Masimo Corp (MASI) 2024 Q3 法說會逐字稿

Good afternoon, ladies and gentlemen, and welcome to Masimo's third-quarter 2024 earnings conference call. The company's press release is available at www.masimo.com. (Operator Instructions)

女士們、先生們，下午好，歡迎參加 Masimo 的 2024 年第三季財報電話會議。該公司的新聞稿可在 www.masimo.com 上取得。（操作員說明）

I'm pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations.

我很高興向您介紹 Masimo 業務開發和投資者關係副總裁 Eli Kammerman。

Hello, everyone. Joining me today are interim CEO, Ms. Michelle Brennan; COO, Bilal Muhsin; and Executive Vice President and Chief Financial Officer, Micah Young.

大家好。今天與我一起出席的是臨時執行長米歇爾布倫南 (Michelle Brennan) 女士；營運長比拉爾·穆赫辛 (Bilal Muhsin)；執行副總裁兼財務長 Micah Young。

This call will contain forward-looking statements, which reflect management's current judgment, including certain of our expectations regarding fiscal year 2024 and 2025 financial performance. However, they are subject to risks and uncertainties that could cause actual results to differ materially.

本次電話會議將包含前瞻性陳述，反映管理階層目前的判斷，包括我們對 2024 財年及 2025 財年財務表現的某些預期。然而，它們面臨風險和不確定性，可能導致實際結果出現重大差異。

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.

我們向 SEC 定期提交的文件中詳細討論了可能導致我們的實際結果與我們的預測和預測有重大差異的風險因素。您可以在我們網站的投資者關係部分找到這些資訊。

This call will also include a discussion of the potential separation of our consumer business and a preliminary estimate of the financial impact of a potential separation. However, the estimate is being provided solely for illustrative and informational purposes.

這次電話會議也將討論我們消費者業務的潛在分離，以及對潛在分離的財務影響的初步估計。然而，提供估計值僅用於說明和提供資訊的目的。

The company is currently evaluating the structure of any potential separation of its consumer business and the method, structure, timing, and terms of any such potential separation are still under consideration and have not been determined, approved, or finalized.

該公司目前正在評估其消費者業務的任何潛在分離的結構，任何此類潛在分離的方法、結構、時間安排和條款仍在考慮中，尚未確定、批准或最終確定。

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.

此外，本次電話會議也將討論某些未依照公認會計原則（GAAP）計算的財務指標。我們通常將這些稱為非公認會計準則財務指標。

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.

除了 GAAP 業績外，這些非 GAAP 財務指標還旨在提供額外信息，使投資者能夠以管理層評估公司經營業績的方式評估公司的經營業績。

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.

管理階層使用非公認會計準則衡量標準來制定預算、評估和衡量公司的業績，並將這些結果視為公司持續經營績效的指標。該公司認為，這些非公認會計準則財務指標提高了透明度，並更好地反映了企業的基本財務表現。

Therefore, the financial measures we will be covering today will be primarily on a non-GAAP basis unless noted otherwise. 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.

因此，除非另有說明，我們今天討論的財務指標將主要基於非公認會計原則（Non-GAAP）。這些指標與最直接可比較的 GAAP 財務指標的調整包含在我們網站上的收益發布和補充財務資訊中。

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.

投資者應考慮我們今天的所有聲明，以及我們向 SEC 提交的報告，包括我們最新的 10-K 和 10-Q 表格，以便做出明智的投資決策。

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.

除了今天發布的收益報告外，我們還在網站的投資者關係部分發布了季度收益報告，以補充我們今天下午將介紹的內容。

I'll now pass the call to Michelle Brennan.

我現在將把電話轉給米歇爾·布倫南。

Thanks, Eli, and hello, everyone, and thank you for joining us today. I'm pleased to be with you for my first earnings call as interim CEO of Masimo. I strongly believe in the company's long-term growth potential. And the Board and management team are focused on executing our plan to achieve continued growth by capitalizing on the many opportunities we see ahead for this business. At the onset, I want to stress how impressed I have been by the team at Masimo.

謝謝伊萊，大家好，謝謝你們今天加入我們。我很高興能與大家一起參加我作為 Masimo 臨時執行長的第一次財報電話會議。我堅信公司的長期成長潛力。董事會和管理團隊致力於執行我們的計劃，透過利用我們看到的該業務未來的許多機會來實現持續成長。首先，我想強調 Masimo 團隊給我留下了多麼深刻的印象。

Over the past month, I have had many interactions with employees who are energized by our path forward. By our purpose of saving patients' lives and by our innovation-focused culture.

在過去的一個月裡，我與員工進行了多次互動，他們對我們的前進道路充滿了活力。秉承拯救病人生命的宗旨和注重創新的文化。

Notably, we have not seen any critical talent departure since the annual meeting. And in fact, have seen attrition rates decline. With such a strong team, there is no limit to what we can accomplish today and in the future. We have a lot to cover today, so let's jump right in.

值得注意的是，自年會以來，我們沒有看到任何重要人才離職。事實上，員工流動率有所下降。擁有如此強大的團隊，我們今天和未來的成就是無限的。今天我們有很多內容要講，所以讓我們直接開始吧。

I'm going to touch on a number of governance, strategic, and corporate updates. Then Micah will dive into the financials and cover some near-term plans and areas of priority, specifically around our margin improvement initiatives. We will then turn to Q&A and Bilal will join us to answer your questions.

我將討論一些治理、策略和公司的最新情況。然後，Micah 將深入研究財務狀況，並介紹一些近期計劃和優先領域，特別是圍繞我們的利潤率改善計劃。然後我們將進行問答，比拉爾將與我們一起回答您的問題。

With all the significant items currently being considered by the Board, we ask that you limit your questions during this quarterly earnings call to those focused on business and financial performance during the quarter.

鑑於董事會目前正在考慮的所有重要事項，我們要求您在本季度財報電話會議上提出的問題僅限於關注本季度業務和財務業績的問題。

First, let me provide an update on the strategic review of the consumer business. As we previously announced, the Board has engaged Centerview Partners and Morgan Stanley as our financial advisers and Sullivan & Cromwell as a legal adviser to evaluate strategic alternatives for our consumer business. We will provide updates to the market when appropriate. But we want to assure you that this process is fully underway, and we are focused on delivering the best outcomes for our shareholders.

首先，讓我介紹一下消費者業務策略審查的最新情況。正如我們先前宣布的，董事會已聘請 Centerview Partners 和摩根士丹利擔任我們的財務顧問，並聘請 Sullivan & Cromwell 作為法律顧問，以評估我們消費者業務的策略替代方案。我們將在適當的時候向市場提供最新資訊。但我們想向您保證，這個過程正在全面展開，我們致力於為股東提供最佳結果。

Next, our review of the product portfolio and R&D projects is ongoing. But the headline is that we have excellent opportunities for growth and are laser-focused on ensuring we allocate resources to those areas that will drive the greatest return.

接下來，我們對產品組合和研發項目的審查正在進行中。但重點是，我們擁有絕佳的成長機會，並專注於確保我們將資源分配到那些能夠帶來最大回報的領域。

At a high level, we will be focusing on fewer projects and therefore, concentrating on those big market opportunities addressing clear unmet needs. As part of this effort of refocusing the organization, we have also found areas to reduce spending that are not contributing to our long-term growth objectives.

在較高層面上，我們將專注於較少的項目，因此，專注於那些解決明顯未滿足的需求的龐大市場機會。作為重新調整組織重點的努力的一部分，我們還發現了一些需要減少支出的領域，這些支出對我們的長期成長目標沒有貢獻。

However, let me be clear, as we refocus Masimo to capitalize on the long-term growth opportunities in front of us, improved margins will be the output of our efforts, not the input we are not going to make short-term cuts at the expense of long-term growth.

