Masimo (Nasdaq: MASI) today announced its financial results for
the fourth quarter and full-year ended December 28, 2024 and
provided updated estimates for its full-year 2025 guidance.
Fourth Quarter 2024 Financial Results:
- Consolidated revenue was $601 million, representing 9% growth
on a reported and constant currency basis(1);
- Healthcare revenue was $368 million, representing 8% growth on
a reported basis and 9% growth on a constant currency
basis(1);
- Non-healthcare revenue was $232 million, representing 11%
growth on a reported and constant currency basis(1);
- GAAP net loss per basic share was ($6.52), which included an
impairment of goodwill and intangibles for Sound United; and
- Non-GAAP net income per diluted(1) share was $1.80,
representing 44% growth versus the prior year period.
Full-Year 2024 Financial Results:
- Consolidated revenue was $2,094 million, representing 2% growth
on a reported basis and 3% growth on a constant currency
basis(1);
- Healthcare revenue was $1,395 million, representing 9% growth
on a reported basis and 10% growth on a constant currency
basis(1);
- Non-healthcare revenue was $699 million, representing a 10%
decline on a reported basis and a 9% decline on a constant currency
basis(1);
- GAAP net loss per basic share was ($5.72), which included an
impairment of goodwill and intangibles for Sound United; and
- Non-GAAP net income per diluted share(1) was $4.40,
representing 16% growth versus the prior year.
Katie Szyman, Chief Executive Officer of Masimo, said “I am
extremely excited about the opportunity to lead such an innovative
organization as we refocus on our core healthcare business. There
are numerous unmet clinical needs that we are well-positioned to
address and we have strong momentum behind us. I look forward to
interfacing with our customers and discussing our differentiated
solutions for patient care. Our 2024 results clearly demonstrate
the strong growth and earnings power of our healthcare business. We
had a record year in terms of gaining share through customer
contracts. As a result of our strategic realignment efforts in the
fourth quarter, we expect to see increased earnings and cash flow
in 2025 and beyond.”
Updated Full-Year 2025 Financial Guidance(2):
- Healthcare revenue of $1,500 million to $1,530 million,
representing 8% to 11% on a constant currency basis(1);
- Non-GAAP operating profit(2) of $413 million to $428 million;
and
- Non-GAAP earnings per diluted share(2) of $5.10 to $5.40.
______________
(1)
Represents a non-GAAP financial measure
for which a reconciliation to the most directly comparable GAAP
financial measure is included in this press release.
(2)
Represents updated guidance provided
February 25, 2025. Financial guidance includes forward-looking
non-GAAP financial measures for which reconciliations to the most
directly comparable GAAP financial measures are not available
without unreasonable efforts. See “Forward-Looking Non-GAAP
Financial Measures” within this earnings release, which identifies
the information that is unavailable without unreasonable efforts
and provides additional information. It is probable that
forward-looking non-GAAP financial measures may be materially
different from corresponding GAAP financial measures. Full-Year
2025 Financial Guidance Framework: First, starting in fiscal 2025,
the Sound United business will be classified as “held for sale” and
moved into discontinued operations. As a result, we will be
removing this business from our non-GAAP financials and no longer
providing guidance for the non-healthcare segment. Second, our
guidance does not include any use of proceeds from a sale of Sound
United, any potential benefits from new tax policies and any
potential impact of new tariffs on our business, which could be
material. For example, our products sourced from Mexico and
potentially subject to U.S. tariffs represent approximately 25% of
our healthcare cost of goods sold. Third, our guidance incorporates
the financial impact of one additional calendar week for the
healthcare business, which occurs every five or six years based on
Masimo’s 4-4-5 fiscal calendar. The incremental revenue from the
additional week is mostly offset by product line removals, ASC 842
and other factors.
Conference Call
The Company will conduct its fourth quarter 2024 investor
conference call today, February 25, 2025 at 4:30 p.m. Eastern Time.
To register for the conference call and receive the dial-in number,
please use the following link:
https://registrations.events/direct/Q4I407283360. A replay of the
webcast and conference call will be available shortly after the
conclusion of the call and will be archived on the Company’s
website.
