Specialist
Former sales manager at Idexx Laboratories Inc
Agenda
- Veterinary software sector overview, highlighting competitive dynamics between cloud-based and legacy players
- Coronavirus impact on uptake trends and future growth expectations
- Use case differences between consolidators and independent practices
- Sector M&A expectations and room for additional roll-up consolidation
- 2021 outlook
Questions
1.
What industry shifts or developments have you noticed over the last 6-12 months? Can you expand on some of the considerations around telehealth?
2.
You mentioned staffing constraints, which has been a longer-term issue in the veterinary market. What software developments might aid some of those concerns?
3.
I have heard of veterinarians being more efficient with teletriage and telehealth, but also in the curbside model you mentioned. What improvements have you noticed so far? What is your longer-term outlook for some of the labour constraints?
4.
How would you segment the industry into its key competitors in PiMS [practice information management system] and imaging systems? How do they compare on revenue and growth?
5.
How would you characterise some of the smaller players you alluded to? You mentioned that there is no desire to switch from a provider, but are any players starting to compete for the same new clients?
6.
Could you outline the key competitors in the chartless and paperless sub segment?
7.
You mentioned that Avimark customers are mostly complacent and they don’t want to switch, but there are concerns when there are 30-plus terminals in a hospital. Who might take some of that market share if clients decide to switch to another provider?
8.
Could you expand on the wellness-plan segment? How do you expect it to grow? What is its overall market opportunity?
9.
Can you outline the options in Idexx’s portfolio, including the target customer for each option? How well are these being received by the industry?
10.
Could you provide a similar overview for Covetrus and its portfolio?
11.
How do larger players such as Idexx and Covetrus monetise software, particularly considering their other service and product offerings? To what extent is software given for free to other clients vs monetised? How might smaller, niche players impact that dynamic?
12.
Do you expect any significant M&A in the reference-laboratory market, considering Idexx’s clear advantage and Zoetis’ attempts to expand its footing? Could Zoetis look to offer a software option given this is one of Idexx’s biggest draws in the reference laboratory segment? Might Mars’ Antech look to strengthen its offering?
13.
Could you elaborate on WoofWare, Mars’ software offering? How would you evaluate the company’s software, given the mixed reviews on its success?
14.
What are the CAPEX concerns for Zoetis or other players in the PiMS market who are developing their software offering in-house vs pursuing M&A?
15.
Can you expand on the concerns around cloud? How have the industry’s cloud capabilities evolved? How has the cloud vs non-cloud discussion progressed?
16.
What do you think is the path forward for Idexx and Covetrus, given you suggested they could acquire more PiMS providers? Would any particular players make likely acquisition targets?
17.
You mentioned Idexx and Covetrus following the EzyVet route, so they won’t have to develop core PiMS jobs themselves. What CAPEX would be required to in-house that work in the near term?
18.
Could you elaborate on EzyVet’s success with universities? Are any other players trying to mimic that strategy?
19.
What is your outlook for EzyVet? Could it be acquired? Will it remain as a strong standalone player in the long term?
20.
EzyVet’s growth runway clearly involves going after accounts that will potentially lead to greater revenue, such as the university opportunity you referenced. How do Idexx, Covetrus and other larger players’ strategies compare? Are they doing enough to drive long term demand?
21.
You mentioned Zoetis potentially entering the PiMS market, but are there any other potential new entrants? Are there any central competitors that would be interested, particularly with Covetrus being on the distribution side vs Idexx on the diagnostic side?
22.
How do you assess Chewy’s entry into the vet-prescription market and prescription-fulfilment services? Has it taken market share from any PiMS players?
23.
What are your expectations for Chewy in the software market? Do you think the telehealth offering puts it in a strong position to enter other verticals?
24.
Do you think PetSmart’s potential plan to have in-store clinics will resonate with pet parents? Do you think this could get it into the clinical market? I’ve heard mixed feedback around pet parents wanting to see the same veterinarian, as well as potential staffing difficulties.
25.
Is there anything about the veterinary software or animal-health market that we didn’t discuss that you think would be important to highlight?
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