Masimo at Jefferies Conference: Strategic Growth and Innovation

On Wednesday, 04 June 2025, Masimo Corporation (NASDAQ:MASI) presented its strategic direction and performance at the Jefferies Global Healthcare Conference 2025. The company highlighted its robust Q1 growth driven by consumable and capital sales, while also addressing challenges like a recent cyber security incident. Under the leadership of CEO Katie Seisman, Masimo is focusing on innovation and market expansion, with plans for share buybacks and potential acquisitions to bolster its healthcare solutions.

Key Takeaways

• Masimo reported a 10.5% revenue growth in Q1, with consumables up 8% and capital sales up 32%.
• The company aims for long-term growth in the 7-10% range, with new AI-powered products and market expansion.
• A cyber security incident was swiftly managed, and full-year guidance remains intact.
• Sale of the consumer audio business, Sound United, will focus on core healthcare operations.
• Masimo is open to resolving ongoing litigation with Apple regarding patent issues.

Financial Results

• Q1 revenue grew by 10.5%, driven by an 8% increase in consumables and a 32% rise in capital sales.
• Full-year revenue growth is projected at 8-11%, adjusting to 7-10% for an extra week of revenue.
• The sale of Sound United is expected to generate $350 million, allowing focus on healthcare.
• Tariff impacts were mitigated by a 15% drop in China tariff rates, saving $23 million.

Operational Updates

• Masimo holds a 55% market share in pulse oximetry in the US and 50% globally.
• Adjacent markets like capnography and brain monitoring are growing in the high single digits.
• The company is recovering from a cyber security incident, with systems now fully operational.
• A next-generation AI-capable monitor is expected in the next 2-3 years.

Future Outlook

• Masimo plans to increase monitoring penetration on hospital floors from the current 20-30%.
• The company is exploring acquisitions in advanced monitoring and AI algorithm development.
• Double-digit CAGR is possible through product refresh cycles and broader market penetration.

Q&A Highlights

• Masimo is considering partnerships and settlements with Apple over ongoing patent litigation.
• Capital allocation will focus on share buybacks and strategic acquisitions.
• Further guidance on tariff mitigation will be provided in the next earnings release.

In conclusion, Masimo is poised for growth through strategic innovation and market expansion. For a deeper dive into the details, refer to the full transcript below.

Full transcript - Jefferies Global Healthcare Conference 2025:

Matt Taylor, US medical supplies and devices analyst: And welcome to this session. I’m Matt Taylor, the US medical supplies and devices analyst here with the team from Massimo in the chapel. We’re gonna have a half hour for q and a with Katie Seisman, the new CEO of Massimo, imo and Micah Young, the CFO and thanks also to Eli Cameraman, IR and Visdad for being here today. So we’ll have a moderated chat here. So we wanted to start with, you know, some high level questions.

I’m sure there’s some folks here that are new to the story. And maybe you could frame some of Masimo’s evolution because as I think about it over the long arc of the story, it’s really gone from being a parameters company to more of a solutions company, broadening the portfolio. And of course, there’s a lot of change last year. And we’d love to hear from you and from your perspectives as you stepped into the new role.

Katie Seisman, CEO, Masimo: Thanks, Matt. So, yeah, for kind of perspective, Massimo actually was founded like thirty five years ago and really was founded focused on pulse oximetry as the original parameter and then over the years kind of expanded into other categories. And originally started out competing just to become the market leader. And in the last five to seven years, we became the clear market leader in the pulse ox market, which grows in kind of the single digit category. And then over the last ten years, we’ve added additional parameters and going more to becoming a solutions company, not just pure monitoring.

So we acquired, capnography technology, brain monitoring technology, hemodynamics, and then automation, which is where you kind of do all the back end kind of connectivity into the electronic medical records and and provide kind of, you can have see, have screens that can monitor all patients from a separate room. And so that’s really the the portfolio itself. In the last several years, call it like three years ago, the company acquired Sound United, which was in the speaker business category, which was kind of hard to connect for investors. So then we actually, had a shareholder activist get involved and then Joe Kiani, the founder, actually left the company after thirty four years and then, they had the interim CEO and then I took over as CEO a little bit more than a hundred days ago. So that’s sort of the journey and evolution that we’ve been on.

