ResMed sees boost from demand, recall

SAN DIEGO – ResMed reported revenue of $904 million for the first quarter of its fiscal year 2022, a 20% increase compared to the prior year period. 

Net income was $203.6 million, a 14% increase. 

“Our first-quarter results demonstrate strong performance across our business with double-digit growth in both top-line and bottom-line metrics, driven by ongoing high demand for our sleep and respiratory care products, and steady growth across our software-as-a-service business,” said Mick Farrell, ResMed CEO. “It is through the extraordinary efforts of our global ResMed team that we were able to deliver products and solutions to our customers amid unprecedented supply chain challenges that continue to restrict access to critical electronic components. As we navigate supply limitations and are forced to allocate products, we continue to ensure priority for highest-acuity and highest-need patients first, as well as working with physicians, providers, and community systems to maintain a sustainable flow of medical devices and digital health solutions to patients who need care.” 

ResMed reported revenue grew by 19% on a constant currency basis, driven by increased demand for its sleep and respiratory care devices and increased demand following a recent recall by one of its competitors, partially offset by decreased COVID-19 related demand for ventilators. 

Revenue in the U.S., Canada and Latin America, excluding software as a service, grew 22%. Revenue for software as a service grew 6%, driven by continued growth in resupply service offerings and a stabilization of patient flow in out-of-hospital care settings. 

ResMed also announced that it has concluded a settlement agreement with the Australian Tax Office, resolving a transfer pricing dispute for all prior years since 2009. The company previously recognized a tax reserve in fiscal year 2021 in anticipation of the settlement, which has a net impact of $238.7 million.