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Mar 31, 2020

ResMed Q3 2020 Earnings Report

ResMed's Q3 2020 results announced, showing revenue growth and increased profitability.

Key Takeaways

ResMed Inc. reported a 16% increase in revenue to $769.5 million for the third quarter of fiscal year 2020. Non-GAAP operating profit increased by 31%. The company is focused on combating the COVID-19 pandemic through increased ventilator production.

Revenue increased by 16% to $769.5 million, or 17% on a constant currency basis.

GAAP gross margin was 58.4%, while non-GAAP gross margin expanded 70 bps to 60.0%.

Net operating profit increased by 39%, and non-GAAP operating profit rose by 31%.

GAAP diluted earnings per share were $1.12, and non-GAAP diluted earnings per share reached $1.29.

Total Revenue
$769M
Previous year: $662M
+16.2%
EPS
$1.29
Previous year: $0.89
+44.9%
Gross Margin
58.4%
Non-GAAP Gross Margin
60%
SG&A % of Revenue
22.4%
Gross Profit
$450M
Previous year: $392M
+14.7%
Cash and Equivalents
$353M
Previous year: $147M
+140.8%
Free Cash Flow
$210M
Previous year: $125M
+68.7%
Total Assets
$4.51B
Previous year: $4.1B
+10.1%

ResMed

ResMed

ResMed Revenue by Segment

ResMed Revenue by Geographic Location

Forward Guidance

ResMed is confident in its ability to navigate the challenging environment and deliver for all stakeholders, with a strong foundation to accelerate the adoption of digital health solutions.

Positive Outlook

  • Operational resilience
  • Strong balance sheet
  • Business continuity plans
  • Growth prospects
  • Ability to serve customers and weather the crisis

Challenges Ahead

  • Challenging clinical environment
  • Challenging economic environment
  • Vigilance required in near term
  • Thoughtful approach needed for business outlook
  • Global COVID-19 pandemic