U.S., Canada, and Latin America

- United States

Combined Europe, Asia, and other

- Rest of the World

Software as a Service

Total Revenue

aa88b4c8496125e804b4526232153031a25eba00e07c83c7df2ec8ea42fb6859

Adjustments for Non-Cash Items

Stock-Based Compensation

Changes in Working Capital

Capital Expenditures (CapEx)

Proceeds from / Repayments of Debt

Share Repurchases

Dividend Payments

Net Change in Cash

24df67279f9bcd0b1666fed8a7f96a0b4cbbcca5f114a32ce7ab9b6b393bc647

| Metric [USD Million] | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 | Q1 2025 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **U.S., Canada, and Latin America** | **615.3**  **[0000943819-23-000003_rmd-20221231.htm:6]**  | **629.1**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **660.9**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **638.4**  **[0000943819-23-000029_rmd-20230930.htm:7]**  | **669.3**  **[0001193125-24-014223_d685328dex991.htm:9]**  | **687.5**  **[0000943819-24-000008_rmd-20240331.htm:32]**  | **727.4**  **[0001193125-24-191487_d805836dex991.htm:9]**  | N/A |
| **Combined Europe, Asia, and other markets** | **301.7**  **[0000943819-23-000003_rmd-20221231.htm:6]**  | **351.0**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **322.6**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **324.7**  **[0000943819-23-000029_rmd-20230930.htm:7]**  | **348.5**  **[0001193125-24-014223_d685328dex991.htm:9]**  | **361.6**  **[0000943819-24-000008_rmd-20240331.htm:32]**  | **343.9**  **[0001193125-24-191487_d805836dex991.htm:9]**  | N/A |

38a11741ce4e8c05d8f681bf14a2aa63f3ae4aea07b4a687f9889e9a1ef2ae1b

ResMed Inc. is a global leader in digital health and cloud-connected medical devices, focusing on treating and managing respiratory disorders such as sleep apnea and chronic obstructive pulmonary disease (COPD), as well as other chronic diseases **[0000943819-24-000008_rmd-20240331.htm:29]** **[0000943819-24-000013_rmd-20240630.htm:113]** **[0000943819-24-000013_rmd-20240630.htm:4]**. The company designs innovative solutions to improve patient quality of life, reduce the impact of chronic disease, and lower healthcare costs by shifting care from hospitals to home settings **[0000943819-24-000008_rmd-20240331.htm:29]** **[0000943819-24-000013_rmd-20240630.htm:113]** **[0000943819-24-000013_rmd-20240630.htm:4]**. ResMed's product lines include medical devices like CPAP systems, mask systems, diagnostic products, and cloud-based software applications for connected care **[0000943819-24-000013_rmd-20240630.htm:113]** **[0000943819-24-000013_rmd-20240630.htm:18]** **[0000943819-24-000013_rmd-20240630.htm:4]**.

1. **Masks, Diagnostic Products, and Accessories** - Develops and markets a range of masks, diagnostic tools, and accessories essential for the treatment and management of respiratory disorders.
2. **Software as a Service (SaaS)** - Offers out-of-hospital software platforms that support healthcare providers in managing patient care outside of hospitals, enhancing operational efficiencies and patient outcomes.
3. **CPAP Systems** - Provides continuous positive airway pressure (CPAP) systems designed to treat sleep apnea and improve patient breathing during sleep.
4. **Cloud-Based Software Applications** - Delivers connected care solutions through cloud-based software, facilitating remote monitoring and management of patient health data.

aa0b11b827d5e7b2faad4dd9fb6ef5b21be128fb881604f5b76a23ad15397814

6260c85472ebe72c18f3d68a9a36d7f9f205137e97d8adc9541e59b47c33053a

| Metric [Unit: USD Million] | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 |
|----------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| **Total Revenue**          | **1,224.5**  **[0000943819-24-000027_rmd-20240930.htm:7]**  | **1,223.2**  **[0001193125-24-191487_d805836dex991.htm:0]**  | **1,197.0**  **[0001193125-24-113883_d817936dex991.htm:9]**  | **1,162.8**  **[0000943819-24-000003_rmd-20231231.htm:30]**  | **1,102.3**  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-23-000029_rmd-20230930.htm:27]**  | **1,122.1**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **1,116.9**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **1,033.7**  **[0000943819-23-000003_rmd-20221231.htm:6]**  |
| **Sleep and Respiratory Care** | **1,067.7**  **[0000943819-24-000027_rmd-20240930.htm:7]**  | **1,071.3**  **[0001193125-24-191487_d805836dex991.htm:9]**  | **1,049.0**  **[0000943819-24-000008_rmd-20240331.htm:32]** **[0001193125-24-113883_d817936dex991.htm:9]**  | **1,017.9**  **[0000943819-24-000003_rmd-20231231.htm:30]**  | **963.0**  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-23-000029_rmd-20230930.htm:27]**  | **983.5**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **980.1**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **917.0**  **[0000943819-23-000003_rmd-20221231.htm:6]**  |
| - **Devices**              | **625.8**  **[0000943819-24-000027_rmd-20240930.htm:7]**  | **635.1**  **[0001193125-24-191487_d805836dex991.htm:9]**  | **638.2**  **[0001193125-24-113883_d817936dex991.htm:9]**  | N/A     | N/A     | **602.4**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **607.9**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **542.8**  **[0000943819-23-000003_rmd-20221231.htm:6]**  |
| - **Masks and Other**      | **442.0**  **[0000943819-24-000027_rmd-20240930.htm:7]**  | **436.2**  **[0001193125-24-191487_d805836dex991.htm:9]**  | **410.8**  **[0001193125-24-113883_d817936dex991.htm:9]**  | N/A     | N/A     | **381.0**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **372.2**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **374.2**  **[0000943819-23-000003_rmd-20221231.htm:6]**  |
| **Software as a Service (SaaS)** | **156.8**  **[0000943819-24-000027_rmd-20240930.htm:7]**  | **151.9**  **[0001193125-24-191487_d805836dex991.htm:9]**  | **148.0**  **[0001193125-24-113883_d817936dex991.htm:9]**  | **144.9**  **[0000943819-24-000003_rmd-20231231.htm:30]**  | **139.3**  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-23-000029_rmd-20230930.htm:27]**  | **138.6**  **[0001193125-23-202850_d510491dex991.htm:9]**  | **136.8**  **[0000943819-23-000008_rmd-20230331.htm:29]**  | **116.8**  **[0000943819-23-000003_rmd-20221231.htm:6]**  |

