Slide 1: Fourth Quarter 2023 Earnings
Fourth Quarter 2023 Earnings February 27, 2024 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains 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,” “plan,”
Slide 3: Financial Overview
Masino: Financial Overview
Slide 4: Fourth Quarter 2023 Actual vs. Prior Year
Fourth Quarter 2023 Actual vs. Prior Year (1) vs. Prior Year ($ in millions) Q4 2023 Q4 2022 Constant As Reported Currency Healthcare $340 $352 (3%) (4%) Non-Healthcare $209 $265 (21%) (23%) Revenue $549 $617 (11%) (12%) GAAP Gross Profit $263 $313 (16%) GAAP Gross Margin 48% 51% (290) bps Non-GAAP
Slide 5: Full Year 2023 Actual vs. Prior Year
Full Year 2023 Actual vs. Prior Year (1) vs. Prior Year ($ in millions) FY 2023 FY 2022 Constant (2) As Reported Currency Healthcare $1,275 $1,340 (5%) (4%) Non-Healthcare $773 $695 11% (18%) Revenue $2,048 $2,036 1% (10%) GAAP Gross Profit $1,004 $1,059 (5%) GAAP Gross Margin 49% 52% (300) bps Non-
Slide 6: Full Year 2024 Guidance Summary
Full Year 2024 Guidance Summary (1) Q1 2024 FY 2024 ($ in millions) Low High Low High Healthcare $331 - $341 $1,345 - $1,385 Non-Healthcare $145 - $160 $700 - $780 Revenue $476 - $501 $2,045 - $2,165 GAAP Gross Profit $243 - $257 $1,040 - $1,105 GAAP Gross Margin 51% - 51% 51% - 51% Non-GAAP Gross P
Slide 7: Strategic Growth Initiatives: Hearables and Wearables Revenue
Strategic Growth Initiatives Hearables and Wearables Revenue(1,2) Worldwide ($ in Millions) $100 $100 Total Revenue $90 $90 66% CAGR (2021 – 2023) $80 $80 Hearables(2) $70 $70 79% CAGR (2021 – 2023) $60 $60 $50 $50 Wearables(2) $40 $40 20% CAGR (2021 – 2023) $30 $30 $20 $20 $10 $10 $0 $0 2021 2022 2
Slide 8: Professional Healthcare
Masino: Professional Healthcare
Slide 9: Professional Healthcare: Incremental Value of New Contracts
Professional Healthcare Incremental Value of New Contracts(1) Worldwide ($ in millions) $400 $350 $300 $250 $200 $150 $100 $50 $0 2017 2018 2019 2020 2021 2022 2023 Through the fourth quarter of each year (1) Represents total contract revenue over the multi-year term of the contracts. Includes contr
Slide 10: Professional Healthcare: Unrecognized Contract Revenue
Professional Healthcare Unrecognized Contract Revenue(1) Worldwide ($ in millions) $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2018 2019 2020 2021 2022 2023 As of the end of the fourth quarter of each year 10 (1) Represents Masimo’s Unrecognized Contract Revenue (as defined in Masimo’s most r
Slide 11: Professional Healthcare Revenue
Professional Healthcare Professional Healthcare Revenue Worldwide ($ in millions) $1,400 $1,400 Total Revenue 10% CAGR (2017 – 2023) $1,200 $1,200 $1,000 $1,000 $800 $800 $600 $600 $400 $400 $200 $200 $0 $0 2017 2018 2019 2020 2021 2022 2023 Through the fourth quarter of each year 11
Slide 12: Rainbow and Hemodynamics Revenue
Professional Healthcare Rainbow and Hemodynamics Revenue Worldwide ($ in millions) $200 $200 Total Revenue $180 $180 17% CAGR (2017 – 2023) $160 $160 $140 $140 $120 $120 $100 $100 $80 $80 $60 $60 $40 $40 $20 $20 $0 $0 2017 2018 2019 2020 2021 2022 2023 Through the fourth quarter of each year 12
Slide 13: Brain Monitoring Revenue
Professional Healthcare Brain Monitoring Revenue Worldwide ($ in millions) $60 $60 Total Revenue 26% CAGR (2017 – 2023) $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 $0 $0 2017 2018 2019 2020 2021 2022 2023 Through the fourth quarter of each year 13
Slide 14: Capnography and Gas Monitoring Revenue
Professional Healthcare Capnography and Gas Monitoring Revenue Worldwide ($ in millions) $60 $60 Total Revenue 14% CAGR (2017 – 2023) $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 $0 $0 2017 2018 2019 2020 2021 2022 2023 Through the fourth quarter of each year 14
Slide 15: Consumer Audio
Masino: Consumer Audio
Slide 16: Consumer Audio Revenue
Consumer Audio Consumer Audio Revenue(1) Worldwide ($ in millions) $1,000 $1,000 Total Revenue $900 $900 (8)% CAGR (2021 – 2023) $800 $800 Hearables(2) $700 $700 79% CAGR (2021 – 2023) $600 $600 $500 $500 Home Audio $400 $400 (11)% CAGR (2021 – 2023) $300 $300 $200 $200 $100 $100 $0 $0 2021 2022 202
Slide 17: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 17
Slide 18: Consolidated Income Statement
Consolidated Income Statement (Unaudited; in millions, except per share data) (1),(3) Quarter to Date Q1 2024 Guidance (2) FY 2024 Guidance (2) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Low High FY 2021 FY 2022 FY 2023 Low High GAAP revenue $304.2 $565.3 $549.3 $617.0 $565.0 $4
Slide 19: Consolidated Income Statement
Consolidated Income Statement (Unaudited; in millions, except per share data) (1),(3) Quarter to Date Q1 2024 Guidance (2) FY 2024 Guidance (2) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Low High FY 2021 FY 2022 FY 2023 Low High GAAP non-operating income (expense) ($0.6) $4.5 ($
Slide 20: Revenue
Revenue (Unaudited; in millions, except percentages) (1,3) Quarter to Date Q1 2024 Guidance Full Year FY 2024 Guidance (2) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Low High FY 2022 FY 2023 Low High Revenue Healthcare 304.2 357.0 327.2 351.9 346.7 281.1 307.8 339.9 331 341 1,34
Slide 21: Segment Reporting
Segment Reporting (Unaudited; in millions) (1) Quarter to Date Q1 2024 Guidance (2) Full Year FY 2024 Guidance (2) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Low High FY 2022 FY 2023 Low High Revenue Healthcare 304.2 357.0 327.2 351.9 346.7 281.1 307.8 339.9 331 341 1,340.3 1,27