Masimo reports second quarter 2023 financial results

Masimo Corporation announced its financial results for the second quarter of 2023, ended July 1, 2023.

Second quarter 2023 financial results
Consolidated revenue was $455.3 million, comprised of healthcare revenue of $281.1 million and non-healthcare revenue of $174.2 million.

Shipments of noninvasive technology boards and instruments were 64,100.

Consolidated GAAP operating income was $29.3 million. Consolidated non-GAAP operating income was $58.6 million. Consolidated GAAP net income was $15.7 million, or $0.29 per diluted share. Consolidated non-GAAP net income was $33.7 million, or $0.62 per diluted share.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said, “Second quarter 2023 was a tale of two realities. Our healthcare revenues and earnings declined sequentially and annually, but we gained new hospital customers at a record level, despite strong results in the prior three years, and retained existing hospital customers. We are disappointed with our results this quarter. Our updated guidance assumes inpatient volumes will not return to the levels we expected this year and we will not receive some of the new large orders we are expecting for W1™, Rad-G™ and Rad-97™. I want to emphasize that because of our growth in market share the past few years, and our innovative new products, we remain optimistic about Masimo’s future.”

For additional financial details, please visit the Investor Relations section of the Company’s website at investor.masimo.com to access the second quarter 2023 earnings presentation materials.

Updated third-quarter 2023 and full-year 2023 financial guidance
The Company provided the following updated estimates for its third-quarter 2023 and full-year financial guidance:

Supplementary non-GAAP financial information
For additional non-GAAP financial details, please visit the Investor Relations section of the Company’s website at investor.masimo.com to access Supplementary Financial Information.

Non-GAAP financial measures
The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude the items described below. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of the Company’s on-going operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of the Company’s business as determined in accordance with GAAP.

Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.

The Company has presented the following non-GAAP measures to assist investors in understanding the Company’s net operating results on an on-going basis: (i) constant currency revenue growth %, (ii) non-GAAP net income, (iii) non-GAAP (net income) earnings per diluted share and (iv) non-GAAP operating income/margin. These non-GAAP financial measures may also assist investors in making comparisons of the Company’s operating results with those of other companies. Management believes constant currency revenue growth, non-GAAP operating income/margin, non-GAAP net income and non-GAAP earnings per diluted share are important measures in the evaluation of the Company’s performance and uses these measures to better understand and evaluate our business.
MB Bureau