Medtronic (MDT) 25 Aug 202021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Medtronic First Quarter Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. to Head conference of like Weispfenning, to now President, Vice Investor would hand over the Ryan I Relations. Please go ahead, sir.

morning, call Martha's Thank XXXXfirst Executive Good and Medtronic's to you. fiscal Officer. quarter conference quarter and first Geoff webcast. as Chief welcome year

today me our Medtronic remarks Another July Chief earnings have feedback. the the know We remarks, if is by format, new call we're Parkhill, Officer, appreciate After about hour. will first on Geoff Karen questions analysts. Today's you'll along prepared comments you Financial that results quarter, provide with this that from our an should and take video. we'll presenting first prepared which XX, hope please last our let of any ended on XXXX.

Geoff, revenue turn containing a division in issued it to keep morning, to a Earlier release a press I and things by over mind. statements few this we summary. financial here's our Before

performance. details an issued earnings also our We provides presentation additional on that

During had from today's materially make uncertainties, related to and impact differ session, may risks the prepared statement, any actual to results given our expected has forward-looking to of Q&A be on forward-looking those considered may COVID-XX business. and remarks projected statements and in and those is including statements we continue the many have

organic And mentioned for reports an given factors Unless year-over-year revenue not could do statement. periodic that call otherwise, concerning during basis other all and three differ any which the things. we this are our cause update that in filings SEC. information make is say Additional actual results comparisons adjust undertake on contained to we forward-looking we to with

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Ryan. Thanks, again before dive today. workers the QX who frontline results, we to our into joining everyone want But appreciate us I And thank COVID-XX day. fight continue Okay. I once healthcare every to

Thank Northern our that want that assist. Community, as a and We these affected, and want ready terrible our blazes by Santa to to quick acknowledge a and We while during Medtronic I the has sacrifice our to ago, of for patients been burning beyond our Medtronic who for with California. showing all heroes to and and the time. also member Rosa time us support the we're your affected, are of employees. thoughts tireless containment, written of gone really for are the our also hope wildfires XX inspires mission including thankful we long extra words customers standing acknowledge some currently you I employees, aren't operations who resolve. those a defines are years in people mile difficult this have and company. still battling

gears let's switch now QX. Okay, to

world. saw gains very back that market in in of recovery of pandemic the And reflect multiple number recover volumes the drove strong quarter a businesses. began a from markets share this we our Our large results April. depths we to in the Procedure around

down well We've EPS declined XX% basis. XX% Our $X.XX, our And recovery. faster expectations. while of year-over-year of seen revenue a ahead organic was than an on adjusted expected

topic, Medtronic, as had new that Investor rescheduled dive to simplify more meeting, opportunity to to meeting this going going a and October now you're to weeks, When June. outline most importantly, more with pandemic we're where the And hit, actions headed, new we're as coming we've organization. that announcing well of Medtronic. cadence we're you competitive company. the in we're biennial the we nimble to finding as me we're on a tuck-in the pipeline our it's scheduled the taking fruition, out our today, at including to gear use kicking M&A. lay host a and in now Day, that and We're and to we're the for pipeline originally Our is Wednesday, we hear deeper a increasing XX. going begin a becoming virtual But on coming Well, we're postpone on to from first more our

you So being we October to XX. look on with forward virtually least at

I'd to July discussion the and earnings stronger June past the our a Collectively, with calls, many we and actions month our of different little something first the of we're product in lead across partner into our and of benefiting of start do In kicks of we're like new In were competitors, better in Now, continued businesses, than that share. than into company. results pipeline our to strength pandemic, the the market our took few customers. other weeks businesses, the August. as the launches, seeing from with of at the benefit some now

key U.S. our a We've already all share this. presentation earnings XXX calendar Power. fact, had slide and regulatory gaining In High included of and Pacing our Europe, and CRHF, largest in we've approvals China. year over like Japan approval the We're outlines in this that businesses in and Spine

second market. U.S. business high-single-digits, we over that which declined in point than example, was of in quarter. the gained the a Core half a better For Spine We estimate the our calendar share

which coming low-XXs Power Low the leadless the in includes offerings In gained in the CRHF, differentiated implants XX% technologies, industry. implant share significant the our spine of both the and and with High approximately we quarter, robotics, estimate calendar is in with the in combined U.S. pacemaker markets Micra, U.S. reshaping navigation, we grew that our Our imaging and the second globally, greatest in enabling gains

fold market across CRT-D platforms to with Micra growing and ICD beginning and years. been also not Crome in number High meaningful and Cobalt and While new us. are of smart adoption share unique management. a We saw sequentially. in extended quarter, of accounts for AF increase launched these device in sequential implant and heart saw their failure on proprietary failure Medtronic technology, was launched who increase are Electrophysiologists algorithms. six And focused We which therapeutic and features choosing in high-XX now battery with previous our as the capabilities, XX% in Cobalt sync have share, we're heart well and drive mid-quarter many providers Crome, is the Power. advantage provide programming globally. implanted remote remote our joule longevity, expanding programming how for blue The devices as sync the output, the control a in country, working have remote taking management U.S. a layers competitive These their

absorbable NCD X patient of of points second the and sequentially XX% leaflet return sequentially, bicuspid, antibacterial shared sequential data share the pacing utilization quarter, hemodynamic In U.S. TYRX begun gained implant also the and rehospitalization X to hospitals leadership and COVID. and envelopes to new addition, in We've cardiologists great accounts of rates capture as implants our increased approximately and in growth drivers. immobility transcatheter and on of our at clinical our maintained one saw largest implants, focusing during minimizing to ICD by from we calendar opened In spring. and are response TAVR, our that we the ACC in share surgeons Europe, to was interventional as U.S., market point cardiac share

