Earnings call transcript Q1 2023

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Operator

Good afternoon, ladies and gentlemen, and welcome to Masimo's First Quarter 2023 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.

I am pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

Eli Kammerman

everyone. hello and you, Thank

Joining me Executive Young. Joe and and are President and Chairman Vice Micah CEO, Chief Kiani; today Financial Officer,

This expectations statements, including call financial forward-looking management's will judgment current performance. which certain fiscal regarding reflect our year XXXX of contain

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

these will of You Investor our website. in find the Relations section

Also this to in refer certain are or call accordance will measures calculated generally of We these include as principles a not accounting GAAP. financial discussion non-GAAP with financial accepted generally that measures.

financial information operating provide intended non-GAAP In way measures the are to investors company's the addition assesses additional to results assess in management to same to results results. enable GAAP such these

and basis these the company's business non-GAAP uses budget, the believes that the performance non-GAAP financial noted to be measures of financial primarily of indicator performance today measure an these measures Therefore, a be the sees the evaluate and company's The financial on non-GAAP as underlying transparency company better we will to measures reflect otherwise. will performance. Management ongoing also increase business. covering unless

forma once will business will of we April date referring acquisition measures, we In for referencing which presentation our prior be pro today as also the to Sound segment. to financial XX, Further be include United non-healthcare historical results again our this XXXX.

should with most order SEC release on to reports in financial investment the measures together our directly GAAP are measures XX-K XX-Q included our consider and recent the the filed statements of financial earnings and our most today supplementary these informed our of all make with information decisions. including Form to website. Investors Reconciliation within comparable

content have within of we the website to today quarterly Investor earnings the to posted issued supplement our this covering we addition afternoon. In section Relations the a will release be earnings presentation

pass I'll to Joe now Kiani. call the

Joe Kiani

for you, earnings started joining development Thank and you. you XXXX our Masimo's coming and and the year. for pipeline new thank are solid excited We this many us Thank year of with research out performance first Eli. quarter Good the about products afternoon call.

on Our of drive consumer of business, And health professional focus consumer life-improving and life. and innovation consistent in our scale now to our Masimo all infrastructure to healthcare consumer growth by continues reach blocks and the our from healthcare, people is supported going innovation health markets.

million delivered of for Our of consolidated $XXX We consumer reached revenues million. revenues and $XXX revenues the $XXX healthcare first million. quarter

pulse quarter. parameter our traction in customers rainbow healthcare advanced for New oximetry revenues our strengthened this increasing business and products and

this In in to our hospitals the was fact first of for new Masimo. quarter history best conversions

we SedLine reception our addition capnography our monitoring and XX% revenue led hearables our recently monitoring, now OX of AV growth In which over consumer healthcare for become the solid for blood brain in with gas of products. and business the monitoring and growth to has rainbow some performance constituent along strong had launched market normal products. line Robust

of post-COVID, health. launch products struggling series new of physiological unique track. a capabilities automation on business our companies innovative consumer-facing we're consumer revolutionize our to leveraging signal technology many Despite combination remains to and audio consumer and Meanwhile, monitoring processing

other as expect success. On this we that for of that baby STORK point, I'll and the of later recent monitor some in contribute new to our well on launch planned as the products update halo, our you call, the will opioid long-term year,

Micah first XXXX to review to in guidance. detail provide With our pass quarter that, and results financial more our an update it I'll on

Micah Young

Thank you, Joe, and good afternoon everyone.

$X.XX. earnings share $XXX million of of revenue per non-GAAP consolidated achieved we quarter, first the For and

produced last a affected the quarter was were segment, quarter adversely XXXX growth of by Recall, growth. challenges subsequently that currency in in which and our that representing $XXX healthcare million, revenues second shortfall quarter that our recovered period year. constant X%, were For first of first revenues supply resulting XX% only chain

year. XX,XXX first over grown we installed over end drivers this ship shipped of the X% the on by base quarter in quarter the XXXX. We our At quarter, our the first track estimated of and that we the installed at base drivers end XXX,XXX of are has over to