然而，讓我明確一點，當我們重新關注 Masimo 以利用我們面前的長期增長機會時，利潤率的提高將是我們努力的成果，而不是我們不會在短期內削減的投入。 。

Finally, regarding leadership. In terms of the Board, as you recently saw, we have expanded to eight directors, and added Tim Scannell and Wendy Lane. Tim's background leading highly successful commercial organizations in medtech, and Wendy's vast experience overseeing corporate governance and changes and serving and board leadership roles will both be highly additive as we refocus the organization.

最後，關於領導力。就董事會而言，正如您最近所看到的，我們已擴大到八名董事，並增加了蒂姆·斯坎內爾和溫迪·萊恩。提姆（Tim）在醫療科技領域領導非常成功的商業組織的背景，以及溫蒂（Wendy）在監督公司治理和變革以及服務和董事會領導角色方面的豐富經驗，都將在我們重新調整組織重點時得到高度補充。

Tim and Wendy have hit the ground running, and we are excited about what they bring to the boardroom. Let me also provide a brief update on the CEO succession process. As you know, Joe Kiani was not re-elected to the Board at the annual meeting and is no longer CEO.

提姆和溫蒂已經開始行動，我們對他們為董事會帶來的成果感到興奮。我還簡要介紹了執行長繼任流程的最新情況。如你所知，喬·基亞尼 (Joe Kiani) 在年會上沒有再次當選為董事會成員，也不再擔任執行長。

Given the various related matters described in our 8-Ks and 10-Q, including litigation, we are not going to comment further on this matter. I've been very clear that my intention is to guide the company through this initial transition period until a permit CEO is found and then continue to focus on contributing as a member of the Board for the long term.

鑑於我們的 8-K 和 10-Q 中描述的各種相關事項（包括訴訟），我們不會就此事進一步發表評論。我非常明確地表示，我的目的是引導公司度過這個最初的過渡期，直到找到合適的首席執行官，然後繼續專注於作為董事會成員的長期貢獻。

I'm not going to commit to the exact timing of the search process, but I can say that getting a permanent CEO in place is a top priority for the Board. We have Korn Ferry assisting us and the Board is already meeting with excellent candidates. We will do everything we can on our end to keep our foot on the gas during this process, while, of course, ensuring that the candidate we ultimately select is the absolute best choice for the organization.

我不會透露搜尋過程的具體時間，但我可以說，找到永久執行長是董事會的首要任務。我們有光輝國際 (Korn Ferry) 的協助，董事會已經與優秀候選人會面。我們將盡一切努力，在這一過程中保持平穩發展，同時，當然，還要確保我們最終選擇的候選人絕對是組織的最佳選擇。

And now I'll turn the floor over to Micah to dive into the financials for the quarter.

現在我將請 Micah 詳細介紹本季的財務狀況。

Thank you, Michelle, and good afternoon, everyone. For the third quarter, our healthcare revenues were $343 million, which is near the top end of our guidance range and represented 12% growth versus last year. We saw strong growth in our consumable and service revenues, partially offset by a decline in capital equipment and other related products.

謝謝米歇爾，大家下午好。第三季度，我們的醫療保健收入為 3.43 億美元，接近我們指導範圍的上限，與去年相比成長 12%。我們的消費品和服務收入強勁成長，但部分被資本設備和其他相關產品的下降所抵銷。

Driver shipments for the third quarter were approximately 61,000 and were in line with our expectations. Non-healthcare revenues were $161 million, which was near the low end of our guidance range and represented a 6% decline versus the prior year. This business continues to be affected by the weakening environment for luxury consumer purchases as well as slowness in the housing market, which affects product installations and upgrades.

第三季驅動器出貨量約 61,000 台，符合我們的預期。非醫療保健收入為 1.61 億美元，接近我們指引範圍的下限，比上年下降 6%。該業務繼續受到奢侈品消費者購買環境疲軟以及房地產市場放緩的影響，從而影響產品安裝和升級。

Now moving down the P&L. For the third quarter, our consolidated non-GAAP gross margin was 54%, which included gross margins of 62.9% for healthcare and 34.6% for non-healthcare. healthcare gross margin improved 260 basis points year over year and rose 40 basis points sequentially as we continue to benefit from the relocation of our sensor manufacturing to Malaysia, in combination with increased operational efficiencies and a favorable impact related to a higher proportion of our sales coming from consumables.

現在將損益表向下移動。第三季度，我們的綜合非 GAAP 毛利率為 54%，其中醫療保健毛利率為 62.9%，非醫療保健毛利率為 34.6%。醫療保健毛利率年增 260 個基點，環比增長 40 個基點，因為我們繼續受益於將感測器製造轉移到馬來西亞，再加上營運效率的提高以及與更高比例的銷售相關的有利影響來自消耗品。

For our consolidated business, non-GAAP operating profit was $81 million, representing 23% growth versus last year. Our operating margin of 16% improved 230 basis points year over year and rose 130 basis points sequentially from the second quarter. This represents a very strong result considering that we overcame 480 basis points of year-over-year expense headwinds due to the return of performance-based compensation to normal levels in 2024.

對於我們的合併業務，非 GAAP 營業利潤為 8,100 萬美元，比去年增長 23%。我們的營業利潤率為 16%，年比提高了 230 個基點，比第二季度連續提高了 130 個基點。考慮到由於基於績效的薪酬在 2024 年恢復到正常水平，我們克服了 480 個基點的同比費用阻力，這是一個非常強勁的結果。

We continue to make meaningful progress on our margin improvement initiatives, which I will discuss in more detail in a moment. Even with the return of performance-based compensation, we delivered 31% EPS growth to reach non-GAAP earnings per share of $0.98 for the third quarter, which was primarily driven by strong performance from our healthcare business and effective expense management across the organization.

我們繼續在利潤率改善計劃方面取得有意義的進展，我稍後將更詳細地討論這一點。即使基於績效的薪酬回歸，我們第三季度的每股收益仍實現了31% 的增長，達到非GAAP 每股收益0.98 美元，這主要得益於我們醫療保健業務的強勁業績和整個組織有效的費用管理。

Now I'd like to provide an update on our 2024 financial guidance. For the fourth quarter 2024, we are projecting consolidated revenue of $581 million to $611 million and non-GAAP earnings per share of $1.35 to $1.50.

現在我想提供 2024 年財務指引的最新資訊。對於 2024 年第四季度，我們預計合併收入為 5.81 億美元至 6.11 億美元，非 GAAP 每股收益為 1.35 美元至 1.50 美元。

For the healthcare segment, we are projecting revenue of $363 million to $373 million representing 7% to 10% revenue growth. For driver shipments, we expect to ship 60,000 to 65,000 drivers in the fourth quarter. For the non-healthcare segment, we are projecting revenues of $218 million to $238 million.

對於醫療保健領域，我們預計收入將達到 3.63 億美元至 3.73 億美元，營收成長 7% 至 10%。對於驅動程式出貨量，我們預計第四季將運送 60,000 至 65,000 名駕駛員。對於非醫療保健領域，我們預計收入為 2.18 億美元至 2.38 億美元。

Now turning to our full-year 2024 financial guidance. We are now projecting a consolidated revenue range of $2.075 billion to $2.105 billion. For our healthcare segment, we are now projecting revenues of $1.390 billion to $1.400 billion, representing 9% to 10% revenue growth for the year, in line with our prior guidance midpoint.

現在轉向我們的 2024 年全年財務指引。我們目前預計綜合收入範圍為 20.75 億美元至 21.05 億美元。對於我們的醫療保健部門，我們目前預計收入為 13.90 億美元至 14.00 億美元，相當於今年收入成長 9% 至 10%，與我們先前的指導中點一致。

For the nonhealthcare segment, we are now projecting revenues of $685 million to $705 million, which represents a decrease of $20 million at the midpoint versus the prior guidance range. For the full year, we are projecting consolidated non-GAAP gross margin of 53%, which includes healthcare gross margins of 62.7% and nonhealthcare gross margins of 33.7%.