Website Information
To access important information related to Masimo’s fourth
quarter 2024 investor conference call, including the audio webcast
and investor presentation, please visit the Investor Relations
sections of Masimo’s website at https://investor.masimo.com.
Non-GAAP Financial Measures
The non-GAAP financial measures contained herein are a
supplement to the corresponding financial measures prepared in
accordance with U.S. GAAP. The non-GAAP financial measures
presented exclude the items described below. Management believes
that adjustments for these items assist investors in making
comparisons of period-to-period operating results. Furthermore,
management also believes that these items are not indicative of the
Company’s on-going operating performance. These non-GAAP financial
measures have certain limitations in that they do not reflect all
of the costs associated with the operations of the Company’s
business as determined in accordance with GAAP.
Therefore, investors should consider non-GAAP financial measures
in addition to, and not as a substitute for, or as superior to,
measures of financial performance prepared in accordance with GAAP.
The non-GAAP financial measures presented by the Company may be
different from the non-GAAP financial measures used by other
companies.
The Company has presented the following non-GAAP measures to
assist investors in understanding the Company’s net operating
results on an on-going basis: (i) constant currency revenue growth
percentage, (ii) non-GAAP net income (prior definition and updated
definition), (iii) non-GAAP (net income) earnings per diluted share
(prior definition and updated definition) and (iv) non-GAAP
operating income/margin (prior definition and updated definition).
These non-GAAP financial measures may also assist investors in
making comparisons of the Company’s operating results with those of
other companies. Management believes constant currency product
revenue growth, non-GAAP operating income/margin, non-GAAP net
income and non-GAAP earnings per diluted share are important
measures in the evaluation of the Company’s performance and uses
these measures to better understand and evaluate our business.
The non-GAAP financial measures reflect adjustments for the
following items:
Constant currency revenue
adjustments
Some of our sales agreements with foreign customers provide for
payment in currencies other than the U.S. Dollar. These foreign
currency revenues, when converted into U.S. Dollars, can vary
significantly from period-to-period depending on the average and
quarter-end exchange rates during a respective period. We believe
that comparing these foreign currency denominated revenues by
holding the exchange rates constant with the prior year period is
useful to management and investors in evaluating our revenue growth
rates on a period-to-period basis. We anticipate that fluctuations
in foreign exchange rates and the related constant currency
adjustments for calculation of our revenue growth rate will
continue to occur in future periods.
Acquired tangible asset
amortization
These transactions represent amortization expense in connection
with business or assets acquisitions associated with acquired
tangible assets and asset valuation step-ups.
Business transition and related
costs
These transactions represent gains, losses, and other related
costs associated with business transition plans. These items may
include but are not limited to severance, relocation, consulting,
leasehold exit costs, asset impairment, and other related costs to
rationalize our operational footprint and optimize business
results.
Acquired intangible asset
amortization
These transactions represent amortization expense in connection
with business or assets acquisitions associated with acquired
intangible assets including, but not limited to customer
relationships, intellectual property, trade names and
non-competition agreements.
Acquisitions, integrations,
divestitures, and related costs
These transactions represent gains, losses, and other related
costs associated with acquisitions, integrations, investments,
divestitures, assets impairments, and in-process research and
development.
Litigation related expenses and
settlements (prior definition)
These transactions represent gains, losses, and other related
costs associated with certain litigation matters, which can vary in
their characteristics, frequency and significance to our operating
results.
Litigation related expenses and
settlements (updated definition)
We have been engaged in various legal proceedings against Apple
since January 2020, including various proceedings in the federal
courts, various proceedings in the U.S. Patent and Trademark Office
(the “PTO proceedings”), and a proceeding in the U.S. International
Trade Commission (the “ITC proceeding”). Although we previously
excluded only expenses relating to the ITC proceeding from the
definition of “Litigation related expenses and settlements”,
beginning with the first quarter of 2024, we have revised the
definition of “Litigation related expenses and settlements” to
exclude not only expenses relating to the ITC proceeding, but also
all other Apple litigation expenses, including those relating to
the federal court proceedings and the PTO proceedings. We believe
all of the Apple litigation expenses are unique in nature and not
indicative of the Company’s on-going operating performance, and
this updated definition will provide more useful information to
investors by facilitating period-to-period comparisons of our
financial performance that otherwise may be obscured by the
significant fluctuations in Apple-related litigation expenses.
