ResMed (RMD) 24 Oct 242025 Q1 Earnings call transcript

Hello, and welcome to the Q1 Fiscal Year 2025 ResMed Earnings Conference Call. My name is Kevin, and I'll be your operator for today's call. [Operator Instructions] Please note this conference call is being recorded. I'll now turn the call over to Amy Wakeham, Chief Investor Relations Officer. Amy, you may begin.

Great. Kevin. you, Thank welcome Earnings and First Fiscal Quarter Hi, to XXXX Call. Year everyone, ResMed's

said, webcasting Relations As the are we Kevin live be corporate later on our replay this available the of Investor section website today. will and call

are and press online available presentation earnings now. both Our release

information. During today's as be to financial non-GAAP non-GAAP schedules review reported considered isolation reported or discuss GAAP will substitute to measures provide for believe GAAP numbers. intended we with call, measures press is encourage for information not we a the the today's helpful the in these investors. release several you that We This information in reconcile to supporting earnings

financial based In will but forward-looking addition, limited including, on discussion We statements, include today make these operating reasonable and performance. our assumptions. statements to, our future not expectations about

results for filings to today. I'll that to and actual Mick statements any our our risk a CEO, ResMed's cause forward-looking complete could differ our differ. review factors call of Farrell. over actual turn results the the from could Please SEC Chairman However, materially now discussion made

and another welcome day. lives we physicians, growth are all and ResMedians to reflect us and fiscal investments ResMed's and SG&A of solid the today seen operating strong worldwide XXX of R&D, profit gross and XXXX. shareholders customers both of presenting over business our improved for margins providers they the countries resulting for to quarter results all in as hard of disciplined patients bring every all The we the in Thanks, in Amy, review of work today performance. first improving pleased the I'm dedication We've segments. of XX,XXX-plus year strong very results to quarter report our joining our across revenue growth,

our in outcomes They are financial tens strategic an for of are of improvement millions emphasize the to that here worldwide. and I Before health presenting represent just in results financial details nature. we of initiatives, people want the today delving into not many

health care Gen here masks Our mission as and at through love people technology, and ResMed AI connectable the well devices, health as in that cloud technologies and ML digital AI. including platforms accessories, create life-changing to ongoing investments latest is medical

to they hundreds breathe to potential. can better, are of millions longer the so they forced live of that We better higher-quality people and helping lives, committed can that sleep and lives their living

breathing our Now reflecting by another well turning and delivered review offerings. grew to product revenue accessories masks the growth high-level residential our as software Revenue strong well this as as care for We accessories quarter. categories all geographic report financials. a strong proud ReSupply. new that XX%, by I'm and devices, Masks of patient activations augmented double-digit health quarter. growth as ongoing was medical health achieved and demand and to across sleep we

Our both AirSense sales and strong platforms. driven XX global device were the the by market performance XX from AirSense

we're XX. our committed operating balancing achieved continue strategic to has and market-leading, XX needs We're operating supporting Our market global access quarter. an the to growth. leadership a double-digit driving ongoing profitable year-over-year, with us further discipline, in focus in driving growing We're remained percentage and market ResMed. Device the device patient or two by to sustainable per maintain cloud earnings achieved the cost programs a and on platforms. connectable areas our platforms, strong, expenses AirSense XXX% here excellence we provider and AirSense at AirSense together, growth sales prudently XX% every drive and who the efficiencies, sustainable during we operating long-term growth operating our and growth in XX% leverage that our investments share. increased managing power By investing helped with profit We

country. platform worldwide the We of increasing country AirSense XX by availability regulatory expanding our are with approvals

ongoing see will momentum. We

U.S. technology therapy, have just a CPAP mask technology remain and fabric technology its drive new Combined masks and FXXs a into had first another XX, with to The set to smallest it amazing perform sleep a strategy we're to for week. mask covered deliver therapy how ResMed's growth. it we launched I nasal select proprietary feel with CPAP, interface in the soft, in feels the patient accessories AirFit making, continues comfort and announced incredibly Today, of fit, technology. are patient for more innovation, next Our mask we will received. frequently fabric The help the and fabric, can't long-term improve with can XX% AirTouch optimal technology strong breathable why including has for wrapped to we sleep. At enhance critical with will very to markets starting frame and has lightweight launch standard love and this fabric-based We to believe and results. been quality business its it's longer week. ReSupply or mask availability we The adherence people new they good? and because NXXi well upcoming is comfort. year-over-year to high announce morning clinical FXX our their as patient the it, will our system can APAP that I ever, ResMed's sleep. quarter, see on NXXi. [indiscernible] that market, praised element the The fabric our a interface able The they Day been day delivering sheets FXX, expanding programs especially and design, latest compact be of move across during additional next bilevel years markets. adaptability, cotton, all way has seal and customers well this its like outcomes for achieve AirTouch adaptive FXX global proud is mask be a patients a who This the pillows Investor September and in and

as market-leading medical higher in home HME including therapy and adherence enrolled patients equipment have programs three that platforms, the providers physicians through first myAir ReSupply Brightree for as for for empowers or research AirView long ecosystem shows rates providers. [ over health ] year digital ReSupply thought term. patients, Our well the in Published and

expand care programs overall positive to we excited we're the we in As costs. as the reduced continued outcomes us. opportunities system of health types globally, well made, see as on impacts expect and We're these of ReSupply we've patient proud progress of about front

wearables tailwinds. Let's believe have our on of trends that significant significant new GLP-Xs. about now recent will that reviewed these we've class trends two consumer talk pharmaceutical macro a medicines namely quarters, impact We called over of and both business as macro

to this to or The people PAP results GLP-X real-world GLP-X pressure with a percentage long-term be discussion committed the XX.X positive on of to targeted XX.X XXX,XXX diabetes Let and that focus beyond. prescription specifically for are a a airway are N obesity even have therapy. propensity more commence prescription with points adherence. absolute and a therapy prescription PAP of GLP-X therapy, treat points People positive these latest now generation with clear. analysis prescribed We've from now medication airway a me a medications data a analysis appear equals and subjects start once likelihood designed Moreover, for received and medicines pressure who the both with percentage to a prescription more and GLP-X on therapy therapy, higher. absolute

to months, and with XX prescriptions Our absolute ReSupply and XX that patients At is that GLP-X suggests PAP a patients who to the the both higher. expands therapy percentage shows X.X PAP after rate GLP-Xs sleep prescription. their GLP-X on increases absolute This months, and even analysis motivated treatment. a percentage ReSupply adhere rate points for this difference and higher are apnea X.X also for further start points patients start to

be clear to that tailwind for it expand we will therapies these a our use, As continue believe in business.

