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ResMed Inc. Announces Results for the Third Quarter of Fiscal Year 2023

ResMed Inc.
ResMed Inc.

Year-over-year revenue grows 29%, operating profit up 28%, non-GAAP operating profit up 27%

Note: A webcast of ResMed’s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com

SAN DIEGO, April 27, 2023 (GLOBE NEWSWIRE) -- ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2023.

Third Quarter 2023 Highlights
All comparisons are to the prior year period

  • Revenue increased by 29% to $1,116.9 million; up 31% on a constant currency basis

  • Gross margin contracted 150 bps to 55.3%; non-GAAP gross margin contracted 200 bps to 56.1%

  • Income from operations increased 28%; non-GAAP operating profit up 27%

  • Operating cash flow of $282.6 million

  • Diluted earnings per share of $1.58; non-GAAP diluted earnings per share of $1.68

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“During the third quarter, we significantly ramped up production and delivery of our cloud-connected flow generator devices to meet ongoing high demand from customers, resulting in strong device sales growth across our global markets,” said Mick Farrell, ResMed’s CEO. “We now have full global availability of our connected AirSense 10 platform, while we continue to ramp production and availability across more geographies of our AirSense 11 platform. The bottom line is this: We can now support global customer demand for CPAP and APAP devices to serve the entire sleep device market. This is great news for physicians, providers, and especially for patients. We also saw very strong growth in our mask and patient interfaces businesses globally, demonstrating a sustainable focus on patient adherence and resupply. Our outside-hospital software-as-a-service business achieved high-single-digit growth organically and reached well into double-digit growth with a full quarter of contribution from our MEDIFOX DAN acquisition that we closed last November. We remain laser-focused on delivering lifesaving therapy solutions and accelerating the adoption of digital health in sleep apnea, COPD, insomnia, and out-of-hospital care. During the last 12 months, we improved over 156 million lives, and we are well on our way to our goal of helping 250 million people sleep better, breathe better, and live higher-quality lives with outside-hospital care in 2025.”

Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts

 

Three Months Ended

 

March 31,
2023

 

March 31,
2022

 

% Change

 

Constant
Currency (A)

Revenue

$

1,116.9

 

 

$

864.5

 

 

29

%

 

31

%

Gross margin

 

55.3

%

 

 

56.8

%

 

(3

)

 

 

Non-GAAP gross margin (B)

 

56.1

%

 

 

58.1

%

 

(4

)

 

 

Selling, general, and administrative expenses

 

228.5

 

 

 

182.4

 

 

25

 

 

28

 

Research and development expenses

 

76.4

 

 

 

66.8

 

 

14

 

 

16

 

Income from operations

 

300.7

 

 

 

234.3

 

 

28

 

 

 

Non-GAAP income from operations (B)

 

321.2

 

 

 

253.0

 

 

27

 

 

 

Net income

 

232.5

 

 

 

179.0

 

 

30

 

 

 

Non-GAAP net income (B)

 

247.8

 

 

 

193.3

 

 

28

 

 

 

Diluted earnings per share

$

1.58

 

 

$

1.22

 

 

30

 

 

 

Non-GAAP diluted earnings per share (B)

$

1.68

 

 

$

1.32

 

 

27

 

 

 


 

Nine Months Ended

 

March 31,
2023

 

March 31,
2022

 

% Change

 

Constant
Currency (A)

Revenue

$

3,100.9

 

 

$

2,663.4

 

 

16

%

 

20

%

Gross margin

 

56.1

%

 

 

56.4

%

 

(1

)

 

 

Non-GAAP gross margin (B)

 

56.8

%

 

 

57.6

%

 

(1

)

 

 

Selling, general, and administrative expenses

 

633.3

 

 

 

544.5

 

 

16

 

 

21

 

Research and development expenses

 

209.5

 

 

 

189.3

 

 

11

 

 

13

 

Income from operations

 

856.6

 

 

 

744.9

 

 

15

 

 

 

Non-GAAP income from operations (B)

 

917.5

 

 

 

801.3

 

 

15

 

 

 

Net income

 

667.9

 

 

 

584.4

 

 

14

 

 

 

Non-GAAP net income (B)

 

714.3

 

 

 

631.5

 

 

13

 

 

 

Diluted earnings per share

$

4.53

 

 

$

3.97

 

 

14

 

 

 

Non-GAAP diluted earnings per share (B)

$

4.85

 

 

$

4.30

 

 

13

 

 

 


(A)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

(B)

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

 

 

Discussion of Third Quarter Results

All comparisons are to the prior year period unless otherwise noted

  • Revenue grew by 31 percent on a constant currency basis, driven by increased demand for our sleep and respiratory care devices as well as reduced competitive supply.