Other adjustments
In the event there are gains, losses and other adjustments which
impact period-to-period comparability and do not represent the
underlying ongoing results of the business, the Company may choose
to exclude these from non-GAAP earnings.
Realized and unrealized gains or
losses
These transactions represent gains, losses, and other related
costs associated with foreign currency denominated transactions and
investments. Changes in the underlying currency rates relative to
the U.S. Dollar may result in realized and unrealized foreign
currency gains and losses between the time these receivables and
payables arise and the time that they are settled in cash.
Unrealized and realized gains and losses on investments may impact
the Company’s reported results of operations for a period. These
items are highly variable, difficult to predict and outside the
control of those responsible for the underlying operations of the
business. Other items also included here are mark-to-market gains
and losses of derivative contracts that are not designated as
hedging instruments or the ineffective portions of cash flow
hedges.
Financing related
adjustments
The Company may enter into various financial arrangements
whereby costs are incurred and certain instrument features are
valued and expensed accordingly but are not necessarily indicative
of the on-going cash flow generation of the Company and therefore
excludes these costs from non-GAAP earnings. For GAAP earnings per
diluted share purposes, the Company cannot reflect the
anti-dilutive impact, if applicable, in its diluted shares
calculations. However, the Company believes that reflecting the
anti-dilutive impact of these instruments in non-GAAP earnings per
diluted share provides management and investors with useful
information in evaluating the financial performance of the Company
on a per share basis.
Tax impact of non-GAAP
adjustments
In order to reflect the tax effected impact of the non-GAAP
adjustments, the Company will adjust the non-GAAP earnings by the
approximate tax impact of these adjustments.
Excess tax benefits from stock-based
compensation expense
GAAP requires that excess tax benefits recognized on stock-based
compensation expense be reflected in our provision for income taxes
rather than paid-in capital. As these excess tax benefits may be
highly variable from period-to-period, the Company may choose to
exclude these tax benefits from non-GAAP earnings to facilitate
comparability between periods and with peers.
Forward-Looking Non-GAAP Financial Measures
This presentation also includes certain forward-looking non-GAAP
financial measures. We calculate forward-looking non-GAAP financial
measures based on internal forecasts that omit certain amounts that
would be included in GAAP financial measures. For instance, we
exclude the impact of certain charges related to acquisitions,
integrations, divestitures and related costs; business transition
and related costs; litigation related expenses and settlements;
realized and unrealized gains or losses; tax related adjustments;
and other adjustments. We have not provided quantitative
reconciliations of these forward-looking non-GAAP financial
measures to the most directly comparable forward-looking GAAP
financial measures because the excluded items are not available on
a prospective basis without unreasonable efforts. For example, the
timing of certain transactions is difficult to predict because
management's plans may change. In addition, the Company believes
such reconciliations would imply a degree of precision and
certainty that could be confusing to investors. It is probable that
these forward-looking non-GAAP financial measures may be materially
different from the corresponding GAAP financial measures.
