Good morning. Welcome to IDEXX's 2021 virtual Investor Day. We're hopeful that next year we'll once again be able to host investors at our world headquarters campus in Maine. I know many of you look forward to this annual event, including feasting on local lobster. I'm Jay Mazelsky, President and CEO of IDEXX, and I'd like to welcome everybody participating to the webcast. Today's event should last approximately 2.5 hours. The first two hours or so will be prepared remarks and presentation materials, including an overview with a veterinarian practicing in Spain to highlight the international perspective. Following a brief break, we'll open the session to live questions. I'm pleased to be joined this morning by members of our management team who will highlight selected topics. I'll begin with a review of the IDEXX opportunity and strategy. Kerry Bennett, Senior Vice President, who leads Corporate Strategy and Advanced Analytics, and who many of you know from her time leading Investor Relations, will provide an overview of companion animal sector trends. Dr. Tina Hunt, Executive Vice President, who has responsibility for our global Point-of-Care Diagnostics business and operations, will highlight our industry-leading in-clinic diagnostic capabilities and opportunities. Mike Lane, Executive Vice President, who has overall responsibility for our global Reference Laboratories business, telemedicine, and the IT group, will talk about the expanding breadth and scale of our global Reference Laboratories diagnostics and consulting services. Jim Polowczyk, the Executive Vice President in charge of the global commercial organization, will talk about our CAG commercial strategy and significant international opportunities. Michael Schreck, Senior Vice President, who has now been with IDEXX for a bit over a year, will speak to our software strategy and the significant opportunity we see to help our customers be more productive. Following our review of the IDEXX opportunity and strategy, Andrea Ucci, Senior Vice President and General Manager of our Companion Animal Group in Europe, will lead a discussion with Dr. Pilar Cifra, founder of a veterinary clinic near Madrid, Spain. We thank Dr. Cifra for taking time from her busy schedule to share her perspectives on the role of diagnostics in her practice and how IDEXX partners with her team. We'll finish with the financial review led by Brian McKeon, our Chief Financial Officer. As a reminder, our safe harbor disclaimer is available on our website. With that, let's get started. Today, we'll spend time framing the enduring growth opportunity we see for IDEXX enabled by our long-term growth strategy. Companion animal healthcare strategy to grow it through innovation, insight, and focused engagement will be the cornerstone of our review today. We've updated our TAM analysis and now see $37 billion in addressable global diagnostics revenue opportunity for companion animals. Our initiatives to advance the standard of care are led by delivering best-in-class innovations. We offer differentiated, fully integrated in-clinic reference laboratory testing, consulting services, and software solutions that are enabled by data and insight. IDEXX solutions provide veterinarians with the broadest, most differentiated menu of diagnostic tools while allowing them the flexibility to test using the modality that best meets their clinical needs. We deliver these innovations through our direct commercial model. This approach engages customers in a way that consistently helps them grow faster as they adopt the benefits of IDEXX innovations and expand diagnostic utilization. Today, we'll highlight our efforts to drive high international growth through expanded capabilities. We believe consistent execution of our focused business strategy can enable delivery of continued 10%+ organic growth with high returns for investors. Let me begin with a review of our recent performance and strong trends as a foundation for our optimism. The strategy we've pursued has yielded outstanding financial results in terms of consistently high revenue growth and return on invested capital. We've achieved an 11% annual growth over the past five-year period aligned with our long-term goals. This represents approximately 300 basis points growth acceleration from the prior five-year period, reflecting the successful commercialization of diagnostic innovations and software solutions. This has been supported by highly successful U.S. and international go-direct initiatives, expansion of our veterinary diagnostics consultant relationships, and the global rollout of multi-modality merchandising through programs such as IDEXX 360. The profitable flow-through of revenues aligned with our innovation-driven strategy has resulted in a 55% ROIC. These high returns have been driven by the financial engine of our business model, expanding CAG Diagnostics revenues. Growth in these enduring revenues accelerated from approximately 9% in the 2010-2015 period as we emerged from the Great Recession to 13% over the last five years. These accelerated gains were achieved across the U.S. and international countries, enabled by major technology platform and testing advancements and expansion of our direct commercial presence. CAG Diagnostics recurring revenues reached 78% of total IDEXX revenues in 2020 as we continue to increase the already exceptional retention levels and increase satisfaction of our products and services. We expand recurring revenues, these drive faster profit growth, which has supported consistently strong operational margin gains and accelerated 27% comparable EPS growth, well ahead of our long-term goals. We'll discuss today, we believe we're well-positioned to build on this momentum. The resilience of our industry and demand for CAG Diagnostics has been demonstrated through the pandemic. In fact, we've seen an acceleration of growth rates during the past 4 quarters, rebounding from the initial waves of the lockdown. A key metric we've highlighted as we work through the pandemic growth dynamics is our two-year average annual growth rate, which accelerated in the second half of 2020 and sustained at over 16% in the first half of 2021, with high gains across U.S. and international countries. This accelerated growth has been driven by several factors. Deepened pet owner bond during the pandemic. Growth in pet population equal to +6% in the U.S. versus more typically a 1% yearly gain, a net gain of 10 million additions. Favorable demographics with more young first-time pet owners. Ease of visiting veterinarians during work from home and curbside protocols, and clinician focus on delivering a higher standard of care and on services offered within a clinic. This acceleration of growth reinforces our confidence in our long-term growth strategy and points to potentially sustained tailwinds that support higher long-term companion animal healthcare growth. As we expand our business, we're also expanding our commitment to our customers, employees, and the communities we serve. IDEXX is a purpose-driven organization dedicated to enhancing the health and well-being of pets, people, and livestock. This is evident in our daily jobs, where IDEXXers around the world work to improve animal health, develop tests for public drinking water and milk, or help to combat African swine fever in China. This shared purpose permeates our culture. Consistent with this purpose, we've advanced key initiatives that make significant positive social impact. These included a landmark initiative with Tuskegee University College of Veterinary Medicine to advance diversity, partnerships with leading organizations to expand access to veterinary care in underserved communities, and investments to address water quality, impacts of climate change, and food insecurity. We look forward to building on this progress, aligned with our long-term growth strategy. As we look to our long-term growth potential, we see IDEXX with a decades-long high organic growth opportunity. This is reflected in the $37 billion global TAM in the companion animal diagnostic space based on significant opportunities to advance the standard of care in all major regions. The foundation of these estimates is to expand diagnostics testing utilization, which is still significantly underdeveloped in the U.S. and even less developed in international countries. For those of you less familiar with our TAM buildup, let me quickly describe the underlying assumptions. Using the U.S. as a base, we took current levels of wellness and non-wellness visits and relying on existing clinical standards and best practice benchmarks, estimated the number of visits that should include a diagnostics test. We applied a reasonable manufacturer-level revenue estimate, $60-$65 for wellness diagnostics and $105-$110 for non-wellness diagnostics per visit. Looking at the U.S., our 30+ years of development efforts have resulted in higher standards of care, as reflected in an average of 18% of clinical visits, including blood work, defined as a chemistry and/or hematology panel. We know, however, that this is well below recommended standards and currently achieved customer benchmarks. With a 23% served TAM, there's still a long runway to significantly expand the frequency and utilization of diagnostics in the U.S., even though it's the world's most developed. For international countries, we leveraged our U.S. benchmarks to estimate the opportunity with some adjustments for visit mix. The long-term opportunity is even greater. International countries have significantly greater number of household-owned pets and high levels of pet spending on other categories, but still relatively low 7% average utilization levels in diagnostics. This points to the potential for very compelling growth opportunity internationally. Jim will later discuss our approach to raise benchmark testing levels through the application of our U.S. commercial playbook. No matter how you look at it, U.S. and international, wellness and non-wellness, there's a ton of opportunity with less than 15% of the potential $37 billion TAM served today. Let's now talk about factors that reinforce the long-term growth opportunity we see. The pandemic has reinforced our optimism about the future potential opportunity, highlighted by the resilience of customers. IDEXX's U.S. CAG Diagnostics recurring revenues have sustained high accelerated growth for the last several quarters, reflecting strong clinical visit growth and an expanded premium to this growth. We've known for some time that the companion animal healthcare sector is extremely resilient, and companion animal diagnostics even more so, with growth at a healthy premium to personal consumption expenditure. If you recall, our CAG business grew 5% organically, even in the depths of the Great Recession in 2008. The resilience of pet healthcare was even more robust during the pandemic, which is still ongoing, with veterinary practice revenues quickly recovering and then accelerating as clinics adapted to new protocols and families added and prioritized care for their pets. Another factor that reinforces the long-term pet healthcare potential is the ongoing and accelerated adoption of diagnostics as a standard of care. To best assess the health status of the patient or treat for disease, the veterinarian must often first diagnose through blood work. As noted, a core metric that we track is the percentage of U.S. clinical visits which include blood work. For this analysis, we define blood work as visits including a chemistry and/or hematology panel. In 2020, the pecentage of U.S. clinical visits with blood work increased approximately percent to 18%, double the historical rate of annual increase. There were gains across both non-wellness and wellness visits as clinicians focused on providing a higher standard of care, and pet owners were receptive to the recommendation. We're also seeing benefits from our commercial efforts as we seek to inspire clinicians to increase utilization of diagnostics through the cumulative impact of IDEXX innovation, medical messaging, and programs such as Turnkey Preventive Care Initiative. We know that as customers test more, it leads to more diagnostics testing across modalities. Chemistry and hematology are frequently run together to provide the most complete view of the patient. Looking at these two key testing categories by modality, we see practices with higher blood work utilization in-house also have higher utilization at reference labs. This highlights those clinics who have fully embraced diagnostics into their protocols, see high levels of testing across modalities with reference lab testing often used for wellness panels, for example, and in-clinic testing ideal for sick patient visits where results during the patient visit window are actionable. This data also suggests testing begets testing, with initial testing driving specialty or follow-up testing, which may span modalities. Another factor reinforcing the TAM opportunity is not only the meaningful long-term opportunity in the U.S., but the broad expanse of countries where diagnostics are still too infrequently used. Looking across the largest 14 countries in terms of total companion animal diagnostics revenue, we see a wide range of standard of care. With the U.S. having the highest average diagnostics revenue per companion animal practice. In the U.S., diagnostics represents approximately 16% of practice revenues and an even higher percentage of practice profits. We believe diagnostics represents, on average, only about 5% of international practice revenues. Moving international countries closer to U.S. standards would enhance patient care while driving significant practice revenue and profit gains. A win-win for both the clinic and pet. Our expanded global commercial presence is designed to accelerate increased standard of care. Over time, our international commercial expansions will reduce territory sizes, allowing for increased frequency of calling efforts, driving awareness and education of the benefits of relevant diagnostics testing. The more we call on customers, the more frequently they use IDEXX diagnostics as customers come to appreciate the differentiated nature of our testing solutions. Aligned with this long-term opportunity to increase the standard of care, IDEXX's innovation plays a foundational role in bringing best-of-class technology to the veterinary clinic in service of their mission. IDEXX is truly differentiated in our ability to provide a fully integrated multi-modality diagnostics and software solution. We're a global leader for the in-clinic solutions and for reference laboratory services. We've invested in software and connectivity such as VetConnect PLUS to enhance the value and ease of diagnostics testing while driving workflow productivity benefits. Our customers appreciate the combined offering with the sum of the parts driving industry-high customer satisfaction and loyalty. Our integrated multi-modality approach allows for increased flexibility for our customers to practice the way they want. As you can see from the chart, more than half of our U.S. customers choose to partner with IDEXX for all of their diagnostics needs. This has been a consistent source of growth as we've inspired a greater