    • Revenue in the U.S., Canada, and Latin America, excluding Software-as-a-Service, grew by 32 percent, primarily due to the factors discussed above.

    • Revenue in Europe, Asia, and other markets, excluding Software-as-a-Service, grew by 28 percent on a constant currency basis.

    • Software-as-a-Service revenue increased by 35 percent, reflecting incremental revenue from our acquisition of MEDIFOX DAN and continued organic growth in our SaaS portfolio.

  • Gross margin decreased by 150 basis points and non-GAAP gross margin decreased by 200 basis points, mainly due to unfavorable product mix and higher component costs, partially offset by an increase in average selling prices.

  • Selling, general, and administrative expenses increased by 28 percent on a constant currency basis. SG&A expenses improved to 20.5 percent of revenue in the quarter, compared with 21.1 percent in the same period of the prior year. These changes in SG&A expenses were mainly due to increases in employee-related expenses and increases in travel expenses.

  • Income from operations increased by 28 percent and non-GAAP income from operations increased by 27 percent.

  • Net income for the quarter was $232.5 million and diluted earnings per share was $1.58. Non-GAAP net income increased by 28% to $247.8 million, and non-GAAP diluted earnings per share increased by 27% to $1.68, predominantly attributable to strong sales, partially offset by gross margin contraction.

  • Operating cash flow for the quarter was $282.6 million, compared to net income in the current quarter of $232.5 million and non-GAAP net income of $247.8 million. During the quarter we paid $64.6 million in dividends.

Other Business and Operational Highlights

  • Announced the retirement of David Pendarvis, Chief Administrative Officer & Global General Counsel, effective June 30, 2023. An internal search for ResMed’s new Global General Counsel is underway and expected to be completed before Pendarvis retires. In parallel, announced the promotion of Amy Wakeham to Chief Communications & Investor Relations Officer, effective April 1, 2023. Wakeham joined ResMed in June 2018 and previously led IR at several other public companies.

  • Published 2023 Global Sleep Survey as part of National Sleep Awareness Week (March 12-18) and World Sleep Day (March 17). The survey, conducted in January, asked over 20,000 respondents in 12 countries what’s keeping them up at night; survey results aim to build awareness of the critical role good sleep plays in physical and mental health. Of note, 81% of respondents experience one or more symptoms indicating poor sleep quality, despite 64% saying they’re satisfied with the quantity of their sleep.

Dividend program
The ResMed board of directors today declared a quarterly cash dividend of $0.44 per share. The dividend will have a record date of May 11, 2023, payable on June 15, 2023. The dividend will be paid in U.S. currency to holders of ResMed’s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests (“CDIs”) trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be May 10, 2023, for common stockholders and for CDI holders. ResMed has received a waiver from the ASX’s settlement operating rules, which will allow ResMed to defer processing conversions between its common stock and CDI registers from May 10, 2023, through May 11, 2023, inclusive.

Webcast details
ResMed will discuss its third-quarter fiscal year 2023 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on ResMed’s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the “Q3 2023 Earnings Webcast” to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13737758. The telephone replay will be available until May 11, 2023.

About ResMed
At ResMed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit ResMed.com and follow @ResMed.

Safe harbor statement
Statements contained in this release that are not historical facts are “forward-looking” statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements – including statements regarding ResMed’s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, litigation, and tax outlook – are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in ResMed’s periodic reports on file with the U.S. Securities & Exchange Commission. ResMed does not undertake to update its forward-looking statements.

Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)

 

Three Months Ended

 

Nine Months Ended

 

March 31,
2023

 

March 31,
2022

 

March 31,
2023

 

March 31,
2022

 

 

 

 

 

 

 

 

Net revenue

$

1,116,898

 

 

$

864,500

 

 

$

3,100,936

 

 

$

2,663,390

 

 

 

 

 

 

 

 

 

Cost of sales

 

490,824

 

 

 

362,321

 

 

 

1,340,660

 

 

 

1,128,314

 

Amortization of acquired intangibles (1)

 

8,322

 

 

 

10,982

 

 

 

22,001

 

 

 

33,271

 

Total cost of sales

$

499,146

 

 

$

373,303

 

 

$

1,362,661

 

 

$

1,161,585

 

Gross profit

$

617,752

 

 

$

491,197

 

 

$

1,738,275

 

 

$

1,501,805

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

228,457

 

 

 

182,401

 

 

 

633,317

 

 

 

544,483

 

Research and development

 

76,436

 

 

 

66,801

 

 

 

209,498

 

 

 

189,258

 

Amortization of acquired intangibles (1)

 

12,188

 

 

 

7,730

 

 

 

29,701

 

 

 

23,175

 

Acquisition related expenses

 

 

 

 

 

 

 

9,157

 

 

 

 

Total operating expenses

$

317,081

 

 

$

256,932

 

 

$

881,673

 

 

$

756,916

 

Income from operations

$

300,671

 

 

$

234,265

 

 

$

856,602

 

 

$

744,889

 

 

 

 

 

 

 

 

 

Other income (expenses), net:

 

 

 

 

 

 

 

Interest income (expense), net

$

(14,964

)

 

$

(5,462

)

 

$

(32,436

)

 

$

(16,770

)

Loss attributable to equity method investments

 

(183

)

 

 

(2,627

)

 

 

(5,037

)

 

 

(5,927

)

Gain (loss) on equity investments

 

6,418

 

 

 

(1,735

)

 

 

11,506

 

 

 

(527

)

Other, net

 

(2,564

)

 

 

1,878

 

 

 

(5,773

)

 

 

729

 

Total other income (expenses), net

 

(11,293

)

 

 

(7,946

)

 

 

(31,740

)

 

 

(22,495

)

Income before income taxes

$

289,378

 

 

$

226,319

 

 

$

824,862

 

 

$

722,394

 

Income taxes

 

56,878

 

 

 

47,307

 

 

 

156,970

 

 

 

138,018

 

Net income

$

232,500

 

 

$

179,012

 

 

$

667,892

 

 

$

584,376

 

 

 

 

 

 

 

 

 

Basic earnings per share

$

1.58

 

 

$

1.22

 

 

$

4.55

 

 

$

4.00

 

Diluted earnings per share

$

1.58

 

 

$

1.22

 

 

$

4.53

 

 

$

3.97

 

Non-GAAP diluted earnings per share (1)

$

1.68

 

 

$

1.32

 

 

$

4.85

 

 

$

4.30

 

 

 

 

 

 

 

 

 

Basic shares outstanding

 

146,914

 

 

 

146,240

 

 

 

146,681

 

 

 

145,969

 

Diluted shares outstanding

 

147,395

 

 

 

146,962

 

 

 

147,400

 

 

 

147,034

 


(1)

See the reconciliation of non-GAAP financial measures in the table at the end of the press release.

 

 

Condensed Consolidated Balance Sheets
(Unaudited; $ in thousands)

 

March 31,
2023

 

June 30,
2022

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

227,894

 

 

$

273,710

 

Accounts receivable, net

 

686,264

 

 

 

575,950

 

Inventories

 

1,011,269

 

 

 

743,910

 

Prepayments and other current assets

 

412,388

 

 

 

337,908

 

Total current assets

$

2,337,815

 

 

$

1,931,478

 

Non-current assets:

 

 

 

Property, plant, and equipment, net

$

528,778

 

 

$

498,181

 

Operating lease right-of-use assets

 

127,508

 

 

 

132,314

 

Goodwill and other intangibles, net

 

3,353,302

 

 

 

2,282,386

 

Deferred income taxes and other non-current assets

 

366,476

 

 

 

251,494

 

Total non-current assets

$

4,376,064

 

 

$

3,164,375

 

Total assets

$

6,713,879

 

 

$

5,095,853

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

161,896

 