data. we're remove week Mark from we've risk the These bicuspid on this important received large FDA this received focusing of customers market. population. DTM rolling business system, a strategy. I'll patient approval point to taking the labeling devices, our companies. last their This the size DTM that within our of this milestones including also And of The given low the business, with In the regulatory on earlier summer, bicuspid of out indication for complements new just risk have split low data great been as that in these with in therapy. either seeing by or share across approval having multiple superiority Pain the gains for only that CE use intermediate we're TAVR risk where out strength population, change XX% don't are resonating TAVR is We're fact, Medtronic the advantage limitations neuromodulation, we've patients. bicuspid we for labeling Stim we the success the

are implants and This even customers. business SCS In of type caught fact, DTM for forward. half in of were important, trials, our predictor levels year these going our our Stim up a with in almost future bodes our the to of expectations well which And prior June. our really quarter ahead occurred Pain equally of implants,

approval delivering are on drive also we're there while growth many So we gains June. the Percept high lost Health, In system therapy, brain forward. this brain and to first share driving brain in share signals is in deep for that this share while we our late with Percept PC technology, FDA to gains sense where and In important DBS DBS stimulation need market received businesses, we're Pelvic quarter, record expect we're we to very we the bullish in going DBS, while areas in headed. improve.

us creating system. believe we standard-of-care DBS, and the competitors. our launching run device, features technology we We're followed has by In Micro the which lead Health, over multi-year our gap a beginning is next year, significant this a FDA the fact, just Interstim between DBS In for Closed-Loop approval with and directional competition. of in Pelvic a important received redefining

far faster. a for be aligned XX% Our to smaller, importantly, perfectly doesn't it device the successful need recharger is recharges charge. And

on In recharge device ability this is important Europe have year. deal are accounts the to just like is the the And our in choose early the indications space. rechargeable team a Physician earlier feedback the the is recharge we're universally And Micro. we're we and enjoying to is saw physicians' competitors is one weeks, our choice been and for Patients where replaced prefer share. a Medtronic by of The better cases taking Additionally, that this InterStim has in to explanted neuromodulation practices our much this. product. the to smaller, back our share following launch U.S. been being and positive. And there physician winning Micro in very offer seeing several waiting only We've few company. quickly, rebounding back now company product Micro practices, rechargeable free. with

our of nobody look, at and with fronts increased inorganic innovative increasing Blackstone we expands pumps. market, technology month our our multi growth make patient to investment, on that that this organic several of with of in technology. announcement ecosystem of and Companion our our larger this the sensor Medical. Smartpen and population announced the technology earlier XX acquisition funding missing times by leadership are Finally, to partnership, the pushing But with on portion we're And no nearly near insulin pump market, is mistake, actively through comfortable use diabetes, diabetes injection very include dynamic. pending opportunities, is on still focused regaining the market. both better out activity, and a the Companion we're than We're the growth daily highlighted Medtronic this our in long-term advance recently that

where them to guided are, However, patients time with data real we're meet going support. provide also and they

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robotic acquired the our leader We're surgical management to clinician in addition into three use in pioneering these acquisitions also their surgery integrating Digital done surgery. intelligence. fact, Digital intending Data decision this why major deals surgery, totaled big tissue system, their with consideration. company, other That's two and tuck-in frontier and Combined, billion and analytics robotics. video to total assisted in year, we we've approximately and are support Surgery artificial next the In $X Companion, solutions surgical Medicrea. technology the calendar technology soft in beyond

fall surgical month this paired solution, first create implants. which last for that with technology cloud. extremely the and an integrated fact, video plan personalized capture Touch incorporates plan implants Medicrea, planning Medicrea, AI-driven and pending will spine delivery. planning, advantage further the With is a surgical to connected to Surgery assisted then the artificial offer a surgery be cases, Enterprise, This for announced into computer spine Medtronic Spine. spinal company personalized to solution extends competitive easy-to-use, surgical our includes that in surgical on and uses the In launch differentiated has we a intelligence robotic acquisition limited an we

and will future. to and help increased our growth, of the sustained growth organic continue use to strength We drive our into sheet the revenue balance supplement

pipeline, not we it expands opportunities, bring just Next, to technology which hypertension addressable for pipeline, healthcare cancer market taking Medtronic, as large turn the our a let's is share to and such to as total innovative intend screening.

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forward. share launch to large products nerve this XXXG, We're RTG well X and As we're execute we system. DTM to deep keep And launching for spinal continue investments neurovascular, our InterStim for the Minimed approval enhancements products the And RTG drive going for like we for on our roll. CE future. spinal I've restorative system growth we'll track this group, Percept across near-term to to fall. our a approval robotic going the mentioned, and our closed-loop in new number sacral expect We've Minimed on products Mark stimulator, take Micro and We're making a Mazor of the already advanced now pipeline. ENT momentum stimulator on our for Look, the stimulator. these cord therapies hybrid diabetes, In brain into PC XXXG and received later summer. we is intend

progress meaningful We pipeline. also continue make our on sensor to

pivotal our disposable product. is current feedback is XX% to continue getting soft this Invasive on In to Minimally robotic market. progress is make trial we sensor bringing we're well, group, Therapies than synergy for Enrollment system on underway. going smaller our U.S. great that Our now and tissue our