Forward-Looking Statements
All statements other than statements of historical facts
included in this press release that address activities, events or
developments that we expect, believe or anticipate will or may
occur in the future are forward-looking statements including, in
particular, the statements about our expectations regarding our
2025 financial guidance, including GAAP and non-GAAP consolidated
revenue, healthcare revenue, non-healthcare revenue, consolidated
operating income and consolidated earnings per diluted share. These
forward-looking statements are based on management’s current
expectations and beliefs and are subject to uncertainties and
factors, all of which are difficult to predict and many of which
are beyond our control and could cause actual results to differ
materially and adversely from those described in the
forward-looking statements. These risks include, but are not
limited to, those related to: our dependence on Masimo SET® and
Masimo rainbow SET™ products and technologies for substantially all
of our revenue; any failure in protecting our intellectual property
exposure to competitors’ assertions of intellectual property
claims; the highly competitive nature of the markets in which we
sell our products and technologies; any failure to continue
developing innovative products and technologies; our ability to
successfully integrate Sound United’s brands into our business; our
ability to address and expand into new markets; the lack of
acceptance of any of our current or future products and
technologies; obtaining regulatory approval of our current and
future products and technologies; the risk that the implementation
of our international realignment will not continue to produce
anticipated operational and financial benefits, including a
continued lower effective tax rate; the loss of our customers; the
failure to retain and recruit senior management; matters relating
to future board and management leadership; product liability claims
exposure; a failure to obtain expected returns from the amount of
intangible assets we have recorded; the maintenance of our brand;
the amount and type of equity awards that we may grant to employees
and service providers in the future; our ongoing litigation and
related matters; the ability to effect any potential separation of
our consumer business described above and to meet any of the
conditions related thereto; the approval of any such potential
separation by Masimo’s board of directors; the ability of any
separated businesses to be successful; potential uncertainty during
the pendency of any such potential separation that could affect
Masimo’s financial performance; the possibility that any potential
separation will not be completed within the anticipated time period
or at all; the possibility that any such potential separation will
not achieve its intended benefits; the possibility of disruption,
including changes to existing business relationships, disputes,
litigation or unanticipated costs in connection with any such
potential separation; the impact on our employees; the uncertainty
of the expected financial performance of Masimo prior to and
following completion of any such potential separation; negative
effects of the announcement or pendency of any such potential
separation on the market price of Masimo’s securities and/or on the
financial performance of Masimo; evolving legal, regulatory and tax
regimes; potential negative effects or impact on our business from
new international trade tariffs, changes in general economic and/or
industry specific conditions; actions by third parties, including
government agencies; and other factors discussed in the “Risk
Factors” section of our most recent periodic reports filed with the
Securities and Exchange Commission (“SEC”), including our most
recent Form 10-K and Form 10-Q, all of which you may obtain for
free on the SEC’s website at www.sec.gov. Although we believe that
the expectations reflected in our forward-looking statements are
reasonable, we do not know whether our expectations will prove
correct. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof,
even if subsequently made available by us on our website or
otherwise. We do not undertake any obligation to update, amend or
clarify these forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be
required under applicable securities laws.
Fourth Quarter and Full-Year 2024
Actuals versus Fourth Quarter and Full-Year 2023
Actuals:
RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT
CURRENCY REVENUE(1):
Three Months Ended
(in millions, except
percentages)
December 28,
2024
December 30,
2023
GAAP healthcare revenue
$
368.5
$
339.9
Constant currency revenue adjustments
0.9
N/A
Non-GAAP healthcare constant currency
revenue
$
369.4
$
339.9
GAAP healthcare revenue growth
percentage
8.4
%
Non-GAAP healthcare constant currency
revenue growth percentage
8.7
%
___________
(1)
May not foot due to rounding.
