Reveni at KeyBanc Forum: Strategic Transformation Insights

On Wednesday, 19 March 2025, Reveni Inc (NYSE: RVTY) presented a strategic overview at the KeyBanc Annual Health Care Forum 2025. The discussion highlighted the company’s significant transformation, with 70% of its revenue now stemming from new sources over the past seven years. While the company emphasized its growth and innovation, it also acknowledged challenges in market dynamics and funding uncertainties.

Key Takeaways

• Reveni has transformed its revenue streams, with 70% being new in the last seven years.
• The company’s revenue is evenly split between life sciences and diagnostics, focusing heavily on recurring revenue.
• Reveni aims for a long-term growth target of 6-8%, driven by innovation and market expansion.
• The software business, Signals, is expected to grow in the low double digits this year.
• China represents a significant market, contributing 16% of Reveni’s revenue.

Business Profile and Transformation

• Reveni’s revenue is approximately $3 billion, with a 50-50 split between life sciences and diagnostics.
• 80% of revenue comes from recurring sources like consumables and software, while instrumentation accounts for 20%.
• The company has shifted away from heavy reliance on instrumentation revenue.

Software Business (Signals)

• Signals generated around $200 million last year, representing 8% of total revenue.
• The software has seen double-digit growth and is expected to continue growing by around 10% this year.
• Reveni has penetrated 46-47 of the top 50 pharma companies, focusing on expanding within existing accounts.
• The software mix includes one-third SaaS-based and two-thirds legacy on-premise licenses.

Antibody Business (BioLegend)

• BioLegend, acquired in 2021, forms over half of Reveni’s $725 million reagent portfolio.
• Despite market pressures, BioLegend has maintained strong performance through product innovation and rapid delivery.
• The company launches 100-150 new products each month, maintaining high-quality standards.

China Market

• China accounts for 16% of Reveni’s revenue, with growth in both life sciences and diagnostics.
• The life sciences sector in China saw high single-digit growth in Q4, driven by demand for innovative consumables.
• The diagnostics business in China grew in the mid-single digits last year.

Diagnostics Business

• Reveni’s diagnostics segment generates approximately $500 million in annual revenue.
• The company has outperformed declining birth rates, with growth driven by geographic and product expansion.
• A significant market opportunity exists, as 100 million newborns globally do not receive screening at birth.

Long-Term Growth and Financial Outlook

• Reveni targets a long-term revenue growth of 6-8%, exceeding market growth by 200 basis points.
• The diagnostics segment is expected to grow, with immunodiagnostics projected at 9-11%.
• In 2024, Reveni achieved 1% organic growth and expanded operating margins by 30 basis points.
• The 2025 forecast anticipates growth of 3-5%.

M&A Activity

• Reveni completed 11 acquisitions in under two years, including BioLegend.
• No acquisitions have occurred in the past three and a half years, with a recent divestiture in May 2023.
• The focus has shifted towards operational synergies.

Conclusion

For a more detailed understanding, readers are encouraged to refer to the full transcript below.

Full transcript - KeyBanc Annual Health Care Forum 2025:

Paul Knight, Life Science Analyst, KeyBanc: Thanks, everybody. This is Paul Knight, the life science analyst at KeyBanc. With me today is Steve Willoughby, one of the top investor relation people in the industry. So Steve, welcome. And, you know, you used to be a venerable sell side analyst.

How’s the role in corporate IR?

Steve Willoughby, Investor Relations, Reveni: Good morning, Paul. Thanks for having me. You know, the transition to IR, you know, has been it’s been fun. You know, Remedy, as you know, has been a very we’ve been busy over the last four years since I moved from the sell side of the corporate world. You know, I think the company is one that, you know, in my career, you know, I haven’t seen a company go through as much of a transformation, you know, as Remedy has, let alone in such a short period of time.

You know, in just four or five years, you know, really transforming what the business is and does, let alone, you know, what the business is called. And so, you know, it’s been fun, it’s been busy, been learning a lot, but, you know, certainly missed, you know, a number of different aspects of the sell side as well.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. Yeah. It has been a dramatic transformation. You know, what’s the recap on the business profile? It’s like how much consumables, how much services now?

Steve Willoughby, Investor Relations, Reveni: Yeah. Yeah. So it’s, you know, it’s dramatically changed. And so I guess when you first step back, compared to six, seven years ago, approximately 70% of our revenue is new to the company within the last, call it, seven years. And so it’s, you know, literally what we do for a living is very different than it was, you know, less than a decade ago.

