Slide 1: Second Quarter 2021 Earnings Presentation
Improving Patient Outcomes Reducing the Cost of Care® Second Quarter 2021 Earnings Presentation | July 27, 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: Second Quarter 2021 Highlights
Second Quarter 2021 Highlights Product revenue was $305.1 million Excluding handheld and fingertip pulse oximeters, shipments of noninvasive technology boards and instruments was 72,500 GAAP operating margin was 21.3% Non-GAAP operating margin(1) was 23.4% GAAP EPS was $0.88 per diluted sh
Slide 5: Second Quarter 2021 Results – GAAP
Second Quarter 2021 Results – GAAP(1) (in millions; except % and EPS) Q2 2021 Q2 2020 vs. Prior Year Revenue $305.1 $301.0 1.4% Gross Margin 63.2% 63.7% (50) bps SG&A Expense 30.8% 32.7% (190) bps R&D Expense 11.1% 10.3% 80 bps Operating Expenses 41.9% 43.0% (110) bps Operating Margin 21.3% 20.7% 60
Slide 6: Second Quarter 2021 Results – Non-GAAP vs. Prior Year
Second Quarter 2021 Results – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) Q2 2021 Q2 2020 Reported Constant Currency Revenue $305.1 $301.0 1.4% (0.1)% Gross Margin 64.7% 63.9% 80 bps SG&A Expense 30.2% 32.5% (230) bps R&D Expense 11.1% 10.3% 80 bps Operating Expenses 41.3% 42.7% (140)
Slide 7: Second Quarter 2021 Results – Non-GAAP
Second Quarter 2021 Results – Non-GAAP(1) Q2 2020 Q2 2021 230 bps Q2 2020 Q2 2021 Q2 2020 Q2 2021 $305M (0.1)% +10.6% Non-GAAP(1) Operating MarginProduct Revenue Non-GAAP(1) EPS $301M Constant Currency Impact(1) 23.4% 21.1% $0.80 $0.76 (1) Non-GAAP measures shown have been adjusted for certain items
Slide 8: Full Year 2021 Financial Guidance
Full Year 2021 Financial Guidance Product revenue increasing 6.3% to $1,216 million or 5.4% constant on a currency basis(1) GAAP operating margin of 22.3% Non-GAAP operating margin(1) of 23.8% GAAP EPS of $3.83 per diluted share Non-GAAP EPS(1) of $3.85 per diluted share Revenue Profitabil
Slide 9: 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 Revenue $1,216.0 $1,143.7 6.3% Gross Margin 65.3% 65.0% 30 bps Operating Expenses 43.1% 42.6% 50 bps Operating Margin 22.3% 22.4% (10) bps Tax Rate 18.2% 8.9% 930 bps GAAP EPS $3.83 $4.14 (7.5)
Slide 10: 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 Revenue $1,216.0 $1,143.7 6.3% 5.4% Gross Margin 66.0% 65.1% 90 bps Operating Expenses 42.2% 42.1% 10 bps Operating Margin 23.8% 23.1% 70 bps Tax Rate 23.4% 22.2%
Slide 11: Full Year 2021 Financial Guidance – Non-GAAP
FY 2020 FY 2021 Full Year 2021 Financial Guidance – Non-GAAP(1) FY 2020 FY 2021 70 bps FY 2020 FY 2021 $1,216M +5.4% +6.9% Non-GAAP(1) Operating MarginProduct Revenue Non-GAAP(1) EPS $1,144M Constant Currency Growth(1) 23.8% 23.1% $3.85 $3.60 (1) Non-GAAP measures shown have been adjusted for certai
Slide 12: 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 13: Non-GAAP Adjustment Descriptions: 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 14: Foreign Currency Transaction Gains and Losses Adjustments
Realized and unrealized gains or losses from foreign currency transactions These transactions represent gains, losses, and other related costs associated with foreign currency denominated transactions and investments. As the Company does not actively hedge these currency exposures, changes in the un
Slide 15: Constant Currency Product Revenue Reconciliation
(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 16: Non-GAAP Gross Margin Reconciliation
(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 17: Non-GAAP Operating Expense Reconciliation
(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 18: Non-GAAP Operating Margin Reconciliation
Non-GAAP Operating Margin %(1),(2) (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 d
Slide 19: Non-GAAP Net Income and Diluted EPS
Non-GAAP Net Income and Diluted EPS(1),(2) (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 re
Slide 20: 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