MASI - Earnings call transcript Q4 2021

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Operator

Good afternoon, ladies and gentlemen, and welcome to Masimo’s Fourth Quarter and Fiscal Year 2021 Earnings Conference Call. The company's press release is available at www.masimo.com. At this time, all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. And now I’m pleased to introduce Mr. President Development Vice Investor Masimo’s Kammerman, of and Business Relations. Eli ahead, sir. go Please

Eli Kammerman

Thank everybody. you, hello, and

today Chairman Micah me management's regarding President will Joining fiscal are forward-looking current and Executive Kiani; contain financial of Chief Vice judgment, and year including Financial our which XXXX Officer, statements, Young. certain call and This reflect CEO, expectations Joe performance.

differ risks Risk materially cause actual actual differ materially. factors However, forecasts could in could results our are they the results detail periodic from that to are projections and in and uncertainties subject filings our that to SEC. cause discussed to with our

in these You with principles accounting GAAP. a find website. of generally Also, We Relations call or to these generally in measures. will calculated section financial discussion of that our as accordance the Investor measures non-GAAP certain accepted include will financial refer this not are

company's XX-Q to informed our our recent reports with including filed information same Management provide consider and order supplementary to non-GAAP investors most and the to addition most non-GAAP reflect measures release all and The GAAP comparable intended company's directly are our make uses of In financial to the and the these sees company information results results, of underlying and business measures GAAP to such results. XX-K enable financial the indicator the measure measures management website. to that company's earnings Investors as better assesses today, non-GAAP statements evaluate financial operating included measures performance in Reconciliation of an decisions. additional believes these assess these with together measures on performance should way investment business. Form results of transparency performance. the SEC, these are increase within the to the budget, ongoing our the financial in financial

website call Joe to earnings covering I'll quarterly the will we Relations supplement a our be the pass earnings today, the we this addition Investor to In the section Kiani. release within presentation of content to issued afternoon. have posted now

Joe Kiani

thank for joining call. us you, Good fourth and and afternoon Thank year-end Eli. quarter you earnings XXXX for Masimo's

XXXX in burden and patients. hospitals global for to year with were of help and on providing millions We very the them patients technologies. able their was While health ease our by a challenging care caregivers breakthrough

made hospitals As difference with in COVID some were care. admissions, a patient products patient monitoring our overwhelmed real

and customers monitoring to on the Our first. care overburdened of reputation We demonstrated our the to our and productivity enhance by tools team The innovative chain duration mission COVID commitment dedication equipment and health and and guiding workers. to priorities last our for customers. demand our manufactured drove our responsiveness of principles challenges, long of supply despite building patients our installed products for putting record year pandemic numbers

our clinically by base used and of a ever outcomes. more the As against in products, our while X% superior revenues X%, billion by as year achieved to revenues the our optimizing acknowledging installed XX% Masimo and customers growth switched for year. result, We for grew prior XXXX and care than fiscal grew in value $X.XXX performance XXXX revenue improving

accurate with During used that the patients XXXX, LiDCO technologies rapidly enable acquired products monitoring the output caregivers and of of the products efforts our combination marketing for cardiac broadened softFlow surgery. ventilation reach respiratory of extended distress of the and the and non-invasive sales system developed capture for We internally with in hemodynamic setting. we expanded a portfolio most to data and patient regardless

on including XXXX. we I'll further earnings in discuss press with expectations constant call, announced which XXXX have growth results Our year pending exceeded our later the acquisition, positioned us currency our revenue details release. for double-digit and a of more in

and and an provide quarter fourth financial our review overview our to guidance. more of Micah detail ask you year with in I'll Now full XXXX results

