Corporate & Investor Presentation
Reconciliation of non-GAAP financial measures
The measures "non-GAAP gross profit" and "non-GAAP gross margin" excludes amortization expense from acquired
intangibles related to cost of sales and are reconciled below:
(Unaudited; $ in thousands, except for per share amounts)
0000
Three Months Ended
Nine Months Ended
March 31,
2021
March 31,
2020
March 31,
2021
March 31,
2020
Revenue
$
768,767
$
769,455
$ 2,320,722
Add back: Deferred revenue fair value adjustment (A)
$ 2,186,669
2,102
Non-GAAP Revenue
$
768,767
$
769,455
$ 2,320,722
$ 2,188,771
GAAP Cost of sales
$
321,509
$
Less: Amortization of acquired intangibles (A)
(10,924)
319,793
(12,136)
Less: Restructuring - cost of sales (A)
Non-GAAP cost of sales
GAAP gross profit
$
310,585
$
307,657
$
$ 972,319
(34,066)
(5,232)
933,021
$ 918,256
(37,623)
$
880,633
$
447,258
$
GAAP gross margin
58.2 %
449,662
58.4 %
Non-GAAP gross profit
Non-GAAP gross margin
SA
$
458,182
59.6 %
$
461,798
60.0 %
$ 1,348,403 $ 1,268,413
58.1 %
58.0 %
$ 1,387,701 $ 1,308,138
59.8 %
59.8 %
(A) ResMed adjusts for the impact of the amortization of acquired intangibles, reserve for disputed tax positions, restructuring expenses, deferred revenue fair value adjustment, litigation settlement expenses, the (gain) loss on equity investments and the
fair value impairment of investment from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance.
ResMed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. ResMed uses non-GAAP information internally in planning, forecasting,
and evaluating the results of operations in the current period and in comparing it to past periods. ResMed believes this information provides investors better insight when evaluating ResMed's performance from core operations and provides consistent
financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because
they do not include all the expenses that must be included under GAAP.
36 2021 ResMed | Corporate & Investor Presentation - updated 29APR21
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