
ResMed Delivers In-Line 3Q23; Highlights Opportunities in Digital Solutions and New Markets for Forward Growth
10/27/23 (written by: Scott Gleason) ResMed has reported its results first quarter of fiscal year 2024, which ended on September 30, 2023. The company reported a 16% increase in revenue, reaching a total of $1.1 billion for the quarter. This was inline with consensus estimates for the quarter. The company noted double digit growth in CPAP masks and software, and high single digit growth in devices in the quarter. The company also noted the roll out of its Airsense 11 machine which began in the U.S. in 2021. Airsense 11 is the company’s most advanced CPAP machine with digital connectivity providing easy set-up, installation, and patient monitoring. They noted the expansion of the launch in Japan for the system and launch in Australia and New Zealand.
Management noted on its call that it sees total global demand for patients using CPAP equipment going from 22.5 million in 2023 to 109 million by 2050.
Non-GAAP operating profit increased 10% to $318.8 million representing 28.9% of revenue. Non-GAAP EPS were $1.64 compared to $1.51 last year and street forecasts of $1.62. Management noted that it is undertaking a restructuring reducing its global workforce by 5%.
The company noted that it has been focused on rolling out its digital health ecosystem following ResMed’s acquisition of MEDIFOX DAN and the acquisition of Somnoware, a leader in digital sleep and respiratory care diagnostics software. The company’s Software-as-a-Service sector, saw a 32% revenue increase in the quarter. The company’s strategy is to be a “digital concierge,” assisting patients through treatment for sleep disorders. The company noted its Compliance Coach roll out in the U.S. to guide patients through the 90 day compliance window to qualify for reimbursement coverage. The company noted that its cloud analytics have over 16 billion nights of de-identified medical data in the cloud and over 22.5 million 100% cloud connectable medical devices sold in more than 140 countries worldwide to help guide their digital strategy.
Management also noted that it is looking at a home high-flow technology solutions for patients with COPD as a potential future product opportunity.
Mick Farrell, ResMed’s CEO, expressed his confidence in the company’s future growth prospects, citing strong patient flow and the adoption of new technologies as key drivers. He also mentioned the deployment of AI-driven software products into ResMed’s digital health ecosystem, which is expected to create innovative offerings and enhance competitiveness in the market.