Revvity Inc (RVTY) 2023 Q4 法說會逐字稿

Hello, and welcome to today's Revvity Inc. Q4 2023 Earnings Conference Call. My name is Bailey, and I will be the moderator for today's call. (Operator Instructions) I'd now like to pass the conference over to our host today, Steve Willoughby, Senior Vice President of Investor Relations. Please go ahead.

您好，歡迎參加今天的 Revvity Inc. 2023 年第四季財報電話會議。我叫貝利，我將擔任今天電話會議的主持人。 （操作員指示）我現在想將會議交給今天的東道主，投資者關係高級副總裁 Steve Willoughby。請繼續。

Thank you, operator. Good morning, everyone, and welcome to Revvity's Fourth Quarter 2023 Earnings Conference Call. On the call with me today are Prahlad Singh, our President and Chief Executive Officer; and Max Krakowiak, our Senior Vice President and Chief Financial Officer.

謝謝你，接線生。大家早安，歡迎參加 Revvity 2023 年第四季財報電話會議。今天與我通話的是我們的總裁兼執行長普拉拉德辛格 (Prahlad Singh)；以及我們的資深副總裁兼財務長 Max Krakowiak。

Before we begin, I'd like to remind everyone of the safe harbor statements that we have outlined in our press release issued earlier this morning and also those in our SEC filings. Statements or comments made on this call may be forward-looking statements, which may include, but are not necessarily limited to financial projections or other statements of the company's plans, objectives, expectations or intentions. These matters involve certain risks and uncertainties.

在開始之前，我想提醒大家注意我們在今天早上早些時候發布的新聞稿中以及我們向 SEC 提交的文件中概述的安全港聲明。本次電話會議中所做的陳述或評論可能是前瞻性陳述，其中可能包括但不一定限於財務預測或公司計劃、目標、期望或意圖的其他陳述。這些事項涉及一定的風險和不確定性。

The company's actual results may differ significantly from those projected or suggested due to a variety of factors, which are discussed in detail in our SEC filings. Any forward-looking statements made today represent our views as of today. We disclaim any obligation to update these forward-looking statements in the future, even if our estimates change. So you should not rely on any of today's statements as representing our views as of any date after today.

由於多種因素，公司的實際結果可能與預測或建議的結果有顯著差異，這些因素在我們向 SEC 提交的文件中進行了詳細討論。今天發表的任何前瞻性聲明均代表我們今天的觀點。即使我們的估計發生變化，我們也不承擔將來更新這些前瞻性聲明的義務。因此，您不應依賴今天的任何聲明來代表我們在今天之後的任何日期的觀點。

During this call, we will be referring to certain non-GAAP financial measures. A reconciliation of the non-GAAP financial measures we plan to use during this call to the most directly comparable GAAP measures is available as an attachment to our earnings press release.

在本次電話會議中，我們將提及某些非公認會計準則財務指標。我們計劃在本次電話會議中使用的非公認會計原則財務指標與最直接可比較的公認會計原則指標的調節表可作為我們收益新聞稿的附件。

I'll now turn it over to our President and Chief Executive Officer, Prahlad Singh. Prahlad?

現在我將把它交給我們的總裁兼執行長普拉拉德辛格 (Prahlad Singh)。普拉拉德？

Thank you, Steve, and good morning, everyone. As we highlighted in our pre-announcement a few weeks ago, while industry headwinds continued throughout the end of the year, we were able to perform slightly better than we had anticipated and finished the fourth quarter with a 3% decline in non-COVID organic revenue.

謝謝你，史蒂夫，大家早安。正如我們在幾週前的預告中所強調的那樣，儘管行業逆風在整個年底持續存在，但我們的表現略好於我們的預期，在第四季度結束時，非新冠有機增長下降了 3%收入。

While Max will provide more details on the quarter in a bit, I would say that our stronger-than-anticipated results were broad-based as both our Life Sciences and Diagnostics segments performed better than expected. I would also highlight that our performance was well balanced geographically as each major region performed in line to slightly above what we had assumed. We also did a good job continuing to tightly control our expenses in light of the challenging environment that persisted through year-end, and along with some favorable onetime tax benefits, helped deliver additional EPS upside in the fourth quarter.

雖然馬克斯將在稍後提供有關本季度的更多詳細信息，但我想說的是，我們強於預期的結果是廣泛的，因為我們的生命科學和診斷部門的表現都好於預期。我還要強調的是，我們的表現在地理上非常平衡，因為每個主要地區的表現都略高於我們的假設。鑑於年底持續的充滿挑戰的環境，我們在繼續嚴格控制開支方面做得很好，再加上一些有利的一次性稅收優惠，有助於在第四季度實現每股收益的額外增長。

We also had a very strong cash flow in the quarter with nearly $200 million of free cash flow, while continuing to execute on our capital deployment initiatives. For the full year 2023, we generated 2% non-COVID organic growth. While not what we hoped for at the start of the year, I think you will see that our performance was differentiated versus the broader industry and likely will be near the high end of the peer set for the year once the dust fully settles. We expect this differentiated financial performance to continue going forward, as demonstrated in the new financial framework we recently provided for our expected performance over the coming years.

本季我們的現金流也非常強勁，自由現金流接近 2 億美元，同時繼續執行我們的資本部署計畫。 2023 年全年，我們實現了 2% 的非新冠疫情有機成長。雖然這不是我們年初所希望的，但我認為您會看到我們的業績與更廣泛的行業有所不同，一旦塵埃落定，我們的業績可能會接近今年同行設定的高端。我們預計這種差異化的財務業績將繼續向前發展，正如我們最近為未來幾年的預期業績提供的新財務框架所證明的那樣。

As part of this new long-range outlook, we now expect Revvity's organic revenue growth to be 200 basis points above the broader industry, regardless of the macro environment. In a normal year, we would expect this to result in 6% to 8% organic growth and 75 basis points of operating margin expansion annually. In the post-COVID world we all now operate in, we anticipate this level of growth will result in performance that continues to be at the high end of our industry overall.

作為新長期前景的一部分，我們現在預計 Revvity 的有機收入成長將比整個產業高 200 個基點，無論宏觀環境如何。在正常年份，我們預計這將帶來 6% 至 8% 的有機成長以及每年 75 個基點的營業利潤率擴張。在我們現在所處的後新冠時代，我們預計這種成長水準將導致我們的業績繼續處於整個產業的高端。

As we highlighted during a recent investor conference, we expect approximately 60% of our business that is comprised of immunodiagnostics, Life Sciences reagents and our Signal Software business to grow in the 9% to 11% range over the coming years, generating mid-single-digit growth on their own for the total company.

正如我們在最近的一次投資者會議上所強調的那樣，我們預計由免疫診斷、生命科學試劑和信號軟體業務組成的約 60% 的業務在未來幾年將增長 9% 至 11%，從而產生中單整個公司的數位成長。

Given the stronger profitability of these segments, as they continue to grow faster than the remainder of the business, we expect it to result in natural margin expansion as they become an increasingly larger piece of the overall company over time.

鑑於這些部門的盈利能力更強，並且它們的增長速度繼續快於其他業務，我們預計隨著時間的推移，它們將成為整個公司的一個越來越大的組成部分，從而導致利潤率的自然增長。

Revvity is extremely well positioned to capitalize on some of the most exciting areas of pharmaceutical research and development, such as cell and gene therapy, [multi Omics] and precision medicine. We're also involved in some of the most durable higher-growth areas within clinical diagnostics, such as autoimmunity, tuberculosis and other emerging infectious diseases. With what our company has become over the last several years and where we are planning on going in the future, I think you will see that Revvity will continue to stand out as a very unique company.

Revvity 處於非常有利的地位，可以利用一些最令人興奮的藥物研發領域，例如細胞和基因治療、[多組學]和精準醫學。我們也涉足臨床診斷中一些最持久的高成長領域，例如自體免疫、結核病和其他新出現的傳染病。鑑於我們公司在過去幾年中的發展以及我們未來的發展計劃，我想您會看到 Revvity 將繼續作為一家非常獨特的公司脫穎而出。

We have a differentiated approach with our customers, a competitive and novel product portfolio with continuous innovation and a unique position within the attractive life sciences and diagnostic categories in which we compete. A good example of this in the fourth quarter was the launch of our EONIS-Q system in our newborn screening business. The EONIS-Q system is a first-of-its-kind workflow, which streamlines molecular testing for both spinal muscular atrophy and SCID in newborns. It is a new and complete CIVD solution, which consists of a new PCR equipment with dedicated software and a specialized diagnostics kit.

我們對客戶採取差異化的方法，提供具有競爭力的新穎產品組合，不斷創新，並在我們競爭的有吸引力的生命科學和診斷類別中佔據獨特的地位。第四季的一個很好的例子是我們在新生兒篩檢業務中推出的 EONIS-Q 系統。 EONIS-Q 系統是同類首創的工作流程，可簡化新生兒脊髓性肌肉萎縮症和 SCID 的分子檢測。它是一個全新且完整的 CIVD 解決方案，由具有專用軟體的新型 PCR 設備和專門的診斷套件組成。

With no more steps being needed in the new workflow, it results in a significantly faster turnaround time and less hands-on involvement from sample to answer than existing methods. This allows for lower operating costs and greater sustainability as fewer consumables and plastic wear are required. The introduction of this innovative solution is also perfectly timed from a commercial perspective.

由於新工作流程中不需要更多步驟，因此與現有方法相比，週轉時間明顯縮短，從樣本到答案的實際操作也更少。由於需要更少的消耗品和塑膠磨損，因此可以降低營運成本並提高永續性。從商業角度來看，這項創新解決方案的推出也恰逢其時。

As the European Alliance for Newborn Screening in Spinal Muscular Atrophy mandates that, by 2025, all newborns in Europe should be screened for SMA going forward. Our new EONIS-Q system is just one example of how we are continuing to bring cutting-edge and innovative solutions to market from across the company, benefiting both our customers and, ultimately, the patients they serve.