When you look at the business today, it, little under 3,000,000,000 in total revenue, fairly evenly split between life sciences and diagnostics. You know, of the, call it, 2,800,000,000.0 in revenue, approximately 80% or maybe even slightly over the 80% is reoccurring revenue, which is all of our consumables, our software business and, you know, some various related services. So, you know, today we’re, 20% or a little under instrumentation, you know, and if you look back, call it five or six years ago, that number was much, much higher.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. You know, one question we’ve had over the last couple of months has been around software. We all know that Reveni has been had been buying a lot of software assets over the last decade. Can you talk to the level of you know, how ingrained it is into the user base, you know, in your thoughts on

Steve Willoughby, Investor Relations, Reveni: that? Yeah, so our software business, which is called Signals, is approximately 200,000,000 in revenue last year, which represents about 8% of total company revenue. So it’s about 15% or so of our life science business. This our software business has been growing at a double digit CAGR over the past more than handful of years, including 13% growth last year. Our outlook for this year is it for it to grow in the low double digits call it 10% which is right in the middle of the nine to 11% we assume that our software business will grow in our most updated LRP.

In terms of how ingrained this business is, this is a business that is historically focused really within the top 50 pharma. I think we’re in either 46 or 47 of the top 50 pharma out there, But that doesn’t mean that we’re in every single lab within these customers or in every single location around the world or they don’t have every single piece of our various parts of our software business. And so, you know, we’ve been able to continue to grow, and I think there’s a long runway still in front of us in order to grow even within existing accounts. And we highlighted at our investor day last November on how our software business has, you know, in 2024, was on pace for about a 6% net retention rate. And so net retention for those of you who are not, you know, software inclined, really takes into account your your retention, your renewal rate, which for our software business is in the upper nineties, and then adds the expansion of those existing contracts at renewal by either adding more seats, adding more licenses, adding a new lab, or adding more, you know, components or modules to what we’re offering the customers.

And so think of it as, like, almost a six to seven percent in also some price. So think of it as sort of six to 7% growth, very consistent upon contracts coming up for renewal. You know, our business then is able to grow in the, you know, double digits historically because of, you know, new business wins with either some of those larger customers we we’re not penetrated into yet, or we’re also starting to move a little bit further downstream, into smaller customers. And then one of the things we highlighted at the investor day, was how we are beginning to also penetrate what we’re calling material science customers. So those customers in more industrial applied, chemicals, cosmetics, things like that, where they can really leverage some of the very same types of software we use.

The last there are last two things on our software business. Today, about a third of it is SAS, about two thirds of it is still, legacy, on premise multi year licenses. The the final thing I would say is what our software actually is. And what the software business is, the flagship product is called the signals research suite, which think of it as a workflow software for a pre clinical R and D lab. So think of it as almost a type of like ERP for a pre clinical R and D lab.

It is software that is used to set up your experiment, document your experiment, collaborate with your colleagues, report out on the results and then analyze those results. And so it’s extremely ingrained in customers workflow. So it’s very, very sticky.

Paul Knight, Life Science Analyst, KeyBanc: It’s a lab book.

Steve Willoughby, Investor Relations, Reveni: It’s a lab book. It’s literally moved from a notebook to emails and excel spreadsheets to on premise software and now progressively moving into you know SaaS based cloud software.

Paul Knight, Life Science Analyst, KeyBanc: How long has this software been in the market?

Steve Willoughby, Investor Relations, Reveni: Probably fifteen or so years, fifteen, twenty years. And to your point in your earlier question, you know, one of the areas of differentiation for our software compared to our competitors is it’s actually all organically developed, you know, where we have not actually in the, you know, and well over a decade really done any acquisitions to build the software business. It’s really been homegrown, which is a nice competitive offering where it’s all all of our offerings are, you know, completely, you know, tied in together under single logins, they work well together, they look similar, and so customers are really familiar with how they work.

Paul Knight, Life Science Analyst, KeyBanc: The antibody business, next question, it’s been growing better, recently. What’s happening? Market’s better, I’m assuming, of course, but could you talk, I mean, to the antibody business?

Steve Willoughby, Investor Relations, Reveni: Sure. So, you know, antibodies, we got into the antibody business with the 02/2021 acquisition of a privately owned company called BioLegend. Today, that antibody business represents a little over half of our $725,000,000 reagent portfolio. And so we have, I would say, a very significant presence in life specialty life science consumables outside of antibodies as well. You know, within antibodies, yes, I would say we have been performing while the market has been under pressure over the last, call it, two years because of the slowdown in pharma biotech spending.