The thing that’s fantastic about Massimo, if you look at that history, is just that the founder was a great innovator and focused on innovation for the last thirty five years and so the techno, the core technology and core operations at Massimo are just outstanding. The second point is that we’re the clear market leader in our space. So in pulse oximetry, we have 55 ish percent market share and that market grows kind of in the single digit area but it’s it’s got the potential to grow more over time. And, and then we have these adjacent markets and kind of moving more towards that solution cell. So, so I think it’s just been a great opportunity.

For me personally, I, spent north of twenty years Medtronic, where I worked, there, in many different roles, including leading a couple of the businesses, including the diabetes business over there. I also led the Edwards Critical Care business, which was acquired by Becton Dickinson, about six, about a year ago, and was in the kind of blood pressure monitoring space for about ten years. And so coming here to Massimo as someone who came from an adjacent space, really happy to be here. And I can tell you, when I started running the blood pressure business for Edwards, the critical care business, ten years ago, I went around and met with the top key opinion leaders and said, you know, what is great about, what should we be doing on our side? And they said, innovate like Massimo.

And so ten years later now for me coming into Massimo, asked the same question. And those same key opinion leaders said, get Massimo back to being innovation focused, right, on the health care space. And so I think for us, having kind of gone over to doing speakers for a few years, we just announced the sale of the speaker business and now we’re fully focused back on the health care, professional health care space and really staying focused inside the hospital. So, so it’s been great to be here and really excited about the future.

Matt Taylor, US medical supplies and devices analyst: Great. Great. So maybe I’ll double click on some of those markets that you touched on. I wanted to go into more of your positioning and the market dynamics within them. We can start with pulse oximetry since it’s still your biggest category.

And I think you mentioned a couple of things that I wanted to key off of. One is you see the potential for the market to maybe grow more. So maybe talk about how that could happen. And it’s been such a steady drumbeat of share gains for Masimo over time. Do you think that’s just going to continue?

Is it getting any tougher? Is the competition getting any tougher to take share from? Or should we just see that ball keep rolling?

Katie Seisman, CEO, Masimo: Yeah, so I think, you know, for our growth, we’ve actually, you see kind of low single digit growth in the market based on kind of the patient census, etcetera. We have successfully gained about one to two points of market share per year. And now we’re at 55 in The US and 50 globally. We see that there is an opportunity to continue to grow market share. And the reason is because we have some amazing artificial intelligence based algorithms that were developed for the consumer market, for like our watch technology and for other consumer applications.

And we’re gonna take those algorithms and put them onto the sensors, which will create more value for hospitals. One example is the ability to detect atrial fibrillation using just a pulse oximeter. So that can really help hospitals to detect patients that are in distress and take action very quickly. And so we think that will not only help us to continue to grow our market share, but also should create more value and help us to increase price. And so you’ll see that market growth kind of get a little bit higher.

Matt Taylor, US medical supplies and devices analyst: Gotcha. Gotcha. If we could just take your temperature on, I know you used to give some stats on the penetration on the general floor. Obviously, pulse ox has been used heavily in the NICU and, intensive settings for a long time and those are pretty penetrated. How are you seeing that continue to evolve throughout hospital?

We’ve seen some hospitals that are kind of monitoring every bed. I know that’s sort of the dream, in the future.

Katie Seisman, CEO, Masimo: Yeah, so I mean, my dream is that all patients, when you go into a hospital, you assume you’re safe and you would be 100% monitored. That’s the dream I think that we have at Massimo. I think we’ve historically disclosed that something like twenty to thirty percent of patients on the general floor, we believe, are monitored today. And we think it, and we see that accelerating and growing because hospitals and especially clinicians want patients to be monitored more. The trade off is always kind of the risk and the cost and the staffing.

Because if you have patients monitored, have to have nurses that are watching the monitoring, so that ends up increasing staffing. So we’re continuing to work on great wearable solutions, which makes that easier, which helps us to increase that penetration over time.