Micah Young

you, Thank afternoon, good everyone. Joe, and

volume single-patient while XX%. well has record quarter more these Our shipped again were again than a for as we hospitals contracts, fourth above sensors been results for durable rate record pre-COVID as a record-breaking contracting our use expectations exceeded driver in new We demonstrate. had by our once of run quarter shipments securing patient monitoring of demand Increased another resulting in fourth Massimo. once customer year results

a converted system hospital the quarter. major we in U.S. fourth fact, technologies to Masimo In

figure points shipped technology. technology continued we boards demand XX,XXX to for the for quarter, instruments, quarterly the and was and which During highest our XXXX

end estimate And quarter approximately shipped a X% years. is the base have our base technology the our of the we of versus fourth of XXXX. installed year base considering ago. million the of quarter, end notable fourth increase X.X grown installed installed surge and at as that in boards last the This a XX We the instruments our over has

fourth grown we has over from XXXX the base fact, In that installed estimate quarter the XXXX. two of of XX% our to the fourth quarter past years

product we fourth reported growth of and million, reported on constant XXXX, a For basis. the of of currency revenue quarter on XX% $XXX basis a representing XX.X%

fourth roughly quarter revenue increased to XX% one the fourth rate over fourth growth for our quarter If the percentage to revenue, two additional the prior XXXX of three week XXXX. in the the past has quarter fourth XXXX of of from XXXX, of results extra quarter period. years points you included our the year week recall, of our which Regardless added

XXXX. of year for seasonality, quarter Our our by sensors sequentially our up prior In versus single-patient revenues with typical period, sensor line use strong the increased X% the worldwide sales third demand driven of were sensors. by set versus XX%

XXXX, our For year spike XXXX. period the were prior in purchases in of instruments the versus worldwide due to down boards and X% fourth COVID-related the technology sales of quarter

boards sales worldwide third technology the of sequentially XXXX. versus of However, instruments increased our and X% quarter

P&L. the down Moving

quarter prior to Our compared the period. basis XXX in increased non-GAAP gross fourth to points margin the XX.X% for year XX.X%

margin. in XXXX, gross experienced If we recall, quarter suppressed you fourth which inefficiencies, COVID-related our the of significant

points to prior year same non-GAAP XX as and of of our to basis to And expenses general XX.X% basis administrative XX.X% selling, year. XX% XX the a XX.X% increased research as and revenue Our compared percentage a quarter the to in percentage revenue in last quarter. development expenses non-GAAP compared decreased points

quarter, fourth was XX.X%. operating quarter. This reflects million million the XXXX operating of revenue prior dollar In profit points profit strong of margin fourth XX% of expansion the or operating non-GAAP basis margin XX.X%. operating our was of XXX an growth over prior quarter non-GAAP operating operating period, an For or comparison, $XX.X the non-GAAP $XX.X profit by year over driven performance year and margin

Moving further the down P&L.

the guidance. in was was geographic credits below higher-than-usual in shares XX.X%, was came our non-GAAP XX% that our tax due to quarter tax This combination primarily with And mix. rate last Our million. a outstanding the rate in R&D which average $XX.X was tax implied weighted for favorable

$X.XX fourth was non-GAAP reflects income was or quarter, prior $XX.X non-GAAP million or XX% net the comparison, non-GAAP diluted growth our $XX.X the share. $X.XX quarter million XXXX share. This income For EPS year per quarter. net diluted fourth per In over of

than excess results. the income Included $X.XX we delivered expectations more from prior of benefits tax Turning exceeded quarter period. business stock-based $X.XX fourth in per benefits surge was excess quarter, net GAAP of earnings Overall, to of our growth the net exceeded for fourth quarter Fourth pre-overrun the double-digit million per XXXX In rate shipments XX% dollar $XX.X XXXX income to $XX.X across that after GAAP diluted the strong profit of and revenue experienced our diluted tax we or comparison, again compensation quarter for the for was share. by shipments with And our $X.X growth of our EPS GAAP million performance driver year XXXX. share. driver GAAP in compared $XX was XX% large growth the million operating XX%. or once million in in even

was comparisons, of customers. for the of record of Looking in Masimo another operating XXXX on of growth non-GAAP growth dollar winning terms XX% we XX% back, and profit year-over-year growth delivered Despite basis. difficult X%, EPS year a new revenue

to a past profit non-GAAP XX%, our the and increased years, revenues have basis. XX% EPS by from by year we year Over XXXX, XXXX fiscal on XX% by two operating dollars fiscal

our Gateway doubled. two-year installed grown more and platform connectivity has of XX%. Root than has by for of base our via same and XX%, connected technology beds instruments base the has than more Over The our Patient by number Iris and installed period, boards increased SafetyNet