 

$

159,245

 

Accrued expenses

 

347,354

 

 

 

344,722

 

Operating lease liabilities, current

 

23,129

 

 

 

21,856

 

Deferred revenue

 

141,043

 

 

 

108,667

 

Income taxes payable

 

78,368

 

 

 

44,893

 

Short-term debt

 

9,901

 

 

 

9,916

 

Total current liabilities

$

761,691

 

 

$

689,299

 

Non-current liabilities:

 

 

 

Deferred revenue

$

108,875

 

 

$

95,455

 

Deferred income taxes

 

113,015

 

 

 

9,714

 

Operating lease liabilities, non-current

 

115,090

 

 

 

120,453

 

Other long-term liabilities

 

69,553

 

 

 

5,974

 

Long-term debt

 

1,575,963

 

 

 

765,325

 

Long-term income taxes payable

 

37,183

 

 

 

48,882

 

Total non-current liabilities

$

2,019,679

 

 

$

1,045,803

 

Total liabilities

$

2,781,370

 

 

$

1,735,102

 

Stockholders’ equity

 

 

 

Common stock

$

588

 

 

$

586

 

Additional paid-in capital

 

1,728,997

 

 

 

1,682,432

 

Retained earnings

 

4,088,057

 

 

 

3,613,736

 

Treasury stock

 

(1,623,256

)

 

 

(1,623,256

)

Accumulated other comprehensive income

 

(261,877

)

 

 

(312,747

)

Total stockholders’ equity

$

3,932,509

 

 

$

3,360,751

 

Total liabilities and stockholders’ equity

$

6,713,879

 

 

$

5,095,853

 

 

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows
(Unaudited; $ in thousands)

 

Three Months Ended

 

Nine Months Ended

 

March 31,
2023

 

March 31,
2022

 

March 31,
2023

 

March 31,
2022

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income

$

232,500

 

 

$

179,012

 

 

$

667,892

 

 

$

584,376

 

Adjustment to reconcile net income to cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

44,356

 

 

 

42,306

 

 

 

118,396

 

 

 

122,198

 

Amortization of right-of-use assets

 

8,434

 

 

 

9,302

 

 

 

23,967

 

 

 

26,636

 

Stock-based compensation costs

 

17,832

 

 

 

15,860

 

 

 

51,215

 

 

 

49,265

 

Loss attributable to equity method investments

 

183

 

 

 

2,627

 

 

 

5,037

 

 

 

5,927

 

(Gain) loss on equity investment

 

(6,418

)

 

 

1,735

 

 

 

(11,506

)

 

 

527

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

(12,629

)

 

 

15,689

 

 

 

(88,452

)

 

 

98,158

 

Inventories, net

 

(21,974

)

 

 

(70,227

)

 

 

(255,091

)

 

 

(209,476

)

Prepaid expenses, net deferred income taxes and other current assets

 

(19,961

)

 

 

(106,588

)

 

 

(86,607

)

 

 

(127,977

)

Accounts payable, accrued expenses, income taxes payable and other

 

40,240

 

 

 

27,722

 

 

 

31,012

 

 

 

(277,973

)

Net cash provided by operating activities

$

282,563

 

 

$

117,438

 

 

$

455,863

 

 

$

271,661

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

(28,817

)

 

 

(48,445

)

 

 

(85,223

)

 

 

(106,192

)

Patent registration and acquisition costs

 

(2,406

)

 

 

(3,712

)

 

 

(10,043

)

 

 

(17,449

)

Business acquisitions, net of cash acquired

 

 

 

 

 

 

 

(1,011,225

)

 

 

(35,915

)

Purchases of investments

 

(12,597

)

 

 

(4,250

)

 

 

(29,729

)

 

 

(16,614

)

Proceeds from exits of investments

 

3,937

 

 

 

6,802

 

 

 

3,937

 

 

 

6,802

 

(Payments) / proceeds on maturity of foreign currency contracts

 

11,780

 

 

 

110

 

 

 

18,961

 

 

 

(5,309

)

Net cash used in investing activities

$

(28,103

)

 

$

(49,495

)

 

$

(1,113,322

)

 

$

(174,677

)

Cash flows from financing activities:

