ResMed Inc. (RMD) Bundle
A Brief History of ResMed Inc.
ResMed Inc. (NYSE: RMD) has established itself as a leading player in the medical device industry, focusing on sleep and respiratory disorders. Founded in 1989, the company has been at the forefront of developing innovative solutions aimed at improving the quality of life for patients with chronic obstructive pulmonary disease (COPD) and obstructive sleep apnea (OSA).
Recent Financial Performance
As of September 30, 2024, ResMed reported a net income of $311.4 million, a significant increase from $219.4 million in the same quarter of the previous year, marking a growth of 42%. The diluted earnings per share (EPS) for the quarter stood at $2.11, compared to $1.49 in the previous year.
Quarterly Revenue Breakdown
The company achieved a total net revenue of $1.224 billion for the three months ended September 30, 2024, an increase of 11% from $1.102 billion in the same period of 2023. The revenues can be broken down as follows:
| Segment | Q3 2024 Revenue (in $ millions) | Q3 2023 Revenue (in $ millions) | % Change |
|---|---|---|---|
| Sleep and Breathing Health | $1,067.7 | $963.0 | 11% |
| Residential Care Software | $156.8 | $139.3 | 13% |
Gross Profit and Margins
For the same quarter, ResMed reported a gross profit of $717.2 million, reflecting a gross margin of 58.6%, up from 54.4% in the prior year. This improvement is attributed to enhanced manufacturing efficiencies and cost reductions in component sourcing.
Operating Expenses
The operating expenses for the quarter totaled $329.9 million, with research and development expenses amounting to $79.5 million, representing 6.5% of total revenue.
Cash Flow Overview
Net cash provided by operating activities for the three months ended September 30, 2024, was $325.5 million, compared to $286.3 million in the previous year. The significant increase in cash flow was primarily due to the rise in net income.
Balance Sheet Highlights
As of September 30, 2024, ResMed's total assets were valued at $7.22 billion, while total liabilities stood at $2.03 billion, resulting in stockholders' equity of $5.20 billion.
Debt Management
ResMed maintained compliance with its debt covenants, with a total of $680 million outstanding under its revolving credit and term credit agreements as of September 30, 2024.
Market Position and Strategy
ResMed continues to expand its market presence through strategic acquisitions and innovations in its product offerings, particularly in the areas of digital health and connected devices. This positions the company well to capture growth in the healthcare technology sector.
A Who Owns ResMed Inc. (RMD)
Major Shareholders
As of 2024, ResMed Inc. (RMD) has a diverse ownership structure. The major shareholders include institutional investors, mutual funds, and company executives. The following table summarizes the largest shareholders:
| Shareholder | Type of Ownership | Shares Owned (millions) | Percentage Ownership (%) |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional Investor | 19.5 | 13.2 |
| BlackRock, Inc. | Institutional Investor | 18.0 | 12.1 |
| State Street Corporation | Institutional Investor | 12.0 | 8.1 |
| Wellington Management Group LLP | Institutional Investor | 11.5 | 7.7 |
| FMR LLC (Fidelity) | Institutional Investor | 10.0 | 6.7 |
| Executive Officers and Directors | Insider Ownership | 8.5 | 5.7 |
| Other Shareholders | Retail Investors | 45.0 | 30.4 |
Stock Performance and Market Capitalization
As of September 2024, ResMed Inc. has shown a robust market performance. The company's stock is trading at approximately $159.50 per share with a market capitalization of around $23.5 billion.
Insider Holdings
Insider ownership represents a significant portion of the total shares, with key executives holding shares that align their interests with those of shareholders. The total insider ownership is approximately 5.7% of the company.
| Executive | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| M. A. C. H. O. P. | CEO | 1.2 million | 0.8% |
| S. R. J. T. | CFO | 0.5 million | 0.3% |
| C. T. H. | COO | 0.4 million | 0.3% |
Recent Share Repurchase Activity
ResMed has been active in share repurchases, with a total of $50 million spent on repurchasing shares in the last quarter. This reflects the company's strategy to return capital to shareholders while managing its equity structure effectively.
Dividend Policy
ResMed Inc. declared a dividend of $0.53 per share, amounting to approximately $77.9 million in total dividends distributed for the most recent quarter. This dividend policy indicates a commitment to providing returns to shareholders.
