Good afternoon, ladies and gentlemen, and welcome to Masimo's third quarter 2022 earnings conference call. The company's press release is available at www.masimo.com. At this time, all lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. Now I am pleased to introduce Eli Kammerman, Masimo's Vice President of Business Development and Investor Relations. Thank you, and hello, everyone. Joining me today are Chairman and CEO, Joe Kiani, and Executive Vice President and Chief Financial Officer, Micah Young. This call will contain forward-looking statements which reflect management's current judgment, including certain of our expectations regarding fiscal year 2022 financial performance. However, they are subject to risks and uncertainties that could cause actual results to differ materially. Risk factors that could cause our actual results to differ materially from our projections and forecasts are discussed in detail in our periodic filings with the SEC. You will find these in the investor relations section of our website. Also, this call will include a discussion of certain financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We generally refer to these as non-GAAP financial measures. In addition to GAAP results, these non-GAAP financial measures are intended to provide additional information to enable investors to assess the company's operating results in the same way management assesses such results. Management uses non-GAAP measures to budget, evaluate, and measure the company's performance and sees these results as an indicator of the company's ongoing business performance. The company believes that these non-GAAP financial measures increase transparency and better reflect the underlying financial performance of the business. Reconciliation of these measures to the most directly comparable GAAP financial measures are included within the earnings release and supplementary financial information on our website. Investors should consider all of our statements today, together with our reports filed with the SEC, including our most recent Form 10-K and 10-Q, in order to make informed investment decisions. In addition to the earnings release issued today, we have posted a quarterly earnings presentation within the investor relations section of our website to supplement the content we will be covering this afternoon. I'll now pass the call to Joe Kiani. Thank you, Eli. Thank you very much. Good afternoon, and thank you for joining us for Masimo's third quarter 2022 earnings call. I'm happy to report that we achieved results above expectations for the quarter. Our pro forma consolidated revenues increased 8% versus last year on a constant currency basis, with 10% growth from our healthcare segment and 5% growth from our consumer segment. These figures reflect above-market growth for both business segments. Our healthcare business has been seeing solid growth as we are realizing a steady stream of new customer wins globally, and we are on track to see our installed base grow by 7% this year. In our consumer business, sales growth exceeded expectations as demand for premium audio products was strong. Bowers & Wilkins and Marantz are holding up well in the face of a challenging economic environment due to their reputation for exceptional quality and design. Our consumer and healthcare teams are working independently and collaboratively on multiple projects to create exciting new consumer products and professional healthcare products, as well as innovative consumer health products. These products will incorporate technology and design from both teams that will be highly differentiated in their target markets, and we expect they will be well-received. Now I'll ask Micah to review our third quarter results in more detail and provide you with an update on our 2022 financial guidance. Thank you, Joe, and good afternoon, everyone. Before I get started, I'd like to direct you to our earnings presentation on the Masimo website, which covers much of the detail that we'll be discussing today. The financial measures I will be covering will be primarily on a non-GAAP basis unless noted otherwise. Further, I will also be referencing pro forma financial measures, which include historical results for Sound United prior to the acquisition date of April 11th, 2022. In our presentation today, we will once again be referring to this business as our non-healthcare segment. We delivered strong results in the third quarter with revenues, operating margins, and earnings per share exceeding the high end of our guidance range. Our consolidated revenue was $549 million, representing 3% reported growth and 8% constant currency growth on a pro forma basis. During the quarter, the third quarter, our global sales and operations teams did an incredible job of navigating through a challenging macroeconomic environment, ongoing supply chain challenges, hospital staffing shortages, and slowing hospital admissions. For our healthcare segment, third quarter revenues were $327 million, representing 6% reported growth and 10% constant currency growth. Our driver shipments for the third quarter reached over 76,000, solidly on track for us to realize over 300,000 driver shipments this year. At the end of the third quarter, we estimate that our installed base has grown by 7% over our installed base at the end of the third quarter of 2021. For our consumer non-healthcare segment, third quarter revenues were $222 million, decreasing 2% on a pro forma reported basis, but increasing 5% on a pro forma constant currency basis. As I mentioned on our last earnings call, this business faced its toughest year-over-year