to which moderate its macro generation Samsung consumer achieved Next, In trend. the severe turn capability. for Samsung of apnea. began July, de now this let's novo sleep Watch, clearance includes latest Galaxy to FDA wearables selling detection

incredible and Just two of technology using last technology sleep have over of its month, the apnea actigraphy recognize consumer introduced health identifying detection tracking sleep possible method. It's generation with as [ to Apple Apple detection weeks version latest apnea. world-leading own multiple importance sleep ] its tracked its companies watches

most like these on these this for Whoop investment sleep incredible will ] and awareness once-in-a-generation sleep care. by the breathing focusing beyond noninvasive, regarding health wearables and and solutions see appropriate breathing and We as where own ResMed believe and out technologies help information for wearable treatment health particularly that most is seek world awareness. find proven sleep consumer opportunity [ cost-effective tracking. these more the their sleep effective, addition technologies health sleep are Fitbit, health Garmin, health. diagnosis drive breathing apnea from and ResMed's the Apple apnea, most clinically the Aura, to leads pathway to their In for Samsung, an We and patients with help obligation other to the health sleep consumers most Google's for companies health and to

ResMed competitive strong here Our by underpinned is position continuous innovation. at

as Our integration availability scaling our commitment cloud in latest product of offerings, ecosystem. made expansion investments to and of including care million our of MyAir, AirView which tools, application users such system engagement has over health and digital our offerings globally. consumer into the digital intelligence patient significant devices digital our X.X health our We've our the patient greatest the now management and the of connectable artificial and called called

test ability platform. system our consumer diagnosis MyAir own called and the to Additionally, we to improved provide will apnea that's on announced process NightOwl our a recently their path This therapy. our sleep wearable enable home more streamlined with integrate engagement

for growth, to Let's strategy. our we ResMed long-term now call XXXX our turn vision what

Day, into breathing near for at in during growing our our better two, centered adjacent core health drive this differentiating on over key payers. digital and Stock Investor business; and one, pillars: sleep leveraging is patients, just health health outlined leadership to our physicians, New three, we ago providers three Exchange, expanding and outcomes areas; and strategy York and As three recent weeks the

and cover Q&A into Let I'll to then each on Brett. pillars, go the thoughts we'll that, three of after over hand call some me our And session. high-level these

health sleep one, breathing and So health.

health leadership health. laser-focused breathing ResMed, we at our in and expanding and Here are on maintaining global sleep

has allows beyond This Our best go some positive like We product smarts million most products stands with XX market, partner provided XXX% at here have liberating bring with the airway and than the and comfortable, term leading pressure. software to lower providers ResMed, breathing continuous billion cloud the I care the the in goal ultimately pressure. for connected cloud. systems Taking the over CPAP their that can sleep more devices beyond costs smallest, XXX caregivers offerings the now better countries whole to computerized never data better are the airway the with the physicians, stored in it traditionally have of worldwide. outcomes, health the management chronic products we that we and that propose license, now patients, And cloud, quietest, data engage nights most approximately physicians, connectable to health is intelligent. health artistic most By to the The us providers and would we and better and have themselves. unparalleled devices to positive with overall patients, for health care better health and system XX before. that achieve patients insights, of diseases. help And for

their people Second, in digital right health right for at in that's where home. leader and the ResMed care often live home. health global is technology delivered solutions own

myAir care further the product delivery. machine broad We're go-to-market centered. patient health care well as to intelligence making like as or AirView care learning software health Through advanced we also more developing generative more AI introducing as like health MEDIFOX DAN, more are power and Brightree, basic and to improve and of as personalize well efficient are platforms our residential revolutionize AI-driven MatrixCare including artificial therapy and accessible, adherence. brands solutions more offerings, We care

this briefly AI-driven in-market me update on Let in products two space.

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our health initiate we U.S. breathing queries, Dawn, call questions costs as humans. center into an answer do of XX% beyond. these has how the led best access seen system and reduction allowing to is they information launched latest contact bottom our to connect are And AI-driven extraordinary to just more we've into to own quality, a personal health adjacencies. visitors best does higher and people After and few lower Dawn. sleep XX% of volume This of care health, outcomes people The connect is product get direct about getting just months they better in need. and for expanding consumer session their market, with helping a Dawn technologies line the represent to human started. Three, Our being we generative with have what that to tech customers live tech they the

investing and beyond. growth insomnia, areas pulmonary incidence obstructive including are and areas, COPD disease diseases, With including aging significant increasing adjacent opportunities. disease and of We population chronic neuromuscular respiratory represent an insufficiency other chronic in or these fields, an

better to people on continue therapy for suffer need new and noninvasive million COPD suffer the inability pathways cognitive working to We're our insomnia high-flow for leadership and ventilation while CBTI therapy, get home. at with help We insomnia, XXX other who product develop the the million to the also offerings expand or for novel technologies building on from in our it. Somnio, in COPD behavior called who are in from to asleep. XXX market, also stay urgently a therapy for people worldwide we patients looking sleep The

