DelOrefice is the Chief Financial Officer at BD, one of the largest global MedTech companies in the world Board appointment brings over 30 years of strategic and operational finance expertise SAN DIEGO, Aug. 15, 2024 (GLOBE NEWSWIRE) -- ResMed (NYSE: RMD, ASX: RMD) today announced it has expanded the size of its board of directors to 11 and has elected Christopher DelOrefice to the board, effective immediately. Mr. DelOrefice was appointed during ResMed's regularly scheduled board meeting on August 15, 2024 ...

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Company Overview and Operations - The company employs over 9,980 people and sells products in over 140 countries[11] - The company operates in two segments: Sleep and Respiratory Care, and Software as a Service (SaaS)[15] - The company's products include CPAP, bilevel devices, high-flow therapy systems, ventilators, and cloud-based health applications for connected care[10][27] - SaaS solutions support over 150 million individual patient accounts across out-of-hospital care settings[37] - Devices accounted for approximately 52%, 54%, and 52% of net revenues in fiscal years 2024, 2023, and 2022, respectively[40] - Mask systems, diagnostic products, and accessories accounted for approximately 35%, 34%, and 37% of net revenues in fiscal years 2024, 2023, and 2022, respectively[44] - SaaS revenue accounted for approximately 12%, 12%, and 11% of net revenue in fiscal years 2024, 2023, and 2022, respectively[52] - The company markets its products in over 140 countries through a network of distributors and direct sales staff, tailoring its approach to regional needs[58] - SaaS solutions are primarily sold in the United States and Germany, targeting healthcare providers in HME, pharmacy, home infusion, orthotics, and prosthetics markets[61] - The company operates in Europe, Asia, and other markets through wholly owned subsidiaries in 21 countries, utilizing a mix of direct sales and independent distributors[62] - Manufacturing operations are globally distributed across Singapore, Australia, Malaysia, the U.S., and France, focusing on quality, cost control, and supply chain resilience[64][67] - The company's manufacturing sites are certified to ISO 13485 and MDSAP, with an Environmental Management System (EMS) certified to ISO 14001:2015[66] - In the U.S., products are primarily purchased by home healthcare dealers, health systems, or sleep clinics, with reimbursement from Medicare, Medicaid, and commercial insurers[69] - The company's sales in combined Europe, Asia, and other regions accounted for approximately 36% of net revenues in both 2024 and 2023[151] Sleep and Respiratory Care Market - The global prevalence of obstructive sleep apnea (OSA) is estimated at 936 million people, with 54 million in the U.S. and 424 million having moderate to severe OSA[18] - Less than 20% of individuals with OSA have been diagnosed or treated, indicating significant underdiagnosis[18] - Nearly 40% of new positive airway pressure (PAP) therapy patients are female, reflecting growing recognition of OSA in women[19] - PAP therapy increases the survival rate of OSA patients by 39% over a three-year period compared to untreated patients[20] - Approximately 480 million people worldwide suffer from chronic obstructive pulmonary disease (COPD), the third leading cause of death globally[28] - The company's CPAP devices, first commercialized in 1989, remain a first-line therapy for OSA, with innovations improving patient comfort and compliance[26] - Home non-invasive ventilation for severe COPD patients can reduce healthcare costs by increasing time between hospital readmissions[30] - Studies show NIV treatment improves quality of life and survival rates in ALS and Duchenne muscular dystrophy patients[34] - The AirSense 11 platform includes new features like Personal Therapy Assistant and Care Check-In to provide tailored guidance to PAP users[43] - The AirCurve 11 VAuto and ASV devices treat patients with OSA, CSA, mixed apneas, or periodic breathing, offering advanced digital health solutions[43] - The AirMini portable CPAP features auto-adjusting therapy modes and Bluetooth connectivity, making it the smallest portable CPAP on the market[43] - The Stellar 100 and 150 ventilators are suitable for invasive and non-invasive ventilation, with the Stellar 150 including iVAPS technology[43] SaaS and Digital Health Solutions - SaaS solutions support over 150 million individual patient accounts across out-of-hospital care settings[37] - The acquisition of MEDIFOX DAN in 2022 expanded ResMed's SaaS business to Germany and added outpatient therapy to its ecosystem[37] - ResMed's SaaS strategy includes acquisitions like Brightree (2016), HEALTHCAREfirst (2018), MatrixCare (2018), and MEDIFOX DAN (2022)[35] - ResMed's