QuidelOrtho Corporation

Welcome to the Quidel Ortho Third Quarter 2024 Financial Results Conference Call and Webcast. At this time, all participant lines are in a listen-only mode. For those of you participating on the conference call, there will be an opportunity for your questions at the end of today's prepared remarks. Please note this conference call is being recorded. An audio replay of the conference call will be available on the company's website shortly after this call. I would now like to turn the call over to Juliet Cunningham, Vice President of Investor Relations.

Thank you. Good afternoon, everyone. Thanks for joining the Quidel Ortho Third Quarter 2024 Financial Results Conference Call. With me today are Brian Blaser, President and Chief Executive Officer, and Joe Buskey, Chief Financial Officer. This conference call is being simultaneously webcast on the Investor Relations page of our website. To aid in the discussion, we posted a supplemental presentation on the investor relations page that will be referenced throughout this call. This conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not strictly historical, including the company's expectations, plans, future performance, and prospects are forward-looking statements that are subject to certain risks, uncertainty, assumptions, and other factors. Actual results may vary materially from those expressed or implied in these forward-looking statements. Information about potential factors that could affect our actual results is available in our annual report on Form 10-K for the 2023 fiscal year and subsequent reports filed with the SEC, including the risk factors section. Forward-looking statements are made as of today, November 7, 2024, and we assume no obligation to update any forward-looking statement except as required by law. In addition, today's call includes discussion of certain non-GAAP financial measures. Tables reconciling these non-GAAP measures to their most directly comparable GAAP measures are available in our earnings release and the supplemental presentation. which are on the investor relations page of our website at quietandortho.com. Lastly, unless stated otherwise, all year-over-year revenue growth rates given on today's call are given on a comparable constant currency basis. And now I'd like to turn the call over to our CEO, Brian Blazer.

Thanks, Juliette. Good afternoon, everyone. I'm pleased to be here with you today and share our third quarter 2024 results. We reported third quarter revenue of $727 million, adjusted EBITDA of $171 million, and adjusted diluted EPS of 85 cents. Our results demonstrate solid progress in executing our business improvement initiatives, including our previously communicated $100 million in annualized cost savings that we expect to realize through the first half of 2025. After my remarks, Joe will cover our detailed quarterly financials, as well as provide our full year 2024 financial guidance, which we reinstated today. I would also like to highlight the key focus areas where we see the greatest opportunity for improvement in profitability and growth. During my first six months here at Quidel Ortho, we undertook an extensive review of every part of the business. I continue to be excited by the opportunity to serve our customers across the entire healthcare continuum and meet patients' needs in every care setting and at every step of the journey from prevention to diagnosis, treatment, and monitoring. To meet those needs and to do so profitably, we need the right people, the right products, rigorous discipline, and a strong cultural mindset that places customers and quality first. With that objective in mind, we strengthened our leadership team with the recent addition of two highly experienced industry leaders, Jonathan Segrist as Chief Technology Officer and Lee Bowman as Chief Human Resources Officer. Jonathan has a proven 15-year track record in molecular diagnostics, microfluidic platforms, and biomedical engineering. He most recently was the CTO and Head of Assay Research and Development at Cepheid. Lee brings over 25 years of experience leading teams through transformative initiatives in workforce engagement and leadership development at Edwards Life Sciences, Levi Strauss & Company, and Target. Lee's expertise in developing talent in a high-performing workplace is critical as we create a winning, continuous improvement culture and drive continued growth here at Clydell Ortho. In addition, we are aligning our leadership structure to be a flatter, more agile organization to increase our customer focus, reduce complexity, and improve our efficiency and cost structure. As part of this effort, Mike Iskra, Chief Commercial Officer, and Rob Bejarski, Chief Operating Officer, will be leaving the company. We're grateful to Mike and Rob for their contributions in leading the Quidel Ortho Commercial and Operations teams and fostering a culture of collaboration. Going forward, our global regions will be fully aligned with our business units, and both the business unit and global regional leaders will report directly to me. The alignment of our leadership team is designed to improve the way we run the business and enable us to achieve consistently improved performance over time. We believe the changes we are making are designed to better leverage the scale of our global commercial team, accelerate cross-selling opportunities, and continue to build a customer-focused organization. As part of delivering on our customer commitments, we remain steadfast in achieving our product timelines and improving our business efficiency. Under Jonathan's leadership, we're focused on executing our key R&D priorities, including increasing our R&D productivity, expanding our menu, and advancing critical platforms. While Savannah is only one of our initiatives, we believe Savannah and Molecular in general is an important driver of future profitable revenue growth. We plan to enter clinical trials with our respiratory panel as the respiratory season develops and to be in market in the later part of 2025. To improve our cost structure, we are also in the early phases of implementing cost and process improvement initiatives in procurement, supply chain, manufacturing quality, and IT. We expect these initiatives to enable us to operate more effectively and deliver incremental margin contributions in 2025 and 2026. We plan to provide greater detail in the coming quarters as we move ahead. Lastly, I think it bears repeating that we are focused on challenging every aspect of our business to do more for our customers and improve profitable growth. I'm proud to be the leader of Quidel Ortho. I'm excited about the improvements that we're making. And I look forward to updating you on our progress next quarter. With that, I'll hand it over to Joe.