Azenta reported a solid Q3 2024, delivering organic revenue growth of 5% year over year and 9% sequentially to approximately $173 million, with all three segments contributing. The company continued to progress on its Ascend 2026 transformation, translating top-line gains into meaningful profitability: adjusted EBITDA margin reached 10.3% (260 bps YoY expansion and 440 bps vs. the prior quarter), and the company Turned profitable on a GAAP basis for the quarter with operating income of $4.6 million. Management highlighted accelerating automation adoption in sample storage and repositories, a stronger push into large automated and cryogenic stores, and continued momentum in Multiomics and NGS, including more than 700 new to NGS customers and record quote activity. Free cash flow was modestly negative in the quarter, while cash and marketable securities remained ample, enabling a substantial share repurchase program. The company also provided updated full-year guidance, signaling a cautious but constructive stance given a soft market backdrop and ongoing cost-optimization benefits.
Key takeaways for investors: (1) Margin expansion is materializing from Ascend 2026 actions, (2) NGS and Multiomics show resilience with outsized volume growth and new customer acquisition, (3) SMS and B Medical are positioned for selective growth and strategic realignment, (4) the balance sheet remains strong with ample liquidity, although near-term revenue is expected to be modestly pressured due to OEM timing and B Medical mix.”