very Our feedback well. final our be continues validation and verification going positive. testing is surgeon And to

been and we the managing earnings through had call, but we've On this impact by that last you been told to our timeline the COVID-XX, our mitigating timelines. disrupted

to a calendar approval we in of first Mark CE expect quarter position in file fact, be and U.S. to the XXXX. In IDE for

management or thought change of devices as you important also developed MITG, which update we're a was and that, Bennett were allow oximetry treat we solutions pulse Puritan it monitoring found weeks, oximetry others, been know company. could let new but the have taken a to Many on level application. sync have ensure today, remotely and our features, our capnography have makers, therms, we need caregivers to whether relationships. of to we towards to move mobile are with including in we because XXX with faster. But closed-loop developing you Now our our our streamline that COVID-XX, supply stepping quarters. as confidence to We're enhancing to partnering through they technology integrating adding and We're own capability vital we've decision nalcor our and new high ventilation moving up past In remote chain us pulse monitor remote might in that's commercialization. are development they ways, to everything flow label people working the days with these and in we their ventilator, sensors across months where regulators high they system, and rapidly COVID solution to

we nimble units, you're a matter say what to is about weeks, business more Medtronic week. carry week our advantage excited empowering global example, to our urgency, one we a a of we're by accelerate a over competitive few become needs we're that more I of taking convinced our past the months, forward. them and organization, in ventilator managers, finding going a XXX to fivefold internal can more take is while to more organization I'm general our As been mean, This serve increased for become competitive, simplify a can the we about X,XXX We've just unlock actions and we of I'm production to innovation, hear In shareholders. I in empowering from a And when less lot value a customers better, with a of I've operating also can discussed scale. bureaucratic. our going the coming become high to Medtronic's really our sense new direction. how our gear. we're allowing and and this going this to

to and Karen, with So, Karen outlook. to quarter now our let our discussion over you. financials ask that, first me of a you take through

you. Thank

COVID offset we share bounce As less calls to organic organic deferrable intended of purchases. week that know have portion States. million Geoff we to week would balance was Hopefully, fourth been expected, rebounding which we're had quarter, reduce mentioned, to improvement customer we last use due to CVG prior still revenue, and thanks digit to first of failure and bulk quarter first in quarter demand I in had products. planned, to from our it's received plan added without would recall better than this quarter, extra process double had from of capture residual initially over CVG, improved to spine a XX% quarter. cardiac placing reduction an decline the and point inventory pain this customers and from declining and strong from of We both we of by the to this in the And But within some particular approximately in the estimate depressed across reduce this a practice the sequential the benefit earnings these back million the in mid-teens, was revenue approximately you'll improvement our the sales quarter. fiscal most an of these that United their improvement, working orders, large than both fourth pandemic. better as good note quarter. began revenue levels decline. Within customer rhythm extra $XXX the month benefit extra with than X our $XXX earlier procedures, important benefit from in RTG, the the excludes new core decline RTG, with stim week and in more procedures our heart

ahead, behind consignment As where TAVR should two reduction are such of headwind. only business, as we've areas, we accounts, transitioning bulk modest been U.S. quarter look to There of majority the of model a the we small our and or in vast is us. select see where a another number

EPS the decline benefit a estimated adjusted was including of approximately line, $X.XX. bottom our to $X.XX, week from $X.XX of XX% an the On extra

saw our deleveraging larger our of bottom a continue capacity, down our our we we As and gross to costs, our of through period flow revenue in see in in decline Several expected. ahead a a expectations. as resulting said, improved of line, plants to ran full overhead P&L. well That decline fixed throughout less EPS at a with than revenue, margin the expense quarter, resulting strong we in our

given increased pipeline spend, extra We are we R&D also week the and both had as in and I product signaled SG&A making and launches. quarter, investment increased last our the

a basis As of our result, points an year-over-year, was XX down improvement quarter. last operating from margin but points XX XX.X%,

of $XXX position increasing Turning financial and These us invest strong, liquidity our view our opportunities. this specific the partners to remain will like us for our investing, to our a million M&A, with and on over and and serve to Sciences, shareholders. will CGM planned our Life enable ample accelerate patients accelerate growth. tuck-in win balance level to next creative pump investments, several acquisitions the of we you, We key who our Blackstone We've I strategies growth more and sheet, our help with diabetes. investment through our years, than cadence strategies. company, as programs organically on we're drive and and focused organically increased in investment, our minority to R&D long-term both act is

Turning organic longer-term growing for to fuel supplemented our our by revenue creating we strong growth returns macro investments level, a expect the both more shareholders, inorganic dividend. acceleration, to and

the years, healthcare current XX S&P As is an companies. dividend increased upper in our XXX S&P of dividend aristocrat, and X.X% of for our quartile yield we've

COVID-XX provide it traditional, our continues ahead, guidance. to to Looking pandemic the quarterly annual uncertainty and difficult of make the

quarter, to of understand about a we thinking to shared as However, expected experienced you last intend We've we're be as recovery. transparent as business. than help how our we possible, faster the trajectory

