ResMed (RMD) Q4 2024 earnings summary

Executive summary

• Q4 FY24 revenue reached $1.22 billion, up 9% year-over-year, driven by strong demand for devices, masks, and SaaS solutions across all regions.

• Non-GAAP operating income rose 30% to $400.5 million, with non-GAAP EPS up 30% to $2.08.

• Robust performance supported by digital health platforms, with over 19 billion nights of medical data and 26 million cloud-connected devices deployed globally.

• Benefited from global trends such as increased GLP-1 usage and consumer tech wearables, driving more patients into diagnosis and therapy.

• Quarterly dividend increased by 10% to $0.53 per share.

Financial highlights

• Q4 FY24 group revenue was $1.22 billion, up 9% headline and 10% in constant currency year-over-year.

• Device sales grew 6% globally; masks and accessories sales rose 15% year-over-year.

• Non-GAAP gross margin for Q4 FY24 was 59.1%, up 330 basis points year-over-year.

• Cash flow from operations was $440 million in Q4; capital expenditures were $25 million.

• Net income for Q4 was $292 million, up 27% year-over-year.

Outlook and guidance

• Gross margin guidance for FY25 is 59%-60%, with freight costs expected to be a headwind but offset by cost optimization and favorable product mix.

• SG&A expenses as a percentage of revenue expected at 18%-20% for FY25; R&D expenses at 6%-7%.

• Effective tax rate for FY25 estimated at 19%-21%.

• Continued share repurchases of ~$50 million per quarter planned for FY25.

• Investor Day scheduled for September 30, 2024.