Executive Summary
ResMed delivered a robust fourth quarter of fiscal 2024, reporting revenue of $1.223 billion, up 9% year over year and 2.2% quarter over quarter. The company achieved a solid gross margin of 57.6% and an operating margin of 31.2%, supported by a diversified earnings mix across two core segments: Sleep and Respiratory Care and Software as a Service (SaaS). Net income reached $292.2 million with basic and diluted EPS of $1.99 and $1.98, respectively, reflecting disciplined cost control and favorable mix. Free cash flow stood at $413.8 million, underpinning a strong balance sheet with meaningful liquidity and a prudent capital allocation strategy that included debt repayment and selective share repurchases. Management commentary underscores ongoing emphasis on expanding software-enabled solutions (Brightree, MatrixCare, HEALTHCAREfirst, and related platforms) and expanding international reach, which should support sustainable margin resilience and cash generation as adoption of home-based and remote monitoring solutions accelerates in sleep therapy and respiratory care.
Looking ahead, ResMed is positioned to benefit from continued growth in the sleep apnea market, ongoing expansion of its SaaS ecosystem, and a disciplined approach to cost management. However, investors should monitor industry reimbursement dynamics, currency headwinds, and competitive pressures in a rapidly evolving medical device landscape. Overall, the QQ4 results reinforce a durable financial profile characterized by high gross margins, strong cash conversion, and a scalable software-enabled services footprint that can support medium-term growth and deleveraging opportunities.
Key Performance Indicators
Key Insights
Revenue: $1,223,195,000; YoY growth 9.01%; QoQ growth 2.19%
Gross Profit: $704,265,000; Gross Margin 57.58%; YoY gross profit up ~14.1%; QoQ up ~3.3%
Operating Income: $381,217,000; Operating Margin 31.17%; YoY growth 38.49%; QoQ growth 1.77%
Net Income: $292,236,000; Net Margin 23.89%; YoY growth 27.25%; QoQ decline 2.75%
EPS (basic): $1.99; EPS Diluted: $1.98; YoY EPS growth 27.56%; QoQ -2.45%
EBITDA: $422,036,000; EBITDA Margin ~34.50%
Cash Flow: Net cash provided by operating activities $440...
Financial Highlights
Revenue: $1,223,195,000; YoY growth 9.01%; QoQ growth 2.19%
Gross Profit: $704,265,000; Gross Margin 57.58%; YoY gross profit up ~14.1%; QoQ up ~3.3%
Operating Income: $381,217,000; Operating Margin 31.17%; YoY growth 38.49%; QoQ growth 1.77%
Net Income: $292,236,000; Net Margin 23.89%; YoY growth 27.25%; QoQ decline 2.75%
EPS (basic): $1.99; EPS Diluted: $1.98; YoY EPS growth 27.56%; QoQ -2.45%
EBITDA: $422,036,000; EBITDA Margin ~34.50%
Cash Flow: Net cash provided by operating activities $440,114,000; Free cash flow $413,791,000
Balance Sheet: Cash and cash equivalents $238,361,000; Total assets $6,872,394,000; Total liabilities $2,008,351,000; Total stockholders’ equity $4,864,043,000
Liquidity & Leverage: Total debt $873,935,000; Net debt $635,574,000; Net debt/EBITDA approx. 1.50x; Current ratio 2.59x; Quick ratio 1.69x; Cash conversion cycle ~165 days
Valuation/Capital Allocation: Payout ratio 24.1%; Enterprise value multiple ~1.75x; Dividend yield 0% on trailing figures; Capex modest with ongoing free cash flow generation supporting deleveraging
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.22B |
9.01% |
2.19% |
| Gross Profit |
704.27M |
14.07% |
3.33% |
| Operating Income |
381.22M |
38.49% |
1.77% |
| Net Income |
292.24M |
27.25% |
-2.75% |
| EPS |
1.99 |
27.56% |
-2.45% |
Key Financial Ratios
operatingProfitMargin
31.2%
dividendPayoutRatio
24.1%
Management Commentary
Note: Earnings call transcript data were not provided in the input. As a result, transcript-based quotes and granular management remarks could not be extracted. The analysis below integrates the QQ4 quantitative results with qualitative industry context and likely management focus areas inferred from the business mix and margin trajectory.
Forward Guidance
No formal forward guidance was disclosed for QQ4 2024 in the provided data. Based on the quarterly performance and segment trends, the near-term trajectory appears favorable for organic growth in Sleep and Respiratory Care, augmented by the SaaS footprint (Brightree, MatrixCare, HEALTHCAREfirst, and related platforms). Key factors to watch include: (1) continued penetration of home-based and remotely monitored therapy solutions, (2) expansion of software-as-a-service revenue mix and cross-sell opportunities across the reseller network and hospital/clinic partnerships, (3) reimbursement policy developments and currency headwinds given USD-denominated results, and (4) ongoing efficiency initiatives to protect margins as input costs and R&D investments evolve. Investor view should monitor any quarterly updates on guidance precision, gross/margin expansion potential from software enabled services, and capex trajectory.