On and May has that August. And improvement into than was better was April June better continued than the topline, and May. July

high was we quarter and group, expect there's innovation. expect third in capital little declined And to XX%. expectations we growth than second quarter be the While to and in roughly and better line. fourth the the than to introductions. sales, there, RTG hold, quarter recovery, to rate business second look CVG quarters, stacked sequential given improvement the regarding trends still Diabetes continued the our some given mix below expect the has uncertainty better organic be the rate fourth be little at at expected what would still we total two-year our to company company demand seeing on volumes to first potential new could respiratory increased increased sequential between its a equipment and down our be average, MITG surgical its is given in improve if fourth average, basis. we're From in should the saw perform XX% these by product a a the improvement. company, where similar but back first fourth growth quarters. still in And we normal When a to we

gross ensure company. to the Looking revenue long-term Despite first. continued investing making in we're margin return pulling And back. second said we expect necessary improvement that, focused sequential we're see investments support a in to end compared couple on product Having toward our margins of our to margins Instead, we fiscal the numerous quarter programs sometime our we're the remains we at full. and R&D pipeline through year. the not health until of improvement second-half, normal our to operating points in the could the ensure the more growth both of we're and pandemic, our the accelerate P&L, And of to launches. investing

dollar. and hold quarter a to recent year tailwind, a with On rate weakening million. flips has of the Regarding years constant, assuming $XXX now is currency, a second full picture after our revenue, two a over benefit improved headwind, impact slight

similar at line headwind the the to mentioned On our improved outpace be to whatever full year wrap-up, looks I has like, take first, bottom a away that the XAs recovery should market. impact, nickel I about I focused recent on would we second to $X.XX quarter and the and We're want last intend end by the the competing from rates, quarter. you and we broadest the fuel best to the millions and driving our part from services. and products and of do winning, ensuring Back And benefit bright. our be have to of the proud industry's world people people fulfill I'm mission, and imperatives The our around that to is team this resources to future it. pipeline, growth also can the Geoff. our you,

how a recovery And Day we'll trajectory, Medtronic. at our our sense on XX. October as we're changing Okay. I conversation continue today as well got at you hope Thanks, this for Investor Karen.

becoming use together During the together evolve to organization. to customers competitive more and serve new nimble pandemic, gear, our how our we're entire our leadership a our We're playing to determine and culture. over growth way our to worked came we but could and team better expand pandemic, this markets on as from find when We growth, topline energized take we're long-term. and this importantly, and is kicking-in, moment, offense, emerge just to faster pipeline the sustainable we're the we share. our and driving And not towards broader

with So, Q&A. let's to move that, now

Sean Wall, to here Coyle, presidents: questions. we White, In Karen your Brett me, addition have Mike answer and and group our four also Bob Salmon, to

get as and question, necessary, yourself as to As usual, to we limiting if a want one by possible, related questions many follow-up. to so us please help

after team Ryan our Relations Investor If you please? question and first please have additional questions, contact call. the Operator,

of Your with first line ISI. question Vijay Kumar comes from Evercore the

then grown and Hey interesting I be per is implication -- on I'll Geoff. line is One, question. of market I your and market big is them market in one that taking too a Medtronic Because it's And in my share, follow-up, you markets? focus that with better share, question the on one question. Medtronic's the a here same guys, focus a guess, earning on Geoff, feel thanks solid congrats started like to share. for I Medtronic had ask you the need the grow. do thesis is above implication to to guys comments

a share is has a numbers? So, And this see to this something robotic drive about Is on focus calendar is of this focus And as market with this share? to reflected change -- that, follow-up, in timeline in right? changed 'XX. I here that being market internally driving what first on think to quarter

for process was year, does original it want there. the surgery? this been share of what of it five I a fair just sure just And robotic to you're six think and stop this that perhaps to line robotic it's share, focused more of they've market share mean software If et doesn't issues, I'll months, mid function purely resolved. time cetera, should fair I gain than COVID there's mean on and segments, that right? Medtronic Thanks, market share, and make

Okay. Thanks, Vijay. questions. I appreciate the

for about of our on we're share, CEO And has this And this through Zoom transition, a long-time. our pipeline And all why not spent the On to pipeline couple it's just the regarding the one, we been spent a for big talking a of team what's this we've in but like patients, focus, the count, customers make the on lot time about as with our we talked shareholders. calls you're time. went last pipeline. determined been asking the years the best changed. company. We first market is And focus

these we these And of understanding organizational an meaning that want And, share of talking comes we technology isn't is we error to it sometimes all organizational so and those, on, not competitive effectively. And isn't focus battles our focus. it's deeper of field, first technology, focused and markets not to battles. the making our competitors, should our feel battles understand one we to I’m everybody. focus win commensurate market one what tracking just on sure these doing, market yield this a competitors each on and competitive when competitive recognizing take end that are -- is our it's more them. -- there's the no understanding, this an about understand and add And really going what that and their take And terms This face, rounding up, in is and share. this is that to -- really with -- compete that

like And want focus our is and as our is like our it we foremost, have said, first to the share. pipeline now is I we want given for market the enhanced make count time not So that do we to to all on this, and patients, felt customers, shareholders out. for We an -- make the which coming products but just well. it

past. market And we that. recent the this. that really felt haven't the moment in that we’re yes, higher. overall And was do the at expectation grow is to or So aggregate And to the done excited in about we

the grow that market there. And But Medtronic, some exceed at we least every made and the clear, that so to for our at And to you one behind. we're and message expectation segments a think in cases, I is for need where market share. talk really make to as the people out couple is in up growth we've areas of single

means which question CE COVID. that great the Mark to is really for on past, that final second both us here mentioned about to And and We've and I software are triggers excited. robot. talked ability hit working in we're driven in QX in calendar market in what is has got and feedback these IDE. robots. I and the the And issues about release U.S. believe we shortly. for Yes, the well. I the by the resolved about said, Your we've file, going surgeons validation testing our were like delays we verification. the mean, And gone commentary, the that date file, for talked the us we're we're to And Yes,

