Resmed Inc (RMD) T4 2019 Transcription de l'appel des résultatsaoût 23, 2019
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Q4 2019 Earnings Call
Jul 25, 2019, 4:30 p.m. ET » data-reactid= »32″ type= »text »>Resmed Inc (NYSE: RMD)
Q4 2019 Earnings Call
Jul 25, 2019, 4:30 p.m. ET
Welcome to the Q4 Fiscal Year 2019 ResMed’s Earnings Conference Call. My name is Rob and I will be your operator for today’s call. [Operator Instructions]
I will now turn the call over to Amy Wakeham, Vice President of Investor Relations and Corporate Communications. Amy, you may begin.
Great, thank you, Rob. Good afternoon, and good morning everyone. Thanks for joining us and welcome to ResMed’s Fourth Quarter Fiscal Year 2019 Earnings Call. This call is being webcast live and the replay along with a copy of the earnings press release and our updated investor presentation will be available on the Investor Relations section of our corporate website.
Joining me on the call today to discuss our quarterly results are CEO, Mick Farrell; and CFO, Brett Sandercock. Other members of management will be available during the Q&A portion of the call.
During our call, we will discuss several non-GAAP measures. For a reconciliation of the non-GAAP measures, please review the notes to today’s earnings press release. As a reminder, our discussion today may include forward-looking statements, including but not limited to expectations about ResMed’s future performance. We believe these statements are based on reasonable assumptions; however, our actual results may differ. You’re encouraged to review our SEC filings for a discussion of the risk factors that could cause our actual results to differ materially from any forward-looking statements.
With that, I’d like to now turn the call over to Mick.
Thanks, Amy, and thank you to all of our shareholders for joining us today as we review results for the fourth quarter of fiscal year 2019 for ResMed. On today’s call, I will discuss our long-term strategy, I’ll review top-level financial results, some business highlights from the quarter and a few key milestones. Then, I’ll hand the call over to Brett, who will walk you through our financial results in further detail.
Reflecting back on fiscal year 2019, we have a lot to be proud of here at ResMed’s. The business is performing well. We passed $2.6 billion in revenue and grew at double digits in the top line and the bottom line. We are exiting the year with momentum and I feel strongly that we are well positioned heading into fiscal year 2020 and beyond.
ResMed’s is the world’s leading technology-driven healthcare company. We have more than 10 million 100% cloud connectable medical devices in the market around the world and our AirView cloud ecosystem monitors more than 11 million patients’ accounts, while our out-of-hospital software systems are helping to manage 19 million more. So, that is over 100 million lives that we improved with ResMed’s products, services and solutions in the last 12 months.
We have over 4.5 billion nights of medical sleep and respiratory care data, which continues to grow exponentially. And we are turning these data into actionable insights that will inform future innovation in products and software solutions to further benefit our customers. Our relentless focus on innovation continues to set us apart from our competition, demonstrated by the success of our lighter software releases and our lightest sleep apnea mask systems that we’ve just launched.
We have ambitions and strong ambitions to grow. We’re going to grow our business at volume at double-digits. And we’re going to improve 250 million lives in 2025. We’ll do that by helping people live happier, healthier and higher quality lives outside the hospital. We remain laser focused on growth in our core business of sleep apnea as well in as in our adjacent businesses of COPD and asthma and other chronic conditions.
We’ve expanded our focus to include out-of-hospital software solutions that help customers create efficiencies, take costs out of the system and improve the quality of care across home medical equipment providers, home health and hospice services, as well as skilled nursing facilities and beyond. In short, we believe the future of healthcare is outside the hospital, that’s where ResMed’s completes and that’s where we win.
Let’s briefly now review our top level financial results. I mentioned earlier that we ended the fiscal year on a strong note and it is, thanks to our 7,500-person global team and their hard work to drive these great results. We achieved another quarter of double-digit revenue growth, up 15% in constant currency. We produced constant currency growth in both domestic and international sales, as well as in our Software-as-a-Service business, which is growing organically, as well as through contributions from our recent acquisitions. We continue to deliver operating leverage through the business with non-GAAP operating profit growth of 18% year-over-year and non-GAAP diluted earnings per share of $0.95.
Let me now turn to a discussion of highlights across our sleep apnea and respiratory care businesses. In the devices category across these two businesses, we delivered a good quarter with year-over-year constant currency growth of 8% globally, supported by 11% growth in the United States, Canada and Latin America geographies. We had 1% constant currency growth of devices in combined Europe, Asia and the rest of world. We continue to cycle through strong year-over-year comparisons in France and Japan as a result of digital health-related fleet upgrades that we’ve previously discussed and we will continue to do so for a number of quarters.
Underlying patient growth remains healthy around the globe. ResMed is well positioned to continue to benefit from strong fundamental market dynamics, including an aging population, as well as increased awareness and attention from governments, payers, providers and physicians to better manage chronic disease. The masks and accessories growth of our business was very strong during Q4. We were up 15% in constant currency globally. In the US, Canada and Latin America geographies, masks and accessories grew at 16%. And in Europe, Asia and the rest of world geographies, we grew at 12% in constant currency terms in masks and accessories.
We are taking share around the world with our latest patient interface innovations. We make the smallest, quietest and most comfortable masks in the market. Results of this quarter show the benefits of this innovation as customers vote for ResMed with their wallets. Our flagship masks, the AirFit F20 in the full face category and the AirFit N20 in the nasal category, continue their success across global markets. Of three most recent masks launches, the F30 the N30i and the P30i have taken off at an incredible pace. These market share gains are complemented by higher rates of adherence driven by our digital solutions and increasing adoption of mask resupply programs through the market. We have expanded our mask portfolio to offer even more options for physicians and home care providers and for the specific needs of the ultimate customer, the person who suffocates every night with sleep apnea. We remain focused on driving innovation to meet underserved customer needs, and while these new masks have a lot of runway ahead, we also have an exciting product pipeline for the future.