RECONCILIATION OF NON-HEALTHCARE GAAP TO NON-GAAP
CONSTANT CURRENCY REVENUE(1):
Three Months Ended
(in millions, except
percentages)
December 28,
2024
December 30,
2023
GAAP non-healthcare revenue
$
232.2
$
209.0
Constant currency revenue adjustments
(0.7
)
N/A
Non-GAAP healthcare constant currency
revenue
$
231.5
$
209.0
GAAP non-healthcare revenue growth
percentage
11.1
%
Non-GAAP non-healthcare constant currency
revenue growth percentage
10.7
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT
CURRENCY REVENUE(1):
Twelve Months Ended
(in millions, except
percentages)
December 28,
2024
December 30,
2023
GAAP healthcare revenue
$
1,395.2
$
1,275.5
Constant currency revenue adjustments
4.8
N/A
Non-GAAP healthcare constant currency
revenue
$
1,400.1
$
1,275.5
GAAP healthcare revenue growth
percentage
9.4
%
Non-GAAP healthcare constant currency
revenue growth percentage
9.8
%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF NON-HEALTHCARE GAAP TO NON-GAAP
CONSTANT CURRENCY REVENUE(1):
Twelve Months Ended
(in millions, except
percentages)
December 28,
2024
December 30,
2023
GAAP non-healthcare revenue
$
699.1
$
772.6
Constant currency revenue adjustments
3.2
N/A
Non-GAAP non-healthcare constant currency
revenue
$
702.3
$
772.6
GAAP non-healthcare revenue growth
percentage
(9.5
)%
Non-GAAP non-healthcare constant currency
revenue growth percentage
(9.1
)%
__________________
(1)
May not foot due to rounding.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET
INCOME PER DILUTED SHARE(1):
Three Months Ended
December 28,
2024
December 30,
2023
(in millions, except per share
amounts)
$
Per Share
$
Per Share
GAAP net (loss) income
$
(349.6
)
$
(6.52
)
(2
)
$
34.0
$
0.63
Non-GAAP adjustments:
Adjustment from basic to diluted
shares(2)
—
0.11
—
—
Acquired tangible asset amortization
0.8
0.01
0.9
0.02
Acquired intangible asset amortization
9.2
0.17
9.1
0.17
Acquisition, integration, divestiture, and
related costs(3)
307.3
5.63
5.1
0.09
Business transition and related costs
134.0
2.46
9.7
0.18
Litigation related expenses, settlements
and awards
32.7
0.60
9.9
0.18
Realized and unrealized gains or
losses
(6.4
)
(0.12
)
8.0
0.15
Financing related adjustments
0.5
0.01
0.5
0.01
Tax impact of non-GAAP adjustments
(36.5
)
(0.67
)
(12.0
)
(0.22
)
Excess tax benefits from stock-based
compensation expense
(0.8
)
(0.02
)
0.2
—
Tax related adjustments
—
—
(8.2
)
(0.15
)
Total non-GAAP adjustments
440.7
8.19
23.1
0.43
Non-GAAP net income (prior definition)
$
91.1
$
1.67
$
56.9
$
1.06
Litigation related expenses and
settlements
9.3
0.17
13.1
0.24
Tax impact of non-GAAP adjustments
(2.2
)
(0.04
)
(3.1
)
(0.06
)
Non-GAAP net income (updated
definition)
$
98.2
$
1.80
$
66.9
$
1.25
Weighted average shares
outstanding-basic(2)
53.6
52.8
Weighted average shares
outstanding-diluted
54.6
53.7
__________________
(1)
May not foot due to rounding.
(2)
For GAAP earnings per diluted share
purposes, the Company cannot reflect the anti-dilutive impact, if
applicable, in its diluted shares calculations.
(3)
Includes an impairment of goodwill and
intangibles related to Sound United amounting to $304 million in
fiscal 2024.
RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET
INCOME PER DILUTED SHARE(1):
Twelve Months Ended
December 28,
2024
December 30,
2023
(in millions, except per share
amounts)
$
Per Share
$
Per Share
GAAP net (loss) income
$
(304.9
)
$
(5.72
)
(2
)
$
81.5
$
1.51
Non-GAAP adjustments:
Adjustment from basic to diluted
shares(2)
—
0.12
—
—
Acquired tangible asset amortization
3.2
0.06
5.0
0.09
Acquired intangible asset amortization
36.8
0.68
38.1
0.70
Acquisition, integration, divestiture, and
related costs(3)
324.1
5.95
23.5
0.44
Business transition and related costs
153.7
2.82
13.9
0.26
Litigation related expenses, settlements
and awards
70.2
1.29
48.4
0.89
Other adjustments
1.3
0.02
3.9
0.07
Realized and unrealized gains or
losses
(0.6
)
(0.01
)
1.2
0.02
Financing related adjustments
1.9
0.03
1.9
0.03
Tax impact of non-GAAP adjustments
(65.6
)
(1.20
)
(34.8
)
(0.64
)
Excess tax benefits from stock-based
compensation expense
(5.7
)
(0.10
)
(2.9
)
(0.05
)
Tax related adjustments
—
—
(8.2
)
(0.15
)
Total non-GAAP adjustments
519.2
9.66
90.0
1.66
Non-GAAP net income (prior definition)
$
214.3
$
3.94
$
171.6
$
3.17
Litigation related expenses and
settlements
33.3
0.61
43.4
0.80
Tax impact of non-GAAP adjustments
(8.0
)
(0.15
)
(10.3
)
(0.19
)
Non-GAAP net income (updated
definition)
$
239.7
$
4.40
$
204.8
$
3.79
Weighted average shares
outstanding-basic(2)
53.3
52.8
Weighted average shares
outstanding-diluted
54.4
54.1
__________________
(1)
May not foot due to rounding.