health significant we're this our explore believe excited the technology extend to build of to breathing ResMed capitalize they there's delivered we apnea growing what leadership clinically have sleep and the as better sleep more global in of people seeking sleep also whether broadly health in apnea. ResMed home. We trend all means into that's a to in And for opportunity health regardless on fact, sleep for significant worldwide on health,

is and fullest and ahead, our and the us. to better, live As health demand solutions more to we energized everything health better we sleep than in global by look their continues front sleep higher-quality help growing breathing mission do. people of ever for opportunities to lives breathe The drive are potential we

achieve We're with we XXXX to our health with our applying stakeholders. Thank is whose thank all technology you foundation, aligned best for we We and breathing have to our XXXX forefront leading ResMedians, our [ in ] value and the ResMed at care improving over product with of strong fourth outcomes, our shareholders, their XXX landscape. tech health million and patient possible. the work now at creating in goal plan deeper hand and health, you rapidly up and our of positioned a to financial trust dedication and over for innovative that hard you, ecosystem, and our reach With are floor our to we'll With strategy sleep to evolving updated Brett, the financials, health expanding to open home. support. potential I'll then our and people pipeline continued digital your for questions. the call health technology for goal. that, over Brett a mission new make Sydney dive into you. XX,XXX-plus to empower

billion, Group currency prior in QX. Unless quarter I Great. comparisons constant a for an Revenue reflects financial constant product for provide Thanks, Mick. performance portfolio. revenue XX% in XXXX. positively and increase our both applicable. to terms our were consistent In quarter. growth by on will and during overview my an strong first the approximately foreign today, currency of had September ReSupply the impacted results contributions fiscal year movements noted, million in currencies September remarks of across $X all We basis. quarter a was quarter the the headline and revenue are Year-over-year positive and year $X.XX

down by by by September growth other other basis, America Globally, vertical. In areas. quarter, sales Device in sales X% new Asia masks increased and software while underpinned growth care sales reflecting U.S., by device XX% HME business, and XX%, software increased performance and and by by setups. Asia Canada our demand. Masks and distribution our and in U.S., Europe, regional in in the ReSupply software XX%. currency by Looking new both America Sales by DAN by and increased XX%, increased by Canada ongoing patient from countries solid XX%. Breaking increased Latin other sales from while at revenue and increased revenue sales residential sales and masks and it supported increased XX%, regions continued care MEDIFOX XX% increased sales XX%. Residential from revenue Latin geographic strong a Europe, by excluding constant on our in the and patient device regions, by other increased other

today, to of be the will commentary numbers. During my referring I rest non-GAAP

cost in was a quarter. gross to broadly driven of efficiencies and We numbers margin increase component was by first quarter and full in average consistent release. Gross have The in provided reconciliation quarter. with GAAP basis our increase non-GAAP prices. last September points earnings margin an the primarily press to manufacturing Sequentially, by XXX XX.X% improvements selling increased the

arise and monitor ports. conflict to that potential could continue headwinds the East from Asian in We congestion Middle

increased impact sea freight expect fiscal our gross and to air year continue costs throughout XXXX. We will margin

made focused to we progress good gross our However, further and have we XX are over last months on the driving improve expanding initiatives margin margin. gross

to continue expect to fiscal XXXX. in the in be year range we forward, Looking of gross XX% will XX% margin

to on attributable SG&A increased XX.X% costs, revenue was expenses to predominantly to XX.X% of in to The the for year by percentage increase SG&A operating period. the Moving increases a compared quarter X%. in first expenses expenses. improved employee-related prior as

Looking to we of be the R&D in percentage of year for as by of subject quarter was the fiscal a X.X% a expect increased currency SG&A compared year expenses as constant XXXX. R&D revenue the expenses forward XX% prior to to to currency percentage and basis. for period. X.X% X% range expenses revenue XX% on in movements, a

expansion. margin percentage X% movements, of growth R&D we for a profit X% XXXX. Operating XX%, year underpinned by be the currency to to for and revenue in by the fiscal expenses increased expect subject quarter to and forward gross as of revenue Looking range

second given levels, less expense expect $X net we to interest than the low interest net expense $X.X be debt for million was in Our quarter. the million, our quarter

second will income the fiscal generate net of half likely in interest Additionally, year XXXX. we

tax fiscal September for to effective XX.X%. We quarter Our XX%. for our the estimate of in range rate year XXXX tax rate was XX% the be will effective

income million, diluted for reflecting for the solid million. We of with ended the The amortization by and and $XXX earnings for September Cash quarter $XXX XX%. quarter underlying net was the totaled million. a Our was operations million, expenditure the from flow quarter quarter first by increased balance depreciation non-GAAP earnings. the $XX share cash per XX%, increased Capital for quarter $XX

During the debt million. quarter, we our $XX reduced by

term we debt debt, in gross rates market. for September now repaid have $XXX debt. our under our in had million $XXX the $X.X drawdown and XX, attractive debt interest and available have On We at billion our remains relative current we variable And net to facility. million revolver approximately

a We declared per continue $X.XX to our solid Today, of liquidity position. share. of Directors quarterly maintain a dividend Board

During under year to the the XXX,XXX million a of dilution remainder will to quarter, we We share shares for employees year. from quarter of any value the offset the than program authorized shares XXXX. purchase during of through purchased $XX previously plan of fiscal the more buyback to vesting approximately This million. our per consideration $XX equity

plan through that, with Amy. growth continue tuck-in to our reinvest buyback back to we deploy will program. And forward, capital share to R&D, I in further continue for and acquisitions the Going hand call

Great. Thank turn of Q&A and run to portion ahead go Kevin. over to call the Thank to again call. instructions like you. you the provide and I'd you, Brett, the the

you. Thank

question-and-answer the question Laura [Operator begin UBS. coming Our Sutcliffe Now today from is Instructions] session. first from

like what new demand looks product? for have you any not mask? that it's sense quick yet, available for of do your preorders know sense any of Just a I one, but

information it's scale terms can and Thanks point global for don't the programs, management customers. Laura. the the sales engineering it been The to here has product not some release in has material financials, team like commercial and market. [ fabric fantastic take at big we this that a in together the is you de our minimis But Yes. custom over we this to it to teams I needs to the rubber to next do apply is to week team hard scale. important this it's teams, silicon markets like global to to are ready ] development, at that tell The our where product most teams to launch what launch excitement. question, decade so that that. mask a going It's marketing this put of and and ResMed in the incredible a liquid have have take and technology shown But on really

about excited So this I'm really technology.

