ResMed Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>ResMed Inc. filed its quarterly report (10-Q) for the period ending December 31, 2023, detailing its financial performance for the fiscal second quarter of 2024.</b>

AI Summary

RESMED INC (RSMDF) filed a Quarterly Report (10-Q) with the SEC on January 25, 2024. ResMed Inc. filed a 10-Q report for the period ending December 31, 2023. The filing covers the fiscal second quarter of 2024. The company's fiscal year ends on June 30. ResMed Inc. is incorporated in Delaware. The company's business and mailing address is 9001 Spectrum Center Blvd., San Diego, CA 92123.

Why It Matters

For investors and stakeholders tracking RESMED INC, this filing contains several important signals. This filing provides investors with updated financial data for ResMed Inc., crucial for assessing the company's performance and making investment decisions. The 10-Q report is a standard SEC filing that offers a comprehensive overview of a company's financial health and operational status during a specific quarter.

Risk Assessment

Risk Level: low — RESMED INC shows low risk based on this filing. The filing is a routine 10-Q, indicating no immediate or significant new risks or events requiring a higher risk assessment.

Analyst Insight

Monitor future 10-Q filings for detailed financial performance, segment revenues, and any disclosed risk factor updates.

Key Numbers

• 2023-12-31 — Period of Report (Conformed Period of Report)
• 2024-01-25 — Filed as of Date (Filed as of Date)
• 2024-01-24 — Date as of Change (Date as of Change)
• 2023-07-01 — Fiscal Year Start Date (Fiscal Year Start Date)
• 2023-12-31 — Fiscal Year End Date (Fiscal Year End Date)

Key Players & Entities

• RESMED INC (company) — Filer
• 0000943819 (company) — Central Index Key
• DE (company) — State of Incorporation
• 9001 SPECTRUM CENTER BLVD. (company) — Business Address Street 1
• SAN DIEGO (company) — Business Address City
• CA (company) — Business Address State
• 92123 (company) — Business Address ZIP
• 8587462400 (company) — Business Phone

Forward-Looking Statements

• ResMed's Sleep and Respiratory segment will continue to be the primary revenue driver. (RESMED INC) — high confidence, target: 2024-06-30
• Software as a Service revenue will maintain a steady growth trajectory. (RESMED INC) — medium confidence, target: 2024-06-30

FAQ

Industry Context

ResMed Inc. operates in the healthcare industry, specifically in the field of medical instruments and apparatus, focusing on sleep and respiratory care.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Analyze segment performance, particularly for Sleep and Respiratory and Software as a Service, if data becomes available in the full filing.
3. Compare current quarter results with historical data from previous 10-Q filings to identify trends.

Year-Over-Year Comparison

This is a 10-Q filing, which is a routine quarterly report. Specific comparative data from the previous filing is not detailed in this header information.

Key Financial Figures

• $0.004 — ich registered Common Stock, par value $0.004 per share RMD New York Stock Exchange

Filing Documents

• rmd-20231231.htm (10-Q) — 1433KB
• ex101-formofpsuagreementfo.htm (EX-10.1) — 135KB
• rmd-20231231xex311.htm (EX-31.1) — 10KB
• rmd-20231231xex312.htm (EX-31.2) — 10KB
• rmd-20231231xex32.htm (EX-32.1) — 10KB
• 0000943819-24-000003.txt (&nbsp;) — 6767KB
• rmd-20231231.xsd (EX-101.SCH) — 42KB
• rmd-20231231_cal.xml (EX-101.CAL) — 70KB
• rmd-20231231_def.xml (EX-101.DEF) — 182KB
• rmd-20231231_lab.xml (EX-101.LAB) — 510KB
• rmd-20231231_pre.xml (EX-101.PRE) — 337KB
• rmd-20231231_htm.xml (XML) — 1021KB

Financial Statements

Financial Statements 3 Condensed Consolidated Balance Sheets (Unaudited) 3 Condensed Consolidated Statements of Operations (Unaudited) 4 Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5 Condensed Consolidated Statements of Changes in Equity (Unaudited) 6 Condensed Consolidated Statements of Cash Flows (Unaudited) 8 Notes to the Condensed Consolidated Financial Statements (Unaudited) 9 Item 2