(2)
For GAAP earnings per diluted share
purposes, the Company cannot reflect the anti-dilutive impact, if
applicable, in its diluted shares calculations.
(3)
Includes an impairment of goodwill and
intangibles related to Sound United amounting to $304 million in
fiscal 2024.
Full-Year 2025 Financial
Guidance(1)(2):
RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT
CURRENCY REVENUE GUIDANCE:
Low
High
(in millions, except
percentages)
Full-Year 2025
Guidance
Full-Year 2025
Guidance
Full-Year 2024 Actual
GAAP healthcare revenue
$
1,500
$
1,530
$
1,395
Constant currency revenue adjustments
13
13
N/A
Non-GAAP healthcare constant currency
revenue
$
1,513
$
1,543
$
1,395
GAAP healthcare revenue growth
percentage
8
%
10
%
Non-GAAP healthcare constant currency
revenue growth percentage
8
%
11
%
__________________
(1)
May not foot due to rounding.
(2)
Updated guidance provided on February 25,
2025.
MASIMO CORPORATION
CONDENSED CONSOLIDATED BALANCE
SHEETS
(unaudited, in
millions)
December 28,
2024
December 30,
2023
ASSETS
Current assets
Short-term investments
$ 177.6
$ 163.0
Trade accounts receivable
411.3
348.2
Related party receivables
15.2
7.3
Inventories
459.2
545.0
Asset held for sale
17.4
—
Other current assets
145.1
168.4
Total current assets
1,225.8
1,231.9
Lease receivable, non-current
58.7
71.4
Deferred costs and other contract
assets
61.0
57.3
Property and equipment, net
381.6
424.4
Customer relationships, net
157.6
177.7
Acquired technologies, net
102.9
129.4
Other intangible assets, net
90.4
112.8
Trademarks
207.3
232.4
Goodwill
96.7
407.7
Deferred tax assets
143.6
107.2
Other non-current assets
100.1
89.3
Total assets
$ 2,625.7
$ 3,041.5
LIABILITIES AND EQUITY
Current liabilities
Accounts payable
$ 252.8
$ 251.5
Accrued compensation
83.6
62.6
Deferred revenue and other
contract-related liabilities, current
95.5
87.3
Other current liabilities
185.8
162.4
Total current liabilities
617.7
563.8
Long-term debt
727.9
871.7
Deferred tax liabilities
100.1
111.7
Other non-current liabilities
128.1
129.5
Total liabilities
1,573.8
1,676.7
Commitments and contingencies
Stockholders’ equity
Common stock
0.1
0.1
Treasury stock
(1,169.2)
(1,169.2)
Additional paid-in capital
838.3
783.4
Accumulated other comprehensive loss
(108.2)
(45.3)
Retained earnings
1,490.9
1,795.8
Total stockholders’ equity
1,051.9
1,364.8
Total liabilities and stockholders’
equity
$ 2,625.7
$ 3,041.5
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(unaudited, in millions,
except per share amounts)
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
December 28,
2024
December 30,
2023
Revenue:
Product revenue
$
550.4
$
524.2
$
1,980.3
$
1,954.2
Related party revenue
50.3
24.7
114.1
93.9
Total revenue
600.7
548.9
2,094.4
2,048.1
Cost of goods sold
356.0
286.2
1,090.0
1,044.6
Gross profit
244.7
262.7
1,004.4
1,003.5
Operating expenses:
Selling, general and administrative
221.5
159.8
743.8
664.0
Research and development
77.7
38.0
222.8
175.2
Litigation settlements
0.5
17.8
0.5
17.8
Impairment charges, including intangible
assets and goodwill
304.0
3.0
304.0
10.0
Total operating expenses
603.7
218.6
1,271.1
867.0
Operating (loss) income
(359.0
)
44.1
(266.7
)
136.5
Non-operating loss
(2.6
)
(20.9
)
(38.6
)
(48.4
)
(Loss) income before provision for income
taxes
(361.6
)
23.2
(305.3
)
88.1
(Benefit) provision for income taxes
(12.1
)
(10.8
)
(0.4
)
6.6
Net (loss) income
$
(349.6
)
$
34.0
$
(304.9
)
$
81.5
Net (loss) income per share:
Basic
$