24f90d6679378eb5d746b8dc097ba28d98994222832361055ed275fefa52f9c3

1. Given your expansion into adjacent areas like insomnia and COPD, can you elaborate on how you plan to effectively compete in these markets and what specific investments you're making to ensure growth in these areas?  **[RMD_3403694_5]** 
2. With major consumer tech companies like Apple and Samsung entering the sleep apnea detection space, how do you intend to differentiate ResMed's offerings to capture the potential increase in patient demand and prevent possible disruptions to your traditional business model?  **[RMD_3403694_16]** **[RMD_3403694_3]** 
3. Considering the price increases implemented last year due to supply chain challenges, what is your pricing strategy moving forward, and how do you anticipate this will impact your relationships with customers and your competitive position in the market?  **[RMD_3403694_13]** 
4. Despite increasing production capacity for the AirSense 11, you mentioned there might still be a backlog of patients waiting for this device; what challenges are you facing in fully meeting the demand, and how might this impact your market share if competitors fulfill orders more promptly?  **[RMD_3403694_18]** 
5. Your recent "tuck-in" acquisitions like Snap Technologies, Somnoware, and NightOwl have added new capabilities; can you clarify your M&A strategy going forward, specifically regarding the scale of acquisitions you're considering and how you plan to balance these investments with capital management as your free cash flow increases?  **[RMD_3403694_14]** 

e4de74b1a98dac6ff5036eb34d3aa33ef61ef6117a0f7c9028839be7c920348d

**Quarterly guidance for Q2 FY 2025:**
- **Net Interest Expense**: less than $1 million  **[RMD_3403694_7]**  (no prior guidance)

**Annual guidance for FY 2025:**
- **Effective Tax Rate**: 19% to 21%  **[RMD_3403694_7]**  (no change from 19% to 21%  **[RMD_3395783_7]** )  
- **Gross Margin**: 59% to 60%  **[RMD_3403694_6]**  (no change from 59% to 60%  **[RMD_3395783_6]** )  
- **SG&A Expenses**: 18% to 20%  **[RMD_3403694_6]**  (no change from 18% to 20%  **[RMD_3395783_6]** )  
- **R&D Expenses**: 6% to 7%  **[RMD_3403694_6]**  (no change from 6% to 7%  **[RMD_3395783_6]** )  
- **Share Buyback Program**: $75 million per quarter  **[RMD_3403694_7]**  (raised from $50 million per quarter  **[RMD_3395783_7]** )  

0d95e1ddba8b5008f79b76fc5e3f91303d02961364df08a3ac3ebd4c619dc9b9

### Q1 2025 Earnings Call
- **Issued Period**: Q1 2025
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Gross Margin**: Expected to be in the range of **59% to 60%**  **[RMD_3403694_6]** .
  2. **SG&A Expenses**: Expected to be in the range of **18% to 20%** of revenue  **[RMD_3403694_6]** .
  3. **R&D Expenses**: Expected to be in the range of **6% to 7%** of revenue  **[RMD_3403694_6]** .
  4. **Net Interest Expense**: Expected to be less than **$1 million** in the second quarter, with potential net interest income in the second half  **[RMD_3403694_7]** .
  5. **Effective Tax Rate**: Estimated to be in the range of **19% to 21%**  **[RMD_3403694_7]** .
  6. **Share Buyback Program**: Plan to purchase shares worth approximately **$75 million per quarter**  **[RMD_3403694_7]** .

### Q4 2024 Earnings Call
- **Issued Period**: Q4 2024
- **Guided Period**: FY 2025
- **Guidance**:
  1. **Effective Tax Rate**: Estimated to be in the range of **19% to 21%**  **[RMD_3395783_7]** .
  2. **Gross Margin**: Expected to be in the range of **59% to 60%**  **[RMD_3395783_6]** .
  3. **SG&A Expenses**: Expected to be in the range of **18% to 20%** of revenue, with Q1 FY '25 likely at the higher end  **[RMD_3395783_6]** .
  4. **R&D Expenses**: Expected to be in the range of **6% to 7%** of revenue  **[RMD_3395783_6]** .
  5. **Interest Expense**: Expected to be in the range of **$1 million to $3 million** in Q1 FY '25, with potential net interest income in the second half  **[RMD_3395783_6]** .
  6. **Share Buyback Program**: Plan to repurchase shares worth approximately **$50 million per quarter**  **[RMD_3395783_7]** .
  7. **Residential Care Software Business Growth**: Maintain **high single-digit to low double-digit growth**  **[RMD_3395783_4]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Final quarter of FY 2024 and FY 2025
- **Guidance**:
  1. **Interest Expense**: Expected to be in the range of **$7 million to $9 million** in the final quarter of FY 2024  **[RMD_3380800_9]** .
  2. **Effective Tax Rate**: Estimated to be in the range of **19% to 21%** for FY 2024  **[RMD_3380800_9]** .
  3. **SG&A Expenses**: Expected to be in the range of **18% to 20%** for the balance of FY 2024  **[RMD_3380800_8]** .
  4. **R&D Expenses**: Expected to be in the range of **6% to 7%** for the balance of FY 2024  **[RMD_3380800_8]** .
  5. **Gross Margin**: Expected improvement over FY 2025, despite short-term impacts  **[RMD_3380800_10]** **[RMD_3380800_17]** .
  6. **Software as a Service Business Growth**: High single-digit growth for FY 2024, aiming for double-digit growth in FY 2025  **[RMD_3380800_6]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: H2 FY 2024
- **Guidance**:
  1. **SG&A Expenses**: Expected to be in the range of **18% to 20%** of revenue  **[RMD_3370693_7]** .
  2. **R&D Expenses**: Expected to be in the range of **6% to 7%** of revenue  **[RMD_3370693_8]** .
  3. **Interest Expense**: Expected to be in the range of **$10 million to $12 million** per quarter  **[RMD_3370693_8]** .
  4. **Effective Tax Rate**: Estimated to be in the range of **19% to 21%**  **[RMD_3370693_8]** .
  5. **Share Buyback Program**: Plan to purchase approximately **$50 million** per quarter  **[RMD_3370693_8]** .

b5f4e202ac64954143d538fcc6bd7035912383bca40875429c02f3101966218f

- Philips BV; ongoing product recall may impact ResMed's business  **[0000943819-24-000013_rmd-20240630.htm:47]** **[0000943819-24-000013_rmd-20240630.htm:25]** 
- Fisher & Paykel Healthcare Corporation Limited  **[0000943819-24-000013_rmd-20240630.htm:25]** 
- DeVilbiss Healthcare  **[0000943819-24-000013_rmd-20240630.htm:25]** 
- Apex Medical Corporation  **[0000943819-24-000013_rmd-20240630.htm:25]** 
- BMC Medical Co. Ltd.  **[0000943819-24-000013_rmd-20240630.htm:25]** 
- React Health Corporation  **[0000943819-24-000013_rmd-20240630.htm:25]** 
- Lowenstein  **[0000943819-24-000013_rmd-20240630.htm:25]** 

b5991287b9d6dbee86dc68a6f970a05702a395ee50e2d117b354bd3957f00044

Sleep and Respiratory Care

- Devices

- Masks and Other

Software as a Service (SaaS)