Matt Taylor, US medical supplies and devices analyst: Mhmm. Great. And maybe we could just touch again on your positioning in some of the other, sub markets that you’re in with rainbow and capnography, anesthesia, monitoring. It must be helpful to have such a big leading pulse ox franchise. Can you talk about how that plays through with pull through?

Those other businesses that are are newer?

Katie Seisman, CEO, Masimo: Yeah. So we, so if you look at capnography, brain monitoring, hemodynamics and automation, if you kind of add them all up, they’re somewhere between 1 and a half to $2,000,000,000 or 1 to 2,000,000,000 range. They’re growing in the high single digits if you kind of add them all. And then our market share in those segments is less than 10% in every single segment. So one of the things we talked about in the last quarter earnings is to say that we realigned our sales team so that we would have a dedicated specialty rep for one of those specialties in each region for our pulse ox mainline sales reps, so that we can actually see more pull through.

Because we ideally would have the same market share in those areas as we do in Pulse Ox, kind of pulling through our leadership. And so we see that increasing for us over time. We’ve already guided in the 10 to 20 growth rate for range for those adjacent markets and hopefully we can continue to see that accelerate.

Matt Taylor, US medical supplies and devices analyst: Got it. Maybe we could just touch on some of the recent trends. So you started off with a nice q one. There was some help from a capital kind of rebound that you’re seeing there. And I thought it might be important to cover that.

I know there was a little bit of confusion on that part. But maybe just talk about the market dynamics right now and any color you’d like to add about kind of what happened in Q1 and how that plays through the rest of the year.

Katie Seisman, CEO, Masimo: Yes. So I just joined on February 12, so Q1 was really attributed to Micah and the entire management team. But if you look at the history of Massimo, we’ve had consistent high growth over the last decade. And so we had just a great first quarter, but it that got a little bit confusing. And so I’ll turn it over to Mike to clarify some of that.

Micah Young, CFO, Masimo: Yeah. Number one, we had a really strong q one. Growth was, I think, 10 and a half percent in terms of overall growth revenue growth. If you look at how that broke down, we had solid growth in consumables. It grew 8% in the quarter.

Capital was about 32%, which was really if you break it down and look at the quarter of what’s underlying, we had we had, one thing I mentioned was we had a a tender contract. It was a renewal of a tender contract with a large o US government health system that this customer has been a customer for many years, probably close to a decade. And and it’s continued to grow. It’s expanding infrastructure within that within that country. And but tender businesses can be lumpy.

You you have to go get the contract. You start out with a kind of a commitment. You move that into a contract formalized, and then you and, of course, you wait for the PO. And sometimes, you’ll you’ll get different mixes of POs under that contract. But we have a the majority of that contract is consumables, and it’s our sensor business.

We also have a component of its capital. What we saw in q one was a full order of the capital, which is good because we’re placing the drivers out there that’ll consume the sensors and drive growth. But the consumable order was was not a full order. We we had a lighter order on consumables. Basically, what that is just purely timing.

We fully expect that to deliver over the next three quarters, so you’ll see higher consumables in q two, three, and ’4. And then we had strong capital in q one, but that’ll be lower in q two, three, and four for the rest of the year. So it’s more of a timing issue. We felt very good about the the underlying business, and and we still see kind of that normalized growth of for consumables up in that double digit zone. So strong start to the year and also a strong start to margin expansion and earnings growth for the first quarter as well.

Matt Taylor, US medical supplies and devices analyst: Got you. And maybe we could just double click on the market trends. You have ties obviously to utilization and you talk about the inpatient growth as a key assumption and then also to CapEx given sell your own, but also through the OEM. So just wondering if you could comment on how those things are trending so far this year and relative to your guidance and maybe just remind us what some of those assumptions were.

Micah Young, CFO, Masimo: Yes. So coming into the year, we laid out a guidance of kind of an eight to 11%. And, of course, as you know, we we do have one extra week of revenue that that occurs every four or five years based on our our financial calendar. But really kind of a seven to 10% if you kinda strip that out, which is right in line with our long range growth cadence. If you look at the year, we we plan for consumable growth to kind of be up around that double digit growth.