(6.52
)
$
0.64
$
(5.72
)
$
1.54
Diluted
$
(6.52
)
$
0.63
$
(5.72
)
$
1.51
Weighted-average shares used in per share
calculations:
Basic
53.6
52.8
53.3
52.8
Diluted
53.6
54.1
53.3
54.1
The following table presents details of the stock-based
compensation expense that is included in each functional line item
in the consolidated statements of operations (in millions):
Three Months Ended
Twelve Months Ended
December 28,
2024
December 30,
2023
Year Ended December
28, 2024
Year Ended December
30, 2023
Cost of goods sold
$
0.2
$
0.3
$
1.0
$
1.1
Selling, general and administrative
8.2
5.6
25.2
(1.5
)
Research and development
3.5
3.5
15.3
7.4
Total
$
11.9
$
9.4
$
41.5
$
7.0
MASIMO CORPORATION
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(unaudited, in
millions)
Twelve Months Ended
December 28,
2024
December 30,
2023
Cash flows from operating
activities:
Net (loss) income
$
(304.9
)
$
81.5
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization
103.0
98.3
Stock-based compensation
41.5
7.0
Amortization of debt issuance costs
1.9
1.9
Loss on disposal of inventory, equipment
and other assets
98.7
0.8
Provision for credit losses
1.1
1.1
Benefit from deferred income taxes
(38.2
)
(35.6
)
Impairment charges
304.0
10.0
Changes in operating assets and
liabilities:
(Increase) decrease in trade accounts
receivable
(65.0
)
88.2
(Increase) decrease in related party
receivable
(7.9
)
2.0
(Increase) decrease in inventories
(7.5
)
(69.2
)
(Increase) decrease in other current
assets
6.6
(8.6
)
(Increase) decrease in lease receivable,
net
12.7
1.7
(Increase) decrease in deferred costs and
other contract assets
(4.0
)
(14.4
)
(Increase) decrease in other non-current
assets
(2.3
)
3.0
Increase (decrease) in accounts
payable
14.8
(19.6
)
Increase (decrease) in accrued
compensation
22.2
(26.8
)
Increase (decrease) in deferred revenue
and other contract-related liabilities
10.3
7.1
Increase (decrease) in income taxes
payable
2.2
(15.1
)
Increase (decrease) in accrued
liabilities
17.7
(22.8
)
Increase (decrease) in other non-current
liabilities
(10.5
)
3.6
Net cash provided by (used in)
operating activities
196.4
94.1
Cash flows from investing
activities:
Purchases of property and equipment,
net
(20.0
)
(44.0
)
Increase in intangible assets
(31.1
)
(43.7
)
Business combinations, net of cash
acquired
—
7.5
Other strategic investing activities
(0.1
)
(1.0
)
Net cash (used in) provided by
investing activities
(51.2
)
(81.2
)
Cash flows from financing
activities:
Borrowings under revolving line of
credit
98.8
189
Repayments under revolving line of
credit
(237.8
)
(240.2
)
Proceeds from issuance of common stock
25.2
7.0
Payroll tax withholdings on behalf of
employees for stock options
(11.8
)
(12.9
)
Net cash (used in) provided by
financing activities
(125.6
)
(57.1
)
Effect of foreign currency exchange rates
on cash
(6.4
)
2.8
Net increase in cash, cash equivalents and
restricted cash
13.2
(41.4
)
Cash, cash equivalents and restricted cash
at beginning of period
168.2
209.6
Cash, cash equivalents and restricted cash
at end of period
$
181.4
$
168.2
About Masimo
Masimo (Nasdaq: MASI) is a global technology company that
develops and produces a wide array of industry-leading monitoring
technologies, including innovative measurements, sensors, patient
monitors, and automation and connectivity solutions. In addition,
Masimo Consumer Audio is home to eight legendary audio brands,
including Bowers & Wilkins®, Denon®, Marantz®, and Polk Audio®.