對於非醫療保健領域，我們目前預計收入為 6.85 億美元至 7.05 億美元，與先前的指導範圍相比，中位數減少了 2,000 萬美元。我們預計全年綜合非 GAAP 毛利率為 53%，其中醫療保健毛利率為 62.7%，非醫療保健毛利率為 33.7%。

Further, we are projecting a consolidated non-GAAP operating margin range of 15.7% to 16%, which represents an increase of 50 basis points at the midpoint versus the prior guidance range. Finally, we are now projecting a consolidated non-GAAP EPS range of $3.95 to $4.10, which represents an increase of $0.13 at the midpoint versus the prior guidance range due to strong performance from our healthcare business and effective expense management across the organization, partially offset by the reduction in nonhealthcare revenue.

此外，我們預計綜合非 GAAP 營業利潤率範圍為 15.7% 至 16%，這意味著與先前的指導範圍相比，中點增加了 50 個基點。最後，我們現在預計綜合非GAAP 每股收益範圍為3.95 美元至4.10 美元，這意味著由於我們的醫療保健業務表現強勁以及整個組織有效的費用管理，這意味著與之前的指導範圍相比中點增加了0.13 美元，部分抵消了非醫療收入的減少。

Now I'd like to expand on some of the important initiatives that Michelle had mentioned earlier, which we fully expect will strengthen Masimo's revenue growth and earnings power in 2025 and beyond. We are enthusiastic about the opportunities we see to enhance revenue growth while continuing to expand margins.

現在，我想詳細闡述 Michelle 之前提到的一些重要舉措，我們完全預計這些舉措將增強 Masimo 在 2025 年及以後的收入增長和盈利能力。我們對在繼續擴大利潤的同時提高收入成長的機會充滿熱情。

The management team in partnership with the new business review committee of the Board is in the process of focusing our R&D resources on those projects that will enhance our long-term growth profile, and we are excited about the work we have done to date.

管理團隊與董事會新的業務審查委員會合作，正在將我們的研發資源集中在那些將增強我們長期成長前景的專案上，我們對迄今為止所做的工作感到興奮。

While our foremost focus is on innovation-driven growth, we are also happy to see our margins expand as we right size corporate overhead costs, drive improved gross margin, reduce marketing expenses associated with products that do not show promise of generating meaningful revenue, and take other reasonable cost actions on items unrelated to our top-line growth, such as selling the corporate jet, among other things.

雖然我們最關注的是創新驅動的成長，但我們也很高興看到我們的利潤率不斷擴大，因為我們正確調整了企業管理成本，提高了毛利率，減少了與那些沒有產生有意義收入的產品相關的行銷費用，以及對與我們的營收成長無關的項目採取其他合理的成本行動，例如出售公務機等。

It is still early, and our work is ongoing. But as we look forward to 2025, we believe actions identified to date will deliver at least 200 basis points of additional operating margin while we continue to deliver on our long-term revenue growth expectations.

現在還早，我們的工作仍在進行中。但展望 2025 年，我們相信迄今為止確定的行動將帶來至少 200 個基點的額外營業利潤，同時我們將繼續實現長期收入成長預期。

For context, on our August Q2 earnings call, we detailed for investors a 24% EBIT margin profile for our healthcare business. As we look forward to 2025 and take into consideration the actions identified to date, we expect this margin to be at least 26%.

作為背景，在我們 8 月第二季的財報電話會議上，我們向投資者詳細介紹了我們醫療保健業務 24% 的息稅前利潤率。展望 2025 年，並​​考慮到迄今為止已採取的行動，我們預計這一利潤率至少為 26%。

For those of you trying to estimate our earnings potential, please note that we currently have $38 million per year in net interest expense and approximately 26% effective tax rate and roughly 55 million diluted shares outstanding. We will continue to update the market on the work of the management team and partnership with the Board's business review committee. We expect to provide the next update in January 2025.

對於那些試圖估計我們的獲利潛力的人，請注意，我們目前每年的淨利息支出為 3,800 萬美元，有效稅率約為 26%，稀釋後的流通股約為 5,500 萬股。我們將繼續向市場通報管理團隊的工作以及與董事會業務審查委員會的合作關係。我們預計將於 2025 年 1 月提供下一次更新。

With regard to our strategic review process, the Board has not made a final determination of the manner in which the consumer business will be separated. If, among other things, the Board decides to no longer pursue a spinoff of this business into a publicly traded company, we anticipate treating the consumer business as a discontinued operation upon those decisions being finalized.

關於我們的策略審查流程，董事會尚未最終確定消費者業務的分拆方式。除其他事項外，如果董事會決定不再尋求將該業務分拆為上市公司，我們預計在這些決定最終確定後，將消費者業務視為終止業務。

Further, we would exclude the results for this segment from our non-GAAP earnings and no longer provide guidance for this segment if it still remains with the company into the first quarter of 2025.

此外，我們將這一部門的業績從我們的非公認會計原則收益中排除，並且如果該部門在 2025 年第一季仍保留在公司手中，我們將不再為該部門提供指導。

In closing, our ongoing focus on expanding our footprint with existing customers and winning new customers has built a solid foundation for growth in 2025. As shown in our slides today, the incremental value of new contracts this year now totals $318 million through the third quarter and is continuing to track ahead of last year, which itself was a record for the company.

最後，我們持續致力於擴大現有客戶的覆蓋範圍並贏得新客戶，為 2025 年的成長奠定了堅實的基礎。正如我們今天的幻燈片所示，截至第三季度，今年新合約的增量價值總計 3.18 億美元，並且繼續領先於去年，去年本身就是該公司的記錄。

This clearly demonstrates Masimo's strong market share gains through contracting with our hospital customers and has contributed to a 15% increase in our unrecognized contract revenues. Which have reached $1.65 billion as of the end of the third quarter.

這清楚地表明 Masimo 透過與我們的醫院客戶簽訂合約而獲得了強勁的市場份額，並為我們的未確認合約收入增加了 15%。截至第三季末，這一數字已達到 16.5 億美元。

I'm excited about the strength we are seeing in our core healthcare business. And when you combine that with our ongoing initiatives to separate the consumer business and improve operating margins, we have tremendous opportunity in front of us to achieve our goal of more than doubling our earnings per share within five years and most importantly, increasing shareholder value.

我對我們在核心醫療保健業務中看到的實力感到興奮。當你將這一點與我們正在進行的分離消費者業務和提高營業利潤率的舉措結合起來時，我們面前就有巨大的機會來實現我們的目標，即在五年內將每股收益增加一倍以上，最重要的是，增加股東價值。

With that, we'll open the call to questions. Operator?

至此，我們將開始提問。操作員？

(Operator Instructions) Jason Bednar, Piper Sandler.

（操作說明）Jason Bednar、Piper Sandler。

Good afternoon. Congrats on a nice quarter and great to hear about the stability in the business here. Michelle, I wanted to start with some of your comments and Micah, feel free to weigh in as well. Your pretty direct comments in the press release regarding the actions that have already taken the focused spending on just fewer projects and focus on those with the greatest return I really appreciate the insight you also gave on '25 operating margin for health care. But just to clarify, the 26% for that seems like we now have in place -- does that reflect spending reductions that have taken place to date and up to today? Or does it contemplate additional actions that you still plan to take between now and over the next few months or whatever?

午安.恭喜您度過了一個美好的季度，很高興聽到這裡業務的穩定性。米歇爾，我想從你的一些評論開始，米卡，也請隨意發表意見。您在新聞稿中對已採取的行動進行了相當直接的評論，這些行動已將重點支出集中在更少的項目上，並重點關注那些回報最大的項目，我真的很欣賞您對25 年醫療保健營運利潤率的見解。但需要澄清的是，26% 的比例似乎是我們現在已經到位的——這是否反映了迄今為止已經發生的支出削減？或者它是否考慮了您仍計劃從現在到未來幾個月或其他什麼時間採取的其他行動？

And then one other point on this. Just can you clarify out of that 200 basis points that we're seeing, is that mostly R&D or SG&A? Or do we have some gross margin lift in there as well? Because I believe that was part of the original plan?

然後還有一點。您能否澄清一下我們看到的 200 個基點，主要是 R&D 還是 SG&A？或者我們的毛利率也有一些提升嗎？因為我相信這是原計劃的一部分？

Jason, thank you very much for your question. The 26% contemplates the actions we're going to take between now and year-end. But I'm going to turn it over to Micah to answer the rest of your question.

