Masimo (MASI) 7 Nov 232023 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Masimo's Third Quarter 2023 Earnings Conference Call. The company's press release is available at www.masimo.com. [Operator Instructions] I am pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

Thank you. Hello, everyone.

Chairman Chief Joe Financial are Vice and today and President Officer, me and Kiani; CEO, Executive Joining Micah Young. contain of fiscal will judgment, call forward-looking reflect which This management's including certain XXXX our year regarding expectations financial performance. statements, current

with and differ to results materially. projections SEC. discussed forecasts materially the that from are factors could our cause in differ that our are risks our they cause uncertainties detail periodic However, actual Risk could subject actual to results filings in to and

You will of Relations not this measures measures. will generally generally the of section We to Investor are GAAP. with refer find these financial include in these accepted our website. Also, or non-GAAP accounting calculated that certain call in accordance discussion principles a financial as

segment. will Therefore, will the noted financial indicator non-GAAP otherwise. Further, financial The these that performance believes the once consider the these the informed to these and pro such are increase referring recent of measures provide prior financial included with non-GAAP business of to our April investment the to and Management most the In these this operating In referencing our are investors unless again all including website. be assess measures results XX, better financial include results, ongoing of to will assesses in be measures of non-health primarily addition measures comparable as business. directly as information our United an on company non-GAAP should transparency Investors we measures supplementary order underlying our additional budget, today company's make in financial performance. and our the to GAAP XX-Q GAAP measures today, also management results. reports sees Form and release today, financial date to filed Sound results way be to measure statements and company's XX-K we care company's enable information business SEC, the presentation to evaluate with be performance basis, of which most on uses covering our acquisition to Reconciliation results reflect the a historical forma the same together financial earnings intended for decisions. measures within we the non-GAAP XXXX. will

quarterly the to within call addition the issued afternoon. I'll the In our release Relations will this covering Kiani. pass to we earnings we section Investor a today, supplement the posted now have earnings website content of be Joe to presentation

thank Masimo's and joining earnings Third call. for XXXX afternoon, Good for you Eli. us you, Quarter Thank

third gains and Our other customer contracts quarter hospitals guidance our solutions. business said, range performance record for a the for communicated half pulse away was installations. keeping to our in market by from highlighted and sensor second of the oximetry transition share level record of quarter a sensor pace care for utilization That is within conditions. health SET equipment with navigating our COVID and continued the new our was remains trend second slow have year. quarter, clear from the expectations of prior budget pressures This era Despite hospital below sequential the utilization is below last improvements

the conviction from data call. growth about sensor rate trend our more data we see pre-pandemic continue we the to in year these together for observations underlying our are the this care XXXX behavior beginning sensors, But utilization our contracting record and have date, will customer reinforces XXXX. health growth long-term to say to that our business. later Micah this with performance back we hospital gather on to to transitioning and As patterns of more to line are saw purchasing

to partially of facing to realize for uptake us. our of our a ask products is provide for results challenging on more remains key systems. components are environment the The our updates will to focus which growth consumer the our exciting offset strong an we helping hearables, share audio consumer third brands now rapid our On side, area premier continue hearables that new I for financial will audio Mike I and and in entertainment the review update detail opportunities home quarter XXXX guidance. and some on call, products later but in

Thank you, Joe.

of achieved non-GAAP third per the $XXX of share quarter, For we $X.XX. consolidated and earnings revenue million

the Our low and quarter at end our the guidance of the last range revenue with range was performance within third earnings end the the for high communicated quarter of range. at

For a X% our revenues reflecting Healthcare segment, third were $XXX year-over-year million, quarter decline.