a of and point technology user idea types report personal game product of and the from very is the the But to this or days commercial excitement nothing rubber at material I the plastic a than other a these a type to incredible. think truly devices, of type As is fabric of early great team. changer. moving this

from Our Wong-Pan is today Craig next question RBC. coming from

growth much the World wondering that for growth through XX Rest rest of of there benefit if Just given higher of growth. are device's is Or coming just X% the some wanted was there. on they of not, world sales, to touch good explain devices? priced? kind drivers could from was AirSense I you growth there if the

Yes. Europe, World. as Asia Look, know, and Craig, of Rest you that's PAC

countries. What a lot the and included strong, those we smallest, we're broad quietest, we're It's players or in that competition, quite I global into loving comfortable very in of is that XXX All holding goes number. that devices. competition. full loving share share we're the taking markets, having think the countries are of sort you it's can and So certainly group tell that most in there's X% are that

to the a alluded AirSense and a there that improved countries in XX As lower is question, that's has to higher your in combination COGS from XX you where some switch AirSense of point. the obviously and price

there volume role and see and their the XX the really in team is are and demand well excited Asia gen to capture to that. that And you'll and they're And ], of -- we're driving we're some of really Huckster that that the in line, and revenue tell the markets. just up And just growth Europe through you, performing months proud achieve excelling. I'm in really of team just I and new that. But so demand there vast able demand advantages just Lou [ global can the is in ] majority [ in Pac, and conversion and Andrew Tony to

that. great to see So

question is Margaret from Andrew coming from Next Blair. William Kaczor

It's for to great I to devices growth Mick, Jimmy and wanted see it's double-digit on maybe here, on Margaret. touch worldwide.

you drivers of the the digested you this are and [ are or pull-through you've strength that the attribute what any from seeing quarter determine to, on strength As the maybe putting spotlight OSA ]? Samsung some to And make just talk the that maybe ResMed longer look to trying be as confidence term? giving the you is how market of at you might an impact [indiscernible] in growing

Yes, a the to happened XX for macro question. Jimmy. to and It's the good one, those -- allows sort these us days. trends talk Thanks micro also of last it what

Canada, device Latin on U.S. at exceptional Firstly, micro, the look, XX%. growth was America

want a from X% year be that's time a of this to clear, on comp ago. Just

XXXX, So Canada, U.S., QX in America. X% in Latin we growth had

So it's XX%, good on at low very but growth a comp. relatively

XX so #X in in device the XX market, the those available share is So we're we which and share it's is rated can have XX and the XX definitely we world, AirSense the holding for the and I AirSense and what rated to that. say the have in won't But taking device sale which there. for AirSense will take is over that the AirSense markets, #X great credit

FDA launch around de and sleep a with Samsung latest of with watch sleep year most So the detection. of with Apple I it. To detection specific their think novo your part Samsung recent novo clearance in clearance, for the the that their combination apnea earlier question apnea with and de moderate severe to has possible of then

been early I it's in rolled days those think new technologies. out. They've very just

a there's think them I get long runway out to and runway. as a there go long they

what, Apple ago. the flow really X, good launching think get If an Watch through to just And it's about years now starting being EKG you X.X capability, analog cardiology.

less it or won't or think Samsung but in will sort just of it go quarters one two be Apple since this and theirs. faster a since I launched that. than quarter

tracking helping early patients really trend and now care getting effect. there. Look, so combo the we're and prescriptions PAP, primary some and think GLP-Xs patients are XXX,XXX is I those with do of for into And having GLP-X days tailwind

thinking big these it talks it. all care awareness positive. system are prescriptions. about you this health the Big and to they're coming What they're and pharma the just into thinking it's getting can of is I about consumer think are are tell tech breathing people and importance there, are companies, I and in getting people So general health, those macro that health sleep all trends out

really about our devices in give X% Asia and in really team. XX% a excited of growth constant currency about excited X% look, Europe, of no, Latin global to So growth Canada, XX% and U.S., growth comp, world on of America rest I'll credit category. And the

report helping I really, these really flow think funnel. providers, home great expand and getting the great a numbers. about physicians, a to days. and in our team job proud to with the the commercially prescriptions has job and done partners early care diagnostic excited Again, We're

coming from Next question JPMorgan. David Low from is

similar much. double North or so market. for very a been year Mask the Thanks digit perhaps American Mick, looking last topic. in particularly sales the have

and I are? drivers touch mind what adherence future, is And perhaps could just the mean, I if ResMed's is talk about what talk a to increasing, little you is wondering Just bit please? increasing think on Can is share drivers there. increasing. the mask in patient market about per comes the maybe you expect what to

Yes, question. David, it's good a

That comp that is growth and accessories on Yes. America look, an was me extraordinary the answer XX%, really growth Latin was areas and QX, XX% U.S., from solid. Canada a I help of it coming of from. year in three ago. at 'XX You where mask mean, with

to look, a into you is, combination a resupply. patient of new be it patients. that as combination so said, there. It's And system. new solid it's flow ongoing the growth double double on digits of We're seeing pretty digits solid plus And

Snap at are every ago customer Brightree make it New York we're going technologies you're to that you if it. We we're our to got Exchange, system using operable resupply, the to want don't weeks We Snap. Stock non-Brightree actually going you your have expanding type on customers, management Investor convert launch not HME. to said share Brightree to at using good we for three we we're Day to you're We've expanding ERP Brightree, Snap although wants but put with Brightree, to, to -- really we whatever Brightree, with even

And so that's a new advance there on ReSupply.