comparison due to an exceptionally strong third quarter of 2021, which was above trend line due to the fulfillment of backordered products. Despite the difficult year-over-year comparison, this business delivered solid growth due to strong performance by our premium Bowers & Wilkins and Marantz brands. Moving down the P&L. For the third quarter of 2022, we reported consolidated non-GAAP gross margin of 52.6%. Our margins were adversely affected by the impact of segment mix, foreign currency headwinds, and persistent supply chain inefficiencies as I described last quarter. For our healthcare business, third quarter non-GAAP gross margin decreased 190 basis points to 64.6% compared to 66.5% in the prior year period. The year-over-year decline was expected and resulted from the factors just mentioned. For our consumer non-healthcare segment, third quarter non-GAAP gross margin was 35%, which represents a modest sequential improvement. For our consolidated business, our non-GAAP operating profit increased 15% to $81 million and represented 14.8% of total revenue. Our non-GAAP earnings per share increased to $1 per diluted share. Now I'd like to provide you with an update on our 2022 consolidated financial guidance. For the fourth quarter of 2022, we are projecting a consolidated revenue range of $581 million-$611 million. On a pro forma basis, our guidance incorporates $45 million of year-over-year currency headwinds, implying a constant currency growth range of 6%-11%. If foreign currency rates hold at current levels, we are estimating approximately $70 million of additional currency headwinds in 2023. These negative currency effects will flow through our income statement to negatively affect our margins and operating income. For our healthcare segment, we are projecting fourth quarter revenues of $337 million-$352 million. Our guidance incorporates $14 million of year-over-year currency headwinds, implying a constant currency growth range of 7%-11%. We are also projecting shipments of at least 75,000 technology boards and instruments for the fourth quarter. For our non-healthcare segment, we are projecting fourth quarter revenues of $245 million-$260 million. On a pro forma basis, our guidance incorporates $32 million of year-over-year currency headwinds, implying a constant currency growth range of 5%-10%. For our consolidated business, we are projecting non-GAAP gross margin of 51%, which assumes healthcare gross margins of 63% and consumer non-healthcare gross margins of 34%-35%. We continue to experience persistent pressures related to supply chain challenges, which in turn create operational inefficiencies throughout our procurement, manufacturing, and fulfillment processes. In addition, our gross margins are also being negatively impacted by worsening currency headwinds. If foreign exchange rates hold at current levels, we believe that our depressed gross margins of 51% in the fourth quarter will continue into next year with modest improvements in the second half of 2023. On a consolidated basis, we are projecting non-GAAP operating profit ranging from $91 million-$100 million, and earnings per share ranging from $1.11-$1.22 for the fourth quarter. Now turning to the full year guidance. For the full year, we are now projecting a consolidated revenue range of $2 billion-$2.03 billion. On a pro forma basis, our guidance implies consolidated revenues of $2.258 billion-$2.288 billion, representing 5%-7% reported growth and 10%-11% constant currency growth. For our healthcare segment, we are projecting revenues of $1.325 billion-$1.34 billion, which now incorporates $35 million of year-over-year currency headwinds. Compared to our prior guidance, this represents an additional $5 million increase in currency headwinds. This update reflects 10%-11% constant currency growth over the prior year, which is in line with our prior guidance range. Today, we are continuing to see lower than expected hospital census levels, particularly in community hospitals. Our guidance contemplates a normal seasonal increase in patient admissions, noting that the flu season this year is already running well above prior year levels, and hospitals had surgery postponements in the third quarter that could be rescheduled into the fourth quarter. However, due to the challenging healthcare environment with softer hospital census levels and ongoing supply chain challenges, we are not raising our guidance range. Despite these challenges, we are continuing to build a strong foundation for future growth with a large and growing installed base combined with new customer wins. I'm excited to report that for the first nine months of the year, we had record new contracting levels from hospitals converting to Masimo. For our non-healthcare segment, we are projecting reported revenues of $675 million-$690 million from April 11th, 2022 through fiscal year end. Compared to our prior guidance range, this represents an increase of $5 million at the midpoint of the range. While this business achieved better than expected results in the third quarter by navigating a difficult supply chain environment, we are being prudent in our fourth quarter outlook due to ongoing component shortages and a challenging economic conditions. On a pro forma basis for the full year, our guidance implies consumer non-healthcare revenues of $933 million-$948 million for fiscal year 2022. Representing 3%-4% reported growth and 10%-12% constant currency growth. For our consolidated business, we are projecting non-GAAP gross margin of 55%, which assumes healthcare gross margins of 65% and consumer non-healthcare gross margins