Masimo Corporation

Good afternoon, ladies and gentlemen, and welcome to Massimo's first quarter 2023 earnings conference call. The company's press release is available at www.massimo.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 am pleased to introduce Eli Kammerman, Massimo's Vice President of Business Development and Investor Relations.

Thank you, and 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 section 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, to 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 issue 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.

Thank you. Thanks Eli. Good afternoon and thank you for joining us for Massimo's first quarter 2023 earnings call. We've started the year with solid performance and are excited about the many new products coming out of our research and development pipeline this year. Our consistent focus on life-improving innovation continues to drive growth in our professional healthcare, consumer health, and consumer markets. And now, supported by the scale and infrastructure of our Massimo consumer business, our health and healthcare innovation is going to reach people from all walks of life. Our consolidated revenues for the first quarter reached $565 million. We delivered healthcare revenues of $347 million and consumer revenues of $218 million. New customers in our pulse oximetry business and increasing traction for rainbow and advanced parameter products strengthened our healthcare revenues this quarter. In fact, this was the best first quarter in our history for new conversions of hospitals to Massimo. In addition to rainbow blood constituent monitoring, which has now become over 10% of our healthcare revenue, we have saw growth in our SEDLINE and O3 brain monitoring and normal line capnography and gas monitoring products. Robust growth for hearables led the performance of our consumer business, along with a strong market reception for some recently launched AV products. Despite many consumer-facing companies struggling post-COVID, our consumer business remains on track. Meanwhile, we're leveraging our unique combination of signal processing, physiological monitoring, audio and automation technology capabilities to launch a series of new and innovative products to revolutionize consumer health. On that point, Later in the call, I'll update you on the recent launch of our Stork Baby Monitor and Opioid Halo, as well as some of the other new products planned for this year that we expect will contribute to our long-term success. With that, I'll pass it to Micah to review our first quarter results in more detail and provide an update on our 2023 financial guidance.