portion of our customers over time to use IDEXX as their primary diagnostics provider. This has been a successful strategy defined by offering best-in-breed in each modality and a VDC model that focuses attention on growing diagnostics utilization versus advocating for a single modality. Moreover, programs such as IDEXX 360 inspire customers of our highly differentiated in-clinic solutions to also increase their reference laboratory and rapid assay testing. We believe there's a similar opportunity internationally over time as we grow our commercial footprint, global reference laboratory network, and through programs such as IDEXX 360. Our integrated approach and commercial engagement have clearly been recognized and appreciated by customers according to a third-party study. As this slide shows, our VDCs are viewed as trusted partners, helping clinics to adopt new diagnostic protocols or practice workflows to enhance productivity. This includes recent increases in second Catalyst placements to support higher levels of clinical visit growth from the expanded pet population. IDEXX has earned this high trust in many ways, including by providing exceptional support during the pandemic, providing flexibility where needed, and high product continuity and service levels during a very challenging period. These efforts have resulted in customer retention in the high nineties and industry-leading customer satisfaction levels. Long-term improvements in standard of care will be driven by our ongoing focus on innovation. Our innovation investments are focused on 4 main pillars, where we've developed strong core competencies over decades of product development. The first area is instrument platform development, where our Technology for Life strategy enables instruments that often appreciate in functionality over time. Our premium analyzers have highly differentiated capabilities coupled with world-class quality. The strength of our instrument platform development capabilities is reflected in our exceptional customer loyalty. Another area of focus is assay development, which drives new testing menu at both the reference laboratory and in clinic. New menu produces new clinical insights, which expand the care envelope and improve patient outcomes. New diagnostic tools, as SDMA and fecal antigen enable earlier or enhanced detection of underlying conditions compared to traditional means. We also have significant capability in customer-facing software and connectivity. Our cloud-based software solutions, including the recent addition of ezyVet, enable efficient practice and diagnostic workflows. Lastly, artificial intelligence and machine learning capabilities provide automated Clinical Decision Support to incredibly busy practitioners, as well as supporting a growing number of other applications, such as driving automation in our reference labs and specialty service areas. Our consistent and cumulative investment in research and development has produced a steady cadence of innovations that have been successfully commercialized. For example, in 2020 alone, we launched 6 new products and services. This capability was decades in the making and is powered by highly differentiated technology and know-how. We have an exciting pipeline of innovation ideas and projects that we believe will continue to represent first-to-market solutions on behalf of our customers to address their most challenging clinical and business needs. In summary, we have an exciting opportunity for further development of the companion animal standard of care with testing innovations that deliver clinical insights, inspiring higher diagnostics utilization, and with a commercial presence that helps our veterinary partners achieve their practice and patient care goals. In doing this, all while delivering an exceptional customer experience. Next, I'd like to introduce Kerry Bennett, who leads corporate strategy and advanced analytics and will now discuss the trends that give us further confidence in this opportunity. Thank you, Jay. Good morning, and thank you for joining us as we share our point of view on companion animal diagnostic trends over the next five years. We're fortunate to participate in a very attractive segment within pet healthcare, the segment for clinical insights and practice management enabled by diagnostics and software. We'll cover three key themes. First, diagnostics play a vital clinical and economic role in the practice. Clinical insights lead to medical services and create a major profit center for the practice. Second, diagnostics is a high-growth segment with significant runway for long-term development. Diagnostic revenue for practices and manufacturers has grown at a high single-digit rate over the past decade, with acceleration in 2020 driven by diagnostic frequency, which sets the stage for potentially sustained higher levels of growth. Third, we're optimistic about the potential for global diagnostic revenue growth over the next 5 years. Four major tailwinds are expected to more than overtake potential headwinds. Based on these dynamics, we believe there is a solid foundation for sustained strong global diagnostic revenue growth with a potential 100 basis points of incremental annual growth over the next several years. Let's start with some background on medical services at the veterinary practice and the increasingly important role of diagnostics as a growth and profit driver. Globally, pet healthcare is a growing sector led by service expansion. We frame the past decade of growth for the U.S. on a per-practice basis on the left. To estimate the total U.S. segment revenue growth, we add an average of 100 basis points per year for net new practice formation reflected in the figures on the right. Over the past decade, total practice revenue grew at just over 6% per year. Medical services grew at just over 7% per year, and diagnostics grew at almost 8% per year. We see acceleration in the more recent five-year period. Medical services are the strongest driver of accelerated total practice revenue growth. Within medical services, the diagnostics segment has grown at the highest rate, generating direct and indirect revenue for the practice. First and foremost, diagnostics generate tremendous clinical value for patients. Pets can't tell us how they feel, and often they hide their disease. In addition, diagnostics generate a very profitable and durable economic value stream for the practice. Strong trends actually accelerated during the pandemic, driven by exceptional increases in diagnostic frequency and utilization. This chart breaks down annual total U.S. companion animal diagnostic segment growth by key driver. Clinical visit gains, increases in frequency, and increases in utilization, comparing the previous five-year trends to the 2020 period. Annual U.S. diagnostic segment revenue growth jumped to 13% in 2020 from 8.5% over the previous 5 years, largely driven by increased diagnostic frequency. As we've been highlighting, through the pandemic, we've seen a step up in interest in diagnostic testing, as well as an expanding leverage of diagnostics in providing care. This is aligned with our strategy as a company. We have a role to play through innovation to expand diagnostic utilization and increase the standard of care. Let's talk about some of these drivers and how we see them evolving as we move forward. As we assess the drivers of changes in pet healthcare sector behavior that inform our growth outlook, we see some tailwinds and potential headwinds. These factors point to sustained strong dynamics with a potential for a somewhat higher level of growth than pre-COVID. We see four major tailwinds for diagnostic segment growth over the next five years. First, the strengthening pet-parent bond. People adore their pets now more than ever, with the COVID pandemic experience bringing them even closer. Millennials and Gen Z, the pet generation, have deep connections with their pets, include them as part of their families, and rely on them for affirmation and comfort. Second, new care and workflow models. Established out of necessity during the pandemic, curbside concierge service is likely to continue at some level based on the preference of a portion of pet parents and practices. Digital communications and engagement are advancing to support this ongoing shift. Third, innovation in diagnostics and therapeutics supported by large investments in commercial footprint. Acceleration of diagnostics and software R&D investment by well-established veterinary players and private equity-backed entrepreneurial companies is driving menu, platform, and category expansion. Fourth, the COVID puppy and kitten boom. The significant increase in pet ownership in 2020 in the U.S., parts of Western Europe and Australia, is expected to have a modest incremental impact from the increasing average diagnostic revenue per pet as pets age. At the same time, we anticipate potential headwinds and uncertainties that may attenuate the pet healthcare sector growth. First, potential capacity constraints. The supply of veterinarians, vet techs, and nurses may not be keeping pace with demand. Practices may be challenged to recruit and retain sufficient veterinarian capacity to meet demand. While this may be a constraint in the near term, we anticipate that software enablement of workflow, as well as the evolution of new care team models and skilled positions, will offset this headwind in the medium and longer term. As we'll discuss today, we're very focused on helping to address this challenge. As the pandemic tapers and pet parents return to normalcy, there's uncertainty about whether the accelerated pace of pet additions will continue and whether pet parents will remain as attentive as during the pandemic. We'll highlight some of these trends we're seeing on this front. A key long-term driver of pet healthcare sector growth is the steadily deepening pet-parent bond. One of the effects of the pandemic has been that pet parents feel closer to their pets than ever before. We see this in the importance that pet parents place on their pet's healthcare. 88% of pet parents agreed that taking care of their pet's health is as important to them as taking care of their own health. 86% agreed that taking good care of their pet means they have regular visits with their veterinarian. These trends are global based on research with U.S., U.K., and Canadian pet parents, confirming what we've been hearing in periodic research over the past few years. On the left, we see similar levels of agreement among pet parents in the U.K. and Canada as we see in the U.S., with the importance of taking care of their pet's health. On the right, the large majority of pet parents say that they would adjust their personal budgets to pay for care their veterinarians recommended if they didn't have the financial resources to cover them. The growing pet-parent bond was reflected in a step-up in our new pet additions during the pandemic. Accurate pet population modeling is infeasible in most countries. High-quality data is scarce. We believe that the global pet population has grown at a higher rate than in a typical year overall, and that several countries have seen significant pet population growth. In the U.S., we've seen extraordinary growth. Based on high-quality data and our own primary research, we estimate that while a typical level of annual pet population growth has been in the 1% to 1.5% range, in 2020, we had a 6% net increase in pet population. That is a net addition of about 10 million pets in 2020, from 160 million in 2019 to 170 million by the end of 2020. There are reports that other countries, including Germany, Australia, the U.K., and the Netherlands, had significant pet population growth as well. Who's adding these pets? Focusing on the left of the slide, of the households adopting pets in 2020, about 70% were adding more pets to their families, and 30% did not have a pet at home when they adopted. 12% of households adopting pets in 2020 were first-time ever pet owners. We can see that the majority of new pets are joining families who already have pets at home. We're also interested in understanding the significant growth in first-time pet parents. On the right of this slide, we look at each demographic segment and consider the percentage of pet owners acquiring pets, less the percentage surrendering pets, and less the percentage experiencing death of a pet in 2020. Gen Z and Millennials had higher net pet acquisition rates than Gen X or Baby Boomers. This sets a positive foundation for future growth. 88% of these first-time pet parents are Millennials or Gen Z, and these generations are highly attentive to their pets' needs. A recent survey and other research indicates that pet parents across demographic segments have very special relationships with their pets, viewing them as best friends or even children. Notably, Gen Z pet parents agreed with this at higher levels. In fact, our research suggests that Gen Z and Millennials across the U.S., U.K., and Canada believe that taking care of a pet helps to prepare them for human parenting in the future. Why are we focused on studying age segments? Millennials and Gen Z segments will represent over half of dog parents and will comprise as almost half of U.S. veterinarians in five years. Millennials and Gen Z have some distinguishing characteristics in their human healthcare preferences that we believe impact their pet health preferences. Millennials want digital access to healthcare services. For example, healthcare patient portals, online communications and appointments, and options for telehealth visits. Millennials seek medical information from various sources, not only their physicians. They take initiative to seek information from multiple sources beyond those in positions of authority. In addition, Millennials view health holistically. They think about wellness, including nutrition, exercise, stress levels, and take a broader view of health, and they want personalized, relevant, and timely communications. These factors point to a solid long-term tailwind for the diagnostic segment and reinforce the strategic solutions we are advancing to support and communicate the value of pet healthcare. As the pandemic eases, we are monitoring trends to see if there may be a lessening of focus on pet healthcare by pet owners. One area we often get questions about is trends related to pet adoptions and surrenders. We're actively monitoring the data on surrenders and adoptions at shelters, and while we've seen an increase in both surrenders and adoptions in 2021 relative to 2020, the figures remain below 2019 levels, and we have not seen a wave of accelerated surrenders that would indicate a significant increase in rehoming of adopted pets. In our June pet parent survey, pet parents in the U.S., U.K., and Canada all indicated a significant net positive pet adoption intention after the COVID pandemic tapers. As the most recent wave of pet additions ages, this should form a solid foundation for continued growth in diagnostics. Average annual spending at the veterinary practice increases with pet age. Average annual diagnostic revenue per patient increases with age as well, ranging from about $40 on average for puppies and kittens to $125 on average