of 35%. We're also projecting consolidated non-GAAP operating profit ranging from $349 million-$357 million. Compared to prior guidance, this represents a decrease of $2 million at the midpoint of the range due to additional currency headwinds. This update reflects consolidated non-GAAP operating margins ranging from 17.4%-17.6% for our consolidated business. Moving further down the P&L, consistent with our prior non-GAAP financial guidance, we are projecting non-operating expense of $23 million, a tax rate of 25.7% and weighted average shares outstanding of 55.3 million. Based on these assumptions, we are projecting a non-GAAP EPS range of $4.38-$4.49. Compared to prior guidance, this represents a decrease of $0.02 at the midpoint of the range due to additional currency headwinds. Based on our year-to-date results, we are on pace to deliver a strong performance for 2022. On a pro forma basis, our consolidated revenue guidance implies 10%-11% constant currency growth, with both segments projecting to have double-digit growth for the full year. For additional details on our 2022 financial guidance, please refer to today's earnings presentation within the investor relations of our website at masimo.com. With that, I'll turn the call back to Joe. Thank you, Micah. Thanks very much. As you just heard, our third quarter results illustrate the durable strength of both business segments. In the third quarter, our consumer business once again had strong quarterly performance with multiple new product launches. Bowers & Wilkins launched the 700 Signature Series 3 speakers and expanded its headphone line with two award-winning products, the PX7 S2 and the PX8 over-ear headphones. Denon unveiled a new line of 8K receivers, and Marantz introduced their new CINEMA Series with award-winning performance and design. In our healthcare business, I'm happy to report that we recently secured important new customers, including Denver Health and Nationwide Children's, one of the top 10 children's hospital in the U.S. This has been the strongest nine months we have ever had in attaining new customers. A milestone for us in the third quarter was the launch of our W1 watch in August. The W1 has unparalleled accuracy for a wrist-worn wearable and is the only watch available that provides continuous clinical-grade monitoring of critical vital signs such as oxygen saturation, pulse rate, and respiration rate. We also launched novel measurement hydration index under limited market release at the time of the launch of W1. Hydration index, or Hi, as we like to call it, should be very useful for athletes and exercise enthusiasts who need to calibrate their fluid intake for achieving peak performance, as well as for patients whose fluid levels need to be properly titrated and are not ventilated, where PVi has helped with hydration titration for 15 years. Also, we see even greater potential for W1 to be adopted by large hospital systems as a tool to effectively manage patients with chronic disease such as CHF and COPD. There are multiple pilot programs underway with the W1 to assess such potential, both in the U.S. and in the Middle East. We're looking forward to finishing the year with another quarter of solid performance, which will set the stage for next year. 2023 will be an important year for our consumer healthcare business and the year we expect our recently acquired consumer business to help us with our hospital-to-home strategy. We look forward to seeing you at our Investor Day on December 13th to give you a glimpse of what's ahead. We hope you'll be able to join us. With that, we'll open the call to questions. Operator? Thank you. If you would like to ask a question, simply press the star key followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one once again. We will pause for just a moment to compile the Q&A roster. We will take our first question from Matt Taylor with Jefferies. Your line is open.nic Hi. Thank you for taking the question. Can you hear me okay? Yes. Thank you, Matt. Hi, Matt. Great. Hey, Joe. Hey, Micah. So I wanted to ask you just given the continued good performance of the sound portfolio, could you talk about whether you think you can still grow that high single digits into to next year in a recession? Do you have any visibility into that? Maybe just talk about any updated thoughts on the outlook for that. Sure. While we intend to continue growing it in high single digits, given the economic, at least inflation, if not recession, and all that stuff that has come forward, it's hard at this point to give you assurances that we will. What we've noticed is Bowers & Wilkins, Marantz, and even Denon, they seem to be products that are purchased by people who are not as impacted as maybe most people are with the economic downturn. So, you know, as we've talked, they're probably as iconic brands and as solid as you can get in any consumer industry. We're hoping, but I can't tell you for sure. Yeah, Matt, just to add to that too, you know, at our December 13th Investor Day, we're working through building the plans for next year, hopefully be able to give you an update on kind of our outlook as we go into next year. We just don't want to get ahead of ourselves at this point until we work through those plans. To Joe's point, we're seeing good durability with the more premium brands. You know, we've talked about this before, but there has been softness in some of the more mass consumer products like sound bars and those types of products. You know, over the past couple quarters, even while we've seen that, we've seen good strength in those premium brands that have driven