Now outlined in will into we guidance to more this call. press our more guidance go the year in in XXXX discuss the like which detail that It last Joe I'd financial on is does reflect pending detail month. impact the note acquisition release full that of our later not to important

of year-over-year reported in constant revenue product which on For headwinds. $X.XXX of currency product XXXX, and X% of we revenues Included growth $X basis reflects approximately guidance is million year-over-year projecting our a on a XX% are basis. currency billion

our non-GAAP point XXXX revenue, represents gross basis over a a is non-GAAP the margin which point guidance of XX XX over XX.X% results. period. our which And expense decrease operating basis Our reflects year XX.X%, prior guidance is increase

reflects guidance X.Xx operating dollars to profit profit leverage our operating basis Our million XX% rate. which the non-GAAP profit are growth which strong a grow reflects our improvement and year period. XX.X%, these XXXX, revenue $XXX Based is on margin is to prior point non-GAAP XXX over operating for in that growth dollar assumptions, reach expected

in primarily very non-operating interest Moving of further a income, be our non-GAAP is down the income, comprised is to which amount P&L, expected nominal XXXX.

outstanding a are of projecting are from the we also million. GAAP of rate XX% year. non-GAAP rate we perspective, non-GAAP shares $XX.X a per earnings are $X.XX GAAP a Based on of weighted XX.X% share GAAP tax projecting of for assumptions, average and of and EPS We $X.XX. And these tax projecting

section the year today's across information and non-GAAP To our For GAAP guidance conclude, our share, earnings to earnings last full has Relations of within year recurring built of the additional website please for a details performance record financial per for Investor supplemental on a of terms potential for for foundation release masimo.com. our financial which has XXXX sets strong business and at XXXX refer We our revenue winning in and new portfolio terms stream XXXX delivered another ahead. years year the in future expanded beyond. our customers, entire strong foundation in and in –

As new and improving year products into role in important and can this outcomes play patient beyond, we the we markets of introduce reducing care. cost an

positive outlook entering for profitability. are a growth XXXX We and revenue with

in our back profit reflects we our steadfast I that, confidence as driving Our Joe. With double-digit will growth operating our call goals. commitment guidance delivering both turn for the remain long-range to for on profits revenue to financial and operating organic

Joe Kiani

shine There's XXXX to an for Micah. us related challenges you, to solutions with no provided pandemic. Thank that opportunity by contributing the to question multiple the

COVID XX trust to two from customers. This more years led including new to of diminish, from we progress serving ability year. record caregivers patient XXX,XXX of even sight. of total has to to start well difference. the the due a the the visits is the physicians, a in As increase customer XX,XXX a is million achieved to end our amount businesses in of that with we're system We hospital on feel Providence, now make pandemic positioned press build last all positive XX-plus a winning This the a bigger

return hospitals OX, are a in benefit We the beyond. procedures are observations and more in to field include products our Our the in NomoLine, These in about a normal that growth optimistic rebound of LiDCO. surgical conditions. rainbow, becoming variety because surgery solutions positioned reveal for and that SedLine, XXXX from used products include the should

Knowing major delivery with accurately provides oxygen in with optimize has and LiDCO Oximetry organ clinicians with breakthrough Our OX improve delivery to and valuable vital Masimo outcomes. and help evolving Oximetry rainbow with a with transfusions real-time combination levels hemoglobin output a Pulse from blood intraoperative ability of organs. company levels to in SET can measure to company assessing in oxygen launch means cardiac mission deployment the hospitals our fulfilling wearable a over for iSpOX any we superior monitoring leverage clinically in new into our a technologies technologies and home noninvasive setting, monitoring to of initiative decade implemented capabilities From have a that the breakthrough sites ago, can monitoring setting. noninvasive applications. for taking into of provide devices strategic

