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Dec 28, 2024

Masimo Q4 2024 Earnings Report

Masimo experienced revenue growth driven by healthcare segment performance.

Key Takeaways

Masimo reported a net loss of $349.6 million for Q4 2024 due to impairment charges related to Sound United. Revenue for the quarter increased by 9% year-over-year, driven by strong healthcare segment performance. Non-GAAP net income per diluted share grew by 44% compared to the prior year period.

Consolidated revenue grew 9% year-over-year to $601 million.

GAAP net loss of $349.6 million, driven by impairment charges.

Healthcare revenue grew 8% year-over-year to $368 million.

Non-GAAP net income per diluted share was $1.80, a 44% increase.

Total Revenue
$601M
Previous year: $549M
+9.5%
EPS
$1.8
Previous year: $1.25
+44.0%
Gross Profit
$245M
Previous year: $263M
-6.9%
Cash and Equivalents
$181M
Previous year: $163M
+11.3%

Masimo

Masimo

Forward Guidance

Masimo expects revenue growth and increased earnings for 2025, driven by strategic realignment and a focus on healthcare.

Positive Outlook

  • Healthcare revenue expected to grow by 8% to 11% in 2025.
  • Increased focus on healthcare business following strategic realignment.
  • Non-GAAP earnings per share expected to increase to between $5.10 and $5.40.
  • Strong momentum in customer contracts.
  • One additional calendar week for healthcare business revenue in 2025.

Challenges Ahead

  • Potential impact from new tariffs on products sourced from Mexico.
  • No revenue guidance provided for the non-healthcare segment.
  • Ongoing litigation-related expenses.
  • Potential impact from fluctuations in foreign currency exchange rates.
  • Cost pressures on healthcare product lines.