ResMed (RMD) UBS Global Healthcare Conference 2024 summary

Financial performance and growth outlook

• Achieved double-digit top and bottom line growth in Q1 FY2025, with over 300 basis points improvement in gross margin and EPS growth above 30% year-on-year.

• Strong leverage from efficient SG&A and R&D investments, with NOP above 30%.

• Free cash flow exceeded $300 million last quarter and $1 billion last year, supporting increased dividends and share buybacks.

• Forward-looking statements highlight continued growth through 2025 and 2026, with tempered but positive expectations in China.

• Focus on demand generation, capture, and conversion, leveraging pharma and consumer tech trends.

Industry trends and demand drivers

• GLP-1 drugs and consumer tech (Samsung, Apple) are expected to drive a significant increase in patient flow over the next 1-5 years.

• Anticipated label expansion for tirzepatide in OSA could accelerate demand, with a gradual ramp as payers and physicians adapt.

• Increased awareness from pharma and tech is creating a once-in-a-generation opportunity for patient funnel growth.

• Home sleep apnea testing and digital health tools are positioned to absorb increased demand, with proven scalability from the pandemic experience.

• Remote setup and telemedicine capabilities are fully operational, with peer-reviewed evidence supporting equivalent or better outcomes.

Product innovation and technology

• Launched AirTouch N30i mask in the U.S., featuring fabric-backed liquid silicone rubber for improved comfort and adherence.

• New mask design aims to increase resupply rates by making wear more evident, supporting better patient outcomes.

• Generative AI product Dawn acts as a digital sleep health concierge, guiding patients from screening to therapy.

• 27 million cloud-connectable devices and 20 billion nights of data enable large-scale digital health management.

• Ongoing investment in innovation, with 7% of revenue allocated to R&D.