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For investors For media +1 858-836-5000 +1 619-510-1281 investorrelations@resmed.com news@resmed.com ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2024 Year-over-year revenue grows 9%, operating pro

Key Takeaway: ResMed Inc. announced its fourth quarter results for fiscal year 2024, showcasing a 9% increase in revenue compared to the previous year, totaling $1.22 billion. The company's gross margin improved to 58.5%, driven by operational efficiencies and a surge in customer demand for its products. Notably, net income rose by 27% to $292.2 million, reflecting significant profitability growth. Additionally, ResMed declared a quarterly cash dividend of $0.53 per share, further emphasizing its commitment to returning value to shareholders.

Market Sentiment Analysis

POSITIVE FACTORS

  • Year-over-year revenue growth of 9% indicates strong demand.
  • Gross margin expansion reflects effective cost management.
  • Strong bottom-line profitability with a 27% increase in net income.

Full Press Release Details

For investors For media
+1 858-836-5000 +1 619-510-1281
investorrelations@resmed.com news@resmed.com
ResMed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2024
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, August 1, 2024 ResMed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended June 30, 2024.
Fourth Quarter 2024 Highlights
All comparisons are to
the prior year period
Full Year 2024 Highlights
All comparisons are to the prior year period
Our fourth quarter and full-year fiscal year 2024 results demonstrate strong performance across all sectors of
our business, said Mick Farrell, Chairman & CEO of ResMed. Ongoing patient and customer demand for our best-in-class products and software solutions
is incredibly strong, driving solid growth across our devices, masks, and software businesses. The global ResMed team s focus on operating excellence, ongoing cost discipline, and profitable growth acceleration resulted in gross margin
expansion, strong operating leverage, and double-digit growth in bottom-line profitability.
Nearly 2.5 billion suffer from major sleep health and breathing disorders. As the market leader in
these significantly underpenetrated markets, we re well-positioned as the clear leader to drive increased market penetration, demand generation, and accelerate growth for our businesses. We re laser-focused on increasing awareness with the
fast-growth population of sleep-health-interested consumers, creating virtual pathways that expand access to therapies, while offering a broad portfolio of medical device products, software solutions, and beyond, as we deliver value for all ResMed
Financial Results and Operating Metrics
Unaudited; $ in millions, except for per share amounts
Three Months Ended
June 30, 2024 June 30, 2023 % Change Constant Currency (A)
Revenue $ 1,223.2 $ 1,122.1 9 % 10 %
Gross margin 58.5 % 55.0 % 6
Non-GAAP gross margin (B) 59.1 % 55.8 % 6
Selling, general, and administrative expenses 242.2 240.7 1 1
Research and development expenses 80.9 78.1 3 4
Income from operations 381.2 275.3 38
Non-GAAP income from operations (B) 400.5 307.0 30
Net income 292.2 229.7 27
Non-GAAP net income (B) 306.3 235.5 30
Diluted earnings per share $ 1.98 $ 1.56 27
Non-GAAP diluted earnings per share (B) $ 2.08 $ 1.60 30
Twelve Months Ended
June 30, 2024 June 30, 2023 % Change Constant Currency (A)
Revenue $ 4,685.3 $ 4,223.0 11 % 11 %
Gross margin 56.7 % 55.8 % 2
Non-GAAP gross margin (B) 57.7 % 56.5 % 2
Selling, general, and administrative expenses 917.1 874.0 5 5
Research and development expenses 307.5 287.6 7 8
Income from operations 1,319.9 1,131.9 17
Non-GAAP income from operations (B) 1,478.4 1,224.4 21
Net income 1,021.0 897.6 14
Non-GAAP net income (B) 1,139.3 949.8 20
Diluted earnings per share $ 6.92 $ 6.09 14
Non-GAAP diluted earnings per share (B) $ 7.72 $ 6.44 20
Discussion of Fourth Quarter Results