digital health applications, such as AirView and myAir, enable remote monitoring and patient engagement[37] - The AirView cloud-based system enables remote monitoring and changing of patients' device settings, simplifying workflows and improving collaboration[51] - The myAir application provides personalized therapy management for sleep apnea patients, offering support, education, and troubleshooting tools[51] - The company supports clinical trials in multiple countries to develop new clinical applications for its technology, leveraging real-world data from cloud-connected devices[56] - The company's cloud-based software digital health applications are subject to HIPAA regulations, requiring compliance with the HIPAA Security Rule, Breach Notification Rule, and Privacy Rule[111] Regulatory and Compliance - The company's devices currently marketed in the U.S. are classified as either Class I or Class II and are marketed under 510(k) pre-marketing clearances[87] - Certain SaaS products may require FDA pre-marketing clearance or approval, while others may not be classified as medical devices[87] - The FDA's 510(k) clearance process may require extensive performance and clinical data to demonstrate substantial equivalence to a predicate device[87] - Devices without a predicate are typically classified as Class III and require the stringent PMA pathway, which can take several years[87] - The company must comply with post-market surveillance regulations, including reporting incidents where products may have caused or contributed to death or serious injury[91] - In the EEA, medical devices must comply with the EU Medical Devices Regulation (MDR), which requires conformity assessment procedures and CE marking[93] - The MDR transition period allows devices with CE Certificates issued under the MDD to be placed on the market until May 26, 2024, under certain conditions[98] - The MDR strengthens rules for placing devices on the market, improves traceability, and sets up a central database for product information[99] - The company has received certification at several locations, including Sydney, Australia; San Diego, California; and Lyon, France, to meet new MDR requirements[100] - The company is subject to various healthcare laws, including the federal Anti-Kickback Statute and the federal Civil False Claims Act, which regulate marketing and sales activities[102][103][104] - The company is subject to risks related to privacy and data security regulations, including HIPAA and GDPR, with potential penalties for non-compliance[203][204][205] - HIPAA requires the company to notify covered entities of breaches, with specific timeframes and potential public disclosure for breaches affecting 500 or more individuals[207] Financial and Market Risks - The company faces risks from global macroeconomic conditions, including inflation, supply chain disruptions, and foreign currency exchange rate fluctuations, which could adversely affect operations and profitability[146] - The company's exposure to foreign currency exchange risk is increasing as its business outside the U.S. grows, with fluctuations in the U.S. dollar against currencies like the Australian Dollar, Singapore Dollar, Euro, Chinese Yuan, and Canadian Dollar potentially impacting financial results[149] - The company is subject to risks from public health crises, such as pandemics or epidemics, which could harm its business, financial condition, and results of operations[150] - The company's international activities are subject to risks including currency exchange rate fluctuations, economic conditions, tariffs, trade barriers, and compliance with foreign regulations, which could affect overall profitability[151] - The Uyghur Forced Labor Prevention Act (UFLPA) and the Russia-Ukraine conflict may disrupt the company's supply chain, potentially impacting its ability to meet product demands[152] - The company's inability to compete successfully in the highly competitive Sleep and Respiratory Care and SaaS markets could harm its business, particularly if competitors develop innovative products or alternative treatments[143] - Consolidation in the healthcare industry and healthcare payment reform could lead to price concessions or volume reductions, adversely affecting the company's revenues and results of operations[145] - The company's SaaS business depends on customer renewals, upgrades, and expansions, and any decline in these areas could adversely affect future operating results[139] - The company is subject to risks related to manufacturing, IT systems, and commercial operations, including supply chain disruptions and IT system breaches, which could harm its business[137] - Sales into Russia and Ukraine did not constitute a material portion of total revenue in fiscal year 2024[153] - Total