29de19727b9feb9f34b917fd748f0a77c0c4e3f8d9a69968e117c26694e149be

- **ResMed is achieving device sales growth significantly above market rates**, with **U.S. devices up 12%** and **devices in Europe, Asia, and Rest of World up 9%**, driven by effective demand generation strategies such as rePAP and ReSupply, leading to strong market share gains.  **[RMD_3413782_13]** ,  **[RMD_3413782_16]**
- **ResMed is well-positioned to benefit from emerging megatrends**, including increased sleep apnea awareness from **consumer tech companies like Apple and Samsung**, and new **GLP-1 weight loss drugs** like **Eli Lilly's Zepbound**, which are expected to drive sustained increases in patient flow over the coming years.  **[RMD_3413782_9]** ,  **[RMD_3413782_15]**
- **Gross margin expansion initiatives** are expected to drive improved profitability, with guidance of **59% to 60% gross margins** in the second half of fiscal year 2025, supported by manufacturing optimization, procurement initiatives, scale benefits, and new product rollouts.  **[RMD_3413782_17]** ,  **[RMD_3413782_8]**

d0d06fb4ea3c4b4a3c03bf1535a527f6b5e31d3293aa2706980f9ca5f9ed2b83

- **ResMed's device growth may not be sustainable**, as the company acknowledges that market growth is only **mid-single-digit**, and maintaining double-digit growth requires significant effort and is "**not a given**."  **[RMD_3413782_13]** ,  **[RMD_3413782_16]**
- **Gross margin improvements are uncertain**, with the company currently at the **low end** of its **59%-60% guidance**. Factors such as product mix, freight costs, and timing of benefits from new products may hinder margin expansion, and the company admits these are "**probably still a watch and wait**."  **[RMD_3413782_17]**
- **Expected benefits from GLP-1 drugs and consumer wearables may take time to materialize**, with the CEO stating they are in the "**very early stages**" of seeing any flow from these megatrends, and significant impact is expected over the "**coming 1, 3, 5 quarters**" and "**1, 3, 5 years and beyond**," potentially delaying anticipated growth.  **[RMD_3413782_16]** ,  **[RMD_3413782_9]**

1bf943c450b2f867dfaf86a1f46dbf2a7021381a07be7ae4c24e0af2a2e5beee

1. **Devices Growth and GLP-1 Impact**  
   **Q:** Is GLP-1 starting to impact devices growth?  
   **A:** Michael Farrell noted that U.S. devices grew by **12%** year-on-year, and international devices grew by **9%** in Europe, Asia, and Rest of World.  **[RMD_3413782_9]**  He does not see a significant material impact from GLP-1 drugs yet.  **[RMD_3413782_9]**  The impact is expected over the coming **1, 3, and 5 quarters**, gradually improving patient flow.  **[RMD_3413782_9]**  As Lilly's Zepbound begins direct-to-consumer advertising and obtains broader reimbursement, ResMed anticipates that combination therapy of CPAP and GLP-1 drugs will be the future of obstructive sleep apnea treatment.  **[RMD_3413782_14]** 

2. **Gross Margin Outlook**  
   **Q:** Do you expect gross margins to improve in the second half?  
   **A:** Brett Sandercock stated they guided gross margins in the range of **59% to 60%**, currently at the low end.  **[RMD_3413782_17]**  They aim to improve margins through manufacturing optimization, procurement initiatives, and scale benefits.  **[RMD_3413782_17]**  Factors like product mix, freight costs, and new product rollouts could influence margins.  **[RMD_3413782_17]**  They expect to maintain margins within the guided range in the medium term.  **[RMD_3413782_17]** 

3. **Device Growth Sustainability**  
   **Q:** What drove device growth above market rates, and is it sustainable?  
   **A:** Michael Farrell explained that while market growth for devices is mid-single digits, ResMed aims to exceed that through demand generation and initiatives like ReSupply and rePAP.  **[RMD_3413782_13]**  They experienced strong device growth this quarter, with U.S. mask growth at **12%**.  **[RMD_3413782_16]**  Growth is driven by both new patients and those replacing devices older than five years.  **[RMD_3413782_13]**  Maintaining momentum involves focusing on demand capture, conversion, and optimizing the patient pathway.  **[RMD_3413782_16]** 

4. **FX Impact on Margins**  
   **Q:** How is foreign exchange affecting your margins?  
   **A:** Brett Sandercock noted a **30 basis point** sequential impact on gross margin due to FX.  **[RMD_3413782_8]**  The net impact was a negative **$0.02** on EPS for the quarter.  **[RMD_3413782_8]**  Looking forward, gross margin impact is expected to be relatively neutral in Q3, with slight benefits in R&D and SG&A expenses.  **[RMD_3413782_8]** 

5. **One-off Purchases and Tariffs**  
   **Q:** Were there any bulk purchases or tariff impacts this quarter?  
   **A:** Michael Farrell confirmed there were **no** bulk purchases or one-off events affecting the quarter's results.  **[RMD_3413782_10]**  Potential tariffs are not expected to impact ResMed due to their diversified manufacturing in Sydney, Singapore, and Atlanta.  **[RMD_3413782_10]**  However, tariffs could negatively affect competitors importing from China or manufacturing in Mexico.  **[RMD_3413782_10]** 

6. **Scaling Sleep Testing Capacity**  
   **Q:** How are you addressing capacity constraints in sleep testing?  
   **A:** Michael Farrell discussed expanding home sleep apnea testing to meet increased demand.  **[RMD_3413782_11]**  ResMed offers products like **ApneaLink Air** and **NightOwl** to facilitate scalable home testing.  **[RMD_3413782_11]**  They are partnering with sleep labs and testing companies to reduce patient wait times and efficiently manage the influx of new patients over the next **1, 3, and 5 quarters and years**.  **[RMD_3413782_11]** 

7. **SaaS Revenue Growth**  
   **Q:** Can you update us on your SaaS business growth?  
   **A:** Michael Farrell reported that their SaaS business saw group growth of **8%**.  **[RMD_3413782_12]**  **MEDIFOX**, their German software business, is growing strongly ahead of this rate.  **[RMD_3413782_12]**  They expect **high single-digit** revenue growth and **double-digit** net operating profit growth in their residential care software business.  **[RMD_3413782_12]** 

6610d94a300b89a4097e790f842bf3088c94be4157de3258fc94ac1e5af0f370

ResMed Q2 FY25: U.S. device sales +12% vs mid-single-digit market—strong share gains. But sustaining double-digit growth isn’t guaranteed. Gross margin at low end of 59-60% target. GLP-1 tailwinds still early; meaningful impact expected over coming quarters.

