Q2 2023 Earnings 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
December 31, December 31,
2022
2021
Six Months Ended
December 31, December 31,
2022
2021
Revenue
$ 1,033,744 $
894,874
$ 1,984,038 $ 1,798,890
GAAP cost of sales
$
454,029 $
Less: Amortization of acquired intangibles (A)
Non-GAAP cost of sales
(7,305)
$
446,724
$
390,556 $ 863,514 $ 788,282
(11,231)
(13,680)
(22,289)
379,325 $ 849,834 $ 765,993
GAAP gross profit
$
579,715 $
504,318
GAAP gross margin
Non-GAAP gross profit
56.1 %
56.4 %
$ 1,120,524
56.5 %
$ 1,010,608
56.2 %
$
Non-GAAP gross margin
587,020 $
56.8 %
515,549
57.6 %
$ 1,134,204
57.2 %
$ 1,032,897
57.4 %
Note regarding non-GAAP reconciliations
(A) ResMed adjusts for the impact of the amortization of acquired intangibles, acquisition-related expenses, and the reserve for disputed tax positions 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.
152023 ResMed | Q2 2023 Earnings Presentation - Jan. 26, 2023
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