We assume that and, of course, we wrap some some range around that because, you know, assuming that census is somewhere between one to 3%. We’re seeing stable census growth right now, so that’s good for the first quarter and and kinda how how we’re seeing it trend out right now. In terms of capital, saw and I’m trying to normalize a little bit for that timing of that order, but we saw kind of high single digit capital growth, which is very strong compared we implied about 0% to 5% growth in capital for the year. So, so far, what we’re seeing is solid demand for capital. Driver shipments were 72,000.

We guided the year coming in as 240,000 to 260,000 drivers shipped this year, so it implies about 60,000 to 65,000 per quarter. So drivers are strong, capital revenue is strong and we’ll see how it plays out. I know there’s noise out there in the market around capital, but right now we’re seeing very good demand.

Katie Seisman, CEO, Masimo: And if you look at kind of during COVID, all the monitoring companies kind of saw the surge and then it kind of slowed down and then, you know, we are seeing that really stabilize now.

Matt Taylor, US medical supplies and devices analyst: At least last year you were breaking out this kind of true incremental concept of how much new business you’re booking and you can see the backlog growth has been really healthy. So maybe just talk about how that’s been going and how should investors look at those as leading indicators in terms of being able to predict your growth?

Micah Young, CFO, Masimo: Yeah. I mean, if you look at our capital, our contracting and that’s true incremental net revenue that we’re getting on these contracts. And these contracts are five to seven year contracts on average. And it just demonstrates the share gains that we’re seeing in the business and continue to to see over the last several years, it’s been very strong. So one way to look at that is, you know, those kinda you you take the the contract number, you divide that over, you know, call it five years, and and you can kinda see that incremental growth that that that that drives that high single digit, low double digit growth for us.

So that’s, you know, that’s one key and, you know, that’s one of the leading indicators we look at. You know, we do wanna get back to, and we’re working together, Katie and I, on trying to figure out what are the best ways to to really look at the the best key indicators for growth for the business and and what are the things that we wanna pay attention to and what we think investors should pay attention to. We do believe the install base is a good metric, but we think we need to really dissect that a little bit more and focus on, you know, how much of the installed base is truly within the hospital versus some of the, you know, call it ambulatory settings or or settings where it’s, you know, in ambulances where some of those drivers go into or or just some alternate care sites or physician offices where it’s a lower, you know, consumption rate on those sensors than it is in the four walls of the hospital. So there’s gonna be some things that we’re gonna look at in terms of some of the install base metrics and try to evaluate that and try to really get back to kind of some better metrics as we lay those out at Investor Day in December.

Matt Taylor, US medical supplies and devices analyst: Gotcha. Okay. And we touched on this before, Katie, you mentioned how kind of the other businesses you expect to grow faster with those markets growing faster and off of a smaller share base. I was wondering if you give any more granularity about rainbow versus capnography, hospital automation segment as you kind of break those out because I think in the last Analyst Day you talked about kind of double digit for Rainbow even higher for those other segments and very high for automation. So I was wondering if you could give us an update on how those are going and your outlook for them.

Katie Seisman, CEO, Masimo: Yeah, I mean, can just mention, so rainbow is, is a hemoglobin reading essentially and, it’s been largely adopted primarily outside The United States where they will kind of put on protocol like all patients in our system should be monitored with rainbow sensor. As we look at it in The US, it’s a little bit more of a clinical sale, hospital by hospital, and they will allocate a certain percentage of their hospital that would actually adopt the continuous hemoglobin technology. And so as we look at it, I think we continue to see success on the growth of rainbow, especially outside The United States. And then in The US, we think that it’s gonna drive it will be adopted more when it’s it’s combined with our hemodynamic business. And so with hemodynamics, have basically cardiac output or what the heart is putting out in terms of oxygenated blood, and then the ability to read how much hemoglobin and then how much of the oxygenated blood is actually being delivered all the way through the body.