All comparisons are to the prior year period unless otherwise noted
Other Business and Operational Highlights
The ResMed board of directors today declared a quarterly cash dividend of $0.53 per share. The dividend will have a record date of August 15, 2024,
payable on September 19, 2024. 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 August 14, 2024, 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 August 14, 2024, through August 15, 2024, inclusive.
ResMed will discuss its fourth quarter fiscal year 2024 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 Q4 2024 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 13747201. The telephone replay will be available until August 15, 2024.
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, our supply chain, domestic and international regulatory developments, litigation, tax
outlook, and the expected impact of macroeconomic conditions of our business 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.
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited; $ in thousands, except for per share amounts)
Three Months Ended Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Net revenue $ 1,223,195 $ 1,122,057 $ 4,685,297 $ 4,222,993
Cost of sales 499,681 496,276 1,982,769 1,836,935
Amortization of acquired intangibles (1) 7,987 8,395 32,963 30,396
Masks with magnets field safety notification expenses (1) 6,351
Astral field safety notification expenses (1) 7,911
Total cost of sales $ 507,668 $ 504,671 $ 2,029,994 $ 1,867,331
Gross profit $ 715,527 $ 617,386 $ 2,655,303 $ 2,355,662
Selling, general, and administrative 242,187 240,687 917,136 874,003
Research and development 80,861 78,144 307,525 287,642
Amortization of acquired intangibles (1) 11,262 12,319 46,521 42,020
Restructuring expenses (1) 9,177 64,228 9,177
Acquisition related expenses (1) 1,792 10,949
Total operating expenses $ 334,310 $ 342,119 $ 1,335,410 $ 1,223,791
Income from operations $ 381,217 $ 275,267 $ 1,319,893 $ 1,131,871
Other income (expenses), net:
Interest expense, net $ (5,920 ) $ (14,943 ) $ (45,708 ) $ (47,379 )
Gain (loss) attributable to equity method investments 868 (2,228 ) (1,848 ) (7,265 )
Gain on equity investments (1) (15,473 ) (1,583 ) (4,045 ) 9,922
Gain on insurance recoveries (1) 20,227 20,227
Other, net (2,960 ) 61 (3,494 ) (5,712 )
Total other income (expenses), net (23,485 ) 1,534 (55,095 ) (30,207 )
Income before income taxes $ 357,732 $ 276,801 $ 1,264,798 $ 1,101,664
Income taxes 65,495 47,137 243,847 204,108
Net income $ 292,237 $ 229,664 $ 1,020,951 $ 897,556
Basic earnings per share $ 1.99 $ 1.56 $ 6.94 $ 6.12
Diluted earnings per share $ 1.98 $ 1.56 $ 6.92 $ 6.09
Non-GAAP diluted earnings per share (1) $ 2.08 $ 1.60 $ 7.72 $ 6.44
Basic shares outstanding 146,915 147,015 147,021 146,765
Diluted shares outstanding 147,533 147,554 147,550 147,455
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited; $ in thousands)
June 30, 2024 June 30, 2023
Assets
Current assets:
Cash and cash equivalents $ 238,361 $ 227,891
Accounts receivable, net 837,275 704,909
Inventories 822,250 998,012
Prepayments and other current assets 459,833 437,018
Total current assets $ 2,357,719 $ 2,367,830
Non-current assets:
Property, plant, and equipment, net $ 548,025 $ 537,856
Operating lease right-of-use assets 151,121 127,955
Goodwill and other intangibles, net 3,327,959 3,322,640
Deferred income taxes and other non-current assets 487,570 395,427
Total non-current assets $ 4,514,675 $ 4,383,878
Total assets $ 6,872,394 $ 6,751,708
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable $ 237,728 $ 150,756
Accrued expenses 377,678 365,660
Operating lease liabilities, current 25,278 21,919
Deferred revenue 152,554 138,072
Income taxes payable 107,517 72,224
Short-term debt 9,900 9,902
Total current liabilities $ 910,655 $ 758,533
Non-current liabilities:
Deferred revenue $ 137,343 $ 119,186
Deferred income taxes 79,339 90,650
Operating lease liabilities, non-current 141,444 116,853