傑森，非常感謝你的提問。26% 的人考慮從現在到年底我們將採取的行動。但我要把它交給 Micah 來回答你剩下的問題。

Yes, Jason, thanks for the question. Yes, the actions we've taken to date, and we're going to be working through the end of the year through some of these costs initiatives as well as operating margin improvement initiatives. Those we expect that's going to drive our health care margins for 25% to 26% -- at least 26%.

是的，傑森，謝謝你的提問。是的，我們迄今為止已採取的行動，我們將在今年年底前透過其中一些成本舉措以及營業利潤率改善舉措來努力。我們預計這將使我們的醫療保健利潤率提高 25% 至 26%——至少 26%。

And that's just based on some of the actions we've taken to date. We're working through a lot of things to really refocus resources in the organization, reallocate those resources to drive our top line growth and really focus on the projects that are going to deliver the best return.

這只是基於我們迄今為止採取的一些行動。我們正在做很多事情，以真正重新集中組織中的資源，重新分配這些資源以推動我們的營收成長，並真正專注於能夠帶來最佳回報的專案。

So, we feel good about the actions we've taken so far, and we think that those actions will have minimal impact on the top line. And I mentioned a lot of the things that are really contributing to that in terms of corporate overhead costs and rightsizing those driving improved gross margins, reducing marketing expenses associated with products that just aren't driving meaningful revenue and meaningful returns.

因此，我們對迄今為止所採取的行動感到滿意，我們認為這些行動對營收的影響微乎其微。我提到了許多真正有助於實現這一目標的因素，包括企業管理成本、調整那些推動毛利率提高的因素、減少與那些無法帶來有意義的收入和回報的產品相關的行銷費用。

And then we have other cost actions that we mentioned as well. So, those things are well contained. We're being very deliberate and intentional about where we target those and just making sure that we preserve the top line growth and set us up for profitable growth moving forward.

然後我們還有我們提到的其他成本行動。所以，這些東西都被很好地控制住了。我們非常慎重地確定我們的目標，並確保我們保持營收成長，並為未來的獲利成長做好準備。

No. Really helpful. Thanks for that. And then maybe I'll just ask one here on the CEO search process, understanding we're not talking about timing. But, maybe help us out what's being looked for at the Board level for that next CEO? Are we talking a med tech industry veteran, a growth-focused individual or an operations-focused individual, just would love to hear what you're prioritizing in the search. This is understandably a very attractive seat and also an important one for the Board to fill.

不。真的很有幫助。謝謝你。然後也許我會在這裡問一位關於執行長搜尋過程的問題，因為我們不是在談論時間。但是，也許可以幫助我們了解董事會層面正在為下一任執行長尋找什麼？我們談論的是醫療科技產業的資深人士、注重成長的個人還是注重營運的個人，他們只是想聽聽您在搜尋中優先考慮的內容。可以理解，這是一個非常有吸引力的席位，也是董事會需要填補的重要席位。

So we are, first of all, looking at both internal and external candidates. We are looking for a med tech background. We would like to have a balance of operational as well as technical or experience in refreshing pipelines. We want to make sure that the fit is really good with the culture that is here at Masimo because we have a very strong culture of innovation focused and a family type of atmosphere. So we want to make sure that the new CEO will come in and hit the ground running and really is the right person for the long term.

因此，我們首先會考慮內部和外部候選人。我們正在尋找具有醫學技術背景的人。我們希望在更新管道方面保持營運和技術或經驗的平衡。我們希望確保與 Masimo 的文化真正契合，因為我們擁有非常強大的創新文化和家庭氛圍。因此，我們希望確保新任執行長能夠上任並立即投入工作，並且確實是長期的合適人選。

Okay. Thanks, Michelle.

好的。謝謝，米歇爾。

You're welcome.

不客氣。

Marie Thibault, BTIG.

瑪麗蒂博，BTIG。

Hi. Good evening. Thanks for taking the questions and nice quarter. Michelle, glad to be working with you and Micah and Bilal, I'll get to talk to you. I wanted to ask a question here on Malaysia and gross margin. Just update on where we are in realizing some of those benefits. I know a lot of the volume has already flowed to the Malaysia facility, what portion of the gross margin uplift would you say we've seen? And the timing of how we might continue to see some of that benefit roll out?

你好。晚安.感謝您提出問題，祝您季度愉快。米歇爾，很高興與你、麥卡和比拉爾一起工作，我會和你談談的。我想在這裡問一個關於馬來西亞和毛利率的問題。只需更新我們在實現其中一些好處方面的進展即可。我知道很多數量已經流向馬來西亞工廠，您認為我們看到了毛利率上升的多少部分？我們何時才能繼續看到其中一些好處的推出？

Yes. Thank you, Marie. So right now, we're seeing very good improvement this year. I mean if you look at coming into this year, I think our margins last year for health care were 60.9%, we've now ratcheted that up and stepped that up over, I think, two or three guidance raises. So, we're now up to 62.7% is what we're guiding to this year.

是的。謝謝你，瑪麗。所以現在，我們今年看到了非常好的進步。我的意思是，如果你看看今年，我認為我們去年醫療保健的利潤率為 60.9%，我們現在已經提高了這一水平，我認為，這一水平已經提高了兩到三次。因此，我們今年的目標是達到 62.7%。

So -- and I think we came into the year, we're up about 70 to 80 basis points at least from where we came in guiding in the year. So we're seeing good traction in Malaysia. We are, of course, as you know, moving our high-volume manufacturing for sensors over to Malaysia and out of Mexico.

所以，我認為今年我們的利率至少比今年的指導值高了約 70 到 80 個基點。所以我們在馬來西亞看到了良好的吸引力。當然，如您所知，我們正在將感測器的大量生產轉移到馬來西亞並從墨西哥轉移出去。

That's giving us great savings in terms of the comparison of cost structure between those two locations. We are seeing very good manufacturing efficiencies that are starting to flow through inventory and into our margins. In fact, our Q4 margins are implied around 63%.

比較這兩個地點的成本結構，這為我們節省了大量成本。我們看到非常好的製造效率開始透過庫存流入我們的利潤。事實上，我們第四季的利潤率隱含在 63% 左右。

So we delivered 62.9% this quarter. And we're tracking very, very well as we move into 2025, and we expect those margins to continue to expand as we become more efficient with that workforce and continue to move some more production over into Malaysia.

所以本季我們的交付率為 62.9%。進入 2025 年，我們的追蹤情況非常非常好，隨著我們提高勞動力效率並繼續將更多生產轉移到馬來西亞，我們預計這些利潤率將繼續擴大。

Okay. That's really helpful. Micah, my follow-up here then just a headline overview of the health care environment in general. In the past, you've given us some color on hospital census, OEM activity, ordering activity. Maybe any early thoughts on flu season as well as we think about Q4, Q1? Thank you.

好的。這真的很有幫助。Micah，我的後續內容只是對整體醫療保健環境的總體概述。過去，您給我們提供了一些有關醫院普查、OEM 活動、訂購活動的資訊。也許對流感季節以及我們對第四季、第一季的一些早期想法有什麼看法？謝謝。

Yes. So in terms of census, I think we've talked about implied in our guidance last quarter, it was that somewhere between 2.5% to 4%. And in terms of census contribution in terms of growth. That's -- we're still seeing it very stable. And it's -- census has been stable.

是的。因此，就人口普查而言，我認為我們已經討論了上季指引中隱含的內容，即 2.5% 至 4% 之間。就人口普查對成長的貢獻而言。也就是說——我們仍然看到它非常穩定。人口普查一直穩定。

We're probably now with what we saw the result in Q3 and what we're expecting for the year, we're still in that zone. So it's been very stable, very strong. Ordering patterns are much better than they had been in the past, and the business back to where we can predict it much better than in the past few years. So we're happy with where things are and it's giving us confidence in our guidance for the fourth quarter and as we move into next year.