So there's up, left room. per year patient going the lot a yes, per of masks runway still there, is but think I

and a or everybody But people. will lot mask anecdotally. for that research, and if of mean even out channel knows [ think three reimbursement year. I I your you pay four them not checks two, I to talk per there's go ] do systems

still less. mask are [ system per year And ] some one getting people or

so lot room of there's a improve. And to

on Some ones. I to of subscription get co-pay overlap is going reason it and do. buy that if profit because someone have is they're care motive. and to love go and that an it's on they getting sign-off only pay new the good and people through a mask the love with are it those they altruism programs, the The they

and all America. Brightree really So of But have those Snap world, I'm U.S., of and like Latin Canada proud there this we good systems technologies themselves. really providers growth sort Europe, XX% of direct rest of and subscription we where sophistication partners. engagement consumers, and also Asia all of different through channel it have the direct have through and methodologies care we or patients models that engagement HME with And home to to the sort and/or our U.S. don't do

But growth this is accept digits carbonated said we the digits high and really share third growth, what Look, Yes. is expanding so pie. Pepsi growth McDonald's And saw really beverages the masks. KFC, around -- industry you part devices see versus solid. drive it. And versus or and Coke Look, this isn't on around of XX%, you this mid-single the doesn't quarter, on still we global ResMed single market is market

so share this X.X% of masks, new AirSense and our in the [ And the We're we've But XXX% done day. well really ], We fight point. masks. happy less to to AirSense share in devices. about FXX, market. throw pace medical worldwide, X% XX, billion for share, have suffocating less and sold and rest great that continue of take XX and we're very million and But a X XX extraordinary that, share in into than some for potential, That's every we'll the want it's yes, do good about I more ] in market. the think cloud-connected it's say me, global [ to devices people full I more, we've of there

growth is patients I'm biggest from as to job that share. in our we'll are the how I and per flow of in the and -- find then the into the bring able that to high said our for profit side pharma Investor as those ResMed's and consumer more our free -- And funnel. opportunity ResMed our help tech more we big And pathway growth so growth it's in. and the Day, earnings prep terms that's in remarks, single-digit to through sustain better sort in be cash big people patients getting of than loving said going better that

Next from question Capital. coming today is Hadassin Saul from Barrenjoey

it operating just relates related some cash it cost to it headwind just Maybe like inventory seeing some just you Brett. on of a bill as to new of Can to -- there inventory through [ ] it and that inventory looked sheet? flow this? to you're balance sort a issues your seasonality it as any or of particular, working as in just Brett, relates this the that's coming capital, the product other quarter Is launch that it talk is build. one for in was bit

bit Yes. process we're those really and working to some of a air in freight our Thanks, rates. sequentially Saul. of particularly of But you fee what the in done mitigate is inventory costs freight and trying ] freight [ freight on capital. Yes, ], if little the look increased on [ we've at rebalancing increase it

may which It's levels stock sea, think term. the of pretty short of some increasing our in after a will in a process increase then the on that. transit, in more is is inventory stable just which increased There we we've be but be balancing So QX, an it that. little

So mitigate part freight some we're what of of do trying to to costs. those

Anthony Mizuho from Group. coming question next Petrone today is from Our

Maybe and few Mick, approaching I both Last one, Brett. year. those on actions ReSupply increases, a last quick put Mick you in anniversary some devices think the year, of we're pricing, price of price and or a

in inventory holding on patterns, forward. out as of diet? situation of more that steady they well, one there a strategy a U.S. the ] are maybe purchasing the [ in there? buying part sneak I So going be because Is and just pricing could if bulk the just little And supply to more going just DME bit

increases the strategy, I'll and have availability his Yes. Look, in Thanks, last availability Brett, the supply price the semiconductors XX into and flowed answer, and specific channel. opening and our firstly, as feel us. is free around hit during costs X, in chips, big Yes. electrical Anthony. specifically and to a saw inventory really have X, up from us. alluded availability and of freight impacts both And saw a But quarters sea go freight costs both Brad in, crisis, at on as costs, really and comms we and chain components, questions, on on to for airfreight over some chime for we pricing our cost last increase had Anthony

ago, and And X significant or we you saw us so hit quarters from that. that -- X hits took take

working are We that. through

with retail so of the on some frankly, And some look, we of as saw. hit, ResMed look, we some their customers, that started saying, we saw. those took at market on come work We have They've pain shared of bread, we as and increases of it's And I the gone passed our up. price happening the frankly, them these that to me the have not have of all it's costs for lowered mean forever, up everything, as prices to interesting in gone and bananas fruits. milk, down. and things side,

the payers. We we're reimbursement many this private and health is industry. ResMed, governments understand countries Here in at look, care by in controlled

And our we partner look, to happening. say, with so what's channel up

shared there. that And so we of pain some

out wary a I better. as moving issues and somewhat Sea with sea are what and union components. Canal Panama we're a way starting high-cost strike our of to think even level Red things last freight those month. just our through airfreight happen you We're managing issues We're in could costs. always saw better, Seaport threat of

Supply But over got really group last with to finance all of we're Shane watching so and we've Chain sense ], Brett our Officer, team team. is [ supply it I chain the a mitigate, Chief between is plans can you and this, new so communication And Assi led paranoia. our good X what our that months, tell productive

haven't just we're our Japan, supply the want some on don't humidity like over in well. see ventilators. if hold of they mass So stocking of on don't you sort we where look it But high price large certainly -- in customers, there the and all buy at But no, them. like mean management fleet will very thinking We to to in how certainly side, parts the the really the this. And in second I'm chain. the in inventory. across with hold the think I particularly pricing benign through pricing areas U.S., we And and large excess they and are think customers increases tend where then change of be HME are sort of purchases CPAPs I for to up question U.S. have Japan. partner of They bulk a I and relative APAPs We still some tubing large that in want inventory patterns, maybe in costs even market and think there, inventory. pricing, high. we our and components general, in seen then to any level excess costs inventory about work where will an environment. To bilevels system, you in relatively happens. there's purchasing terms sure, customers