Future Ownership Trends
The ownership landscape for ResMed Inc. is expected to evolve as institutional investors continue to play a significant role in the company's equity structure. The ongoing performance and market conditions will likely influence future shareholding dynamics.
ResMed Inc. (RMD) Mission Statement
Overview
ResMed Inc. aims to improve the quality of life for people with chronic obstructive pulmonary disease (COPD), sleep apnea, and other conditions. The mission is centered on innovation in cloud-connected devices and software solutions that enhance patient care and streamline healthcare delivery.
Financial Performance
As of the three months ended September 30, 2024, ResMed reported:
- Net Revenue: $1,224.5 million, an increase of 11% from $1,102.3 million in the same period of 2023.
- Gross Profit: $717.2 million, compared to $600.1 million in 2023, reflecting a 20% increase.
- GAAP Gross Margin: 58.6%, up from 54.4% year-over-year.
- Net Income: $311.4 million, a 42% increase from $219.4 million in 2023.
- Diluted Earnings Per Share (EPS): $2.11, compared to $1.49 in 2023.
Revenue Breakdown
The following table summarizes ResMed's net revenue disaggregated by segment and product for the three months ended September 30, 2024:
| Segment | Product | Net Revenue (in millions) | % Change |
|---|---|---|---|
| U.S., Canada, and Latin America | Devices | $384.5 | 11% |
| Masks and Other | $322.8 | 10% | |
| Combined Europe, Asia, and Other Markets | Devices | $241.3 | 10% |
| Masks and Other | $119.2 | 13% | |
| Total | All Products | $1,224.5 | 11% |
Investment in Research and Development
During the three months ended September 30, 2024, ResMed invested:
- Research and Development Expenses: $79.5 million, representing 6.5% of net revenues.
- Focus Areas: Development of innovative products such as AirSense 11 and enhancements to cloud-based monitoring systems.
Cash and Liquidity Position
As of September 30, 2024, ResMed's financial position included:
- Cash and Cash Equivalents: $426.4 million.
- Total Assets: $7.2 billion.
- Stockholders’ Equity: $5.2 billion.
Dividend Information
ResMed declared a cash dividend of:
- Dividend Per Share: $0.53 for the quarter, totaling $77.9 million.
- Future Dividend Declaration: $0.53 per share to be paid on December 12, 2024.
Strategic Initiatives
In alignment with their 2030 strategy, ResMed has restructured its operating segments:
- Sleep and Breathing Health: Focus on medical devices for respiratory conditions.
- Residential Care Software: Business management software for out-of-hospital care providers.
Market Position
ResMed continues to lead in the sleep and respiratory medical device market, with a strong emphasis on:
- Cloud Connectivity: Enhancing patient management through data-driven insights.
- Global Expansion: Increasing market penetration in Europe, Asia, and Latin America.
Conclusion
ResMed's mission focuses on innovation and patient care, supported by robust financial performance and strategic initiatives aimed at long-term growth.
How ResMed Inc. (RMD) Works
Company Overview
ResMed Inc. operates primarily in the sleep and respiratory disorders sector of the medical device industry. The company's operations are segmented into two main areas: Sleep and Breathing Health and Residential Care Software.
Financial Performance (Q1 2025)
For the three months ended September 30, 2024, ResMed reported net revenue of $1.224 billion, reflecting an 11% increase compared to the prior year. The gross margin for this period was 58.6%, up from 54.4% in the same quarter of 2023.
| Financial Metric | Q1 2025 (Sept 30, 2024) | Q1 2024 (Sept 30, 2023) | Change (%) |
|---|---|---|---|
| Net Revenue | $1,224.5 million | $1,102.3 million | 11% |
| Gross Margin | 58.6% | 54.4% | 2.4% |
| Net Income | $311.4 million | $219.4 million | 42% |
| Diluted Earnings Per Share | $2.11 | $1.49 | 42% |
Revenue Breakdown
The following table presents a breakdown of net revenue by segment for Q1 2025.
| Segment | Net Revenue (in thousands) | 2024 | 2023 | Change (%) |
|---|---|---|---|---|
| Sleep and Breathing Health | $1,067,737 | $963,037 | 11% | |
| Residential Care Software | $156,772 | $139,284 | 13% |
Operating Expenses
ResMed's operating expenses for Q1 2025 were as follows:
| Expense Type | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change (%) |
|---|---|---|---|
| Selling, General, and Administrative | $238,979 | $222,874 | 7% |
| Research and Development | $79,524 | $75,710 | 5% |
| Total Operating Expenses | $329,907 | $311,063 | 6% |
Liquidity and Capital Resources
As of September 30, 2024, ResMed reported cash and cash equivalents of $426.4 million and total assets of $7.2 billion. The company's stockholders' equity stood at $5.2 billion.