for geriatric patients. With this increasing diagnostic spending over a pet's lifetime, we estimate COVID puppies and kittens will contribute modestly to the overall diagnostic revenue CAGR, potentially an incremental 25 basis points, which we've captured in our updated diagnostics segment growth outlook. Our focus on expanding pet healthcare, including expansion of wellness testing, can help to build on these trends. We've discussed how important good care is from a pet owner's perspective, and we know they value veterinarians' guidance and recommendations. Still, we consider the cost of veterinary care as we pressure test projections. In 2020, average total spending at the veterinary practice was an average of $480 per active patient, which equates to less than 1% of average total consumption expenditure per U.S. household. Average diagnostic spending per active patient was $85 or approximately 0.1% of average total consumption expenditure per U.S. household. Ultimately, willingness to spend on veterinary care will depend on the pet owner's perception of value, and we believe there remains significant runway for continued growth based on consumption spending capacity. When we bring all of the trends together, we believe it's reasonable to expect a step-up of 100 basis points in diagnostics segment revenue growth to about 9% globally. We expect the strengthening pet-parent bond and innovation in diagnostics and therapeutics will be the most impactful drivers of diagnostics segment revenue growth. We expect the expansion in pet population in several key countries will also support incremental contribution to growth over the next five years. The potential headwinds have an uncertain probability and scale and are worth continued monitoring. Overall, we feel positive about the long-term segment growth outlook as we emerge from the pandemic. As we've shared in the past, our research continues to support a very long runway for continued global diagnostic segment growth. One way to frame the growth potential is to consider growth in clinical visits and diagnostic blood work utilization. We define blood work utilization as a percentage of clinical visits with a chemistry and/or hematology run. In 2020, we estimate the global sector for companion animal diagnostic revenue at the manufacturer level at about $4.6 billion, with blood work at 18% of clinical visits in the U.S. and a much lower estimated 7% in international regions. For the U.S., if we project a continuation of the increase in diagnostic utilization observed over the past 10 years to continue over the next 25, this would imply compound average annual diagnostic segment revenue growth of 7.5%-8.5%, and the U.S. would reach about 33% of clinical visits, including blood work in 2045. We view this as reasonable as an outcome in year 2045 for the U.S., since this would mean we would be reaching approximately what we see today in the top decile of U.S. practices. For international, if we assume the average blood work utilization reaches today's U.S. level of diagnostic utilization in 25 years, this implies compound average annual international diagnostic revenue growth of 10%-12%. Because the TAM is growing over time based on clinical visit growth and net price realization, with the potential growth outlined over the next 25 years, we would only penetrate about 30% of the estimated TAM at 2045. Finally, IDEXX plays a key role in helping practices sustain a higher level of growth. This vast opportunity for continued advancement of the standard of care around the world reinforces the attractiveness of our focused diagnostics and software growth strategy. Next, I'd like to introduce Dr. Tina Hunt, who leads our Point-of-Care Diagnostics business and worldwide operations and will provide an overview of IDEXX's Point-of-Care Diagnostics and highlight the value they deliver to our customers. Thank you, Kerry. Good morning. I'm delighted to be with all of you today, even if it's virtually. IDEXX has multidecades of innovation history, bringing differentiated and clinically relevant solutions to our customers and enabling them to provide exceptional care to pets. Our in-house diagnostic suite is highly innovative and very purposefully designed with this in mind. At its core, it provides a practice with the most robust range of diagnostics. Each one of these solutions is best in class, the result of years of development, field experience with our customers, and groundbreaking scientific innovation. They're designed to make a full diagnostic workup possible within a veterinary appointment window. This allows the veterinarian to evaluate the health status of the pet, identify follow-on tests if needed, and define treatment plans while the pet parent is in the practice to discuss them. As Mike Lane will share, IDEXX offers a full multi-modality diagnostic solution. We empower the veterinarian with the choice of where they prefer to run the diagnostics, in clinic or at our reference lab. This seamless flexibility is enabled by our innovation in software. The fast, easy, mostly hands-on workflow of our fully integrated solutions have tremendous productivity, training, and staff engagement benefits. Even more meaningful now as clinics try to meet the skyrocketing demand for pet healthcare and time is so valuable. One of the many differentiating aspects is that our diagnostic solutions are connected to the cloud, enabling a full patient diagnostic history through VetConnect PLUS, irrespective of where the tests were run. Veterinarians regularly use VetConnect PLUS in 35,000 clinics. With SmartService, our Internet of Things or IoT platform, we can upgrade the capability of our entire global install base overnight with new features, menu, or enhancements. We can monitor the instrument performance and maximize uptime. 98% of our premium analyzers at almost 50,000 clinics are connected through SmartService. This connectivity also provides access to big data, which can be translated to evidence-based medical insights and Clinical Decision Support tools through machine learning algorithms. We continuously invest in our platforms. They keep getting better and better. Catalyst One is a great example of our Technology for Life design philosophy. A remarkable innovation launched in 2014, it offers broad and deep menu, exceptional performance, and embedded connectivity at a very affordable cost. We continue to advance it with a regular cadence of new menu, as shown here with the launch of eight new tests. It's not just about any individual test like SDMA or bile acids or progesterone. It's the cumulative impact that these have on our chemistry franchise, which is a very significant and profitable business for us, growing rapidly with our expanding global install base. With SediVue Dx, our automated urinalysis analyzer, we have continued to advance the neural network algorithms, including our recently launched advanced bacteria detection. These innovations build on each other and multiply in our customers' minds. Knowing that the investment in IDEXX innovations will keep appreciating over time earns us their loyalty along with recurring revenue growth. This is a huge differentiator for us. We are not delivering static products with limited capability. A powerful validation of our customer-centric strategy is the advocacy and loyalty of our customers, as illustrated here with a double-blinded Net Promoter Score survey. Both Catalyst One and ProCyte Dx have consistently been rated as world-class platforms with 98%, 99% loyalty. It is gratifying to see that our customers are finding them even more valuable with a further increase in NPS scores this year. As Jay highlighted earlier, chemistry and hematology are foundational to veterinary medicine in both sick and wellness visits. With ProCyte One, we're making it easier and affordable for more customers to access best-in-class technology. We couldn't be more pleased with its launch, with hundreds of analyzers installed to date and overwhelmingly positive customer reception. ProCyte One's brilliant intuitive design with a small and compact but super powerful footprint completely redefines the user experience with its elegant simplicity. Veterinarians trust its accuracy. They enjoy the differentiated menu. AI-powered algorithms help them quickly interpret the complex hematology results and confidently determine next steps. The pay-per run and auto-replenishment model for ProCyte One adds another hard-to-replicate strategic differentiator, transforming inventory management and cash flow dynamics for clinics. ProCyte One was designed and iterated over and over with customer feedback, including very extensive customer trials. The end result is that we're exceeding customer expectations in every way. There is a very long runway to continue expanding our premium point-of-care instrument install base. Approximately 200,000 placement opportunities globally. 47,000 clinics are enjoying the benefits of the Catalyst platform. We see over 70,000 further opportunities. With each chemistry placement, the attach rates are typically very high for hematology and increasingly for SediVue. We can offer a choice of two world-class hematology platforms, ProCyte Dx and ProCyte One, to almost 100,000 clinics. We also continue to see tremendous success with SediVue, with nearly 12,000 clinics enjoying its benefits. Automated urinalysis is fast becoming the standard of care, and our international placements are accelerating. Providing clinics ready access to effortlessly run comprehensive diagnostics results in more testing, which fits perfectly in our long-term strategy. Let's talk about infectious disease testing, which is becoming more relevant, especially with pets traveling, tick migration, climate change, zoonotic diseases. That said, vector-borne disease screening in dogs is way underutilized today, with only one out of six dogs getting a full screen in the U.S. Even if you just focus on raising the standard of care for pets who are only being tested for heartworm, that's a 19% on bottom left, and added tick-borne disease screening, it is a $200 million-plus incremental opportunity. As you can see, there is tremendous runway for continued growth in the U.S. and internationally as we educate and advance the standard of care. Our vector-borne disease, our VBD franchise, is another excellent example of IDEXX's Technology for Life story, innovating to advance the assay breadth and accuracy over a period of almost three decades. Educating customers on the value of VBD screening and driving the industry forward with good science, clinical studies, and powerful data to reinforce the dynamic nature of these diseases. Investing in commercial capability and professional service veterinarians to change clinical beliefs about the importance of accurate and comprehensive VBD screening. Accuracy is always the number one priority, but even more so in infectious disease testing, where a wrong result can have serious consequences for the pet. SNAP 4Dx Plus clearly leads in terms of accuracy with unparalleled sensitivity and specificity, supported by numerous peer-reviewed publications and comparative studies. It has exceptional customer satisfaction and loyalty with a phenomenal Net Promoter Score of 81. Majority of 4Dx Plus is run in a connected mode today with over 45,000 SNAP Pro analyzers globally. Results are automatically integrated into VetConnect PLUS and practice management software. We're excited to add yet another layer of innovation to our 4Dx Plus offering with the launch of personalized Clinical Decision Support later this year. We're leveraging machine learning and our deep medical expertise to provide pet-specific clinical insights and enable the veterinarian to accurately and efficiently work through the diagnostic and treatment plan. For example, what diagnostics to consider as a next step if they get a Lyme positive on 4Dx. In a world of increasing choices, our customers choose to partner with us and stay with us because they have seen us consistently deliver highly innovative solutions to help with their daily challenges, whether they are solving complex clinical cases, dramatically simplifying their workflow and increasing productivity, or helping with staff stress and engagement. Next, I'd like to introduce Mike Lane, who leads our reference laboratories and information technology. Mike will provide an overview of IDEXX's reference lab diagnostics and consulting services. Thank you, Tina. Good morning. It's a pleasure to share with you today the tremendous momentum we have in the execution of our growth strategy for laboratory diagnostics and consulting services. Our global growth is fueled by an unrelenting commitment to innovation and talent with a sharp focus on three strategic pillars. Scientific, medical, and technological advancements that result in the most complete menu of diagnostic tests and services. Laboratory network, software, and logistics solutions that make our customers' work more efficient and in turn, make patient care more efficient. A global team of exceptionally talented specialists that serve as an extension of our customers' practices, providing personalized support with expert guidance, increasingly 24 hours a day, seven days a week, 365 days a year. These are highly advanced capabilities that we have developed over decades with significant and sustained investment in global talent, R&D, IT, laboratory network, and commercial capability. As a result of this investment and our unrelenting commitment to innovation, we offer the broadest and deepest menu of differentiated tests and services, which are expertly designed for the clinical needs of both well and sick patients. On the right side of this chart, in green, are testing categories specifically designed to serve as a minimum diagnostic database for sick patients and also as a comprehensive preventive screen for well patients. Each of these testing categories includes differentiated menu and services. For example, IDEXX SDMA included with every chemistry panel. Lab 4Dx Plus, among other differentiated immunology tests. Reticulocytes and Retic hemoglobin included with every hematology panel. IDEXX Anywhere Urinalysis utilizing IDEXX SediVue at the point of care. IDEXX Fecal Antigens, which detect twice as many infections as traditional methods. These are also the core components of IDEXX Preventive Care panels, which are designed by IDEXX medical experts leveraging our evidence-based big data. As we have shared previously, our landmark study found at least one in four IDEXX Preventive Care profiles indicate the need for follow-up. These profiles include the innovative tests I just mentioned. We have the most complete and advanced menu to assist veterinarians with follow-up and confirmatory testing when they discover underlying disease or when a patient presents as sick. On the left side, in blue, are testing categories and consulting services that are designed for these sick patients, including our broad molecular diagnostics and microbiology menu, as well as IDEXX Consulting Services. An example of IDEXX Consulting Services is our point-of-care digital cytology service, which provides expert interpretation from an IDEXX board-certified clinical pathologist in less than