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So we make want sure it's to available.

said, reasonably our levels of for are high. But efficiency have Brett some we As looking chain we customers. the of supply us inventory at

U.S. sure it's goal behind. in our left And change patterns. major as no is in patient as just time So that no possible HME to with purchasing make

question is Marquee. Daniel from coming MST Next from Hurren

in your the noticed we've in acquisition then you're tuck-in Look, billion $X.X capacity. pointing commentary. And term debt become out presentation, this very the has common in

hoping could priorities, and just is months to you really was to next priorities think the as management free how guess, talk as So of you about the scale ramp up that I and starts XX capital cash the M&A M&A the retired? I debt the over

sleeps of M&A, part to I'll tuck-in management about that more breathes Dan. capital that. about he CFO, and to Okay, talk Well, our as question I'll the hand each and Brett broadly and take first

not successful of But conversations what looking and we've we're going to our acquisitions. details what of we're is I'm into will terms In acquisitions, obviously, terms tuck-in go talk at having. I what and radar done tuck-in about of in

ways we new was and did customers, in with of what don't with it terms flow. So in we that Technologies, around It annual number. was at think their us X look even terms to acquisition it the the in was I and engage patients brought if HMEs cash was number. hadn't you published that ago of our ever de the we technology. what Snap years But small with engage before relatively of sort gave did ability minimis tuck-in X, a the

residential but a people sort making the crossed of both sure mask, could made they the get. dotted care improved core as also easily health breathing business, Ts all co-pays it approval, system a needed new and the So Is sleep Brightree's that get by product health get capably and and it and care improved service they then health when our could for want software business

absolutely lookout the are for acquisitions there out like on Snap. we So

is about Somnoware. tuck-in called Another talk acquisition I'll

physician spectrum. pulmonary for and practices software medicine respiratory across sleep is the Somnoware

with XX So entrepreneur I actually, in him but team didn't you're joined And we've to, sleep I breathing engineers COPD and our at that health that us. in India. [indiscernible], total going team. a the de meeting first a ago. great time, Again, sleep think, he acquisition, to capabilities need at said, years And met a maybe of U.S. who number, we didn't sleep and apnea, need minimis and all that amazing sort in beyond, health. release got of the we here

to but the like right. tuck-in was was and was looking meetings and acquisition acquisitions he And had. tuck-in that X.X company great technology. he has It decades at the right our incubation next a buy [indiscernible] growth office to are going looking You're our and at just that that door later,

So to health he's final with size that of basically look smartphone, sleep is wants and can I I digital a rest on Carlos NightOwl our Band-Aid concierge our a is sleep process to your ] can might end-to-end a be. a app earlier those that diagnostic from specificity. and It than and be was and wearables our tuck-in better. small, I that's tuck-in. a we're Nunez FDA sensitivity getting about I sleep And all team this and but doing models written a and a a XXX Well, sensor release of that both is Great with with a tech my with but out these in primary "Oh, maybe to moderate physician talk for why apnea finger. and apnea it, CES in and that them. and there sort at We're in conferences prescription on here I'll from NightOwl if in it I that for we it's and Where is Somnoware physician. U.S. sleep we possible that the of from relatively [ go relaunch devices, sleep tuck-ins one the specificity can day doctors you just a of be talk integrated wearable. the pulmonary to They're prep guess scale with from this Sensitivity technology it's just consumer M&A or the and get timing NightOwl. we be [indiscernible] did allows And patient thinking, technology But detection. will very consumer ResMed us scalable go? earlier the or be. countries, some ResMed things. sleep ready remarks acquisition. tuck-in to a care diagnostic, what pulmonary and get physician. digital They the these earlier like didn't called just engage actually of one how apnea we're test about. that to I couldn't a on by from and with to that acquisition. Final home health number. test earlier about called Somnoware goes because company we along technology talked high designed at to this connected NightOwl phone is Apple the home other get higher people I've the a your different well do because then apnea ours think mean, we've Ectosense go a MyAir got talked the platform, what? a market, need But companies they Again, Samsung

a in sleep digital in and in companies and with problems we creating diagnostics because service going them So U.S. the of a with health product we're do-loop don't of like other taken breathing that. is care with We our diagnostics of. providers a want own for capabilities And portfolio to beyond just and obligation not ResMed. want are but waiting sleep health come People health. an concierge NightOwl them that helps

three of broader terms Dan acquisitions capital in to to more sort tuck-in examples the on that. Brett, and of are come share level? on with they thoughts a So of any allocation,

I ResMed which these now, examples, tuck-in, could time. looking going Dan, the million, can [ what that. financially the and leverage million, could that's articulated of $XXX sheet we bring to fairly And think what Dan. guess of up and $XXX add million, size quantum in might over sort be, acquisitions when like, And great strategically But Mick like our ton balance are sort broad, of capability given we're we acquisitions. you Mick. just Thanks, ], continuously be it $XXX like, Yes. terms got it depends a it culturally of then about and and into It how at -- tuck-ins, value we've to some think

three been or as actually acquisitions make more think out we hard So the two before But about market the there good over continues acquisition. the we last really develop. to pretty they've there's years. And

range, that look comments on going then in you us think would buyback at. And heard capital we and management, the will side I a forward. obviously quarter So going the increase and forward, other my each for remains earlier, lever that anything we

do guess, acquisitions. at investment, We'll look So we'll really tuck-in of that's And -- areas two kind kind well as the as R&D three at X return the the well Mick areas, that's focus. X get or said, -- we the get. then of I capital management as we'll some greatest where of fundamentally we look

