Masimo Corporation

Good afternoon, ladies and gentlemen, and welcome to MISIMO's fourth quarter and full year 2022 earnings conference call. The company's press release is available at www.misimo.com. At this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. I'm pleased to introduce Eli Kammerman, MISIMO's Vice President of Business Development and Investor Relations. Please go ahead, sir.

Thank you. Hello, everyone. Joining me today are Chairman and CEO Joe Chiani and Executive Vice President and Chief Financial Officer Micah Young. This call will contain forward-looking statements which reflect management's current judgment, including certain of our expectations regarding fiscal year 2023 financial performance. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors that could cause our actual results to differ materially from our projections and forecasts are discussed in detail in our periodic filings with the SEC. You will find these in the investor relations sections of our website. Also, this call will include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles or GAAP. We generally refer to these as non-GAAP financial measures. In addition to GAAP results, these non-GAAP financial measures are intended to provide additional information to enable investors to assess the company's operating results in the same way management assesses such results. Management uses non-GAAP measures to budget, evaluate, and measure the company's performance and sees these results as an indicator of the company's ongoing business performance. The company believes that these non-GAAP financial measures increase transparency and better reflect the underlying financial performance of the business. Therefore, the financial measures we will be covering today will be primarily on a non-GAAP basis, unless noted otherwise. Further, we will also be referencing pro forma financial measures, which include historical results for Sound United prior to the acquisition date of April 11, 2022. In our presentation today, we will once again be referring to this business as our non-healthcare segment. Reconciliation of these measures to the most directly comparable GAAP financial measures are included within the earnings release and supplementary financial information on our website. Investors should consider all of our statements today, together with our reports filed with the SEC, including our most recent form, 10-K and 10-Q, in order to make informed investment decisions. In addition to the earnings release issued today, we have posted a quarterly earnings presentation within the investor relations section of our website to supplement the content we will be covering this afternoon. I'll now pass the call to Joe Chiani.

Thanks, Eli. Good afternoon and thank you for joining us for Massimo's 2022 year-end earnings call. 2022 was a momentous year for Massimo. Our healthcare business outperformed expectations. We continued to innovate and deliver clinically proven new products in our professional healthcare markets. And we accelerated our strategy to capture the vast consumer health market opportunity with the acquisition of Sound United, owner of iconic brands such as Bowers & Wilkins, Denon, and Marantz. The acquisition has provided us with immediate scale across audio and automation engineering, sales and marketing, and distribution that would have otherwise taken many years of dilutive investment to build. Instead, we've already completed the integration of Sound United rebranded the business as Massimo Consumer and are working to realize the tremendous potential of the hearables, wearables, and telemonitoring markets unlocked by our unique combination of signal processing, physiological monitoring, audio, and automation technology capabilities. Looking back on our financial performance in fiscal year 2022, our consolidated revenues exceeded $2 billion, with healthcare revenues reaching $1.34 billion, representing 11% organic growth. The Massimo consumer acquisition, which closed in early April last year, added $695 million to our reported revenues, bringing pro forma revenues for the consumer business to $963 million, in fiscal year 2022, representing 11% organic growth as well. Our fourth quarter results continued the strong momentum we built throughout the year, with consolidated revenues of $617 million, representing 9% organic growth. This included 10% growth from our healthcare business and 9% growth from our consumer audio business. In healthcare, we benefited through 2022 from consistent success in winning new customers. We continued to capture significant new business during the fourth quarter, gaining business with the Franciscan Ministries of Our Lady, Fresno Community Hospital, and NuVance Health. In addition, we renewed contracts with many of our customers, including Cincinnati Children's and Temple University Hospital. Consumer audio growth was fueled by new product introductions, improved supply chain conditions, and strong momentum in our hearable strategy. I'm excited about the long-term opportunities in this business as our integrated platform enables innovative new solutions for consumers in not just audio, but health. Later in the call, I'll share more details on the new product launches slated for 2023, that will support our long-term growth in our professional healthcare and consumer franchises. Our strong financial results in 2022 demonstrate our ability to capture increasing market share within the large and growing markets that we compete in. The progress we made across our portfolio and on our consumer health strategy positions us to create value for patients, clinicians, and shareholders for many years to come. With that, I'll pass it to Micah to review our fourth quarter and full year results in more detail and provide an update on our 2023 financial guidance.