two hours, 24 hours a day, seven days a week, 365 days a year. Prior to IDEXX Digital Cytology, veterinarians would have to wait days for an expert cytology interpretation. IDEXX's innovative diagnostics, comprehensive panels, and consulting services help drive the care equation, enabling clinicians to provide a higher standard of care. We have a tremendous opportunity to continue to expand standards of care around the world. This multi-decade growth opportunity drives both the breadth and depth vectors of clinical testing for well and non-well patients. Here you see the breadth of testing conducted by our current 22,500 U.S. laboratory customers. We have a very long runway of opportunity in front of us to expand testing as practices increasingly adopt and utilize IDEXX differentiated tests as part of their routine preventive care protocols in sick patient testing. You see on the slide that in many diagnostic categories, we have more existing customers that don't currently use our lab for a given diagnostic category than do. We see similar patterns of adoption and opportunity in international regions. This is especially true with IDEXX Consulting Services that you see in the blue box on the right. IDEXX Consulting Services is a global team of over 500 veterinary specialists that serve as an extension of our customer's practice, providing personalized support and expert guidance. These board-certified experts in anatomic pathology, clinical pathology, radiology, cardiology, internal medicine, oncology, dermatology, among other specialties, assist our customers with their more difficult medical cases by providing expert interpretation and clinical insight to complement the findings from our broad and deep diagnostic menu. An example of how we capture the tremendous opportunity to expand standards of care is IDEXX Fecal Dx antigen testing. This IDEXX innovation, which is endorsed by the industry's independent Companion Animal Parasite Council, has grown dramatically as veterinarians appreciate both the clinical and economic value of fecal antigens. Fecal antigen testing finds twice as many infections, finds infections sooner, and generates more treatment income for the practice. Any fecal test is incomplete without fecal antigens. For example, IDEXX Fecal Dx is included in all preventive care challenge panels. I'm pleased to report that we are on track to reach the incremental annual $120 million revenue opportunity we projected by 2023, which we shared at our 2018 Investor Day. Our advanced offering also spans IDEXX modalities. For example, IDEXX Lab and SNAP 4Dx Plus. Our 4Dx Plus offering provides multiple layers of clinical insight and differentiation. First, as Tina described, IDEXX SNAP and Lab 4Dx Plus technology is the most accurate testing method for vector-borne disease. Second, IDEXX Clinical Decision Support brings an additional layer of innovation and convenience for our customers by providing fast and efficient interpretation and decision support regarding recommended next clinical steps, all through VetConnect PLUS. Third, with our IDEXX Anywhere program, customers can test with 4Dx technology either at the point of care or at the IDEXX lab, and then seamlessly follow up with an IDEXX Lyme Quant C6 test completed at the lab for additional clinical insight and at no additional cost. When an IDEXX 4Dx Plus test is positive for Lyme, our novel Quant C6 test is utilized to determine if infection is active and if treatment is warranted. Elevating standards of patient care by growing diagnostics through adoption of our innovative menu, comprehensive panels, and consulting services is clearly a global opportunity. Delivering this innovative menu with exceptional service globally requires a sophisticated hub-and-spoke laboratory network, integrated global information systems, and an exceptionally talented team, all of which we have developed over decades. This includes dozens of day labs to reach and serve veterinary practices during the day, regional labs to efficiently run samples throughout the night to deliver results by the next morning. In core labs, like our state-of-the-art Kornwestheim lab, to deliver the full breadth of our advanced menu. Kornwestheim, which has now been in operation for over a year, leverages over two decades of IDEXX expertise. It's our largest core lab, the center of our European network, and the most advanced veterinary laboratory in the world. Kornwestheim brings capability and capacity to support our growth across Europe and beyond for years to come. We gain leverage and efficiencies through our hub-and-spoke lab and logistics networks, high throughput automation solutions, and integrated information in digital systems. Our scale results in high gross margin flow through in this high operating leverage business. Investments like Kornwestheim also allow us to attract the very best talent in the industry and serve our customers with the highest quality, speed, and expert support, leveraging our digital image sharing technology across a follow-the-sun service network. For example, when it's midnight in New York, our IDEXX clinical pathologists in Australia are ready to assist with expert interpretation of digital cytology results in less than two hours. The sun never sets in serving our customers, and exceptional service never takes a day off. Now, here's what I mean by exceptional service. High customer loyalty is the foundation of our enduring recurring revenue growth, and our large base of customers have never been more loyal. One way we measure customer loyalty is Net Promoter Score, which you see on the slide. We recently achieved a world-class score of 61 in the double-blinded survey we just conducted in July of this year, significantly higher than our largest competitor. These very high levels of customer satisfaction and record levels of customer loyalty are a result of our unrelenting commitment to innovation and talent, with a very sharp focus on the three strategic pillars I described today. Deep scientific, medical, and technological capability that results in the most complete and differentiated menu of diagnostic tests and services. An exciting pipeline ahead. Highly advanced global laboratory network, logistics and software solutions such as VetConnect PLUS, that together make patient care delivery more efficient for our customers who have never been busier. An exceptionally talented and dedicated global team focused on serving the unique needs of our customers around the world and around the clock. Next, I'd like to introduce Michael Schreck, who leads our Veterinary Software and Services and will highlight the strategic importance of software in the personalized experience it brings to our customers. Good morning. I'm Michael Schreck, and I'm pleased to share with you my perspective on the global IDEXX software business and the strategic importance that software plays in operating an effective and efficient veterinary practice. With over two decades of experience leading software businesses in other industries, I'm very enthusiastic about the increasing impact software and data will have in the veterinary profession to address both its clinical and business challenges. As Jay noted earlier, our customers are increasingly experiencing our diagnostics through a software interface that is further contextualized by our deep data assets. Our software helps connect our powerful products and delivers insight for our customers more efficiently and effectively, resulting in a higher standard of care and a highly differentiated multi-modality solution. In addition to harnessing the powerful IDEXX ecosystem, software also represents an increasingly attractive standalone business opportunity for us as we solve some of today's most pressing practice needs, many that can only be addressed through software. Let me walk you through a few slides that illustrate this impact and opportunity. The synergy between IDEXX diagnostics and software is quite powerful. Our most recent data provides evidence of that strength. When a customer is all in with IDEXX, whether a large or small practice, their diagnostic recurring revenue is up to 26% more when they use our Cornerstone practice management software than when they use non-IDEXX PIMS. This intuitively makes sense as all testing activities are captured automatically and workflow is seamlessly integrated. As we continue to invest in our PIMS and ecosystem software to make ordering, receiving results, and interpretation more simple, more mobile, and more insightful, we expect this to support strong growth in both our diagnostics and software recurring revenues. Practices are complex and busy places where the clinical environment collides with practice operations and where patient care, pet-parent relationships, and practice staff needs all intersect. Practices face pressure from many directions, both at the macro and micro level. It was challenging enough to balance all these effectively pre-COVID. The pandemic has further highlighted the importance of modern and flexible software that can be updated swiftly to meet rapidly changing customer needs with must-have functionality like curbside check-in and text-to-pay solutions. Visits are now at an all-time high. Practice staff capacity is constrained, and veterinarians, their teams, and pet parents increasingly expect a digital-first technology experience. Intuitive, intelligent, and mobile-centric software will play an increasingly vital role in automating repetitive tasks, maintaining client relationships, and delivering connected insights across the practice ecosystem. IDEXX software and data powers both the hub and spokes of high-performing practices, whether it be front or back office workflow, clinical or diagnostic insight, our software is a key part of the customer's operation. At the hub of the practice is practice management software, and our portfolio offers the most advanced PIMS available in packages tuned to specific customer segments. No matter what the specific practice need, IDEXX PIM solutions have our customers covered with best-in-class software. If the practice is searching for a cloud-native solution, ezyVet offers a leading platform for advanced and specialty practices, while Neo delivers a brilliantly simple solution for smaller general practices. Meanwhile, our currently 7,000 Cornerstone customers continue to be well-served by this full functioning platform, as evidenced by its nearly 96% retention rate. From these powerful practice management hubs, IDEXX's software portfolio offers best of breed solutions, touching virtually every part of the practice's operations. Whether for independent practices or large enterprise groups, our software systems support nearly a quarter of a million practice users and 100 million patient visits annually. While the industry has been slower to adopt cloud-based software than others, that trend is accelerating among practices, and we anticipate that trend continuing. Even with conservative assumptions, the majority of practices will be utilizing a cloud-based PIMS by the end of the decade. Cloud is a game changer for our customers. Again, COVID has further reinforced its advantage. For example, our customers will always be on our most recent releases, giving them our most advanced features and performance. Additionally, our cloud solutions will natively offer 24/7, 365 mobile access from virtually anywhere, providing increased flexibility to balance their busy professional and personal lives. Also, in an increasingly dangerous cyber world, the cloud will offer our practices the latest protections of their systems and client data. Ultimately, we want veterinarians to do what they love and not have to worry about their IT and software infrastructure. It is in that light that IDEXX offers multiple cloud-centric software as a service PIMS to support our customers and the industry as it navigates this cloud transition in the coming decade. No matter what a practice is looking for, we are ready with a cloud-based solution tuned to their specific needs. ezyVet offers advanced and specialty practices and groups a cloud platform with rich functionality, deeply embedded integrations, and global scalability. ezyVet is recognized as the top-rated, full-featured practice management solution with 94% customer satisfaction, according to Capterra, which is an industry standard business software customer review site. This SaaS platform has been battle tested in many of the most sophisticated practices, teaching universities and group networks in the world. We're also pleased to announce that Vet Radar, a mobile whiteboard and treatment workflow software, is now in general release and deeply integrated with ezyVet. For smaller general practices looking for a brilliantly simple solution, we offer Neo, which we have designed to be truly SaaS in every way. From the buying experience to onboarding staff, practices can harness its intuitive feature set and deeply native integrations faster than ever. We've also recently launched Cornerstone Cloud for our important Cornerstone customers who love this fully featured platform, but want the benefits of cloud technology. For those Cornerstone customers who want to stay as is with their Cornerstone on-premise systems, we'll continue to provide consistent feature updates. We are committed to offering our customers cloud solutions that meet their needs as the industry makes a migration from on-premise to cloud-based software. Whether inside one of our PIMS or via another IDEXX software platform like VetConnect PLUS, increasingly, our customers will experience our diagnostic products via software. VetConnect PLUS is one of our most utilized software platforms with 35,000 engaged practices ordering over 20 million tests annually. During COVID, we saw a 50% increase in usage of our mobile version of the application. Consequently, we've doubled down on our investment and will be unveiling our next-generation mobile app globally this fall. In seven languages. This next-gen VetConnect PLUS mobile app can be personalized to an individual user's needs and customized to their unique workflow and responsibilities. With the influx of Millennial and Gen Z clinicians and staff entering the profession, we anticipate that this highly intuitive and mobile software interface will be the primary way they want to experience our world-class diagnostics. We're also excited to announce Clinical Decision Support, which leverages artificial intelligence to deliver a clinical insight inside of VetConnect PLUS. In addition to a personalized presentation of diagnostic results, our customers will now experience the interpretive power and predictive recommendations to help them more efficiently and confidently treat their patients, which in turn will drive incremental reflex testing. Clinical Decision Support is a result of hundreds of millions of patient medical records that have trained some of the most sophisticated interpretive and predictive models available in our industry. CDS delivers insight and confidence to our clinicians, corporate groups, their patients, and pet parents, as well as value to IDEXX. Now, our VetConnect PLUS results will increasingly be accompanied with data-rich insight to instill further confidence in