01—Abstract
Summary
Summary of the 8-K filed January 30, 2025. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. filed this Form 8-K on January 30, 2025 to furnish its press release reporting results for the second quarter of fiscal year 2025, the quarter ended December 31, 2024, and to announce a quarterly cash dividend.
Revenue rose 10% to $1,282.1 milliona, and gross margin improved 300 basis points to 58.6%, with non-GAAP gross margin up 230 basis points to 59.2%. GAAP income from operations increased 52% to $417.2 million, which the company attributes partly to the prior year including $64.2 million of restructuring-related charges. Non-GAAP income from operations rose 19% to $435.9 million.
Net income was $344.6 millionb, or $2.34 per diluted share, compared with $1.42 a year earlier. Non-GAAP diluted earnings per share were $2.43, up 29%. Operating cash flow for the quarter was $308.6 million.
During the quarter the company paid $78 millionc in dividends and repurchased 307,000 shares for $75 million. Cash and cash equivalents were $521.9 million at December 31, 2024, up from $238.4 million at June 30, 2024. Separately, the board declared a quarterly cash dividend of $0.53 per share, with a record date of February 13, 2025 and payment on March 20, 2025.
The ex-dividend date is February 12, 2025. The company also cited continued growth in its Residential Care Software business, up 8%d on a constant currency basis, and management's view that consumer wearables tracking sleep and GLP-1 therapy use could drive increased patient flow.
02—Key points
Key Highlights
- Revenue increased 10% year over year to $1,282.1 million, and was up 10% on a constant currency basis.
- Gross margin improved 300 basis points to 58.6%; non-GAAP gross margin improved 230 basis points to 59.2%, driven by manufacturing and logistics efficiencies and component cost improvements.
- GAAP income from operations rose 52% to $417.2 million, partly because the prior year included $64.2 million of restructuring-related charges; non-GAAP income from operations rose 19% to $435.9 million.
- Diluted EPS was $2.34 versus $1.42 a year earlier; non-GAAP diluted EPS was $2.43, up 29%.
- Operating cash flow for the quarter was $308.6 million, below GAAP net income of $344.6 million.
- The board declared a quarterly cash dividend of $0.53 per share, with a February 13, 2025 record date and March 20, 2025 payment date.
- Residential Care Software revenue grew 8% on a constant currency basis to $156.5 million.
03—Questions
Frequently Asked Questions
How did ResMed perform in the quarter ended December 31, 2024?
Revenue rose 10% to $1,282.1 million, gross margin improved to 58.6%, and GAAP diluted EPS was $2.34 versus $1.42 a year earlier. Non-GAAP diluted EPS was $2.43, up 29%.
Why did GAAP operating income grow faster than non-GAAP operating income?
The filing states that the prior-year period included $64.2 million of restructuring-related charges. GAAP income from operations increased 52%, while non-GAAP income from operations increased 19%.
What is the dividend and when does it matter for shareholders?
The board declared a quarterly cash dividend of $0.53 per share. The ex-dividend date is February 12, 2025, the record date is February 13, 2025, and payment is March 20, 2025. CDI holders on the Australian Securities Exchange receive an equivalent amount in Australian currency.
What drove the revenue growth by region?
Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew 12%. Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew 8% on a constant currency basis. Growth was attributed to increased demand for sleep devices and masks.
How much cash did ResMed generate and return to shareholders?
Operating cash flow for the quarter was $308.6 million. The company paid $78 million in dividends and repurchased 307,000 shares for $75 million during the quarter. Cash and cash equivalents were $521.9 million at December 31, 2024.
04—Continue