consolidated debt as of June 30, 2024, was $0.7 billion[161] - A global semiconductor supply shortage has impacted suppliers, affecting the ability to obtain sufficient quantities of semiconductors and electronic components[165] - Substantial increases in product demand, including in response to a product recall by a major competitor, Philips, have resulted in higher costs for materials and components[166] - The company is increasingly dependent on information technology systems and infrastructure, which are vulnerable to breakdowns, unauthorized access, and cyberattacks[167] - Cyberattacks are increasing in frequency, sophistication, and intensity, posing risks to the confidentiality, integrity, and availability of information[168] - The company collects and stores a large amount of sensitive and confidential information, which is vulnerable to unauthorized access and disclosure[169] - Security breaches could result in monetary loss, litigation, fines, and damage to the company's reputation[170] - Compliance with data privacy and security laws, such as HIPAA and GDPR, is expensive and failure to comply could result in regulatory scrutiny and fines[171] - Third-party service providers with access to sensitive information may experience security breaches, negatively affecting the company's business[172] - The company's growth strategy includes acquisitions in the sleep apnea and respiratory care sectors, as well as SaaS business, but there are risks associated with integrating these acquisitions, which could impact operating results[173] - The company has recorded intangible assets, including goodwill, from acquisitions, and must annually evaluate for impairment, which could lead to significant charges to earnings if assumptions about future cash flows and revenue projections are inaccurate[174] - The company's ability to manage growth effectively depends on improving financial and management information systems, and failure to do so could slow or stop growth[175] - The company is focused on improving operational efficiency and aligning expenses with revenues, but restructuring activities and cost reduction initiatives could have unintended consequences, such as reduced employee productivity and business disruption[176] - The company's SaaS business relies on customer renewals, upgrades, and expansions of agreements, and any decline in these activities could adversely affect future operating results[181] - The company's SaaS products must perform properly, and failure to develop enhancements or address defects could lead to customer loss, service performance claims, and declining sales[182] - The company depends on third-party services and its own infrastructure to distribute SaaS products, and any disruptions could significantly impact product performance and revenues[183] - The company must maintain sufficient excess capacity in its operations infrastructure to ensure SaaS product accessibility, and any interruptions or delays could harm customer relationships and reduce revenue[184] - Climate change and natural disasters could negatively impact the company's business operations and financial condition, particularly affecting manufacturing facilities in Sydney, Australia, and Singapore[186] - Healthcare reform and cost-cutting measures, including changes in coverage policy, could have a material adverse effect on the company's industry and results of operations[189] - Government and private insurance plans may not adequately reimburse customers for the company's products, potentially leading to reduced sales or selling prices[194] - In the U.S., reductions in reimbursement by third-party payors could indirectly affect the company's pricing, sales, and receivables collectability[195] - The AHRQ concluded in October 2022 that CPAP therapy lacks sufficient evidence for long-term clinically important outcomes, which could impact sales if reimbursement policies change[196] - The company is subject to healthcare fraud and abuse laws, including the federal Anti-Kickback Statute and False Claims Act, which could result in significant penalties and exclusion from federal healthcare programs[197][198] - In December 2019, the company settled with the U.S. Department of Justice for $39.5 million, with total costs amounting to $40.6 million, resolving allegations related to improper practices[201] - The company entered into a five-year Corporate Integrity Agreement (CIA) with the OIG, requiring additional controls and monitoring, with obligations expiring in December 2024[202] Human Resources and Workforce - ResMed had approximately 9,980 employees and contingent workers as of June 30, 2024, with 4,070 in cost of sales, 1,870 in R&D, and 4,040 in sales, marketing, and administration[120] - 31% of ResMed's workforce is located in the United