Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| You can take what we've got now, which is, I believe, a very strong share of the US market and in the 140 countries we're in competition, but it's a good place for us to be |
| We see a long runway for growth with our MEDIFOX DAN team and across our global software as a service business |
| And those tailwinds are really going to be around improved product mix, manufacturing improvements and efficiencies that we think we can drive |
| We also achieved high single digit global growth in devices even as that category annualizes very high growth in the prior year period |
| They're back in many countries, in Europe, Asia and rest of world, and meeting and beating them head-to-head, I think, proves out the thesis that ResMed has the best-in-class products, but services and solutions, not just the hardware but the software and the capability we've been investing in that for a long period of time |
| We have unconstrained supply of our AirSense platforms enabled by excellent volumes of the AirSense 10 platform globally and fast ramping approvals, launches and delivery of the best-in-class AirSense 11 platform country by country |
| We see more and more people coming into the healthcare system every quarter and we'll benefit and help them sleep better, breathe better and live better lives in 140 countries |
| We are very proud to be able to support all global demand for flow generators through a combination of AirSense 10 and AirSense 11 platforms |
| The opportunity in front of us is huge and largely untapped and it's an incredible runway |
| Our commercial teams are doing an amazing job of showing the clinical and economic benefits of the ResMed mask portfolio |
| The peer reviewed and published clinical evidence showing that adoption of a resupply program leads to better patient outcomes is proving itself out in the real world customer by customer |
| We continue to see strong growth in the US mask business where provider resupply programs can scale, powered by our digital health ecosystem, including AirView for physicians and providers and myAir for patients |
| ResMed is well positioned for ongoing future success and accelerated profitable growth |
| So great question, Matthew, but we're very confident we can achieve that as we go through fiscal year '24, '25 and beyond in our SaaS business |
| And I see that moving closer and closer to the ResMed group and even being a strong contributor, an even stronger contributor for us as we look to maximize our long term EPS and return on invested capital across our group |
| Software as a service revenue increased by 32% in the September quarter, reflecting the contribution from our MEDIFOX DAN acquisition and continued strong performance from our HME vertical |
| I feel more strongly than ever that we are well positioned with an incredibly long runway of profitable growth and value creation for all of our stakeholders as we move forward |
| Sequential gross margin improved by 20 basis points, driven primarily by favorable product mix |
| We believe that healthcare should be delivered in the lowest cost, lowest acuity and highest comfort location possible |
| I'm very excited about the opportunities in front of us |
| But in addition to that, there's a great product pipeline at both Brightree and MatrixCare that I feel confident and some portfolio focuses on the high growth parts of their portfolio and moving out or backing up with some of the low growth areas in that portfolio of MatrixCare that gives me great confidence as I look forward over the fiscal year and beyond that we're going to turn organic growth from sort of where it is now in the high single digits to double double digit growth on a stable organic basis across that SaaS business |
| During the last 12 months, we have improved over 165 million lives with the delivery of a medical device directly to a patient, a complete mask system to a patient or a digital health software solution, helping each person to sleep better, to breathe better and to live high quality lives with best in class healthcare delivered right where they live |
| Operating profit for the quarter increased by 10%, underpinned by strong revenue growth, partially offset by a lower gross margin |
| And so I think what it's shown is that ResMed is going to go head-to-head with full competition out there and be able to meet and beat the competition, because we've got the smallest, quietest, most comfortable, most connected and the most intelligent health systems, and it's that whole combination of not just the product, but the solution, the service and how it's embedded in the healthcare system to the patient to the physician that allows us to achieve that |
| We are well above the rates that we saw pre-COVID in 2019 across all geographies, triple digits across the board |
| The bottom line is that we are driving strong growth of patients into the funnel |
| We believe the work that's being done in the pharmaceutical industry right now with obesity drugs will be a net positive for patient flow and patient growth in sleep apnea, COPD and for ResMed overall |
| We see patient flow is not only strong but increasing |
| I talked earlier that our incredibly strong growth in devices of 20% in Europe, Asia and rest of world |
| And I think what was shown up in the numbers this quarter is our incredibly strong growth |
| Statement |
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| Gross margin declined by 160 basis points to 56% in the September quarter |
| When we think about fourth quarter's growth margin, it went down largely because of FX and mix and yet we've got that going in your favor in this quarter |
| We recorded losses of $4.5 million in our September quarter associated with the Primasun joint venture with Verily |
| We're seeing stabilized component costs now, that was a headwind even for this quarter but we're cycling, largely cycling that, particularly in the second half FY '24 |
| Mick Farrell And so yes, there will be ongoing longitudinal studies that will get out to the peer-reviewed press, but obviously, look, it's an urgent issue |
| We have stopped some projects that were not working out as well as we thought |
| We did see some product mix favorability there, but not enough to offset those component cost increases, for example |
| Note, we will anniversary this acquisition in Q2 FY24, so our headline SaaS growth rate will moderate in Q2 |
| This period a year ago, the September quarter 2022, we had just unleashed card to cloud on an unallocated basis, and it took off despite usually what is quite a low growth quarter in September, given that summer here in the US |
| These changes have impacted some of our teams |
| As Mick discussed, the joint venture will be winding down operations and we will incur no further losses going forward in relation to Primasun |
| But if you're talking year-on-year on the gross margin, really the biggest impact coming through was component cost increases that we're still cycling through and working through inventory |
| But it will be on the margin and it won't be -- I mean, certainly, the market believes it's going to be dramatic given the last 90 days of our stock |
| Please refer to our SEC filings for a complete discussion of the risk factors that could cause our actual results to differ materially from any forward-looking statements made today |
| However, the bottom line is that there remains a huge number of people needing our sleep apnea treatment solutions today and for the next two to three decades and beyond |
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