歐洲新生兒脊髓性肌肉萎縮症篩檢聯盟規定，到 2025 年，歐洲所有新生兒都應接受 SMA 篩檢。我們的新 EONIS-Q 系統只是我們如何繼續將整個公司的尖端創新解決方案推向市場的一個例子，使我們的客戶以及最終他們所服務的患者受益。

We have also been making good progress on our operational initiatives. A good example of this is the launch of our new e-commerce platform, which went live in the U.S. in mid-December, approximately 5 to 6 months earlier than we anticipated. The platform's integrated design was built specifically for the needs of what our business has become. It is expected to be extremely consumer-friendly, while also, over time, delivering both revenue and operating synergies. We expect this new system to go live outside the U.S. in early 2Q.

我們的營運計劃也取得了良好進展。一個很好的例子是我們新的電子商務平台的推出，該平台於 12 月中旬在美國上線，比我們的預期提前了大約 5 到 6 個月。該平台的整合設計是專門針對我們業務發展的需求而建構的。預計它將對消費者極為友好，同時隨著時間的推移，也將帶來收入和營運協同效應。我們預計這個新系統將於第二季初在美國以外地區上線。

Another thing I'm extremely proud to see is the strong collaboration that is occurring amongst our teams across the company. A great example of this was how, last year, we had a sole-source antibody supplier for one of our diagnostics assays begin to have quality inconsistencies in their batches. Through the rapid collaboration amongst scientists from EUROIMMUN, BioLegend and Horizon, within 9 weeks, we have developed our own replacement antibody, validated it and were able to manufacture it in sufficient scale for commercial use. The ability and agility would never have been possible in the company of the past, and I'm not sure it would be possible at most companies today other than Revvity.

我非常自豪地看到的另一件事是我們整個公司的團隊之間正在發生的強有力的合作。一個很好的例子是，去年，我們的一個診斷檢測的唯一來源的抗體供應商如何開始在其批次中出現品質不一致。透過 EUROIMMUN、BioLegend 和 Horizo​​n 科學家之間的快速合作，我們在 9 週內開發了自己的替代抗體，對其進行了驗證，並能夠以足夠的規模進行生產以供商業用途。這種能力和敏捷性在過去的公司中是不可能實現的，而且我不確定現在除了 Revvity 之外的大多數公司是否能實現這一點。

As we look ahead to this year, we expect the ongoing headwinds from our pharma and biotech customers to continue, particularly in the first half of the year, as they still are working through the impact from their elevated spending levels during the COVID years. We are assuming this pressure will begin to stabilize in the back half of the year when we're anticipating returning to growth for the company overall.

展望今年，我們預計製藥和生技客戶持續面臨的阻力將持續下去，特別是在今年上半年，因為他們仍在應對新冠疫情期間支出水準上升的影響。我們假設這種壓力將在今年下半年開始穩定，屆時我們預計公司將整體恢復成長。

In light of the dynamic end market challenges continuing into 2024 as well as the return of some of the variable costs that we reduced in 2023. We have recently implemented additional structural cost actions to protect our strong profitability through this temporary period. We anticipate these actions will allow for our operating margins to remain approximately flat year-over-year at 28% this year, despite the low single-digit organic growth we expect to repeat into 2024. We expect this to result in our 2024 adjusted EPS to be in the range of $4.55 to $4.75.

鑑於終端市場挑戰持續到 2024 年，以及我們在 2023 年降低的一些可變成本的回歸。我們最近實施了額外的結構性成本行動，以在這段臨時時期保護我們強勁的盈利能力。我們預計，這些行動將使我們今年的營業利潤率與去年同期基本持平，為28%，儘管我們預計2024 年將出現較低的個位數有機增長。我們預計這將導致我們2024 年調整後每股收益範圍為 4.55 美元至 4.75 美元。

With our significant number of acquisitions over the past several years, coupled with the large divestiture we completed in early 2023. We still have many areas to further optimize in order to reach our full potential as a company. The significant actions we took in 2023, combined with the additional measures being implemented as we begin 2024, have put us on a good trajectory to further streamline and adjust our operations for the business we have now become. It also strongly positions us to capitalize on the leverage potential that exists in our company once industry growth normalizes. Overall, when looking back on 2023, I'd say it certainly ended up playing out quite differently than we had anticipated when sitting here a year ago. However, I'm so proud of the transformation that we have undergone over the past few years, which we ultimately completed last year.

過去幾年我們進行了大量收購，再加上 2023 年初完成的大規模剝離。我們仍有許多領域需要進一步優化，以充分發揮公司的潛力。我們在 2023 年採取的重大行動，加上 2024 年開始時實施的額外措施，使我們走上了良好的軌道，進一步簡化和調整我們現在的業務運作。一旦產業成長正常化，這也使我們能夠充分利用我們公司所存在的槓桿潛力。總的來說，當回顧 2023 年時，我想說，最終的結果肯定與我們一年前預期的完全不同。然而，我對我們過去幾年所經歷的轉變感到非常自豪，我們最終在去年完成了這項轉變。

While we are continuing to face external challenges, I'm extremely grateful of what Revvity has become and the significant efforts of so many who have made it come to fruition. Without everyone's efforts and the [report] of the company, our differentiated performance in 2023 would not have been possible. We remain confident that we will emerge from this temporary period of industry headwinds as a unique and stronger company that remains well positioned to help expand the boundaries of human potential through science.

雖然我們繼續面臨外部挑戰，但我非常感謝 Revvity 所取得的成就以及許多人為實現這一目標所做的巨大努力。沒有大家的努力，沒有公司的【報告】，就沒有我們2023年的差異化業績。我們仍然相信，我們將擺脫這暫時的產業逆風，成為一家獨特、更強大的公司，並始終處於有利地位，能夠透過科學幫助擴大人類潛力的界限。

With that, I'll now turn the call over to Max.

現在，我將把電話轉給馬克斯。

Thanks, Prahlad, and good morning, everyone. The company demonstrated its perseverance in the fourth quarter during a period in which underlying industry demand continued to remain dynamic. I am proud of our team's performance despite these challenges continuing through year-end, allowing our results to exceed our expectations for the quarter. As I'll comment on more in a bit, we are now assuming the current market environment remains largely in place through at least the first half of this year, which will continue to put pressure on our results and cause our full year expectations to look fairly similar to what we achieved in 2023. However, we would expect our performance to be somewhat of the inverse of what we saw last year with the first half of 2024 remaining challenged and facing organic revenue declines before returning to growth in the second half.

謝謝普拉拉德，大家早安。在基礎行業需求繼續保持活躍的時期，該公司在第四季度表現出了堅持不懈的精神。儘管這些挑戰一直持續到年底，但我對我們團隊的表現感到自豪，這使我們的業績超出了我們對本季的預期。正如我稍後將進一步評論的那樣，我們現在假設至少在今年上半年，當前的市場環境基本上保持不變，這將繼續給我們的業績帶來壓力，並導致我們的全年預期看起來與我們在2023 年取得的成績相當相似。然而，我們預計我們的業績將與去年的情況有所相反，2024 年上半年仍然面臨挑戰，並面臨有機收入下降，然後在下半年恢復增長。

While we work through this dynamic period, we have continued to remain extremely focused on those items and actions that are more fully within our control. We progressively tightened our expense management efforts throughout last year and, as previously mentioned, we have already implemented significant additional structural cost measures so far this year, which we anticipate will allow our operating margins to remain flat at 28% this year, despite our low single-digit growth outlook, paving the way for greater operating leverage in the future when growth normalizes.

在我們度過這個充滿活力的時期的同時，我們繼續高度關注那些更完全在我們控制範圍內的項目和行動。去年我們逐步收緊了費用管理工作，正如前面提到的，今年到目前為止，我們已經實施了重大的額外結構性成本措施，我們預計這將使我們今年的營業利潤率保持在28% 的水平，儘管我們的營運利潤率較低個位數的成長前景，為未來成長正常化時提高營運槓桿鋪平道路。

We also made good progress with our balance sheet and cash flow in 2023. In the fourth quarter, we generated $196 million of free cash flow as we made meaningful progress on collections and inventory management. Excluding the divestiture-related outflows we incurred during the year, much of which will be coming back to us in 2024, we generated over $400 million of free cash flow in 2023, overall. Given the amount of change that has occurred at the company over the past year, I view this as very strong performance and we are well positioned to continue executing on our capital deployment initiatives this year.

2023 年，我們的資產負債表和現金流量也取得了良好進展。第四季度，我們在收款和庫存管理方面取得了有意義的進展，產生了 1.96 億美元的自由現金流。不包括我們在這一年中發生的與資產剝離相關的資金外流（其中大部分將在 2024 年返回），我們在 2023 年總體產生了超過 4 億美元的自由現金流。考慮到公司在過去一年中發生的巨大變化，我認為這是非常強勁的業績，我們今年有能力繼續執行我們的資本部署計劃。

Now moving to our specific fourth quarter and full year results. Overall, the company generated total adjusted revenues of $696 million in the quarter, resulting in a 3% decline in non-COVID organic revenue, which was above the high end of our guidance. The outperformance was fairly broad-based as both our Life Sciences and our Diagnostics segments performed slightly above our expectations for the quarter. FX was a 1% tailwind and we again had no incremental contribution from acquisitions. For the full year, we generated $2.75 billion of total adjusted revenue, which was comprised of 2% non-COVID organic growth, no impact from FX or M&A and a modest $3 million contribution early in the year from COVID.