driven level of was decline continues from the customer conversions. which to utilization, quarter, suppress last growth with new by lower sensor record As our

constrained the level. sales. addition, and elevated by our drivers second partners shipped impacted during hospitals quarter, at in the capital which OEM installations also backlog was line In quarter of We the over budgets with equipment XX,XXX new

we new we hospital quarter, our saw increase and purchasing of in patterns us part that trends. pre-pandemic are working rebound see to Further, expected, the inventory. customer headwinds, quarter leading slower have third normally sensor slower-than-expected a who for and returning in did sensor confidence is revenue in installations our in sequential near-term down these for a what equipment from orders guidance the from to remains conversions the During recovery been to due XX% business the slowest behavior our a dynamic pace reduce sensor This year. Despite customers pace Healthcare than seasonally of utilization. bolsters

comparisons, from we XXXX. back As to we line purchasing annual will we sensor health to trend to ship care resume updated from XXXX XXXX difficult growth for expect and our level believe our patterns saw the guidance past growth business the move

that to our take some informs minutes data a few additional share perspective. me Let

average our rebound and annual basis. are the see annual is XX%. today's hemodynamics the average and longer the years annual and growth belief gas our look Further, the the growth revenue consumables from you in total recent who and rate growth are XXXX for had results, line you is the As distortions XX%, respectively. with And our growth for from achievable. at customers, brain for and of growth ] makes to purchasing pre-COVID our on business XX% revenues XX%, tracking slides and line pre-COVID capnographyne performance healthy the our products rainbow our supports that frame when a This rate targeted with can back we rates well its XXXX, is rate our clearer step in longer-term long-term in inventories rate. previously elevated is year-to-date with COVID the for average monitoring time rate revenue From which trends growth on-trend together supplemental [ that growth seeing remains

customers reinforces our about cells record-breaking another in new continued third our converting that of contracts new reflect contracts Our trajectory. We sensor for long-term optimism the level growth These in include also strong our new market performance hospital gains. achieved customers share new quarter.

over In increased to up period prior fact, our the from and $X.X prior reach quarter sequentially third X% unrecognized XX% was billion. the contract year quarter revenues for the

For -- our overall nonhealth representing purchases A the of care care suffering were systems. segment, audio difficult currency nonhealth affecting year-over-year while on With is adversely million, high-end revenues environment constant third is more a nonhealth XXX% market macro basis. hearables conditions $XXX a XX% for has care for overall for realized momentum quarter offset systems. decline market consumer strong from by XX% environment, growth segment to on the now represents increased sales. high-end The and for helped partially category, year-over-year in we weighing macro again of the than our the which audio hearables negative positive discretionary

Now down moving P&L. the

business quarter care of of margin XX% and For XX% health nonhealth business. non-GAAP of the our consolidated includes gross third realized for XXXX, care our margins we gross XX%. This for

again by our gross As we saw mix. the costs fixed affected unfavorable sales in and were of segment second the lower and product impact deleveraging margins quarter, an overhead on

million the non-GAAP million prior year. versus our was $XX business, consolidated in profit our For $XX operating

year Despite positive in $X term. levels $X.XX high-growth partially share the and are year-over-year period. our in As expenses, quarter hospital per contracting performance-based sustainable the were from growth continued of benefits versus reducing realized decreased our categories offset earnings from for in profits ago lower diluted non-GAAP share And revenues including long decline signals compensation. the traction results, record by per operating our were third the over

In we control lower we offsetting expense with measures the implemented. XXXX partially addition, revenues are in have

guidance. to on financial provide I'd an update Now our XXXX like

of to to consolidated For care million and million the $XXX million. to revenue are Further, million million operating projecting to projecting and of of $XX fourth with to $XXX $X.XX. health of non-GAAP million are $XXX $XX we $XXX $XXX revenue million non-GAAP quarter, nonhealth of $XXX EPS we $X.XX care revenue profit million

to projecting are revenues consolidated billion $X.XXX billion. of For year, $X.XXX the we full

prior For segment, we million represents reduction our from billion, This $X.XXX $X.XXX constant which guidance year-over-year now headwinds. billion a to revenues currency a X% our projecting $X are includes basis. on currency X% to of of Healthcare

million X% full represents revenue $XXX year our which million reduced segment, demand. prior headwinds. year-over-year of million now This constant currency to our reduction includes from For now guidance a guidance the care fourth to X% reflect $XXX quarter incrementally nonhealth currency on basis. We've $X guidance revenue softer to is a

guidance sales in the fourth seasonal seen step-up quarter. reflects typically Our also range a

guidance We of lowering million. operating to compared are we now projecting $XXX $XXX prior million of are million midpoint, profit guidance the million non-GAAP At profit our operating $XXX to $XXX by costs. and increased which impact million from $X impact is a million headwinds from million $XX revenues, a incremental $X litigation $XX million, lower this currency -- a of impact comprised to from