new and easy and the patients virtual of significant their Masimo capabilities can hardware that and visits hospital superior announcement with check Masimo doctor clinically care Masimo patient clinicians the telemonitoring drive video-based data. physiological having that patients of outcomes we by to where conduct SafetyNet in the appointments being and accurate virtual team with home is the in our view patients better to a provide capability, effective products these continuous technologies signs features obtain is download use. will optimal integrating deploy Complementing fast, as field, we the at-home and without to see able software is apps patient in telehealth Last easiest reliable to features that separately. products and useful the management. at measurements SafetyNet a secure or app professionals we SafetyNet smartphone suite emerging schedule include announced telemedicine significant interactions telemonitoring through can fruition allows additional We’ve superior new data Masimo is with We readily app areas hospitals can SafetyNet conferencing experience can well patient to the SafetyNet interpret way station it’s our audio and Masimo with home. true and and enable solution Our this a full to as now comprehensive coming differentiated Masimo critical. success care home to telehealth and Masimo between facilitates video that technologies to including patients provide for a to other with expansion With most telehealth developed as Data reliable to contribute easy Watch. this with and only while become telehealth week, send of connect for to from health premier solution. is their their multiway and when a with to available physiological recent to of doctors experts and experience strategy telehealth enabling vital spot it.

today Our respiration Radius which monitoring data. devices collect rate, the T from pulse Radius home, temperature saturation, PPG oxygen and and other can rate, sensors, include Tetherless

uses monitor, technology appreciably. our which second this released obtain debuted be The recently to is Watch. WX worldwide WX quarter telehealth the the saturation, Our Health at oxygen product the to respiration rate risk ERIC on we Masimo Conference and newest The that and suite on in wearable Masimo a the is offering is pulse expected in SET product rate year. versatile

premium ECG and for steps, A recognized with technology like in announced Today, software home. Marantz capturing company iconic In arrhythmias. well wireless platform, intent connecting detecting signals Audio universally addition, have added we platform as Polk and measuring we as Denon, a integrated capabilities Wilkins, our United. the networks to and & Sound falls Bowers and brands HEOS, an acquire and devices consumer

conditions. supply subject an United and to excellent team and experts to customary As highest expected The important, is has leaders, ability and of close Sound engineers, electronics. is manufacturing consumer transaction chain midyear closing near

aim aligns gaining telemedicine clinically opportunities WX. revenue strategy X% United adoption of and solutions, enabling We connected first reputation cross advancing well-established bringing monitoring long-range The across our both in United’s success the be the us to to Masimo Sound immediately Sound accretive hospital Watch strategy. technologies. advance vision to well and our the XX%. objective and home. into expect priorities, the leverage leveraged integrated We and presence this with of telehealth Masimo to acquisition Sound Masimo’s and our Their see on to home telemedicine of as bringing support hospital solutions with growth as as automation into home significant premium superior the our transaction and Masimo’s technology and technologies, and to The United target by by can accelerate technologies be connectivity cloud-based expertise with in will hospitals home-based serve augment we our well to go

Euronics United in immediate consumer Best and Buy with U.S. channels large, In us Europe. retail scale leading addition, in well-established the unlocks of Sound access establishments like to offering

MightySat launch T and products Our the wearable as consumer introduction new the We some portfolio Radius to expanding with technologies. into forthcoming market. and of as health build success of of Masimo such products more wellness we for is Sleep, on intend exciting technologies

and clinically that to better strategy develop our hospital for enable of and wellness home in clinical to driver succeed strategic and into XXXX home with and at today. in hospital positioned opportunities new for connectivity outside as technologies been technologies in superior markets signal now to these exceed hospital that for key integrated cases patient and success hospital that that closing, years, is underway increasing and using a go. and wellness. telemonitoring exciting go-to-market installed growing many expansion telehealth, Masimo consumer is the markets we beyond and decisions setting. Masimo our of and expertise in care. We’ve and on for represent innovations devices use steadily a bringing addressable traditional consumers the introducing automation we’re new new serve and wearables by solutions, team market announcement superior technology. to health delivering very on the addressable In size the The the large consumer for we into Our has far well products health of and have added and processing markets potential These broaden our differentiated focused and Masimo improving The the today. hope We proven highly a the is growth be base technologies connected the

addressable will outcomes the With for and We’re sites questions. for mission very should normalization care we’ll to our our looking and new our post-COVID use across noninvasive year open be reduce taking broader improve as This markets. and monitoring forward our of that, settings. one intensify, the to to committed Masimo we Operator? multiple interactions products customer patient call We productive a cost applications. a to expand remain and facilitate that of