a clinician's recommended treatment plan and do so more efficiently than ever. Large groups can further refine the insights to support their preferred protocols, resulting in more consistently elevated productivity and care outcomes. Leveraging our deep data assets with artificial intelligence is one key part of IDEXX's ongoing commitment to deliver to our customers a differentiated diagnostic experience that results in a higher standard of care and a more efficient practice. I'd like to close with this summary. Software data and diagnostics are deeply synergistic and highly complementary. Consequently, our commitment to advancing software and data for the benefit of our customers, their patients, and our industry is stronger than ever. Next, I'd like to introduce Jim Polowczyk, our Chief Commercial Officer, who will provide an overview of IDEXX's commercial strategy. Thank you, Michael. Good morning. I trust everyone is doing well. I appreciate the opportunity to spend some time today discussing our global commercial approach, an approach which has been supported and accelerated by the transition we made in the beginning of 2020 into a global commercial organization here at IDEXX. As Jay touched upon, we are extremely fortunate to participate in a sector with tremendous resiliency and opportunity associated with it. The pet health sector, and more specifically, the category of diagnostics and software, currently at $6 billion, offers an exceptional multi-decade global growth opportunity for IDEXX, an opportunity for us to continue to create growth. We estimate that two-thirds of the opportunity over time will come from international regions, which are much earlier in their adoption and utilization cycles for diagnostics and information management. Our commercial strategy is to inspire and drive relevant diagnostic testing in support of our customer's mission to deliver an improved standard of care, and therefore, we are taking disciplined and thoughtful steps now to expand our commercial presence in key countries outside the U.S. This approach ensures that our entire suite of diagnostic and software innovations is represented by category experts, talented sales, support, and veterinary professionals who partner with customers around the world with the right frequency and reach to educate and inspire on the value diagnostics can bring to their patients and their practices. A major goal of our commercial strategy is to accelerate the growth of our customers as diagnostics is increasingly viewed as playing an essential enabling role to medical services in veterinary medicine. Inspiring customers through the belief evolution journey is core to our commercial strategy and requires an ecosystem of diagnostic category consultants, talented professionals who can expertly speak to the clinical and economic value of our differentiated and highly integrated suite of diagnostic solutions. Viewing the opportunity through our customer's eyes means we grow together by consulting on and using the breadth and depth of our integrated product and service portfolio, enabling customers to take full advantage of the value propositions associated with each of our testing modalities. For example, the real-time care elements of our connected in-clinic analyzers facilitate medical and staff efficiencies when time to results matters as in acute care or sick patient visits. On the other hand, our robust and differentiated reference labs menu serves as an extension of the practice, supporting clinic efficiencies by having IDEXX personnel process tests and provide results in non-critical visits like wellness and preventive care. In many cases, the benefits of in-clinic and reference labs capabilities complement each other extremely well, especially in cases where a diagnostic result in one modality warrants a reflex test in the other. In each of these examples, our category experts are there to provide awareness, education, and ultimately consideration of the highly differentiated diagnostic tools available. This commercial approach aligns extremely well with our highly integrated and differentiated suite of products and services, including our connected suite of in-clinic analyzers, made even more robust by the recent introduction of ProCyte One, as well as the most comprehensive and differentiated reference lab menu available. Our growing family of integrated software solutions are increasingly the way in which our customers experience our diagnostics, led by innovations like VetConnect PLUS, as well as ezyVet, a leading cloud-based PIMS that recently joined our growing IDEXX innovation portfolio. As we look to further develop the international opportunity, a key element of our strategy is to leverage the demonstrated capability of our highly successful U.S. direct commercial model. The U.S. continues to be our largest country segment with continued long-term development potential. To capture the significant opportunity domestically, we've taken a very disciplined and thoughtful approach over many years to build an expansive commercial ecosystem, one which puts a strong and talented team of diagnostic category at its center. Multiple expansions have not only increased the frequency and reach with which we call on our customers in the U.S., but they've also given us a playbook of best practices to leverage internationally as we seek to realize the exceptional opportunity that diagnostics represents globally. This VDC-led, high-touch commercial approach resonates extremely well with customers around the globe, leading us to take purposeful steps to create and leverage global centers of excellence to accelerate the deployment of this IDEXX sales system in key international countries. The goal of our high-touch account management model in the U.S. is to reach 80% of our customers and 90% of IDEXX revenue quarterly, achievable with an average territory size of approximately 120 accounts per VDC. We believe these frequency and reach metrics translate to key international regions as well, and we anticipate moving towards these benchmarks over time. Leveraging our commercial playbook of best practices, as well as our global centers of excellence, we will continue to scale our commercial footprint on a rolling basis in targeted international countries over the coming years. Over the past year, we've put this strategic intent into action, having recently completed significant commercial expansions in Germany, France, and South Korea, as well as initiated expansion efforts in three additional countries, which we will discuss in a future update. To ensure an efficient and disciplined approach with these investments, we're leveraging core elements from our commercial playbook, including hiring and engaging the right talent profiles, applying deep analytical insight to commercial opportunities, driving a world-class training and education curriculum, leveraging a centers of excellence approach, and supporting our field and our customers with education, tools, and creative marketing and capital placement programs like IDEXX 360. The IDEXX 360 program is a fantastic example of leveraging both our commercial capabilities as well as our innovation to accelerate increased standard of care around the world. This program enables customers to benefit from our innovative and connected suite of IDEXX in-clinic analyzers with no capital outlay up front in return for committing to using any or all of our diagnostic and software offerings, including our expansive reference labs menu of tests, our family of SNAP point-of-care tests, and our information management solutions. This approach is enabled by the breadth and depth of our product and service portfolio, as well as the deep level of integration and connectivity they were each designed to deliver. We're extremely excited over the recent launch of ProCyte One. Customers are already benefiting from this fantastic new hematology analyzer being included in our IDEXX 360 program. ProCyte One is a perfect solution for our international countries, many of which are hematology-first opportunities where clinicians have been well trained on the value of hematology in their diagnostic workups. ProCyte One hits a sweet spot in these countries with a wonderful combination of ease of use, small footprint, and incredible performance at the right price. Placing ProCyte One as part of an IDEXX 360 agreement also inspires competitive chemistry placements as well as new labs and rapid assay business. The IDEXX 360 program has been incredibly well received in the U.S. and is driving the majority of our new business agreements. While still early in its adoption cycle internationally, the customer-centric approach that our IDEXX 360 program facilitates has resulted in an acceleration of revenue in key regions around the world, including Europe. An increasing number of our analyzers are placed through this program as well, also inspiring other key recurring revenue streams like reference lab services and rapid assay. The combination of a stronger commercial presence, a broad and deep innovation portfolio, and customer-centric programs like IDEXX 360 are all key factors in accelerating the adoption and utilization of diagnostics globally. Finally, as we expand our commercial presence in key international regions around the world, we continue to see a strong and compelling correlation between presence and growth. Irrespective of which key country we look at and whether these customers already use both in-clinic and reference lab services from IDEXX, the result is similar. When we call on customers with IDEXX diagnostic category experts, they grow faster, meaningfully faster. Recent investments in international regions have continued to demonstrate this correlation between presence and growth, and therefore, it's a strategically compelling approach for us to continue to increase our commercial footprint in targeted international countries around the world. We believe the combination of an increased commercial presence in key regions around the world, coupled with an ever-expanding and integrated diagnostic and software innovation portfolio, positions us well to continue to grow towards the $37 billion TAM opportunity over the coming years. Next, our Senior Vice President and General Manager of our Companion Animal Group in Europe, Andrea Ucci, will lead a discussion with Dr. Cifra, founder of a veterinary clinic near Madrid, Spain. We thank Dr. Cifra for taking the time from her busy schedule to share her perspectives on the role of diagnostics in her practice and how IDEXX partners with her team. Good day, everyone. My name is Andrea Ucci, and I am the Senior Vice President for Europe and Africa at CAG IDEXX. I joined IDEXX four years ago, actually, and it has been so far an amazing journey. I remember when I first joined, I wanted to visit some customers, and it was amazing to experience how much we are relevant, and how strong is the partnership with them in order to increase pet health. It's even more amazing to discover that Europe was and still is an emerging region for IDEXX. Before IDEXX, I worked at Pfizer, at Abbott, and J&J in multiple geographies, including China, based in Shanghai. That was a fantastic professional experience and of course, a great experience also for my family. Today, it's a great honor and pleasure to be with Dr. Cifra in Madrid. Good morning, Dr. Cifra. Thank you very much for hosting us in your practice, and thank you very much in advance for this conversation today. Good morning, Andrea, and everyone. For me, it's a pleasure to be here. This is Pilar Cifra. I opened my own clinic in 1988. It's a general practice in Madrid, Spain. We are four vets and two technicians. We serve both dogs and cats, but we are more focused on cats. We have been IDEXX customer since really the beginning, you know. Well, for me, it's a pleasure to be here. I hope next time we can meet together, maybe in Rome or maybe in Madrid. We don't know. Yeah. No, thank you. I like both options, actually. One question. We know that the role of diagnostic in Spain is increasing significantly, and I'm really interested to understand also about the role of diagnostic for your clinic. Is it important, and why? Diagnosis are essential to practice the best medicines, to give the best treatment, monitoring, and also for prognosis. We can follow the evolution of the patients and set the pet owners' expectations. Well, this is great. Thank you. Yeah, I agree. I mean, monitoring patient evolution, it's very important. Since you mentioned pet owner, I'm interested to understand how does it compare the wellness versus non-wellness, wellness visits? Are pet owner asking more of preventative care visits in your practice? Usually the consultation are more related to diseases, you know. I think this is a field that we need to improve with communication tools with the pet owner. Well, what we do, we talk a lot with the owners who have puppies or kittens, and also talk about preventive medicine education and something like that. Also, we send to all our adult patients, a birthday greeting and invite to make checkups and also survey questions about is the dog or the cat playing, because dogs and cats need to play, even when they are older. If they don't play, maybe something happened with them. Well, I completely agree with you and appreciate your customized approach for each pet and each pet owner. One curiosity, did you always believe in the value of diagnostics, or it has increased this value over time? If so, how? Well, the primary medicines have had an evolution in the last 20 years, comparable to the last 100 years in human medicine. This is from with everything. Of course, this includes diagnosis techniques from the in-house profiles to the more specialty techniques that we need to send to the lab, like immunochemistry, for example. Thank you. This is really insightful. I like a lot the metaphor with human pharma. It makes a lot of sense, actually. I have another question related to the value of diagnostic for your practice. Do you see this also as an area for growth, and if so, in what ways? Yes. Diagnosis will be the main of the practice income. doing the protocols of diagnosis was one of my success on the last 20 year, 5 years. I looking forward to continue doing this in the future. This is very, very, very interesting. Thank you very much for sharing. How has IDEXX, so how have we, supported your clinic's growth? Well, IDEXX helps me to be a better vet in many ways. For example, bringing to me the best complete catalog of profiles and tools in-house lab, and also to send to the laboratory, to external laboratory. IDEXX rep shows us how IDEXX can help with this on my practice. Also the tools IDEXX bring us, I love VetConnect PLUS. I can see the results even if I'm away on the practice. Sometimes I see it before my partners and I say by WhatsApp, "Oh, Nuka is improving her anemia," for example. I love that. Well, fantastic. I will share these compliments, your compliments to Eduardo, your dedicated sales professional. I'm interested to know more about this partnership. First of all, at the beginning, why you have chosen to partner with IDEXX, and what is the value you see in our products and services? I perceive IDEXX like a great and