$XX with cost reductions. offset partially to expect million We headwinds in these

profit operating represents a at Excluding reduction the the our currency revised our XX% guidance guidance prior incremental headwinds, from midpoint.

challenging Lastly, transition down believe to positive been although long-term our a for $X.XX. of of be our prior In year, to challenging year this about many year from our reasons we post-COVID guidance non-GAAP outlook. $X.XX, now business, are projecting challenging summary, we are to there $X.XX EPS has $X.XX

behavior the exciting track the last Over more success clearances about of customers record. Joe We've FDA X launches in that understanding product better have and we patterns. will upcoming last and gained and winning share the to the ordering new over transition a customer new consistent years, extend had of recent and potential quarter,

contracts market We hospitals believe a I'll record return transition is will new the to for pre-COVID year Our rising Joe. we back long-term back next a our rate trends. With Healthcare for call share segment more as complete visible win to monitoring we turn customer at targets as steadily patient that, the be growth to pace. in

Thank you, Micah.

in has Despite products year-to-date. utility long responsiveness achievements U.S., invasive last because U.S. again a needs index field mentioned, make the innovation the with also it this it that in is has available record prescribed. clear our new moderate ORI, to record parameter. these ORI ORI ICU been a innovative FDA difference. prior first driving Masimo fact quarter. and one unsurpassed for and where ability in built clearance great for analysis rainbow for high-value accounted over that U.S. for years provide and just is over in combination track prospects oxygenating is for over are us sustaining grow enables additional we in of intubation of a our parameter, just useful monitoring. difficult to received clinical involving of the that ORI has is that XX the and patient The example the intubation the reserve term. the truly wins currently not well-established of are extending when you technology fastest-growing our oxygen is of We're other and products, launching procedures. ORI stop is oxygen the the to our determining surgery. worldwide supplemental are for to our places excited A ORI As accomplishments past the about a contract of patients over of reserve to index hyperoxia. benefits has products products our through and sales to it I'm patient oxygen that create has noninvasive month great done avoid oxygen airway, to the useful detecting and attempt XX%

traction similar over we overseas, the for should as boost U.S. realize in which to time. revenues rainbow ORI expect We have

sensors. some of available, customers countries In typically our with accounts been rainbow have the many For LED ORI, LED health of the sensors introduced have U.S. X X LED X/X context, LED switched where SET for clearance our sensors have sensor. to the care U.S. our rainbow conjunction X sales. X we market rainbow our from In product global

We October received care were Both patients delivery expect cardiac Letco Anesthesiologists monitoring drive also delivery provide to have oxygen improve to our help proactively American models Halo, patient oxygen we enriched and clinicians for effectively. measurements, SpHb predictive Masimo on time at to more them the continuous clinical first care insights. our both Society well of prompt clinicians tools output solutions to precision and rainbow helping drive combined more in indication providers. telemonitoring Conference of sensor incredibly of revenues. Building pathways with ORI reactive to prediction decision the our Deterioration care designed and automation support with hospital transformation tools navigate decisions from platforms, will make AI-powered and and is by their care and informed clinical empowering episodic and

tools decision neurology support across a multitude including cardiovascular AI-powered clinical care helping are respiratory improve Our clinicians of care, health. and brain and disciplines, care

will hygiene and treatment, hand clinicians help infectious disease hemodynamics soon, Halo And care improved compliance. and

Consumer In Amazon STORK Baby and August both online launched Target, including Best our Health, monitor brick-and-mortar late we and in babylist.com. Buy, in retailers,