solid growth and performance. We'll provide you more of an update and hopefully you'll be able to join us here next month. Great. Thanks. I wanted to ask one on the healthcare side. I was hoping, you know, you gave some anecdotes on the call about the momentum and some new customers. I think a lot of people like to hear about some of the subsegments. I didn't know if you could provide any color on things like Hospital Automation or some of the higher value parameters to help us understand how momentum in those different areas has been. Sure. As you know, we've had a few incredible years on top of very solid years before that in terms of our driver shipments and new customer coming to Masimo. I'm just really happy to see this incredible momentum that I think was caused by people understanding how important it is to have measurements that are accurate and reliable during COVID, and how we came through with innovation at the beginning of COVID that saved many hospitals from turning away patients or putting their clinicians in danger. As for your second part of your question about some of the new technologies, Hospital Automation has been growing exceptionally well. Rainbow has been growing exceptionally well. Our capnography business, our SedLine, those three have all been growing +20%. We're really expecting after 15 years of showing people the value of rainbow, that 2023 and beyond will be kind of the 5, 10 years for rainbow to take off and the others to follow it. Yeah, we're excited about the future, and as long as hospitals continue growing and thriving and getting back their patients, we should do really well. Great. Thanks, Joe. Thanks for the color. Thank you. We will take our next question from Jason Wittes with Loop Capital. Your line is open. Hi. Thanks for taking the questions. Just first off, in terms of your ability to raise prices, in the face of inflation for healthcare and for Sound United, have you begun to implement that? Do you have any indication of how well it's sticking? We have. As you know, in the last couple of years, we've resisted raising prices because we weren't sure if the inflation was gonna be permanent. Given that it looks like at least certain parts of inflation are permanent, such as labor rates, we have begun raising our prices, and maybe Micah can give you more color if it's appropriate. Yeah, absolutely. I think, Jason, you know, if you look at the consumer audio side of the business, you know, we've also been navigating through a lot of these inflationary challenges by raising prices on that end as well. You know, if we start to see some of the headwinds ease up, that we should see some nice improvement moving forward. But we're trying to be thoughtful and prudent about how we reflect that in our guidance at this point. Okay. That's very helpful. If I could ask, I don't know if you have any commentary about the recent announcement on Medtronic and on their overlapping business spinning out. Has that had any impact on the marketplace at this point, or is it just too early to see anything? Well, I think the announcement came kind of towards the end of this month, October, excuse me. We're already seeing customers take notice of that. Look, nobody spins off a winning team. You know, people are finally seeing what we've been seeing for a while. Okay. Maybe just one final, and I'll jump back in queue. I personally have some questions about there was a Philips settlement. Can you give us indication in terms of when that expires and what kind of impact that might have, when it does expire, if any? Well, as far as Philips settlement, I think we entered into an 8- or 10-year agreement. I think we got 2 or 3 more years left on that agreement. you know, we expect we will enter into a new agreement, but 'cause I think both companies are benefiting from this relationship, and so are our mutual customers. Oh, great. I'll jump back in queue. We will take our next question from Jason Bednar with Piper Sandler. Your line is open. Hey, good afternoon, guys. Thanks for taking our questions. I wanted to start off here with the fourth quarter guide. Yeah, I'll tell you, it looks maybe a little lighter than the street at the top and bottom lines. Maybe unpack a few things here for us. I mean, the revenue delta, maybe it's timing related to Sound, you know, just wondering if that's how you're thinking about it as well, or if there's something you're contemplating with respect to some of the consumer challenges, spending challenges that are out there given the macro environment. Can you discuss what's pressuring EPS here more in the fourth quarter? I mean, Micah, it sounds like inflationary pressures- Yeah. Are pushing costs higher. That's probably extending into the first half of 2023. Can you talk, is there any early investment spend that you're making ahead of the consumer launches that you're planning for next year? That's, there's a lot of points to that question, but let me just try to take it one step at a time. If you look at the fourth quarter, we had a strong result with our consumer audio business in Q3. We are basically only raising the midpoint of the range by $5 million. The reason for that is we're also just being thoughtful, and it's more around supply chain challenges. They did a great job of navigating Q3, but that continues to be something that's been persistent as far as making sure we've got product availability. We're just trying to navigate through that. We still, if you look at Q4 for both businesses, the fourth quarter implies very strong growth. At the midpoint of the range, our healthcare business, we're implying 9% growth