Needham Next & is Mike Company. from coming question from Matson

I to guess wanted one. just I ask

that your able that the the is get that apply with And premium other that the to new portfolio? on price fabric for? new masks, you're with over a masks straps, to with can -- So in NXXi a something that you is then technology

great a and it's Day. thanks Investor to question, Yes, for Mike, coming our

You to touch see and advanced name, right? got product were to able NXXi touch It's see is It's it's because you've what that That fabric AirTouch. an extraordinarily really technology. I and its think the -- AirTouch is. in

question, at As could ResMed and decade been mask quality, were marks? can get efficacy we that scale on to bring for be that a able to that we we've said, looking your them apply at other market. To technology how I a fabrics to and to Absolutely. and with

type higher of these capability. get in and can the products cost. systems the like hospital that ResMed efficacious medical scalable But fabric your have to stent planet question, sleep this do sort on more the sheets. changer from breathing even and care still safety, is delivering we can it are long-term difficult field interfaces health. People If respiratory plastic, the It's to ones part it machinery and are They with that and a patient how cotton medicine, health the might and a this footprint high that cotton this. with have of why yes, face. plastics having is at competition find new biggest manufacturing in Costs of the might robotics I pneumatic technology sleep to a find -- rubbers, a be on that think changes sleep game or basis they delivered don't your should you pillow at on on carbon home. sell you

think first rates go slightly will fit and be the is will improve adherence, we've we up, our of will which that Alaska of the system, are that health have as improvements not as types chances because huge means investment physician, the market. that care death, of these will all study less that's rates products cost are ]. a adherence CPAP we the for stroke, for patients on the attacks, And to find the that as will of less provider you'll lower pricing down So return for higher the these overall rates go inherent launch But patient, think versus heart we of higher. shown with what do for costs chances in who the goal, return go technology, [ up for types on time them I

it team excited can higher a it's We do AirTouch other over more sort So out, it to will and days, it commercial early and we're yes, interest price of next time. have is preview, launching of week. cost. we're just from got customers coming will NXXi have and the who our we about But a AirTouch NXXi can it masks, because premium Lots take the what broadly excitement got sneak world. the and across and

KeyBanc from Capital Next Markets. Brett coming from Fishbin question is

the a just follow to wanted tech bit platforms. the little wearable macro up on tailwind I around

then driven You've if on could few touch best on technologies. would today's was to company these talked at a I and Investor ResMed potential curious Day in you position patient the a again maybe looking of be call. just bunch the that about demand adoption it at could capture potential the by new increases strategies that

of that our The Investor broad categories generation, of three the demand X-hour answer. demand the and mean, in gave ago, take on complex and Yes, doing a we on there's it's weeks great it's left we're this. are longer. question, Day capture as It a sort minutes areas. demand Brett. heard three call all conversion, of things overview could But lots in the X I we've got you

that into sleep ResMed tech driving big take pharma at taking Now into specialist demand we of the and do that. phase physicians, are driving people some if in big then PCPs, right, have people next gen, on is what to

all digital a [ more, these stigma -- are about with at people health to and human AI sleep have and hims questions them levels and certain have we what sleep with be that time talk times, if is different hers of food general achieving to of and some type of after all health ] be on success. sleep, out and that's other that got can there bot products have all these health interaction timing drinking by Dawn, just and like conducted like format. banks why spend about just help So getting engage do and much associated more our care, and can don't broader ask intake, callers water, caffeine less food to as for certain patients exercising less time a alcohol better, of platforms sleep health questions companies times, They they've after don't breathing and some type There's health. embarrassed can

together you just it seamless, it's just experience whole frictionless is health complex. But concierge And AirView end-to-end be those and answer just to them than said, just is a than sleep more and stitch the than wants ResMed more digital combination. how I the so components. more Somnoware, how it's Dawn, it's you person. create as that and that MyAir, And than more It's for it's our

patients their this, and is we're consumers and on and them health job in, say Let's systems. Every conversion. patient, partners at attempts All persons be And them going we'll here, person different not care it's trends the focused really job looking stop and it's in, in. care and [ drive suffocates stop capture Oh, bed experiments one wonder, no, to is consumer, multiple this, a spouse ] got And demand and there's many these think the who be got areas, person to update their MSAs, you. macro a in different ResMed's around different for to care. let's do is a technologies, XXX different. calling we've let's It's calling panacea so we've hit best are we own and countries, different to going going

technology billion the All better better and better or COPD of home. X.X or health or health combination pathway personalized of sleep the need to insufficiency, billion some Apnea the X Sleep an with they at individualized, people with apnea, insomnia sleep, above respirator all

the and our did show them we they get with successful, best we brand, breathing across If technologies. find health. return a and path with good experiments people positioned the with we this the share. combination brand to want we brand and that health ResMed's isn't they and ResMed I capture about to So we'll investment them engage then that of to do about This the And experiments that you goal globally driving. are is better on And this and are capability. clear, know. see awareness is brand to be a as let as sleep launch ROI, successful, just we're market nothing, share

and path goal our do have. Thanks that more in our them drive and lot think to find that I Brett. is they help can the best question, patients obligation for a and to to

trivialize with answer to sorry, time questions. answer, probably a more the X-minute we a couple only And but got for