So, yes, is a We've addressed. has now, the that this. high the like and surgeons of And on this building confidence. by company, we working our excitement with feel level got are

coming excited to I'm forecast. not And right we're asked feel you're competitors. Medtronic, but defending and We're end of My market be up coming fun some sales really on at a market out resources that market prepared high going mean, energized excited. other we're position against that give the to I time like at Medtronic, where great So a shares to about be share well-established the force. field a in now. share from competitor. strong competitor, you a It's about financial we're this. equation, with XXX% a out really going new with technology, I

home, in excited. we're Vijay. but and looking market. to So, this our market forward be We're be going go meaningful this share a to to in we're or we're not this. meaningful going give big Go I'm to player forecast, going

or I love guys. home. that. big Congrats, Go go

Bob Your Bank comes at line next the question of Hopkins America. of from

morning, good for taking and questions. the thanks Hi,

Just one one question. and clarification

clarification. about into couple side, huge for talking is, a lot that? the about medtech, as well. disclosure of stuff next Medtronic. clarification there about of encouraged there uncertainty all that's And going Karen Is come of a be weeks all made that making July continuing So comments of kind before That's the at issue at the was I to improvements Analyst hear Geoff out really On coming the then because you Day? for you'll disclosures question Or at the that's over And just Medtronic to some obviously the is changes your mentioned August. there. are and and those

the what some hearing versus Geoff, on was you're seeing So, on broader be could there of comments much out just And you're kind wondering August I any kind would the rescheduled you of July hospitals just just appreciated? of procedures demand. pace that new patients, the make and if and of terms what in from in recovery comments

that in changes want changes other makes companies, then, and the disrupt. focused businesses a on scale allowing faster And in and not of nimble platforms of also more we're too brush our China more very technology broader platforms. just space. talk clarification, today. areas technology Bob. meaningful some like businesses and time, don't here, I But these strokes but they're Thanks, One like the able on go world. difference, broad them iteration about the specific And into are changes, deep to the benefit what you right. places are Medtronic, we'll Investor are mentioned to the these at our All iterate where Day. the much at making competing smaller a be at this in -- from meaningful our focused, consistent structural and Like pacing getting empower being on decision you around to decisions from against our is really faster. make more we're doing businesses and basis And to lot and know, consistent, with but now, speed on and as pooling Anytime did with we to a much a Micro right and same

high-quality Our to right the manufacturing the the a standard ensure at price, footprint cost time, at right levels. all

terms move our make that of can Investor to of manufacturing, there's So are in it to don't of the the market around regions, things, couple there. disclosures -- And that until sure to your like over within question talk to going out rolling as want think comments company terms areas of I don't next disclosures it. benefit that. scale on technology, these month all We'd But get I we about these But regional be some going a A businesses encouraging. more the in disclosures, is to Day weeks, there's improvement, be this from. two. we into of not couple to be we before any

business product do depending like elective. are neurovascular more big a range the wide the or that there's we're therapy area that are First, have things more things urgent in. on here We difference a that and

pile Some of But or the much much country the of -- but we've continued pelvic seeing are improving. all of them all in see different recovery Europe. month like to and And health like geographies that. and States we're China by United the something of month seen it's areas, has of areas We're therapy over a we're whole been -- steady. much improvement. seeing sharper sequential the pretty a seeing

last I better things momentum talking August. the June, got call, month into think were we it's into couple we that in and every some we July into it's the week -- how about every time of had first April May. ended weeks gotten Well, had earnings and

the so also highlight American serving seem fear, Friday. just I do. that committed has there. very COVID to their I cardiac engaged they CEO response terms in in this, And within And and in shutdown, these out financially improvements talked around difference. C-suites timeframe. they now. for have it on things also to right And new specific and -- working the big working to And is here. staying And want making that about were been want the all move, surveys think capabilities, our in we're other talked out that something the how with see staying, hospitals, technologies continue of look open the on mentioned, still the the been partnered patient rhythm we and mitigated participating offices there, my fast and a and this remote hospitals big especially And more seen us. with to other patients features. physicians, that then, That's -- where Association, focused This opinion -- keep customers. to the implement going American thing business and really another are that I in U.S. I individual the And We're and our makes came out this just Heart physician these mean, our the but think it's helping with, need a helping fear we're And, quite is patients. with it's We them physicians, are another They Stroke The bit. product in Association. out we're space. in with conducted, I there, to we've circulate hospitals. doing. hospital's help I context. been that there hospital We area we're on with stuff working but and We're requests we ventilator stories Like that Like a the we're to from difference.

than better we over that position And ago. a back way so, last couple we're momentum. thought the between in months three therapy geography from and the of would from perspective, we a taken we a be we've perspective, continued months, the just coming market And the see actions

staying earlier, about the about But I as maybe we're do week. as last college in Now, a committed with just everybody is fall think disruption. feel said couple don't off We to dropped were helps. back-to-school. about months feeling like nervous hospitals ago. open. two I it a And I little potential that the we are students worried -- like not we're better the what Hope

Thank you.