reliable company. They also didn't lose the human touch, you know. For me, this is very important, and I really appreciate. For me, IDEXX means combinations technology, and they are always there when I need. This is great to hear. Thank you so much. You mentioned at the beginning that in your practice, your staff is composed by four veterinarians and two technicians, and you mentioned that they are very important for your practice, of course. How do you engage, motivate and train your team on the standards of care that are evolving every time? IDEXX helped me and my team to understand how important to work with high standard protocols. Our IDEXX rep made a lot of information and teaching about, for example, SDMA or dot plots. I love dot plots in ProCyte, and he explained how to interpret these plots. What I always say to my team, "Don't set the limits. The limits should be set by the owner. Well, now we can really understand why your practice developed so well, because you don't see limits. This is just fantastic. I like that. I'm really curious to understand more and to know more about pet owners. When, especially are they typically responsive to run diagnostic or you face obstacles when you are proposing them to run diagnostic? Owners profile are changing. They are more exigent, and they search more information on internet, on everywhere, you know. They also ask for more information about the entire process. I think if you explain it, you rarely will have problems with the owners. You need to talk and have nice tools. For example, IDEXX provide us IRIS scale. Oh, that's very interesting. Thank you so much. One of the effect of the pandemic, at least in U.S., was to increase pet ownership. Have you noticed an increase of new patients also in your practice? Yes. All my practices and also in Spain, we've seen more puppies and kittens. More adoptions. Okay. The pet ownership has increased also in Spain. Could be probably a global phenomenon. How did you handled this increased demand that came all together? Yeah. We needed to increase the staff with one veterinarian and one technician. Okay. Have you also noticed, any change in the demographic of pet owners coming to your practice, recently? Yes. I think they are younger and more involved owners. They have information, a lot of information, and they demand information from us. Thank you so much, Dr. Cifra. Again, very interesting, insightful. A real pleasure to meet you virtually. I wish actually to be able to visit you, as you said, Spain, Rome, whenever is possible, wherever is possible. I'm interested also to see your practice and to see your team in action, because it sounds like you have a great practice and fully dedicated to pet owners and to pet health. Thank you very much for having us today. Thank you, Andrea. Of course, you can come to my practice when you want. For me, it was a pleasure. Thank you, Andrea and Dr. Cifra. It was a pleasure to learn about the role of diagnostics at your practice and how IDEXX can partner with you to provide the highest standard of care to your patients. I'm pleased to welcome everyone to our 15th annual Investor Day and to take you through our financial review. In past years, we've used this review to discuss our rolling five-year financial goals aligned with their business strategy. We're happy to return to that practice today after having effectively managed through the pandemic over the last year. The resilience of our business through this time has reinforced the significant long-term growth potential we see for IDEXX, centered on global development of companion animal diagnostics and information management. You should take a few key messages from today's review. The first is that our consistent strategic focus is yielding outstanding financial results, and our accelerated growth through the pandemic reinforces the significant long-term growth opportunity we see for our core companion animal business. Looking forward, our multi-year goals reflect plans to drive continued 10% plus annual organic revenue growth, supported by 11%-14% annual growth in durable high return CAG Diagnostics recurring revenues. Our long-term financial strategy is aligned with investing towards development of the available opportunity that will enable this high growth while we continue to deliver 15%-20% annual comparable EPS gains and high returns on invested capital. We'll spend some time discussing our focus areas for investment, which are aligned with the business presentations shared today. Let's start with an overview of our business strategy and financial performance. IDEXX has been able to deliver consistently strong financial performance through a long-term focus on developing attractive core businesses. We serve three major spaces: companion animal health, water quality testing, and livestock health. Our Companion Animal Group is our largest segment, now representing 88% of total revenues, with 78% of total company revenues coming from our CAG Diagnostics recurring revenue annuity. We're also leaders in the highly profitable water E. coli testing business and our synergistic livestock diagnostics franchise. Our core businesses have common characteristics. They each have solid underlying growth potential that we're focused on accelerating through organic business development. This strategy aligns our interests with our customers and enables us to achieve high organic growth rates as we help IDEXX customers grow faster. We're a global leader in each of our core business segments. We have a global strategy, leveraging common technologies and platforms across regions through integrated centers of excellence. Each of our businesses are innovation-driven with expertise centered in diagnostics and increasingly integration with information management. These businesses all have high and growing recurring revenue bases that generate predictable, durable, high incremental gross margins. These dynamics support strong operating profit gains and excellent returns on invested capital. A consistent focus strategy, combined with high levels of execution, has driven outstanding financial results above the long-term goals we outlined five years ago. We've achieved an average 11% organic revenue growth over the past five years, an average 180 basis point annual improvement in comparable operating margins, and 26% average comparable EPS growth. Our profit gains have been supported by the attractive flow through economics of our recurring revenue model. Incremental gross margins of 60% plus across our CAG Diagnostics recurring revenues has supported steady gross margin expansion over time. We've also achieved excellent OpEx leverage benefit from high growth as we've invested in expanding our innovation and direct commercial capabilities. Disciplined cash flow management and benefits from our strategic focus have yielded a 55% return on invested capital. In 2020, our revenue growth and profit gains actually accelerated during the pandemic, benefiting from proven cost controls. This strong business momentum has continued into 2021. As reported on our recent conference call, we've had an excellent start to 2021, driven by continued strong momentum in our CAG business. For the first half, our organic revenue growth was 23%, driven by 24% gains in CAG Diagnostics recurring revenues, including benefits from the lapping of the initial lockdown impacts that pressured revenues in late March through early May in 2020. A metric that we're highlighting as we work through these comparisons is the average two-year annual organic growth rate in CAG Diagnostics recurring revenues. This growth rate reached approximately 16.5% in Q4 of 2020 and sustained at 16.5% in the first half of 2021. Profit flow through from this high growth, as well as favorable comparisons in early 2021 to higher prior year pre-COVID operating expense levels, has supported a 470 basis point expansion in our operating margins year to date and 49% comparable EPS growth. Our cash flow metrics also continue to be very strong, with a trailing twelve-month free cash flow to net income conversion of 95%. We're well-positioned to build on this outstanding financial performance. A key driver of our financial results has been the progress we've made in accelerating CAG Diagnostics recurring revenue growth. We achieved compounded annual organic growth of 13% over the last five years, with performance at the high end of our original global five-year goals of 10%-14%. As shown here, we've delivered against our goals across U.S. and international regions, with particular strength in the U.S., aided by high returns from our investments in our direct commercial capability. These results are reinforcing our confidence in extending this successful strategy to drive continued high growth in international regions, aligned with our long-term $37 billion-plus addressable CAG opportunity. A factor reinforcing our confidence in investing towards long-term business development is the resilience of our CAG recurring annuity during the pandemic. We've made steady progress in increasing CAG Diagnostics annuity growth over time, with global growth averaging approximately 12% from 2015 through early 2020, with an increase in our growth trajectory benefiting from our expanding direct commercial presence. Historically, our annuity revenues have been highly resilient to economic effects. Factors strengthening the underlying pet owner bond and our ability to support our customers directly through challenging times have expanded significantly, adding to this resilience. Amazingly, the pandemic actually accelerated our annuity growth globally, supported by increases in pet ownership and an acceleration of services growth, including increased diagnostic utilization. IDEXX's strong growth trends reflect our ability to innovate and drive commercial engagement, demonstrating our value proposition. This is reflected in the IDEXX growth premium. This chart compares IDEXX U.S. CAG Diagnostics recurring revenue growth to same store clinical visit growth reflected in our U.S. practice database. As shown here, the premium of IDEXX growth to U.S. clinical visit growth expanded from approximately 750 basis points to approximately 900 basis points heading into the pandemic. In 2020, the growth premium expanded significantly to 1,200 basis points, with continued strong performance in the first half of 2021. This growth premium reflects the relatively higher levels of growth at engaged IDEXX customers and reinforces our strong long-term growth outlook. As we help our customers grow, we've seen the durability of our CAG recurring annuity revenues continue to increase. This chart shows customer retention rates for U.S. Catalyst consumables and reference labs since our go-direct launch in 2015. Through 2020, we saw U.S. consumable revenue retention reach nearly 99% and lab revenue retention approach 98%, with these very high levels sustaining through the first half of 2021. We're also making great progress on the rapid assay front, with recent retention levels for our core vector-borne disease tests reaching 97%. These high customer retention levels reinforce the exceptional durability of our strong cash flows, supporting the high value we see in the IDEXX CAG franchise. High CAG Diagnostics recurring revenue growth has supported consistent expansion of our operating margins over time. Over the last 5 years, we've increased our operating margins by 900 basis points on a comparable basis, balanced between gross margin gains and operating expense leverage. These gains accelerated in 2020 as we benefited from reduction in costs in key areas, such as T&E associated with the pandemic restrictions and tightly controlled costs in an uncertain environment. As we'll discuss, we plan to build on these strong trends as part of our financial model as we invest towards long-term development of our attractive high-return core businesses. As we look ahead to the next 5 years, we see the potential to sustain 10%-plus organic revenue growth. The foundation of our goals is the potential to achieve sustained double-digit organic revenue gains in both U.S. and international CAG Diagnostics recurring revenues. Our 11%-14% CAG Diagnostics recurring revenue growth goals build on the significant expansion of our annuity revenues over the last 5 years and is actually a slightly higher growth rate at the low end than our prior 5-year plan. Increased optimism in our growth potential is supported by some of the key demand trends highlighted in earlier presentations today, as well as our increased ability to execute globally through our strengthened direct commercial model. In addition to these drivers, we see the potential for 10%-plus constant currency revenue growth in our veterinary software and digital imaging businesses using our strategies to expand our cloud-based software solutions and related services. We intend to continue expanding our global premium instrument install base steadily, with an emphasis on high-value new and competitive placement gains and expansion of new platforms such as ProCyte One and SediVue, supporting solid annual gains in CAG capital revenues. In our other core businesses, we see the potential for sustained high single-digit growth in our highly durable and profitable water business. These gains will be supported by continued high-return investment in our direct commercial capability, focused on expanding microbiology testing and our E. coli testing products, as well as efforts to develop new growth opportunities in areas like Legionella pneumophila testing. We're also targeting mid to high single-digit long-term growth in our LPD business. We're focused on driving global demand development with an increasing emphasis on recurring revenue producer-driven segments like pregnancy testing. We're seeing a long-term growth opportunity in LPD driven by increasing demand from livestock producers for animal health and productivity improvement. The largest absolute revenue driver of our growth plan will be the continued rapid expansion of U.S. CAG Diagnostics recurring revenues, which we're targeting to grow on average 10%-13% annually over the next five years. We've made refinements to our five-year growth driver waterfall to reflect our progress in the development of our U.S. business. To incorporate more recent dynamics supporting strong underlying demand growth for diagnostics. In terms of the building blocks of this outlook, we expect continued solid underlying demand growth drivers reflected in a 3%-4% annual expansion in pet clinical visits, including approximately 1% in benefit from new practice formation. Growth in diagnostic utilization, including benefits from adoption of new IDEXX innovations, remains a key driver of our growth plans. Overall, the 4%-5% growth contribution aligns with an increase of average inclusion of blood work and overall chemistry panels from 18% to approximately 20%-21% over the next 5 years. These gains will be supported by continued expansion of our Preventive Care initiatives, consistent with our goals to build a base of 10,000 engaged Preventive Care customers. This will help drive an increase of inclusion blood work in wellness visits from 9% to approximately 12%-13% over the next five years. In addition to