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4

Controls and Procedures

Controls and Procedures 38 Part II Other Information 39 Item 1

Legal Proceedings

Legal Proceedings 39 Item 1A

Risk Factors

Risk Factors 39 Item 2 Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 39 Item 3 Defaults Upon Senior Securities 39 Item 4 Mine Safety Disclosures 39 Item 5 Other Information 39 Item 6 Exhibits 41

Signatures

Signatures 42 2 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

Financial Statements

Item 1. Financial Statements RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited) (In US$ and in thousands, except share and per share data) December 31, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 210,247 $ 227,891 Accounts receivable, net of allowances of $ 21,822 and $ 23,603 at December 31, 2023 and June 30, 2023, respectively 729,740 704,909 Inventories (note 3) 933,214 998,012 Prepaid expenses and other current assets (note 3) 504,876 437,018 Total current assets 2,378,077 2,367,830 Non-current assets: Property, plant and equipment, net (note 3) 551,734 537,856 Operating lease right-of-use assets 153,473 127,955 Goodwill (note 4) 2,861,854 2,770,299 Other intangible assets, net (note 3) 528,178 552,341 Deferred income taxes 155,955 132,974 Prepaid taxes and other non-current assets 275,817 262,453 Total non-current assets 4,527,011 4,383,878 Total assets $ 6,905,088 $ 6,751,708 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 202,395 $ 150,756 Accrued expenses 332,136 365,660 Operating lease liabilities, current 24,057 21,919 Deferred revenue 148,897 138,072 Income taxes payable 46,690 72,224 Short-term debt, net (note 7) 9,898 9,902 Total current liabilities 764,073 758,533 Non-current liabilities: Deferred revenue 127,410 119,186 Deferred income taxes 89,282 90,650 Operating lease liabilities, non-current 140,649 116,853 Other long-term liabilities 72,894 68,166 Long-term debt, net (note 7) 1,216,769 1,431,234 Long-term income taxes payable 12,157 37,183 Total non-current liabilities 1,659,161 1,863,272 Total liabilities 2,423,234 2,621,805 Commitments and contingencies (note 9) Stockholders' equity: Preferred stock, $ 0.01 par value, 2,000,000 shares authorized; none issued — — Common stock, $ 0.004 par value, 350,000,000 shares authorized; 189,259,220 issued and 147,087,512 outstanding at December 31, 2023 and 188,900,583 issued and

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited) (In US$ and in thousands, except per share data) Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Net revenue - Sleep and Respiratory Care products $ 1,017,855 $ 916,981 $ 1,980,892 $ 1,761,424 Net revenue - Software as a Service 144,946 116,763 284,230 222,614 Net revenue 1,162,801 1,033,744 2,265,122 1,984,038 Cost of sales - Sleep and Respiratory Care products 460,721 406,303 905,182 770,146 Cost of sales - Software as a Service 46,889 40,421 95,782 79,688 Cost of sales (exclusive of amortization shown separately below) 507,610 446,724 1,000,964 849,834 Amortization of acquired intangible assets - Sleep and Respiratory Care products 1,324 1,343 3,240 2,572 Amortization of acquired intangible assets - Software as a Service 6,933 5,962 13,924 11,108 Amortization of acquired intangible assets 8,257 7,305 17,164 13,680 Total cost of sales 515,867 454,029 1,018,128 863,514 Gross profit 646,934 579,715 1,246,994 1,120,524 Selling, general, and administrative 222,155 211,672 445,029 404,860 Research and development 73,880 69,874 149,590 133,062 Amortization of acquired intangible assets 11,577 9,563 24,056 17,513 Restructuring expenses (note 11) 64,228 — 64,228 — Acquisition related expenses — 8,412 — 9,157 Total operating expenses 371,840 299,521 682,903 564,592 Income from operations 275,094 280,194 564,091 555,932 Other income (loss), net: Interest (expense) income, net ( 13,805 ) ( 10,338 ) ( 28,762 ) ( 17,472 ) Gain (loss) attributable to equity method investments (note 5) 739 ( 2,826 ) ( 3,156 ) ( 4,853 ) Gain (loss) on equity investments (note 5) ( 1,888 ) 8,368 ( 2,491 ) 5,088 Other, net ( 686 ) ( 1,707 ) 1,963 ( 3,211 ) Total other income (loss), net ( 15,640 ) ( 6,503 ) ( 32,446 ) ( 20,448 ) Income before income taxes 259,454 273,691 531,645 535,484 Income taxes 50,6