We are the industry leader in digital health technology. We now support well over 11 million patients with AirView, our cloud-based platform, for managing sleep apnea and COPD patients, and more than 10 million 100% cloud connectable ResMed devices have been sold into the market. Over the past 12 months, we have improved the lives of 15 million people by delivering sleep apnea and COPD treatment devices and full mask systems. Our industry-changing AirSense 10 device platform and the Air Solutions cloud-based software ecosystem are still seeing strong adoption. Our device market share continues to grow as patients and healthcare providers choose ResMed and physicians prescribe ResMed. Our digital health technology solutions have been proven to improve both business and patient outcomes. We are the market leader and we will never stop innovating in this field. We believe the digital health technology combined with the medical equipment used to treat patients can add substantial value and improve both clinical outcomes and the patient experience.
Digital end-to-end solutions connectivity making information available to patients on their own smartphones through apps like myAir and Propeller, as well as supporting patients through their chronic disease progression can altogether make a significant difference in both health outcomes and quality of life of patients. Through digital health technology, we are driving engagement with patients so they can enjoy the benefits of the best therapy available and so the costs of chronic disease can be better managed by their physicians and other healthcare providers. The success of our connected health devices is producing an incredible data engine. We now have over 4.5 billion nights of medical sleep apnea and COPD data in the cloud. Using advanced analytics, we are turning these clinical data into actionable insights. We are lowering labor costs for our home care provider customers and we are taking waste out of the system through our focus on developing solutions to get the right healthcare product or service to the right patient at the right time.
At the American Thoracic Society and at the Sleep Medicine Conference during the quarter, we presented over 40 clinical studies from our digital health databases. We are advancing the field of Sleep Medicine with Dr. Nunez, Dr. Benjafield and Dr. Olmstead and their physician colleagues from around the world. Just over one year ago, we announced a joint venture with the Alphabet subsidiary Verily to study the health and financial impacts of untreated sleep apnea. Based on research outcomes from this JV, we will develop software solutions to help identify, engage and better manage people with sleep apnea. The JV has been set up and is running since November of last year and the combined ResMed-Verily team is making good progress to analyze data, the cloud software and to launch pilot studies into the market. This investment, which can be seen as a sophisticated tech-driven research and development project, is a great long-term bet. Over time, we know this work will drive incremental growth in our core sleep apnea business, while allowing ResMed to participate in a broader ecosystem covering sleep apnea, cardiovascular disease, diabetes and other major chronic diseases. Everything we do supports our ambition to help the more than 936 million people worldwide, who suffocate every night with sleep apnea and the nearly 400 million people worldwide who suffer from chronic obstructive pulmonary disease or COPD.
In January, we closed on the acquisition of Propeller Health. This is a significant addition to our vision of longitudinal solutions in respiratory care. Propeller’s digital health solution helps people and their doctors better manage COPD and asthma healthcare. Propeller rounds out ResMed’s portfolio to now treat COPD patients through all stages of their disease. As a reminder, Propeller’s advanced digital health platform leverages small sensors that are attached to the inhalers for these medicines. These sensors then pair with an easy-to-use cloud-based mobile app that automatically tracks COPD medication use and provides personalized feedback and insights to the individual, much like myAir and our other sleep apnea patient engagement systems, just not at the same scale yet. The Propeller team is making really good progress as they work with partners to reach commercial scale. We’re very encouraged about where we are at with the team.
There are few things that I can point to that gives you an idea of how Propeller solutions are being recognized and adopted by their partners. In May, the Cleveland Clinic published research showcasing that the use of Propeller’s digital medicine platform for COPD patients reduced the Cleveland Clinic’s COPD-related healthcare utilization and hospitalizations across their clinic. In the year before the study, patients to average 3.4 visits per patient per year; following the use of Propeller’s technology, the right decreased to 2.2 visits per patient per year, with the majority of patients indicating that the sensor was convenient and very easy to use. That 35% reduction in clinic visits is an incredible cost savings and productivity opportunity for hospital systems and payers. Earlier this week, Walgreens announced that Propeller has been added to the pharmacy’s health platform called, Find Care, expanding the ability to get Propeller into the hands of people struggling to manage their chronic disease through Walgreens.
Propeller’s clinically validated solutions have demonstrated amazing outcomes, including pilot study showing a 58% improvement in medication adherence, a 48% increase in symptom free days, as well as a 53% reduction in emergency room visits. These are impressive results and we can’t wait to scale them. The evolution that we have made in our respiratory care business has set ResMed up to become the global leader in digital health for COPD from stage 1 and stage 2 COPD with Propeller to stage 3 and stage 4 COPD with portable oxygen and non-invasive solutions. We will continue to help physicians, providers, payers and patients as they manage COPD; this important, progressive and chronic disease, keeping people out of the hospital happy and healthy in their homes.
Let’s now turn to a discussion of our Software-as-a-Service business for the out-of-hospital healthcare settings that we operate in. Our SaaS portfolio continues its growth trajectory, with revenue up 111% year-on-year on a reported basis this quarter. On an organic pro forma basis, comparing results in Q4 to the results of these businesses before recent acquisitions, Brightree grew in the high-single digit range and MatrixCare grew low double digits. We are pleased with the