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ResMed 8-K Report, Financial Results (Oct 24, 2024)

Reports
Earnings & Results·Other Events·Exhibits & Filings
Filing Date
Filed October 24, 2024
Period End
October 24, 2024
Securities
RMDRSMDF
In the record · 2016–202610-K1410-Q338-K85

RMD filed 14 annual reports (10-K), 33 quarterly reports (10-Q) and 85 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Material agreement8-K · Jul ’19Jul ’19
  3. Leadership change8-K · Jul ’22Jul ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed October 24, 2024. Cited figures are marked; the original filing is the authoritative source.

ResMed Inc. reported results for its first quarter of fiscal year 2025, the quarter ended September 30, 2024.

Revenue rose 11% to $1,224.5 milliona ($1.2 billion), up 11% on a constant currency basis. Gross margin improved 420 basis points to 58.6%, and non-GAAP gross margin improved 320 basis points to 59.2%. Income from operations increased 34% to $387.3 million, and non-GAAP income from operations rose 27% to $406.4 million.

Net income was $311.4 millionb, or diluted earnings per share of $2.11, compared with $1.49 a year earlier. Non-GAAP diluted earnings per share was $2.20, up 34%. Operating cash flow was $325.5 million, compared with $286.3 million in the prior-year quarter.

During the quarter, ResMed paid $78 millionc in dividends and repurchased 222,000 shares for $50 million. Cash and cash equivalents rose to $426.4 million at September 30, 2024, from $238.4 million at June 30, 2024. Long-term debt fell to $667.6 million from $697.3 million.

The company also announced a quarterly cash dividend of $0.53d per share, with a record date of November 7, 2024, payable December 12, 2024, and an ex-dividend date of November 6, 2024. Management highlighted the 2030 strategy unveiled at its 2024 Investor Day, the renaming of its reporting units to Sleep and Breathing Health and Residential Care Software, and the upcoming launch of the AirTouch N30i fabric mask.

02—Key points

Key Highlights

  1. Revenue increased 11% to $1,224.5 million, up 11% on a constant currency basis, driven by sleep devices and masks and strong growth in Residential Care Software.
  2. Gross margin rose 420 basis points to 58.6%; non-GAAP gross margin rose 320 basis points to 59.2%, attributed to manufacturing efficiencies, component cost improvements and higher average selling prices.
  3. Income from operations increased 34% to $387.3 million; non-GAAP income from operations increased 27% to $406.4 million.
  4. Diluted EPS was $2.11 versus $1.49 a year earlier; non-GAAP diluted EPS was $2.20, up 34%.
  5. Operating cash flow was $325.5 million, and the company repurchased $50 million of stock and paid $78 million in dividends during the quarter.
  6. Declared a quarterly cash dividend of $0.53 per share, with a November 7, 2024 record date and December 12, 2024 payment date.
  7. Reporting units were renamed Sleep and Breathing Health and Residential Care Software, in line with the 2030 strategy announced at Investor Day in September.

03—Questions

Frequently Asked Questions

  1. How did ResMed's revenue and profitability perform in the quarter ended September 30, 2024?

    Revenue grew 11% to $1,224.5 million, and income from operations rose 34% to $387.3 million. Net income was $311.4 million, or $2.11 per diluted share, compared with $1.49 in the prior-year period. Non-GAAP diluted EPS was $2.20.

  2. What drove the improvement in gross margin?

    The filing attributes the 420 basis point gross margin increase to manufacturing efficiencies, component cost improvements and an increase in average selling prices. Non-GAAP gross margin improved by 320 basis points for the same reasons.

  3. What is the dividend announcement and what are the key dates?

    ResMed declared a quarterly cash dividend of $0.53 per share. The ex-dividend date is November 6, 2024, the record date is November 7, 2024, and payment is on December 12, 2024. CDI holders on the Australian Securities Exchange receive an equivalent amount in Australian currency, reflecting the 10:1 ratio between CDIs and NYSE shares.

  4. How did ResMed use its cash during the quarter?

    Operating cash flow was $325.5 million. The company paid $77.9 million in dividends and repurchased shares for $50.0 million. Cash and cash equivalents increased to $426.4 million at September 30, 2024, from $238.4 million at June 30, 2024. Long-term debt decreased to $667.6 million from $697.3 million.

  5. What strategic developments did ResMed highlight?

    ResMed unveiled its 2030 strategy at its 2024 Investor Day, with a five-year revenue and earnings growth outlook and an ambition to help more than 500 million people achieve their full health potential by 2030. It also announced the upcoming U.S. launch of the AirTouch N30i, its first fabric mask, and introduced new digital and AI-enabled patient products.

04—Continue

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