現在轉向我們具體的第四季和全年業績。總體而言，該公司本季調整後總收入為 6.96 億美元，導致非新冠疫情有機收入下降 3%，高於我們指導的上限。由於我們的生命科學和診斷部門的表現略高於我們對本季度的預期，因此表現優異的範圍相當廣泛。外匯是 1% 的推動力，我們再次沒有從收購中獲得增量貢獻。全年，我們產生了 27.5 億美元的調整後總收入，其中包括 2% 的非新冠疫情有機成長，沒有受到外匯或併購的影響，以及年初新冠疫情帶來的 300 萬美元的適度貢獻。

As it relates to our P&L, we generated 27.5% adjusted operating margins in the quarter, which were in line with our expectations. For the full year, our op margins were 28%, which represented approximately 100 basis points of expansion, excluding the removal of COVID-related revenues. We incurred a favorable pricing impact of approximately 130 basis points in the quarter, which brought the full year impact from pricing to approximately 150 basis points. We continue to expect at least 100 basis points of favorable pricing annually going forward.

由於與我們的損益表相關，我們本季調整後的營業利潤率為 27.5%，這符合我們的預期。全年，我們的營運利潤率為 28%，相當於擴張了約 100 個基點，不包括與新冠病毒相關的收入。我們在本季產生了約 130 個基點的有利定價影響，這使全年定價影響達到約 150 個基點。我們仍然預計未來每年至少有 100 個基點的優惠​​定價。

Looking below the line, we had adjusted net interest and other expense of $16 million, which was largely in line with our expectations. For the full year, our adjusted net interest and other expense was $58 million. Our adjusted tax rate was 12% in the quarter, which was favorable by a few hundred basis points to our expectations due to a couple of onetime tax items. These favorable discrete tax items contributed approximately $0.05 to our EPS in the quarter.

縱觀線下，我們調整了 1,600 萬美元的淨利息和其他費用，基本上符合我們的預期。全年調整後的淨利息和其他費用為 5,800 萬美元。我們本季調整後的稅率為 12%，由於一些一次性稅收項目，該稅率比我們的預期高出了幾百個基點。這些有利的離散稅收項目為本季的每股收益貢獻了約 0.05 美元。

For the full year, our adjusted tax rate was 18.6%, but would have been approximately 20% and in line with our expectations, excluding the favorability we incurred here in the fourth quarter, which we do not expect to repeat in the future. We averaged 123.4 million shares outstanding in the quarter and 124.8 million for the full year. This all led to adjusted EPS in the fourth quarter of $1.25, which was $0.09 above the midpoint and $0.07 above the high end of our expectations. Our full-year 2023 adjusted EPS was $4.65. Moving beyond the P&L, as I mentioned, we generated free cash flow of $196 million in the quarter, while on a full-year basis, our free cash flow was $198 million, which includes a headwind of slightly over $200 million from onetime divestiture and rebranding-related activities. Also, as I have previously mentioned, we expect a large portion of these outflows to reverse in 2024 and positively impact our investing cash flows when they come back to us.

就全年而言，我們調整後的稅率為 18.6%，但實際稅率約為 20%，符合我們的預期，不包括我們在第四季度獲得的優惠，我們預計未來不會重複這種情況。本季平均流通股數為 1.234 億股，全年流通股數為 1.248 億股。這一切導致第四季度調整後每股收益為 1.25 美元，比我們預期的中點高出 0.09 美元，比我們預期的高端高出 0.07 美元。我們 2023 年全年調整後每股收益為 4.65 美元。正如我所提到的，除了損益表之外，我們在本季產生了1.96 億美元的自由現金流，而全年的自由現金流為1.98 億美元，其中包括來自一次性剝離和資產剝離的略多於2 億美元的阻力。品牌重塑相關活動。此外，正如我之前提到的，我們預計這些資金外流的很大一部分將在 2024 年逆轉，並在它們回流到我們手中時對我們的投資現金流產生積極影響。

As for capital deployment, we continue to remain active in the fourth quarter. We purchased an additional $400 million of U.S. treasuries, with maturities aligned to the remainder of the $800 million bond we have coming due in September. We now have over $700 million of treasuries on our balance sheet, which will mature shortly before our bond comes due this September that we will use to extinguish this debt. We finished the quarter with a net debt to adjusted EBITDA leverage ratio of 2.8x.

在資本配置方面，我們第四季持續保持活躍。我們另外購買了 4 億美元的美國國債，其到期日與 9 月到期的 8 億美元債券的剩餘期限一致。現在，我們的資產負債表上有超過 7 億美元的國債，這些國債將在我們的債券今年 9 月到期之前不久到期，我們將用它來償還這筆債務。本季末，我們的淨負債與調整後 EBITDA 槓桿率為 2.8 倍。

I will now provide some commentary on our fourth quarter and full year business trends, which is also included in the quarterly slide presentation on our Investor Relations website. The 3% decline in non-COVID organic revenue in the quarter was comprised of a 9% decline in our Life Sciences segment and 3% growth in Diagnostics. Geographically, we declined in the high single digits in the Americas, declined in the low single digits in Europe and grew low single digits in Asia, with China flat overall. For the full year, we achieved 2% non-COVID organic growth with 5% growth in Diagnostics and flat performance in Life Sciences. The Americas declined low single digits, Europe grew mid-single digits, and both Asia and China grew mid-single digits for the full year. Within China in the quarter, we experienced mid-single-digit growth in Diagnostics, with high single-digit growth in immunodiagnostics offset by a high single-digit decline in Life Sciences.

我現在將對我們第四季度和全年的業務趨勢提供一些評論，這些趨勢也包含在我們投資者關係網站上的季度幻燈片演示中。本季非新冠疫情有機收入下降 3%，其中生命科學部門下降 9%，診斷部門成長 3%。從地理來看，美洲的高個位數下降，歐洲的低個位數下降，亞洲的低個位數成長，中國整體持平。全年，我們實現了 2% 的非新冠有機成長，其中診斷領域成長 5%，生命科學領域表現相當。美洲全年出現低個位數下降，歐洲實現中個位數成長，亞洲和中國全年實現中個位數成長。本季在中國，診斷領域實現了中個位數成長，免疫診斷領域的高個位數成長被生命科學領域的高個位數下降所抵消。

For the full year, China grew in the mid-single digits organically with high single-digit growth in Diagnostics overall, low double-digit growth in immunodiagnostics and mid-single-digit growth in Life Sciences.

全年來看，中國實現中個位數有機成長，診斷領域整體實現高個位數成長，免疫診斷領域達到低兩位數成長，生命科學領域實現中個位數成長。

From a segment perspective, our Life Science business generated total adjusted revenue of $320 million in the quarter. This was down 8% on a reported basis and 9% on an organic basis. For the full year, our Life Sciences business was flat organically.

從細分市場來看，我們的生命科學業務本季調整後總收入為 3.2 億美元。報告基礎上下降了 8%，有機基礎上下降了 9%。全年，我們的生命科學業務有機持平。

From a customer perspective, sales in the pharma biotech customers declined in the mid-teens in the quarter and in the mid-single digits for the year, which was offset by high single-digit growth from academic and government customers in the quarter and mid-teens growth for the year. Our Life Sciences instrument revenue represented about 30% of total Life Science revenue in 2023 and was down high teens in the quarter and down in the mid-single digits for the year. Our reagent licensing and specialty pharma services revenue represented about 57% of Life Sciences revenue in 2023 and grew low single digits in the quarter and in the mid-single digits for the year.

從客戶角度來看，製藥生物技術客戶的銷售額在本季度下降了十幾位數，全年下降了個位數，但被學術和政府客戶在本季和中期的高個位數成長所抵消-今年青少年的成長。 2023 年，我們的生命科學儀器收入約佔生命科學總收入的 30%，本季下降了兩位數，全年下降了中個位數。 2023 年，我們的試劑許可和專業製藥服務收入約佔生命科學收入的 57%，本季實現低個位數成長，全年實現中個位數成長。

Finally, our Signal software business, which represented the remaining 13% of Life Science revenue in 2023, declined double digits in the quarter and in the high single digits for the year. The decline in both the quarter and the full year was in line with expectations and was driven by fewer multiyear contracts renewing, which we anticipate to normalize in 2024.

最後，我們的訊號軟體業務佔 2023 年生命科學收入的剩餘 13%，本季下降了兩位數，全年下降了較高的個位數。本季和全年的下降符合預期，是由於多年期合約續約減少所致，我們預計這種情況將在 2024 年恢復正常。

In our Diagnostics segment, we generated $376 million of total adjusted revenue in the quarter, which was down 4% on a reported basis and 6% on an organic basis. On a non-COVID basis, the segment grew 3% versus a year ago in the quarter and 5% for the year.

在我們的診斷部門，本季調整後總收入為 3.76 億美元，報告基礎上下降 4%，有機基礎上下降 6%。在非新冠疫情影響下，該細分市場本季較去年同期成長 3%，全年較去年同期成長 5%。

Our immunodiagnostics business represented about 50% of our total diagnostics revenue in 2023 and grew in the mid-teens organically, excluding COVID, during both the quarter and the full year. Our immunodiagnostics business was strong globally as it continued to grow in the high teens outside of China, both in the quarter and the full year.

2023 年，我們的免疫診斷業務約佔診斷總收入的 50%，並且在本季度和全年均實現了十幾歲左右的有機增長（不包括新冠疫情）。我們的免疫診斷業務在全球範圍內表現強勁，在中國以外地區的季度和全年均持續成長。

Our reproductive health business, which represented about 34% of total Diagnostics revenue in 2023, declined in the low single digits organically in the quarter and the full year. This business was again pressured by a significant mid-20% decline in our Revvity Omics lab business in the quarter and nearly 35% decline for the full year. As we transition to 2024, we will have now lapped the contract completions, which pressured growth last year and do not anticipate such major year-over-year declines to continue. These pressures were partially offset by strong performance in 2023 from our newborn franchise, which grew in the high single digits overall for the year.