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net

 

983

 

 

 

2,814

 

 

 

25,649

 

 

 

26,269

 

Taxes paid related to net share settlement of equity awards

 

(584

)

 

 

(2,253

)

 

 

(30,297

)

 

 

(52,278

)

Payments of business combination contingent consideration

 

(316

)

 

 

 

 

 

(316

)

 

 

 

Proceeds from borrowings, net of borrowing costs

 

 

 

 

 

 

 

1,070,000

 

 

 

160,000

 

Repayment of borrowings

 

(215,000

)

 

 

 

 

 

(260,000

)

 

 

(136,000

)

Dividends paid

 

(64,640

)

 

 

(61,418

)

 

 

(193,571

)

 

 

(183,853

)

Net cash (used in) / provided by financing activities

$

(279,557

)

 

$

(60,857

)

 

$

611,465

 

 

$

(185,862

)

Effect of exchange rate changes on cash

$

(208

)

 

$

207

 

 

$

178

 

 

$

(4,631

)

Net increase / (decrease) in cash and cash equivalents

 

(25,305

)

 

 

7,293

 

 

 

(45,816

)

 

 

(93,509

)

Cash and cash equivalents at beginning of period

 

253,199

 

 

 

194,476

 

 

 

273,710

 

 

 

295,278

 

Cash and cash equivalents at end of period

$

227,894

 

 

$

201,769

 

 

$

227,894

 

 

$

201,769

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP gross profit” and “non-GAAP gross margin” exclude amortization expense from acquired intangibles related to cost of sales and are reconciled below:

 

Three Months Ended

 

Nine Months Ended

 

March 31, 2023

 

March 31, 2022

 

March 31, 2023

 

March 31, 2022

 

 

 

 

 

 

 

 

Revenue

$

1,116,898

 

 

$

864,500

 

 

$

3,100,936

 

 

$

2,663,390

 

 

 

 

 

 

 

 

 

GAAP cost of sales

$

499,146

 

 

$

373,303

 

 

$

1,362,661

 

 

$

1,161,585

 

Less: Amortization of acquired intangibles (A)

 

(8,322

)

 

 

(10,982

)

 

 

(22,001

)

 

 

(33,271

)

Non-GAAP cost of sales

$

490,824

 

 

$

362,321

 

 

$

1,340,660

 

 

$

1,128,314

 

 

 

 

 

 

 

 

 

GAAP gross profit

$

617,752

 

 

$

491,197

 

 

$

1,738,275

 

 

$

1,501,805

 

GAAP gross margin

 

55.3

%

 

 

56.8

%

 

 

56.1

%

 

 

56.4

%

Non-GAAP gross profit

$

626,074

 

 

$

502,179

 

 

$

1,760,276

 

 

$

1,535,076

 

Non-GAAP gross margin

 

56.1

%

 

 

58.1

%

 

 

56.8

%

 

 

57.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:

 

Three Months Ended

 

Nine Months Ended

 

March 31, 2023

 

March 31, 2022

 

March 31, 2023

 

March 31, 2022

 

 

 

 

 

 

 

 

GAAP income from operations

$

300,671

 

$

234,265

 

$

856,602

 

$

744,889

Amortization of acquired intangibles—cost of sales (A)

 

8,322

 

 

10,982

 

 

22,001

 

 

33,271

Amortization of acquired intangibles—operating expenses (A)

 

12,188

 

 

7,730

 

 

29,701

 

 

23,175

Acquisition-related expenses (A)

 

 

 

 

 

9,157

 

 

Non-GAAP income from operations

$

321,181

 

$

252,977

 

$

917,461

 

$

801,335

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Non-GAAP Financial Measures
(Unaudited; $ in thousands, except for per share amounts)

The measures “non-GAAP net income” and “non-GAAP diluted earnings per share” are reconciled with GAAP net income and GAAP diluted earnings per share in the table below:

 

Three Months Ended

 

Nine Months Ended

 

March 31, 2023

 

March 31, 2022

 

March 31, 2023

 

March 31, 2022

 

 

 

 

 

 

 

 

GAAP net income

$

232,500

 

$

179,012

 

$

667,892

 