882df2cc8df03b3946627a7e62fa4e754db65cbe4f658bbce8c0171cacc3bc97

2febe3595480c95733386ef00cfabc7919cf27798e21893be29df7c81adb875c

**Annual guidance for FY 2025:**
- **Effective tax rate**: 19% to 21%  **[RMD_3413782_7]**  (no change from prior guidance  **[RMD_3403694_7]** )

a653db7469027bae73e95f79ba1d0c2db4ec045ee4f2d7f6c1510e8382532318

| Name                  | Position                                | Start Date          | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|-----------------------|-----------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Michael "Mick" Farrell| Chairman of the Board and CEO           | March 2013 (CEO), January 2023 (Chairman) | Michael "Mick" Farrell has been serving as the **Chief Executive Officer and a director of ResMed Inc. since March 2013**. He was appointed as the **Chairman of the Board in January 2023**. Mr. Farrell joined ResMed in 2000 and has held various leadership roles, including President of the Americas region from 2011 to 2013  **[0000943819-24-000019_rmd-20241003.htm:13]** **[0000943819-23-000019_rmd-20231005.htm:13]** . |
| Bobby Ghoshal         | Chief Commercial Officer, SaaS          | November 2023       | **Bobby Ghoshal** was appointed as the **Chief Commercial Officer, SaaS** at ResMed in **November 2023**. Prior to this role, he served as the President of ResMed's SaaS business from **September 2021 to November 2023**  **[0000943819-24-000019_rmd-20241003.htm:46]** **[0000943819-23-000019_rmd-20231005.htm:42]** .                                                                                                                           |
| Justin Leong          | Chief Product Officer                   | November 2023       | Justin Leong was appointed as the **Chief Product Officer** of ResMed in **November 2023**. Prior to this role, he held progressively increasing responsibilities for ResMed's Asian and Latin American markets from 2018 to 2023  **[0000943819-24-000019_rmd-20241003.htm:46]** .                                                                                                                         |
| Michael "Mike" Rider  | Global General Counsel and Secretary    | July 1, 2023        | Michael "Mike" Rider was appointed as the **Global General Counsel and Secretary** of ResMed effective **July 1, 2023**. Prior to this role, he served as ResMed's senior vice president, deputy global general counsel, and legal business partner for ResMed's sleep and respiratory care team from July 2019 through June 2023  **[0000943819-24-000019_rmd-20241003.htm:46]** **[0000943819-23-000019_rmd-20231005.htm:42]** .                         |
| Brett Sandercock      | Chief Financial Officer                 | January 2006        | Brett Sandercock has been serving as the **Chief Financial Officer** of ResMed since **January 2006**. Prior to this role, he was ResMed's Vice President of Treasury and Finance from **November 2004 until December 2005**  **[0000943819-23-000019_rmd-20231005.htm:43]** **[0000943819-24-000019_rmd-20241003.htm:47]** .                                                                                                                           |
| Christopher DelOrefice| Board Member and Audit Committee Member | August 15, 2024     | Christopher DelOrefice is a **Board Member and Audit Committee Member** at ResMed Inc. (RMD). He was elected to the board during the **August 15, 2024** board meeting and appointed to the audit committee. DelOrefice is a seasoned financial executive with extensive experience in the medical technology industry  **[0000943819-24-000019_rmd-20241003.htm:10]** **[0001127602-24-022388_xslF345X02/form3.xml:0]** **[0000943819-24-000019_rmd-20241003.htm:23]** .                                |

1794a348b4e32b3568dced59d32b4e4f4b63eda15aed5a0444daacdb9e710b08

19d5bfcc3b06fcc80e50e9d9a70038a8f80a1ce2fe715f6ce93dc346949d7ef1

| Program Details          | Program 1          |
|--------------------------|--------------------|
| Approval Date            | February 21, 2014  **[0000943819-24-000027_rmd-20240930.htm:45]** **[0000943819-24-000027_rmd-20240930.htm:37]**  |
| End Date/Duration        | No specified end date  **[0000943819-24-000027_rmd-20240930.htm:45]** **[0000943819-24-000027_rmd-20240930.htm:37]**  |
| Total additional amount  | 20.0 million shares  **[0000943819-24-000027_rmd-20240930.htm:45]** **[0000943819-24-000027_rmd-20240930.htm:37]**  |
| Remaining authorization amount | 11.8 million shares (as of 2024-12-21)  **[0000943819-24-000027_rmd-20240930.htm:45]** **[0000943819-24-000027_rmd-20240930.htm:37]**  |
| Details                  | The program may be accelerated, suspended, delayed, or discontinued at any time at the discretion of the board of directors  **[0000943819-24-000027_rmd-20240930.htm:45]** **[0000943819-24-000027_rmd-20240930.htm:37]**  |

fb346f14291a6b6f458aab833a57b73cf7efaf5c2794c87442d81f3d98c644b7

1396d24f278c2dfc412ddf60b2e269a3e689c69dbf0f3d42d2a4d67ab4f22bfd

- Total Revenue: $1,282.1 million (up **10%** YoY)  **[0000943819-24-000003_rmd-20231231.htm:7]** **[0000943819-25-000004_rmd-20241231.htm:8]** **[0000943819-25-000004_rmd-20241231.htm:3]** **[0000943819-25-000004_rmd-20241231.htm:35]** **[0000943819-25-000004_rmd-20241231.htm:13]** **[0000943819-25-000004_rmd-20241231.htm:36]**   
- Sleep & Respiratory Care: $1,125.6 million (up **11%** YoY)  **[0000943819-24-000003_rmd-20231231.htm:7]** **[0000943819-25-000004_rmd-20241231.htm:8]** **[0000943819-25-000004_rmd-20241231.htm:3]** **[0000943819-25-000004_rmd-20241231.htm:35]** **[0000943819-25-000004_rmd-20241231.htm:13]** **[0000943819-25-000004_rmd-20241231.htm:36]**   
- Software as a Service (SaaS): $156.5 million (+8% YoY)  **[0000943819-24-000003_rmd-20231231.htm:7]** **[0000943819-25-000004_rmd-20241231.htm:8]** **[0000943819-25-000004_rmd-20241231.htm:3]** **[0000943819-25-000004_rmd-20241231.htm:35]** **[0000943819-25-000004_rmd-20241231.htm:13]** **[0000943819-25-000004_rmd-20241231.htm:36]**   
- U.S., Canada, and Latin America: $748.9 million (up **12%** YoY)  **[0000943819-24-000003_rmd-20231231.htm:7]** **[0000943819-25-000004_rmd-20241231.htm:35]**   
- Combined Europe, Asia, and Other: $376.6 million (+8% YoY)  **[0000943819-24-000003_rmd-20231231.htm:7]** **[0000943819-25-000004_rmd-20241231.htm:35]**   

