Hologic, Inc.

is being recorded. All lines have been placed on mute. I would now like to introduce Mike Watts, Corporate Vice President, Investor Relations, to begin the call. Please go ahead, sir.

Thank you, Lisa. Good afternoon, and thank you for joining Hologic's first quarter fiscal 2025 earnings call. With me today are Steve McMillan, the company's Chairman, President, and Chief Executive Officer, Essex Mitchell, our Chief Operating Officer, and Carlene Oberton, our Chief Financial Officer. Our first quarter press release is available now on the investors section of our website. We will also post our prepared remarks to our website shortly after we deliver them. And a replay of this call will be available on our website for the next 30 days. Before we begin, we'd like to inform you that certain statements we make today will be forward looking. These statements involve known and unknown risks and uncertainties that may cause actual results to differ materially from those expressed or implied. Such factors include those referenced in the safe harbor statement that's included in our earnings release and SEC filings. Also during this call, we will discuss certain non-GAAP financial measures. A reconciliation to GAAP can be found in our earnings release. Two of these non-GAAP measures are organic revenue, which we define as revenue excluding divested businesses and revenue from acquired businesses owned by Hologic for less than one year. Also organic revenue excluding COVID-19 which further excludes COVID-19 assay revenue, other revenue related to COVID-19, and sales from discontinued products and diagnostics. Finally, any percentage changes we discuss will be on a year-over-year basis, and revenue growth rates will be in constant currency unless otherwise noted. Now I'd like to turn the call over to Steve McMillan, Hologic's CEO.

Good afternoon, everyone. I'd like to begin today by welcoming Mike back to the Hologic team. We are all excited to have him back. And now we are pleased to discuss our financial results for the first quarter of fiscal 2025. As we pre-announced last month, total revenue for the quarter was $1.022 billion, an increase of 1% on a constant currency basis. This was in line with our guidance as the stronger dollar subtracted about $9 million from reported revenue since we guided in early November. Non-GAAP earnings per share were $1.03 at the high end of our guidance range and an increase of 5%. This reflected strong improvement in non-GAAP operating margins of 90 basis points, as well as share buybacks and the benefits of our foreign exchange hedging program. In my remarks today, I'd like to revisit some of the themes from our presentation at the J.P. Morgan Conference last month. In that discussion, we reflected back on Hologic's strong financial performance since 2014. Our main point, however, was not about the past. It was that we believe we can continue to grow revenue and earnings at similar rates in the future. Why do we believe that? Because of our market-leading products and the strong organizational capabilities we have steadily built around them. To be more specific, from 2014 through 2024, Hologic grew revenue from about $2.5 billion to more than $4 billion. This represented a compound annual growth rate of 4.8%, including all our acquisitions and divestitures along the way. Over this same period, non-GAAP earnings per share increased from $1.46 to $4.08, representing a CAGR of 10.8%, more than double the rate of sales growth. At JPMorgan, our primary message was that we believe we can continue to grow earnings at a double-digit rate into the future. While some years, like this one, may be below this level, we are confident in our future and still believe this is an appropriate long-term goal. The financial algorithm that will get us there includes a continuation of mid-single digit growth on the top line, modest expansion of our already best-in-class operating margin, and a healthy mix of acquisitions and share buybacks to increase both our revenue and EPS growth rates. The foundation for this expected performance, of course, lies in our market-leading brands. which generate a tremendous amount of reliable cash flow. From Panther, Aptima, and ThinPrep in diagnostics, to Genius in breast health, to MyoSure and NovoSure in surgical, we enjoy leading market shares that have proven durable over time. Much of our growth comes from building around these brands and using the cash they generate to drive future innovations. For example, we now have more than 20 assays on our Panther and Panther Fusion platforms. We have built a reliable service business in Breast Health that is now larger than our capital sales, which can be more volatile. And we are adding products to our surgical division, both organically and inorganically, to leverage our excellent sales channel. Best-in-class products don't just happen. Instead, they are the result of several organizational capabilities that we have very deliberately built and nurtured over time. And these capabilities give us confidence in our ability to hit our financial targets in the future. For example, our 7,000 employees around the world are motivated by a passion for women's health. They have demonstrated an ability to create and expand markets for the benefit of patients and customers and to redefine clinical standards of care. Examples include transitioning traditional pap testing to liquid pap and now adding digital capabilities to catch more cancers and improve workflow. And more recently, we have partnered with our customers to literally create a market for high-throughput vaginitis testing, which has fueled our second largest molecular diagnostics test on the Panther system. Many of these successes originated in the United States, but we have now built the capabilities to grow internationally on a consistent basis. We continue to go direct in more geographies and businesses, most recently in our surgical divisions. while strengthening our market access capabilities around the globe. Similarly, we have learned from past mistakes and improved our business development capabilities. We have strengthened our talent and processes for conducting due diligence on new targets, cultivating relationships with them, and integrating acquired assets more effectively. This internal maturation has been reflected in the solid performance of some of our more recent acquisitions. For example, biotheranostics, endomagnetics, and gynasonics should all boost our revenue growth rate. These organizational capabilities give us confidence in the future, especially our ability to be a consistent double-digit earnings compounder and deliver value to shareholders reliably over time. Now, I will turn the call over to Essex.