on a constant currency basis. In our non-healthcare, we're about 7%-7.5% growth. We're still, you know, contemplating good growth in the fourth quarter. We're just being, you know, cautious about some of those challenges we're facing on the supply chain side and procurement. As far as the earnings, it's definitely continuing to be negatively impacted by currency. Currency in the fourth quarter, we believe that the headwind has gotten worse by about 60 basis points from our implied prior guidance. We also think, you know, as that drops down through the income statement, we got about 6% of this incremental headwind on our EPS due to currency, is what we're estimating. That's really putting some pressure on the margins as well as our EPS. Underlying growth, and you can see it in the business, operationally, we're performing very well, and we've got very strong guidance implied for Q4. In terms of the investments we're making, we've already incorporated those investments in earlier this year, as we are starting to work through collaboration among our teams to co-develop products and start working on co-commercialization work. That's already been in the guidance. What I will though, you mentioned the gross margins, that's really what's putting a lot of the pressure in Q4 because we've got significant headwinds there due to FX and supply chain. I think the FX headwinds are roughly about 120 basis points from when you look at it year-over-year. That's putting pressure as well as the supply chain challenges. What I mentioned in my prepared remarks is we believe that we're nearing the bottom there with 51% margins, and we are hopeful that even though those will continue in the first half of next year, we'll start to turn the corner and improve in the back half of 2023. Okay. All right. Yeah, thanks for all that. I know there are a lot of questions in there. Maybe just a few, like, I'll call it a couple follow-ups here on building off some of that commentary there, Micah. You know, I know you mentioned things in the prepared remarks around hospital census, hospital staffing issues, maybe weighing a bit on the outlook, but the outlook's still pretty good in spite of those elements. And then the supply chain challenges on the consumer side. I guess, you know, for each of those, are you able to quantify what the overhang is from those elements? Said another way, like how good might the guide be if not for these issues that are holding back, or you know, again, acting as overhangs on the business right now? Thank you. Yeah, Jason, I don't want to get into quantifying those numbers for you. You know, we feel good about the guidance for Q4 in terms of, you know, we're guiding to very strong growth in both businesses. Okay. Maybe I'll sneak one other one in then. Is there, I guess, anything contemplated in the guide, or can you talk about what you're seeing with respect to hospital CapEx budget? I mean, the broad numbers here still look pretty good. You sound confident on, you know, 75,000 plus going forward. Maybe comment on that just given the mixed feedback we've heard from others in the hospital CapEx landscape. Thank you. Yeah. I think just overall, we're still feeling good about the foundation of our business in terms of the driver shipments. You know, we believe we're gonna be above 75,000 again next quarter. Continue to see 7% growth in our installed base. Well, the challenges we've seen, though, are, you know, some of our OEM partners have had some challenges as well, and it's impacting our ability to install new equipment and recognize some of that revenue on that equipment as well as we on our installations as well as theirs. So as we think about installations, those have been challenging this year just because of the availability of product from OEMs. As you keep in mind, as we're able to do those installs, we recognize revenue on the Masimo branded equipment. That's been challenged a little bit this year and we've contemplated some of those challenges in the guidance. Thank you. We will take our next question from Marie Thibault with BTIG. Your line is open. Hi. Thank you so much for taking the questions and congrats on a strong quarter. Wanted to ask a question here on W1 and the watch. Would love to hear a little bit more about the full launch, you know, what retail channels that was being sold through, any learning so far, and if we could hear maybe an update on the FDA 510(k) process there with the FDA. Thank you. Sure. We have not launched W1 in the retail channel. We intend to do that with a product that we call Freedom next year. W1 really is built for what I would call kind of our healthcare industry from hospital to home and prosumer. These are professional athletes and those who really are looking for this type of data. As far as 510(k), we submitted to FDA the 510(k) application. We have not heard anything yet. Hopefully by December 13th, we'll have more news on that for you. Okay. Very good. Yeah, we'll look forward to that, Investor Day. Maybe I can ask a question here, for Micah. I appreciate that we should wait for Investor Day to get too much on 2023 guidance. Some of your comments here about investments that have been tucked in, for the consumer healthcare products. Should we expect or would you like to sort of right size our expectations for spend, next year on those sorts of products? Just wanna be wary if there's any step-up or anything like that that might be expected. Thank you for taking the questions. Yeah. Thanks, Marie. I'll definitely address more of that at Investor Day. I think a few things, data points I can give you is, whenever we