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Oct 01, 2022

Masimo Q3 2022 Earnings Report

Masimo's Q3 2022 financial results were reported, with revenue and earnings exceeding expectations.

Key Takeaways

Masimo reported strong Q3 2022 results, with consolidated revenue of $549.3 million, a 78.7% increase compared to Q3 2021. Healthcare revenue grew by 6.4% to $327.2 million, and non-healthcare revenue was $222.1 million. GAAP net income was $37.9 million, or $0.70 per diluted share, while non-GAAP net income was $53.9 million, or $1.00 per diluted share.

Consolidated revenue reached $549 million.

Healthcare revenue was $327 million, demonstrating 6% reported growth and 10% constant currency growth.

Non-healthcare revenue amounted to $222 million.

GAAP net income was $37.9 million, or $0.70 per diluted share; non-GAAP net income was $53.9 million, or $1.00 per diluted share.

Total Revenue
$549M
Previous year: $307M
+78.7%
EPS
$1
Previous year: $0.94
+6.4%
Gross Profit
$283M
Cash and Equivalents
$220M
Previous year: $652M
-66.4%
Free Cash Flow
$4.4M
Total Assets
$3.06B

Masimo

Masimo

Forward Guidance

The Company provided the following estimates for its fourth quarter and full year 2022 guidance:

Positive Outlook

  • Consolidated revenue is expected to be between $581 million and $611 million for Q4 2022.
  • Healthcare revenue is projected to be between $337 million and $352 million for Q4 2022.
  • Non-healthcare revenue is anticipated to be between $245 million and $260 million for Q4 2022.
  • Consolidated earnings per diluted share are estimated to be between $0.80 and $0.92 (GAAP) or $1.11 and $1.22 (Non-GAAP) for Q4 2022.
  • Full year 2022 revenue guidance includes year-over-year foreign currency headwinds of $35.0 million for healthcare segment.

Challenges Ahead

  • Fourth quarter 2022 and full year 2022 revenue guidance includes year-over-year foreign currency headwinds of $13.6 million and $35.0 million, respectively for healthcare segment.
  • Global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic
  • Dependence on Masimo SET® and Masimo rainbow SET™ products and technologies for substantially all of revenue
  • Any failure in protecting intellectual property exposure to competitors’ assertions of intellectual property claims
  • The highly competitive nature of the markets in which products and technologies are sold