You know, our performance has been above, you know, the most of what we can view from our peer set. You know, we have a really unique competitive offering. And I would say one is, you know, we’re very focused on having strong relationships with key opinion leaders to really be developing new products on where science is going. And so we come out with between a hundred and a 50 new products every single month on average. So you’re talking about, you know, a couple thousand new products per year.

I think the other thing that you should know that really differentiates our business is we manufacture essentially all of the products we sell. And so compared to some of our peers who might have a very large library of other products that they source from other manufacturers and really sort of act as a distributor, You know, close to 99, if not close to 100% of our revenue is from products we sell ourselves. You know, in addition to having very innovative products, very high quality and consistent products, we have better service than any other competitor in the industry. And what I mean by service is, when you order one of our products, you know, and usually you’re buying, you know, a single vial of antibody or maybe two of them, we deliver a high 90% of our orders next day. We don’t ship them next day, we deliver them next day globally.

So for example, if you’re in a lab at Harvard in Boston, you can order a product up until 03:00 in the afternoon and it’s gonna be on your lab bench by 10AM the next morning. And so we’ve built a proprietary way to distribute product that, you know, is unlike anything else in the industry that allows us to have that rapid deployment. And in addition to having very innovative products, very high quality products, better service than anyone else, you know, we also pride ourselves on being the value price player in the market. And so, you know, we are typically a little bit lower cost as well. And despite that lower cost, we still have very, very strong margins within this business as well.

Paul Knight, Life Science Analyst, KeyBanc: Is Biolegend or what was it its historical presence in flow cytometry?

Steve Willoughby, Investor Relations, Reveni: That’s where it started. And, you know, when we did the acquisition now, you know, three and a half years ago, which, you know, time flies, it’s been three and a half years since we did that acquisition. When we did that acquisition, approximately 60% of its revenue was flow cytometry related. I would say we’ve continued to see good growth in flow, but I would say we’ve been seeing even faster growth in other areas of antibodies outside of flow. And so that percentage of the business has probably shifted a bit.

Paul Knight, Life Science Analyst, KeyBanc: It’s what percent do you think now, Steve?

Steve Willoughby, Investor Relations, Reveni: I mean, it’s it’s flow is less than 60. I don’t know the exact percentage off the top of my head right now.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. Okay. And you you never had your own, flow cytometer, correct?

Steve Willoughby, Investor Relations, Reveni: That’s right. And, you know, we we don’t participate in the instrumentation side of that business. I would say we’ve continued to, you know, gain share consistently, without having an instrument. And so it really speaks to the, you know, innovative nature, the high quality nature, the competitive pricing, you know, of our consumables that we’ve been able to take share despite not having any instrument.

Paul Knight, Life Science Analyst, KeyBanc: And your your competitor in that area of flow?

Steve Willoughby, Investor Relations, Reveni: In that area, you know, it’s the two largest players would be us and Beck and Dickinson and then, you know, the other key antibody players like, you know, Techni and Avcam and Thermo Fisher, etcetera.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. Okay. And then the other half of the antibody, or I shouldn’t say this.

Steve Willoughby, Investor Relations, Reveni: Consumables?

Paul Knight, Life Science Analyst, KeyBanc: Yeah. The other half of the consumables portfolio. Can you talk to that a little bit?

Steve Willoughby, Investor Relations, Reveni: Yeah. It’s really the, you know, various portfolios of specialty consumables and reagent kits that are used in conjunction with our specialty instruments. And so maybe just touching real briefly on our instruments, roughly 400,000,000 in revenue. One of the key things with the divestiture that we completed in two years ago, in March of twenty twenty three was we divested all of our traditional analytical instrumentation. So we divested all of our liquid chromatography, gas chromatography, mass spectrometry, spectroscopy that I would say investors are typically maybe a little bit more familiar with.

Yeah. Well, our instrumentation portfolio today consists of preclinical imaging, high content screening, cell counting, and some other various sample prep, instruments. And so the other, you know, several hundred million dollars in specialty consumables is really different types of reagents that provide various different types of functionality on the instruments. So different types of dyes and fluorophores and alpha liza and HDRF reagents that are used either in high content screening or preclinical imaging.