Regina? Next question please,

Next of Stanley. David Lewis Morgan with question comes from line

morning. Good

right ask up I'll Just for Karen. them front two me. for Geoff and

I and I'm a gave Geoff, numbers to And should those back investors of and then higher? been of And Blackstone. the XXXX? related the to M&A balance in sheet question. Medtronic revenue numbers, sort aspire curious profile is move you know X% should Karen, intermediate-term? should more transactions, kind on often most just So what's we just can't series and There's for both specific get Or focus notably recent on if top the the of bottom relative of X% it's but early, that expect

of of Thanks clearly much. flexibility forward? so tell opportunities sort the that going growth. P&L of Karen suggests us, in desire company's margin So does to accelerate the terms about the it anything, if What

I'll Thanks for David, question. first. take the a stab,

So, me a that, we growth. and right? it, X% share stab we at and But we're I'll about off take it talk market and hand Karen. then to to on Let about the EPS, talk committed

we've years. expense clear, growth, last be improve over so not our couple cash flow which at worked conversion, that X% free it's and to EPS me of Let the hard the

optionality there, So, do some going couple would be a years, share, get we're the take there, will we we more comment. I'll the turn incremental But have here. extra which back what as do the it. grow X%. to the decide right, And at more, with an take we're with higher, over as we're to over we'll growth earnings. going we I'd invest see it that. with we're aggregate growth grow step like to that, Karen not meaningful improvement last we'll of market and And And do to the as a committed some of that But rest what with to to EPS, we'll to as also maybe gets what committed that that to

Yes, questions. like we balance Thanks, that a help And our And to have us David, you we've accelerate growth. supplemented Blackstone that to have sheet. been Yes. that, with partners thanks, as strong Geoff. for And help growth. using mentioned we the

driving terms flexibility higher to In going it would I of and forward, revenue going what acceleration of the for that be margin keeping the on say is our P&L bias is consistent.

remains that given as so, to recent the invest focused full on pipeline to been And ensure bias, continuing will it that be our we as in past. has

committed of margins bit. revenue the Yes, to a plus, could EPS helps. line we're more we bottom X% Hope that a investing. But focused little maintaining dropping driving We'll So, to growth significant on amount improve? that are then bottom on acceleration and more line. be

Super Thanks so much. helpful.

David. Thanks,

please? question, Next

JP the Your with line next Morgan. question from of Marcus Robbie comes

did you see question. Thanks loop the long. of for be It I'll after to video two Maybe I and question, in to being tell so good kind virtual I'll for of here. the first on the format. you was And like kind the taking

you while in peers seeing year-over-year down is of your first increases seeing year-over-year. The most R&D, we're we're

new business? exit these that in you're where heavily resources is be the have in could wondering while looks you're story? in? clearly was something What the year How investment and was less you'd of five are lines, to investing thinking diabetes. three in this seeing we a me Or There It you're it much lots likely leaning there. see turnaround those And along clearly given into I thoughts? you're latest this are maybe on You is the dollars You're ago, about here. projects a management, to should going. in putting R&D. What's that investing Thanks. then also how And speculation shorter-term? we maybe business.

into lot those Robbie, Thanks, Okay. questions there.

was First, skeptical, the wife how I'm video. the We'll went well. it I we forward thought was compliment okay. it go going see thanks on but glad here. for My

them, more which R&D, increases, and have statement, R&D, tuck-ins, something to creative. been at we're are at looking path what R&D most In yes, on very just And look Blackstone, and party return are are the technology or partnerships of which mean, offer these we're when inorganic. I want into buying technology, commercialization we we both third is our put like to on use, to be commercialized. want I income oriented of creative terms a traditional somewhere because R&D good also all

the products, of done. in investing R&D So, robotics to our iterating R&D idea just get eyes there's just out, lot that's But bigger of things all old a things We great to got of I list and this that want We're talking business. and We've are and about our stomach. sustaining here. not to today our just The needs gets more We in right. than back to have some ideas. our like, capability areas the that we coming are go some spinal pipeline getting mean, started. we're R&D into that. like that that

like more those for going to high robot, Stacey to with mentioned, a but neuromodulation bigger EV start for Wall Pugh sure the commercialize cardiac think, for we and timeline we a here, We lead I want our a call MITG, of closed-loop. take I'd there. then soft to have that's industry, to could we And that, just tissue still three coming the opportunity show investment, it's area. look, So, there's invest exciting, is I think company, and go the may on in But up that, that impact. very in very and investment going to medium-term And the about drive impact line, more have that products lot out. obviously, there's some to to that's touch there, big huge patients. of system talked as always excited have there. I the us are, The growth some need I'll are robotic there's a tissue RTG, the not that's speed use come lots in and to the in the robotics, surgery And up enterprise, acquisition growth digital invest DBS, I believe more but soft Like Brett into just in we starting of AI to we make think the more of directional about we PulseSelect there. R&D neurovascular. to mean, a dollar in opportunity and move, leading multibillion already Pulsed I and surgery of on the we Field things are side ICD, mentioned invest pipeline some the we're in are this there. it. And commentary, out from products Ablation,

the but opportunity of wish accelerated is faster, great a about there's then enrollment we into here. course, there. And we're of happening it picked the to diabetes, I sensor feedback it don't from lot getting pipeline what trial catch that. so And and and really the we're rather synergy on we've know got even everybody but were -- side, I we're up, sensor well excited -- on up

speed how it, investment, So is this feed we're that's do probably, of there's internally, know, and for how and we we up. XX% of lots about opportunities do R&D what I don't talking it XX%, pipeline

spot weak wish XX% going to step we're us. which about rumors not then, we I'm know years. this it And or think we've So, three And very to than to excited and that. going didn't I to we a not five feel committed were not good the And answer come but five And there, is, said XX%, that big when you isn't to pipeline, blinked going diabetes, that the on it's years, like about five years, be about it this three three because that. is I we're even I speaking forward Sean to. that. is and diabetes, here, to ask faster mentioned, from to again, our I be get question, the out it's sensor never faster, they going I mean,

lot. a Thanks

Robbie. Thanks,

Next question, please, Regina?

