of marketable securities			(40,754)				—
Sales and maturities of marketable securities			125,590				110,316
Net cash provided by investing activities			76,256				99,025
Cash flows from financing activities
Payments of finance leases			(215)				(198)
Withholding tax payments on net share settlements on equity awards			—				(2)
Share repurchases			—				(112,953)
Excise tax payment for settled share repurchases			(4,911)				—
Net cash used in financing activities			(5,126)				(113,153)
Effects of exchange rate changes on cash, cash equivalents and restricted cash			(8,311)				24,548
Net increase in cash, cash equivalents and restricted cash			93,447				24,176
Cash, cash equivalents and restricted cash, beginning of period			320,990				684,045
Cash, cash equivalents and restricted cash, end of period		$	414,437			$	708,221
Supplemental disclosures:
Cash (refund) paid for income taxes, net			(6,148)				2,599
Purchases of property, plant and equipment included in accounts payable and accrued expenses			3,249				2,164
Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheets
		December 31,				September 30,
		2024				2024
Cash and cash equivalents of continuing operations		$	377,494			$	280,030
Cash included in current assets held for sale			26,544				30,899
Short-term restricted cash			2,080				2,069
Long-term restricted cash included in other assets			8,319				7,992
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows		$	414,437			$	320,990

Notes on Non-GAAP Financial Measures - Continuing Operations
Non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and should not be relied upon to the exclusion of GAAP financial measures. Management adjusts the GAAP results for the impact of amortization of intangible assets, restructuring charges, purchase price accounting adjustments and charges related to M&A, non-recurring costs related to the Company's business transformation initiatives and share repurchases to provide investors better perspective on the results of operations which the Company believes is more comparable to the similar analysis provided by its peers. Management also excludes special charges and gains, such as impairment losses, gains and losses from the sale of assets, certain tax benefits and charges, as well as other gains and charges that are not representative of the normal operations of the business. Management strongly encourages investors to review our financial statements and publicly filed reports in their entirety and not rely on any single measure.

		Quarter Ended
		December 31, 2024								September 30, 2024								December 31, 2023
						per diluted								per diluted								per diluted
Amounts in thousands, except per share data		$				share				$				share				$				share
Net loss from continuing operations		$	(9,421)			$	(0.21)			$	(88)			$	(0.00)			$	(7,192)			$	(0.13)
Adjustments:
Amortization of completed technology			1,500				0.03				2,096				0.04				1,856				0.03
Amortization of other intangible assets			4,573				0.10				4,841				0.09				5,371				0.09
Transformation costs(1)			3,046				0.07				4,572				0.09				41				0.00
Restructuring and restructuring related charges			431				0.01				851				0.02				786				0.01
Merger and acquisition costs and costs related to share repurchase(2)			1,570				0.03				53				0.00				4,321				0.08
Tax adjustments(3)			408				0.01				259				0.00				1,693				0.03
Tax effect of adjustments			1,530				0.03				(2,036)				(0.04)				(2,326)				(0.04)
Non-GAAP adjusted net income from continuing operations		$	3,637			$	0.08			$	10,548			$	0.20			$	4,550			$	0.08
Stock based compensation, pre-tax			4,872				0.11				1,649				0.03				3,001				0.05
Tax rate			15	%			—				14	%			—				12	%			—
Stock-based compensation, net of tax			4,141				0.09				1,418				0.03				2,641				0.06
Non-GAAP adjusted net income excluding stock-based compensation - continuing operations		$	7,778			$	0.17			$	11,966			$	0.23			$	7,191			$	0.14
Shares used in computing non-GAAP diluted net income per share			—				45,626				—				53,175				—				56,709

(1)	Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.
(2)	Includes expenses related to governance-related matters.
(3)	Tax adjustments during all periods include adjustments to tax benefits related to stock compensation. These adjustments are recognized in the period of vesting for US GAAP but included in the annual effective tax rate for Non-GAAP reporting.

