IDEXX (IDXX) Unveils Pet Owner Engagement Software Solution
IDEXX Laboratories, Inc. IDXX launched Vello — a software solution that seamlessly connects veterinary practices and clients through modern digital tools. IDEXX's Vello solution will be available as a new subscription service for ezyVet, Neo, and Cornerstone software in the United States in March 2024 and Canada in the second quarter, respectively.
The recent development will bolster IDEXX’s Companion Animal Group business.
More on the New Launch
Vello is the first pet owner engagement solution explicitly designed for IDEXX practice management software, which allows veterinary offices employing ezyVet, Neo, and Cornerstone software to communicate with pet owners in a unified, user-friendly platform. With software-supported participation throughout a pet's life cycle, owners become knowledgeable partners in care, resulting in better health outcomes.
The Vello solution includes a robust multi-year roadmap, with automated appointment reminders and confirmations that reduce no-shows and save valuable time for teams. The software also includes an online scheduling option that allows pet owners to conveniently request appointments directly from health service reminders or through the Vello software.
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Vello software also allows for two-way texting that enables immediate connection with pet owners, automatically updating the patient record and communication log without character count limitations or extra fees.
Significance of Vello Software
Veterinary clinic productivity is still a primary concern, and IDEXX is committed to providing cloud-based software that boosts productivity. By handling pet-owner interactions within their current practice management, the software can save time and improve pet care.
Vello software is an intuitive solution designed specifically for practice management software that enables practitioners to interact with pet owners before and after visits. By implementing the Vello solution, the company will also strengthen client relationships.
Vello streamlines IDEXX’s client interactions by automating repetitive administrative tasks, saving the company’s team hours each week and resulting in a notable decrease in no-shows and cancellations.
Industry Prospects
Per a report by Grand View Research, the global veterinary software market size was estimated at $847.5 million in 2022 and is expected to witness a CAGR of 8.2% from 2023 to 2030. The rising awareness regarding the benefits of the use of software solutions and an increasing number of clinical visits by pet owners are expected to boost the adoption of software solutions in veterinary practices.
IDEXX Progress With Software Solutions
IDEXX cloud-based products, including ezyVet and NEO PIMS (practice information management systems) and Web PACS's imaging software, continue to be in high demand as a response to this trend. PIMS placements continued to be driven by an interest in cloud-native products, representing more than 90% of placements in the fourth quarter of 2023.
Another notable software offering includes an integrated diagnostics portal, VetConnect PLUS with IDEXX DecisionIQ, which provides not only testing results but also decision support, clinical insights and next-step considerations across a growing range of clinical use cases. The company’s cloud-native workflow engine for digital imaging, IDEXX Web PACS, is generating strong subscriber growth.
The company’s software innovation is deeply integrated with its approaches to diagnostics innovations, as evidenced by its highly-successful instrument platform strategy, which is enabled by cloud-based capabilities and connectivity that enhance practice insight and workflow.
Price Performance
In the past year, shares of IDEXX have gained 14.6% compared with the industry’s 6.6% growth.
Zacks Rank and Key Picks
IDXX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Stryker Corporation SYK, Cencora, Inc. COR and Cardinal Health CAH.
Stryker, carrying a Zacks Rank #2 (Buy), reported a fourth-quarter 2023 adjusted EPS of $3.46, beating the Zacks Consensus Estimate by 5.8%. Revenues of $5.8 billion outpaced the consensus estimate by 3.8%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker has an estimated earnings growth rate of 11.5% for 2025 compared with the S&P 500’s 9.9%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 5.1%.
Cencora, carrying a Zacks Rank #2, reported a first-quarter fiscal 2024 adjusted EPS of $3.28, which beat the Zacks Consensus Estimate by 14.7%. Revenues of $72.3 billion outpaced the Zacks Consensus Estimate by 5.1%.
COR has an earnings yield of 5.75% compared with the industry’s 1.85%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 6.7%.
Cardinal Health reported second-quarter fiscal 2024 adjusted earnings of $1.82, which beat the Zacks Consensus Estimate by 16.7%. Revenues of $57.45 billion increased 11.6% on a year-over-year basis and also topped the Zacks Consensus Estimate by 1.1%.
CAH has a long-term estimated earnings growth rate of 15.3% compared with the industry’s 11.8% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 15.6%.
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