IDEXX Laboratories, Inc. (NASDAQ:IDXX) Q2 2023 Earnings Call Transcript

Michael Ryskin: Okay, all right, thanks, that’s helpful. And then this is a little bit of looking ahead to 3Q, but just focusing specifically on international and Europe in particular. I know in prior years, you guys have seen occasionally a little bit of a headwind from weather, from extreme weather events, whether it’s heat waves or hurricanes, et cetera, just because it would impact pet owner behavior or ability or willingness to visit the clinics, things like that. Just thinking about the heat wave in Europe that’s been going on for the last month or so. Is that factoring to your guidance at all? Are you anticipating a little bit of an impact on revenues? I know you called out a day’s impact on mothering. If there’s any other wiggle room built in there for just the extreme weather, thanks.

Brian McKeon: Yes, Mike, I think weather at times can have impact in the business. Our outlook that I mentioned was that for Q3 was organic revenue growth at the lower end of our full year outlook range. And that basically aligns with consistent, strong execution trends and adjustments for the day’s effects and just obviously our pricing’s evolving a bit here as well. So just compared to H1, so it’s a targeting, consistent, strong execution and we’ll address those types of impacts if they occur in the businesses and report on that if that turns out to be a factor.

Michael Ryskin: All right, thanks.

Operator: [Operator Instructions] We’ll take our next question from Ryan Daniels with William Blair. Please go ahead.

Ryan Daniels: Yes, good morning. Thanks for taking the questions. Just wanted to dive into the expansion of the U.S. customer facing organization a little bit more. I know it’s been a while and you’ve been more focused on OUS expansion. So can you talk a little bit about, strategically what drove that? Is it just new clinic openings? Are you seeing more opportunities to visit vets? Is it kind of a competitive opening? Just any color there would be helpful.

Jay Mazelsky: Sure. So we’ve grown significantly in the U.S. over the last — years. I think it’s been over three years since we did last expansion. We’re very optimistic about the long-term growth prospects of the U.S. It’s our largest market. It’s something that we really evaluate on an ongoing basis. We want to make sure that we have the right account coverage and we’ll be able to, we’re able to support, product and innovation priorities over time. So we felt that it made sense. Really just comes down to that.

Ryan Daniels: Okay, great. And then it’s been a while since you’ve talked about a new big corporate win. And I’m curious if you could talk about maybe the competitive environment more broadly, post some M&A activity in your space. Are you seeing that open up any opportunities or just normal course of business or more innovation? Thanks.

Jay Mazelsky: Yes, I mean, I think the, it’s really normal course of business. We do very well with corporates. We occasionally talk about it, but from a corporate account standpoint, I think they see, increasingly see the integrated benefits of multi-modality solution and software. They’re focused on workflow and they’re focused on productivity, given the capacity constraints and the need to really operate these models. And I think from a solution standpoint, they appreciate what we’re able to bring. We have a footprint that’s obviously very broad and deep and can work, can partner with them wherever they are. So I think it’s a very natural fit from that standpoint.

Ryan Daniels: Great, thank you.

Operator: We’ll move to our next question from John Block with Stifel. Please go ahead.