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (In US$ and in thousands) Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 Net income $ 208,800 $ 224,914 $ 428,222 $ 435,392 Other comprehensive income, net of taxes: Unrealized losses on designated hedging instruments ( 19,891 ) ( 20,203 ) ( 36,984 ) ( 20,203 ) Foreign currency translation gain adjustments 131,687 156,163 101,160 62,782 Comprehensive income $ 320,596 $ 360,874 $ 492,398 $ 477,971 See the accompanying notes to the unaudited condensed consolidated financial statements. 5 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2023 188,901 $ 588 $ 1,772,083 ( 41,836 ) $ ( 1,623,256 ) $ 4,253,016 $ ( 272,528 ) $ 4,129,903 Common stock issued on exercise of options 17 — 983 — — — — 983 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 225 ) — — — — ( 225 ) Stock-based compensation costs — — 18,510 — — — — 18,510 Other comprehensive loss — — — — — — ( 47,620 ) ( 47,620 ) Net income — — — — — 219,422 — 219,422 Dividends declared ($ 0.48 per common share) — — — — — ( 70,597 ) — ( 70,597 ) Balance, September 30, 2023 188,921 $ 588 $ 1,791,351 ( 41,836 ) $ ( 1,623,256 ) $ 4,401,841 $ ( 320,148 ) $ 4,250,376 Common stock issued on exercise of options 24 — 1,557 — — — — 1,557 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 163 1 ( 7,798 ) — — — — ( 7,797 ) Common stock issued on employee stock purchase plan 151 1 17,966 — — — — 17,967 Treasury stock purchases — ( 2 ) 2 ( 336 ) ( 50,007 ) — — ( 50,007 ) Stock-based compensation costs — — 19,840 — — — — 19,840 Other comprehensive income — — — — — — 111,796 111,796 Net income — — — — — 208,800 — 208,800 Dividends declared ($ 0.48 per common share) — — — — — ( 70,678 ) — ( 70,678 ) Balance, December 31, 2023 189,259 $ 588 $ 1,822,918 ( 42,172 ) $ ( 1,673,263 ) $ 4,539,963 $ ( 208,352 ) $ 4,481,854 See the accompanying notes to the unaudited condensed consolidated financial statements. 6 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Equity (Unaudited) (In US$ and in thousands) Common Stock Additional Paid-in Capital Treasury Stock Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shares Amount Shares Amount Balance, June 30, 2022 188,247 $ 586 $ 1,682,432 ( 41,836 ) $ ( 1,623,256 ) $ 3,613,736 $ ( 312,747 ) $ 3,360,751 Common stock issued on exercise of options 45 — 2,610 — — — — 2,610 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 3 — ( 59 ) — — — — ( 59 ) Stock-based compensation costs — — 16,919 — — — — 16,919 Other comprehensive loss — — — — — — ( 93,381 ) ( 93,381 ) Net income — — — — — 210,478 — 210,478 Dividends declared ($ 0.44 per common share) — — — — — ( 64,431 ) — ( 64,431 ) Balance, September 30, 2022 188,295 $ 586 $ 1,701,902 ( 41,836 ) $ ( 1,623,256 ) $ 3,759,783 $ ( 406,128 ) $ 3,432,887 Common stock issued on exercise of options 77 — 5,120 — — — — 5,120 Common stock issued on vesting of restricted stock units, net of shares withheld for tax 265 1 ( 29,655 ) — — — — ( 29,654 ) Common stock issued on employee stock purchase plan 100 1 16,935 — — — — 16,936 Stock-based compensation costs — — 16,464 — — — — 16,464 Other comprehensive income (loss) — — — — — — 135,960 135,960 Net income — — — — — 224,914 — 224,914 Dividends declared ($ 0.44 per common share) — — — — — ( 64,500 ) — ( 64,500 ) Balance, December 31, 2022 188,737 $ 588 $ 1,710,766 ( 41,836 ) $ ( 1,623,256 ) $ 3,920,197 $ ( 270,168 ) $ 3,738,127 See the accompanying notes to the unaudited condensed consolidated financial statements. 7 Table of Contents

