Third Quarter 2023 Financial Results
Bruker’s revenues for the third quarter of 2023 were $742.8 million, an increase of 16.3% compared to $638.9 million in the third quarter of 2022. In the third quarter of 2023, revenues increased 10.9% organically year-over-year. Growth from acquisitions was 2.1%, while foreign currency translation had a positive effect of 3.3%.
Third quarter 2023 Bruker Scientific Instruments (BSI) revenues of $676.3 million increased 16.1% year-over-year, with organic revenue growth of 10.9%. Third quarter 2023 Bruker Energy & Supercon Technologies (BEST) revenues of $70.6 million increased 19.1% year-over-year, with organic revenue growth, net of intercompany eliminations, of 10.2%.
Third quarter 2023 GAAP operating income was $124.5 million, a decrease of 5.2% compared to $131.3 million in the third quarter of 2022, representing GAAP operating margins of 16.8% and 20.6%, respectively. Non-GAAP operating income was $148.3 million in the third quarter of 2023, an increase of 3.6% compared to $143.2 million in the third quarter of 2022. Bruker’s third quarter 2023 non-GAAP operating margin was 20.0%, down 240 basis points from 22.4% in the third quarter of 2022.
Third quarter 2023 GAAP diluted earnings per share (EPS) were $0.60, compared to $0.59 in the third quarter of 2022. Third quarter 2023 non-GAAP diluted EPS were $0.74, an increase of 12.1% compared to $0.66 in the third quarter of 2022.
First Nine Months of 2023 Financial Results
For the first nine months of 2023, Bruker’s revenues were $2.11 billion, an increase of 15.8% from $1.82 billion in the first nine months of 2022. In the first nine months of 2023, revenues increased 13.9% organically year-over-year. Growth from acquisitions was 2.0%, while foreign currency translation had a negative effect of 0.1%.
In the first nine months of 2023, BSI revenues of $1.92 billion increased 15.9% year-over-year, with organic growth of 14.0%. First nine months 2023 BEST revenues of $205.5 million increased 15.3% year-over-year, with organic revenue growth, net of intercompany eliminations, of 12.8%.
In the first nine months of 2023, GAAP operating income was $333.4 million, compared to $301.7 million in the first nine months of 2022, representing GAAP operating margins of 15.8% and 16.6%, respectively. Non-GAAP operating income in the first nine months of 2023 was $391.8 million, up 9.8% compared to $356.7 million in the first nine months of 2022. Bruker’s non-GAAP operating margin in the first nine months of 2023 was 18.6%, a decrease of 100 bps compared to 19.6% in the first nine months of 2022.
First nine months of 2023 GAAP diluted EPS was $1.50, compared to $1.33 in the first nine months of 2022. First nine months of 2023 non-GAAP diluted EPS was $1.88, up 17.5% compared to $1.60 in the first nine months of 2022.
Return on invested capital (ROIC), a non-GAAP measure, was 23.2% for the trailing twelve months ended September 30, 2023, compared to 24.6% for the trailing twelve months ended September 30, 2022.
A reconciliation of non-GAAP to GAAP financial measures is provided in the tables accompanying this press release.
Frank H. Laukien, Bruker’s President and CEO, commented: “Bruker continues to deliver excellent growth, with three consecutive quarters of double-digit organic revenue growth year-to-date in 2023. We anticipate high-single digit organic revenue growth in the fourth quarter of 2023, which puts us on track for three consecutive years of double-digit organic revenue growth in 2021-2023. This year, Bruker has demonstrated great resiliency in difficult market conditions, with industry-leading organic revenue growth of 13.9%, and non-GAAP EPS growth of 17.5% in the first nine months of 2023. Given our strong year-to-date financial results, solid backlog, and positive outlook for the fourth quarter, we are raising our organic revenue growth guidance for FY 2023 again, by 150 bps at the midpoint.”
Dr. Laukien continued: “We are very pleased with the early October acquisition of our new Cellular Analysis business, formerly known as PhenomeX. Our Cellular Analysis business is a leader in single-cell biology solutions, for advanced antibody and stable cell line development in support of biologics and cell & gene therapy in the biopharmaceutical industry, as well as for clinical oncology research in major cancer centers.”
Fiscal Year 2023 Outlook
For FY 2023, Bruker is increasing revenue guidance to a range of $2.88-$2.91 billion, up from prior outlook of $2.85-$2.90 billion. Bruker’s updated revenue guidance implies 14%-15% year-over-year reported revenue growth, up from prior guidance of 12.5%-14.5%, including contributions from:
- Organic revenue growth of 11.5%-12.5%, up 150 basis points (bps) at the midpoint from prior outlook of 9.5%-11.5%,
- M&A revenue growth contribution of ~2.5%, up from prior guidance of ~2%, largely due to expected fourth quarter 2023 revenue from the Cellular Analysis business acquired on October 2, 2023,
- Constant currency (CC) revenue growth of 14%-15%, up from prior guidance of 11.5%-13.5%, and
- Foreign currency translation impact on revenue now neutral, vs. prior guidance of a 1% tailwind.
Bruker now expects FY 2023 non-GAAP EPS of $2.48-$2.53, or 6%-8% year-over-year growth. Our updated non-GAAP EPS guidance reflects a $0.05 expected increase from the core business, more than offset by a ~$0.12 negative impact from the Cellular Analysis business in the fourth quarter of 2023, resulting overall in a $0.07 decrease from prior FY 2023 guidance. Bruker is rapidly right-sizing the Cellular Analysis cost structure, with the expectation that it will be slightly dilutive in FY 2024, and accretive to our non-GAAP EPS by FY 2026. Excluding Cellular Analysis, Bruker’s updated FY 2023 guidance implies 11%-13% non-GAAP EPS growth year-over-year, up from prior guidance of 9%-11%.
Bruker’s revenue and non-GAAP EPS guidance are based on foreign exchange rates as of September 30, 2023.
For the Company’s outlook for FY 2023 organic revenue growth, M&A revenue growth, constant currency revenue growth, and non-GAAP EPS, we are not able to provide without unreasonable effort the most directly comparable GAAP financial measures, or reconciliations to such GAAP financial measures on a forward-looking basis. Please see “Use of Non-GAAP Financial Measures” below for a description of items excluded from our expected non-GAAP EPS. Furthermore, we define “core” as excluding Bruker Cellular Analysis business, formerly known as PhenomeX.
About Bruker Corporation (Nasdaq: BRKR)
Bruker is enabling scientists to make breakthrough discoveries and develop new applications that improve the quality of human life. Bruker’s high performance scientific instruments and high value analytical and diagnostic solutions enable scientists to explore life and materials at molecular, cellular, and microscopic levels. In close cooperation with our customers, Bruker is enabling innovation, improved productivity, and customer success in life-science molecular and cell biology research, in applied and pharma applications, in microscopy and nanoanalysis, as well as in industrial research, semiconductor metrology and cleantech applications. Bruker offers differentiated, high-value life science and diagnostics systems and solutions in preclinical imaging, clinical phenomics research, proteomics and multiomics, spatial and single-cell biology, functional structural and condensate biology, as well as in clinical microbiology and molecular diagnostics. For more information, please visit: www.bruker.com.