Masimo Corporation

Good afternoon, ladies and gentlemen, and welcome to Massimo's third 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'm pleased to introduce Eli Kammerman, Massimo's Vice President of Business Development and Investor Relations.

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 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 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.

Thank you, Eli. Good afternoon and thank you for joining us for Massimo's third quarter 2023 earnings call. Our performance for the third quarter was within our guidance range communicated last quarter and was highlighted by record market share gains in hospitals with a record level of new customer contracts for our set pulse oximetry and other solutions. That said, Our healthcare business is navigating a clear transition away from COVID-era conditions. Despite sequential improvements from the second quarter, sensor utilization remains below prior trend, and hospital budget pressures have continued to slow the pace of equipment installations. This is keeping sensor utilization below our expectations for the second half of the year. As we continue to gather more data on hospital utilization of our sensors, we are beginning to see that customer behavior and sensor purchasing patterns are transitioning back to the pre-pandemic growth trend line we saw from 2017 to 2019. Michael will have more to say about these observations later in the call, but together with our record contracting performance this year to date, This data reinforces our conviction and the underlying long-term growth rate for our healthcare business. On the consumer side, we continue to realize strong growth for hearables, which remains a key focus area for us. The rapid uptake of our hearables products is helping to partially offset the challenging consumer environment that our premier audio brands are facing for audio components and home entertainment systems. I will share updates on some of our exciting new products and opportunities later in the call, but now I will ask Micah to review our third quarter results in more detail and provide an update on our 2023 financial guidance. Thank you, Joe.