我們現在可能已經看到了第三季的結果以及我們對今年的預期，我們仍然處於那個區域。所以它非常穩定，非常強大。訂購模式比過去好得多，業務也回到了我們可以預測的水平，比過去幾年好得多。因此，我們對目前的情況感到滿意，這讓我們對第四季和明年的指導充滿信心。

And then, Marie, this is Bilal. One thing to add related to flu season, it's probably too early to predict that at this point. But like Micah said, everything we've anticipated so far has held steady for us.

然後，瑪麗，這是比拉爾。需要補充的一件事與流感季節有關，目前預測這一點可能還為時過早。但正如邁卡所說，到目前為止我們所預期的一切都對我們來說是穩定的。

Okay. Very good. Thank you.

好的。非常好。謝謝。

Michael Polark, Wolfe Research.

邁克爾·波拉克，沃爾夫研究中心。

Good afternoon. Thank you. I'm wondering if you might be willing to share a product or 2 or 3 that the organization is deemphasizing here, just to put a little more meat on the bone around how you're perceiving these opportunities as you review the broader portfolio and look to drive efficiencies?

午安.謝謝。我想知道您是否願意分享該組織在此不強調的一個或兩個或三個產品，只是為了在您審查更廣泛的產品組合和查看時如何看待這些機會提供更多內容提高效率？

Yes. So there are a few products that we've deemphasized. One of them is Opioid Halo. If you guys remember, we made a push for monitoring patients on Opioids at home as well as Bridge, which was a therapeutic device for patients or people on opioids that wanted to reduce the pain of -- of removing Opioids basically we're coming off Opioids. So both of those products are examples that we've reduced from our current portfolio.

是的。因此，我們不再強調一些產品。其中之一是阿片類藥物光環。如果你們還記得的話，我們推動了在家中監測使用阿片類藥物的患者以及Bridge，這是一種治療設備，為患者或使用阿片類藥物的人提供治療設備，希望減少移除阿片類藥物的痛苦，基本上我們正在停止使用鴉片類藥物鴉片類藥物。因此，這兩種產品都是我們從目前產品組合中減少的範例。

Michael, I would also add is we had some feasibility studies that were being done on noninvasive monitoring of cancer, bilirubin and diabetes. And we really have felt like we had not made the progress we would expect to bring those products to market. So we have also discontinued those.

邁克爾，我還想補充一點，我們正在進行一些關於癌症、膽紅素和糖尿病的非侵入性監測的可行性研究。我們確實覺得我們沒有取得預期的進展，無法將這些產品推向市場。所以我們也停止了這些。

And Mike, can I just add to that, too. In terms of opioid, I want to be clear though, Opioid Halo, we are still -- we still have products that we're using in that area that are going to be focused in the hospital. So I want to make sure that's clear that those products will still be very, very important for the business as we're in the hospital. It's just as we think about the remote monitoring, especially of illicit users, those types of things, that's where we think it's a much more challenging pathway. It's a road to reimbursement, some of those things that we're -- we really want to get more efficient on and not focus on in terms of the long term right now.

麥克，我也可以補充一下嗎？就阿片類藥物而言，我想澄清的是，阿片類藥物光環，我們仍然擁有在該領域使用的產品，這些產品將重點用於醫院。因此，我想確保清楚的是，當我們在醫院時，這些產品對我們的業務仍然非常非常重要。正如我們考慮遠端監控，特別是非法使用者的遠端監控，這些類型的事情，我們認為這是一條更具挑戰性的途徑。這是一條報銷之路，其中一些事情我們確實希望提高效率，而不是現在只專注於長期目標。

The direct-to-consumer market.

直接面向消費者的市場。

Yes, yes.

是的，是的。

Thank you. As a follow-up topic, I want to ask on Apple. My understanding is this trade secrets trial is starting here again or the retrials this week, I believe. Maybe for Michelle, just curious the -- how does the Board view this investment this pursuit any comments on what you've learned about this opportunity as the team has dug in? Thank you.

謝謝。作為後續話題，我想問關於蘋果的問題。我的理解是，商業機密審判將在這裡再次開始，或者我相信本週將進行重審。也許對米歇爾來說，只是好奇——董事會如何看待這項投資和追求，對您在團隊挖掘過程中了解到的這個機會有什麼評論嗎？謝謝。

You're welcome. Well, as an innovation leader, we are going to definitely defend our patents. And I don't think that's new news to anyone. What I would like to do is turn it over to Bilal, who is very active with this litigation to really comment on where we are.

不客氣。嗯，身為創新領導者，我們一定會捍衛我們的專利。我認為這對任何人來說都不是什麼新消息。我想做的就是把它交給比拉爾，他在這場訴訟中非常積極，對我們的處境做出了真正的評論。

Thanks, Michelle. The California trial for captive trade secret did start. It actually started today. It's a bench trial. So we're not going to be able to predict the timing of it, and we don't have any further updates at this time.

謝謝，米歇爾。加州對自有商業機密的審判確實開始了。實際上是從今天開始的。這是一場法庭審判。所以我們無法預測它的時間，而且目前我們沒有任何進一步的更新。

Rick Wise, Stifel.

瑞克懷斯，史蒂菲爾。

Thank you. Good afternoon, everybody. I guess I observed that it's been four or five quarters now of better-than-expected health care sales performance driver shipments, backlog growth. The business does seem in strong shape. As we move towards '25. You gave us a couple of hints about our thoughts -- early thoughts, Micah, about the potential for further operating margin expansion.

謝謝。大家下午好。我想我觀察到，已經有四、五個季度好於預期的醫療保健銷售業績推動了出貨量和積壓訂單的成長。該業務看起來確實狀況良好。當我們邁向'25。你給了我們一些關於我們想法的提示——米卡，關於進一步擴大營業利潤率的潛力的早期想法。

Help us reflect on the sales outlook and some of the key drivers, some of the things that you're feeling positive about maybe if there's something you're concerned about so that we can see the -- we can start to anticipate just early on as we build our models how we should start to be thinking about the '25 year from a revenue point of view?

幫助我們反思銷售前景和一些關鍵驅動因素，一些您感到積極的事情，也許如果有您擔心的事情，以便我們可以看到 - 我們可以儘早開始預測當我們構建模型時，我們應該如何開始從收入的角度思考25 年？

Yes. Thanks, Rick. So we did lay out this earlier this year. I think it was in June, our long-range plan as far as the cadence of revenue growth as well as operating margin expansion, and we're already seeing some very good progress on the operating margin side. And I think if you really frame up revenue, the way I look at it is, number one, all of our product platforms, we're very confident in starting with SET.

是的。謝謝，瑞克。所以我們今年早些時候確實佈局了這一點。我認為那是在六月，我們的長期計劃是關於收入成長和營業利潤率擴張的節奏，我們已經看到營業利潤率方面取得了一些非常好的進展。我認為，如果你真的確定收入，我的看法是，第一，我們所有的產品平台，我們對從 SET 開始非常有信心。

And we've given a long-term planned range of 7% to 10% growth. We've broadened it a little bit more just because we are growing off a much larger base. So high single digit to 10% growth. But if you look at SET, we expect SET to perform -- continue to perform in that range of long of long term that 6% to 8% rainbow double-digit growth somewhere between, call it, 10% to 20% for brain monitoring as well as Capnography. And then if you start to look at hospital automation, that growing 20% or more.

我們給出了 7% 至 10% 增長的長期計劃範圍。我們將其範圍擴大了一些，只是因為我們的基礎更大。如此高的個位數增長至 10%。但如果你看看 SET，我們預計 SET 會繼續在長期的範圍內表現，即 6% 到 8% 的彩虹兩位數增長，稱之為 10% 到 20% 用於大腦監測以及二氧化碳圖。然後，如果您開始關注醫院自動化，那麼該數字將增加 20% 或更多。

So -- so those are the key categories we've laid out. But some of the things that I'm really excited about, and I know Bilal is as well and even as we talk with the Board, I mean, we're -- we're very excited about the opportunity with rainbow and hemodynamics, combining the capabilities of total hemoglobin, continuous hemoglobin measurements with cardiac output that we acquired from LiDCO or when we acquired LiDCO.