States, Canada, and Latin America, 30% in Asia, 15% in Australia, and 24% in Europe[120] - ResMed's global turnover rate for fiscal year 2024 was approximately 18%[120] - Approximately 19% of employees are devoted to research and development activities[37] - ResMed's Employee Resource Groups (ERGs) engage over 6,000 employees globally, focusing on cultural awareness and professional development[122] - The company launched a global mentorship and leadership program for women, ElevateHER, aimed at building confidence and strategic thinking[123] - ResMed's compensation philosophy includes market-competitive pay, annual and long-term incentives linked to performance, and an employee stock purchase plan[130] - The company conducts regular benchmarking surveys to ensure pay equity and compliance with global anti-discrimination laws[130] Product Development and Innovation - AirSense 11, a new platform of connected CPAP and APAP devices, was launched in fiscal year 2021 with features like touch screen and over-the-air updates[40] - AirMini, a portable CPAP device with waterless humidification, was launched in fiscal year 2017[40] - ResMed's products are offered in more than 140 countries, with strategic acquisitions like Curative Medical (2015) and HB Healthcare (2019) to expand geographic presence[37] - The company holds approximately 9,711 pending, allowed, or granted patents globally, with 612 U.S. patents and 1,507 foreign patents set to expire in the next five years[83] - Competition in the Sleep and Respiratory Care market includes Philips BV, Fisher & Paykel Healthcare, and regional manufacturers, with potential threats from new pharmaceuticals and therapies[80] - The SaaS business faces intense competition from in-house systems and new software solutions, with low barriers to entry and rapidly evolving technology[81] Legal and Compliance Risks - The company is subject to healthcare fraud and abuse laws, including the federal Anti-Kickback Statute and False Claims Act, which could result in significant penalties and exclusion from federal healthcare programs[197][198] - In December 2019, the company settled with the U.S. Department of Justice for $39.5 million, with total costs amounting to $40.6 million, resolving allegations related to improper practices[201] - The company entered into a five-year Corporate Integrity Agreement (CIA) with the OIG, requiring additional controls and monitoring, with obligations expiring in December 2024[202] - The company faces risks related to privacy and data security regulations, including HIPAA and GDPR, with potential penalties for non-compliance[203][204][205] - HIPAA requires the company to notify covered entities of breaches, with specific timeframes and potential public disclosure for breaches affecting 500 or more individuals[207] - ResMed faces potential GDPR fines of up to €20.0 million or 4% of global annual turnover for non-compliance with data protection requirements[114] - The UK GDPR imposes fines of up to £17.5 million or 4% of global turnover for data protection violations[115] Supply Chain and Manufacturing - Manufacturing operations are globally distributed across Singapore, Australia, Malaysia, the U.S., and France, focusing on quality, cost control, and supply chain resilience[64][67] - The global recall by a major competitor has driven increased demand for the company's devices, though supply chain disruptions and raw material constraints persist[65] - The company's manufacturing sites are certified to ISO 13485 and MDSAP, with an Environmental Management System (EMS) certified to ISO 14001:2015[66] - A global semiconductor supply shortage has impacted suppliers, affecting the ability to obtain sufficient quantities of semiconductors and electronic components[165] - Substantial increases in product demand, including in response to a product recall by a major competitor, Philips, have resulted in higher costs for materials and components[166] - The Uyghur Forced Labor Prevention Act (UFLPA) and the Russia-Ukraine conflict may disrupt the company's supply chain, potentially impacting its ability to meet product demands[152] Reimbursement and Healthcare Policy - The DMEPOS Competitive Bidding Program has reduced Medicare payments for CPAP and respiratory assist devices, impacting pricing in both competitive and non-competitive bidding areas[71][72] - Government and private insurance plans may not adequately reimburse customers for the company's products, potentially leading to reduced sales or selling prices[194] - In the U.S., reductions in reimbursement by third-party payors could indirectly affect the company's pricing, sales, and receivables collectability[195] - The AHRQ concluded in October 2022 that CPAP therapy lacks sufficient evidence for long-term clinically important