Operator

[Operator Kiani. you Thank take from With Matt Taylor first our UBS. very afternoon question that, Instructions] Mr. much, we’ll with this

Matt Taylor

afternoon. Good taking question. the for Thanks

your home. for vision technology to Masimo you’ll with hospital technology and brands give love about acquisition. that how Masimo the the hear a how I’d could us of for to quickly integrate you could here some these your take sense about with more the So Maybe opportunity more into evolve of

Joe Kiani

of see But think of even discussing be I to going give what of going significant. we’re what we’re Sure. competitive I’m the I planning Thank think, you’ll you, fraction because you. a fraction to is reasons.

not brand with and do the even are and of First brand, part thing, of that only but and And file & the hopefully Bowers even incredible to to XXX-year forth, way products going XX-year replicate tell done marantz we’re Sound of kid, become better, are I help is engineering so that them a a distortion And in I’ve fantastic done all, been companies that a two want it a equipment the I and recorded with HEOS, was since But Wilkins a these fidelity. connectivity enthusiast is like job. without the though just remarkable company create got really a an companies and what incredible Japanese Denon to that best. Polk do of side. you, things can a English audio United we music, to the U.S. in have which first an the they’ve things like best

see relief products way they of launch the incredible also Kevin an the in channels XX and past team big by maybe as years, the and for We WX that develop see coming. we that opportunity are Duffy a and their led the other

We place potential the help will perspective. this going many years significant us team we WX maximize to have to technological from for for this that to are get And follow. resources believe other expanded a products and

be will and having hearing the we my people. accelerate of to the but United been I’m Secondly, broader in better And rapidly. older, now These on United, more the with with to there’s to as Air them are improving really that opportunity cool internally. we music Buds some and experiences an audience reach able serve. now many hearing Sound hearing communication and opportunity projects listening regarding a both worse, large maybe see we’ve we that do aids hopefully in new working States can But to many, another and getting things the as getting regulations is

Matt Taylor

this ask with financials any And about growth history longer-term? I us could rate, you I just could talk growth that gave you immediately give just follow-up maybe And on you high is how single-digit that here. you’re why guess, on the a confident accretive? longer-term in can the

Joe Kiani

– to Micah. going I’m

Micah Young

Yes. absolutely. Yes,

exceeded growth Matt, historical So in United digits and Sound grew that double rates. XXXX,

on as the forward, the into And more Going we once we well. of a an we’re really efforts that high the deal on closed into growth think single we about rate we’ll into hopefully, bring provide we’re forward, deal have XXXX that long-term more bigger outlook a them the next and what to bring going as close year update Investor we and we’ll expect to Day around in hospital the about home the way their doing talk markets and with doing and us what time to digits.

cloud-based there’s and we’re a with home even deal. our lot that with United. we we automation on do into things think also Sound with to we are clinically in as very what solutions go excited want So our do for premium And superior hospital go and just the this can as technology. we to technologies hospital the their advance the synergies connectivity I of valuable look and And

Matt Taylor

Micah. you, Thank

Operator

Thank you. We Rick with Wise to now go next Stifel.

Rick Wise

take going one this it’s I’m for you margins the or understand growth Look, just Masimo put think for Joe, home to I’m how several smart, is in wouldn’t to the how few about my – confident so all going to all not going and this contribute this in to transaction visionary I’m – thoughts to but what that years, technology Sound unfold not with the start. help I confident, years, Good about and you afternoon, But that a I’m couple and United analyst. can and highly to somebody this together? these start means exactly I’ve do everybody. see going outlook of Masimo of combine products translating – this just the how well. sales series deal know done how for to it had you you Maybe five I’m sure guess going is Masimo question not maybe I’m technology. confident XX me better kicking what that in years. we to products this consumer years it many we’re once I I in that truly had it’s a closed brand next very next quickly because not to time. mean, explain revenue to as going and ideas into Is or over have unless names, to

Joe Kiani

Thank you, Rick.