這些是我們列出的關鍵類別。但有些事情我真的很興奮，我知道比拉爾也是如此，甚至在我們與董事會交談時，我的意思是，我們對彩虹和血流動力學的機會感到非常興奮，將總血紅蛋白、連續血紅蛋白測量與我們從LiDCO 獲取或在獲取LiDCO 時獲取的心輸出量相結合。

Bringing that platform together, that's another new product platform that we're very excited about that we're rolling out. The last one -- or another one -- another example is ORi as we start to launch that as well in the US market now that we have 510(k) clearance. And we've always had that outside the US, but now we're really now that we have the de novo clearance, we're able to really launch that in the US.

將該平台整合在一起，這是我們即將推出的另一個新產品平台，我們對此感到非常興奮。最後一個（或另一個）另一個例子是 ORi，我們現在已經獲得 510(k) 許可，也開始在美國市場推出該產品。我們一直在美國以外的地方這樣做，但現在我們真的有了從頭許可，我們能夠真正在美國推出它。

Anything else you want to add Bilal?

比拉爾還有什麼要補充的嗎？

Yes. I mean we're going to continue to expand our platform. One of them that's exciting is also the Radius VSM. That's our new wearable vital times monitor designed for the general care floor. And this product, including the LiDCO product that Micah mentioned, our hemodynamics platform, we're just starting the phases of launch throughout this year and next year. So it should be exciting for us.

是的。我的意思是我們將繼續擴大我們的平台。Radius VSM 也是其中令人興奮的一項。這是我們專為普通護理樓層設計的新型可穿戴生命週期監測器。這個產品，包括Micah提到的LiDCO產品，我們的血流動力學平台，我們才剛開始今年和明年的推出階段。所以這對我們來說應該是令人興奮的。

That's great. And just as a follow-up, Micah, you've been kind enough in many calls past to talk about what might push numbers toward the lower or the higher end of the various ranges you've contemplated? Maybe talk specifically about for example, drivers, it seems like a wide range for the fourth quarter.

那太棒了。作為後續行動，Micah，您在過去的許多電話中都非常友善地談論了哪些因素可以將數字推向您考慮的各種範圍的較低或較高端？也許具體談談，例如，司機，第四季的範圍似乎很廣。

Is there something that would get you unique that would get you more toward that 65,000 range? Or -- and again, just talk us through the near-term outlook and some of the various moving pieces? Thank you for the responses.

有什麼東西可以讓您變得獨一無二，讓您更接近 65,000 的範圍嗎？或者——再說一遍，只是向我們介紹一下近期前景和一些不同的動態？感謝您的回覆。

Yes. Thank you, Rick. What we can control, Rick, is more the direct placement of our drivers in terms of Masimo branded drivers. And that's -- that represents 25% of our total drivers that we ship around that -- that zone. The rest is OEMs. So it's all really dependent on OEM ordering.

是的。謝謝你，瑞克。Rick，我們可以控制的更多的是直接將我們的發球桿放置在 Masimo 品牌的發球桿上。這代表了我們在該區域運送的司機總數的 25%。剩下的就是OEM。所以這完全取決於 OEM 訂購。

But we feel good about that range for Q4. I think that that's going to be a steady quarterly range as we move into next year. And hopefully, we'll continue to -- that will continue to climb. But we don't want to get ahead of ourselves there. We want to be thoughtful just because we don't control the other portion of that.

但我們對第四季的這個範圍感到滿意。我認為，隨著我們進入明年，這將是一個穩定的季度範圍。希望我們能繼續下去——這數字將繼續攀升。但我們不想在這方面超前。我們想要深思熟慮，只是因為我們無法控制其中的其他部分。

And a lot of that is dependent on how OEMs are managing their own inventory levels, those types of things. We've seen that as a challenge in the past, and we want to be thoughtful of that as we move forward.

這在很大程度上取決於原始設備製造商如何管理自己的庫存水準等。我們過去認為這是一個挑戰，我們希望在前進時考慮到這一點。

But we feel very good about getting the new drivers we need to deliver the growth, which is really coming from all the record contracting we've seen over the past few years. And this year, as I mentioned in my prepared remarks, is we're already tracking at $318 million for this year, and we're hoping to be north of that $400 million watermark, which is an important level for us to really drive that growth year in, year out.

但我們對獲得實現成長所需的新驅動力感到非常高興，這實際上來自我們過去幾年所看到的所有創紀錄的合約。正如我在準備好的發言中提到的，今年我們的目標已經是 3.18 億美元，我們希望能夠突破 4 億美元的大關，這是我們真正推動這一目標的一個重要水平。地增長。

So I think feeling very good about that. Our unrecognized contract revenues are up 15% due to that strong contracting, and we're set up very well as we move into 2025.

所以我認為對此感覺非常好。由於合約強勁，我們的未確認合約收入成長了 15%，而且我們在進入 2025 年時已經做好了準備。

Thanks so much.

非常感謝。

You're welcome.

不客氣。

Matt Taylor, Jefferies.

馬特泰勒，杰弗里斯。

Thank you for taking the question. I guess my first question on the margin progression. I know you talked about the 26% from the actions that you've taken. And in the LRP update that we had earlier this year, you talked about getting back to a cadence of about 100 basis points a year over that plan. I guess beyond the 26% , is that the right tables to think about? Or do you think you could do better than that?

感謝您提出問題。我想我的第一個問題是關於利潤進展的。我知道您談到了您所採取的行動中的 26%。在我們今年稍早發布的 LRP 更新中，您談到要恢復到每年 100 個基點左右的節奏。我想除了 26% 之外，這是值得考慮的正確表格嗎？或者你認為你可以做得更好？

I think as you look at the 26% for next year and then move past that, I think we would expect to at least do 100 basis points, if not better. So getting back into that type of cadence. But we're really taking a hard look at everything and making sure that we can optimize everywhere we can to not only this is not about just margin improvement, but it's really refocusing the organization to deliver the growth over the long term and really focusing on those most important projects. And I think we'll continue to see benefits play out as we move forward that could put us above that cadence.

我認為，當你看看明年的 26%，然後超越這個數字時，我認為我們預計至少會成長 100 個基點，如果不是更好的話。所以回到那種節奏。但我們確實正在認真審視一切，並確保我們能夠在任何地方進行優化，這不僅是為了提高利潤率，而且是真正重新調整組織的重點，以實現長期增長，並真正專注於那些最重要的項目。我認為，隨著我們的前進，我們將繼續看到好處發揮出來，這可能會讓我們超越這種節奏。

Yes, I think it's important -- I'm sorry, I just want to add, Matt, but I think it's important that we are making sure that going after those big opportunities sitting in our pipeline fully resourcing those opportunities. So we drive really strong growth. It's just as important for our margin improvement as are some of the cost structure or cost initiatives we've talked about.

是的，我認為這很重要——很抱歉，我只是想補充一點，馬特，但我認為重要的是，我們要確保在抓住我們管道中的那些巨大機會時充分為這些機會提供資源。因此，我們推動了真正強勁的成長。這對於我們的利潤率提高與我們討論過的一些成本結構或成本計劃同樣重要。

Thank you. And just a follow-up on the components of revenue, thinking about the go forward here. You had a really nice improvement in the revenue per driver this year. The installed base is up [3%], but that really stands out to 13% growth in utilization. How would you think about those two pieces going forward?

謝謝。這只是收入組成部分的後續行動，思考這裡的進展。今年每位司機的收入有了很大的提高。安裝基數成長了 [3%]，但利用率成長了 13%。您如何看待這兩件作品的未來？

Yes. I think we're -- we see revenue per driver. And if you really dig deeper, it's really revenue per bed and per patient. And -- that's something I know Bilal's laser-focused on is really driving that in terms of our -- how we think about the future.