 

		Quarter Ended
		December 31,				September 30,				December 31,
Dollars in thousands		2024				2024				2023
GAAP net loss		$	(13,340)			$	(4,985)			$	(15,724)
Less: Loss from discontinued operations			(3,919)				(4,897)				(8,532)
GAAP net loss from continuing operations			(9,421)				(88)				(7,192)
Adjustments:
Interest income, net			(4,298)				(5,532)				(9,955)
Income tax expense			3,569				2,017				1,420
Depreciation			7,474				7,275				7,420
Amortization of completed technology			1,500				2,096				1,856
Amortization of other intangible assets			4,573				4,841				5,371
Earnings before interest, taxes, depreciation and amortization - Continuing operations		$	3,397			$	10,609			$	(1,080)
		Quarter Ended
		December 31,				September 30,				December 31,
Dollars in thousands		2024				2024				2023
Earnings before interest, taxes, depreciation and amortization - Continuing operations		$	3,397			$	10,609			$	(1,080)
Adjustments:
Stock-based compensation			4,872				1,649				3,001
Restructuring charges			431				851				786
Merger and acquisition costs and costs related to share repurchase(1)			1,570				53				4,321
Transformation costs(2)			3,046				4,572				41
Adjusted earnings before interest, taxes, depreciation and amortization - Continuing operations		$	13,316			$	17,734			$	7,069

(1)	Includes expenses related to governance-related matters.
(2)	Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

 

		Quarter Ended
Dollars in thousands		December 31, 2024								September 30, 2024								December 31, 2023
GAAP gross profit		$	68,671				46.6	%		$	69,587				46.1	%		$	61,743				43.6	%
Adjustments:
Amortization of completed technology			1,500				1.0	%			2,096				1.4	%			1,856				1.3	%
Transformation costs(1)			52				0.0	%			145				0.1	%			—				—	%
Other adjustment			6				0.0	%			—				—	%			—				—	%
Non-GAAP adjusted gross profit		$	70,229				47.6	%		$	71,828				47.6	%		$	63,599				44.9	%

(1)

Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

 

		Sample Management Solutions																								Multiomics
		Quarter Ended																								Quarter Ended
		December 31,								September 30,								December 31,								December 31,								September 30,								December 31,
Dollars in thousands		2024								2024								2023								2024								2024								2023
GAAP gross profit		$	38,114				46.9	%		$	39,543				46.6	%		$	33,272				42.1	%		$	30,557				46.1	%		$	30,044				45.5	%		$	28,471				45.4	%
Adjustments:
Amortization of completed technology			639				0.8	%			1,056				1.2	%			816				1.0	%			861				1.3	%			1,040				1.6	%			1,039				1.7	%
Transformation costs(1)			52				0.1	%			145				0.2	%			—				—	%			—				—	%			—				—	%			—				—	%
Other adjustment			5				0.0	%			—				—	%			—				—	%			1				—	%			—				—	%			—				—	%
Non-GAAP adjusted gross profit		$	38,810				47.8	%		$	40,744				48.0	%		$	34,088				43.1	%		$	31,419				47.4	%		$	31,084				47.1	%		$	29,510				47.1	%

 

		Segment Total
		Quarter Ended
		December 31,								September 30,								December 31,
Dollars in thousands		2024								2024								2023
GAAP gross profit		$	68,671				46.6	%		$	69,587				46.1	%		$	61,743				43.6	%
Adjustments:
Amortization of completed technology			1,500				1.0	%			2,096				1.4	%			1,855				1.3	%
Transformation costs(1)			52				0.0	%			145				0.1	%			—				—	%
Other adjustment			6				0.0	%			—				—	%			—				—	%
Non-GAAP adjusted gross profit		$	70,229				47.6	%		$	71,828				47.6	%		$	63,598				44.9	%

(1)

Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.