As capnography revenue strong constituent our SedLine was and driven brain Nomoline Joe gas healthcare from mentioned, our and monitoring by monitoring blood monitoring, growth performance OX and products. rainbow

expected our of were currency backordered faced revenues quarter guidance $XXX the constant of business forma our right segment, drove in currency that products in a a comparison line XX% prior non-healthcare This before constant the this acquisition For tough an year-over-year to due as growth, with on X% decline million, year first and quarter representing basis. pro fulfillment was closed. the

headphones prior key in Wilkins growth. including period, remain category and doubled first Hearables versus the year sells Hearable earbuds driven quarter franchise. than for a the by the & more headphone Bowers primarily

we're growth bring differentiated of this category, launch earbuds elevate we strong the we Denon truly AAT expect the with to Pearl, this the to audio year our consumer hearables later pleased in as we're business, seeing technology further While our brands.

down Now, P&L. the moving further

gross for course we first non-GAAP with the of our our gross rise our we as the non-healthcare XX%. XXXX, XXXX, expect realized For continues of supply margin XX% steadily margins our over business gross This consolidated margin to to healthcare of and chain guidance, business. for of see includes quarter XX% Consistent stabilize.

our of which year-over-year over associated which prior business, with solid the debt operating against currency increased million, the to consolidated expense related period and to included per trade litigation costs was interest the year $X.XX elevated the acquisition non-GAAP incurred And for the result share buyback. secret $XX non-GAAP our were trial $XX our an For increase despite a profit and misappropriation headwinds share, earnings Apple. in X% million diluted

saw of quarter business share we impressive guidance segment, our at our this gains realized the year, out in healthcare lives hospital. rolling In the despite our a help results new the from portfolio. products that our exciting difficult To us growth products summarize, improve have or across will growth delivered long-term steady end drive in high we our year-over-year home non-healthcare strategy, an hearables comparison. first And advance whether lineup as we again of market the and in

like update Now, an financial on to XXXX our provide guidance. I'd

the For revenue guidance EPS ranges XXXX, for previous we to non-GAAP our maintaining $X.XX. $X.XXX full of billion, to million consolidated are to profit $XXX billion of million year operating and $X.XXX of $X.XX non-GAAP $XXX

and are impact promotional making. are Masimo points a investment last discussed maximize approach our of of to product XXX leveraging we capabilities we our and basis consumers' launches channels As we the to taking incremental quarter, the disciplined

of billion, representing constant X% to our $X.XXX previous to guidance currency $X.XXX billion growth. For our XX% healthcare segment, we are maintaining revenue

outlook growth For a guidance basis. solid presentation year. are representing support on investments growth pro currency while $XXX million business, in reference XXXX and launch constant range new our non-healthcare our the earnings to to reflects forma maintaining investor we conclusion, the our segment, million, to the incorporating products our for In X% $XXX for X% further this details. Please previous on website of prudent will we

With to that back I'll turn the Joe. call

Joe Kiani

the deaths opioids with in unexpected opioid-related are listed FDA report respiratory death at are for Thank opioid complying who that even high patients you, U.S. problem Micah. are depression the revolutionary from I'm of Masimo for a delighted taking dosages The in a Halo, opioid-induced home. we approval opioids an received de recommended in at people all-time detection and product to nova significant

overdose. terrible due people alarm respiratory that depressed to the by to opioid We of from then a loved role provides vulnerable function warning up XX,XXX in early alerting an opioid-induced woken of result not should patients Halo nearest with when an is And died alarm fate. play to if reducing being and patients ambulance. The location respiratory in their Over intend saved in depression sent these functionality active opioid an and deaths ones occurs.