是的。我認為我們看到了每個司機的收入。如果你真正深入挖掘，它實際上是每張床位和每位患者的收入。我知道比拉爾的專注確實推動了我們對未來的思考。

And if you look at it, we're continuously not only up charging to more differentiated technologies that carry higher premiums, but we're also continuing to build out our connectivity platform and the way that we can monetize some advanced algorithms for decision support and those types of things as well as service revenues.

如果你仔細觀察，我們不僅不斷提高附加費更高的差異化技術的收費，而且還繼續建立我們的連接平台以及我們可以透過一些先進演算法貨幣化的方式，以提供決策支援和服務。事情以及服務收入。

So as we look forward into the future, that revenue per driver is going to be more meaningful than just an installed base growth. And I think that's going to be something that we'll talk more and more about as we move forward. Bilal, do you want to add anything there?

因此，當我們展望未來時，每位司機的收入將比僅僅安裝基礎的成長更有意義。我認為隨著我們的前進，這將是我們將越來越多地討論的事情。Bilal，您想補充什麼嗎？

No, just as Micah said, the additional technologies we provide now, it's not just pulse oximetry, but you guys know it expands across our different platforms. So we're really looking at that closely to see from each bed how many of the platforms can apply on a per patient basis as we expand or after we land in terms of expanding within our installed base.

不，正如 Micah 所說，我們現在提供的附加技術不僅僅是脈搏血氧測定法，而且你們知道它可以擴展到我們的不同平台。因此，我們確實正在仔細研究這一點，以了解在我們擴展時或在我們的安裝基礎擴展後，每個床位可以應用多少個平台。

Thank you so much.

太感謝了。

You're welcome.

不客氣。

Vik Chopra, Wells Fargo.

維克喬普拉，富國銀行。

Hey, good afternoon and thanks for taking the questions. So apologize that this has already been asked. But maybe just on your updated guidance, just talk about what gives you confidence in this new guidance range and what gets you to the top end versus the bottom end of your guidance?

嘿，下午好，感謝您提出問題。所以很抱歉這個問題已經被問過。但也許只是在您更新的指導上，談談是什麼讓您對這個新的指導範圍充滿信心，以及是什麼讓您到達指導的頂端與底端？

Yes. Thanks, Vik. Yes, I'd say right now, I mean, we're -- we have a lot of opportunities in front of us in terms of the health care business. We expect to see very good strength in, for example, rainbow platform in Q4 and -- and also in brain monitoring, we're expecting some good growth there. In terms of what puts us at the higher low end, I think it's all really just going to be dependent on census at this point.

是的。謝謝，維克。是的，我現在想說，我的意思是，在醫療保健業務方面，我們面前有很多機會。我們預計在第四季度看到彩虹平台等方面的強勁實力，並且在大腦監測方面，我們預計會有良好的成長。就我們處於較高低端的原因而言，我認為目前這一切實際上都取決於人口普查。

we feel good about the -- of course, the range and the midpoint of the range is really reflective of the historical seasonality of the business, which puts about 26.5% of revenues in the fourth quarter, and that's where our guide is at the midpoint. So it's really going to be dependent on the census, how that moves in Q4, if it's a strong flu season, some of those things can contribute to the higher end of that range.

我們對此感覺良好——當然，範圍和範圍的中點確實反映了業務的歷史季節性，其中第四季度收入約佔 26.5%，而這正是我們的指南處於中點的位置。因此，這實際上取決於人口普查，第四季度的情況如何，如果是流感季節，其中一些因素可能會導致該範圍的高端。

But we're excited about finishing the year strong. We think that by the end of the year, we're going to see very strong performance across all platforms that are in line with our growth targets, and that's going to set us up very well moving into next year.

但我們很高興能以強勁的勢頭結束這一年。我們認為，到今年年底，我們將在所有平台上看到非常強勁的業績，這符合我們的成長目標，這將為我們進入明年做好準備。

In terms of nonhealth care business, that's -- consumer is a very difficult business to predict. But we have lowered the range at the midpoint. Now that range really reflects the historical seasonality. We've derisked some of the headphone growth that we had in there and some of the core growth and as we take a look at that, I mean, I think the midpoint of that guidance range is right there at 33%, which is our the historical seasonality of that business. And if you look, I mean, that the decline in that business that started last year has been moderating throughout this year, and we expect to see growth in the fourth quarter there.

就非醫療保健業務而言，消費者是一個非常難以預測的業務。但我們已經降低了中點的範圍。現在這個範圍確實反映了歷史季節性。我們已經消除了一些耳機成長和一些核心成長的風險，當我們審視這一點時，我的意思是，我認為該指導範圍的中點就在 33%，這是我們的目標該業務的歷史季節性。如果你看的話，我的意思是，去年開始的這項業務的下滑今年全年一直在放緩，我們預計第四季度會出現成長。

Got it. Thank you for that comprehensive answer. And just as we look at our models for next year, maybe just talk about how you're thinking about the outlook for your end markets in 2025. and any potential headwinds and tailwinds for next year? Thank you.

知道了。感謝您的全面回答。正如我們審視明年的模型一樣，也許只是談談您如何看待 2025 年終端市場的前景。謝謝。

Yes. Thank you, Vik. I'd say in the end markets, I mean, we have a very as you know, a very strong business that's really predicated around the the installed base, the large installed base we have, but also our ability to generate revenue per driver. And a large amount of our revenue is being contracted this year that's setting us up very well for growth in the next year. So with the strength we're seeing in contracting, we're feeling very good heading next year into that end market for health care.

是的。謝謝你，維克。我想說，在終端市場，我的意思是，我們擁有非常強大的業務，這確實取決於安裝基礎，我們擁有龐大的安裝基礎，而且還有我們為每個司機創造收入的能力。今年我們的大部分收入都被收縮，這為我們明年的成長奠定了良好的基礎。因此，憑藉我們在合約方面看到的實力，我們對明年進入醫療保健終端市場感覺非常好。

And again, it's going to be dependent on how that fluctuates based on census. But everything is pointing to a strong year moving into 2025. In terms of the consumer market, it's -- there's a lot going on there with elections and how things will play out moving forward. a little bit more difficult to predict, but I think that business seems to be stabilizing more and we do have a lot of new product introductions that are going to be coming out in Q4 and Q1. That hopefully will return that business to growth.

再說一次，這將取決於人口普查的波動。但一切都顯示 2025 年將是強勁的一年。就消費市場而言，選舉以及未來的發展將發生很多事情。有點難以預測，但我認為業務似乎更加穩定，我們確實有很多新產品將在第四季度和第一季推出。這有望使該業務恢復成長。

Mike Matson, Needham.

麥克馬森，李約瑟。

Yes. Thanks. So I just want to ask one on the Malaysian sensor production. So as we get through the end of the year here, how much of that is completed? And to what degree is that going to continue to be a benefit to margins in 2025?

是的。謝謝。所以我只想問一下馬來西亞感測器生產情況。那麼，當我們度過今年年底時，其中完成了多少？到 2025 年，這將在多大程度上繼續對利潤率帶來好處？

Yes. Thank you for that question, Mike. If you look at where we are, especially as we exit this year, majority of our high-volume sensors will be manufactured in Malaysia as we exit. We made a lot of progress this year that's going to carry in some margin expansion in the next year. if we look at what's next, it's going to be moving into other -- some other categories like disposables and if you think about capnography with [arcanulas], that will be some other products that we're in the process of working and moving over there.

是的。謝謝你提出這個問題，麥克。如果你看看我們現在的處境，尤其是我們今年退出時，我們的大部分大批量感測器將在我們退出時在馬來西亞製造。今年我們取得了很大進展，明年的利潤率將有所擴大。如果我們看看接下來會發生什麼，它將進入其他一些其他類別，例如一次性用品，如果您考慮使用[arcanulas]進行二氧化碳監測，那將是我們正在研究和轉移的其他一些產品那裡。

So all those things are going to give us good momentum into next year. And it's still early. We have a lot of work to do to finalize the plans. But I would say, if you look at our long-term plan as we were trying to march towards 66%, we've already raised up towards 62.7% this year for the full year. And that implied previously about 350 basis points of margin expansion over the course of five years. So if you average that out, you're looking at about 70 basis points per year.