the benefits that will flow from our focus on expanding demand for diagnostic testing, we expect to add approximately 1% of annual growth from net customer acquisition, reflecting continued progress in expanding our loyal customer base. Finally, building on our strong annual volume growth, we expect to sustain 2%-3% annual net price realization, leveraging our highly differentiated solutions. In international regions, we're targeting to grow CAG Diagnostics recurring revenues even faster in the 13%-16% range, building on our strong recent momentum and strengthen commercial execution. Looking forward, we expect solid 3%-4% base clinical visit growth in international regions, including an estimated 1.5% benefit from new practice formation. We're targeting to expand our Catalyst space in the range of 4,000-5,000 analyzers annually, with an increasing percentage of total placements at new and competitive accounts. We'll also benefit from the global expansion of ProCyte One, which will help drive a targeted 20,000-plus unit expansion in our global premium hematology instrument base, with the majority of this expansion in international regions. New placements of best-in-class IDEXX technology sets the foundation for sustained double-digit growth in our premium install base, providing an uplift to utilization growth as customers convert to more advanced platforms. Combined, we estimate this will add 5%-6% in incremental CAG recurring revenue growth in international. Our VDC model and IDEXX 360 programs will augment these initiatives, adding 3%-4% in annual IDEXX recurring revenue growth through additional expansion of IDEXX customer utilization and adoption of our testing innovations, including benefits from continued high growth in our leading international reference lab network. Combined with an expectation for approximately 2% annual net price appreciation, these building blocks point to sustained strong double-digit organic growth in our international CAG business. Double-digit growth in our CAG diagnostic annuity will support continued expansion of our gross margins. This chart highlights our overall gross margins in our CAG business, which have continued to expand since we last shared this analysis, along with average gross margins across in-house diagnostics, reference lab services, and software and diagnostic imaging systems. A key metric we focus on is the incremental gross margin we earn as we increase growth in these core areas. The incremental gross margins that flow from in-clinic diagnostics, from adding services to our scale reference laboratory base, and through expanding cloud-enabled software and digital imaging services are all at 60% or higher. These high incremental returns from CAG recurring revenue gains gives us confidence to invest in CAG business development, where we see the potential for sustainable incremental growth. Looking forward, we're planning to lean in and invest towards the strong long-term growth potential we see for our business. In terms of areas of focus, we'll continue to invest towards innovation and R&D with a long-term emphasis on platform development, new menu, and information management capabilities. We'll also develop the significant long-term opportunity in international regions through high-return expansion of our direct commercial capability, including initiatives to enable our sales efforts through enhanced software capability and customer education. As we expand, we'll leverage our strong cash flows to invest in programs like IDEXX 360 that accelerate the adoption of best-in-class IDEXX technology. We'll also continue on our path towards becoming an integrated system solution provider through expansion of our customer-facing software capability that supports the growth and productivity of our customers and through advancement of data insight and artificial intelligence capability aligned with raising standards of companion animal healthcare. As we invest to drive global business development, we plan to deliver continued solid annual operating margin improvement, building on the strong gains we've made in recent years. We see runway to continue enhancing our overall gross margins aligned with our business focus as a differentiated innovative technology company. We expect to continue to benefit from the same positive drivers in terms of gross margin improvement, including fast growth and high incremental margin recurring CAG revenues, moderate net price increases aligned with our value proposition, and continued lab and manufacturing productivity gains. While expanding gross margins, we expect to continue to advance growth-oriented investments related to new customer acquisition, reference lab systems and network capacity, and in-house manufacturing capacity aligned with our double-digit organic growth plans. In terms of operating expense leverage, we also see this as a positive driver for operating margins, primarily through areas such as G&A leverage. We expect to sustain increased investment in sales and marketing capabilities at or near the rate of revenue growth, led by efforts to develop our business internationally. We also expect to sustain investment in R&D at the rate of revenue growth, building on our substantial innovation advantage. We'll continue to target 50 to 100 basis points of annual comparable margin improvement over the next five years as we invest towards the high return organic growth opportunities we see in our business. Our long-term plans also target continued strong cash flow generation. We've historically achieved a very high rate of net income conversion into free cash flow, which we project will sustain at rates of 80% to 90% of net income over the long term. Our strong free cash flow outlook is supported by consistent expectations for average annual capital spending as a percentage of revenues of 4%-5%, balanced primarily across reference lab capacity, self-manufacturing initiatives, and capitalized software development. As we work to support the high recent levels of growth in our business, we're evaluating potential near to moderate term investments to expand our industrial footprint, as well as select opportunities to own key facilities in our building network to optimize financial returns. This may create some annual variability in these investment levels. An additional capital allocation focus will be on acquisitions that complement our strategic growth plans. We've deployed approximately $350 million of capital over the last 10 years aligned with this approach, with an emphasis on high return close-in acquisitions in areas like reference labs, and more recently, increased investments in information technology capability, such as our recent acquisition of ezyVet. We anticipate continuing to emphasize these areas of focus moving forward, offering additional opportunities to augment our service offerings and global network capabilities. In terms of our balance sheet, we're in a very strong position. We have low leverage levels and a well-phased tenor to our current debt structure, with 100% of total debt at fixed rates as of the end of the second quarter. Our leverage ratios have contracted over a couple of phases during the last few years, including benefits from a more conservative management approach applied through the pandemic. We feel comfortable with the current capital structure, which provides significant capacity and flexibility for incremental investment to support our strategic growth priorities. As we advance our long-term plans, we intend to deploy a consistent capital allocation approach aligned with supporting our focused core business growth strategy and maximizing shareholder value. Our priority will be on supporting high incremental return investment and driving organic growth in our core businesses and targeted M&A that complements our growth strategy and value proposition. Given our strong cash flow, we also expect to continue to allocate excess capital to share repurchases, which we believe are supported by IDEXX's long-term growth potential and the extraordinary durability of our recurring revenue business model. We deploy capital on this front very effectively over time through a share buyback approach with varied investment pace. Since inception of our share repurchase program, we've repurchased over 40% of the company shares outstanding for an average price of $32 per share, split adjusted, supporting substantially enhanced per share returns for long-term IDEXX shareholders. In summary, we continue to see strong long-term growth potential for our business centered on continued expansion of our CAG Diagnostics recurring revenue annuity. Our conviction about this opportunity has only been strengthened through the recent pandemic. We intend to continue to advance high return investments aligned with our strategy while delivering continued strong financial performance. This is reflected in our consistent goals for 15%-20% annual comparable EPS gains enabled by strong organic revenue growth of 10%+, solid comparable operating margin expansion of 50-100 basis points annually, and continued benefits from capital allocation leverage. That concludes my comments. We'll now take a brief break and return with our Q&A panel. Welcome back from the break, and thank you for joining us for our Q&A session. I'm joined on the stage by my executive management team, Tina, Brian, Jim, and Mike. Let's get started. I'd like to now turn it over to the operator. Operator, please go ahead. Thank you. We will now begin the question-and-answer session. Our first question comes from Michael Ryskin. Please go ahead. Your line is open. Hey, guys. Thanks for taking the questions. Thanks for the Analyst Day and the entire presentation. Really helpful as always. I wanna start with the long-term growth outlook. I think Kerry, during her session, really emphasized that you see multiple drivers for upside, you know, tailwinds of the puppy boom, diagnostics utilization, diagnostics intensity. You talked about maybe I think 100 basis points improved outlook for the overall market. You also raised the lower end of the U.S. CAG Dx by about one point. You raised the OUS CAG Dx by 1 point, and yet the overall five-year plan is unchanged at 10 plus. I just wanna make sure I'm not missing anything else in the bridge. Or put another way, what do you see to raise that long-term outlook to, you know, 11 plus or 12 plus going forward? Yeah, Mike, I think you identified the way that we thought about this, which was that, you know, going back to 2019, the last time we've shared our long-term outlook, the key driver of our growth is the CAG Diagnostics recurring revenue. We've raised the lower end of our long-term ranges on top of the growth data that we achieved in the pandemic, which was above expectations. I think the theme there is that we've got a higher level of confidence that we can sustain the strong long-term growth that we see in the business. The CAG Diagnostics part of that outlook is 11%-14%. I think that is above the market growth rates that were highlighted, and just reflects the overall positive tailwinds we see net in the business and also our enhanced level of execution. We'll look forward to continuing to deliver against our goals. As we noted, we've over-delivered over the last five years, so if we can build on that strong track record of performance. Okay, thanks. Then, a follow-up, if I may. On the innovation, you probably took the introduction slide, that's an area that we're always interested in, you know, where we're going to see the next wave of product launches. You've had a really steady stream here in the past few years. Most recently, the ProCyte One has done very well. I'm just curious, where are you investing now? Again, sort of the way we think about it is, where do you see the biggest unmet medical need in the practice? You know, across your entire suite, across the reference lab, point of care, you know, the consulting and the services. Where are the pockets that vets are coming to you saying, "This is where we need the most help? This is where there's a gap in the portfolio? Yeah. Good morning, Mike. We're very, very excited by the opportunity in general, across really the wide spectrum of challenging both clinical and business problems. I would point you back to the, you know, the slide I shared with you on the four areas of focus within our innovation agenda. There's obviously new platforms, you know, menu expansion, customer-facing software, you know, AI. If you think about how we build from an innovation and problem-solving standpoint, yeah, much of it is cumulative, and I think you saw that in 2020, where we've had, you know, 6 substantial new product introductions. Obviously we're very excited on being able to build in that. We've highlighted a couple of areas in the presentation. For example, Clinical Decision Support is obviously a very exciting area for us, and it supports both the capacity and complements what veterinarians are asking for. They're extremely busy, really across, you know, the board. They tend to be, at least in general practices, responsible for everything from wellness to, you know, caring for the sick patient that comes in and being able to supplement, you know, these folks with Clinical Decision Support and some of the specialty resources that Mike identified is clearly an area of focus for us. I would also highlight that innovation doesn't just happen on the product or service front. There's also business model innovation. If you think about, you know, speaking of ProCyte One, to your point, it's not just a, you know, exceptional analyzer, but it continues our pay-per-run and auto-replenishment business model. I think that's a great example. Innovation which helps on the business end of the practice. All right. Thanks so much. I'll yield the floor. Thank you. Our next question is from Chris Schott. Please go ahead. Your line is open. Great. Thanks so much for the questions. Just two for me. First was just a bigger picture, international diagnostic use question. I look at your long-term plan. Seems like we're about 7% of visits there, seeing blood work. You're targeting 18% in 25 years. I guess my question is conceptually, why couldn't that build up even quicker than you lay out in that plan? It seems like some of the stats you give in terms of pet owner engagement and willingness to pay are basically the same ZIP code as the U.S. in some markets. You've obviously learned a lot as you built the U.S. market in terms of how to best engage with the vets, and it seems you're applying a lot of those learnings ex-U.S. I guess the question is how do you, how do you think about that evolution over time? I guess why couldn't we see a U.S.