355c47b852e25856c3ed68210fa2be68d1effd8e14c871675f7922e1d8ede881

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 1994  **[0000943819-24-000013_rmd-20240630.htm:134]**    | Present  | Current auditor   |

9394031b5f62cdf30dbe89a1c9af88f5109eb0aa5d73f61d70435c6ff641adca

2d3c38fe5d10a375d2517f0d5178a91fecfc4f53af819a6d016766515ed4bc80

b84771b0bb249af9efdec7ec78328b9123b2f3ffd900bf7edac9ac4ebb74ceaf

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- **Potential market share loss due to Philips re-entering the market:**
- **Gross margin pressures from increased freight costs due to global conflicts:**
- **Slower than expected transition to AirSense 11 platform due to regulatory complexities:**

8174962a9f178c6c8aeef562b0cfb7ba0a9c2dfa7a466e0272c1dea072280744

- Total Revenue: $1,224.5 million (+11% YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:11]** **[0000943819-24-000027_rmd-20240930.htm:3]**   
- Sleep & Respiratory Care: $1,067.7 million (+11% YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:11]** **[0000943819-24-000027_rmd-20240930.htm:3]**   
- Software as a Service: $156.8 million (**+13%** YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:11]** **[0000943819-24-000027_rmd-20240930.htm:3]**   
- U.S., Canada, and Latin America: $707.3 million (+11% YoY)  **[0000943819-24-000027_rmd-20240930.htm:7]** **[0000943819-23-000029_rmd-20230930.htm:27]**   
- Combined Europe, Asia, and Other: $360.4 million (+11% YoY)  **[0000943819-24-000027_rmd-20240930.htm:7]** **[0000943819-23-000029_rmd-20230930.htm:27]**   
- Operating Income: $387.3 million (**+34%** YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:3]** **[0000943819-24-000027_rmd-20240930.htm:2]** **[0000943819-24-000027_rmd-20240930.htm:5]** **[0000943819-23-000029_rmd-20230930.htm:5]** **[0000943819-23-000029_rmd-20230930.htm:2]** **[0000943819-23-000029_rmd-20230930.htm:3]** **[0000943819-23-000029_rmd-20230930.htm:10]**   
- Net Income: $311.4 million (**+42%** YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:3]** **[0000943819-24-000027_rmd-20240930.htm:2]** **[0000943819-24-000027_rmd-20240930.htm:5]** **[0000943819-23-000029_rmd-20230930.htm:5]** **[0000943819-23-000029_rmd-20230930.htm:2]** **[0000943819-23-000029_rmd-20230930.htm:3]** **[0000943819-23-000029_rmd-20230930.htm:10]**   
- Diluted EPS: $2.11 (**+42%** YoY)  **[0000943819-23-000029_rmd-20230930.htm:7]** **[0000943819-24-000027_rmd-20240930.htm:11]** **[0000943819-24-000027_rmd-20240930.htm:3]** **[0000943819-24-000027_rmd-20240930.htm:5]** **[0000943819-24-000027_rmd-20240930.htm:2]** **[0000943819-23-000029_rmd-20230930.htm:5]** **[0000943819-23-000029_rmd-20230930.htm:2]** **[0000943819-23-000029_rmd-20230930.htm:3]** **[0000943819-23-000029_rmd-20230930.htm:10]**   

e335bf918240f2f963d0c941e1c1934a933c4da8a0747dc9d4979726457c69dd

ef104d091835181ca00c2c627c0799725454134dc47f845b6aaf60cf99779c1b

a3a98807d48e97ed82a0715bf2a96c0b2e81098bb842706db0956a78f43afac8

| Year | Amount Due (Millions) | Debt Type | Interest Rate (%) | % of Total Debt |
|------|-----------------------|-----------|-------------------|-----------------|
| 2026 | 250.0 **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** | Senior Notes | 3.24 **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** | 37.2% = (250 / 672.765) * 100 **[0000943819-25-000004_rmd-20241231.htm:17]** **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** |
| 2027 | N/A | Revolving & Term Credit Agreement | 5.2 **[0000943819-25-000004_rmd-20241231.htm:19]** | N/A |
| 2029 | 250.0 **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** | Senior Notes | 3.45 **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** | 37.2% = (250 / 672.765) * 100 **[0000943819-25-000004_rmd-20241231.htm:17]** **[0000943819-25-000004_rmd-20241231.htm:46]** **[0000943819-25-000004_rmd-20241231.htm:20]** |

59c69ac0e2ffe9e543a6c77aab0a7900a6ed3483f19aab78919dc7d1d97d442b

1. **Gross Margin Outlook**  
   **Q:** How sustainable is the gross margin recovery into Q4 and FY '25?  
   **A:** Management explained that gross margin improvements are driven by **freight expense reductions** and **manufacturing efficiencies**, and they expect to **improve gross margin over FY '25**.  **[RMD_3380800_10]** **[RMD_3380800_11]** **[RMD_3380800_17]**  While acknowledging that gross margin is hard to predict due to factors like product mix and timing of cost improvements, they are focusing on continuous improvement programs to drive further gains.  **[RMD_3380800_10]** **[RMD_3380800_17]** 

2. **Impact of GLP-1 Drugs**  
   **Q:** How are GLP-1 weight loss drugs affecting ResMed's business?  
   **A:** ResMed is seeing that patients on GLP-1 drugs have a **10.5% higher propensity to start CPAP therapy** and increased adherence rates, indicating that these drugs are bringing more patients into the healthcare system.  **[RMD_3380800_13]** **[RMD_3380800_14]** **[RMD_3380800_18]** **[RMD_3380800_20]**  Management views this as a **tailwind**, with no evidence of patients discontinuing CPAP therapy due to GLP-1 drugs.  **[RMD_3380800_20]** 

3. **Competitor Dynamics**  
   **Q:** Are you seeing pricing pressure from competitors like Philips, and when might they return to the U.S. market?  
   **A:** Management stated that competitors returning to markets are **pricing for value** but are not impacting ResMed's share as the global market leader.  **[RMD_3380800_12]** **[RMD_3380800_23]**  They indicated uncertainty around when Philips might reenter the U.S. market due to a **severe consent decree** with significant constraints.  **[RMD_3380800_23]** 

4. **New Patient Starts**  
   **Q:** How are new patient starts trending, especially in the U.S.?  
   **A:** New patient starts are **strong and steady**, with U.S. device growth at **7%** despite a tough comparison to **49% growth** in the prior year.  **[RMD_3380800_13]**  Management noted that GLP-1 patients are contributing to growth, and they see a **long-term opportunity** from this segment.  **[RMD_3380800_13]** 