我們的生殖健康業務約佔 2023 年診斷總收入的 34%，該業務在本季和全年均出現低個位數有機下降。該業務再次受到 Revvity Omics 實驗室業務本季下降 20% 以及全年下降近 35% 的壓力。隨著我們向 2024 年過渡，我們現在將完成合約完工量，這給去年的成長帶來了壓力，並且預計這種同比大幅下降不會持續。這些壓力被我們的新生兒特許經營業務 2023 年的強勁表現所部分抵消，該特許經營業務全年整體以高個位數增長。

Finally, our applied genomics business, which represented the remaining roughly 16% of total Diagnostics revenue in 2023, continue to see pressure from the slowdown in pharma biotech spending and the hangover effect from elevated clinical lab COVID spending.

最後，我們的應用基因組學業務（佔 2023 年診斷總收入的剩餘約 16%）繼續面臨製藥生物技術支出放緩以及臨床實驗室新冠支出增加帶來的後遺症的壓力。

Non-COVID organic revenue for our applied genomics business was down in the mid-teens during the quarter and was down in the high single digits for the full year. Now as it pertains to our outlook for 2024, we expect current industry headwinds to remain over at least the next couple of quarters before we begin to face easier comparisons as the year progresses.

我們的應用基因組學業務的非新冠有機收入在本季度下降了十幾歲左右，全年下降了高個位數。現在，由於涉及我們對 2024 年的展望，我們預計當前的行業阻力至少會在未來幾季持續存在，然後隨著時間的推移，我們將開始面臨更容易的比較。

Our initial guidance for organic growth is similar to what we experienced in 2023 in the 1% to 3% range. From a quarterly pacing perspective, we expect revenue in the first quarter to be down mid-single digits with a sequential improvement in the second quarter, resulting in the first half still being down year-over-year overall. We expect to return to positive growth starting in the third quarter this year. We also expect FX to contribute approximately 1% to total revenue, based on the rates at the end of December.

我們對有機成長的初步指導與 2023 年的經驗類似，在 1% 到 3% 的範圍內。從季度節奏來看，我們預計第一季營收將出現中個位數下降，第二季將環比改善，導致上半年整體仍同比下降。我們預計從今年第三季開始將恢復正成長。根據 12 月底的匯率，我們也預期外匯將佔總收入約 1%。

Moving down the P&L. We expect to hold our operating margin flat at 28% as our recent structural cost actions will help offset both some variable cost returning and the lower-than-normal organic growth we expect for this year. We expect total revenue in the first quarter to be the lowest for the year, which when combined with the only partial quarter impact from our recent cost actions, we expect it will result in our operating margins being several 100 basis points below our full year guidance here in the first quarter. We currently expect our margins to be fairly similar to each other in the second and third quarters at around our overall full year average, with the fourth quarter being the strongest quarter of the year. We expect adjusted net interest and other expense in 2024 to be approximately $70 million, representing a 20% increase versus last year. This increase is attributed to less interest income on lower cash balances as we pay off $1.3 billion in debt in 2023 and 2024.

損益表向下移動。我們預計營運利潤率將保持在 28% 不變，因為我們最近的結構性成本行動將有助於抵消一些可變成本回報和我們預計今年低於正常水平的有機成長。我們預計第一季的總收入將是今年最低的，再加上我們最近的成本行動僅對部分季度產生影響，我們預計這將導致我們的營業利潤率比全年指導低數百個基點第一季度在這裡。目前，我們預計第二季和第三季的利潤率將相當接近，約為全年平均水平，其中第四季是全年最強勁的季度。我們預計 2024 年調整後的淨利息和其他費用約為 7,000 萬美元，比去年增長 20%。這一增長歸因於我們在 2023 年和 2024 年償還了 13 億美元的債務，現金餘額減少導致利息收入減少。

We expect our tax rate to be 20% and our average share count to be 123.5 million, similar to what it was in the fourth quarter. This all results in our initial 2024 adjusted EPS guidance to be in the range of $4.55 to $4.75, with the midpoint being flat to what we generated in 2023. We expect approximately 20% of our full year earnings to come here in the first quarter as our tax rate will be about 200 basis points above our full year average and net interest expense will be down about $5 million sequentially from the fourth quarter before increasing over the remainder of the year.

我們預計稅率為 20%，平均股票數量為 1.235 億股，與第四季相似。這一切導致我們最初的 2024 年調整後每股收益指引範圍為 4.55 美元至 4.75 美元，其中中點與我們 2023 年的預期持平。我們預計第一季將有約 20% 的全年收益，因為我們的稅率將比全年平均高出約200 個基點，淨利息支出將比第四季連續減少約500 萬美元，然後在今年剩餘時間內增加。

As we enter 2024, we will ensure we closely manage those items that are fully within our control, such as delivering on our innovation pipelines, reducing our working capital and remaining active with capital deployment, while continuing to take appropriate actions to further streamline and optimize the company following its transformation.

進入 2024 年，我們將確保密切管理那些完全在我們控制範圍內的項目，例如交付我們的創新管道、減少我們的營運資本以及保持積極的資本部署，同時繼續採取適當的行動來進一步簡化和優化公司轉型後。

With current industry headwinds subside, Revvity will be in an even stronger position to capitalize on this recovery, continue to highlight our differentiation and realize the full potential of what we have become. With that, operator, we would now like to open up the call for questions.

隨著當前產業逆風的消退，Revvity 將處於更有利的地位，能夠利用這次復甦，繼續突出我們的差異化並充分發揮我們的潛力。接線員，我們現在要開始提問。

(Operator Instructions) Our first question today comes from the line of Jack Meehan from Nephron Research.

（操作員說明）我們今天的第一個問題來自 Nephron Research 的 Jack Meehan。

Prahlad, wanted to just start and get your thoughts how you're feeling about visibility into the business now. The macros still pretty volatile. Just it would be great to hear what you're hearing from customers and the things that build your confidence this 2024 outlook is in the right spot.

Pralahad，想先了解一下您現在對業務可見度的看法。巨集仍然相當不穩定。如果能聽到客戶的回饋以及讓您對 2024 年前景充滿信心的事情，那就太好了。

'23 certainly did not play out as we or others has had envisioned it. But I think it was good to see that, in the fourth quarter, while the environment remained challenging, for the first time in '23, it did not deteriorate more than what we had anticipated. I mean, I would say, as we look forward into '24, including here in the first quarter, we are not anticipating any sort of meaningful or significant improvement, but I would say rather more of a continuation of current trends. So things do start to pick up. I would say that I would expect that to provide more upside to the current outlook. So somewhat where we are is more of a temporary holding pattern before demands comes backs, but I'm optimistic that we are perhaps what we are experiencing currently is more of a trough.

'23 的結果當然沒有像我們或其他人所設想的那樣。但我認為很高興看到，在第四季度，雖然環境仍然充滿挑戰，但情況並沒有比我們預期的惡化得更嚴重，這是 23 年以來的第一次。我的意思是，我想說，當我們展望 24 年，包括第一季時，我們預計不會出現任何有意義或重大的改進，但我想說更多的是當前趨勢的延續。所以事情確實開始好轉。我想說的是，我預計這將為當前的前景提供更多的上行空間。因此，在需求回升之前，我們所處的位置更像是一種暫時的持有模式，但我樂觀地認為，我們目前所經歷的情況可能更像是一種低潮。

As far as we go, I think one of the things that do help us is the portfolio transformation journey that we have gone through. If you look at our portfolio now, we have more diagnostics than our peers. We've got less of a capital-intensive business now than our peers, we've got a meaningful software business, and this differentiation allows us to have the confidence that we are in a pretty decent spot.

就我們而言，我認為對我們有幫助的事情之一就是我們所經歷的投資組合轉型之旅。如果你現在看看我們的產品組合，我們比同行擁有更多的診斷技術。與同行相比，我們現在的資本密集型業務較少，我們擁有有意義的軟體業務，這種差異化使我們有信心，我們處於相當不錯的位置。

Great. And then a follow-up for Max. Just as you -- I appreciate the color on the pacing you provided. If you look at sales, so core down mid-singles in the first quarter, just to get to the ramp you're talking about, I just wanted to confirm, are you kind of assuming this is just comp dynamics? Or is there anything else like noteworthy you're assuming in terms of the assumptions behind that?

偉大的。然後是麥克斯的後續行動。就像你一樣——我很欣賞你提供的節奏上的色彩。如果你看一下銷售情況，那麼第一季的核心單打中段下降，只是為了達到你所說的斜坡，我只是想確認一下，你是否認為這只是競爭動態？或者就背後的假設而言，還有其他值得注意的事情嗎？

Yes. So comps is definitely driving the majority of it. So we mentioned a little bit in the prepared remarks, as you pointed out, that we'd be down mid-single digits for Q1, a slight improvement in Q2, but still negative with the return to growth in the third quarter. I wouldn't say that we are expecting a material change in the market environment in the second half, there's always a little bit of quarterly nose, but it's mostly comp-driven. And another way to think about it is if you look at our 2-year stack between the first half and second half, both are at a low single digit with those sort of annual cadence that I previously mentioned.

是的。因此，比較肯定是其中的主要動力。因此，正如您所指出的，我們在準備好的評論中提到了一點，第一季我們的業績將下降中個位數，第二季度略有改善，但隨著第三季度恢復增長，我們的業績仍為負數。我不會說我們預計下半年市場環境會發生重大變化，季度季度總會有一些變化，但主要是由公司利潤驅動的。另一種思考方式是，如果你看看我們上半年和下半年之間的兩年堆棧，兩者都處於較低的個位數，符合我之前提到的那種年度節奏。

The next question today comes from the line of Matt Sykes from Goldman Sachs.

今天的下一個問題來自高盛 (Goldman Sachs) 的 Matt Sykes。

Maybe, Prahlad, wanted to start for you. As you look at the Life Sciences segment and the number of acquisitions you've made in that business, how do you feel the synergies are playing out in terms of covering the needs of researchers in both academic and biopharma? Are there portions of their workflow and spend where you see gaps in your offering? And do you think you might lose the customer touch points along the way because of those gaps? Or do you think you're capturing the customers through the majority of their early R&D workflow? And if there are gaps, is that an organic solution, inorganic solution? Just would love to get your thoughts on that.

