IDEXX Laboratories, Inc. (NASDAQ:IDXX) Q4 2022 Earnings Call Transcript

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Chris Schott: Jay, maybe a big picture one for you. I’m curious if you look back over the last year or so with the capacity constraints your practice clients are facing. Have you noticed any material changes and maybe either based on your data or conversations with your customer-facing team, in regards to how they’re using diagnostics. So changing the point of care to reference lab versus on-site or maybe running larger panels, so they don’t have to do reruns, just anything like that from a macro trend basis that you’re seeing?

Jay Mazelsky: Ryan. So, we have not — we continue to see that customers would use one modality and diagnostics tend to use more of the other modality and vice versa. It’s testing begets testing. We’ve seen a continuation of that trend. We’ve also seen wellness versus non-wellness testing hold up well. We think that that’s really a function of pet owner demand. Pet owners want to be able to get the great care, whether for health, happiness, even longevity of their pet. So, they’re filling into the practices and for wellness and preventive care visits. So, we continue to see that as an important aspect of developing the overall sector. We do see practices I think, to a greater extent than in previous times. I appreciate the role of their staff, retaining their staff, investing in education of their staff.

I think they’ve gotten smarter around the use of technology in the importance of technology. We’ve seen that in software and the move to cloud-based PIM systems, but also the applications that that integrate and extend the capability of their PIM systems. So, we think that overall, even given the overall macro impacts that we’ve described, pet owner and consumer demand has held up relatively well.

Michael Ryskin: Okay. And then maybe digging a little bit deeper into some of the clinical decision support, you spent more time, I think, than in the past talking about the cloud and kind of data analytics and using that data. So, can you dive a little bit more into DecisionIQ and how broad that goes in regards to informing point-of-care clinical decisions and how widely used that is from the practitioners that are using it to do next step diagnostics?

Jay Mazelsky: I’d be glad to. Yes, DecisionIQ is what formerly known as clinical decision support as part of our VetConnect PLUS application. Keep in mind, just let me paint the broader context here is that the general practitioner is incredibly busy. They’re responsible for this wide range of clinical and medical services and having DecisionIQ, which can support the decision-making, which can suggest the possible things that they may not have considered. And even I think to your question or point, suggest next step test, we think, is an important tool in the hands of veterinarians. We have tens of thousands of practices on a global basis, which are now using VetConnect PLUS and therefore DecisionIQ as part of their daily practice, the ability to support vector-borne disease and now endocrine is that menu will continue to be extended over time.

So, it’s becoming increasingly valuable in the hands of veterinarians and something that we think over time will just grow in value. But thank you for that question. That’s a wrap. We’re out of time. I’d like to thank everyone, and that concludes the Q&A portion of the call. I appreciate your participation this morning. So in summary, we see a significant decade-long opportunity to increase the standard of care for companion animal health care and remain committed to our consistent strategic approach to address this opportunity. Sustain high levels of performance by IDEXX teams enabled us to build on the decades-long investments in innovation, infrastructure and commercial capabilities to deliver solid growth and strong financial returns in 2022 and positions us well for 2023.

And now we’ll conclude the call. Thank you.

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