Other long-term liabilities 42,257 68,166
Long-term debt 697,313 1,431,234
Long-term income taxes payable 37,183
Total non-current liabilities $ 1,097,696 $ 1,863,272
Total liabilities $ 2,008,351 $ 2,621,805
Stockholders equity
Common stock $ 588 $ 588
Additional paid-in capital 1,896,604 1,772,083
Retained earnings 4,991,647 4,253,016
Treasury stock (1,773,267 ) (1,623,256 )
Accumulated other comprehensive income (251,529 ) (272,528 )
Total stockholders equity $ 4,864,043 $ 4,129,903
Total liabilities and stockholders equity $ 6,872,394 $ 6,751,708
RESMED INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited; $ in thousands)
Three Months Ended Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Cash flows from operating activities:
Net income $ 292,237 $ 229,664 $ 1,020,951 $ 897,556
Adjustment to reconcile net income to cash provided by operating activities:
Depreciation and amortization 43,677 46,760 176,870 165,156
Amortization of right-of-use assets 11,077 8,440 39,339 32,406
Stock-based compensation costs 21,392 19,927 80,184 71,142
(Gain) loss attributable to equity method investments, net of dividends received (868 ) 5,102 1,848 10,138
(Gain) loss on equity investments 15,473 1,584 4,045 (9,922 )
Non-cash restructuring expenses 9,177 33,239 9,177
Gain on insurance recoveries (20,227 ) (20,227 )
Changes in operating assets and liabilities:
Accounts receivable, net (57,523 ) (18,059 ) (134,278 ) (106,511 )
Inventories, net 8,910 6,257 172,203 (248,833 )
Prepaid expenses, net deferred income taxes and other current assets (16,237 ) (51,518 ) (115,213 ) (138,125 )
Accounts payable, accrued expenses, income taxes payable and other 121,975 330 122,072 31,342
Net cash provided by operating activities $ 440,113 $ 237,437 $ 1,401,260 $ 693,299
Cash flows from investing activities:
Purchases of property, plant, and equipment (24,881 ) (34,449 ) (99,460 ) (119,672 )
Patent registration and acquisition costs (1,442 ) (4,285 ) (15,396 ) (14,328 )
Business acquisitions, net of cash acquired (19,697 ) (1,524 ) (133,464 ) (1,012,749 )
Purchases of investments (3,073 ) (2,500 ) (12,765 ) (32,229 )
Proceeds from exits of investments 750 1,000 3,937
(Payments) / proceeds on maturity of foreign currency contracts 1,833 (3,765 ) (9,699 ) 15,196
Net cash used in investing activities $ (46,510 ) $ (46,523 ) $ (269,784 ) $ (1,159,845 )
Cash flows from financing activities:
Proceeds from issuance of common stock, net 27,696 23,493 53,094 49,142
Purchases of treasury stock (50,004 ) (150,011 )
Taxes paid related to net share settlement of equity awards (421 ) (334 ) (8,757 ) (30,631 )
Payments of business combination contingent consideration (2,045 ) (1,293 ) (2,361 )
Proceeds from borrowings, net of borrowing costs 105,000 1,070,000
Repayment of borrowings (300,000 ) (145,000 ) (835,000 ) (405,000 )
Dividends paid (70,553 ) (64,705 ) (282,320 ) (258,276 )
Net cash (used in) / provided by financing activities $ (393,282 ) $ (188,591 ) $ (1,119,287 ) $ 422,874
Effect of exchange rate changes on cash $ 130 $ (2,326 ) $ (1,719 ) $ (2,147 )
Net increase / (decrease) in cash and cash equivalents 451 (3 ) 10,470 (45,819 )
Cash and cash equivalents at beginning of period 237,910 227,894 227,891 273,710
Cash and cash equivalents at end of period $ 238,361 $ 227,891 $ 238,361 $ 227,891
RESMED INC. AND SUBSIDIARIES
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 and restructuring expense related to cost of sales and are reconciled below:
Three Months Ended Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
Revenue $ 1,223,195 $ 1,122,057 $ 4,685,297 $ 4,222,993
GAAP cost of sales $ 507,668 $ 504,671 $ 2,029,994 $ 1,867,331
Less: Amortization of acquired intangibles (A) (7,987 ) (8,395 ) (32,963 ) (30,396 )
Less : Masks with magnets field safety notification expenses (A) (6,351 )
Less : Astral field safety notification expenses (A) (7,911 )
Non-GAAP cost of sales $ 499,681 $ 496,276 $ 1,982,769 $ 1,836,935