也許，普拉拉德，想為你開始。當您查看生命科學領域以及您在該業務中進行的收購數量時，您認為在滿足學術和生物製藥研究人員的需求方面協同效應如何發揮？您認為他們的工作流程和支出中是否存在某些與您的產品有差距的部分？您是否認為您可能會因為這些差距而失去客戶接觸點？或者您認為您是透過大部分的早期研發工作流程來吸引客戶嗎？如果有間隙，那是有機溶液還是無機溶液？只是想聽聽您對此的想法。

Great question. I think the whole journey that we have gone through on our portfolio transformation was indeed to fill the gaps that we had in our portfolio. And if you recall, 2 years ago, it was primarily a small molecule portfolio in preclinical research and differentiation -- preclinical research and development. I mean the whole concept of what we went through our acquisition journey was to fill the gaps in our portfolio around large molecules, biomolecule, cell and gene therapy. And I think the synergies that we have started seeing from the Horizon, SIRION, BioLegend and Nexcelom acquisition is on the biomolecule side of the table. So I think we feel very good where we are, and if you add the software component that allows us more differentiation, we feel very good with the portfolio that we have. Will -- are there other additions that we will continue to make? Absolutely. But I think we feel very good with the portfolio that we have built.

很好的問題。我認為我們在投資組合轉型方面經歷的整個旅程確實是為了填補我們投資組合中的空白。如果你還記得，兩年前，它主要是臨床前研究和差異化的小分子組合——臨床前研究和開發。我的意思是，我們收購過程的整個概念是填補我們在大分子、生物分子、細胞和基因療法方面的投資組合的空白。我認為我們從 Horizo​​​​n、SIRION、BioLegend 和 Nexcelom 收購中開始看到的協同效應是在生物分子方面。因此，我認為我們對目前的情況感覺非常好，如果添加能讓我們更具差異化的軟體元件，我們對現有的產品組合感覺非常好。我們還會繼續增加其他內容嗎？絕對地。但我認為我們對我們建立的投資組合感覺非常好。

Great. And then, Max, just on phasing for diagnostics specifically, how are you thinking about, as we progress through the year, in terms of diagnostics growth and recovery, there's some different types of comps that business has relative to, maybe, Life Sciences. And then specifically on China, ImmunoDX, how are you thinking about that phasing of growth within your 2024 guidance framework?

偉大的。然後，馬克斯，就具體而言，診斷分階段進行，您如何看待隨著我們這一年的進展，在診斷增長和復甦方面，業務可能與生命科學相關的一些不同類型的比較。然後，特別是在中國，ImmunoDX，您如何考慮 2024 年指導框架內的成長階段？

So I would say from the diagnostics ramps perspective, the first half will be, I think, roughly flat from a diagnostic standpoint. So if you remember, we have the big -- the continued headwinds we'll have in applied genomics throughout the year as we still are going through the additional COVID purchases and the Life Sciences weakness. And so it will be about flattish for the first half and then second half we're anticipating a return to mid-single-digit growth for the Diagnostics business.

因此，我想說，從診斷的角度來看，我認為，從診斷的角度來看，上半年將大致持平。因此，如果你還記得的話，我們全年在應用基因組學方面將面臨巨大的持續阻力，因為我們仍在經歷額外的新冠採購和生命科學的弱點。因此，上半年的情況將基本持平，下半年我們預期診斷業務將恢復中個位數的成長。

In terms of your question on immunodiagnostics, China, our assumption there for the full year is mid-single-digit growth. However, if you exclude the impact of a change in go-to-market strategy we had for one of our legacy infectious disease businesses in China. The growth there is still similar to what it was in 2023 in terms of the high single to low double-digit range. And the reason why we made that change in the legacy business was actually to improve the profitability of us, overall, though it will come with a little bit of a hit from a revenue perspective.

就您關於中國免疫診斷的問題而言，我們對全年的假設是中個位數成長。然而，如果排除我們對中國傳統傳染病業務之一的進入市場策略變化的影響。從高個位數到低兩位數的範圍來看，該地區的成長仍與 2023 年相似。我們對傳統業務進行這種改變的原因實際上是為了提高我們整體的獲利能力，儘管從收入的角度來看，這會帶來一點打擊。

The next question today comes from the line of Josh Waldman from Cleveland Research.

今天的下一個問題來自克利夫蘭研究中心的 Josh Waldman。

Two for you. First, either Prahlad or Max, I wonder if you could provide more context on what you're seeing in the Life Science instrument business. I guess the instrument business, broadly, both Life Science and applied genomics, I mean, it looks like both of those came in a bit better than you were thinking when you guided Q4. Curious if maybe you didn't see quite the pullback from pharma you were expecting? Or maybe did you see some budget flushing in November and December come through? And then what's assumed for those businesses in '24?

兩個給你。首先，無論是普拉拉德還是馬克斯，我想知道您是否可以提供更多關於您在生命科學儀器業務中所看到的情況的背景資訊。我想廣義來說，儀器業務包括生命科學和應用基因組學，我的意思是，看起來這兩個領域都比您指導第四季時想像的要好一些。好奇您是否沒有看到預期的製藥公司的回調？或者您是否看到 11 月和 12 月發生了一些預算短缺？那麼 24 年這些企業的假設是什麼呢？

Yes. Josh. So I would say if you look at the fourth quarter results, to your point, instrumentation on both the Life Sciences and applied genomics standpoint fared a bit better than our expectations. I think coming into the quarter, we had mentioned that we were wanting to be a little bit more conservative on our instrumentation assumptions and so those did prove out to be conservative, and they were slightly better. although we wouldn't really call it there was a budget flush activity in the fourth quarter. So as we look out to 2024, we do still believe our instruments will be pressured for this year. And I think if you look at the overall assumptions, both the Life Sciences instruments and applied genomics will be down in the high single-digit range for 2024, and that will put them closer in line to what their LRP is when you look over the -- at that over a 4- or 5-year period.

是的。喬許。所以我想說，如果你看看第四季度的結果，就你的觀點而言，生命科學和應用基因組學方面的儀器的表現都比我們的預期要好一些。我認為進入本季度，我們曾提到我們希望對儀器假設更加保守一點，因此事實證明這些假設確實是保守的，而且稍微好一些。儘管我們不會真正稱之為第四季的預算充裕活動。因此，當我們展望 2024 年時，我們仍然相信我們的工具今年將面臨壓力。我認為，如果你看看總體假設，到 2024 年，生命科學儀器和應用基因組學都將下降到高個位數範圍內，這將使它們更接近當你查看——在4 到5 年的時間內。

Got it. Okay. And then, Prahlad, can you talk about any momentum you're seeing in key accounts as it relates to Revvity's ability to cross-sell or realize commercial synergies following the divestiture and rebranding? I guess, are there any specific examples you can point to of how Revvity is making progress towards being a more effective strategic partner, specifically within pharma?

知道了。好的。然後，Prahlad，您能否談談您在關鍵客戶中看到的任何勢頭，因為這與 Revvity 在剝離和品牌重塑後交叉銷售或實現商業協同效應的能力有關？我想，您可以舉出一些具體的例子來說明 Revvity 如何在成為更有效的策略夥伴方面取得進展，特別是在製藥領域？

Yes, Josh, I think and I mentioned that during one of the health care conferences earlier in January, our example with one of our most important customers that we talked about in the pharma side is how we are able to leverage our relationship both on the Diagnostic and the Life Sciences side of the portfolio to not only license technology to them, but also provide the tools and capabilities and our service offering from the DX side that allows for being part of the journey of drug development for our important customers, all the way from preclinical research, and licensing them the technology, providing them the tools and capabilities that allows them to use and leverage that technology towards drug development and then being part of the journey with them through their development process as they take it through the regulatory approval processes and then further on, leveraging our global lab infrastructure from the Omics side of the business to be able to follow up those patients both for efficacy of the drug and for follow-ups.

是的，喬什，我想，我在 1 月初的一次醫療保健會議上提到過，我們在製藥方面與我們最重要的客戶之一討論的例子是我們如何能夠在產品組合的診斷和生命科學方面不僅向他們授權技術，而且還提供DX 方面的工具和功能以及我們的服務產品，使我們能夠成為我們重要客戶（所有客戶）藥物開發旅程的一部分從臨床前研究開始，向他們授予技術許可，為他們提供工具和能力，使他們能夠使用和利用該技術進行藥物開發，然後在他們通過監管審批時與他們一起完成開發過程流程，然後進一步利用我們業務組學方面的全球實驗室基礎設施，能夠追蹤這些患者的藥物療效和追蹤情況。

So that sort of allows us -- initially, when we were on the small molecule side in Life Science, our focus was on providing them with reagents and tools and instruments and in-vivo imaging components. We just do their research. Now, with the full expansion of our portfolio, it allows us to be with them from the start to when it gets to commercialization.

因此，這使得我們——最初，當我們在生命科學領域的小分子方面時，我們的重點是為他們提供試劑、工具和儀器以及體內成像組件。我們只是做他們的研究。現在，隨著我們產品組合的全面擴展，我們能夠從開始到商業化始終與他們合作。

The next question today comes from the line of Patrick Donnelly from Citi.

今天的下一個問題來自花旗集團的 Patrick Donnelly。

Probably one for Max, on the margin side. I understand this year, more flattish given the revenue outlook. It sounds like you guys are continuing to implement some cost plans there. Can you just talk about the confidence in that 75 bps expansion algorithm that you guys talked about at JPM? And just this becoming that 30-plus percent margin business in the relative near term. What are the key levers you see and maybe just the process that went into revisiting that algorithm. Did you guys want to set it more as a floor where you saw a clear path to executing on it? Even the China piece sounds like you're chasing more profitability there. So maybe just kind of pull the curtain back a little on the margins and, again, that algorithm you guys set.