Our mission is to improve life, improve patient outcomes; and
reduce the cost of care. Masimo SET® Measure-through Motion and Low
Perfusion™ pulse oximetry, introduced in 1995, has been shown in
over 100 independent and objective studies to outperform other
pulse oximetry technologies. Masimo SET® has also been shown to
help clinicians reduce severe retinopathy of prematurity in
neonates, improve CCHD screening in newborns, and, when used for
continuous monitoring with Masimo Patient SafetyNet™ in
post-surgical wards, reduce rapid response team activations, ICU
transfers, and costs. Masimo SET® is estimated to be used on more
than 200 million patients in leading hospitals and other healthcare
settings around the world, and is the primary pulse oximetry at all
10 U.S. hospitals as ranked in the 2024 Newsweek World’s Best
Hospitals listing. In 2005, Masimo introduced rainbow® Pulse
CO-Oximetry technology, allowing noninvasive and continuous
monitoring of blood constituents that previously could only be
measured invasively, including total hemoglobin (SpHb®), oxygen
content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®),
Pleth Variability Index (PVi®), RPVi™ (rainbow® PVi), and Oxygen
Reserve Index (ORi™). In 2013, Masimo introduced the Root® Patient
Monitoring and Connectivity Platform, built from the ground up to
be as flexible and expandable as possible to facilitate the
addition of other Masimo and third-party monitoring technologies;
key Masimo additions include Next Generation SedLine® Brain
Function Monitoring, O3® Regional Oximetry, and ISA™ Capnography
with NomoLine® sampling lines. Masimo’s family of continuous and
spot-check monitoring Pulse CO-Oximeters® includes devices designed
for use in a variety of clinical and non-clinical scenarios,
including tetherless, wearable technology, such as Radius-7®,
Radius PPG® and Radius VSM™, portable devices like Rad-67®,
fingertip pulse oximeters like MightySat® Rx, and devices available
for use both in the hospital and at home, such as Rad-97® and the
Masimo W1® Medical Watch. Masimo hospital and home automation and
connectivity solutions are centered around the Masimo Hospital
Automation™ platform, and include Iris® Gateway, iSirona™, Patient
SafetyNet, Replica®, Halo ION®, UniView®, UniView :60™, and Masimo
SafetyNet™. It’s growing portfolio of health and wellness solutions
includes Radius To® and Masimo W1™. Additional information about
Masimo and its products may be found at www.masimo.com.
RPVi has not received FDA 510(k) clearance and is not available
for sale in the United States. The use of the trademark Patient
SafetyNet is under license from University HealthSystem
Consortium.
Masimo, SET, Signal Extraction Technology, Improving Patient
Outcome and Reducing Cost of Care... by Taking Noninvasive
Monitoring to New Sites and Applications, rainbow, SpHb, SpOC,
SpCO, SpMet, PVI and ORI are trademarks or registered trademarks of
Masimo Corporation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250225391908/en/
Investor Contact: Eli Kammerman (949) 297-7077
ekammerman@masimo.com
Media Contact: Evan Lamb (949) 396-3376
elamb@masimo.com
Media Contact: Longacre Square Partners
masimo@longacresquare.com
Masimo (NASDAQ:MASI)
Historical Stock Chart
From Jan 2025 to Feb 2025
Masimo (NASDAQ:MASI)
Historical Stock Chart
From Feb 2024 to Feb 2025