Paul Knight, Life Science Analyst, KeyBanc: Okay. Great. You know what? We’ve already, you know, there’s always a couple of hot buttons in any given, in our market. So can you talk to China and then can we talk to, academic market?

Steve Willoughby, Investor Relations, Reveni: Sure. I mean, you know, maybe first starting on academic and government, I would say that’s probably been the hottest topic of the last month or so. You know, at a high level, academic and government represents approximately 12% of our total company revenue. Approximately 40% of that or roughly 5% of total company revenue is academic and government, revenue in The United States. So 5% is US academic, I would say.

You know, right around or even a little under 1% is directly tied to the NIH. And I would say, you know, it’s hard for us to decipher how much is indirectly tied to the NIH. So we just say, listen, you know, 5% is all of our U. S. Economic and government exposure.

Yeah. And, you know, there’s obviously been a, you know, number of changes, ups and downs and uncertainties here in the last month or so, five weeks, I would say. You know, I the other thing to understand about our academic and government exposure is, you know, a little over 80%, maybe call it 85% of that revenue is consumables. And so, you know, we have, I would say, even less exposure to instrumentation within our academic and government revenue overall.

Paul Knight, Life Science Analyst, KeyBanc: Okay.

Steve Willoughby, Investor Relations, Reveni: You know, on on China

Paul Knight, Life Science Analyst, KeyBanc: Yep.

Steve Willoughby, Investor Relations, Reveni: You know, China, I would say, you know, 16% of revenue, 7% is life sciences, nine percent is diagnostics. On the 7% that’s life sciences, you know, we we had pretty good growth and performance in the fourth quarter. You know, our China Life Science business in the fourth quarter of last year, grew in the high single digits. For the entirety of last year, our consumables in China, which represent the majority of our revenue, our life science revenue in China, grew in the mid single digits. And I think that’s something that maybe surprises folks is that, listen, you know, we had mid single digit growth for life science consumables in China last year.

And I think maybe the perception is is that, China was a very difficult market for the last year or two. And I would say it was for instrumentation, particularly in the second and third quarter. But when you’re selling innovative consumables that allow customers to do innovative science, there is demand for that and allowed our reagents to grow mid single digits last year. You know, on the diagnostic side, you know, it’s 9% of revenue is diagnostics in China. The vast majority of that is our immunodiagnostics business.

You know, our immunodiagnostics business in China grew mid single digits last year. And so I know that there’s a lot of discussion and concern over various different pricing programs going on in China, whether it’s VBP, other pricing pressure type programs that are happening to some of our other publicly traded peers. And right now, those really are not impacting us. And so we were able to continue to grow mid single digits last year. And I think it really speaks to both the specialty nature of the types of diagnostics we do.

You know, we really are focused in sort of esoteric autoimmune conditions, esoteric infectious disease conditions that, you know, are not as big of markets. And so they’re not as big on the radar screen. There’s not as high a volume. And so they haven’t come under the, you know, more significant or drastic pricing pressure programs that others may have been seeing. I would also say that while we do have some local market competition in China, it’s not as significant as compared to some of the more routine areas of diagnostics that maybe don’t require the same level of specificity or sensitivity that’s demanded when you’re looking essentially for a needle in the haystack in some of these esoteric conditions that, you know, we provide diagnostics for.

Paul Knight, Life Science Analyst, KeyBanc: Yep. You know, I think one other company yesterday was citing, you know, the the the it’s a high level of innovation in the biologic, the biotech market in China. I assume that’s what’s helping drive your growth. There’s true innovation coming.

Steve Willoughby, Investor Relations, Reveni: Yeah. I think that’s one thing that’s been interested in the last few years is the pharma biotech industry in China, as you know, just a handful of years ago, was really more focused on developing, I would say to a degree maybe copycat type of innovation. Yep. And, you know, that really got cleaned up, coming out of the pandemic. And a lot of that, we got consolidated away.

And, you know, what you’re seeing now is, you know, many more, Chinese companies announced partnerships with Western companies to help develop and commercialize the innovative medicines that they’re creating. And yes, I think that is probably one of the things that is helping drive particularly our consumables, because if you, again, if you think about it, you know, customers buy our consumables to do something new or different in their science. And so if we provide them the the tools and the the consumables to do quote unquote new science, there’s gonna be demand for that. And I think that is, you know, the the growing market for innovative science in China, I think is one thing that is a tailwind to our business there right now.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. And and in the consumable area, is it the usual, competitors, meaning Techni and Avcam?