因此，所有這些事情都將為我們明年帶來良好的動力。而且現在還早。為了最終確定計劃，我們還有很多工作要做。但我想說，如果你看看我們的長期計劃，因為我們正試圖向 66% 邁進，那麼今年我們已經將全年的成長率提高到 62.7%。這意味著先前五年內利潤率將擴大約 350 個基點。因此，如果將其平均下來，每年的漲幅約為 70 個基點。

And I think we're feeling very good about the 70 and hopefully, we can maybe even improve that, but that's where we feel good about right now.

我認為我們對 70 感覺非常好，希望我們甚至可以改進它，但這就是我們現在感覺良好的地方。

Okay. Got it. And then just I think I know the answer to this, but I want to make sure I'm not doing something incorrectly here. So for next year, you're talking about the 200 basis points of operating margin improvement. And that -- it sounds like it's coming from these cost initiatives, but does that also include this underlying improvement that you'd have in a normal year just from leverage and other other efforts?

好的。知道了。然後我想我知道這個問題的答案，但我想確保我在這裡沒有做錯事。因此，明年的營業利益率將提高 200 個基點。這聽起來像是來自這些成本計劃，但這是否也包括在正常年份僅透過槓桿和其他努力就能實現的潛在改善？

So in other words, that 100 basis points a year, you're talking about in a normal year is included in that 200? Or would that be on top of that 200?

換句話說，你所說的正常年份的每年 100 個基點包含在 200 個基點中嗎？或者說是在那 200 條之上？

Yes, it's included. So we've incorporated the gross margin expansion as well as some of the cost improvement initiatives we've put in place, and that's all incorporated into how we're thinking about the -- getting to at least 26% next year.

是的，它包括在內。因此，我們已經將毛利率擴張以及我們已經實施的一些成本改進措施納入其中，這些措施都納入了我們對明年至少達到 26% 的考慮。

Okay. Got it. And then finally, just on the consumer potential divestiture or separation. I know you had put some estimates out there previously. Are those still valid -- and putting aside the interest expense because that's obviously going to depend on how much you get to the business -- sorry, interest expense savings. Would the divestiture be accretive or dilutive to Masimo's EPS?

好的。知道了。最後，關於消費者潛在的剝離或分離。我知道你之前已經做了一些估計。這些是否仍然有效 - 並拋開利息費用，因為這顯然取決於你對業務的投入程度 - 抱歉，利息費用節省。此次剝離會增加還是稀釋 Masimo 的每股盈餘？

Yes. I think, Mike, the reason we're putting that out there is so you can really model the health care business because depending on what the Board finalized in terms of the decision, we -- as I mentioned in the prepared remarks, we would most likely move that into discontinued operations. So I'd say, really think about the 26% margins for the health care business, modeling the interest expense there and as well as the tax rate and also the share count, it will give you a good estimate of what we're -- how we're thinking about 2025.

是的。我認為，麥克，我們將其發布的原因是這樣您就可以真正為醫療保健業務建模，因為根據董事會最終的決定，我們 - 正如我在準備好的發言中提到的那樣，我們將最有可能將其轉入停產業務。所以我想說，認真考慮一下醫療保健業務 26% 的利潤率，對那裡的利息費用、稅率和股票數量進行建模，它會讓你對我們的情況有一個很好的估計—— - 我們如何看待2025 年。

Jayson Bedford, Raymond James.

傑森貝德福德，雷蒙德詹姆斯。

Thanks and congrats on the progress here. I just have a few follow-ups, a little random here. But just on the capital side, selling capital, it still seems a bit heavy from a growth perspective. Are you seeing any changes in the environment? And can I assume that most of this is still on the OEM side?

感謝並祝賀這裡的進展。我只有一些後續行動，這裡有點隨機。但光是在資本方面，拋售資本，從成長的角度來看，還是顯得有些沉重。您看到環境有什麼改變嗎？我可以假設其中大部分仍然在 OEM 方面嗎？

Yes. I believe most of that is on the OEM side. But when we were looking at our own capital, we're still seeing slowness in terms of capital purchases and hospitals, and we hope that starts to turn around for us next year.

是的。我相信其中大部分是在 OEM 方面。但當我們審視自己的資本時，我們仍然看到資本購買和醫院的進展緩慢，我們希望明年這種情況開始好轉。

Jason, we think that's been a headwind for us all this year, but we think it's stabilizing. We're past the point of where we saw a pullback in drivers that we were shipping to OEMs earlier this year, and that's been climbing sequentially as we move throughout this year, and it's going to set us up very well as we move into next year, so.

傑森，我們認為這對我們今年來說都是一個逆風，但我們認為它正在穩定下來。我們已經過了今年早些時候向 OEM 供應的驅動程式數量有所減少的情況，而且隨著我們今年的發展，這一情況一直在逐年攀升，這將為我們進入明年做好準備。 。

What do you think the issue is, meaning hospitals seem flush with cash. I'm just curious as to -- I assume it's not competitive?

您認為問題是什麼，這意味著醫院似乎現金充裕。我只是好奇——我認為它沒有競爭力？

No, we don't believe it's competitive. We believe they've gone through a cycle with their -- with their manage capital. And as they come out of that right now, I think they're being very selective in terms of where they're using their capital they probably put on hold a few of the larger projects, I think imaging and everything around that.

不，我們不認為它具有競爭力。我們相信他們的管理資本已經經歷了一個週期。當他們現在走出困境時，我認為他們在使用資金的方面非常有選擇性，他們可能會擱置一些較大的項目，我認為成像和與之相關的所有項目。

So I think they're prioritizing those before they come back and replenish or update their monitoring solutions. We should see that start coming back next year. But I think it's a prioritization based on where they were and where they are today.

所以我認為他們在回來補充或更新他們的監控解決方案之前會優先考慮這些。我們應該會看到這種情況明年開始回歸。但我認為這是一個基於他們過去和現在的情況的優先順序。

That's helpful. Thank you. On revenue per driver, I think one of the components after utilization is price. And so if you could talk about just price, have you been able to take price over the last year?

這很有幫助。謝謝。就每位司機的收入而言，我認為利用率之後的組成部分之一是價格。因此，如果您可以只談論價格，那麼去年您是否能夠了解價格？

Yes. I'd say, Jayson, price is stable to positive. So we continue to -- we have CPI clauses that are tied to the the medical or the health care equipment index and those are part of our contracts. We do increase for that each year. And you do get some modest price out of that.

是的。我想說，傑森，價格穩定到正值。因此，我們繼續 - 我們有與醫療或醫療保健設備指數掛鉤的消費物價指數條款，這些條款是我們合約的一部分。我們每年都會增加這一點。而且你確實能從中得到一些適中的價格。

Of course, we're also subject to where a lot of customers are under the GPO contracting. So that gives you somewhat of a ceiling there over time. But we do see some prices stable to modest improvement each year.

當然，我們也受到許多客戶簽訂 GPO 合約的約束。因此，隨著時間的推移，這會為你帶來一定的上限。但我們確實看到一些價格每年穩定到小幅改善。

Okay. Okay. And then just last for me. I feel like I have to ask it. Is there anything assumed in the fourth quarter guidance for disruption from hurricanes or IV solutions?

好的。好的。然後就對我來說最後一次。我感覺我必須要問一下。第四季指導中是否對颶風或 IV 解決方案造成的干擾做出了任何假設？

No, nothing is -- we're not -- we don't have anything in there in terms of -- we don't see any disruption in terms of -- with our business and revenue for the fourth quarter.

不，沒有什麼是——我們沒有——我們沒有任何東西——我們沒有看到任何干擾——我們第四季度的業務和收入。

Fair enough. Thank you.

很公平。謝謝。

Thank you.

謝謝。

And ladies and gentlemen, this concludes today's call and we thank you for your participation. You may now disconnect.

女士們、先生們，今天的電話會議到此結束，我們感謝你們的參與。您現在可以斷開連線。