outcomes, which could impact sales if reimbursement policies change[196] - Healthcare reform and cost-cutting measures, including changes in coverage policy, could have a material adverse effect on the company's industry and results of operations[189] Cybersecurity and Data Privacy - The company is increasingly dependent on information technology systems and infrastructure, which are vulnerable to breakdowns, unauthorized access, and cyberattacks[167] - Cyberattacks are increasing in frequency, sophistication, and intensity, posing risks to the confidentiality, integrity, and availability of information[168] - The company collects and stores a large amount of sensitive and confidential information, which is vulnerable to unauthorized access and disclosure[169] - Security breaches could result in monetary loss, litigation, fines, and damage to the company's reputation[170] - Compliance with data privacy and security laws, such as HIPAA and GDPR, is expensive and failure to comply could result in regulatory scrutiny and fines[171] - Third-party service providers with access to sensitive information may experience security breaches, negatively affecting the company's business[172] - The company's cloud-based software digital health applications are subject to HIPAA regulations, requiring compliance with the HIPAA Security Rule, Breach Notification Rule, and Privacy Rule[111] - ResMed faces potential GDPR fines of up to €

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Financial Performance - ResMed Inc. reported adjusted earnings per share (EPS) of $2.08 for Q4 fiscal 2024, reflecting a 30% year-over-year increase and surpassing the Zacks Consensus Estimate by 2.5% [1] - The full-year adjusted EPS was $7.72, exceeding the Zacks Consensus Estimate by 0.3% and increasing 19.9% from fiscal 2023 [2] - Revenues for Q4 were $1.22 billion, a 9% increase year-over-year (10% at constant exchange rates), and also beat the Zacks Consensus Estimate by 0.7% [3] - Full-year revenues reached $4.69 billion, marking a 10.9% improvement from fiscal 2023 [3] Revenue Breakdown - Total Sleep and Respiratory Care revenues for Q4 improved 9% year-over-year to $1.07 billion, exceeding projected revenues of $1.04 billion [4] - Software-as-a-Service (SaaS) revenues grew 10% year-over-year to $151.9 million, falling short of the projected $154.2 million [4] - Revenues in Europe, Asia, and other markets rose 7% to $343.9 million, surpassing the anticipated $324.7 million [5] - In the U.S., Canada, and Latin America, revenues were $727.4 million, up 10% year-over-year, but below the projected $777.6 million [5] - Global revenues included Total Devices revenues of $635.1 million (up 5%) and Total Masks and other revenues of $436.2 million (up 14%) [6] Profitability Metrics - Adjusted gross profit for Q4 increased 15.6% to $723.5 million, with an adjusted gross margin of 59.2%, reflecting an expansion of 338 basis points [7] - Adjusted operating income was $400.5 million, up 30.5% year-over-year, with an adjusted operating margin expanding 538 basis points to 32.7% [8] Financial Position - At the end of Q4 fiscal 2024, ResMed had cash and cash equivalents of $238.4 million, up from $227.9 million at the end of fiscal 2023 [9] - Total debt decreased to $706.3 million from $1.44 billion at the end of fiscal 2023 [9] - Cumulative net cash provided by operating activities was $1.40 billion, compared to $693.3 million in the previous year [9] Capital Management - The company paid out $71 million in dividends during Q4 and repurchased 232,000 shares for $50 million as part of its capital management strategy [10] Market Outlook - ResMed's strong performance is attributed to consistent demand for its products and software solutions, leading to growth across its device, mask, and software businesses [11] - The company is increasing the availability and production of its AirSense 11 and AirCurve 11 platforms globally, which is expected to enhance its market position [12]

Financial Data and Key Metrics - Group revenue for Q4 FY2024 was $1.22 billion, a 9% headline increase and 10% in constant currency terms [26] - Gross margin increased by 330 basis points to 59.1% in Q4, driven by reductions in freight expense, manufacturing improvements, and favorable product mix [28] - Non-GAAP operating income and net income both grew by 30% in Q4 [23] - Cash flow from operations for the quarter was $440 million, reflecting strong underlying earnings and improved working capital [31] Business Line Performance - Device sales increased by 6% year-over-year globally, with 5% growth in the US, Canada, and Latin America, and 8% growth in Europe, Asia, and other regions [27] - Masks and accessories business grew 15% year-over-year, with 17% growth in the US, Canada, and Latin America, and 