Steve Willoughby, Investor Relations, Reveni: And then we have some others in, you know, some of the other areas, you know, that we compete with on the non antibody side. So there’s some other players there. Danaher’s there. Thermo’s there. There’s some privately owned companies as well who make some of the the consumables that are used in preclinical imaging high content screening.

You know, I would say on the the life science side, you know, the local market competition is not as well developed in China, in particular, you know, so far.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. The, diagnostics business for you, Steve, could you talk a little bit and start off with a newborn screening?

Steve Willoughby, Investor Relations, Reveni: Sure. Yeah. So newborn screening is the, by far, the largest piece of our reproductive health portfolio. You know, reproductive health is approximately 500,000,000 in annual revenue. So call it, you know, a third to 40% of our overall diagnostics business.

You know, our reproductive health business grew, you know, mid single digits last year, and that is despite continued pressure on global birth rates. Yeah. And so, you know, when you look back over the last, call it, handful of years, you know, births globally have been going down approximately 2% per year. During that time, our business has continued to grow in the mid single digits. And so I would say we’ve been able to basically outperform the underlying birth rate by approximately 700 basis points per year on average.

And we’re able to do that through a combination of geographic expansion, menu expansion of existing assays, and then also just new product innovation. And so today, there’s about a hundred and forty million babies who are born every year around the world. And unfortunately, a hundred million of them don’t receive any screening at birth whatsoever. And so over time and it’s you know, it takes time. But we can get countries and governments to adopt doing newborn screening for the first time.

That’s all incremental revenue for us. I would say second, and particularly, potentially an even larger growth driver, is getting more of our existing assays to be adopted by governments around the world. And so, for example, the state of California, every baby there is tested for over 60 different disorders. In many other states in The US, it’s, you know, in the low to mid forties. You know, I believe, like, in England, it’s only 16 or seven 17 different disorders per baby.

You know, in China, it’s only seven or eight different disorders per baby. And so we can get, you know, the all the babies born in China to be tested for ten disorders or 11 disorders or 12 disorders instead of seven or eight. You know, that’s an all incremental growth driver for us. And then in addition to that, you know, we’re continuing to have very strong, you know, new product innovation. So in the last couple of years here, we’ve come out with new screening assays for rare diseases such as, you know, Duchenne muscular dystrophy, spinal muscular atrophy, MPS two, and so we’re continuing to expand the overall menu as well.

Paul Knight, Life Science Analyst, KeyBanc: What is the what’s the package in newborn? Is it you supply the reagents? Is it a mass spec based technology or what is it?

Steve Willoughby, Investor Relations, Reveni: And so, you know, it’s it’s, a good distinction here. It’s a good question because newborn screening everywhere around the world, including in The United States, is government mandated, government paid for testing. So even here in The United States, this testing is not going through commercial insurance or Medicaid. It is being paid for and mandated by the states outside of any type of reimbursement program. And so we are working with, you know, in The United States, we work with state health labs.

In, you know, Canada, we work with provincial health labs. In other countries around the world, we would might work with national health labs. And we provide the instrumentation, the analyzers, the dried blood spot card that the baby, a little bit of blood from the baby is put on, we sell the diagnostic assays, we sell the software, and so we’ve really, you know, provided a complete workflow solution here for the customers. It’s a combination of different technologies. You know, there is a portion of the tests that are done via biochemistry.

There are some that are done via mass spec. And now there are some that are done genomically. And you can look at some of our recent press releases on how, you know, we are working on developing and we’ve come out with a new workflow, sequencing based workflow for newborn screening. And we just recently announced that we are working in partnership with a privately owned sequencing company called Element Biosciences. And we’re jointly working on developing a a workflow, sequencing based workflow for newborn screening, and we’re seeking FDA approval, for that workflow as well.

So that’s something that, you know, is in process as well.

Paul Knight, Life Science Analyst, KeyBanc: How many tests would that be on the element?

Steve Willoughby, Investor Relations, Reveni: How many tests? I I mean, I think the the potential, you know, is, you know, expands tremendously. You know, if if the the overall menu today is, you know, 60 or 70, you know, I think it dramatically expands that. But I think the other thing to keep in mind, though, is it’s, there is gonna be an opportunity for both traditional types of testing and genomic. There’s you know, it can be as a frontline screen and a confirmatory screen.