we treatment X, May marketing On Halo drugstores opioid and to began centers. addiction

opioid to going is to from depression. sure, it as believe are make used people if of best could do save respiratory Halo we We opioid-induced there our awareness

prescription With become of stores display brands that to to we that the status, safety of large has and over-the-counter and promote areas Halo, opioid clearance over-the-counter within transition opioid awareness are part retailers expect their which and naloxone initiative. creating

had consumers selling which one May retailers, prominent STORK in configuration very a X, as currently the STORK we channel retail Vegas. online Expo important customers, XXXX and as on announce major stores. launched will to next strong carry expect display baby the We're of presence STORK it large different months. STORK and Masimo from over including the in location We for very masimostork.com well website registries Las give On of largest at Kids interest six

half The marketing accelerate STORK efforts in for both the job is adoption at These of and retail team doing year. of excellent traditional should product gaining second an channels. online attention this in the Masimo of consumer

and integrated replicate we creating is STORK can one our for marketing of we products. product our our rapidly template and health launches consumer as will from first brand how rollout framework, leverage and refine teams health consumer launch STORK which more the great As a learn global

instrumental be launch We for received unique will unheard. spectrum technology sales also to earbuds us from world-class that leverage acoustics in rapid architecture gives no to goes platform very the next-generation Pro each we on interest detail a adaptive ear our customizing The Denon personalized have listening based as heritage each will that strong sound and sensitivities profiles Denon's hearables for already first and creates platform. our marketed acoustic AAT Pearl sound These and soon ensure user, a of tearing ramp. or retailers Pearl confidence person's

Shifting to wearables.

U.K. gaining is with Berlin Hospital have Health Cambridge Center telehealth traction expanded the watch and University their as in programs in German Masimo WX. WX Our Charité

system Freedom in have on Tennis second March Watch in with but the the Freedom e-commerce Tournament BNP Paribas Android half of is not operating showed sale We year. Masimo presales Last begun slated our least and for at site. the

points season. be a together synergy In will wearables, distinct at needs hopefully, the to holiday stores retail for can prior marketing round our of in addresses which portfolio addition, consumer various of range and out price Christmas band Freedom health sleep displayed

remote We continue us make our and secure wearables the medical HEOS into to ecosystem data also products allowing data progress, our connects devices our Cloud. and monitoring feed wearables, from services to home-based Health that to building

lives, and support our of We that, But making devices first We we to grew home. can't dedication of in grow intend and do approximately and people's HEOS the number shareholders. XXX,XXX by team hospitals by and the quarter. the real of commitment, our connected without a difference in Masimo

be time been success. we all We company's since For The have outcome of will incredibly first to guiding XXXX, proxy which a to our principles, mission, we shareholders will important book. Masimo our our public and in took be the engaged for contest. strategy consequential encourage in

With call Operator? that, questions. the to we'll open

Operator

comes BTIG. with [Operator first Marie from Thibault Instructions] question Our

Your is line open.

Marie Thibault

on Hi. congrats strong taking the and Thank to start a you question for so year. very the much

Joe Kiani

Thank you, Marie

Marie Thibault

business. start with I here question basic to about healthcare a wanted just the

been had and contract encouraging there that mentioned, you quarter some pricing last think I renewals. trends

Just can other if I of trends of wanted to you some I strength what in there the that the drove also sustainable mentioned that parameters, are you some saw hear you wonder healthcare. to? point know but

Joe Kiani

Well, customers. our new converting Masimo I sustain this, QX biggest but don't was know if SET hospitals quarter to in Oximetry ever Pulse we'll

was that it twice do. think rate I the normally we

So, rainbow PVi is getting stabilized. has we're one that's the businesses. very and and OX Pricing that of the US Cost encouraged about noninvasive goods, things hemoglobin, And the has that stabilized. other outside is, our encouraging. capnography SedLine of traction

year, level best So estimate level. XXXX X% XXXX have, the best I see level, the thing we back positive. where and from the hasn't we're From XXXX really normally The to that we but best census returned see, X%. has guess it to is all It's each finally growth only really, by we can grown. the census that -- at

years, hope So lot we well, of people, it bodes eventually regularly in that and through past with had huge of all the things. last the a be think that deaths all affected in this we've will ahead of life, COVID-related go begin. their of would overall quarter that use elderly norm will years we the will hospitals conversions, and And new all couple

that So, I helps. hope

Marie Thibault

on much I FDA heading naloxone about here like go-to-market direction. wanted to you OTC opioid timing ask through Yes, Congrats, with on as it sort It Thank sounds think the the it's my right wanted with in does. strategy. your follow-up getting Halo. to great the that well. of understand, and I going then very you. how

is a the stores You Is in of at as point? naloxone some some over-the-counter most to there mentioned which drugstore. people out reimbursement more try Halo that I recall to of think drug effort. I offering the of get than part pocket $XXX, plot will spend