FDA countries In strong able telemonitoring, us and have WX consumer interest be telemonitoring, And year-end to WX telehealth audio, we in Denon by the for strong in in as patient quadruple clearance with a will offer hospital-to-home strategy. the In using improve to advance where been will of continue that to the hospital Airbus U.S. plans We for outlets to to programs in making and demand have our XXXX. are ramping seen home care WX into WX. wait XXX that of availability we we up head we continue believe the season. Pro see distribution holiday in

to The properties. accountable to want for victory, on efforts briefly Apple misappropriating intellectual ITC landmark validates ongoing our we Apple. over our comment the I Finally, unlawfully won hold decision

playing comments, as improve to a are today's to advances Just by innovate really we conclude to products ensuring able importantly, and that our that it protecting lives incentives compete level of work record new on superiority reflect give and and us the field. To sensor our the confidence customer stabilization growth health orders long-term care business. in hospital are products, the the which our encouraged wins, by for of mission trajectory

cost of but and We portfolio and healthy monitoring reducing they to new pursuing life, care open growing sites are business, of a to rapidly take that, remain and health can applications. With the mission to the dedicated and to questions. to our improve call noninvasive about patient products our just new we'll improve and contributions the people's have care. outcomes, not cost We make, the reduce excited of to potential Operator?

Your Rick ahead. [Operator Rick, please from question with go line comes Stifel. Wise Instructions] the of first

felt just spoke when And the the months order want that you're clear about be is talking inventories about month? that how mind, this us quarter the quarter? head talking see start from for And relative X you've me to -- Let last to where order I to into time you now perspective -- stabilization, starting in is that seen stabilization are you're the last it fourth throughout this you seeing. you to or as the now something or my something you're just ago. your

don't a they relationship Well, really though with we even this share good our inventory their have Rick, customers, us. with levels

add through we're as order And So is want seeing you what that? the consider do purchases. in increase to has we that continued stabilization sensor anything Micah, today. to

Yes.

at They're here it monitoring right So the closely. are trends patterns. of Rick, encouraging. The another points heading purchasing months got direction. in look very to we've been We've X data monitoring. been We've

direction. slope why recovery of we've heading back, we terms the and X the what the that of are a bit seen thought year. and lowering this are the through we've and first guidance returned in that quarter, steeper we're I of today trends recovery, right in for the But was think that's where weeks we a

are quarter. things the pre-COVID the recovering. that the pace stabilizing in of that seeing and that recovery with are It's We we at we utilization of to not looking expected kind were trend more last data things just

prior are range you're Why today this Is it right? orders? thoughtful hope you right? the in you about And feeling sure you the you in getting will it it new guidance the things, you're pickup you've Or low of range. and conservatively year because straightforward? of and it us giving why that that this Is -- we for end high being that know range Micah, now in just approach were the getting end I the how thought giving I'm should

Yes.

through mean, it's we've all, contract think that gained of things. multiple I a continues. market I and first strong share

encouraging. So that's

terms have equipment But installations strong the getting the with We in of on and haven't had cut still numbers those with contract, gains we've kept up. behind we're still on pace we installations move going more October, QX only but though, clarity said, as next we and at grow got in of year. The biggest best points we into also help right terms that we've in not We see, into data We've the QX, when but grow weekly to us had we the with the that I we are you X -- at we mentioned, of months range you got today like now like lot been last look those we we another you data is, guidance gave monitoring than could did time. a revenue trends. we've quarter. thing especially

data, have Now providing we're got QX. range a -- we that we another we've high believe we quarter into that of a as very confidence move back guidance to

have not to of the So the guidance us? place for for start frame Can you set up would us And ask I I I to the thinking if apologize XXXX, picture got to launching right a products. relatively stage to the for -- year line set numbers, today, about it business I'm just year ahead. how come through, to What's sort you're help mean, help base for about easy think have be, for got starting back new me. stage and just you've to you're asking these growth, the all one, with but to reasonable right if for you we asking, now, last for -- or ahead, you comps, trend but you've seems expectations Micah,

absolutely. Yes,

be based mean in tougher to expectations annual the start and the mean, in seeing call. got conversions, comps the in So year-end first mentioned to I Rick, even remarks, we're we XXXX And as with comps some year. But there the I in quarter underlying new in that return customer business on in and before on half. growth we'll we've normalize my comps details trends quarter, comps first prepared I expect those next on the share some easier will our for back half. the change the second the more

We'll a year. and for through have expect that back on plans to growth. growth into But return work we year. finalize next heading trend next So to we believe we're our