I think there’s also the cost aspect as well, that takes into account here. Because, you know, Paul, if there’s a 40,000,000 babies born every year around the world, you know, there’s a hundred million who still don’t get screened at all, and there’s a reason for that and that reason usually is cost. And as you know, sequencing based testing is only even multiples more expensive than traditional methods.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. Very fascinating. The diagnostics business, the long term growth target there is what?

Steve Willoughby, Investor Relations, Reveni: For the overall diagnostics business, you know, half the company is six to eight percent, and that’s really broken down with reproductive health being in the two to four percent range. And then our immunodiagnostics business, which makes up call it two thirds of the diagnostics business, being in the nine to eleven percent range. And so, you know, that immunodiagnostics, it’s the autoimmune, it’s the, you know, esoteric infectious disease, allergy. The beauty of this business, one of the beauties of this business is, and one of the key reasons why we entered into this business, you know, a number of years ago, is very strong and durable underlying market growth. The market growth for autoimmune conditions is growing in, call it, the mid to high single digits because autoimmune is still a very under diagnosed set of conditions even in developed markets.

And so there’s very strong growth, just for greater awareness and greater testing of autoimmune conditions in both developed markets, let alone underdeveloped markets.

Paul Knight, Life Science Analyst, KeyBanc: Yep. And what was an autoimmune test cost?

Steve Willoughby, Investor Relations, Reveni: An individual test, I I honestly don’t know that off the top of my head, Paul, so I don’t wanna misstate. I don’t know what the exact dollar amount of an individual test. Usually, it’s a panel of tests though. Because, you know, you’re thinking of it, if If you know if anybody’s ever had an autoimmune condition, many times they have to go through rounds and rounds and rounds of testing. You know, you might start with a general practitioner, and then you might go to a rheumatologist before you eventually go to an autoimmune specialist.

And so sometimes, unfortunately, with these patients, you know, it can take months, if not years, to figure out what is exactly wrong with them and properly diagnose them. And so you really need that highly sensitive, highly specific test that can go after that fairly, you know, uncommon disorder. And, you know, one of the reasons why we are, you know, the market leader here is because we have the broadest menu of these fairly esoteric tests, and they perform at a very high level. And so we are able to help really try and diagnose some of these conditions that are very difficult to diagnose.

Paul Knight, Life Science Analyst, KeyBanc: What’s your, backing away from the micro a little bit, what’s your your long term growth goal now?

Steve Willoughby, Investor Relations, Reveni: So, you know, LRP is six to 8% top line, which we believe is 200 basis points above underlying market growth, you know, in normal conditions. Obviously, the last two years have not been normal. I would say the two to three years before that have not been normal during the pandemic when things really exploded. And so, you know, I think it’s the four to 6% market growth is, you know, over a it’s the long range plan. It’s over the average of a number of years.

And I think given the nature of our businesses and our ability just the underlying market growth of our businesses as well as our ability to, you know, innovate, take share, etcetera, we should be growing roughly 200 basis points above market. And you look at our performance over the last two years, we’ve been doing that in a, what I would say, with some headwinds to the market. Last year, we grew organically 1%, which was better than the vast majority of our peers who were flat to down. In 2023, we grew 2%, which again was better than the vast majority of our peers who were, you know, negative, declines. Even if you look at our guidance for this year, you know, we’re calling for 3% to 5% top line growth.

We’re moving in the right direction. We’re not quite back to fully normal is our expectation starting out of the gate here. But 3% to 5% growth is again above the vast majority of our peers, particularly those larger, more diversified players. And so I think, you know, we’re showing the differentiation in or, you know, financial performance. I think, it’ll be even more impactful when we’re able to show that financial differentiation under even stronger market environment conditions.

Paul Knight, Life Science Analyst, KeyBanc: The M and A team must be very quiet because they need a rest after what they did during COVID.

Steve Willoughby, Investor Relations, Reveni: They’ve been, you know, we did 11 acquisitions in less than two years. Yeah. When I joined the company in May of twenty twenty one, we did five acquisitions my first five months on the job, including the BioLegend acquisition, which was the largest in our company’s history. Yep. And then nine months later, we announced the intention to divest our analytical and food businesses.

And then we wrapped that up. That divestiture closed in May of twenty twenty three and then two months later we rebranded the company as Reveni. And so, you know, really it’s been three and a half years since we’ve done an acquisition. It’s now been over two years since we did the divestiture. You know, I would say over the last two years, we’ve been acutely focused on driving, you know, operational synergies and, really showing that synergy potential.