of you’re going of guys yours. to and one But know. our stretch going to all, mind I First stretch we’re smartest we’re the

revenues I can strategy health At you we they’ve going Day care consumer the out I care. the that been going health but in over anticipate. closing, think immediate we’re Analyst percolating we lines United is to that not just to product for working lay Sound this you been have like a intend of post several for tell strategy to has some the to and put What with years of the something requiring us decade. on help we’re

this. we’re I like with going look, really you tech excited too. mess we’re talkers that, share as tech our with we’re criticize to of want know head – the up I talkers. time. could by this. doers, I don’t I vision I to And imagine, can But about And the talking of So am you competitors And at our wish the always future not where about

it, why you us then and but XX it years. see take deliver don’t So won’t you’ll let

of can benefits You’re Micah and will going the complete. but you we’re from come the hope day, do folks see abreast to to out keep after Day, and best of And merger have meet Analyst planning you the some an guys things to of pretty see some some I we’re going quickly again, of together. United the to Sound is the

Rick Wise

that I get total I it. equally I await moment. – Okay.

I I’m supply of the outlook things. how be couple margin that and hearts to Micah, mundane that given more whatnot, us Help challenges, and in a have gross my doing And chip it? I challenged. guidance, with to the the of impressed might heart through shortages more guidance. that Turning say you might chain margin operating think gosh, are have feared

Micah Young

Rick. Yes, great question,

costs the pressure see supply more Just team team some they company through But those, from great a through will navigate done this said set before, back pandemic not facing We've mean, our still has pressure. gross forward. everybody our pricing looking great and our the a a were say we really to freight margins guidance of job job. we're through now, The And I a initially. have And come us those continued assuming future. I lot higher costs some the right magnified don't like mentioned as couple like We've some done numbers and of navigating in that we in had operations to year. probably we're that exist chain has that those past challenges. years during any on some of is

we're winning off the of outlook move a into and customers, strong quarter that going we've of outlook very terms and us new expectations going fourth coming really guidance fueled reconfirming the very about it's feel our and which forward. we And as record-breaking this why as we're thinking forward. another So in has kind incorporated ability forward, of we that for as confidence and move outlook, that's we good year to we're best our and

how navigate that do right to we're now. some look facing of continue that's going to company it waters is at right I everything to we So Rick. can choppy And now, those every

Rick Wise

more. one I one ask just one, And if could Great. last

Micah, think, positive, be I recovery about should be positive talked, post-COVID for Masimo. should You the

or positive. you check-is think dialed potential do what think do growth? understand in all great. so that in, field normal recovery line return impact And two, sounds normal Part the specifically, Thanks top more That us A, Your assumptions about how How terms we to how active? Help much. on guidance. about into of your we

Micah Young

in with know several you now. I now me years working me mean, by Rick, absolutely. Yes,

believe return how in through move a then volumes And of to thoughtful, I'm steady again in modeling the the we So throughout see confident that we year. prudent want kind out we next are pickup guide. very our to We about be few we'll as start months. we a guidance. And

to probably range XX% So were the fourth volumes suppressed. volumes XX% as still throughout Census quarter around move probably and still we still we believe down. are

So things are in we're like some start to feeling going guidance. we've up our and of to more, incorporated open that back

Rick Wise

much. very you Thank

Operator

Needham go Mike next, Thank Matson we'll Company. Mr. you. with And & to

Mike Matson

few roughly? looks a think. margin the for my on the are Thanks EBITDA what operating up maybe taking us Sound I just tell you and margin gross like margins guess Can XX%, I It question. Yes. United’s acquisitions. is

Joe Kiani

Yes, Mike.

you – the you if right. update look We'll but yes, on you're So more margin. the you're at it right EBITDA margin on profile,

dollars. look you if So our EBITDA

And million $XXX is revenue. So in EBITDA. around $XXX of million it's course, about of top line terms of

course, So based and the close. to But demonstrate, Its really our we'll to company. Investor XXXX calendar all as right. Day how the as around you're of we come what right delivered get combined math disclose XX% terms together is year. the closer for they estimates And more doing we on in of it’s closer get

Micah Young

the one bring will product out them of both revenues the the promise I what brings in the the And revenue acquisition with businesses. of to of

Mike Matson

it consumer mean, But that than least assume I the just lower Masimo, Okay. to the nature is mean, margin of given products. I the at is gross safe

Joe Kiani

Yes. Yes. Absolutely.