Taylor line with Your next question comes Matt from of Jefferies. the

couple to you forward? a folks can of into we of actually know the new real quarters in need taken like divergence to to things kind the come do call of could try to rev any durable you that's that the rec So sensors? wanted you've from It together think but of and strongly some a growth seeing utilization your talking more to the I those real see to I question us work you're backlog But guess short-term activate with or new a wins installations the terms sensor of change? this And just so -- revenues some recognize do recognized about bit whether the this obviously, between when understand guess next success And what trend? trend, that to actually seems setup disconnect of helping year last through what there question. that actions over that's A, you revenue get grow for are I how contract how are sensor the and with So baseline? you people and the using know showing is, a going

hoped Well, we of had just our we this that time. level the installations, have more not at by seen

switch in surgeries ambulatory sensors. successful and than them seeing to that back more We are the also did many surgery go to single-patient before getting of use to now been have centers

use surgery believe roughly XX% XX%, I've ambulatory the we before, As of Masimo. indicated centers

reusables. So they've historically using just been

So it's can patients. hopefully make everyone, we that think better because change for we the especially

year. it doesn't us. believe stable, in think anyway. and stated even we we prepared growing because market the as We that's occur, believe normal in behind that seeing -- yes, we'll we growth next be believe we be should of XXXX, look increase should into So be we if sensors we think Micah worst I our the in share, is remarks trends why And growth believe his

injunction, scenarios win. you. understand follow-up, some assuming going a with Got in you Congrats do Apple maybe the help question. context get some what mean as But of that you'll does forward? battles the that on can you as the And and with just leverage. separate different other, of have in finalized, this I you're forward, an there is for you actually us that some could Can going guess, have going what ITC a to

maybe for looks important think consequential most that an I and most patent is result Well, injunction. the holder

for matter will their So a benefit goes we maybe think customers, It's in a monopoly what. a got if last, the intellectual injunction property, we indeed the X, which of that be can benefited, will with we of come can't as over Apple If to place, monopoly long. work I while result no left into our deal where having it. is do better not together X years

to it's share in time future. or we and hope in in So moments we very news many think hopefully regarding the one either moment good time positive,

next from the of with Piper Your Sandler. comes Jason Bednar line question

the Joe remarks, today, about some really commentary say focusing next want a and in as release the as year. where just as setting your bit of variable element higher and XXXX, Rick's Rick asked, about really comp question, XXXX. looking on for Not those well consider your strong some on you're ask items we Micah, normalizing stage up revenue, but what of pick to EPS you a of at the I some

or costs to also I you not growing, understand, also that about year. extend that year-over-year? growing think to Mexico should 'XX gross next just know don't for Malaysia, I out but to shifting duplicative want what margins to of you're EPS trying for if on revenue think strength what I'm means Micah, just manufacturing like to we comment does over

Yes.

drive into confidence -- of we're a the Jason, throughout revenue in return the today, next year year, annual those in comps shifting So to have next -- me on into more is of front and let initiatives volume about of year. at that. more and Malaysia and barring got cost kind year, around gaining going at this on as we some focused the certain initiatives year we we through very terms move you margins, that some opportunity growth lot growth, something we look for if gross several we've products. been where to But that's including exit to other talked to and reduction we're we're that, us of step the have

The other thing is in our consumable XXXX. growth even that suppressed that we're -- be seeing some with mix now we into shouldn't and through carrying flow though margins see into next good year, even move to continues as benefits gross we capital

think But to work on be of growth. the variable up to our last have I X offset the terms a year. that December that back to We've guidance trying variable going In add where next to we year to We're taking EPS good we provide and expect comments to lot We to through still expenses, trying try in going around and early do planning gross through expense comp, wrapping take back get the to through offset line to exit right can everything add to been try the the improvement process margin. quarters question we're actions. is expenses. to your that we're as on bottom deliver mostly we margin be your operating of

we the coming add that into million variable quarter, or so around last P&L. $XX back to back referred I had of think comp I

benefit very to you'll where we've but in will some of been OpEx. on gross after be But margins outweighed offset also try diligent So it expenses will than more getting -- a see that. to through

Okay.

