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Sep 30, 2023

Masimo Q3 2023 Earnings Report

Reported financial results for the third quarter of 2023.

Key Takeaways

Masimo's consolidated revenue for Q3 2023 was $478.9 million, with healthcare revenue at $307.8 million and non-healthcare revenue at $171.1 million. The company's GAAP net income per diluted share was $0.20, while the non-GAAP net income per diluted share was $0.63. The performance was within the company's guidance range, with the healthcare business undergoing a transition away from COVID-era conditions.

Consolidated revenue reached $478.9 million.

Healthcare revenue amounted to $307.8 million.

Non-healthcare revenue totaled $171.1 million.

GAAP net income per diluted share was $0.20.

Total Revenue
$479M
Previous year: $549M
-12.8%
EPS
$0.63
Previous year: $1
-37.0%
Gross Profit
$235M
Previous year: $283M
-16.9%
Cash and Equivalents
$127M
Previous year: $220M
-42.2%
Free Cash Flow
-$19.7M
Previous year: $4.4M
-547.7%
Total Assets
$3B
Previous year: $3.06B
-2.0%

Masimo

Masimo

Forward Guidance

Masimo provided updated estimates for its fourth-quarter 2023 and full-year financial guidance.

Positive Outlook

  • Consolidated revenue is expected to be between $526 million and $576 million.
  • Healthcare revenue is projected to be in the range of $320 million to $345 million.
  • Non-healthcare revenue is anticipated to be between $206 million and $231 million.
  • Consolidated operating income is forecasted to be between $45 million and $59 million.
  • Consolidated net income per diluted share is expected to be between $0.45 and $0.65.

Challenges Ahead

  • The healthcare segment's fourth-quarter revenue guidance includes year-over-year foreign currency tailwinds of $1 million.
  • The non-healthcare segment's fourth-quarter revenue guidance includes year-over-year foreign currency tailwinds of $3 million.
  • Full-year 2023 revenue guidance includes year-over-year foreign currency headwinds of $6 million for healthcare.
  • Full-year 2023 revenue guidance includes year-over-year foreign currency headwinds of $9 million for non-healthcare.
  • Legal expenses associated with the Apple ITC proceedings and governance-related matters are ongoing.