CAG Diagnostics recurring revenue increased by 10.3%, indicating successful customer retention and increasing utilization of existing and new test offerings. This reflects the company's ability to generate consistent revenue streams.

Revenue from veterinary software, services, and diagnostic imaging systems increased by 11.2%, driven by subscription-based SaaS offerings. This highlights the company's focus on innovative, integrated technology solutions.

The acquisition of an international water testing company in Canada expanded the company's product offering in the Water segment. This demonstrates a proactive approach to growth through strategic acquisitions.

The company believes that building and maintaining a well-managed and disciplined infrastructure has helped minimize the impacts of supply chain constraints, including product and component availability issues, logistics challenges, and inflationary pressures.

The company's strategy focuses on providing veterinarians with high-quality diagnostic information, software products and services, and medical evidence to support advanced medical care and information management solutions.

The company provides marketing tools and customer support to drive efficiencies in veterinary practice processes and allow practices to increase the number of clients they see on a daily basis.

The company acknowledges increasing levels of competition from both existing competitors and new sector entrants, given the industry's strong growth and returns. This could negatively impact future growth and profitability.

The company relies on third-party suppliers for components, raw materials, and manufacturing, and disruptions to their operations could negatively impact the ability to supply the market, decrease sales, and lead to higher costs.

The company acknowledges the potential for AI algorithms and models to be flawed, datasets to be insufficient, and government regulation to affect AI use, which could slow adoption of AI in the company's offerings.

The company competes primarily on the basis of ease of use and speed of products, diagnostic accuracy, product quality, breadth of product line and services, differentiated product innovations, fully integrated technology, and information management capability.

The company competes with many companies ranging from large human and animal health pharmaceutical and medical diagnostics companies to small businesses focused on animal health.

The company recognizes that consolidation among competitors and customers may intensify the competition it faces.

The company aims to achieve cost improvements in its worldwide network of reference laboratories by implementing global best practices, including lean processing techniques, technological enhancements, and leveraging its global scale.

The company aims to achieve cost improvements in the manufacture and service of its in-clinic laboratory analyzers by employing the benefits of economies of scale in both negotiating supply contracts and leveraging manufacturing overhead, and by improving reliability of our instruments.

The company aims to expand, develop, and advance the productivity of its companion animal diagnostic sales, marketing, customer support, and logistics organizations in the U.S. and international regions in support of its all-direct sales strategies.

The company invested $191.0 million in research and development expenses, which consist of salaries, employee benefits, certain licensing agreements, materials and external consulting and development costs.

The company actively seeks to obtain patent protection in the U.S. and other countries for inventions covering products and technologies and also licenses patents and technologies from third parties.

Certain in-clinic analyzers, including the Catalyst One Chemistry analyzer, ProCyte One hematology analyzer, SediVue Dx analyzer, and IDEXX inVue Dx cellular analyzer, utilize proprietary artificial intelligence (“AI”) capabilities in their image capture systems to analyze samples.

The company identifies, completes, and integrates acquisitions that enhance existing businesses, create new businesses, or expand the geographic areas in which it does business.

The company believes that the repurchase of common stock is a favorable means of returning value to stockholders, and also repurchases stock to offset the dilutive effect of share-based compensation programs.

The company may enter into new financing arrangements or refinance or retire existing debt in the future depending on market conditions, and could elect to raise capital in the U.S. through the incurrence of debt or equity issuances.

The company strives to reduce its environmental footprint and has developed and is implementing a greenhouse gas emissions reduction strategy.

The company aims to attract, motivate, develop, and retain talented employees at all levels who are aligned with and passionate about our Purpose by building and sustaining an inclusive, ethical culture that values diversity, equity, and inclusion.

Ensuring the health, safety, and well-being of our employees is a top priority at IDEXX. We provide our employees with the training, tools, and resources they need to safeguard their health and we empower them to put safety first.

Global trends in companion animal healthcare, including growth in demand for clinical services, continue to support solid growth for companion animal diagnostic products and services across regions.

Economic weakness in any of our significant geographies could cause pet owners in those regions to forgo or defer visits to veterinary hospitals or affect their willingness to approve certain diagnostic tests, comply with a treatment plan or, even more fundamentally, continue to own a pet.

The overall financial performance of our business may be impacted by geopolitical instability and macroeconomic conditions, including the effects of conflicts between Russia and Ukraine, tensions across the Taiwan Strait, the Israel-Hamas conflict, as well as other conflicts in the Middle East, and resulting uncertainty in the markets, volatility in exchange rates, and inflationary trends.