So it’s kind of the, you know, output input or output and delivery. So that’s going be a combined parameter of something called d o two or delivered oxygen. And that’s going to come out with our next gen monitors in the next two years. And so right now we’re in the pilot phase. We have some accounts that are already testing it that really like it, but we see the adoption kind of accelerating once it’s fully on a next gen hemodynamic platform.

Matt Taylor, US medical supplies and devices analyst: Great. Let me go back to you mentioned before selling consumer was kind of a big step forward. And just wanted you to talk a little bit more about what you’re gonna do with the proceeds.

Katie Seisman, CEO, Masimo: Yeah. You wanna take that?

Micah Young, CFO, Masimo: Yeah. So we’ve as you know, we’ve done a lot of work to clean up the balance sheet this past year. And and one of those things is is separation of the consumer business. We’re hoping to close that by the end of the year. We’ve got about $350,000,000 of value for that business.

The proceeds we plan to, know, based on where we’re at current levels and we, you know, we believe it’s going to be more accretive for us to buy back shares at the moment. So we’re leaning more into share buybacks. If you think about capital deployment going forward, there may be some blend of share buyback and debt pay down, but we we plan to get back to looking at across our platforms that are inside the four walls of the hospital and looking where we can augment those technologies. So if it’s in areas of advanced monitoring, whether it’s you know, advanced algorithms where we can, you know, leverage the data that we have, but also bring in some some unique technologies there. Wearable form factors is another thing we’d look at as well.

So we do wanna get back into, kind of augmenting our growth rate. We’ve got a strong organic growth rate of 7% to 10% in our long range plan, but we plan to do more tuck in type deals as well. So going forward.

Katie Seisman, CEO, Masimo: Yeah. And the only only other comment I would make about the sale of Sound United is that we ran a really rigorous process. So it wasn’t like, you know, just we really had a lot of discipline. And then we were really happy with with Harman because we think it’s gonna be a great place for our employees to

Matt Taylor, US medical supplies and devices analyst: go. Great. I do wanted to touch that you had a cyber security kind of incident recently with your website. I know you put out an eight ks that basically said no impact for the year. Is there any short term impacts or callouts that we might see in in q two?

And could you just sort of wrap that up in

Micah Young, CFO, Masimo: a bow and tell us how you’re able to resolve it? Yes. So, yeah, that occurred right right before our last earnings call. If you recall that we were on the we mentioned that that was we just had a breach. We, you know, it was at the moment, we were kind of, it’s like, you know, flying a plane without the instruments working and and, you know, not knowing, you know, what orders are coming in and And we had production and shipping that were below optimal levels.

We were still able to continue producing high volume stuff and high volume products, as well as we also had luckily build inventories up over the course of the past year for some of our high running parts. So that helped us to navigate as well. But as of, I think, the eight ks was last week, we’ve got everything back up fully operational. We’re now, you know, kind of working overtime and trying to get through the recovery plan, but we’ve we’ve had very good plans to that we work through. We had initiated protocols immediately when that happened to get everything back up, and now we’ve got, you know, plans to recover.

And the great news is that we didn’t we don’t believe it’s there’s any demand issue. We believe that all the orders are there. And we’ve got visibility into them, and now we’re we’re, you know, pacing as fast as possible to recover. And that’s why we reiterated the full year guidance, and we feel much better than we did several weeks ago. Gotcha.

Katie Seisman, CEO, Masimo: Yeah. And I I would just say, as a new CEO on my first hundred days, it was really great to have a cyber incident to work with. But it was a great way to learn about the company and just attribute to our entire organization on how quickly we got back up and running. I mean, Massimo is just a great company and responded really, really quickly and well. And it also, I think, we bring our systems back up or have brought them back up, we’re bringing them up reinforced for cyber going forward.

Matt Taylor, US medical supplies and devices analyst: Gotcha. Well, sounds like you’re gonna get a lot of that back through the year. Could there be any q two impact? Do you wanna comment on that at all?