normalizes? then expand, the that the grow model you're a considering as EPS that boards per kind about ward we would seen pandemic use those the mean, lot covering we few coupled over separate lower forward, When through you and think and should to with put utilization be what's during the follow-up the or the covering board level a have amount point, I driver year? right we've think of installed to pandemic, And that maybe here. past general the immediately So a placed They guess massive utilization of utilization be beds few weren't finer And margins next trying past I topic sensor presumably. over before. years, of shipments as driver years I after the

driver just how XXXX XXXX trend So I'm were XXXX? considering actually at today does per trying the than we're in to average out than need Masimo I Rick you're to of guess XXXX looking different we like how or figure that like we be lower was, model to quoting? kind consumption forward, a the do

Yes.

of years, say a would I the Jason, driver. of that So up through COVID the some saw we step per revenue terms in

back we're that the settle forward. think again back believe it seeing from per able I but also XXXX, kind of we'll to we driver and be into utilization grow that going improve the revenue

to what installations new in But to lot we're equipment this back point. again, think seeing we a drive revenues additional I a we've as that got of conversions, we seeing at of settle leveraging customer were we're we've in kind start back these So fully done not XXXX. from

see forward. improvements we So moving should

the that allow might track oxygen as earlier the socket it will sensor, to year cardiac just be with rainbow output greater. to to said, Micah of on of of be the more mentioned delivery our our standard call, X and used same we rainbow hemoglobin sensors the per per LED be while hemoglobin for about the but carry revenue not -- will volume in think, XXXX, to monitor. We the of XX% as the hopefully, as many sensor, switching LED X of measurement socket per which to sales with all premium launch And customers with Set a are sensor

Thibault comes BTIG. next the Your question of with Marie from line

to wanted the year. headwinds on one earlier this had discussed in I you of that check

you'd that we backlog we installation has too help come of And it was, workload? on in me of that more time a part on QX? see in the the those? Did didn't think Any the hoped. those then so had Where are through that? of just Or they labor? of we the with I Is it as that, Are recognized short can could you large orders gotten OEMs? them? quarter? telling number something much understand any the see it Is sort with bad are you why equipment on hospitals detail exactly those

Marie. Sure,

of all, pieces the OEMs shortage some on installation, shortage, the hospital we staff the So of just hospital's are the installations, our I us nursing need to loosening the say giving first and is but for delaying installations. want

I've in orders was not first numbers. come on in question and again think I them yes. did projecting -- already the large QX about our not in large we're Yes, orders, your QX, forgotten those.

lost getting still They're in. as after it's frustrating haven't We quarter them there, they we come anticipate and don't but quarter, them.

in. So no, they did not come

Okay. just guide? QX included clear, be are And they in to

not in the QX included No. They're guidance.

Okay. at if really impact business but or kind high-level We've one discussion, unit ongoing for helping the competitor possibly kind all? this market question. of of of that's the then there's I an seen yours the at with a curious an in And helpful. any acquisition. headline you in that know Are potential of seeing That's share spinout field? point

couple of have Melcor the Marie, Medtronic we been Well, a against nothing think, division gaining decades and for has of changed. market I share

to something not saying them hear true. I it is and the sometimes And contrary,

get As I've the can't their heard or buyer the that transition together to them. far as rumors money spin-off, buy

us know negative. positive even So we assuming it for think happening. But it happens, should not don't be I and if it's

Wolfe with line comes Michael question Polark Research. next the Your of from

Another inventory know that there more color that super the was end Micah, sounded call-outs that these your return you're excess provide from can the remarks seeing no would prepared other on patterns customers. your feeling it in can not like And correct order I one towards in had normal. excess any of the visibility on certain like that at quarter is channel but high, you that now say is that you you be great. might longer feel -- customers confidently last topic

Yes, Yes. Mike.