 

		Sample Management Solutions												Multiomics
		Quarter Ended												Quarter Ended
		December 31,				September 30,				December 31,				December 31,				September 30,				December 31,
Dollars in thousands		2024				2024				2023				2024				2024				2023
GAAP operating income (loss)		$	1,562			$	8,865			$	(1,483)			$	(3,387)			$	(1,714)			$	(4,302)
Adjustments:
Amortization of completed technology			639				1,056				816				861				1,040				1,039
Amortization of other intangible assets			13				18				51				—				—				—
Transformation costs(1)			103				145				—				—				—				—
Restructuring charges			—				—				—				23				—				—
Rounding adjustment			—				—				—				—				1				—
Non-GAAP adjusted operating income (loss)		$	2,317			$	10,084			$	(616)			$	(2,503)			$	(673)			$	(3,263)

 

		Total Segments												Corporate												Total
		Quarter Ended												Quarter Ended												Quarter Ended
		December 31,				September 30,				December 31,				December 31,				September 30,				December 31,				December 31,				September 30,				December 31,
Dollars in thousands		2024				2024				2023				2024				2024				2023				2024				2024				2023
GAAP operating income (loss)		$	(1,825)			$	7,151			$	(5,785)			$	(9,528)			$	(10,148)			$	(10,460)			$	(11,353)			$	(2,997)			$	(16,245)
Adjustments:
Amortization of completed technology			1,500				2,096				1,855				—				—				1				1,500				2,096				1,856
Amortization of other intangible assets			13				18				51				4,560				4,823				5,320				4,573				4,841				5,371
Transformation costs(1)			103				145				—				2,943				4,427				41				3,046				4,572				41
Restructuring charges			23				—				—				408				851				786				431				851				786
Merger and acquisition costs and costs related to share repurchase(2)			—				—				—				1,570				53				4,321				1,570				53				4,321
Other adjustment			—				1				—				9				1				(1)				9				2				(1)
Non-GAAP adjusted operating income (loss)		$	(186)			$	9,411			$	(3,879)			$	(38)			$	7			$	8			$	(224)			$	9,418			$	(3,871)

(1)	Transformation costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to the Company focused on cost reduction and productivity improvement that do not meet the definition of restructuring charges. These costs are directed at simplifying, standardizing, streamlining, and optimizing the Company's operations, processes and systems to permanently alter the Company's operations for the long term. For a project to be considered transformational, successful completion of the project must be expected to bring long-term material benefits to the organization and involve significant changes to process and/or underlying technology. Transformation costs in the period result from actions taken as part of the Company's 2024 transformation plan and primarily relate to one time asset write downs associated with changes in technology, one time inventory write downs relating to restructuring actions taken in the period, and third-party consulting costs associated with process and systems re-design.
(2)	Includes expenses related to governance-related matters.

 

		Sample Management Solutions												Multiomics												Azenta Total
		Quarter Ended												Quarter Ended												Quarter Ended
		December 31,				December 31,								December 31,				December 31,								December 31,				December 31,
Dollars in millions		2024				2023				Change				2024				2023				Change				2024				2023				Change
Revenue		$	81			$	79				3	%		$	66			$	63				6	%		$	148			$	142				4	%
Currency exchange rates			0				—				(1)	%			0				—				(0)	%			0				—				(0)	%
Organic revenue		$	81			$	79				2	%		$	66			$	63				6	%		$	147			$	142				4	%

 

 

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SOURCE Azenta

FAQ

What was Azenta's (AZTA) revenue growth in Q1 2025?

Azenta reported revenue of $148 million in Q1 2025, representing a 4% increase year-over-year.

How did Azenta's (AZTA) Multiomics segment perform in Q1 2025?

The Multiomics segment generated revenue of $66 million, showing 6% growth year-over-year, driven by Next Generation Sequencing and Gene Synthesis.

What is Azenta's (AZTA) financial guidance for fiscal year 2025?

Azenta expects organic revenue growth of 3-5% and adjusted EBITDA margin expansion of approximately 300 basis points for fiscal year 2025.

What was Azenta's (AZTA) free cash flow in Q1 2025?

Azenta generated free cash flow of $22 million, calculated as operating cash flow of $30 million less capital expenditures of $8 million.

How much cash does Azenta (AZTA) have as of December 31, 2024?

Azenta reported a total balance of $530 million in cash, cash equivalents, restricted cash and marketable securities, including $27 million held in discontinued operations.