Micah Young, CFO, Masimo: Well, good thing is it’s early. So it was early. It happened early in the quarter and we’re back up to optimal and we’ve got a path. There be road bumps? We don’t know, but we feel like we got a good path.

Okay.

Matt Taylor, US medical supplies and devices analyst: Speaking of road bumps, you had some tariffs. So I wanted to talk about that. The 35,000,040 to 50¢ impact, but with the escalation, it seems like you could get some of that back. I mean, maybe we’re re escalating. I don’t know what happened today.

But could you just talk about the state of the state with tariffs? What you think is in numbers? And if we get a reasonable de escalation scenario, sort of how much you could get back?

Micah Young, CFO, Masimo: Yeah. So on the last earnings call, we wanted to lay out the framework, the math, right, on kind of what what manufacturing locations we’re in in terms of where, you know, we manufacture in Mexico, Malaysia. We do have raw materials sourced out of China. And we kind of broke down, you know, what percentage of our cost of goods is in each of those locations and and the tariff rates, basically a range because it’s been all it’s been pretty fluid environment as everyone would attest. So so we kinda laid out the the worst case.

And that gave everyone the math to you know, China came down in terms of post earnings call and dropped the tariff rate by 115%. And as you know, China is about our raw material production there is about 20,000,000 a year when you do the math on it. So 115% on that, it dropped it 23,000,000 for us. So and then, of course, we’re working, you know, very rapidly through mitigation plans. We’ve got a very good plan of attack here to to reduce tariff exposure on the cost side.

A couple of those things are, you know, we still have exposure in Mexico with our instruments because we’ve qualified everything else under USMCA, and we’re we’re evaluating instruments now and going through that process to see if there’s any qualification opportunity there. We also are continuing to look at Malaysia. We we wanna continue to benefit from the the cost efficiency and operational efficiencies that we get in Malaysia. So we don’t wanna just, you know, move back and and respond. We wanna try to do the our best to reduce the exposure there and still benefit from the from being in Malaysia.

So so that’s something where we’re looking at, you know, how do we qualify for US based content in those sensors, and those are some of the things we’re evaluating right now. We’re also looking at potential for vertical integration of some of our manufacturing in the in The US. We do manufacture our semiconductors in New Hampshire. So there could be some vertical integration there that could help us to qualify more of our the cost of our sensors as made in America. And then the last piece is is really looking at the cables.

We we source our patient cables out of China. A lot of it’s because it requires copper material. So you have to get copper mining to procure the raw material. Plus, you have to get a vendor that knows the process. And it is a much more complex process.

That’s probably the longer. You know, that could take, you know, probably eighteen to twenty four months to get that move, but that’s something else we we have in process and we’re trying to execute on as well.

Katie Seisman, CEO, Masimo: And so we plan at kind of the next earnings release next quarter to really reveal kind of what we see as mitigation and have much clearer guidance on our plans. Mhmm. And so we kind of want everything in the world to settle down and we think by then it should be a little bit more settled on. Is there a tariff where etcetera?

Matt Taylor, US medical supplies and devices analyst: Yeah. Yeah. Yeah. Okay. And I think at another conference recently you said that if you got the tariff headwinds, if you get them back, you’d flow them through to earnings.

Is that the right way to

Micah Young, CFO, Masimo: Absolutely.

Matt Taylor, US medical supplies and devices analyst: Great. So about five minutes left. I wanted to maybe touch on a few other topics. We can start with talking a little bit more about the pipeline. I know you had referenced earlier some of the new parameters that are being trialed.

I guess the way I would frame the question is we know your guidance kind of now and longer term is seven to 10 kind of high single digits. What would you point to in the pipeline or conditions in the market that could push you into the double digits? What sort of could go right to be able to make you CAGR at 10 or 11 consistently?

Katie Seisman, CEO, Masimo: Yeah. So, one is that we have a significant installed base. And if you look at our root monitor, we have over a hundred thousand monitors out in the field, and that product family is over ten years old. So we plan to come out in the next two to three years with a next gen monitor that would be enabled with artificial intelligence technology on it. And so we think that we’ll be able to sell into our own installed base and kind of drive a product refresh cycle.