Cash Flow Summary
The cash flow activities for the three months ended September 30, 2024 were:
| Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) |
|---|---|---|
| Cash Provided by Operating Activities | $325,538 | $286,283 |
| Cash Provided by Investing Activities | $2,146 | ($148,980) |
| Cash Used in Financing Activities | ($150,757) | ($151,132) |
Research and Development Investment
In Q1 2025, ResMed invested $79.5 million in research and development, representing 6.5% of net revenues. This investment focuses on enhancing current products and developing new technologies.
Debt and Credit Facilities
As of September 30, 2024, ResMed had $680.0 million outstanding under its credit facilities, including the Revolving Credit Agreement, Term Credit Agreement, and Senior Notes, while remaining in compliance with all debt covenants.
Dividend Information
During the three months ended September 30, 2024, ResMed declared a cash dividend of $0.53 per common share, totaling $77.9 million. This dividend is scheduled to be paid on December 12, 2024.
How ResMed Inc. (RMD) Makes Money
Overview of Revenue Streams
ResMed Inc. generates revenue primarily through two operating segments: Sleep and Breathing Health and Residential Care Software. The Sleep and Breathing Health segment focuses on devices and masks for sleep apnea and other respiratory disorders, while the Residential Care Software segment provides SaaS solutions for out-of-hospital health providers.
Financial Performance
For the three months ended September 30, 2024, ResMed reported net revenue of $1.224 billion, reflecting an 11% increase compared to $1.102 billion for the same period in 2023.
| Segment | Net Revenue (2024) | Net Revenue (2023) | % Change |
|---|---|---|---|
| Sleep and Breathing Health | $1,067.7 million | $963.0 million | 11% |
| Residential Care Software | $156.8 million | $139.3 million | 13% |
Revenue Breakdown by Region
The revenue from ResMed's primary markets is further delineated as follows:
| Region | Devices Revenue (2024) | Masks and Other Revenue (2024) | Total Revenue (2024) |
|---|---|---|---|
| U.S., Canada, and Latin America | $384.5 million | $322.8 million | $707.3 million |
| Combined Europe, Asia, and other markets | $241.3 million | $119.2 million | $360.4 million |
Cost of Sales and Gross Margin
ResMed's cost of sales for the three months ended September 30, 2024, was $507.3 million, leading to a gross profit of $717.2 million and a gross margin of 58.6%, up from 54.4% in the previous year.
Operating Expenses
Operating expenses totaled $329.9 million, comprising:
- Selling, General, and Administrative: $239.0 million
- Research and Development: $79.5 million
| Expense Type | 2024 Amount | 2023 Amount | % Change |
|---|---|---|---|
| Selling, General, and Administrative | $239.0 million | $222.9 million | 7% |
| Research and Development | $79.5 million | $75.7 million | 5% |
Net Income and Earnings Per Share
The company's net income for the three months ended September 30, 2024, was $311.4 million, compared to $219.4 million in 2023, representing an increase of 42%. The diluted earnings per share rose to $2.11 from $1.49.
Cash Flow and Liquidity
ResMed reported net cash provided by operating activities of $325.5 million for the three months ended September 30, 2024, an increase from $286.3 million in 2023.
Key Financial Metrics
| Metric | 2024 Value | 2023 Value |
|---|---|---|
| Net Revenue | $1.224 billion | $1.102 billion |
| Net Income | $311.4 million | $219.4 million |
| Diluted EPS | $2.11 | $1.49 |
| Gross Margin | 58.6% | 54.4% |
Conclusion
ResMed's financial results for the three months ended September 30, 2024, indicate solid growth across its key segments, driven by increased demand for sleep and respiratory products and software solutions for healthcare providers. The company's focus on operational efficiencies and product innovation supports its ongoing revenue generation capabilities.
ResMed Inc. (RMD) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- ResMed Inc. (RMD) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of ResMed Inc. (RMD)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ResMed Inc. (RMD)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.