Masimo Corporation · NASDAQ:MASI
Masimo — Q4 2020 Earnings Presentation
24 slides from Masimo's earnings presentation, Feb 23, 2021
Slide 1: Fourth Quarter 2020 Earnings Presentation
Improving Patient Outcomes Reducing the Cost of Care® Fourth Quarter 2020 Earnings Presentation | February 23, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expect,” “believe,” “anticipate,” “p
Slide 3: Non-GAAP Financial Measures
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 certain items that are more fully described in the Appendix. Management belie
Slide 4: Fourth Quarter 2020 Highlights
Fourth Quarter 2020 Highlights Total revenue, including royalty and other revenue, increased 19.2% to $295.1 million Product revenue increased 19.2% to $295.1 million, or 18.1% on a constant currency basis(1) Shipments of noninvasive technology boards and instruments were 83,000 GAAP operati
Slide 5: Fourth Quarter 2020 Results – GAAP
Fourth Quarter 2020 Results – GAAP(1) (in millions; except % and EPS) Q4 2020 Q4 2019 vs. Prior Year Comments Revenue $295.1 $247.5 19.2% Increased demand driven by higher volumes of technology boards and instruments Gross Margin 63.4% 67.4% (400) bps Gross margin decrease due to a higher than usual
Slide 6: Fourth Quarter 2020 Results – Non-GAAP vs. Prior Year
Fourth Quarter 2020 Results – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) Q4 2020 Q4 2019 Reported Constant Currency Comments Revenue $295.1 $247.4 19.2% 18.1% Increased demand driven by higher volumes of technology boards and instruments Gross Margin 63.5% 67.5% (400) bps Gross margi
Slide 7: Fourth Quarter 2020 Results – Non-GAAP
Fourth Quarter 2020 Results – Non-GAAP(1) Q4 2019 Q4 2020 (260) bps Q4 2019 Q4 2020 Q4 2019 Q4 2020 $295M +18.1% +7.7% Non-GAAP(1) Operating MarginProduct Revenue Non-GAAP(1) EPS $247M Constant Currency Growth(1) 23.1% 25.7% $0.80 $0.76 (1) Non-GAAP measures shown have been adjusted for certain item
Slide 8: Full Year 2020 Highlights
Full Year 2020 Highlights Total revenue, including royalty and other revenue, increased 22.0% to $1,143.7 million Product revenue increased 22.1% to $1,143.7 million, on a reported and constant currency basis(1) Shipments of noninvasive technology boards and instruments were 472,300 GAAP ope
Slide 9: Full Year 2020 Results – GAAP
Full Year 2020 Results – GAAP(1) (in millions; except % and EPS) FY 2020 FY 2019 vs. Prior Year Comments Revenue $1,143.7 $937.8 22.0% Increased demand driven by higher volumes of technology boards and instruments Gross Margin 65.0% 67.1% (210) bps Gross margin decrease due to a higher than usual pr
Slide 10: Full Year 2020 Results – Non-GAAP vs. Prior Year
Full Year 2020 Results – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) FY 2020 FY 2019 Reported Constant Currency Comments Revenue $1,143.7 $936.4 22.1% 22.1% Increased demand driven by higher volumes of technology boards and instruments Gross Margin 65.1% 67.1% (200) bps Gross margin d
Slide 11: Full Year 2020 Results – Non-GAAP
Full Year 2020 Results – Non-GAAP(1) FY 2019 FY 2020 (90) bps FY 2019 FY 2020 FY 2019 FY 2020 $1,144M +22.1% +11.8% Non-GAAP(1) Operating MarginProduct Revenue Non-GAAP(1) EPS $936M Constant Currency Growth(1) 23.1% 24.0% $0.80 $0.76 (1) Non-GAAP measures shown have been adjusted for certain items t
Slide 12: Full Year 2021 Financial Guidance
Full Year 2021 Financial Guidance Total revenue, including royalty and other revenue, of $1,200 million Product revenue increasing 4.9% to $1,200 million or 3.6% constant on a currency basis(1) GAAP operating margin of 23.5% Non-GAAP operating margin(1) of 24.5% GAAP EPS of $3.81 per dilut
Slide 13: Full Year 2021 Financial Guidance – GAAP
Full Year 2021 Financial Guidance – GAAP(1) (in millions; except % and EPS) FY 2021 FY 2020 vs. Prior Year Comments Revenue $1,200.0 $1,143.7 4.9% Tough comparisons to 2020 growth rate of ~22% 2-Year compound annual growth rate (CAGR) of ~13% vs. 2019 Gross Margin 66.8% 65.0% 180 bps Gross margin in
Slide 14: Full Year 2021 Financial Guidance – Non-GAAP vs. Prior Year
Full Year 2021 Financial Guidance – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) FY 2021 FY 2020 Reported Constant Currency Comments Revenue $1,200.0 $1,143.7 4.9% 3.6% Tough comparisons to 2020 growth rate of ~22% 2-Year compound annual growth rate (CAGR) of ~13% vs. 2019 . Gross Marg
Slide 15: Full Year 2021 Financial Guidance – Non-GAAP
Full Year 2021 Financial Guidance – Non-GAAP(1) FY 2020 FY 2021 140 bps FY 2020 FY 2021 FY 2020 FY 2021 $1,200M +3.6% +5.6% Non-GAAP(1) Operating MarginProduct Revenue Non-GAAP(1) EPS $1,144M Constant Currency Growth(1) 24.5% 23.1% $3.80 $3.60 (1) Non-GAAP measures shown have been adjusted for certa
Slide 16: Appendices: GAAP to Non-GAAP Adjustments and Reconciliations
Improving Patient Outcomes Reducing the Cost of Care® APPENDICES GAAP to Non-GAAP Adjustments and Reconciliations
Slide 17: Non-GAAP Adjustment Definitions: Constant Currency
The non-GAAP financial measures reflect adjustments for the following items, as well as the related income tax effects thereof: Constant currency adjustments Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency reven
Slide 18: Realized and Unrealized Foreign Currency Gains or Losses
Realized and unrealized gains or losses from foreign currency transactions: We are exposed to foreign currency gains or losses on outstanding foreign currency denominated receivables and payables related to certain customer sales agreements, product costs and other operating expenses. As the Company
Slide 19: Reconciliation of GAAP Product Revenue Growth to Constant Currency
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it
Slide 20: Reconciliation of GAAP Gross Profit/Margin to Non-GAAP
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it
Slide 21: Non-GAAP Operating Expense %
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it
Slide 22: Non-GAAP Operating Margin %
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it
Slide 23: Non-GAAP Net Income and Diluted EPS
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it
Slide 24: Reconciliation of Free Cash Flow to Adjusted Free Cash Flow
(1) Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. (2) Reported amounts may vary from amounts previously reported due to rounding conventions; Note it