And I think that was on display last year. You look at 2024, we grew organically 1%, but expanded operating margins 30 basis points despite incentive comp coming back into our P and L. So we had very good margin expansion with I would say modest top line growth and that’s really because we’re starting to capitalize on some of those operating synergies.

Paul Knight, Life Science Analyst, KeyBanc: Yes. The what would you attribute the improved market outlook to this year? Is it easier COVID cash flow comps by customers? What are what are your factors you’re behind your thinking?

Steve Willoughby, Investor Relations, Reveni: Sure. You know, when you look at it, half our business being diagnostics, I would say even that business, our diagnostics business, even last year in 2024, was sort of back to normal, you know, grew in the upper mid single digits last year within our LRP expectations. As we look for 2025, again, we’re assuming it to be within our LRP range, you know, roughly call it 6% or so.

Paul Knight, Life Science Analyst, KeyBanc: Yeah.

Steve Willoughby, Investor Relations, Reveni: You know, 8% of our business is the software business. As I mentioned at the beginning of the call, you know, that grew in the low teens last year. You know, for this year, we’re looking for it to grow low double digits, call it 10%, you know, within our LRP assumptions. So you’ve got nearly 60% of our revenue that was sort of back to normal last year, and we expect it to continue to be normal this year. It’s really the 40% of our revenue that is still in the process of getting back to normal, which is all of the, you know, life science consumables, life science instrumentation.

And we saw a in the second half of last year, we saw a stabilization in demand from our pharma biotech customers really stemming from, a stabilization in them doing large restructuring announcements and large job cuts. That was one of the things that throughout 2023 and the first half of twenty twenty four was I would say it was a it was, you know, a pressure, where, you know, large pharma companies were announcing, you know, thousand person, several thousand person layoffs. You know, that was having a unexpected negative impact on demand for both our consumables and our instrumentation. We saw that sort of stabilize as we moved into the second half of twenty twenty four, and you saw our reagents grow sequentially 2Q to 3Q and then 3Q to 4Q. And, you know, we had, you know, a good momentum entering into 2025.

Still not back to normal, but moving in the right direction. And I think one thing to highlight is while things were starting to move in the right direction, we’re not assuming any improvement in our guidance here for 2025. So if things do continue to move in the right direction, you know, we should be well positioned from a guidance perspective.

Paul Knight, Life Science Analyst, KeyBanc: You know, and I think if you can really scrub with biopharma r and d data, which is not easy due to their acquisitions, it does kind of correlate to exactly what you’re saying. Things improved in 2024 as the year rolled out. Right?

Steve Willoughby, Investor Relations, Reveni: Yeah. And I think too, you gotta think through where is that r and d money going. You know, our business is predominantly focused on upstream preclinical r and d. And I think you can make the case that over the last, you know, couple of years here, you’ve seen a greater allocation of r and d dollars being used downstream in clinical trials to get that drug into the next phase of clinical trials or try to get that drug commercialized to the detriment of preclinical r and d. And despite that tide sort of going against us over the last two years, would say as we just talked about earlier, I would say we’ve been holding our own on a relative basis from a financial performance perspective.

And eventually, I can’t tell you exactly when, but eventually that pendulum has to swing back. And pharma companies are gonna have to start reinvesting more significantly back into their preclinical pipelines. Otherwise, they won’t have a clinical pipeline eventually. And so when that pendulum swings back, you know, I don’t know about a company that’s better positioned to benefit from it.

Paul Knight, Life Science Analyst, KeyBanc: Maybe we’ll see, GLB one dividend of cash flow helping everything. Right?

Steve Willoughby, Investor Relations, Reveni: That would be great. Eventually, it has to get re you know, redeployed, I would say.

Paul Knight, Life Science Analyst, KeyBanc: Yeah. Great. Well, Steve, this has been awesome. Thanks for your time.

Steve Willoughby, Investor Relations, Reveni: Thank you, Paul.

Paul Knight, Life Science Analyst, KeyBanc: I know you’re doing some meetings today, so good luck with that.

Steve Willoughby, Investor Relations, Reveni: Thank you.

Paul Knight, Life Science Analyst, KeyBanc: Great to see you again. Okay.

Steve Willoughby, Investor Relations, Reveni: Take care. Thanks, everyone.

Paul Knight, Life Science Analyst, KeyBanc: Bye bye.

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