9% growth in Europe, Asia, and other regions [27][28] - Residential care software business delivered 10% year-over-year growth in revenue and net operating profit [5][21] Market Performance - Sales in the US, Canada, and Latin America increased by 10%, while sales in Europe, Asia, and other regions increased by 8% [26] - The AirSense 11 platform and AirCurve11 platforms are being rolled out globally, with regulatory clearances secured country by country [8] - The AirFit F40 mask, introduced last quarter, is performing well in launched markets due to its comfort, fit, and ease of use [9] Strategy and Industry Competition - ResMed is focusing on demand generation to expand market penetration, leveraging its leadership in digital health solutions with 19 billion nights of medical data in the cloud [6][7] - The company is investing in alternative therapies, including dental devices and pharmaceutical options, to address patients who cannot adhere to PAP therapy [19] - ResMed is leading the industry in digital health technology, with a focus on expanding interoperability, lowering costs, and improving patient outcomes [7][20] Management Commentary on Operating Environment and Future Outlook - Management highlighted the growing awareness of sleep health issues driven by consumer technology companies and the increasing volumes of patients entering the healthcare system due to big pharmaceutical companies' efforts [12][13] - The company expects the growth in weight loss drugs (GLP-1s) to be a net positive for its business, with data showing a 10.7% higher propensity to start PAP therapy among patients prescribed GLP-1s [16][17] - ResMed plans to continue driving operating leverage and expects high single-digit to low double-digit growth in its residential care software business in FY2025 [22] Other Important Information - ResMed has reduced debt by $300 million and ended the quarter with $707 million in gross debt and $469 million in net debt [32] - The company declared a quarterly dividend of $0.53 per share, representing a 10% increase over the previous dividend [32] - ResMed plans to continue share buybacks at a rate of approximately $50 million per quarter in FY2025 [32] Q&A Session Summary Question: Device revenue growth and new patient pipeline [35] - Device revenue grew 6% globally, with 5% growth in the US and 8% in Europe, Asia, and other regions. The growth was primarily driven by patient flow, with some minor pricing adjustments [36][37] Question: Gross margin and freight cost expectations [39][41] - Gross margin is expected to be in the range of 59% to 60% in FY2025, despite headwinds from increased freight costs [40][43] Question: Philips' reentry into international markets [46] - Philips has reentered some international markets but is competing with Tier 2 and Tier 3 players. ResMed is gaining market share in Europe, Asia, and other regions [46][47] Question: Mask growth and new product impact [50] - Mask growth was strong, with 17% growth in the US and 9% in Europe, Asia, and other regions. The growth is driven by demand generation and resupply programs [50][53] Question: Long-term new patient growth and GLP-1 impact [55] - ResMed expects the GLP-1 trend to bring more motivated patients into the healthcare system, with a 10.7% higher propensity to start PAP therapy among GLP-1 users [16][55] Question: Gross margin cadence in FY2025 [61] - Gross margin is expected to gradually improve throughout FY2025, with a range of 59% to 60% [63] Question: Pricing impact and inventory levels [65] - Pricing adjustments were minor, with the majority of growth driven by volume. Inventory levels have been reduced and are expected to grow in line with revenue [66][69] Question: Sleep concierge service and patient funnel [71] - ResMed aims to be a digital health concierge for sleep and breathing health, with a freemium model for basic services and potential charges for advanced analytics [73][74] Question: Diagnostic rates and continuum of care [79] - Diagnostic rates for sleep apnea are low globally, with significant opportunities for growth. ResMed is investing in multiple therapies, including CPAP, dental devices, and pharmaceuticals [80][82] Question: GLP-1 impact on CPAP adherence [85] - ResMed has not seen an increase in CPAP quitters among GLP-1 users. Instead, patients are more motivated to adhere to therapy [87][88]

For the quarter ended June 2024, ResMed (RMD) reported revenue of $1.22 billion, up 9% over the same period last year. EPS came in at $2.08, compared to $1.60 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $1.21 billion, representing a surprise of +0.73%. The company delivered an EPS surprise of +2.46%, with the consensus EPS estimate being $2.03. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectatio ...