So curious business longer term the then. about model, here

Joe Kiani

And over-the-counter, are do doing Yes. that reimbursement, out drug Longer In but in approach opioids, received them stores send greater out might to do want a potentially opioid the companies, of to of offices that term, are meantime, aware make to their we money people kind home a we that it. for have surgeries, reaching the to sales from hope and few people to the the already. from use with that money physician that opioids addicted settlement good multipronged states we're years. to take that get to offices of reaching

of have adoption with reimbursement strong that I until sales. do we So hopefully, get should all think of we

Marie Thibault

All sense, makes so right. all Thank That much. Joe. you

Joe Kiani

Thank you.

Operator

Our next with Matt Taylor comes Jefferies. question from

Your line is open.

Matt Taylor

Hey, thanks here. good a the on to question year taking for and congrats the start

guess I current open was saw the Obviously, ask we state of bit a mistrial. to little So about litigation. I

with have happens the there? the you just us you And hoping us maybe in trials what's here was and the ITC coming about I So could update up what remind think future? other you on ultimately

Joe Kiani

five picture secret two, filed Apple. lawsuit PTAB and Sure. County, supposed we have litigations a patent split Orange off It and appellate and Sure. here trade case we secret which decisions. started into resume ruling patent post a with the trade separate as court to Big case got in with

importation and ITC infringement, Delaware Delaware stop we the and we Trade to and patents. infringe Then manufactured patent the products case Apple sued in that countersued International foreign with in infringement competition. antitrust of Then the us filed patent unfair for for Commission

first the two with So things.

get it, Right stage the to with decision. won assuming of and time for frame see pulse of September the the middle stop exclusion course, waiting you doesn't Of that. it's now could Biden case the know The July we And commission we to President we a We're commission Apple delayed ITC expect favorable first ruling. rule. the in oximetry the of Watch

came came a watch. feature important oximetry, how They the so pulse – to a – pulse on in three On evidence four that case, incredibly most strong oximetry. would the started be know had the in project make process. do secret Rover we not realized showed The They -week pulse decided was – the quickly of Apple in the all in called evidence trade the Orange decided quite to oximetry. It just XXXX at County. sensing do companies with world look watch that they did health they that to to a

trusted both VP run decided Masimo by with oximeter with pulse Lamego. the they me Quickly and and my Marcellus two standout companies technical

some acquire Tim technology would And over they to but their shut Masimo take Masimo. be just So of They healthcare recruit were they acquisition to they a recommended, not thought because of while I my people great team Cook business. also because our could down. and our

still Tim we they do Cook jury. the doing like people. in front development this. then at us joint maybe Cook And all a came Tim of don't this with said, our acquisitions said, while recruiting in looked

the were and give maybe will know guys to Which and of confidant Cor, there Marcela my We joint Lamego Although identified finally development, a it. responded had But you yes they at when karma. I at a "You CTO this. development role." them with they doing warning were high-level doing had to BD you stuff said around me technical is it if as they not kept this looks Right us. that time that the time good at be looking shouldn't Circle what all that like front join business their bring stopped you executive Apple

help and had to watch each to ox people pulse get The layer they in the is have really secrets him to the of also go they of and to they got good did. evidence their which [indiscernible], a back each They market million fell they both COVID They is our two They evidence attract of measurements decided to of project ox of gain share And work. wasn't in FDA Apple. now by XXXX get our Marcella on instead came two go that it who engineers them which took thing and O'Reilly worst enough some about clearance. day goal Steve and had see chaos layer started their our because of XXX XX% SpOX that that now it, knowing people. one between lower to directors that. the they XXXX they additional would on confidential it. engineers see they also unfortunately XX% hired CMO, Michael They have apparently just trade pulse at from XX and XX launched it Their to Probably Apple they the launched lower. to watch got thought reporting And our the But CTO. doesn't people to called the time way to and one XXXX, jury Fitbit, day. short the got measurements

a They think before all trade was how jury. to the secret jury several our that going the our had on of we with wait with they I we're appeal delivery. us took to we case went believing go all have that but of front business way trade which in away that. to So took stuff of the to Right was judge disagreed The for saw secrets. jury going

we been of all it despite jury unfortunately wasn't X:X. details into though did but isn't that. more hung was like It the as I on But that, reported it's get can't there up. hit But that that. unfortunately

to don't So point do-over. at I in another We're do-overs. get this going many guess life get you

we we'll be good different the assumed will case. came And retrying would very we everyone they how results. how given expect time go get this case So and hopefully next