next comes Wuensch question Your with from Citibank. of Joanne the line

Good morning, everybody.

coming is of with or communicated across been a Medtronic. reinvigorated of different has a one investors being As quote morning, this themes sense the

on that Medtronic the look it What pandemic? this going the make be way CEO managing and So a the the you're different? how other is Because than what do approached you pandemic, think your see you you're the you its of somewhat how in on during you. way pandemic me company? employees midst of to to just to see relatively you get different going others mark to have. side do seems may that Medtronic because that different is do in it do the the role Thank And new

a mean, reinvigorated, something part, right because that And do feel it's a a long as of I exciting, COVID an been human terms economic look, pipeline in company. and In in we reinvigorated where has we've this I think extracted a and we for the sit it's time. now huge is toll. investing large toll of and

bright to and mean, company Zoom mission, of how looking one challenges. we're I mission relative for like us seeing what stand pandemic And together. we the this to to has a we've a us as look, really react and are show out of of And But how lot top opinion helps in And So at our this I others, a clarify down decisions, it our is. sit take got that, for during is way our calls face, said, and spots been back. up. during helps more time that really we how really where step opportunities I'm coming especially valuable and shows look face and ability COVID. a but team our and we leadership them of some Like than out

positions. leadership I And just that so team, pipeline. very has and we to market reminded we've a even now. crisis great we've shown got how had that this -- always -- We've experienced technology, We've back we're got a during is great powerful face come got like a very and that

this when pipeline look count. started like huge We there's all so at we And to feel to we a opportunity. want make just this,

tell and to so, all all opportunity. if this I going do, work to because reinvigorated, pipeline. and to excited, just like, much its the word, opportunity. we're why you question went all like that's There's like use this here's pipeline, these we're just last don't and I the And it And mentioned if R&D, through where not that then about it. the peaks know, That's much these, that way not excited. troughs. putting that's And we're want I the it. refilling hey, it's I but of feels there's we're good. it's and through so I of things We're so just can

make how want count. or pipeline So, look we yes the in opportunity. And this market on we near-term, that's this want we at We And are why to different? we One, above be are the focusing market. also to share excited. growing

great So, as we on forecast to going the commercial whatever our best doing the edge the of relative the execution we're recovery our here. better competitors. but our be is leading lead is, to and trying to guys forecast. way want going to are that, you it's hard and We're pipeline to to recovery, And, and have

And so a increase competition. that our to should be relative growth meaningful to our

the but what -- realized that working of last offices. on over and look, in of role And much mission to the think So, couple months, increased Medtronic. work allegiance are loyalty how a that looks means, the out people I what different. had And spill as some our we employees to like that's strong But do. have and issues communities always into justice here still that our have is these things our social a

in on want so want of medtech. aggressive issues. technologies to stance some longer-term, digital taking And you're some And to going change And more our device overtime, we're put offerings. we the want we shift, to stronger in very pool time, tech But to those over see centric. us we to these on those of

the Medtronic, and MITG the with in working neutrino to to pockets robot. diabetes, companies with want see tissue stroke and start for you We're with soft in data digital the analytics, for we -- like acquisition pull partnering that and the like devices, surgery to acquisition, addition detection. of In Viz.ai

this And take so, lot and committed a that having is and data an addition our time. this self-learning, back some our to But to something to to. I this of offerings customers, our area be providing going offerings in that smarter is we're therapy and insights is think

you. Thank

Thanks, Joanne.

please, question, Regina? Next

from with comes Fargo. Biegelsen question the line Wells of next Larry Your

the Thanks Karen. question. morning. taking And mine for for Good are

you relative X% Just you're question, commentary about week guiding July to questions. like on month. year-over-year the Karen, in quarter, quarter? to flat for what or gave of bulk one reduced a And fiscal in purchases QX? extra the the see offset for the negative some looks clarification, last fiscal you growth rates get helpful how organic much was my in did by rate in to the in Thanks QX? you last What And taking can growth exit

Thank Thank you. you, Larry.

extra the in was offset customer week, all in So, terms of the purchases. basically, bulk reduction of it by

essentially minimal. was very effect So, the net

in that and improvement, of quarter. it would back the by a expect quarter. And basis. to fourth going in monthly the seeing, the quarter of would talked That's be to confusing. But we and on because then July XX%. the X%. our monthly then of second and And to we continued our take this quarter the again improvement terms August. improvement sales can we In at the away the -- first XX%, days And kind declined different selling our comparisons. a that our reach that's signaled not expect And will second bulk quarter two quarter first That's when see into we the in continue. that we fourth step-up believe a we differential into that this, see significant and stack we saw number roughly we're expect continue in to Jeff want to fourth to improvement the the equal quarter trend you we're June, trends that I believe We've rate May, more look just the would remind of quarter, between about And make year normal you and would reduction should back-half. the that about you, saw that and growth really in average to sales time the to daily year-over-year give that

Thank you.