I think probably if capital little you company, it margin. and to closer, peers at sales maybe our would you the some even looked than the I went see of mean, out there slightly a lower –

look out but the peer the So companies there. probably are I'd say in at of some ballpark, you you're that

Mike Matson

with sense give And there any of is then us expecting Okay. you're way can deal. cost this any synergies you

Joe Kiani

Sorry, I didn't...

Micah Young

want that can expecting No, any cost keep we hope we We We entire entire the aren’t synergies. team. team.

no, that. not So

Mike Matson

perspective, to certainly all Okay. can then facilities manufacturing products. and about things and electronic talk your a from just there manufacturing since opportunities maybe like that, And finally, you purchasing any leverage

Joe Kiani

things well-run and a team, there manufacturing to as area, can three that's go add allow reach And will get. more add. can a we do there into more at well hope can we chain think is sites from we global things mature we have be will Yes, manufacturing us, really be will learn, few us their the people, best which I supply great you and or centers more the hopefully two for R&D thing as least know

Mike Matson

Okay. Got it.

Joe Kiani

you. Thank

Operator

Instructions] now [Operator go to we'll with And next, Sandler. Mr. Jason Piper next Bednar

Jason Bednar

try in here. seems that Sound may technology stack of will with in-house others things deal. just Thanks And maybe acquire to ground good with not United? transact ownership to How going ask maybe here versus questions. main out for Guys the in is able this help in connectivity license simply targets a consumer afternoon. with right on I technology Which am for you’re Thanks, United companies? to reference right the of asset part taking so like for is be there what and Sound the other deal bringing partnerships you, right technology Sound On company, from I here Masimo the made your technology a I the items there? my here lot approach, different joint out putting the few the your not United, me you, and your in you why form the that you big think

Joe Kiani

as Well, those many the brands. team. companies. doing are we most and look management Masimo brand the the quality which did durability the those at different that Two, the like distribution reasons. we what One, it's it’s technology United to the channel, for We is and of product an for several important Watch. is consumer Sound brands essential Three, us of

– company tomorrow. today a a product not going this that are So is here

we but That not management critical, great. So – based are team their call-back. on a

XX-minutes are they just here. So from XX-minutes,

for to strategy. line. partnership, So you really finish want ideal the the quick to company I on control them that an get short us to we And then tell would have made a

we We get on undivided two semiconductor, up the of that – and rainbow, looked things we mind needed. we developing in we has were to are and have imported we will And team. need go When needed get to that detectors LED exactly leaked for we we there the attention what there hard the companies the rainbow. this

now Semiconductor products best because a they were them able we of on to think acquired were we only fabricate we getting but Masimo because even called Spire we So much challenges, is of cost it our did, one have are for they set focus better lower at Semiconductor. what can the And our business, company not helped called, and much us.

totally were to we think, I open partnership. So

where company them, We we we is all under strategic area are we we companies, have many with this about having of as XXX bandwidth. in-house started felt OEM where one a reached partnerships

Jason Bednar

Okay.

be I that technology fair, could acquire. because brands lot good maybe So really up that guess point, there's following maybe of a out to you on consumer it there

I'm Masimo's integrating channel as some EBITDA with at with just decent as is what struggling bringing on the what's a value far this asset you're road? down unique – guess process? is So I guess technology that I overriding the pretty like, while in relationships the here, about acquiring

Joe Kiani

Yeah, a I us management the will more. people, obvious we that into There's can't technologies lot given – there's a together, that not envision I they get the with right that I how the the I mean, company more again, think stuff but but think channel for is and will of to could team now, better have they that acquire future. we so have, I for think do

Jason Bednar

some can to there Okay. hop then, for EBITDA And XX you the about demand are when me you guess, pandemic? get some queue. of growth revenue maybe or how do kind was with there or I'll during potentially by into we any Just the business see over demand months that kind respect just kind being this concern, of where maybe that and way? not looking last referenced is move one post-COVID the beyond you see of talk of I more it and that we you this bolstered back what

Joe Kiani

about or United talking Masimo? Sound the You're

Jason Bednar

Sorry.

with Just Sound United.