5. **Demand Generation Initiatives**  
   **Q:** What are your plans for market demand drivers and demand generation?  
   **A:** ResMed is investing in global marketing efforts, including the establishment of a **Global Chief Marketing Officer**.  **[RMD_3380800_16]**  They plan to scale demand generation globally, using **social media and other media-driven campaigns** with a focus on measurable ROI.  **[RMD_3380800_16]** 

6. **AirSense 11 Rollout**  
   **Q:** What is the status of the AirSense 11 availability and adoption?  
   **A:** AirSense 11 is already the **primary platform in the U.S.**, making up the **majority of devices** sold and growing quickly.  **[RMD_3380800_21]**  ResMed is working on regulatory clearances to introduce AirSense 11 into **all countries** and plans to make it the main platform globally.  **[RMD_3380800_21]** 

7. **Inventory Levels**  
   **Q:** How do you view inventory levels moving forward?  
   **A:** Inventory levels have decreased significantly and are now **close to target**.  **[RMD_3380800_22]**  Management expects inventory to remain around current levels, with a focus on balancing supply and demand.  **[RMD_3380800_22]** 

19fce856b42f89cc772be49546a79f8c0cea031ecfe5f7414304fd3931f1d860

1. **Impact of GLP-1s on Future Growth**  
   **Q:** Will GLP-1s affect CPAP market growth?  
   **A:** Michael Farrell believes GLP-1s will lead to **greater growth of patients** entering the treatment pool over time. Data shows a **10% higher propensity** for patients on GLP-1s to start PAP therapy.  **[RMD_3370693_9]**  ResMed aims to leverage this trend, although the impact won't be immediate.  **[RMD_3370693_9]** 

2. **Surmount OSA Study Implications**  
   **Q:** How will Eli Lilly's Surmount OSA study affect ResMed?  
   **A:** The study may show **10–30% weight loss** leading to significant **AHI reductions**.  **[RMD_3370693_10]**  Farrell expects that combination therapy of GLP-1s and CPAP will remain necessary, as weight loss alone may not fully treat sleep apnea.  **[RMD_3370693_10]**  ResMed anticipates positive effects from increased attention to sleep health.  **[RMD_3370693_10]** 

3. **Competition from Philips Resuming Shipments**  
   **Q:** Is Philips regaining share in OUS markets?  
   **A:** Philips has resumed competition in **tens of countries** in Europe and Asia.  **[RMD_3370693_11]**  However, ResMed continues to **win and take share**, focusing on growing the market with superior technology.  **[RMD_3370693_11]**  Farrell looks forward to healthy competition as Philips returns.  **[RMD_3370693_11]** 

4. **Gross Margins and Shipping Costs**  
   **Q:** Are price increases and shipping disruptions affecting margins?  
   **A:** Some price increases are **progressive** due to contractual arrangements, impacting margins over the back half of fiscal '24.  **[RMD_3370693_13]**  Shipping disruptions, particularly through the Red Sea, are causing increased lead times and **higher freight rates**, potentially leading to headwinds in Q4.  **[RMD_3370693_13]** 

5. **Restructuring Charges and Recall Costs**  
   **Q:** Will there be further restructuring or recall costs?  
   **A:** The **material restructuring** is behind us.  **[RMD_3370693_14]**  The cost related to the **mask with magnets recall** was fully accounted for this quarter  **[RMD_3370693_14]** , and no further costs are expected.  **[RMD_3370693_14]** 

6. **Transition to AirSense 11 Platform**  
   **Q:** When will AirSense 11 fully replace AirSense 10?  
   **A:** ResMed is working to obtain regulatory approval in all **140 countries**.  **[RMD_3370693_15]**  AirSense 11 has launched in top countries and **recently in Japan**.  **[RMD_3370693_15]**  The AirSense 10 platform remains available and **unconstrained** until the transition is complete.  **[RMD_3370693_15]** 

7. **Mask Sales Performance**  
   **Q:** Why were mask sales weaker in some regions?  
   **A:** Global mask sales grew **9%**, with **4% growth** in Europe, Asia, and Rest of World this quarter compared to **14%** last year.  **[RMD_3370693_17]**  The variation is due to timing of contracts moving from December to January, and overall, ResMed is **holding share**.  **[RMD_3370693_17]** 

8. **Impact of Mask Magnet Recall**  
   **Q:** Did the magnet recall affect mask sales?  
   **A:** The **10% growth** in U.S., Canada, and Latin America masks indicates strong performance.  **[RMD_3370693_18]**  The magnet field safety notice had **no impact** on quarterly sales.  **[RMD_3370693_18]**  No product was removed; plastic clips are available as an option for those who need them.  **[RMD_3370693_18]** 

9. **Compliance Coach and 2030 Strategy**  
   **Q:** How does Compliance Coach fit into 2030 goals?  
   **A:** Compliance Coach is an **AI tool** aiming to lower cost to serve and improve patient adherence.  **[RMD_3370693_12]**  Success is measured by adherence rates at **day 90, day 365, and beyond**.  **[RMD_3370693_12]**  It's part of ResMed's **product-led, customer-centric, brand-enhanced** strategy.  **[RMD_3370693_12]** 

09b51c942bf164929bead6123ba40c0a7f651886c8e8d90c7caacb8ebdeaab2f

- **Device revenue growth came in lower than expected**, with only a **6% increase**, which may indicate challenges in driving new patient growth and reliance on price increases rather than volume growth.  **[RMD_3395783_8]** ,  **[RMD_3395783_10]**
- **Rising freight costs are a continuing headwind** that could pressure margins, with management indicating uncertainty whether these cost increases are **permanent or transitory**, potentially impacting profitability.  **[RMD_3395783_13]** ,  **[RMD_3395783_11]**
- The re-entry of competitors like **Philips** into key markets could intensify competition, potentially impacting ResMed's market share and pricing power, especially in **Europe, Asia, and Rest of World** regions.  **[RMD_3395783_9]**

547e77542e21fe66e6d55d1714f1bdb540f0475a4adff653c030384153941b22

1. **Competition with Philips**  
   **Q:** How is ResMed buffered from price sensitivity if Philips returns?  
   **A:** ResMed is confident in its competitive position even if Philips re-enters the market. The CEO emphasized strong growth in devices (**9%**) and masks (**11%**) in Europe, Asia, and the rest of the world, where Philips is already present.  **[RMD_3403694_17]**  ResMed has a sustainable competitive advantage with its digital health ecosystem, including MyAir and AirView platforms. The company focuses on innovation and believes it will continue to compete effectively.

2. **M&A Priorities and Capital Allocation**  
   **Q:** What are your M&A priorities and capital management plans as free cash flow increases?  
   **A:** ResMed is actively pursuing tuck-in acquisitions to enhance its capabilities.  **[RMD_3403694_14]**  Recent examples include Snap Technologies, Somnoware, and Ectosense's NightOwl—all acquired for relatively small amounts. These acquisitions aim to expand ResMed's digital health offerings. The CFO stated that future tuck-in acquisitions could range from **$100 million to $500 million**.  **[RMD_3403694_14]**  Capital management will also include increasing share buybacks and investing in R&D.

