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Jul 01, 2023

Masimo Q2 2023 Earnings Report

Masimo's financial performance declined in healthcare revenue and earnings, but gained new hospital customers and retained existing ones.

Key Takeaways

Masimo Corporation reported consolidated revenue of $455.3 million for Q2 2023, with healthcare revenue at $281.1 million and non-healthcare revenue at $174.2 million. GAAP net income was $15.7 million, or $0.29 per diluted share, while non-GAAP net income was $33.7 million, or $0.62 per diluted share. The company gained new hospital customers at a record level but is disappointed with the results due to lower inpatient volumes and delayed large orders.

Consolidated revenue reached $455.3 million.

Healthcare revenue amounted to $281.1 million.

Non-healthcare revenue totaled $174.2 million.

GAAP net income per diluted share was $0.29; Non-GAAP net income per diluted share was $0.62.

Total Revenue
$455M
Previous year: $565M
-19.5%
EPS
$0.62
Previous year: $1.35
-54.1%
Gross Profit
$221M
Previous year: $258M
-14.3%
Cash and Equivalents
$151M
Previous year: $218M
-30.9%
Free Cash Flow
$11.7M
Previous year: -$7.1M
-264.8%
Total Assets
$3.01B
Previous year: $2.96B
+1.7%

Masimo

Masimo

Forward Guidance

The Company provided the following updated estimates for its third-quarter 2023 and full-year financial guidance: The company expects GAAP consolidated revenue of $475 to $525 million and updated full year 2023 revenue of $2,100 to $2,200 million.

Positive Outlook

  • Third-quarter 2023 GAAP consolidated revenue is projected between $475 million and $525 million.
  • Third-quarter 2023 GAAP healthcare revenue is expected to range from $305 million to $335 million.
  • Third-quarter 2023 GAAP non-healthcare revenue is forecasted between $170 million and $190 million.
  • Third-quarter 2023 GAAP operating income is guided to be between $27 million and $37 million.
  • Third-quarter 2023 GAAP net income per diluted share is projected between $0.19 and $0.32.

Challenges Ahead

  • Full-year 2023 healthcare revenue guidance includes year-over-year foreign currency headwinds of $1 million.
  • Third-quarter 2023 revenue guidance includes year-over-year foreign currency tailwinds of $2 million.
  • Guidance assumes inpatient volumes will not return to the levels we expected this year.
  • The company will not receive some of the new large orders we are expecting for W1â„¢, Rad-Gâ„¢ and Rad-97â„¢.
  • The company is disappointed with its results this quarter.