Hi, everyone. I'm Lilia Lozano. I'm on the MedTech team here at J.P. Morgan. I'm happy to have the Masimo management team with us here today. I'll pass things over to CFO Micah Young before we open things up for Q&A. Thank you, Lily. All right. Appreciate the opportunity to be here with you today. Thank you to the J.P. Morgan team for hosting us. Before I get started, I'm just gonna go through some housekeeping here. This presentation will include forward-looking statements that involve risks and uncertainties as well as Non-GAAP financial measures, which you can refer to those in our SEC filings as well as on our investor relations website. All right, I'm gonna start out with just a brief overview for those who are not familiar with the Masimo story. We are a global leader, global market leader in pulse oximetry, as well as other highly differentiated medical technology solutions. We're guiding to about $2.3 billion-$2.4 billion of revenue in 2023. 61% of those revenues are from our healthcare business, 39% from the non-healthcare business. I'll get into more of the breakdown of those businesses here shortly. We have over 8,000 employees worldwide, about 825 engineers behind the innovation power of this business. We are in nearly 200 countries worldwide. We're going after markets that are collectively over $170 billion in total market cap. We really started out, the company was founded back in 1989 by Joe Kiani and Mohamed Diab. They set out to solve the unsolvable with SET pulse oximetry, which is our Signal Extraction Technology, and that's the leading pulse oximetry in the market today. We were able to get accuracy specifications, the first accuracy specifications for those technologies back over 25 years ago with ±3%. We've continued to improve that over time, that's led us to be the industry leader. We've also came out with a lot of innovative technologies beyond pulse oximetry. Our core set has about five different parameters. We've added another seven. You can get, with one fingertip sensor now, you can measure at least 12 parameters, with some of the technologies of Rainbow that adds continuous hemoglobin measurements, which are really relevant in blood management programs for hospitals. We've also expanded beyond there. We've added our own monitoring devices, also service and solutions in the hospitals with advancing a pretty robust portfolio for hospital automation technologies, improving complex workflows in the hospital, trying to automate those workflows. We can now connect over 1,000 devices in the hospital from multi-parameter monitors, infusion pumps, anesthesia machines, and that creates all the real-time data flow coming from those patients and from those sensors to where we can manage the status of those patients through the hospital and move them and help our customers discharge them effectively into the home. We've also created, by expanding off of our SET capabilities, our pulse oximetry capabilities, that's been an expandable platform for us to where we can now take that, and we put it in wearable form. We've gone to wireless, wearable wireless fingertip sensors. We've also created our W1 watch, which is our first health watch, which we launched last year. That's mainly focused around telemonitoring. We will have a consumer version of that coming out, we're planning for the second half of this year. I'm gonna jump into, if you look at our healthcare revenues, we're guiding, we provided guidance for this year, and we're guiding to about 9%-11% growth for healthcare for the next five years. Non-healthcare, we're guiding to mid-single digit growth there. That business is really gonna help as we integrate the platforms between those two businesses, really help us to drive an acceleration into these new consumer health markets for us. We're well-positioned to create significant shareholder value over the next 5 years-10 years. It all starts with our innovation. We have a proven track record of innovation. We never stop innovating at the company. We're always trying to find ways. We take a customer-driven approach. We look at the needs of our hospital customers, where they need solutions in the hospital, how they need to improve patient outcomes, we work our way back and engineer our products according to that. That's led to clinically superior technologies with the highest degree of accuracy in the hospitals. Now we're moving that across the continuum of care in the hospital, but also moving that into the home. That's allowed us to provide a robust product portfolio and pipeline in professional health that addresses unmet needs of healthcare professionals and their patients. We're also scaling and integrating our integrated platform capabilities. We, to capture the large consumer health markets that we're going into. That was really enabled by the acquisition we completed last in April of 2022 for the consumer technology business of Sound United. Last but not least, we built a very strong performance culture. We have a strong track record of execution financially, and we've set a foundation that should drive sustainable revenue and earnings growth over the long term. Just