Slide 1: Fourth Quarter & Full Year 2021 Results Earnings Presentation
Fourth Quarter & Full Year 2021 Results Earnings Presentation February 15, 2022
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 2021 Highlights
Fourth Quarter 2021 Highlights (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the Appendix. 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 Su
Slide 5: Fourth Quarter 2021 Results – GAAP vs. Prior Year
Fourth Quarter 2021 Results – GAAP(1) vs. Prior Year (in millions; except % and EPS) Q4 2021 Q4 2020 Reported Revenue $327.6 $295.1 11.0% Gross Margin 65.6% 63.4% 220 bps SG&A Expense 31.8% 30.6% 120 bps R&D Expense 10.2% 10.7% (50) bps Operating Expenses 42.0% 41.4% 60 bps Operating Margin 23.6% 22
Slide 6: Fourth Quarter 2021 Results – Non-GAAP vs. Prior Year
Fourth Quarter 2021 Results – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) Q4 2021 Q4 2020 Reported Constant Currency Revenue $327.6 $295.1 11.0% 11.5% Gross Margin 65.9% 63.5% 240 bps SG&A Expense 30.0% 29.7% 30 bps R&D Expense 10.2% 10.7% (50) bps Operating Expenses 40.2% 40.4% (20)
Slide 7: Fourth Quarter 2021 Results – Non-GAAP
Q4 2020 Q4 2021 11.5% Q4 2020 Q4 2021Q4 2020 Q4 2021 Fourth Quarter 2021 Results – Non-GAAP(1) $328M Non-GAAP(1) Operating Margin Non-GAAP(1) EPS $295M Constant Currency Impact(1) 25.7% 23.1% $1.21 $0.98 (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the
Slide 8: Full Year 2021 Highlights
Full Year 2021 Highlights Product revenue of $1,239.2 million, which reflects 8.3% reported growth and 7.6% growth on a constant currency basis(1) GAAP operating margin of 22.3% Non-GAAP operating margin(1) of 23.8% GAAP EPS of $3.98 per diluted share Non-GAAP EPS(1) of $3.99 per diluted s
Slide 9: Full Year 2021 Results – GAAP vs. Prior Year
Full Year 2021 Results – GAAP(1) vs. Prior Year (in millions; except % and EPS) FY 2021 FY 2020 Reported Revenue $1,239.2 $1,143.7 8.3% Gross Margin 65.2% 65.0% 20 bps SG&A Expense 31.9% 32.3% (40) bps R&D Expense 11.1% 10.4% 70 bps Operating Expenses 43.0% 42.6% 40 bps Operating Margin 22.3% 22.4%
Slide 10: Full Year 2021 Results – Non-GAAP vs. Prior Year
Full Year 2021 Results – Non-GAAP(1) vs. Prior Year (in millions; except % and EPS) FY 2021 FY 2020 Reported Constant Currency Revenue $1,239.2 $1,143.7 8.3% 7.6% Gross Margin 65.8% 65.1% 70 bps SG&A Expense 30.9% 31.7% (80) bps R&D Expense 11.1% 10.4% 70 bps Operating Expenses 42.0% 42.1% (10) bps
Slide 11: Full Year 2021 Results – Non-GAAP
FY 2020 FY 2021 +7.6% FY 2020 FY 2021FY 2020 FY 2021 Full Year 2021 Results – Non-GAAP(1) $1,239M Non-GAAP(1) Operating Margin Non-GAAP(1) EPS $1,144M Constant Currency Impact(1) 23.8% 23.1% $3.99 $3.60 (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the
Slide 12: Full Year 2022 Financial Guidance
Full Year 2022 Financial Guidance Product revenue of $1,350 million, which reflects 8.9% reported growth and 9.5% growth on a constant currency basis(1) GAAP operating margin of 23.0% Non-GAAP operating margin(1) of 24.8% GAAP EPS of $4.27 per diluted share Non-GAAP EPS(1) of $4.34 per dil
Slide 13: Full Year 2022 Financial Guidance – GAAP vs. Prior Year
Full Year 2022 Financial Guidance – GAAP(1) vs. Prior Year (in millions; except % and EPS) FY 2022 FY 2021 Reported Revenue $1,350.0 $1,239.2 8.9% Gross Margin 66.2% 65.2% 100 bps Operating Expenses 43.2% 43.0% 20 bps Operating Margin 23.0% 22.3% 70 bps Tax Rate 19.4% 16.3% 310 bps GAAP EPS $4.27 $3