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited) (In US$ and in thousands) Six Months Ended December 31, 2023 2022 Cash flows from operating activities: Net income $ 428,222 $ 435,392 Adjustment to reconcile net income to net cash provided by operating activities: Depreciation and amortization 89,718 74,040 Amortization of right-of-use assets 17,094 15,533 Stock-based compensation costs 38,350 33,383 Loss attributable to equity method investments (note 5) 3,156 4,853 (Gain) loss on equity investments (note 5) 2,491 ( 5,088 ) Non-cash restructuring expenses (note 11) 33,239 — Changes in operating assets and liabilities: Accounts receivable ( 20,269 ) ( 75,823 ) Inventories 77,095 ( 233,116 ) Prepaid expenses, net deferred income taxes and other current assets ( 74,590 ) ( 66,646 ) Accounts payable, accrued expenses, income taxes payable and other ( 35,391 ) ( 9,230 ) Net cash provided by operating activities 559,115 173,298 Cash flows from investing activities: Purchases of property, plant and equipment ( 53,388 ) ( 56,406 ) Patent registration and acquisition costs ( 12,036 ) ( 7,636 ) Business acquisitions, net of cash acquired ( 110,688 ) ( 1,011,225 ) Purchases of investments (note 5) ( 7,305 ) ( 17,132 ) Proceeds from exits of investments (note 5) 250 — Proceeds / (payments) on maturity of foreign currency contracts ( 6,956 ) 7,181 Net cash used in investing activities ( 190,123 ) ( 1,085,218 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 20,507 24,666 Purchases of treasury stock ( 50,007 ) — Taxes paid related to net share settlement of equity awards ( 8,022 ) ( 29,713 ) Payments of business combination contingent consideration ( 1,293 ) — Proceeds from borrowings, net of borrowing costs 105,000 1,070,000 Repayment of borrowings ( 315,000 ) ( 45,000 ) Dividends paid ( 141,275 ) ( 128,931 ) Net cash (used in)

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) (1) Summary of Significant Accounting Policies Organization and Basis of Presentation ResMed Inc. (referred to herein as "we", "us", "our" or the "Company") is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a Software as a Service ("SaaS") business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission ("SEC"). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2024. The condensed consolidated f

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Disaggregation of revenue The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2023 2022 2023 2022 U.S., Canada and Latin America Devices $ 371,336 $ 345,525 $ 717,233 $ 685,070 Masks and other 297,994 269,733 590,455 508,293 Total U.S., Canada and Latin America $ 669,330 $ 615,258 $ 1,307,688 $ 1,193,363 Combined Europe, Asia and other markets Devices $ 234,661 $ 197,275 $ 453,492 $ 375,305 Masks and other 113,864 104,448 219,712 192,756 Total Combined Europe, Asia and other markets $ 348,525 $ 301,723 $ 673,204 $ 568,061 Global revenue Total Devices $ 605,997 $ 542,800 $ 1,170,725 $ 1,060,375 Total Masks and other 411,858 374,181 810,167 701,049 Total Sleep and Respiratory Care $ 1,017,855 $ 916,981 $ 1,980,892 $ 1,761,424 Software as a Service 144,946 116,763 284,230 222,614 Total $ 1,162,801 $ 1,033,744 $ 2,265,122 $ 1,984,038 Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Care bu

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. However, returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer's expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts ha

– FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1 RESMED INC. AND SUBSIDIARIES Notes to the Condensed Consolidated Financial Statements (Unaudited) Recently Issued Accounting Standards Not Yet Adopted ASU No. 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures In November 2023, the Financial Accounting Standards Board (FASB) issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which expands segment disclosures to include significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss, an amount and description of its composition for other segment items, and interim disclosures of a reportable segment's profit or loss and assets. This ASU is applicable to our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, and subsequent interim periods. Early adoption is permitted and the amendments must be applied retrospectively to all prior periods presented. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures. ASU 2023-09 Income Taxes (Topic 740): Improvements to Income

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