Core Viewpoint - ResMed reported quarterly earnings of $2.08 per share, exceeding the Zacks Consensus Estimate of $2.03 per share, and showing a significant increase from $1.60 per share a year ago, indicating strong financial performance [1][2]. Financial Performance - The company achieved revenues of $1.22 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 0.73% and up from $1.12 billion year-over-year [2]. - ResMed has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating a strong operational performance [2]. Stock Performance - ResMed shares have increased approximately 24% since the beginning of the year, outperforming the S&P 500's gain of 15.8% [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6]. Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.06 on revenues of $1.19 billion, while for the current fiscal year, the estimate is $8.71 on revenues of $5.01 billion [7]. - The outlook for the Medical - Products industry, where ResMed operates, is favorable, ranking in the top 36% of over 250 Zacks industries, which historically outperform the bottom half by more than 2 to 1 [8].

Financial Performance - Revenue for Q4 2024 increased by 9% year-over-year to $1.2 billion, with a 10% increase on a constant currency basis[2] - Full year 2024 revenue rose by 11% to $4.7 billion, with a constant currency increase of 11%[3] - Net revenue for the three months ended June 30, 2024, was $1,223,195, an increase of 9.0% compared to $1,122,057 for the same period in 2023[12] - Total revenue for the three months ended June 30, 2024, was $1,223,195, an increase from $1,122,057 in the same period last year, representing a 9.0% growth[15] - Total revenue for the U.S., Canada, and Latin America reached $2,722.6 million for the twelve months ended June 30, 2024, a 10% increase from $2,483.4 million in 2023[19] - Combined revenue from Europe, Asia, and other markets was $1,378.6 million, an 11% increase compared to $1,241.6 million in the previous year[19] - The company reported a total of $1,223.2 million in global revenue for the three months ended June 30, 2024, reflecting a 9% increase from $1,122.1 million in the previous year[18] Profitability Metrics - Gross margin improved by 350 basis points to 58.5%, while non-GAAP gross margin increased by 330 basis points to 59.1%[2] - Diluted earnings per share for Q4 2024 were $1.98, a 27% increase from the prior year, while non-GAAP diluted earnings per share rose by 30% to $2.08[4] - Income from operations for Q4 2024 increased by 38% to $381.2 million, with non-GAAP income from operations up 30% to $400.5 million[4] - Net income for the twelve months ended June 30, 2024, reached $1,020,951, a 13.7% increase from $897,556 in the prior year[12] - Basic earnings per share for the three months ended June 30, 2024, were $1.99, compared to $1.56 for the same period in 2023, reflecting a growth of 27.6%[12] - GAAP net income for the three months ended June 30, 2024, was $292.2 million, compared to $229.7 million for the same period in 2023, representing a 27% increase[17] - Non-GAAP net income for the twelve months ended June 30, 2024, was $1,139.3 million, up from $949.8 million in the previous year, reflecting a 20% growth[17] Cash Flow and Investments - Operating cash flow for the quarter was $440 million, with debt repayments totaling $300 million[2] - Cash provided by operating activities for the twelve months ended June 30, 2024, was $1,401,260, significantly higher than $693,299 for the previous year, marking a 102.0% increase[14] - The company reported a net cash used in investing activities of $(46,510) for the three months ended June 30, 2024, compared to $(46,523) in the same period last year[14] Assets and Liabilities - Total assets as of June 30, 2024, amounted to $6,872,394, an increase from $6,751,708 as of June 30, 2023[13] - Total liabilities decreased to $2,008,351 as of June 30, 2024, down from $2,621,805 a year earlier, showing a reduction of 23.3%[13] - Cash and cash equivalents increased to $238,361 as of June 30, 2024, compared to $227,891 in the previous