ResMed delivered a solid Q4 FY2024, with group revenue of $1.223 billion, up 9% year over year (10% in constant currency). Growth was broad-based across devices (+6%), masks and accessories (+15%), and software-as-a-service (SaaS) (+10%), underscoring the company’s diversified, end-to-end sleep and breathing health platform. Gross margin expanded 330 basis points to 59.1%, driven by cost improvements, favorable mix, and higher selling prices, despite freight headwinds that management expects to persist into fiscal 2025. Operating income rose about 30% year over year, delivering a non-GAAP and GAAP-friendly trajectory with net income up roughly 30% and earnings per diluted share around $1.98 in the quarter.
Management emphasized operating leverage and the company’s digital health ecosystem as core growth accelerants. AirView now contains over 28 million patient records, myAir surpassed 8.3 million users, and the company is expanding AI capabilities (including Dawn, the AI sleep concierge) across regions to drive adoption and adherence. The residential care software (Brightree, MEDIFOX DAN) segment posted another strong quarter, with double-digit growth and an expectation of ongoing high single-digit to low double-digit growth in FY2025, aided by scale efficiencies and cross-segment synergies.
Looking ahead, ResMed reaffirmed a FY2025 gross margin target of 59% to 60%, with SG&A expected to be 18%–20% of revenue and R&D at 6%–7% of revenue, subject to currency moves. The firm highlighted several strategic tailwinds, including GLP-1 obesity/diet-related therapies that appear to increase patient engagement with PAP therapy, and long-term megatrends in consumer wearables and digital health that may expand the addressable sleep health market. Risks include ongoing freight-cost headwinds, currency fluctuations, competitive dynamics (notably Philips’ renewed market presence in multiple regions), and reimbursement environments. Overall, the combination of durable device and software revenue, a robust cash flow engine, and a clear path to profitability supports a constructive long-run investment thesis for ResMed.