completed the acquisition and announced that we were adding some co-investment for marketing and development, we said that was going to be roughly 1% of about 1% on revenue for the business. That investment is likely to carry in and annualize out next year. I think that's something to contemplate. Another thing I mentioned in my prepared remarks is, you know, just as you think about your models for next year, you know, keep in mind that a lot of the currency headwinds, if FX rates hold at current levels, we're contemplating or estimating about $70 million of FX headwinds again next year, from the strengthening of the dollar. Just a few things to model in there, ahead of the Investor Day. Okay. Well understood, Micah. Thank you. We will take our next question from Jayson Bedford with Raymond James. Your line is open. Good afternoon. A lot of Jason's in the queue. Just a few questions. In 3Q, was there any material contribution in sales from W1? No, no. For third quarter, there was no material contribution from revenue from W1. As Joe mentioned, there's a few things. There's 510(k) is gonna be important for us, as this is gonna be a device that we think is gonna do very well and as we move from hospital to the home. And of course, we're making it available to consumers. That's where this one's gonna be focused. Then, hopefully you'll hear more about our next phase of consumer as we move forward. Okay. It was mentioned earlier about pilot programs with W1. Maybe Joe, just wondering if you can kinda walk us through the logistics, economics and how it's being used in these pilot programs. Yes. We are working with several really strong brand institutions in the U.S. that, subject to the pilot going well and FDA clearance, we expect really strong uptick. What they're doing, they're sending patients home, and they're monitoring them remotely with the W1, with also care pathways that they'll follow. The same goes in the Middle East. For Middle East, we're not waiting for FDA clearance. We're working with some really large groups, ministers of health, levels of group, where several hundred patients are being monitored at home. So far, the feedback we're getting from all the pilots are very positive. The first one likely to pop will be in the Middle East because we're not waiting for FDA clearance. If it does, it'll go from several hundred patients to tens of thousands of patients are monitored annually. It could be a significant revenue to us even before the consumer business begins with the launch of Freedom. Just so I understand the revenue model, it's a sale into the hospital and then a monthly service stream of revenue post that? That's correct. So there's a hardware sale. There's also a monthly service. It depends on the amount of monitoring they need. To some patients, we offer more than W1. They, for example, if they're diabetic, we'll offer them glucose meters and scales. For others, blood pressure and thermometers or Radius Tº. It really depends on the individual. With the service model that we have with it, the service is kind of like the recurring revenue of our pulse oximetry and rainbow Pulse CO-Oximetry business, where it will become a significant part of our revenue. Okay. Thank you. Micah, just a couple quick ones for you. The 2023 gross margin commentary, is the first half pressure all FX related, or is there something else in there? No, it's a combination of FX and also just some of the supply chain challenges. You know, I would say probably what we're seeing in the fourth quarter is probably the best way to look at it. If you look at our fourth quarter, we've got about 300 basis points of year-over-year pressure in that 51% gross margin number. That's. I'm focused more on the healthcare side here. It's actually looking at their 63% margins for healthcare. When you look at it year-over-year, it's about 300 basis points of total headwinds. About 120 we're estimating are from FX, and about 180 are operational. The majority of those operational headwinds are tied to those supply chain inefficiencies, like higher freight costs, and some components of labor, increased labor costs. Okay. That's helpful. I'll jump back in queue. Thank you, Jayson. As a reminder, just star one if you would like to ask a question. Our next question comes from Michael Polark with Wolfe Research. Your line is open. Hey, good evening. Thank you for taking the questions. This was asked a different way. I'll take another stab. You know, a lot of irons in the fire, especially as you're integrating consumer, new products in the works likely to launch next year. You know, philosophically, you know, what I understand 2023 is kind of a artificially small short-term box, but, you know, there's a lot to chew on this call, and I guess philosophically, how do you balance kind of the supporting these launches with, you know, managing the business and kind of short-term operating profit and EPS? I mean, is the guiding light to, you know, still grow earnings next year, or is there a scenario where, you know, these new products are, you know, potentially so compelling over the long haul that you'd really kind of invest to support them next year such that enterprise EBIT and EPS might not be up all that much? I guess any. I'm not asking for guidance, but philosophically, kind of where you stand on this, I'd appreciate an update. Yeah, absolutely. Michael, we'll definitely get more into that next month. But just as we think about it just at a high level, you know, one thing we don't wanna do is under-invest on being able to successfully launch what we believe are products that are gonna be very successful