Matt Taylor

answer. great timing for back that coming thoughts of around? Thanks that the on Any

Joe Masimo

three to months We could It's judge. We the know. another know. don't don't to two No. up year. It be to

Matt Taylor

very Okay. that much answer. for Cool. Thanks

Joe Masimo

you. Thank

Operator

with question Research. next Wolfe Polark Our from comes Michael

open. is line Your

Michael Polark

a on year questions/ the see guidance you the I for Good afternoon. affirmation face. Thank for taking question. Hi. Maybe the

deck As standout. modest within guidance I of look That's see input. the through affirmation to reduction other here? gross and any twists the I be the guess I consumer turns a Mike mindful should the for margin we

Micah Young

No.

So that -- first on EPS consumer through the flow just business. reflects if you change But didn't Michael impacted guidance saw we the bottom-line, the in only profit. the the look the That held buys and thing full kind quarters, operating on gross but lingering business look for three some of that top-line, have on course that margin. where the And really year we we did lower let last at of we slightly for spot outlook the year. quarter

And expenses very managing job to we also --we a of did quarter that. good offset the in first

year So that you'll in expenses softer trends first stabilization with of good QX throughout seeing chain. We of see rest us. that a expect the gross bit little improvement operating we're guidance. seeing supply exiting signal the . point. in are but -- low quarter for rise margins the gross being on But we're we're this also the Michael a a reflected overall The still margins year seeing lowering for steady the

Michael Polark

follow question. up of getting given the kind of modeling comps last guess modeling? XQ. caught guidance both question but all supply XQ understanding unusual can in year-on-year snafu kind any chain to also I for of healthcare segments up XQ want or in all in feel another year XQ then I Specifically, and the sure If make we're

of about much/ kind revenue how sequentially just Thank so you Micah progression? So you do think

Micah Young

question. Great absolutely. Yes

lot supply year the side of year So of disruption is half if the year is some there's -- backorders. chain of consumer a first those last first there quarters from in or the fulfillment about your to improvements you the point on think

in business in you'll think mentioned more see the in But in you seasonality I'd comps. way the QX our the year Traditionally, the it on in based XX%. our then about prepared second normal X%, grew back step So my QX. healthcare and quarters remarks non-healthcare to grew start QX both QX progression healthcare QX and last see and I business as heaviest half

comp that in side. aware QX the on be healthcare comp XX% the just growth So of

of year the fulfillment the QX trend comps just We of last backorders. XX% is because for growth then and XX% saw line which QX, in business also those non-healthcare of growth in above

you'll the half half those comps see we're and QX comps this tough So, that still out I in year. comps think the tough normalize up and back of up some against but then should against in first ease

Operator

Bednar Our question with Sandler. Piper from next comes Jason

line is Your open.

Jason Bednar

Joe know to maybe some maybe we about products afternoon. immediate-term wanted the an lot or for is guys. a WX. these on new year think of start get Micah, a I as new Halo these funding products, Hi, But economics a Good about the of And be talk this of I we XXXX, with can on to what the really off to WX this and year ground. STORK or products us the help profitable? perspective, thinking thinking how business be those a in about from STORK get of breakeven a for volumes need Halo timing you're reach to breakeven? multiyear or offerings with hardware that should margins to maybe more is order about or part process we then in building

Joe Kiani

not high the Micah, we launched seeing the margin here expect manufacturing, despite we in good to We're Irvine, WXs to expect anything -- all day on that? add level limitation right we of the want those. from business margin do be Well, them. to you we profitable