-like standard of care kind of emerge in Europe or rest of world a lot faster? My second question was operating margins. You've averaged a little bit less than 200 basis points over the last 5 years. Just help me bridge a bit to that 50-100 basis point target for the next 5 years. I guess, is there conservatism in there or just any other factors we should be keeping in mind as we think about, you know, the margin progression over time? Thanks so much. Great. Jim, can I have you talk a bit about our approach internationally and what we see the opportunity to be? Yeah, sure. Yeah, Chris, as you highlighted, we have a tremendous opportunity internationally. There is change management associated with inspiring veterinarians to, you know, do relevant diagnostic testing to increase the standard of care. That's a process, and that's why we're, you know, actively expanding in key countries around the world, our commercial presence. That's not just from an account management perspective, but it's from an entire commercial ecosystem. It includes professional service veterinarians. It includes marketing personnel, field service professionals and so forth. It's a process as you work with veterinarians and their staffs to implement things like Preventive Care protocols. Sick, animal testing and so forth. It takes a while, it's change management, but, we believe, you know, in the opportunity, which, as we've highlighted, is truly a multi-decade opportunity for IDEXX. Thanks, Jim. Brian, would you like to go second? On your second question, we've had great progress improving the operating margins, and it's been as we highlighted, the recurring CAG diagnostic annuity dimension that high incremental flow through on gross margin is something that supported the 900 basis points of comparable margin expansion we had over the last five years, and we think we can build on that. We are growing off a higher base, and we will have some investments that were intended to advance growth-oriented investments that are aligned with developing the long-term market opportunity that we highlighted today. I think that, you know, that, you know, reinvesting in this high return recurring annuity model is something that we're very committed to. We think it's yielded high return on invested capital over time, and that's factored into our thinking on the 50 to 100 basis points of operating margin improvement goal that we highlighted. Thanks so much. Thank you. Our next question comes from Jonathan Block. Please go ahead. Your line is open. Great. Thanks. Good morning. First question, I think it was slide 12, the percent of U.S. clinical visits including blood work. I think I got the numbers right, it's increasing about 60 bps per annum. It's set up to 90 bps in 2020. The accelerating rate of diagnostics penetration, I believe was entirely coming from non-wellness being the driver. I think the wellness at 50 bps per annum has sort of remained unchanged for some time at 50 bps per annum for the past decade or so. You know, you guys have thrown a lot at preventive care, the PCC program, and you've had a lot of success with the number of programs signing up over the past two to three years. Can you just talk about why we haven't seen an acceleration in the wellness, you know, from that 50 bps level, even in light of PCC? You know, what is it gonna take for you guys to sort of get that moving or accelerating to a higher step function per year? Thanks. Good morning, John. There is some variability, you know, by period, by year, you know, in those numbers. I think Preventive Care and that whole initiative has been tremendously successful. We've talked about contributing to about a, you know, percent or so to growth. It's an area of focus for us because it's an area of focus for our customers. You know, just about every practice in the U.S. does wellness visits, and they practice preventive care. The question really is whether they do it systematically. The approach that we've taken really is end-to-end. You know, we've seen, as you pointed out, really nice adoption. Keep in mind that when a practice, you know, adopts Preventive Care from a program standpoint, which is care protocols or care guidelines, it's, you know, training, it involves pet owner communication. There's a lot of pieces to this. It's not like they go from 0 to 100% of patients overnight. There's a ramp, you know, depending upon the practice and the effort they put behind it. You know, there's typically a multi-year ramp. We continue to be very optimistic that the Preventive Care and wellness visits is something that, you know, we can grow and grow aggressively, you know, over time. There's a time and distance dimension to it. Got it. Understood. Second question, I'll just pivot over to fecal and, you know, maybe the perceived threat, or we're getting more questions from investors. I think there was a slide which showed eyeballing it. About 70% of your fecal lab revenue seems to be on the antigen platform, give or take around that percentage. Jay, maybe if you could just comment, do you believe that uptake on antigen helps protect you from some of these in-clinic solutions that are out there or will be out there in the marketplace in terms of trying to take more fecal testing in clinic? Would love your thoughts there. Do you think any uptake on these platforms, if there is gonna come from a move of manual to in-clinic and not reference lab to in-clinic platform? Hopefully that made sense. Thanks. Sure. Mike, if you would talk a little bit about our fecal antigen franchise and our approach. Sure. Thanks, Jay, and thanks, John. Let me just start with the traditional microscope, whether it's, you know, manually looking through a microscope or an automated microscope, it misses infections. As you know, fecal antigen, highly differentiated, combined with a traditional fecal float, detects twice as many infections. A microscope alone, whether or not you automate that, you're still not capturing all those infections. You saw in my presentation just the tremendous opportunity and growth that we do have, fueled by our highly differentiated fecal antigen test, which is really a key component of sick and well protocols. Back to the previous question about preventive care, a really foundational element of preventive care, really any fecal test- That does not include fecal antigen is incomplete. We feel very good about the growth and continued opportunity with fecal. Yeah, John, you know, keep in mind, there are 40 million, just taking the U.S. market, there are more than 40 million tests that happen, you know, on an annual basis. It's a very significant market. It's one that we've targeted, as Mike pointed out, with really differentiated technology. We continue to remain, you know, very, very optimistic and very, you know, bullish on our approach. Thank you. Our next question comes from Nathan Rich. Please go ahead. Your line is open. Good afternoon. Thanks so much for the questions. I wanted to ask about the served market in Europe. I think it was 8% penetration on the slide you showed by region. I was surprised it was so far behind North America, which I think was at 22%. Could you maybe just talk about the dynamics in Europe and, you know, how much variability do you see kind of country to country? You know, as you think about the forward, you know, what do you see as sort of the lowest hanging opportunities to improve penetration in those markets? You know, I guess, you know, as an example, as you expand the sales force in Germany and France, kind of what are you asking them to prioritize as they engage with practices? Sure. Thank you, Nathan. Jim, would you speak to that? Yeah, I'd be happy to. Nate, as you know, our model here in the U.S. went through multiple years of expansion to really arrive at a high touch account management model, not just again from a VDC perspective, from an entire ecosystem standpoint. That's not only just creating demand, but it's also educating and driving awareness of our unique and differentiated products and services and how they fit into clinical protocols. When you look at countries like Germany and France and Italy and Spain, and really across Europe, there's a similar type of opportunity, but we've just need to bring those customers along, That's hence the reason why we're expanding our commercial presence in some of these key countries. It's to provide that high touch to our customers, which is all about education, awareness, and inspiring relevant diagnostic testing. It's a wonderful opportunity. Again, to Jay's point, it's a time and distance type opportunity for us as well. Keep in mind, Nate, that when you take a look at, you know, the European customer, which is obviously, you know, consists of a number of different countries. Today, they spend as much as we spend in the U.S. or more in some cases on things like therapeutics and specialty diets. The money's there, the interest is there. You know, to Jim's point, there's an awareness, an education, and change management component to this. That's where our ProCyte One, for example, which is just, you know, I think tailor-made for some of these markets, you know, fit in. Tina, could you speak to ProCyte One and how that launch is going and a little bit about the market? Absolutely delighted to, Jay. Thank you. You know, I would say that in my 16 years of experience at IDEXX launching a lot of products, this has been the most successful analyzer launch. Right out of the gate, customers are loving its usability, performance, accuracy. What happens is when you have such exceptional customer experience, the confidence of our sales teams is very high. They're knocking it out of the park. They've installed hundreds of analyzers in North America and Europe. The reason why we designed and built ProCyte One was to provide 100,000 clinics out there affordable access to best-in-class technology. You know, as we think about what it's going to do for the customers, it's just phenomenal. As Jim highlighted in his own in his presentation, ProCyte One brings along a whole analyzer suite. It brings along reference lab business, rapid assay with our IDEXX 360 program. It's going to be very, pardon the pun, instrumental in advancing our global commercial goals, especially in Europe. Yes. As you tie together some of these themes, you know, it's a combination of account management and expanding our commercial footprint. Tina talked about the product piece and how that fits in. You know, Mike talked about reference lab network. It's all these pieces together that could drive the usage of diagnostics to more of a benchmark level that we see in the U.S. That's helpful. If I could ask a follow-up on the commercial expansion, can you help us kind of understand what the long-term roadmap look like? You know, how many markets do you think could benefit from expanding the sales force? Maybe how does this compare to past periods of investment? Sure, Jim, if you would take that again. Yeah, sure. Thank you, Jay. We've got a multi-year roadmap of prioritized and sequenced investments we're planning to make country by country, region by region. That really speaks to the opportunity we have truly around the world. You know, our strategic intent is to do several of these a year in a very disciplined and programmatic way. There's really opportunity around every corner of the globe, we're just trying to do this in a very disciplined way. It's a multi-year roadmap. Thanks, Jim. Great. Really appreciate the comments. Thank you. Thank you. Our next question comes from Katie Tryce. Please go ahead, your line is open. Hi. Thanks for taking my question. Can you just provide an update on what you're experiencing in the reference lab market from a competitive landscape perspective, both in the U.S. and OUS? How are you thinking about reference lab investments, particularly across the international landscape? Thanks. Sure. Mike, if you would take that, please. Yeah, sure. Thanks, Katie. You know, what I shared in the presentation showed exceptional levels of service. You saw the world-class Net Promoter Score. Brian shared the very high retention revenue retention rates that we have. That comes from capability that we've developed over decades. Buying a reference lab or building a reference lab or even having a collection of labs is incomplete without broad set of capabilities that I described. That includes a sophisticated hub and spoke network that's tied together with integrated information systems to deliver a service level that is often twice a day or by 8:00 A.M. the next morning, moving samples seamlessly across that network, as well as platforms like VetConnect PLUS that bring together the diagnostic experience. You learned about Clinical Decision Support and mobile. The talent, both in the lab, as part of IDEXX Consulting Services, also the talent in the field, with our customers that Jim described. These are capabilities that we've developed over decades, and it's, you need a lot more than, you know, buying a lab or a physical lab or opening a physical lab or collection. You need these additional capabilities. We feel very good about our position in reference lab, regionally and globally around the world. Mike, if I might just add a comment. I think Germany is a great example where we coupled the commercial expansion with the investment you made in Kornwestheim. It's not only ensuring you've got the feet on the street, but you've got the right products, services, and service levels to be, you know, extremely competitive and differentiated. Absolutely. Thanks, Jay. Thank you. Okay, that's great. We've also been seeing, I think, more investment across the cloud-based options from competitors as well. Can you just help us better understand how are you winning in the market there relative to those other offerings? To what extent are you seeing competitive wins and displacements versus upgrades from your own legacy Cornerstone offering? The march towards, I mean, people being on a cloud system, is that fairly linear in nature? Is that the right way to think about it? Thanks. Yeah, if Katie, I think you were asking about software. You were breaking it up, you know, a little bit. You know, we're very optimistic and we're very bullish on our software, you know, portfolio and providing, you know, customers with options, you know, across the board. You know, cloud-based, obviously, and our Cornerstone solutions are in over 6,000 of our, you know, some of our biggest customers. That's software continues to be a focus for us, and it continues to be a focus for us, you know, because at the end of the day, our customers are asking for it. They've never been busier. You know, software helps them run their practices better, both from a business, but as importantly and more importantly, the medical or clinical end. It supports staff productivity. You know, it supports internal and client communications. There's just, you know, a lot of, I think, both productivity and standard of care benefits in having a complete software solution. As Michael shared with you know, customers who use our software solutions, it just all works better together. They tend to use more diagnostics also. Thank you, operator, for the questions. I'd like to thank everyone for joining us for today's virtual Investor Day. We trust that you've enjoyed learning more about the immense opportunity to expand the standard of care in veterinary medicine while delivering strong financial returns. I'd like to thank the management team and our employees for their dedication to our purpose and for their continued high level of execution. This concludes today's event. We hope to see everybody in person at next year's Investor Day. Until then, stay safe and stay well. Thank you, ladies and gentlemen. Thank you for participating. You may now disconnect.