kinda stepping back and looking at the reason we did the acquisition last year. We had been investing in consumer health technologies over the years. We've moved, like I said, moved to more wearable platforms. We now have our first watch. We recently announced at the Investor Day just about a month ago that we are now coming out with a baby monitoring system, which I'll talk about here briefly, which we call Stork. We're also moving more towards providing wearables, such as fitness and sleep trackers and also a next gen consumer version of the watch that'll be able to measure blood oxygen saturation, pulse rate, respiration rate, and some of those key health measurements. Now we have a breakthrough Hydration Index. The reason we did this was we've made a lot of the investments in the innovation. We had the products ready to go, but we saw a pretty heavy multiyear investment required to build out the consumer distribution channels. With the acquisition, we got immediate access to 20,000 points of retail distribution globally. We also brought on a team that had direct-to-consumer marketing expertise, over 450 consumer and marketing sales and marketing staff globally. That would have taken us years to build. We also have the ability to leverage over the brands for this new business, the Bowers & Wilkins, Marantz, Denon, Polk. These are premium brands, premium luxury brands that are already moving into a big area, which is hearables as well, and we'll talk about that. It's a big market for us. That hearables market's about an $85 billion market. They've been growing that business pretty rapidly within. They're still very early. They've got some great products out there that are being recognized, great reviews out in the consumer space. That gives us the ability to leverage where we wanna go into, developing products in the hearables space, especially for hearing enhancement. The bar's been lowered a bit to go over the counter with some of those, hearing enhancement devices like hearing aids. This gives us the form factor, it gives us the brand recognition. We've got two great teams of engineers. We now, as you can see here, we have an engineering power of over 825 engineers now that are great at signal processing, that we can cross-leverage those capabilities with theirs in audio, with the consumer team, with their experience in audio, as well as the healthcare team with the experience with optical spectroscopy and bringing those types of things together, we can create a lot of great new products in the consumer health space. The other thing is we see the vision for us is that we see that consumers and patients, we can follow the patient not only through the hospital, but into the home, but also back into the hospital. If you think about it, you know, we see a time down the road where health data is gonna be important to have your baseline with you, at any point in time, whether or not you're able to interface with your clinician at home, or you come back in and think about connecting back into our devices in the hospital, with one of our wearable devices like the watch, and being able to download that baseline data and use that. A lot of times you go in the hospital and the clinicians don't know your baseline, and it's very difficult to diagnose and be able to treat the patients until you learn that baseline. We're trying to close that loop all the way through to the consumers and back into the hospital. We did this at a reasonable value, 1x revenue, at 8 x EBITDA. For the company, it's immediately accreted to earnings, and it provided significant upside options for us, as we start to roll out a pretty robust pipeline of consumer health products. The next slide shows that this gives us the opportunity to really expand our addressable markets. We have a $9 billion market for us in the traditional hospital market. We're now adding the home audio, the premium luxury, that's about $6 billion. Where we are focused is going after the hearables market. That's an $85 billion market when you combine the $55 billion headphone and earbud market with the $30 billion hearing enhancement market. Also wearables. The wearable technology, that market is over $50 billion in telemonitoring. Where we're going in that space, we've sized that as a $20 billion market. This acquisition helps us to accelerate our efforts in those areas and really try to capture market share in each of those spaces, and also do it where we can accelerate our ability to get to a profitable consumer health business much faster. Back at Investor Day last month, we took a deep dive, and I encourage you to go out and listen to the webcast that's out there, that all the leadership of Masimo and Joe Kiani, our CEO and founder, you'll hear him talk about, each of them talk about kind of going deep in a lot of these areas. I'm just gonna touch high level. I'll start with professional healthcare. Our core in professional healthcare, as I mentioned before, is our SET pulse oximetry. It represents about 79% of our revenues there. That's growing 3%-4% in the market. It's about a $3 billion market when you start to include the general floor