ResMed results reflect ‘cost discipline’

SAN DIEGO – ResMed reported revenue of $1.2 billion for its second quarter ended Dec. 31, 2023, a 12% increase compared to the same period the previous year. 

The company reported a net income of $208.8 million vs. $280.2 million. 

“Our second-quarter fiscal year 2024 results reflect strong double-digit growth across our combined device, masks and accessories, and residential care software businesses, as well as cost discipline to support an acceleration in profitability,” said Mick Farrell, ResMed’s CEO. “We continue to expand the production and delivery of our market-leading flow generator platforms, and we are successfully launching our latest generation platform, AirSense 11, into new markets and geographies around the world. The strong growth in patient flow we’ve seen over the past several quarters has supported ongoing device growth, as well as augmented and accelerated our replenishment programs for sustained mask and accessories growth. Organic growth of our residential care software business in home medical equipment, home health, home nursing and beyond, catalyzed by strategic acquisitions, continues to deliver and complements our core mask and accessory business growth.” 

ResMed also reported: 

• Gross margin contracted 50 bps to 55.6%; non-GAAP gross margin grew 10 bps to 56.9% 

• Income from operations decreased 2%; non-GAAP operating profit up 20% 

• Operating cash flow of $272.8 million 

• Diluted earnings per share of $1.42; non-GAAP diluted earnings per share of $1.88 

Broken down, ResMed reported revenue grew 9% for U.S., Canada, and Latin America, excluding Software-as-a-Service. 

It reported revenue for SaaS grew 24%, reflecting incremental revenue from its acquisition of MEDIFOX DAN and continued organic growth in its SaaS portfolio.