Micah Young

I supportive those margins of the products our -- mean gross the on company. think margins should margins No, expect, I for point, Joe's or should be overall would to Jason, be Yes. we gross those

those wouldn't don't Joe's to So we to be they dilutive. -- point, expect

could fact even as In we steady around see we -- those over drive revenues some to see corporate well can if the improvement time, subscription-type start products some above of average.

some but we are -- investments. So making

want see mentioned I the going grow make we'll to to continue about business. results of investments right XXX And be points and to and about prudent invest promotional good going to thoughtful we and this very forward that think I year. remarks as investments prepared we're we in that basis my

Jason Bednar

they're this year, we profitable think is bucketing -- thinking -- don't think which $XX talking year of but this we're I in these how put to we're your we're you're products about mouth than say that and in differently guess terms one, saying more what I Okay. I in sorry, revenue about about from maybe ahead. as that million want words go like to Micah, profitability, just, don't in but

Micah Young

not -- that's don't No, saying. think what that's we're I

I Joe gross our margins. to would referring is is it be supportive think what that, of

breakeven. basis investment have making about to year we're of of we terms XXX plays high mean we're points expectations I see for In this how but to and going that have out, these next products, especially we meaningful drive hopefully, leverage going could think in next revenues within so. into some business. we'll year we the profitability year or that see turn that some And

Joe Kiani

Yes.

I think also you we've advertisements lift we it's it and even since every practically our that, And areas. product, for important other to boats before in year certain launched note product. it advertise done does done all we've when a

our For grow. during we were Masimo COVID well, products the while product. it advertising actually example, COVID, said, COVID And helped

think I are of with any losing this. think I yes, -- at we don't looking So money

Jason Bednar

I think entirely Okay. shifting to I'm just hard sounds problem. these that's marketing I you're I out follow-up to not -- uptake this you're entirely are the into and or a trying spending or -- issue one that here. around the but a it the that But like then think and different be is expected to all right an gauge No, fair categories now new sensitivity enough. right maybe mean is why now to selling thing new tell that's channels really tease which

Joe Kiani

there XXX Remember that were at these why me bought United Sound that's maybe a out XXX bad we not Well to products. There's were confusion Sound Jason, when United. we thing to let it you're that's salespeople new maybe helping going be there. actually acquired that them just raising the

hiring that's these we -- bought a new Masimo We're So the support for to category while combined it we're is why people for United. launches. Sound not entity,

Jason Bednar

more here. you you turn But practices just or offline out that some of you're main aggressive? I'm just Just with a have more for a tactics -- its or up off? asking seeing and handle your speak I'll any behavior there Yes, not any wondering monitoring is and be may some with being guess Understood. group, spun business there, in to I in changes a -- that or to patient evaluate peer, competitor following with for from alternatives -- ill them perspective competitive shift distraction there there asset being seen sale potentially but up if

Joe Kiani

the underestimate it everything. about healthcare hope to your down. consumer side. the They they can't slow Well, us side, say on helps I But never when to they competitors. think tried I that

Jason Bednar

Okay. Thanks.

Operator

RJ. Your next Bedford with from comes Jayson question

Your line open. is

Jayson Bedford

afternoon. Good

Just here of a where STORK? And the of just questions. WX without just the guess and through couple you FDA from launch clearance? stand both pipeline decision on STORK with I do walk clearance to the timing then

Joe Kiani

going to We But things. don't delighted on want to hope monitor. don't the got and guess and as is STORK know launch rest Halo we to cleared the approve when because they're we it's We're we that opioid clear decision will well. baby a

making those that. If significant business a you notice make to out claims. we And like without things needing are there or not making alarm or monitoring there's claims

these But and I will sales soon So, should that the without get the claims. the high it those that we as the FDA of seeing of products help clearance as we decided retailers to making announce begin that were of talking well. we're given we course to as think we interest

Jayson Bedford

Okay.

a or sunk, the or these out of incremental an are Is the on on here related topic you spend cost different Apple off way to topic. Just standpoint from parse And any would costs expect round similar suite most expense to there then two? in a the retrial XQ? just