in some very large markets. We're going after some bigger markets, and expanding into new large and growing markets that's gonna really drive growth into the future, in the future years. We don't wanna under-invest there. We are trying to take a balanced approach. We do wanna deliver. When you think about, just exclude the FX headwinds for a moment, 'cause those are gonna have significant pressures on our reported growth. If you look at it more on an operational underlying growth excluding FX, we still believe we can demonstrate good growth in the next year on a constant currency basis on both the top and bottom lines. That's how we're looking at it, and that's what you'll hear more about next month. The follow-up is specifically on the core Sound United portfolio. You know, just kind of bracing for, you know, recessionary impacts. You know, what in your six or so months of owning the business, kind of what levers do you have to pull to protect the profit contribution of that business in the event of, you know, kind of revenue softness? I guess how much kind of fixed cost deleverage is there or variable cost to manage as kind of the revenue picture evolves? I mean, we've got a pretty good track record of being able to manage through some very challenging environments. I think that this would be no different. I, you know, I don't wanna get ahead of ourselves with we're still working through the plans for next year and beyond, but you know, we're still excited about the outlook for the consumer audio business as far as for next year. I think the way I look at it is they're doing a great job of outperforming the broader market. We're seeing that on both businesses, both the healthcare side as well as the consumer audio side. Relative to the market, we feel very good about our outlook. We'll get into more of that discussion next month. We will take our next question from Mike Matson with Needham & Company. Your line is open. Yes, thanks. I think there was an ITC hearing or something at the end of October. I don't know if you're able to share with us anything from that, but maybe you could just also give us an update on when we will actually hear something from the ITC. Yeah, I think you know we were first anticipating a ruling in September, and then that got pushed to end of October. Then, recently, right before that due date, we were informed by our judge that she is gonna rule by December 20th, I think, or somewhere around that date, 19th. We're hoping that date will stick, but more importantly, we hope that we're gonna win, and we just have to be patient. Is that the date that we'll know something publicly, or do we have to wait till the latter date, which I think is sometime in early spring or something? I think we should know something publicly, but there are two other steps. Assuming we win, the next stage is it goes to the commission to see whether they believe the product should be enjoined that we have gone after, which is the pulse oximetry side of the watch that Apple sells. The third, at some point, it goes to the President of the United States to see whether he wants to let that happen or not. Those stages will probably take 3-6 months post the December ruling. Okay, got it. You know. Keep in mind that our trade secret case against Apple is slated for end of March 2023. Okay, thank you. There's a lot about the impact. I can't hear you. I'm sorry. Mike, can you speak into the mic? Sorry. Maybe I was covering my microphone up on my phone there. I hear you making a lot of comments about inflation and the impact on your margins and whatnot, and I wanted to ask about your ability to raise prices to offset some of that, both in the medical and the consumer side. You know, have you raised prices? Are you able to do so? How, you know, if you have, how is that being received by the customers? Yeah, Mike, that was asked a little earlier in the call, and one of the things that Joe mentioned was, on the healthcare side, we've been reluctant over the past couple years. You know, we didn't know how transitory some of those could be and now it looks like they're definitely here to stay, especially as you look at labor costs. We are looking to pass through with some higher prices on where we can on the healthcare side. Then on the consumer audio side, we're probably being a bit more aggressive to offset some of those challenges. You know, if the environment starts to improve or stabilize, we should see some improvement from here. We're trying to be thoughtful about that with our guidance right now. Okay, thanks. The $70 million revenue impact that you're expecting next year from currency, are you willing to put that in terms of EPS? Like, how much of an EPS headwind you're expecting that to translate into? Well, I think one thing I can point back to, if you look back at and we still got to work through the math on this, but if you look at last quarter's investor presentation, I put out there's about a 57% drop-through to operating profit, maybe close to 60% drop-through on operating profit. And you could probably just model that in off those $70 million of top-line revenue headwinds. Okay. Got it. Thank you. There are no further questions at this time. I will turn the call back to our presenters for any closing remarks. Well, I really appreciate everyone joining us today. Hope you all can join us on December 13th, and we get a chance to meet face to face after a few years of COVID keeping us all away. Thank you all for joining, and see you soon. Ladies and gentlemen, this concludes today's conference call. We thank you for your participation. You may now disconnect.