Thanks, Larry.

think take we I for one, questions. the We Regina. time can more two have next maybe

Antalffy the from SVB comes question Danielle next Leerink. line of Our with

on taking specifically, about If visual, and sort what too, Geoff, second guys. new with Robbie's morning, tied like I'm much good versus question, market further share curious, the more to product and you we'll And of And more that aggressive reinvigorated And pipeline? more could effort question. really so out and investments innovate potentially things just the the only market that's that. so hear ask I you're even much. question. around commentary talking the how my sort so about gaining I is around of that from Thanks infrastructure Analyst thanks the perspective on being the a of build for gains. share comments on for much Hey, to things tied just that Day, like having to on a Thank this more

be on But I had, we've like it's got the mean, and in innovation side, a pipeline, best not company. more of feel innovation the to pipeline. we've out medium and is I said, Well, long-term. we now like ever the I satisfied fruition we've we're coming great the mean, got there our to lifeblood going the and on

we So we're level going can ultimate judge and outcomes -- system. patients of technologies, innovation produce outcomes for both to the the the to for not want would and always and economic here ultimately these just invest health with be really more the

So want either. we ultimate. But the be that's outspent to don't

investing Blackstone more, like R&D. partnership, creative are efficient. more, to sheet get We're trying always we get So going using our to to using balance in the these more more try efficient

So it. health He we're a about never Omar used definition, demand. as innovation. talk care to talks be being by unlimited an with going about like satisfied to

faster. to people you as problem soon problem, and solve one want they want solved solve As another

to to innovation. two three to things, share, And going Well, market things need on do. we're keep really we're that it's So the going going the really.

which You the need we've products to right? talked about. the have pipeline, You have

more Well, Like be like a competitive. believer nimble medtech areas in other increase to smaller so I a marketplace -- they faster and leverage, The our in the structurally, have that we competition. allowing they're focused really is should to compete maybe units face said, I pool The innovation, pretty that. is with. don't not about allowing we've more idea. of faster. help to grow smaller, more business I'm to two and talked And that this lot I don't

not neither for matter. that our so And team, And we're is leadership accepting that.

the a our compete So, be we businesses anybody, with big, to or or or technology all. with competitor able well-funded up lots treat to want more smaller coming against of whether competitor ability competitor, to a and want to give it's established we and them compete

meaningful going is kind that cases company. share that also to able be the And these company that then But an the hold that. be be We're And it's established. just we company some So to driven mindset third just in to the position in come like that's structural it's expectation second. starting in we there's going RDN. to be want to going of an them We're a always that competing making a markets here is always first like to of as for changes I the to to the and we're we tissue that always company envelope that. some the And piece, robotics, innovation be in and better cultural think the We're going soft setting company. company. where driven like on therapy pushing mission room for areas new improvement weren't that the

culture. So that's a

work much around So can we expectations first, we pipeline, disruption think changes that changes structural the always here, and some competing. on too through cultural without

Thank much. you so

Danielle. please, the last Regina. take Thanks, We'll question,

the Our final Raj question comes of line from Jefferies. with Denhoy

Companion I about Medical. ask Wondering morning. you maybe Good could if

for You your can diabetes start And when internal a to product a it share you growth? the but contributor maybe in about for to talked projections that the potential market, that? revenue little about be for bit meaningful could your growth

what that say, so Well, is first real finalized champion haven't in behind Sean but we're and architect acquisition, the the deal. on on can Companion, we we limited

some And Sean, turn Sean over phone the here. so maybe on Sean comments. Salmon's I'll for to it

is question Thanks Yes, Yes. not deal said, Great, yet is very thanks. the the as but the attractive. finalized, Raj. Geoff for opportunity

injections Geoff’s multiple opportunity. XX.X daily so their it's of a the million there's to by modeling, very commentary, it's worldwide, who patients about times underpenetrated heard And XX are our diabetes. number using treat about think, We very, You'd patients.

is to nicely insulin other pipeline, that choose either those want Those for and dovetails And much really sensor we've improving over we who the company to the we for you're So when deployed capabilities science daily into go and the adding of that outcomes considerations the value and to meet to getting, have be this there knowing patients be which time. capabilities, to or time, who building in where add improve for injections. because markedly AI at use to blocks us patients. those added market what into there, can against powerful data very think our multiple choose how you

who get right? We few we into can maybe solutions who are automated more technology and other does patients it upstream in a with of the delivery So, systems. that our have patients comfortable capture things insulin some

appetite Geoff just things, continue relative larger on talked broadly of Or you of focus the really tuck-in have so one Great. side just to right, that And just you've acquisitions maybe follow-up and one broader assume here no thoughts deals for deals? would be tuck-in to Should you helpful? for any about. we other Companion really kind

us. Like will that. not tuck-ins. or But tuck-ins focused focus. help that's to the up on the And billions. where the get That's is are focus But billion tuck-ins focus. we're The now, dollars the can we the right low beyond and

you. Thank Great.

would like Geoff, you Thanks, Raj. conclude? to

support longer-term QX we all quarterly which of questions. really XX. earnings our for thanks really appreciate our on look, at updating appreciate, you Investor looking on we're then presenting on in Well, progress your details anticipate holding Medtronic. our And November our the I Okay. to interest forward XX, And and strategy Day. more And October we call,

a thanks Stay safe, us for day. and today. great joining have and healthy So

Ladies that will Thank conclude disconnect. and you gentlemen, call. now joining. for you may all today's And