Joe Kiani

motions. hell new the the We're out exercising to with are our we court just of people defending IP, not new but to

was this of filed think trial I we're what up that Apple used trade motions to. to number secret the leading about we're three times

stuff. Apple been really that, know. that because don't related is that's not I say comfortable with to normal. our Micah asking we can it really with you that So, it's non-GAAP extra I've get comfortable he funny our But auditors Whether stuff gets this or not standard

Jayson Bedford

there quantify any Is it? way to

Joe Kiani

case the we the course case, case, have. there's but just million Journal And Apple trade Wall it's go. Street patent I the spent and not up of mentioned In a I on article, ITC litigation. think to now the I more lot think secret we it's a $XX until

five there's We've of two said on I just begun As them. cases.

going I So, these to on -- $XXX unfortunately my spend million we're over think litigations.

Micah Young

And cases. Jayson clarify that's the -- since inception of to just over the

over about years. multiple years, it's three So,

Jayson Bedford

you. thank right. All

Operator

Our Mike from Matson & next question comes with Company. Needham

Mike Matson

thanks. Yes, few watch. just on I had the Freedom a

So as the matter. $X,XXX checked like seems bands out products the and competing I looks website. to high that it's It there. a out for It on tag compared -- price pretty guess well got I the it. But

-- was -- said there a interest on and to you get wanted assume the what's seen in a been level would Have subscription lot -- since require store. I from bands your Just it interest take as the you of Freedom? then especially the and And what that retailers well.

Joe Kiani

The -- is Freedom then probably to is most next $XXXX. expensive the points price have we expensive three wearables. at the a around be And Yes. WX about product $XXX. $XXX. The about it at will most The comes Freedom when band

we'll believe. does have I the something So that everyone, same exact biosensing for biosensing

then what those want? features pay just willing it's for So a are matter to of do they And features? they

which about get really excited the privacy seen nobody has. else I've switch, people

a way want measurement serious before have we're that's that illnesses need have chronic we'll see. customers that's serious that our as a and they people monitor said it to in But unobtrusive. So and I've that targeting are

how are time cost US, China. it And we the doing where were know of manufacture see greater we'll these in makes than if we in go. we will goes. as the goods But you So them tell to trying products which

of officer, for our things. due Fortunately projected lot to these revenue haven't a we conservative financial

see. we'll So

Mike Matson

are But with and just seeing WX point. yeah. that healthcare setting, then any Yeah, in traction Fair signs and you of product channel? -- there the

Joe Kiani

clearance. for really sales that In US have didn't want know the not still is think we being more into to first We outside is lot and putting channel, want we're FDA had mind. our a more beautiful US. consumer marketed them as design has waiting the is consumers We a because features. now begun that much hospital the right force the WX we WX Well, watch to the by in Freedom Masimo

the have on giving they to we if ability business that to the their channel. we're want now consumer So our selling presales begin team, begun WX Freedom

half the happening second start may year. that So the towards of

Mike Matson

in on more one the get just can quarter. I if And Okay.

was get at -- of has specific you quarter? question for I the with know $XXX that? looking that it you the a consensus are I I analysts have want earlier EPS. to Do more correctly comfortable on street So it's revenue there an modeled the $X.XX guys second I'm million guess think Is but

Micah Young

Yeah.

I where it non-healthcare healthcare a against -- when the they I I a numbers before comp was the the look last seasonality comps down comp a on think at growth there year. right traditionally businesses now, Mike up both of last looks QX consideration year for and if QX. And up like in from as the in rate QX year you last mentioned in is XX% XX% is against stepped

at that well still on headwinds see we what currency. heavy that the turn the think QX. into got more back of we So believe in to half a consider similar as to I saw starts in tailwind to will look you've then course currency year-over-year pretty I -- of And it

through thinking you're that as that make well. So sure

Joe Kiani

guidance. Yes. But year full we the reiterated

the the you while be out guys good year. feel put exactly might have about we there So the whole really quarters not way

Mike Matson

Yes.

Joe Kiani

joining Micah last time going spending talking We Eli. Look for and our you question. forward to to you lot I and be was quarter. that guys thank today next a you us are of with know think I to

Operator

concludes This today's call.

disconnect. now may You

Masimo (MASI) 9 May 232023 Q1 Earnings call transcript