可能是麥克斯的一個，在邊緣方面。據我了解，今年的收入前景更加平淡。聽起來你們正在繼續在那裡實施一些成本計劃。您能談談你們在 JPM 談到的 75 bps 擴充演算法的信心嗎？就在短期內，這將成為利潤率超過 30% 的業務。您看到的關鍵槓桿是什麼，也許只是重新審視演算法的過程。你們是否想將其更多地設置為一個平台，以便您可以在上面看到清晰的執行路徑？即使是中國的部分聽起來也像是你在追求更高的獲利能力。所以也許只是在邊緣拉開一點帷幕，然後再一次，你們設定的演算法。

Yes, sure, Patrick. So as we step back and look at it from a margin perspective, I think that 75 basis points, it was taken down from the previous MRP of 75 to 100 basis points, and that was mostly just attributed, I think, to the change in the top line assumptions. If you look at the assumption of the market on average is growing 4% to 6%, we're a couple of hundred basis points better than that. That's going to drive natural operating leverage just from a pure growth perspective. And so even in addition to that, I think where we have confidence in sort of the margin expansion, is really still the fact that we're still in the early innings of what the actual overall structure of this company should be, given all the transformation, right? In terms of the number of acquisitions and integrating them into our core business and processes as well as sort of working our way through all the stranded costs related to the divestiture.

是的，當然，派崔克。因此，當我們退後一步，從利潤率角度來看時，我認為 75 個基點是從之前 75 到 100 個基點的 MRP 下降的，我認為這主要歸因於頂級假設。如果你假設市場平均成長 4% 到 6%，我們會比這個假設好幾百個基點。僅從純粹成長的角度來看，這將推動自然營運槓桿。因此，即使除此之外，我認為我們對利潤率擴張有信心的地方，實際上仍然是這樣一個事實：鑑於所有的因素，我們仍處於該公司實際整體結構的早期階段。轉型，對嗎？就收購數量而言，並將其整合到我們的核心業務和流程中，以及解決與剝離相關的所有擱淺成本。

So I think we have a lot of stokes -- or irons in the fire from an op margin expansion standpoint outside of just the natural volume leverage you would get. I think there is a high degree of confidence. And in terms of your question in terms of the amount is conservative or whether it's a floor, I think we thought it was a fair number that we can consistently deliver on with that expected growth algorithm.

因此，我認為，從營運利潤率擴張的角度來看，除了您將獲得的自然交易量槓桿之外，我們還有很多問題。我認為有高度的信心。至於你關於金額是否保守或是否為下限的問題，我認為我們認為這是一個公平的數字，我們可以按照預期的成長演算法持續交付。

Okay. That's helpful. Prahlad, maybe just on China, it sounds like you guys talked a little about the ImmunoDX on an earlier question. But just in terms of this year, what you're seeing there, confidence both on the Diagnostics and then the Life Science side, which is obviously a little more variable. Again, it sounds like you guys are making some changes in terms of going after a little more profitable business, but just the outlook in China, confidence in that region and what you're seeing here near term.

好的。這很有幫助。 Prahlad，也許只是關於中國，聽起來你們在之前的問題上談到了ImmunoDX。但就今年而言，你所看到的，是對診斷和生命科學的信心，這顯然有更多的變數。再說一遍，聽起來你們正在為了追求利潤更高的業務而做出一些改變，但這只是中國的前景、對該地區的信心以及您近期在這裡看到的情況。

Yes, Patrick. I think nothing's changed in our view regarding China and that level of confidence is because of the portfolio differentiation. I mean this is where I think it really comes down to a good understanding of the markets and the segments where we play in that market. And if you just look at the portfolio that we have built out over there. In terms of Life Sciences side, I think on the instrumentation side, we will continue to see some pressure, which is not very different from the other global markets. But I think, on the reagent side, we will continue to see it coming back.

是的，派崔克。我認為我們對中國的看法沒有任何改變，這種信心水準是由於投資組合的差異。我的意思是，我認為這真正取決於對市場和我們在該市場中所從事的細分市場的良好理解。如果你看看我們在那裡建立的投資組合。在生命科學方面，我認為在儀器方面，我們將繼續看到一些壓力，這與其他全球市場沒有太大不同。但我認為，在試劑方面，我們將繼續看到它的回歸。

On the immunodiagnostics side, I think excluding the impact of what Max talked about for a small legacy business that helps us improve profitability, it is going to be on a continued growth trajectory. Newborn screening is going to get impacted, but we've got quite a few of our reagents that are awaiting NMPA approval. And hopefully, they will compensate for the pressure that we will see from the birth rate decline.

在免疫診斷方面，我認為排除馬克斯所說的對幫助我們提高盈利能力的小型傳統業務的影響，它將處於持續增長的軌道上。新生兒篩檢將會受到影響，但我們有相當多的試劑正在等待 NMPA 的批准。希望它們能夠彌補出生率下降所帶來的壓力。

So, overall, I think it again comes back to the differentiation of our portfolio in China and outside of China. The lower -- it sort of risk mitigates our portfolio, both the exposure to the Diagnostics, Life Sciences and the software market, which sort of, in the longer run, is going to be the competitive advantage that we will have.

因此，總的來說，我認為這又回到了我們在中國和中國以外的投資組合的差異化。較低的風險可以減輕我們的投資組合，包括診斷、生命科學和軟體市場的風險，從長遠來看，這將成為我們將擁有的競爭優勢。

The next question today comes from the line of Andrew Cooper from Raymond James.

今天的下一個問題來自雷蒙德詹姆斯的安德魯庫柏。

Maybe, first, I want to talk about margins a little bit more just for this year. You have modest top line organic growth. You've got 100 bps coming from price, some cost actions. So, I guess, what are some of the counterpoints to prevent maybe a little bit of expansion year-over-year in '23? Or maybe asking it in a different way, what's the threshold of revenue growth you need to see to actually see that margin expansion?

也許，首先，我想多談談今年的利潤率。您的收入有機增長適度。你有 100 個基點來自價格和一些成本行為。那麼，我想，有哪些對策可以防止 23 年比去年同期出現一點點擴張？或者也許以不同的方式問，您需要看到什麼收入成長門檻才能真正看到利潤率擴張？

Yes. Andrew, I think, as we previously mentioned, the one dynamic you didn't mention for 2024 that we have already previously discussed is the fact that we will have variable costs that are returning in 2024. And I do not believe we are alone in that dynamic, as you've heard some of the others in the industry mentioned it. So I think from that perspective, that's really what's offsetting to your point, the price and the structural cost actions that we have been taking. As you look out more longer term, I would say, in a normal environment where you don't have that snapback of the variable costs, even with, I would say, a lower growth than the LRP model assumes, I would anticipate us still being able to drive margin expansion, given some of my earlier points. But again, volume is a heavy driver when you think about it from a margin expansion standpoint.

是的。安德魯，我認為，正如我們之前提到的，您沒有提到的2024 年動態是我們之前已經討論過的一個事實，即我們將在2024 年返回可變成本。而且我不相信我們是唯一這樣做的正如您聽到業內其他一些人提到的那樣。因此，我認為從這個角度來看，這確實抵消了您的觀點，即我們一直在採取的價格和結構性成本行動。當你著眼於更長期的情況時，我會說，在一個正常的環境中，你沒有可變成本的快速回升，即使我會說，增長率低於LRP 模型假設的水平，我仍然預計我們仍然鑑於我之前的一些觀點，能夠推動利潤率擴張。但同樣，當你從利潤擴張的角度考慮時，銷售量是一個重要的驅動因素。

Okay. Helpful. And then maybe just one on the e-commerce rollout. Any early feedback there or metrics you can share in terms of what the rollout has really looked like and whether it's more on the cost side, how we think about customer retention, sort of what the benefits are as we think about that moving beyond just the U.S. rollout and globally longer term?

好的。有幫助。然後也許只是電子商務推出中的一個。您可以分享的任何早期反饋或指標，包括部署的實際情況以及是否更多地在成本方面，我們如何看待客戶保留，以及當我們考慮超越時的好處是什麼。美國的推廣和全球的長期推廣？

Yes, Andrew. I mean, as we mentioned it, we just rolled it out in mid-December, so it's early days of the [MVP], and we are seeing good traction on it. from a customer flow perspective, the OUS launch is expected to be out in the early part of the second quarter. So while I would say it's 4 to 5 months ahead of schedule, it is still early days and looks promising. I think, over the longer term, the benefit that we get out of it is not just synergies of being able to offer our comprehensive portfolio to our customers on a common platform, but, obviously, the synergistic opportunities that you get from a cost perspective or an OpEx perspective. So we are very excited about what we are hearing and seeing, but early days is the best way I would frame it for now.

是的，安德魯。我的意思是，正如我們所提到的，我們剛剛在 12 月中旬推出了它，所以現在是 [MVP] 的早期階段，我們看到了它的良好吸引力。從客流角度來看，OUS預計將在第二季初推出。因此，雖然我想說這比原計劃提前了 4 到 5 個月，但現在還處於早期階段，看起來很有希望。我認為，從長遠來看，我們從中獲得的好處不僅僅是能夠在通用平台上向客戶提供全面的產品組合的協同效應，而且顯然，從成本角度來看，您可以獲得協同機會或運營支出的角度。因此，我們對所聽到和看到的內容感到非常興奮，但早期是我目前建立它的最佳方式。

The next question today comes from the line of Catherine Schulte from Baird.

今天的下一個問題來自貝爾德 (Baird) 的凱瑟琳舒爾特 (Catherine Schulte)。

Maybe, first, your software and genomics lab businesses have faced headwinds over the last year due to some contract renewal and project timing dynamics. You mentioned those normalizing in '24, but can you just walk us through the timing there and what kind of performance you expect from those businesses, both for the first quarter and the full year?