$

584,376

Amortization of acquired intangibles—cost of sales, net of tax (A)

 

6,207

 

 

8,374

 

 

16,531

 

 

25,373

Amortization of acquired intangibles—operating expenses, net of tax (A)

 

9,090

 

 

5,894

 

 

22,317

 

 

17,673

Acquisition related expenses, net of tax (A)

 

 

 

 

 

7,527

 

 

Reserve for disputed tax position (A)

 

 

 

 

 

 

 

4,111

Non-GAAP net income (A)

$

247,797

 

$

193,280

 

$

714,267

 

$

631,533

 

 

 

 

 

 

 

 

GAAP diluted shares outstanding

 

147,395

 

 

146,962

 

 

147,400

 

 

147,034

GAAP diluted earnings per share

$

1.58

 

$

1.22

 

$

4.53

 

$

3.97

Non-GAAP diluted earnings per share (A)

$

1.68

 

$

1.32

 

$

4.85

 

$

4.30


(A)

ResMed adjusts for the impact of the amortization of acquired intangibles, acquisition related expenses and the reserve for disputed tax positions from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.

ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed’s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP.

 

 

Revenue by Product and Region
(Unaudited; $ in millions, except for per share amounts)

 

Three Months Ended

 

March 31,
2023

(A)

March 31,
2022

(A)

% Change

 

Constant
Currency (B)

U.S., Canada, and Latin America

 

 

 

 

 

 

 

Devices

$

372.1

 

$

250.8

 

48

%

 

 

Masks and other

 

257.1

 

 

224.7

 

14

 

 

 

Total U.S., Canada and Latin America

$

629.1

 

$

475.4

 

32

 

 

 

 

 

 

 

 

 

 

 

Combined Europe, Asia, and other markets

 

 

 

 

 

 

 

Devices

$

235.8

 

$

182.3

 

29

%

 

36

%

Masks and other

 

115.2

 

 

105.6

 

9

 

 

15

 

Total Combined Europe, Asia and other markets

$

351.0

 

$

287.9

 

22

 

 

28

 

 

 

 

 

 

 

 

 

Global revenue

 

 

 

 

 

 

 

Total Devices

$

607.9

 

$

433.1

 

40

%

 

43

%

Total Masks and other

 

372.2

 

 

330.3

 

13

 

 

15

 

Total Sleep and Respiratory Care

$

980.1

 

$

763.4

 

28

 

 

31

 

 

 

 

 

 

 

 

 

Software-as-a-Service

 

136.8

 

 

101.1

 

35

 

 

 

Total

$

1,116.9

 

$

864.5

 

29

 

 

31

 

 

 

 

 

 

 

 

 


 

Nine Months Ended

 

March 31,
2023

(A)

March 31,
2022

(A)

%
Change

 

Constant
Currency (B)

U.S., Canada, and Latin America

 

 

 

 

 

 

 

Devices

$

1,057.1

 

$

771.5

 

37

%

 

 

Masks and other

 

765.4

 

 

681.8

 

12

 

 

 

Total U.S., Canada and Latin America

$

1,822.5

 

$

1,453.3

 

25

 

 

 

 

 

 

 

 

 

 

 

Combined Europe, Asia, and other markets

 

 

 

 

 

 

 

Devices

$

611.1

 

$

608.3

 

Nil%

 

9

%

Masks and other

 

307.9

 

 

304.2

 

1

 

 

12

 

Total Combined Europe, Asia and other markets

$

919.0

 

$

912.4

 

1

 

 

10

 

 

 

 

 

 

 

 

 

Global revenue

 

 

 

 

 

 

 

Total Devices

$

1,668.3

 

$

1,379.7

 

21

%

 

25

%

Total Masks and other

 

1,073.3

 

 

986.0

 

9

 

 

12

 

Total Sleep and Respiratory Care

$

2,741.5

 

$

2,365.7

 

16

 

 

20

 

 

 

 

 

 

 

 

 

Software-as-a-Service

 

359.4

 

 

297.7

 

21

 

 

 

Total

$

3,100.9

 

$

2,663.4

 

16

 

 

20

 


(A)

Totals and subtotals may not add due to rounding.

(B)

In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a “constant currency basis,” which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

 

 


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