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Jun 30, 2020

ResMed Q4 2020 Earnings Report

ResMed's Q4 2020 earnings were announced, with revenue increasing by 9% and non-GAAP operating profit up by 24%.

Key Takeaways

ResMed Inc. reported a 9% increase in revenue to $770.3 million for the fourth quarter of fiscal year 2020. Non-GAAP diluted earnings per share were $1.33, a 40% increase compared to the prior year period. The company saw strong sales across its mask product portfolio and increased demand for ventilators due to COVID-19.

Revenue increased by 9% to $770.3 million, or 10% on a constant currency basis.

GAAP diluted earnings per share were $1.22, while non-GAAP diluted earnings per share reached $1.33.

Net operating profit increased by 84%, with non-GAAP operating profit up by 24%.

The company supported the COVID-19 pandemic response through increased manufacturing of ventilators and ventilation mask systems.

Total Revenue
$770M
Previous year: $705M
+9.3%
EPS
$1.33
Previous year: $0.95
+40.0%
Gross Margin
58.3%
Non-GAAP Gross Margin
59.9%
Gross Profit
$449M
Previous year: $418M
+7.5%
Cash and Equivalents
$463M
Previous year: $147M
+214.8%
Free Cash Flow
$312M
Previous year: $120M
+161.1%
Total Assets
$4.59B
Previous year: $4.11B
+11.7%

ResMed

ResMed

ResMed Revenue by Segment

ResMed Revenue by Geographic Location

Forward Guidance

ResMed is confident in its ability to navigate through the ongoing challenging clinical and economic environment to deliver for all stakeholders. Sleep labs and physician practices are reopening across many geographies, and the company is seeing accelerated adoption of digital health solutions which supports its long-term strategy.

Positive Outlook

  • Sleep labs and physician practices are reopening across many geographies.
  • Accelerated adoption of digital health solutions.
  • Strong foundation to accelerate growth over the longer term.
  • Increased manufacturing of ventilators.
  • Supporting customers with digital health solutions.

Challenges Ahead

  • Ongoing challenging clinical and economic environment.
  • Uncertain environment.
  • Declines in manufacturing and procurement efficiencies driven by higher air freight costs.
  • Impact of legal settlement expenses in the prior year.
  • COVID-19 pandemic.

Revenue & Expenses

Visualization of income flow from segment revenue to net income