也許，首先，由於一些合約續約和專案時間動態，您的軟體和基因組實驗室業務在去年面臨阻力。您提到了 24 年的正常化，但您能否向我們介紹那裡的時間表以及您對這些業務在第一季和全年的預期表現如何？

Yes. Sure, Catherine. So as we look at -- maybe if we take a step back and just think about our guidance more holistically, I think the way to think about it is we're assuming sort of a market down low single digits here in 2024. Revvity grows couple of hundred basis points above the market, so call that flat overall. And then the way we get to 2% is sort of that normalization of the software and Omics business. So it's about a 200 basis point specific Revvity tailwind for this year.

是的。當然，凱瑟琳。因此，當我們看到時，也許如果我們退後一步，更全面地考慮我們的指導，我認為思考這個問題的方法是，我們假設 2024 年市場將出現低個位數下降。Revity 增長較市場高出數百個基點，因此整體持平。然後我們達到 2% 的方法就是軟體和組學業務的標準化。因此，今年 Revvity 的具體推動力約為 200 個基點。

In terms of the individual assumptions for those businesses for the software business, it declined high single digits in 2023, we expect it to return to high-single-digits growth in 2024 and for the Omics business, that was down a little bit more than 30% in 2023, and we are expecting that to be flat in 2024 so, essentially, assuming none of those new contracts get signed. We continue to remain encouraged by the pipeline we have for that business. And if we're able to close on some of those deals, that would be upside to what's assumed in the guidance case here.

就軟體業務這些業務的個別假設而言，它在 2023 年下降了高個位數，我們預計它將在 2024 年恢復到高個位數增長，而對於 Omics 業務，下降幅度略高於2023 年將成長30%，我們預計2024 年這一數字將持平，因此，基本上假設沒有簽署任何新合約。我們對該業務的管道繼續感到鼓舞。如果我們能夠完成其中一些交易，這將比此處指導案例中的假設有好處。

Okay. Great. And then how should we think about free cash flow in 2024, particularly with those AES outflows coming back to you?

好的。偉大的。那我們該如何考慮 2024 年的自由現金流，特別是那些 AES 流出又回到你身邊的情況？

Yes. So from a cash flow perspective, again, we are encouraged by the results that we had here in the fourth quarter. For the overall year, that would have meant about roughly more than $400 million once you normalize for those AES outflows. As we look to 2024, our anticipation of free cash flow generation is about $450 million. The AES outflows will actually come back to us as inflows in investing cash flow. If you add that to the $450 million, we are targeting to have about $600 million of overall cash generation in 2024.

是的。因此，從現金流的角度來看，我們對第四季的業績再次感到鼓舞。就全年而言，一旦將 AES 資金外流標準化，這意味著大約超過 4 億美元。展望 2024 年，我們預期自由現金流產生約 4.5 億美元。 AES 的流出實際上將作為投資現金流的流入返回給我們。如果將其加上 4.5 億美元，我們的目標是到 2024 年產生約 6 億美元的總現金。

The next question today comes from the line of Vijay Kumar from Evercore ISI.

今天的下一個問題來自 Evercore ISI 的 Vijay Kumar。

Maybe my first one for you on the Q1 organic guidance assumption of down mid-singles, you did call it comps. You look at Q4, down low singles. Most of your peers are assuming first half to be similar to Q4 jump offs. And maybe just talk sequentially why perhaps what's driving that change from down low singles to down mid-singles.

也許我為您提供的第一個關於中單打第一季的自然指導假設，您確實稱之為比較。你看看第四季度，低單打。大多數同業都假設上半年與第四季的情況類似。也許只是按順序談談為什麼是什麼推動了從低單打到中單打的轉變。

Yes. I think, as we talked about, from a Q4 to a Q1 perspective, a lot of it is, obviously, the comps that we had from last year. So it is more an impact of that than anything else. And I think, as Max laid out the cadence of the calendar for the year, there is nothing outside of that, that I would say. We do have some pressure from reproductive health, especially in China. And on the instrument side, we will see some impact of that. But more than anything else, it is just timing is where I would allocate it to the impact that we see on 1Q versus anything else.

是的。我認為，正如我們所討論的，從第四季度到第一季度的角度來看，很明顯，其中許多都是我們去年的比較。所以它的影響比其他任何因素都大。我認為，正如馬克斯制定了今年日曆的節奏一樣，我想說的是，除此之外沒有什麼。我們確實面臨一些來自生殖健康的壓力，尤其是在中國。在儀器方面，我們將看到它的一些影響。但最重要的是，我將其分配給我們在第一季看到的影響而不是其他因素。

Yes. I mean, the only point I'd add to that, Vijay, you mentioned it yourself, right? Most are saying that the first half will be similar to what they had in Q4, and that's what I just mentioned previously, right, that our first half assumption is down low single digits, which is in line with what we just printed for the fourth quarter.

是的。我的意思是，我唯一要補充的一點是，Vijay，你自己也提到過，對吧？ Most are saying that the first half will be similar to what they had in Q4, and that's what I just mentioned previously, right, that our first half assumption is down low single digits, which is in line with what we just printed for the fourth四分之一.

Understood. And, Max, maybe one for you, your gross margins in Q4 down sequentially, so what happened in Q4? And when you think about fiscal '24 guide, is the guide assuming gross margins to be flattish, up or down versus fiscal '23?

明白了。而且，麥克斯，也許對你來說是這樣，你第四季的毛利率連續下降，那麼第四季發生了什麼事？當您考慮 24 財年指南時，該指南是否假設毛利率與 23 財年相比持平、上升還是下降？

Yes. Sorry, Vijay, I might have missed the first part of your question, I think you were mentioning -- just asking the question on gross margin for this year. So in the fourth quarter, the gross margin was about 60%. It was down quarter-over-quarter as we had some mix dynamics play out in the fourth quarter. As we look to full year 2024, we expect gross margin to be roughly flat year-over-year, and we expect it to build as the year goes on as we get increased volume leverage throughout the year.

是的。抱歉，維傑，我可能錯過了你問題的第一部分，我想你提到了——只是問了今年毛利率的問題。那麼第四季的毛利率大概是60%左右。由於我們在第四季度出現了一些混合動態，因此季度環比下降。展望 2024 年全年，我們預計毛利率將與去年同期大致持平，並且隨著我們全年銷量槓桿的增加，毛利率將隨著時間的推移而增加。

And so, essentially, the mix improves, Max, is that the assumption, like what's driving the step-up from Q4?

因此，從本質上講，混合情況有所改善，Max，這就是假設，就像是什麼推動了第四季度的提升一樣？

Yes. I think, from Q4 to Q1, it's relatively similar. We're expecting kind of a similar mix dynamic from Q4 to Q1. As the rest of the year progresses, it is mostly a volume leverage story as opposed to a massive change in mix dynamics.

是的。我認為，從Q4到Q1，它是比較相似的。我們預計第四季到第一季會出現類似的混合動態。隨著今年剩餘時間的進展，這主要是一個成交量槓桿的故事，而不是組合動態的巨大變化。

The next question today comes from the line of Dan Brennan from TD Cowen.

今天的下一個問題來自 TD Cowen 的 Dan Brennan。

So ImmunoDx, another solid quarter in the year. Can you just give us a sense of kind of what's driving the strong growth? And like what's the range of outcomes we can expect for '24?

因此，ImmunoDx 是今年又一個表現強勁的季度。您能否讓我們了解一下推動強勁成長的因素是什麼？我們對 24 世紀的預期結果有哪些？

Dan, I think, again, as I've talked about earlier, it is the differentiated portfolio of the high-end EUROIMMUN test that we have in China that allows us to be in the face of limited competition that we see in that marketplace. And that has -- innovation pipeline has worked for us, and we expect that to continue as we look forward.

Dan，我想，正如我之前談到的，我們在中國擁有的高端 EUROIMMUN 測試的差異化產品組合使我們能夠面對我們在該市場看到的有限競爭。這已經——創新管道對我們發揮了作用，我們預計這種情況將繼續下去。

Got it. Okay. Maybe on pharma. I know you kind of talked about it throughout a little bit, but it was a key drag in Q3. You guys talked about instruments still under pressure here, maybe from a post-COVID high. Just can you speak to some of your discussions with pharma, what do we expect this year? Just kind of any more color on kind of what you're hearing there.

知道了。好的。也許是在藥品上。我知道你在整個過程中都談到了這一點，但這是第三季的一個關鍵拖累。你們談到這裡的工具仍然面臨壓力，可能來自新冠疫情後的高點。您能否談談您與製藥公司的一些討論，我們今年的預期是什麼？只是對你所聽到的內容有更多的色彩。

Yes, Dan. I think, on the instrument side or on the capital side, I think we will continue to see some pressure or at least the current trend, we expect it to continue in the first half of the year. The benefit, again, that allows us is that the reagent side of the portfolio, once that starts stabilizing and coming up in the second half of the year, at least that's what the assumption that we have in our current forecast allows us to that confidence that we would look. Overall, as we see pharma, I continue to believe that this is a temporary trough in the marketplace, and then, I think, it will continue -- it will come back to what we have seen is normal pattern of mid-single-digit growth in the market over the past several years.

是的，丹。我認為，在工具方面或資本方面，我認為我們將繼續看到一些壓力或至少目前的趨勢，我們預計它將在上半年持續下去。再次，這給我們帶來的好處是，投資組合的試劑方面，一旦開始穩定並在今年下半年出現，至少這就是我們當前預測中的假設使我們有信心我們會看的。總的來說，正如我們所看到的製藥業，我仍然相信這是市場的暫時低谷，然後我認為它將繼續下去——它將回到我們所看到的中個位數的正常模式過去幾年市場的成長。

The next question today comes from the line of Eve Burstein from Bernstein Research.

今天的下一個問題來自伯恩斯坦研究中心的伊芙‧伯斯坦 (Eve Burstein)。

First one, you said that you've already taken structural cost measures so far this year and you'll be taking additional cost actions in '24, can you just give us some more color on what those actions are? And what's giving you confidence in the ability to achieve those benefits in this time frame?