Slide 14: Full Year 2022 Financial Guidance – Non-GAAP
Full Year 2022 Financial Guidance – Non-GAAP(1) (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP a
Slide 15: Full Year 2022 Financial Guidance – Non-GAAP
FY 2021 FY 2022 +9.5% FY 2021 FY 2022FY 2021 FY 2022 Full Year 2022 Financial Guidance – Non-GAAP(1) $1,350M Non-GAAP(1) Operating Margin Non-GAAP(1) EPS $1,239M Constant Currency Impact(1) 24.8% 23.8% $4.34 $3.99 (1) Non-GAAP measures shown have been adjusted for certain items that are fully descri
Slide 16: Masimo Adds Telehealth to Its Masimo SafetyNet Telemonitoring System
Masimo Adds Telehealth to Its Masimo SafetyNet ® Telemonitoring System • Enhances Telehealth capabilities with advanced communication and collaboration features • Capabilities include ability for enhanced video conferencing with share screen, launching a digital whiteboard, chatting via in-app secur
Slide 17: Introducing The Masimo W1: Continuous Health Monitoring Watch
Introducing The Masimo W1: Continuous Health Monitoring Watch (1) • Leverages proprietary SET® Pulse Oximetry technology • Continuous monitoring of multiple parameters including oxygen saturation (SpO2), pulse rate and respiratory rate (RR) • Fall detection, steps and electrocardiogram (ECG) • Integ
Slide 18: Connected In Hospital, Connected At Home
Suite of interconnected health & consumer wellness solutions across both hospital & home Masimo: Connected In Hospital, Connected At Home Masimo in Hospital Masimo in Home & On-the-Go
Slide 19: Sound United: Premium Consumer Technology Leader
Sound United: Premium Consumer Technology Leader • Iconic and universally-recognized brands with entrenched relationships into consumer channels • Long heritage of excellence in premium audio technologies • Fully-integrated wireless software platform, including HEOS Ecosystem connecting devices and
Slide 20: Strategic Opportunity for Masimo
Strategic Opportunity for Masimo • Evolving large total addressable market opportunity • High-fidelity telehealth solutions Integration of healthcare technology with consumer products • Helps bring Masimo’s W1 and other clinical-grade technologies into the home and on-the-go settings • Accelerates d
Slide 21: Strategic Expansion of Masimo
Strategic Expansion of Masimo History Today Tomorrow Non-Invasive Patient Monitoring Hospital Automation & Connectivity Telehealth, Telemonitoring, Hospital-At-Home & Consumer Health and Wellness + +
Slide 22: Appendices: GAAP to Non-GAAP Adjustments and Reconciliations
Appendices GAAP to Non-GAAP Adjustments and Reconciliations
Slide 23: Description of Non-GAAP Adjustments
Description of Non-GAAP Adjustments 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.
Slide 24: Description of Non-GAAP Adjustments
Description of Non-GAAP 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 c
Slide 25: Constant Currency Product Revenue
Constant Currency Product Revenue(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 repo
Slide 26: Non-GAAP Gross Margin %
Non-GAAP Gross 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 due t
Slide 27: Non-GAAP Operating Expense %
Non-GAAP Operating Expense %(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
Slide 28: Non-GAAP Operating Margin %
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 29: 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 30: Adjusted Free Cash Flow
Adjusted Free Cash Flow(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 due t