It's predict their they ordering like I budgets to of tight customers, customer worst us. not operating So that capital how easy this from patterns and behind the and inventories. the environment we've got every I manage with inventories that. see and feel sensors do the how they Can constrained utilize budgets I and their in

we're where quarter, than So more range. had -- have as more confidence last it that the I view because limited trending, new for the as I'm And quarter we -- but of encouraged did were Last just can gives like back And it's us I through and I not us to lot growth. it's mentioned, can what just think this now data much get the we given improve do would encouraged of confidence and continuing that a than this now trends step up worst a we And points. was to the things that are we have we say I are think encouraged guidance I it. sequentially we're quarter I that liked.

much feel I yes, this So better at moment.

saw fresh And kind Is Is on about just that great. to how you consumer it? deliver products Joe, positioned creating perhaps be reflection of the to the you Thank to it closer business then it for would Sound a feeling running prime United. your you expectations, in that distraction? how do still move you. that Just a you as opportunities a about you're follow-up today Is proving time? think it relative opportunities feel it's do it

we Sound working, going if care reminding the when to health to I one, health get I moving to to give as because business something home. business health, health X allowed years. we Health care constantly did then, in acquire the As home. this stay because, has announced good the attempt of we which is Since X it we our us consumer it. us announced been make isn't years, think could it's ignore said, a what moving acquire it is it care has we're we thing that to we'll And ever United, not on rid focused for

And something had do, to so it's lose but our in I hospital business. we want didn't normal to focus

"Hey, team, Secondly, being helping better products leave contrary, did positive excited we're want from the sell them, We along. that and we is excited they're about Masimo, into. you're other the of And just the and not management employees, lives. to AVRs" part about us the speakers consumer that hear health people the getting live

where the those not to where that the of XXX% have the there, reason figure firsthand good over our year and last stores, ago. their in out. have we STORK some we wouldn't it growing, has to taken stuff of business known who that put hearing heard how a the where have into has start. years least, grown launch to would which them call And stories were to done, us since the market addition, they the but on is In is be focus a hearables segment And

no, get have ever are products important which to Obviously, that more the it. out, So biggest was in hearables and was we're second that than believe There some The like reason Freedom. -- the rolled third. was the reason. I STORK,

think the really patient thing it's this payers, curve for care. So going it's help in thing people I to bend and right even for right please I hospital is there. and of the think hang for the really Masimo. cost

of line comes go with Raymond final question Jayson Your please Jason James. from ahead. the Bedford

here. Maybe utilization, seem didn't script here. you've times factor during a just a year. like of It questions COVID sensor a just few on cleanup mentioned last few post-COVID was normalization the much

you why sensors in lower last think experienced don't utilization So year? you

think, I surgery insurers all, pushed the first effect from hospital went care that provisions into centers. certain with of are to that patient Well, there

was customers. think, orders react sales force sensors large was, to they our did census Secondly, some volume to a certain discounting that by as I that lower our occurring, trying to

first year, catching purchasing share, during we things of have COVID,we razor, growth kind at that sensors. not as next increase it, of in stopped our there, discounts And we during over We period. now that, aware like should million normally we're a because growth be providing as of So did with COVID, make regardless. -- that of And seeing year million market we're what of just next razor I business bad year sensor I'm to up $XXX tremendous When The saw saw of with our patterns continue sensors a me. I became on blade think, it because and everyone hopefully and helped the a it. bolus I where gets grew it the growth. the out sense point still we $XXX grown during but million. grew -- year should growth And from see $XXX we're

visibility. you good have And pretty Okay.

have You've competitive good pretty mentioned market that these wins? share are a Do visibility few you times.

Absolutely.

target for the whole last has business don't to Our XXXX that hospitals the Masimo. fully convert -- been have on Masimo and

today, first for incredible the XXXX. at months Micah of the look the put more seen the there in kind than years. growth we've for And you past of year XXXX, year, COVID this several graph If were you see out record X And ever. where we can that XXXX, it's

is when definitely it I wins. can't So customer. we a It's And remember lost competitive gain. market the share definitely

it's you So some. be incremental and losses We're giving wins The winning the some. of believe in we business. losing what like we're normalized is not to we're new numbers terms

from there Was just revenue contribution a And Okay. you here? contribution if STORK? can potential of maybe reframe kind the not,

speak was it you but Micah, minor, think there was. do I to yes, want to that?

Yes.

retailers the distribution launched So over STORK with been August. of We're today Jayson, the to store of we've continuing Sales the expansion year. modest. have next in out build late

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So thank you.

today's joining. gentlemen, concludes Thank this and you Ladies call. for

You may disconnect. now