Workflow
ResMed Inc. Announces Results for the Second Quarter of Fiscal Year 2025
RMDResMed(RMD) GlobeNewswire·2025-01-30 21:05

Core Insights - ResMed reported a strong second quarter for fiscal year 2025, with a 10% year-over-year revenue growth driven by increased demand for sleep health and breathing health products, as well as digital health solutions [2][4][5] - The company achieved a gross margin improvement of 230 basis points, reaching 59.2% on a non-GAAP basis, and a significant increase in operating income by 52% [3][5][8] - ResMed's operating cash flow for the quarter was 309million,reflectingrobustfinancialhealthandoperationalefficiency[4][5]FinancialPerformance−RevenueforthequarterendedDecember31,2024,was309 million, reflecting robust financial health and operational efficiency [4][5] Financial Performance - Revenue for the quarter ended December 31, 2024, was 1,282.1 million, compared to 1,162.8millionintheprioryear,markinga101,162.8 million in the prior year, marking a 10% increase [3][5][24] - Gross margin improved to 58.6%, up from 55.6% year-over-year, while non-GAAP gross margin rose to 59.2% from 56.9% [3][5][24] - Net income for the quarter was 344.6 million, a 65% increase from 208.8millioninthesameperiodlastyear,withdilutedearningspersharerisingto208.8 million in the same period last year, with diluted earnings per share rising to 2.34 from 1.42[3][5][24]OperationalHighlights−ThecompanylaunchedtheKontorHeadStrap,apremiumaccessoryforAppleVisionPro,enhancinguserexperienceandcomfort[7][9]−ResMed′secosysteminconnecteddigitalhealthispositionedtocapitalizeonemergingopportunities,particularlywiththeriseofconsumerwearablesandGLP−1therapies[2][4]−Thecompanycontinuestofocusonoperationalexcellence,whichhascontributedtomarginexpansionandstrongcashflowgeneration[2][4]RegionalPerformance−RevenueintheU.S.,Canada,andLatinAmericagrewby121.42 [3][5][24] Operational Highlights - The company launched the Kontor Head Strap, a premium accessory for Apple Vision Pro, enhancing user experience and comfort [7][9] - ResMed's ecosystem in connected digital health is positioned to capitalize on emerging opportunities, particularly with the rise of consumer wearables and GLP-1 therapies [2][4] - The company continues to focus on operational excellence, which has contributed to margin expansion and strong cash flow generation [2][4] Regional Performance - Revenue in the U.S., Canada, and Latin America grew by 12%, while Europe, Asia, and other markets saw an 8% increase on a constant currency basis [8][24] - The Residential Care Software segment also experienced an 8% revenue increase, indicating solid organic growth [8][24] Dividend and Shareholder Returns - ResMed declared a quarterly cash dividend of 0.53 per share, payable on March 20, 2025, reflecting the company's commitment to returning value to shareholders [10]