For its quarter ending on December 31, 2021, revenue at ResMed Inc increased by 12% to $894.9 million, driven by high demand but hampered by difficulties getting electronic parts.
“Our second-quarter results reflect continued strong performance across our business resulting in double-digit top-line revenue growth, driven by ongoing high demand for our sleep and respiratory care products, and solid growth in our software-as-a-service business,” says Mick Farrell, ResMed CEO, in a release. “Our global ResMed team continues to find ways to deliver products and solutions to our customers, even amid ongoing supply chain challenges that have limited additional access to critical electronic components. We are working every day to meet the extraordinary demand generated by our competitor’s ongoing device recall. We continue to ensure priority for the highest-need patients first, and we are working with physicians, providers, and healthcare systems to maintain delivery of medical devices and digital health solutions for the patients who need care.
“Despite constantly evolving market dynamics, we remain focused on our goal to improve 250 million lives in the year 2025; supporting patients with the sleep apnea therapy, respiratory care therapy, and digital health solutions they need as we deliver value for all of our customers. We are investing in medical device research and development, as well as digital health innovation that will unlock value across the healthcare system. I am incredibly proud of our global ResMed team, working around the clock with providers and physicians across 140 countries to get products directly into the hands of patients who most need our help.”
Discussion of Second Quarter Results
All comparisons are to the prior year period unless otherwise noted
- Revenue grew by 13% on a constant currency basis, driven by increased demand for its sleep and respiratory care devices and increased demand following the Philips product recall.
- Revenue in the United States, Canada, and Latin America, excluding software as a service, grew by 14%, primarily due to the factors discussed above and recovery of core sleep patient flow that was previously impacted by COVID-19.
- Revenue in Europe, Asia, and other markets grew by 12% on a constant currency basis, primarily due to the factors discussed above.
- Software as a service revenue increased by 8%, due to continued growth in our durable medical equipment category and stabilizing patient flow in out-of-hospital care settings.
- Gross margin decreased by 140 basis points and non-GAAP gross margin decreased by 230 basis points, mainly due to higher freight and manufacturing costs, partially offset by favorable product mix changes.