3. **Pricing Strategy and Market Environment**  
   **Q:** Will price increases continue to be part of your strategy?  
   **A:** ResMed shared some cost increases with customers during the supply chain crisis but expects a benign pricing environment going forward.  **[RMD_3403694_13]**  The company may adjust prices on specific components where costs remain high, like tubing and humidity. Overall, they anticipate prices to level out as freight and component costs stabilize.

4. **Competition in Europe and Market Share**  
   **Q:** Are you seeing a declining presence from Philips in Europe, allowing you to gain market share?  
   **A:** ResMed continues to compete effectively in Europe, achieving **9%** device growth in Europe, Asia, and the rest of the world.  **[RMD_3403694_19]**  While not specifically attributing growth to Philips' decline, ResMed credits its improved customer service, better marketing, and supply chain logistics. The competitive environment remains as it was, but ResMed is winning accounts and tenders.

5. **Impact of Samsung and Apple Entering Sleep Apnea Detection**  
   **Q:** Are you seeing pull-through from Samsung and Apple's sleep apnea detection technologies?  
   **A:** It's still early days for these technologies.  **[RMD_3403694_10]**  ResMed believes that increased awareness from consumer tech companies is positive for the sleep health market but doesn't expect immediate impact on sales. The company is tracking **989,000** patients with combined GLP-1 and PAP prescriptions, indicating some tailwind effect.

6. **Drivers of Mask and Device Growth**  
   **Q:** What are the drivers behind the double-digit growth in mask sales?  
   **A:** Growth is driven by new patients, increased resupply rates, and possibly higher masks per patient per year.  **[RMD_3403694_11]**  Mask and accessories growth in U.S., Canada, and Latin America was **10%** on a strong **23%** prior-year comp.  **[RMD_3403694_11]**  ResMed is expanding its Brightree and Snap resupply technologies and sees room for further growth as not all patients utilize the full reimbursement available.

7. **Working Capital and Inventory Levels**  
   **Q:** Why was there an inventory build impacting operating cash flow?  
   **A:** ResMed increased inventory levels to mitigate increased freight costs and manage sea freight.  **[RMD_3403694_12]**  The company is rebalancing freight strategies, which temporarily increases inventory in transit. Inventory levels may rise slightly in Q2 but are expected to stabilize afterward.

8. **Production and Backlog of AirSense 11**  
   **Q:** Is production of AirSense 11 still on track, and is there a backlog?  
   **A:** Production is on track, with the Singapore plant operating at full capacity.  **[RMD_3403694_18]**  In the U.S., the vast majority of devices sold are AirSense 11, comprising well over **50%** of sales.  **[RMD_3403694_18]**  There might be a slight backlog from consumers waiting for the AirSense 11, but ResMed sees a long runway and strong momentum for the product.

9. **Strategies to Capture Demand from Wearables**  
   **Q:** What strategies are you considering to capture increased demand from wearables?  
   **A:** ResMed focuses on demand generation, capture, and conversion.  **[RMD_3403694_16]**  The company is developing products like Dawn, an AI interaction platform, and integrating acquisitions like Somnoware and NightOwl to create a seamless, end-to-end experience for individuals seeking sleep health solutions.  **[RMD_3403694_16]** 

10. **Rest of World Device Growth and AirSense 11 Impact**  
    **Q:** Did AirSense 11 contribute to the 9% Rest of World device growth?  
    **A:** While AirSense 11 contributed in countries where it's launched, the vast majority of growth is from volume and market share gains.  **[RMD_3403694_9]**  ResMed is holding or taking share in markets with full competition and attributes success to having the smallest, quietest, most comfortable devices.

11. **Applying New Fabric Technology to Other Masks**  
    **Q:** Can the new N30i fabric technology be applied to other masks, and is there a price premium?  
    **A:** Yes, ResMed plans to apply the new fabric technology to other masks over time.  **[RMD_3403694_15]**  The AirTouch N30i will have a price premium due to higher production costs, but the company expects improved fit rates, lower return rates, and increased adherence, offering a strong return on investment.

12. **Preorders for New Mask**  
    **Q:** Do you have any sense of preorders for the new mask?  
    **A:** Preorders are minimal and not material to global financials at this point.  **[RMD_3403694_8]**  However, there's significant excitement from commercial teams, and the company is optimistic about the technology being a game changer.

e8e5feede021c311c91a793d8b21978b5bc0232df1264bd574174d6af15c2439

- **Rapid adoption of the AirSense 11 platform**, which is already the primary platform in the U.S. market and is **ramping up quickly in international markets**, leading to revenue growth.  **[RMD_3380800_21]**
- **Significant gross margin improvement of 240 basis points**, driven by freight cost reductions and manufacturing cost improvements, showcasing operational excellence and enhancing profitability.  **[RMD_3380800_15]** **[RMD_3380800_11]**
- **Strong long-term growth potential** in treating patients with COPD and neuromuscular diseases using the AirCurve platform, addressing a market of **hundreds of millions of patients worldwide**.  **[RMD_3380800_19]**

6245d36b64dfcdadcff12dceebf326723e84754ea2f3f97ca3d81dff83a02f36

- ResMed's **increased inventory levels** have led to a **headwind on operating cash flow** in the quarter. The company is increasing inventory to mitigate higher freight costs, which may impact working capital in the short term.  **[RMD_3403694_12]**
- The **benign pricing environment** suggests ResMed may face limitations in raising prices to offset higher costs, potentially impacting margins. While they have passed on some cost increases previously, management expects pricing to be generally stable going forward.  **[RMD_3403694_13]**
- **Strong competition in the European market** may limit ResMed's ability to gain market share. The company acknowledges competing with other European players and is focusing on logistics and customer service improvements, indicating that competitive pressures remain significant.  **[RMD_3403694_19]**

3eb35ec821a77530145472322bcc6c71a50c940836b6eb8f327f5568890ed512

- **Inventory levels have decreased significantly and are now close to target, limiting potential for further reductions and possibly affecting cash flow.**  **[RMD_3380800_22]**
- **Gross margin improvements are heavily dependent on freight cost reductions and manufacturing cost improvements, which may not be sustainable; management is unwilling to provide detailed breakdowns.**  **[RMD_3380800_11]** ,  **[RMD_3380800_15]**
- **Global rollout of the AirSense 11 platform is facing delays due to regulatory hurdles in multiple countries, which could hinder international growth.**  **[RMD_3380800_21]**

e22403a4128c3c7d001235731b5f82d7f5fd133e7999fc04b32a20bf5c926377

- Patients prescribed GLP-1 medications have a **10% higher propensity** to start positive airway pressure therapy and show **increased adherence rates**, suggesting that the growth of GLP-1 use could boost demand for ResMed's products.  **[RMD_3370693_9]**
- ResMed is expanding the availability of its **AirSense 11 platform** across **over 140 countries**, driving strong device sales growth of **11% globally** and positioning the company for continued revenue increases as adoption spreads.  **[RMD_3370693_15]**
- Despite competitors like Philips re-entering the market, ResMed continues to **maintain market leadership** by leveraging its **superior technology** and has a track record of **winning and taking market share**, even as competition intensifies.  **[RMD_3370693_11]**