GAAP gross profit $ 715,527 $ 617,386 $ 2,655,303 $ 2,355,662
GAAP gross margin 58.5 % 55.0 % 56.7 % 55.8 %
Non-GAAP gross profit $ 723,514 $ 625,781 $ 2,702,528 $ 2,386,058
Non-GAAP gross margin 59.1 % 55.8 % 57.7 % 56.5 %
The measure non-GAAP income from operations is reconciled with
GAAP income from operations below:
Three Months Ended Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
GAAP income from operations $ 381,217 $ 275,267 $ 1,319,893 $ 1,131,871
Amortization of acquired intangibles cost of sales (A) 7,987 8,395 32,963 30,396
Amortization of acquired intangibles operating expenses (A ) 11,262 12,319 46,521 42,020
Restructuring (A) 9,177 64,228 9,177
Masks with magnets field safety notification expenses (A) 6,351
Astral field safety notification expenses (A) 7,911
Acquisition-related expenses (A) 1,792 483 10,949
Non-GAAP income from operations $ 400,466 $ 306,950 $ 1,478,350 $ 1,224,413
RESMED INC. AND SUBSIDIARIES
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 Twelve Months Ended
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023
GAAP net income $ 292,237 $ 229,664 $ 1,020,951 $ 897,556
Amortization of acquired intangibles cost of sales (A) 7,987 8,395 32,963 30,396
Amortization of acquired intangibles operating expenses (A) 11,262 12,319 46,521 42,020
Restructuring expenses (A) 9,177 64,228 9,177
Masks with magnets field safety notification expenses (A) 6,351
Astral field safety notification expenses (A) 7,911
Acquisition-related expenses (A) 1,792 483 10,949
Gain on insurance recoveries (A) (20,227 ) (20,227 )
Income tax effect on non-GAAP adjustments (A) (5,145 ) (5,631 ) (40,114 ) (20,114 )
Non-GAAP net income (A) $ 306,341 $ 235,489 $ 1,139,294 $ 949,757
GAAP diluted shares outstanding 147,533 147,554 147,550 147,455
GAAP diluted earnings per share $ 1.98 $ 1.56 $ 6.92 $ 6.09
Non-GAAP diluted earnings per share (A) $ 2.08 $ 1.60 $ 7.72 $ 6.44
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.
RESMED INC. AND SUBSIDIARIES
Revenue by Product and Region
(Unaudited; $ in millions, except for per share amounts)
Three Months Ended
June 30, 2024 (A) June 30, 2023 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 406.2 $ 387.2 5 %
Masks and other 321.2 273.7 17
Total U.S., Canada and Latin America $ 727.4 $ 660.9 10
Combined Europe, Asia, and other markets
Devices $ 228.8 $ 215.2 6 % 8 %
Masks and other 115.0 107.4 7 9
Total Combined Europe, Asia and other markets $ 343.9 $ 322.6 7 8
Global revenue
Total Devices $ 635.1 $ 602.4 5 % 6 %
Total Masks and other 436.2 381.0 14 15
Total Sleep and Respiratory Care $ 1,071.3 $ 983.5 9 9
Software as a Service 151.9 138.6 10 10
Total $ 1,223.2 $ 1,122.1 9 10
Twelve Months Ended
June 30, 2024 (A) June 30, 2023 (A) % Change Constant Currency (B)
U.S., Canada, and Latin America
Devices $ 1,522.8 $ 1,444.4 5 %
Masks and other 1,199.8 1,039.0 15
Total U.S., Canada and Latin America $ 2,722.6 $ 2,483.4 10
Combined Europe, Asia, and other markets
Devices $ 921.3 $ 826.3 11 % 10 %
Masks and other 457.4 415.3 10 8
Total Combined Europe, Asia and other markets $ 1,378.6 $ 1,241.6 11 10
Global revenue
Total Devices $ 2,444.0 $ 2,270.7 8 % 7 %
Total Masks and other 1,657.2 1,454.3 14 13
Total Sleep and Respiratory Care $ 4,101.2 $ 3,725.0 10 10
Software as a Service 584.1 498.0 17 17
Total $ 4,685.3 $ 4,223.0 11 11

Frequently Asked Questions

What were ResMed's Q4 2024 revenues?

ResMed reported revenues of $1,223.2 million for Q4 2024.

When is ResMed's Q4 earnings webcast?

The Q4 earnings webcast is scheduled for today at 1:30 p.m. PT.

What is ResMed's quarterly cash dividend for Q4 2024?

ResMed declared a quarterly cash dividend of $0.53 per share.

How much did ResMed's net income increase in FY 2024?

ResMed's net income increased by 14%, reaching $1,021 million.

What is the ex-dividend date for ResMed stockholders?

The ex-dividend date for ResMed stockholders is August 14, 2024.

Last updated: Aug 1, 2024