Joe Kiani

new we the Well that assume that's COVID bump, it. to you it really we the you to new of management team, going to is But to only way there speak have way the comfortable because gone some into some seem and be still some down. felt if the they've slowing of went I with introducing. be into, it's And Yeah. the that products but of doesn't it think not a they're products

that growth, high-single on and going end, own assuming them more a however, not this down long-term acquire little after conservative being digit, right even COVID. to bullish they're maybe but slow their is we we're So

Jason Bednar

helpful. Thanks All Okay. Very gentlemen. right.

Joe Kiani

Thank Thank ourselves we if frustrating, wanting keep it's to the market. do. products can more goal to share until thinking all look, end you. a we're some you know to it's, with likely could the things little so much. the are wish And I accomplish I we to and but I come you of that

Operator

And Bedford we'll you. to Thank Jayson Raymond now James. with next go

Jayson Bedford

good questions. Hi, thanks taking for afternoon the

but I Masimo the Is where couple see United into Sound question, it cross-sell the do hope a Just into product bigger you isn't a here. products And here? hospital naive opportunities the or home? this

Joe Kiani

the future that to be think consumer for Now and they're we I Masimo that our be home. Sound technologies. health care. products beneficial we're to immediately, for move see going some come hospitals We to push creating forward to But United going opportunity into from of integration

Jayson Bedford

the you I before before just needs that sell is there regulatory happen that, what think offering, happen And needs product? talk on you WX launch, what Okay. requirement. to said use XQ, you then you the launch, to And channels to that about a

Joe Kiani

and is market we do through the process premarket the and when we we a have done, full we release, release then to limited the even that perfect release, do ensure go the product. that call we by we Well, called market but a market hopefully, release time think full the product a

So a we're premarket right now mode. release in

you it [indiscernible]. we debuted saw, as As

depends timing far it the the you it to as stage premarket stage releases, it or smoothly customers the actual mentioned have goes. using how in that are market as about use of full – think release market and release limited the of We the and Middle when I kind East

couple submit your several thing in not as And months. product but because then question, this of just for done far a be without regulatory – many as health we regulatory clearance by people we as a plan will can to the believe they've in weeks as we product. they're to wellness used Sometimes, done clearance this FDA sometimes market

version So consumer of version. it, versions we the do we might have like today, Rx the and two

Jayson Bedford

can And deal by you from last standpoint involved maybe just, Medtech Joe, maybe that you highlight in looks Sound then one of see? Okay. a some risks That's United valuation the just this obviously helpful. it attractive standards. But

Joe Kiani

yes. Yes,

to one Of looks that. wrong company course, we about instead can to we're Sound better market where mirage everything But We're being launched some hospitals I tell of narrative. a this of more a a of to keep risk team if make home. United this seeing if for iSpOX, want we ago like people a the us regardless hope so going take COVID helped we The And feel the vision do could to the We professional as for think cement I the risks decade we and with that that narrative. about involved. will thing it it be a don't it you, key mirage, where a caregivers. lose we involved management told we new keep. you

or to home second becomes it company base, So customers. a a going a it's current us to be whether help better our run

Jayson Bedford

you. Thank Okay.

Joe Kiani

Thank you.

Operator

you the closing And gentlemen, Mr. questions things turn to comments. we afternoon. it is all that for I'll for this have appears back any Kiani,

Joe Kiani

joining smaller be then, looking Well, But everyone closing is been with time first roughly a I buy But wonderful want all one to post for. can thank opportunities to Masimo able where is we've tuck-ins done forward post we've today. is line, acquisition for to Day, And exciting of possibilities it have them this bottom us. some which share By for the successful. of an been I'm yourself. hoping seven for this maybe the that every major we've we this the also And you our us watch yourself. with hopefully, Analyst you'll more. play done

of a you have see and So you. wonderful and Thank day evening we'll your rest shortly.

Operator

Quarter great today's you Goodbye. Thank Mr. Fourth you, wish and like Fiscal Again, Masimo's Year all Kiani. Earnings gentlemen, Conference and a ladies we'd conclude XXXX Again, that will Call. afternoon. to

Masimo (MASI) 16 Feb 222021 Q4 Earnings call transcript