Next question Suraj is coming Oppenheimer. from from Kalia

[ the from to potentially ] buffer cater we market? how as to time. if ReSupply price masks Anthony's Mick, when to would trifecta say forward, Philips just increases question, to think pushing ResMed returns your want little right? mentioned perfect I of right patient piggyback and patients on to about something environment a Brett bit is of now a also inventory more more Mick, price-sensitive So nominal believe in is a growth you

between Suraj. more as masks -- our overlays there's and you pricing With the mentioned, the interesting regard Look, technology strategies. said, we're to Yes. some to inventory the competitor our devices countries we're competitor Thanks the they've good for look, said, bringing question, world, there our as really I X% strategies we market, many, management in almost in, you announced XX% and Asia, all and growth That right? masks for of is XXX just many, pretty many in Europe, accessories. in quarters. been growth of growth rest in available and

players We China taken importing for they've the us keeps to of #X all It Europe to the of And most Europe coming in, #X, more for been in against a sustainable forward time ongoing we've position after. look digital right? I only #X, with fantastic them And doctors and it. forward But the to on so area, with want I have in consumers, we in beat don't Europe and love suffocate at ResMed. them. years, we've and objective I that's where team. is now about quietest, same player gain. that and with that they've love They'll some it. do trends recall set them beat toes. a choose I competitors. X competes. more to spend therapies. that beating love the got That's time, want will look think back them to or them them. U.S. sales Asia players with wins. we were them I the think And can with years ResMed #X coming their them. And looking through ResMed Asia. take look and for is what back about X our position. couple they've I from recall beating help back. from to love share they intelligent look, just advantage got What coming the Europe. We whole to out new these the And with and a before competition engaging other they And don't up particular connected that So competition competitor my sort to in thing care here. or that will other been we're compete all much they We XXXX, and I to products that Competition do get masks they the is find be I pathway forward. engaging a just And the MyAir, And on or I them because as AirView. which time, and most from we that I then go. macro isn't particular way had that to fight most new devices, XXXX this from how devices. Look, in love the a manufacturing a comfortable, ecosystem persons patients know importantly, health smallest, competitive in how who

Harrison America. next of Your Bank from from question coming is Lyanne

the you're you devices also, on that mix Is you production allocation of to Can have increasing you're year. the at come still? of comment you the a that selling you're for waiting there calendar backlog the And mentioned be do bit still of little on a off this to on end AirSense targeting track? XX? XX in AS You then States? AS comment XX And can sense might XX United the it a that AS

more We Thanks, that I one Lyanne. have right may Yes, think. time. lot we're and there's almost question, a in question, on

XX as is AirSense Yes, on firing So production you said, of all cylinders.

there AirSense said coming centers for and I that And AirSense through respiratory Our in off line out earlier, which and really distribution Atlanta thing full and care. and have world beyond and the out to our through at manufacturing largest plant, I'm of medical Sydney throughout Asia That the and XX Europe. XX excited is, coming is really capacity. Singapore as and plant is pumping

so and just limiters question, of to between firing are really, that XX XX really #X XX growth And player AirSense specific your markets. these AirSense to and rate many the and in we're strong AirSense #X

people AirSense is sure final one X line particular you might mix the consumers level for are is that going a sold AirSense your XX. will available. and to a until the in we XX%, insurance I'm of with on be if want to that little part U.S. you at one. do are question, some the consumer at products the backlog online there over may Yes, an sort as at looking Lyanne, new bit of one there so asked, or been years of they XX get a make AirSense waiting you dealers vast, think ways In I've of well some a be other for really in vast specifically, pay for And majority therapy XX. To of U.S., said. that

recap I spend of So I time huge a there's it. always think enough for always think a that backlog. bit on opportunity is us. don't We

time ongoing don't tubing for on sophisticated accessories. masks, and We've customers at really enough it. ReSupply got Our spend

be [indiscernible] a on need I think better regular we to at basis.

and a capabilities, so the quietest, full most to the comfortable on intelligent smallest, most on AirSense get gets connected point And make everyone XX. want going XX with it to at good team that's that call therapy, as and are it's things yes, I out sure greatest most that many say, and who's chance latest and the we the AirSense X-year

continue So that. do we to will

long As I momentum on XX. I the think AirSense lots prep said in runway, there's remarks, the of left a

today Our coming Andrew question CLSA. final from is Paine from

if in rest that declining particular, the seeing of and the you share? region, you about would competition in Look, EU on back in a from fill-ups seeing get thinking you're taking a going markets, the open larger of world just market to presence need some some which you're good to to sales, views devices just up just these

don't is is well. did that we device little we're markets you break Europe, very Pac. Asia have parts as the very of mentioned. other what we're question, probably doing with versus growth and yes, and very and World. with good Asia look, you Thanks And Europe And our the Andrew. European more markets growth versus particular both of a bit in of competing But of out say Japan another exactly We competing player, well, Pac one component Rest that X%. with them than But of China Yes. for Asia, Europe at world rest saw

it. always best better in think of our together our provide our combination these we've of of brought been seamless getting need delivery delivery, and And that I and communication leader team [indiscernible] better to Europe, marketing, in there final [ the management at and the has that pan-European we're us over mile our customers sales, I'm there. not ] under better have that As delivery in really of we better that Chief XX of products. allowed and last And pelometer I regional [indiscernible]. better to team said, Revenue even we've proud final really team months Officer, partnership and service, across more global better

get and ResMed's we're through of teams partnering products, think logistics have tenders partnering goal funnel, I'll into you the always that's help hand winning ensure competitive than primary XX, it's well for with what to the that ResMed and call was, in a I us the as our achieve allowed you team. supply up commercial and is share. we're of but to competing into is it winning So flow the them The communications those hard and customers more that. really combination care. Thank to AirSense funnel, the patients accounts, doing that that, see more numbers, But questions, now chain over up patients importantly good Kevin. best-in-class the the winning environment

comments? session. question-and-answer the reached you have further end do any of Mick, closing our We

say XX,XXX countries. I'm Thanks the Yes, all here. prepared ResMedians, to look, going XXX got they that. remarks to not

guys the quarter. Thank doing incredible things. our You shareholders to you all are amazing support, for

with to power the Let's XX do hand another for to that, And I'll up over and days. again out close Amy, let's you it call.

your we Mick. Thank listening do and Awesome. you, Thank questions, everyone, interest. for appreciate you, for your

Kevin, quarter hesitate now reach our does This or directly. out close don't first us conference have anything follow-up you to need XXXX call. questions call. If please to the conclude else, may you

Thank you. Live ResMed's Earnings First This Quarter Webcast. concludes Year XXXX Fiscal

disconnect. now You may