And that could really raise our revenue growth rates because that’s something that we are not doing today, right? So that’d be kind of incremental. And then the second thing is just that continued penetration into the hospital floors. If we could just get the law passed that all patients should be monitored all the time, we believe we have the best wearable technologies that would actually be able to meet that need. And so as we see regulations changing towards that, then we think we would be able to win in that space.

So those would be two kind of big growth drivers that we see going forward.

Matt Taylor, US medical supplies and devices analyst: And I did want to ask about Apple too. I’d be remiss if we didn’t

Katie Seisman, CEO, Masimo: Yeah.

Matt Taylor, US medical supplies and devices analyst: Cover that. You know, I guess I’m curious with the bench trial in California, how come we haven’t heard about that? Yeah. I guess I thought we might have heard by now.

Micah Young, CFO, Masimo: We thought the same thing. So I think with where that stands, that was tried late last year. We would have expected it by now, but we’re still still waiting judge’s decision on that. If you look at, we’ve got different areas of that litigation. One was, of course, the the permanent injunction we have against Apple on the on the watch with pulse oximetry.

That was after the ITC case that was held. Of course, trade secret was next. That was late last year. And then now the two big cases for us are the patent infringement cases that are that are coming up. One’s scheduled.

One’s in November year. That’s a California case. And then Delaware’s to be scheduled. So that’s us asserting claims against Apple for patent infringement on certain elements of of our device or our of our technology. So so those that’s gonna be where we’ll learn a lot more about this, and and I think we’ll, you know, see where things progress as we get closer to that.

And hopefully, the meantime, hear back on the trade secret case.

Matt Taylor, US medical supplies and devices analyst: So that could the trade secrets could sort of be anytime or just Should be anytime. Checking the mailbox every

Micah Young, CFO, Masimo: day? Yeah.

Matt Taylor, US medical supplies and devices analyst: Mhmm. Checking. Got it. Now as you get more leverage, let’s say you win that, just as a hypothetical, could you talk about what the different scenarios could be as far as how you might prosecute that against Apple? Could you work with them?

Would you be willing to do a partnership?

Micah Young, CFO, Masimo: I think we’re willing to do all the above. I mean, if it’s a partnership, if it’s settlement, I think we’re we’re open to listening to that. And and, yeah, I think we are we’re we’re evaluating this more it’s all business. It’s all it’s more of a through a financial lens. Right?

So, you know, we do have a lot of sunk cost in the past from that litigation and but, you we want to protect the IP and IP is important to us. Mean that’s we’re always going to defend the IP.

Matt Taylor, US medical supplies and devices analyst: Just have a couple of minutes. It sounds like you’re being a little bit more front footed now with the capital allocation. I mean, there’s a lot of stuff behind you splitting off sound. I’m sure helps with the focus on that. Maybe help us understand when we think about tuck in technology deals, should we mostly be thinking about adding more parameters to this ecosystem or what are the other kind of things conceptually that you’d be interested in in adding?

Micah Young, CFO, Masimo: Yeah. It’s a combination. Yeah. It means, you

Katie Seisman, CEO, Masimo: know, the finding the best wearable solution, there’s a lot of startups going So kind of watching that space and trying to, you know, find the best technology. There’s additional parameters, so not just maybe like non invasive blood pressure, like other categories you could go after. And then finally, artificial intelligence. So if there’s AI algorithms that a startup might have that we might be able to jump into, that would kind of get us some of the data.

But we have a ton of data at Massimo, so I think it’s a matter of us developing and then partnering to get the best algorithms out there.

Matt Taylor, US medical supplies and devices analyst: Excellent. I think that’s actually a good place to wrap up. So thanks

Katie Seisman, CEO, Masimo: for Yes, I’m joking here. But I just wanna say one last thing about Massimo is one of the things you see on the the, you know, transition and change is that a lot of our leaders are still here. Our turnover has not been high and that, you know, the whole team is just super excited about the future, including me. Absolutely.

Micah Young, CFO, Masimo: Thank you, Matt. Thanks, everybody.

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