Slide 1: First Quarter 2024 Earnings
First Quarter 2024 Earnings May 7, 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: Disclaimer Regarding Potential Separation
Disclaimer Regarding Potential Separation On March 22, 2024, Masimo announced that its Board of Directors has authorized management to evaluate a proposed separation of the company’s consumer business (the “Potential Separation”). Masimo’s Board of Directors and management are in the process of eval
Slide 4: Financial Overview
Masino: Financial Overview
Slide 5: First Quarter 2024 Actual vs. Guidance and Prior Year
First Quarter 2024 Actual vs. Guidance(1) and Prior Year(2) Q1 2024 vs. vs. Prior Year Q1 2024 Guidance Guidance Q1 2023 Constant (1) ($ in millions) Actual Midpoint Midpoint Actual As Reported Currency Healthcare $340 $336 1% $347 (2%) (2%) Non-Healthcare $153 $153 0% $218 (30%) (29%) Revenue $493
Slide 6: 2024 Guidance Summary
2024 Guidance Summary(1),(2) (2) (2) Q2 2024 FY 2024 ($ in millions) Low High Low High Healthcare $330 - $340 $1,355 - $1,385 Non-Healthcare $150 - $170 $700 - $780 Revenue $480 - $510 $2,055 - $2,165 GAAP Gross Profit $242 - $258 $1,031 - $1,089 GAAP Gross Margin 50% - 51% 50% - 50% Non-GAAP Gross
Slide 7: Preliminary Estimate: Financial Impact of a Potential Separation
Preliminary Estimate: Financial Impact of a Potential Separation (1),(2) Consumer Audio Professional 2024 Consolidated Separation Additional Separation Total Healthcare (3) ($ in millions; except EPS) Guidance Midpoint Adjustments Adjustments Separation Impact (RemainCo) Revenue $2,110 ($740) ($5) (
Slide 8: Professional Healthcare (RemainCo): Path to 30% Non-GAAP Operating Margin
Professional Healthcare (RemainCo): Path to 30% Non-GAAP Operating Margin(1) Preliminary Estimate: Margin Improvement Initiatives Financial Impact of a Potential Separation (2) 520 bp to 680 bps 100 - 200 bps 350 bps 70 - 130 bps 220 - 380 bps 600 bps 23.2% 30% to 15.0% 24.8% 2024 Consolidated Consu
Slide 9: Professional Healthcare
Masino: Professional Healthcare
Slide 10: Incremental Value of New Contracts
Incremental Value of New Contracts(1) Through the first quarter of each year ($ in millions) $100 $80 $60 $40 $20 $0 2017 2018 2019 2020 2021 2022 2023 2024 (1) Represents total contract revenue over the multi-year term of the contracts. Includes contracts with new customers and incremental new cont
Slide 11: Unrecognized Contract Revenue
Unrecognized Contract Revenue(1) As of the end of the first quarter of each year ($ in millions) $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2018 2019 2020 2021 2022 2023 2024 11 (1) Represents Masimo’s Unrecognized Contract Revenue (as defined in Masimo’s Annual Report on Form 10-K filed February 2
Slide 12: Total Professional Healthcare Revenue
Total Professional Healthcare Revenue Through the first quarter of each year ($ in millions) Total Revenue $300 9% CAGR (2017 – 2024) Consumables and Service 10% CAGR (2017 – 2024) $200 Capital Equipment and Other 5% CAGR (2017 – 2024) $100 $0 2017 2018 2019 2020 2021 2022 2023 2024 12
Slide 13: Rainbow and Hemodynamics Revenue
Rainbow and Hemodynamics Revenue Through the first quarter of each year ($ in millions) Total Revenue $60 18% CAGR (2017 – 2024) Consumables and Service $40 28% CAGR (2017 – 2024) Capital Equipment and Other 5% CAGR (2017 – 2024) $20 $0 2017 2018 2019 2020 2021 2022 2023 2024 13
Slide 14: Brain Monitoring Revenue
Brain Monitoring Revenue Through the first quarter of each year ($ in millions) $15 Total Revenue 31% CAGR (2017 – 2024) Consumables and Service $10 33% CAGR (2017 – 2024) Capital Equipment and Other 11% CAGR (2017 – 2024) $5 $0 2017 2018 2019 2020 2021 2022 2023 2024 14
Slide 15: Capnography and Gas Monitoring Revenue
Capnography and Gas Monitoring Revenue Through the first quarter of each year ($ in millions) $15 Total Revenue 16% CAGR (2017 – 2024) Consumables and Service $10 30% CAGR (2017 – 2024) Capital Equipment and Other 5% CAGR (2017 – 2024) $5 $0 2017 2018 2019 2020 2021 2022 2023 2024 15
Slide 16: Consumer Audio
Masino: Consumer Audio
Slide 17: Consumer Audio Revenue
Consumer Audio Revenue(1) Through the first quarter of each year ($ in millions) $300 Total Revenue -10% CAGR (2021 – 2024) $250 Hearables(2) $200 66% CAGR (2021 – 2024) $150 Home Audio -13% $100 CAGR (2021 – 2024) $50 $0 2021 2022 2023 2024 (1) 2021 and 2022 revenue is presented on a pro forma basi
Slide 18: Hearables and Wearables
Masino: Hearables and Wearables
Slide 19: Hearables and Wearables Revenue
Hearables and Wearables Revenue(1,2) Through the first quarter of each year ($ in millions) $20 Total Revenue 38% CAGR (2021 – 2024) $16 Hearables(2) 66% CAGR (2021 – 2024) $12 Wearables(2) $8 -30% CAGR (2021 – 2024) $4 $0 2021 2022 2023 2024 (1) 2021 and 2022 revenue is presented on a pro forma bas
Slide 20: Appendix: GAAP to Non-GAAP Reconciliations
Appendix GAAP to Non-GAAP Reconciliations 20
Slide 21: Consolidated Income Statement
Consolidated Income Statement (Unaudited; in millions, except per share data) (1),(3) Quarter to Date Q2 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 Q1 2024 Low High FY 2022 FY 2023 Low High GAAP revenue $304.2 $565.3 $549.3 $617.0
Slide 22: Consolidated Income Statement
Consolidated Income Statement (Unaudited; in millions, except per share data) (1),(3) Quarter to Date Q2 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 Q1 2024 Low High FY 2022 FY 2023 Low High GAAP non-operating income (expense) ($0.
Slide 23: Revenue
Revenue (Unaudited; in millions, except percentages) (1,3) Quarter to Date Q2 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 Q1 2024 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
Slide 24: Segment Reporting
Segment Reporting (Unaudited; in millions) (1) Quarter to Date Q2 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 Q1 2024 Low High FY 2022 FY 2023 Low High Revenue Healthcare 304.2 357.0 327.2 351.9 346.7 281.1 307.8 339.9 339.6 330 34