Masimo reports preliminary Q2 revenue $453M-$457M, consensus $553.23M

Masimo expects its consolidated revenue for the second quarter 2023 to range from $453 million to $457 million, with healthcare revenue expected to range from $280 million to $282 million and non-healthcare revenue expected to range from $173 million to $175 million. Though the healthcare business made significant market share gains through new contracting in the second quarter, healthcare revenue for the second quarter 2023 was lower than expected due to multiple factors, including: Large orders that were anticipated for the second quarter were delayed to the second half of the year; Single-patient use sensor sales were down due to: Lower than expected U.S. hospital inpatient census, which drives usage of single-patient use sensors; and Elevated sensor inventory levels at some customers due to discounting in prior quarters, which was discontinued during the second quarter, and the abnormally early end of the flu season, which faded quickly in the first quarter this year; Conversions of new customers who have contracted to switch to Masimo were less than expected due to labor shortages in hospitals, and our OEM partners not being able to provide the patient monitoring equipment needed to complete the installations in a timely manner; Continued increased hospital labor costs have strained hospital budgets, lowering demand for capital equipment in the second quarter. Non-healthcare revenue for the second quarter 2023 fell below expectations as the decline in demand previously seen in lower-end consumer audio categories extended into the premium and luxury audio categories and across more geographies.