6c6398f10839ce66e14946fdd0bc2dc150a09d440f3f8cd783518f5177028345

1. **Gross Margin Outlook**  
   **Q:** What are the positive drivers for FY25 gross margins?  
   **A:** ResMed expects gross margins to improve to **59%-60%** in FY25, up from **57.7%** in FY24.  **[RMD_3395783_10]**  Positive drivers include cost optimization initiatives, manufacturing efficiencies, procurement initiatives, scale benefits, favorable product mix due to the continued transition to the **AS 11 platform**, and new product introductions allowing for better pricing.  **[RMD_3395783_10]** 

2. **Impact of GLP-1 Drugs**  
   **Q:** How will GLP-1 drugs affect new patient growth?  
   **A:** The GLP-1 trend is bringing more motivated patients into the system, potentially increasing market growth by **50-125 basis points**.  **[RMD_3395783_13]**  ResMed is investing in digital health solutions to guide these patients through screening, diagnosis, and treatment, aiming to accelerate market growth.  **[RMD_3395783_13]** 

3. **Competitor Philips' Reentry**  
   **Q:** Is Philips reentering international markets significantly?  
   **A:** Philips is back in many markets in Europe and Asia, but ResMed continues to gain market share, achieving **8%** growth in these regions.  **[RMD_3395783_11]**  ResMed remains confident in outperforming competitors, emphasizing its position as the market leader with superior products.  **[RMD_3395783_11]** 

4. **Mask Growth Sustainability**  
   **Q:** Is the strong mask growth sustainable?  
   **A:** ResMed achieved **17%** mask growth in the U.S. and **9%** in other regions, driven by resupply programs and partnerships.  **[RMD_3395783_12]**  While double-digit growth may not continue indefinitely, the company aims to meet or beat market growth by enhancing demand generation and improving resupply initiatives.  **[RMD_3395783_12]** 

5. **Gross Margin Improvement Cadence**  
   **Q:** How will gross margins trend through FY25?  
   **A:** Gross margins are expected to gradually improve throughout FY25 from the current **59.1%**, reaching the target range of **59%-60%** as cost optimization efforts take effect.  **[RMD_3395783_14]** 

6. **Devices Revenue Drivers**  
   **Q:** What drove the 6% increase in device revenues?  
   **A:** The global device revenue grew by **6%** primarily due to increased patient volume, with minimal impact from pricing changes.  **[RMD_3395783_8]**  Growth was **5%** in the U.S., Canada, and Latin America, and **8%** in Europe and Asia, reflecting strong patient flow.  **[RMD_3395783_8]** 

7. **Pricing Impact and Inventory Levels**  
   **Q:** Can you elaborate on pricing impact and inventory levels?  
   **A:** Pricing increases were associated with innovation, but the majority of growth was volume-driven.  **[RMD_3395783_15]**  Inventory levels have been reduced to appropriate levels, with nothing unusual in masks and accessories.  **[RMD_3395783_15]** 

8. **Sleep Concierge Service Initiative**  
   **Q:** How will digital technologies bring in more patients?  
   **A:** ResMed aims to be a sleep health concierge, leveraging its extensive data to help patients find treatment paths.  **[RMD_3395783_16]**  Investments are being made to drive more patients into the funnel, contributing to sustained double-digit growth.  **[RMD_3395783_16]** 

9. **Competition from GLP-1 Therapies**  
   **Q:** Will GLP-1 drugs reduce CPAP usage?  
   **A:** Despite the SURMOUNT-OSA study results, ResMed has not seen increased CPAP discontinuation.  **[RMD_3395783_18]**  They believe combination therapy is beneficial and continue to monitor real-world data, with no significant change in patient adherence observed.  **[RMD_3395783_18]** 

10. **Diagnostic Rates and Market Growth**  
    **Q:** Can diagnostic rates increase with GLP-1 and wearables?  
    **A:** Diagnostic rates are low globally, but GLP-1 therapies and consumer wearables may increase awareness.  **[RMD_3395783_17]**  ResMed is working to help patients find treatment, potentially increasing market growth by **50-125 basis points**  **[RMD_3395783_13]** **[RMD_3395783_17]** .

f0cc705e2144513afeac764a1d8c2ffa8e5895598bc4f7a92b2627758885442e

- **ResMed is leveraging major trends in consumer technology and pharmaceuticals to drive patient growth and expand its market.** They are focusing on becoming a digital health concierge to help patients find pathways to screening, diagnosis, and treatment, capitalizing on increased awareness from wearable devices like the Samsung Galaxy Watch and GLP-1 medications from big pharmaceutical companies.  **[RMD_3395783_16]** ,  **[RMD_3395783_13]**
- **ResMed is experiencing strong device sales growth, driven primarily by increased patient flow and potential market share gains.** The growth is attributed to strong demand rather than price increases, indicating robust market dynamics and ResMed's competitive positioning.  **[RMD_3395783_11]**
- **ResMed's investment in resupply programs and subscription models has led to strong growth in mask sales, allowing them to outperform market growth rates.** They are leveraging digital health technologies to support resupply and have implemented successful subscription programs, contributing to double-digit growth in masks and accessories.  **[RMD_3395783_12]**

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- ResMed's **Rest of World devices grew by 9%**, driven by strong demand in Europe and Asia-Pacific regions, achieved through effective demand generation, capture, and conversion in global markets.  **[RMD_3403694_19]** **[RMD_3403694_9]**
- ResMed is leveraging the **consumer wearables macro trend**, with products like **'Dawn' and 'NightOwl'**, positioning itself as a **digital sleep health concierge**, to capitalize on increased patient demand driven by the adoption of wearable technologies detecting sleep apnea.  **[RMD_3403694_16]** **[RMD_3403694_3]**
- ResMed is actively pursuing **tuck-in acquisitions** such as **Snap Technologies, Somnoware, and NightOwl**, enhancing its capabilities to engage with patients and providers, streamline diagnosis processes, and capitalize on significant growth opportunities.  **[RMD_3403694_14]**

0724cf19abcbb8be8f1d3a4ac48b3566c26ba7b1028d133598269521ebc98583

Resmed Inc (RMD)

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