首先，您說今年到目前為止您已經採取了結構性成本措施，並且您將在 24 年採取額外的成本行動，您能給我們更多關於這些行動的信息嗎？是什麼讓您對在這段時間內實現這些收益的能力充滿信心？

Yes. So from a structural cost action perspective, the easiest way to think about it is really just rightsizing the company, given all of the transformation, whether that's the integration of the acquisitions, which I mentioned we're still what we would consider in the early to mid-innings from a process standpoint. And then it's working our way through the stranded costs from the divestiture. So that's really what's driving the structural cost actions.

是的。因此，從結構性成本行動的角度來看，考慮到所有轉型，最簡單的考慮方法實際上就是對公司進行規模調整，無論是收購的整合，我提到過，我們仍然會在早期考慮這一點。從流程的角度來看，到了中局。然後我們正在努力解決剝離帶來的擱淺成本。所以這確實是推動結構性成本行動的原因。

In terms of the confidence, those actions have already been taken place and communicated. There's a little bit of timing in terms of when the actual cost comes out throughout the course of the year, but those actions have more or less already been executed and it's just a matter of timing at this point. So we have, I would say, a high degree of confidence in those for this year.

就信心而言，這些行動已經採取並進行了溝通。全年實際成本何時公佈存在一些時間安排，但這些行動或多或少已經執行，目前只是時間問題。因此，我想說，我們對今年的工作充滿信心。

Great. And then you just talked about integration of your acquisitions. You said it's still early to mid-innings. But you also shared an example of how you brought BioLegend, together with other parts of your business, to do something really cool. Where are you really against your synergy target of $100 million in year 5? You're 2/5 of the year, 2/5 of the way through. Where would you put yourself on that scale?

偉大的。然後您剛剛談到了收購的整合。你說現在還早到中局。但您也分享了一個例子，說明您如何將 BioLegend 與您業務的其他部門一起做一些非常酷的事情。對於第 5 年 1 億美元的協同目標，您的實際進展如何？你已經完成了一年的 2/5，已經完成了 2/5。在這個尺度上你會把自己放在什麼位置？

Yes, I'm not -- I don't think I'm going to quantify as to what's the dollar amount of how much synergies we are seeing. The intent of what we provided as an example is how we are starting to see not just commercial synergies from the full portfolio, but also operational and technological synergies. I think, as Max said, I would say we are still in the early to mid-innings of the opportunities that we see from integration of the acquisitions. Keep in mind, 2 of our acquisitions, BioLegend and EUROIMMUN are 2 of our strongest and fastest-growing businesses. And then I think the opportunities that they provide are crown jewels in our portfolio and we expect them to continue to perform well. Our intent is how do we support those businesses and how do we leverage the opportunities that we see across the portfolio with them?

是的，我不會——我認為我不會量化我們所看到的協同效應的金額是多少。我們提供的範例的目的是我們如何開始不僅看到整個產品組合的商業協同效應，而且還看到營運和技術協同效應。我認為，正如馬克斯所說，我們仍處於收購整合中看到的機會的早期到中期。請記住，我們的兩項收購，BioLegend 和 EUROIMMUN 是我們最強大、成長最快的兩項業務。然後我認為他們提供的機會是我們投資組合中皇冠上的寶石，我們期望他們繼續表現良好。我們的目的是如何支持這些企業以及如何利用我們在與他們的投資組合中看到的機會？

Our final question today comes from the line of Luke Sergott from Barclays.

我們今天的最後一個問題來自巴克萊銀行的 Luke Sergott。

So real quick on the 1Q margin target. You said like a few hundred basis points lower than your full year. So I assume that's around like 25%. Can you talk about, even though the growth and everything looks a little bit like 4Q, can you just talk about what's really driving that decel and then kind of where you're going to get the margin uplift throughout the year on that steep ramp?

第一季的利潤目標很快就實現了。你說比全年低幾百個基點。所以我認為這個比例大約是 25%。您能否談談，儘管成長和一切看起來有點像第四季度，您能談談真正推動這種減速的因素是什麼，然後您將在全年中以陡峭的坡度獲得利潤率提升嗎？

Yes, Luke. So I think maybe just let's tackle the margin question first as you kind of led with that. So look, I don't think your math is that far off from Q1 and I think we've given you the pieces below the line in Q1 that you're going to get to roughly that number. As you look at comparing that to Q4, I would say the 2 main -- really the main driver of that is just a volume step-down from a top line perspective. If you look at the actual overall gross margin percentage, it's roughly flat quarter-over-quarter. OpEx costs are similarly in line quarter-over-quarter. And so, from that standpoint, I don't think really much has changed. Again, as you then look at the volume ramp over the remainder of the year, as we mentioned, one, you're going to have the timing of the structural cost actions coming in into play. And the second piece is you're going to have volume leverage as the year builds. So that's how I would think about it from a margin perspective.

是的，盧克。所以我想也許讓我們先解決保證金問題，因為你有點主導這個問題。所以看，我不認為你的數學與第一季相差那麼遠，我認為我們已經給了你第一季線以下的部分，你將大致得到這個數字。當你將其與第四季度進行比較時，我會說第二個主要因素 - 實際上主要驅動因素只是從營收角度來看銷量下降。如果你看一下實際的整體毛利率百分比，你會發現它與上一季相比大致持平。營運支出成本與上一季的情況類似。因此，從這個角度來看，我認為並沒有太大變化。同樣，當您查看今年剩餘時間內的銷售成長時，正如我們所提到的，第一，您將看到結構性成本行動發揮作用的時機。第二點是，隨著時間的推移，你將擁有數量槓桿。這就是我從利潤角度考慮的方式。

In terms of the slowdown from an organic growth perspective between Q4 to Q1, I think we've mentioned part of that is definitely comp-driven. And the biggest piece of that is going to be the immunodiagnostics business outside of China. Outside of China in the first half last year, immunodiagnostics grew in the high teens. We've always said it should be sort of a low double digit and so there is just some normalization there on a 2-year stack for our immunodiagnostics business outside of China.

就第四季度到第一季有機成長的放緩而言，我認為我們已經提到其中一部分肯定是由競爭驅動的。其中最大的部分將是中國以外的免疫診斷業務。去年上半年，在中國以外的地區，免疫診斷的成長達到了十幾歲。我們一直說它應該是一個較低的兩位數，因此我們在中國以外的免疫診斷業務的兩年堆疊中只有一些正常化。

Great. I was just referring to the 4Q to 1Q kind of just the similar -- you have a pretty steep decline there on the margin. I got the core commentary. And then, I guess, on the software piece, you guys have talked about converting a lot of these customers more to SaaS based, and that's kind of aiming to reduce the lumpiness in the orders, and talk about the progress that you're seeing there. And then on the non-SaaS piece, can you talk about what the orders look like and if they're inflecting because, as you talked -- gave that 2% framework prior, you were talking about just if software is not a headwind next year or the way that the contracts come and that will just be at least 100 basis points of lift.

偉大的。我只是指第四季到第一季的情況類似——邊際下降相當陡峭。我得到了核心評論。然後，我想，在軟體方面，你們已經討論過將很多這些客戶更多地轉換為基於 SaaS 的產品，其目的是減少訂單的混亂程度，並討論你們所看到的進展那裡。然後在非 SaaS 部分，您能談談訂單是什麼樣子的嗎？它們是否會發生變化，因為正如您所說 - 之前給出了 2％ 的框架，您正在談論軟體是否接下來會成為逆風或合同簽訂的方式，這將至少帶來100 個基點的提升。

Yes. So I'll maybe start with your second question first, Luke. So as I mentioned, software business was down high single digits in '23. It should be moving to up high single digits, that's what's assumed in our guidance here for '24 that is roughly 125 basis points of the overall company from an organic growth perspective. And so as you look at that dynamic, it's really driven by this contract renewals. Again, that's a business that has upper-90s-percent renewal rate. And so most of the contracts we know they're coming due, and I would say, have a high degree of confidence in our ability to deliver on our '24 expectations.

是的。所以我可能會先回答你的第二個問題，盧克。正如我所提到的，軟體業務在 23 年出現了高個位數的下降。它應該會上升到高個位數，這是我們在 24 年的指導下所假設的，從有機成長的角度來看，整個公司的成長大約是 125 個基點。因此，當你觀察這種動態時，你會發現它實際上是由合約續約推動的。同樣，該業務的續訂率高達 90% 以上。因此，我們所知道的大多數合約即將到期，我想說的是，我們對實現 24 年期望的能力充滿信心。

And then to your first question on sort of the SaaS transition, I think we continue to make really good progress. We view the transition to SaaS is actually a differentiator for us versus our peers. We believe we are ahead of them in terms of that transition. And so, although that might create a little bit of noise from a revenue recognition standpoint, it is the right thing to do for the business and we think our SaaS products are going to help us actually take share from our competition.

關於您關於 SaaS 轉型的第一個問題，我認為我們繼續取得非常好的進展。我們認為，向 SaaS 的過渡實際上是我們與同行的區別所在。我們相信，在這轉變方面，我們領先他們。因此，儘管從收入確認的角度來看，這可能會產生一些噪音，但這對企業來說是正確的事情，我們認為我們的 SaaS 產品將幫助我們真正從競爭對手中奪取份額。

Yes. And look, in the longer term, it definitely help us increase revenue and reduce our volatility for that business, which I think is another one of the opportunities that the software business provides us from a differentiation perspective.

是的。從長遠來看，它肯定有助於我們增加收入並減少該業務的波動性，我認為這是軟體業務從差異化角度為我們提供的另一個機會。

This concludes today's question-and-answer session. I'd like to pass the call back over to Steve Willoughby for any closing remarks.

今天的問答環節到此結束。我想將電話轉回給史蒂夫·威洛比，讓他作結束語。

Thank you. Thanks for your interest and questions today, and we look forward to further discussions over the coming weeks. Have a good day. Bye-bye.

謝謝。感謝您今天的興趣和提問，我們期待在未來幾週內進行進一步討論。祝你有美好的一天。再見。

This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家的參與。現在您可以斷開線路。