year, marking a growth of 4.1%[13] - Accounts receivable, net, rose to $837,275 as of June 30, 2024, from $704,909 a year prior, indicating an increase of 18.7%[13] - Total stockholders' equity increased to $4,864,043 as of June 30, 2024, compared to $4,129,903 in the previous year, reflecting a growth of 17.8%[13] Research and Development - Research and development expenses for the three months ended June 30, 2024, were $80,861, up from $78,144 in the same quarter of 2023, indicating a growth of 2.2%[12] Dividends - The company declared a quarterly cash dividend of $0.53 per share, representing a 10% increase[8] - The company paid dividends totaling $70,553 for the three months ended June 30, 2024, compared to $64,705 in the same period last year, reflecting an increase of 5.3%[14] Market Strategy - ResMed is focused on increasing market penetration in sleep health and breathing disorders, with nearly 2.5 billion people affected globally[4] - The company plans to host an Investor Day on September 30, 2024, to discuss future strategies and market expansion[1] Revenue by Segment - Software as a Service revenue grew by 10%, reflecting continued organic growth in the SaaS portfolio[6] - Software as a Service revenue grew by 17%, totaling $584.1 million for the twelve months ended June 30, 2024[19] - Total revenue from devices in the U.S., Canada, and Latin America was $1,522.8 million, marking a 5% increase year-over-year[19] - Total revenue from masks and other products in the same region increased by 15%, reaching $1,199.8 million[19] - Total revenue from masks and other products globally was $1,657.2 million, a 14% increase from $1,454.3 million in the previous year[19]

Core Insights - ResMed Inc. reported a year-over-year revenue growth of 9% for the fourth quarter of fiscal year 2024, reaching $1.2 billion, with a constant currency growth of 10% [2][3] - The company achieved a significant increase in operating profit, up 38%, and a non-GAAP operating profit increase of 30% [2][3] - Operating cash flow for the quarter was $440 million, with debt repayments totaling $300 million [2][8] - The quarterly dividend was increased by 10% to $0.53 per share, reflecting the company's strong financial performance [2][10] Fourth Quarter 2024 Highlights - Revenue increased to $1.2 billion, a 9% rise compared to the previous year, and a 10% increase on a constant currency basis [2][3] - Gross margin improved by 350 basis points to 58.5%, while non-GAAP gross margin improved by 330 basis points to 59.1% [2][3] - Income from operations rose by 38%, with non-GAAP income from operations increasing by 30% [2][3] - Diluted earnings per share were reported at $1.98, with non-GAAP diluted earnings per share at $2.08, both reflecting a 30% increase [2][3] Full Year 2024 Highlights - Total revenue for the fiscal year reached $4.7 billion, marking an 11% increase year-over-year, consistent on a constant currency basis [3][6] - Gross margin for the year improved by 90 basis points to 56.7%, with non-GAAP gross margin up by 120 basis points to 57.7% [3][6] - Income from operations increased by 17%, while non-GAAP income from operations rose by 21% [3][6] - Diluted earnings per share for the year were $6.92, with non-GAAP diluted earnings per share at $7.72, both reflecting a 14% increase [3][6] Market Position and Strategy - ResMed is positioned as a market leader in sleep health and breathing disorders, with nearly 2.5 billion people affected by these conditions [4] - The company aims to increase market penetration and demand generation through innovative products and software solutions [4] - ResMed's focus on operating excellence and cost discipline has resulted in gross margin expansion and strong profitability growth [3][4] Operational Highlights - The company supported the presentation of 39 clinical research abstracts at major conferences, showcasing its leadership in clinical research and real-world evidence [9] - ResMed's ongoing capital management included paying $71 million in dividends and repurchasing 232,000 shares for $50 million [8]