expansion opportunity there as well. Our guidance and our long-range targets are to grow at 2 x that growth rate, 6%-8%. Rainbow is about 10% of our revenues, and that involves parameter and measurements such as Total Hemoglobin, continuous hemoglobin, and carbon monoxide measurements, things that are important for EMS professionals as well. That's about 10% of our revenues. We believe when you look at helping hospitals manage those blood management programs and looking at high blood loss surgeries, we've sized that market about $2 billion, and we plan to grow that business about 10%. The other advanced parameters, brain monitoring, which is SedLine and O3, those products, as well as NomoLine capnography and gas monitoring. We also have hospital automation product line, and we're entering into telehealth and telemonitoring. Each of those areas we expect to contribute another percentage point to our long-range growth rate. If you look at the foundation of Masimo, it all started with Masimo's SET technology, as I mentioned. Today we're monitoring over 200 million patients with that technology. It's a core pulse oximetry technology in the top 9 out of 10 hospitals in the U.S., according to U.S. News & World Report. We have over 100 clinical studies out there that show the outperformance of SET, and that's where we've really taken that platform, and that's been the expandable platform for us. We've been able to take that not only throughout the hospital, even to the general floor areas of the hospital, the step-down units, but now we're getting more into the home with telemonitoring and ultimately, like I said, with some of the consumer health products. We've not only been a non-invasive kinda measurement company, we've also developed our own patient monitoring devices. You can see some of those here with some of the Root devices. We've expanded into NomoLine capnography beyond SET, Rainbow, SedLine. LiDCO is an acquisition we did for cardiac output. That combined with some of our Rainbow measurements, we can now measure oxygen delivery as well. We came out with another breakthrough measurement, which is Sepsis Index. We're continuing to innovate to where if you look at some of the, for example, the Halo Index, we've talked about that in the past, where we have algorithms that we take from measuring all these parameters that are coming off patients, and we can bring those together and develop advanced algorithms for decision support and be able to provide the status of that patient. One of those statuses is really around sepsis, and that's been, you know, one of the leading causes of death in hospitals is sepsis. That's something we're excited about. We just announced that about a month ago at our Investor Day. And we're continuing to advance more and more with those different algorithms as we help clinicians with that decision support. Moving into now going from hospital to home. If you look at our vision for telemonitoring, we're trying to create a cloud-based ecosystem to where we're working with partners. We've got implementation models. We're piloting right now with, you know, large entities outside the U.S. as well as large institutions in the U.S. to develop pilot programs, and they're going through those right now. Those will be some good, you know, something to keep close to as we hopefully announce some of those partnerships, and the fruits of that labor coming up here soon. We're taking medical, clinical-grade wearables, devices that are, you know, same things that are measuring you in the hospital, but in wearable form and being able to combine that with customizable pathways, clinical pathways, working with hospitals on their protocols, on how they manage patients through long-term chronic disease type programs, management programs. You know, we feel that everything's moving that direction. Even during COVID, you know, CMS came out with remote patient monitoring, where they reduced the duration, I think it was from 18 days to 2 days, and it opened up more opportunity for hospitals to implement these programs because they were really tied. Almost you had to be managing a patient through a long-term chronic disease as opposed to a short-term acute illness. That really opened things up there. Also, through CMS, they've allowed hospitals to where if they can put together the right set of criteria within the hospital and their programs, that they can get full reimbursement under DRG codes. There's a lot of things moving this direction, of going more outside the hospital and continuing to follow the patients and provide better care management in the home. We're well positioned. Like I said, we've got the wearable wireless sensor, Radius PPG, that we can monitor those patients. It's a great protocol for patients who are post-surgical discharge. We have the watch, the health watch now that could help with those patients who are on long-term chronic disease patients. Introducing the Masimo W1, we rolled this out last year. We're working through, like I said, pilot programs, but it's the first continuous accurate health monitoring, wearable device that can monitor pulse rate, blood oxygen, respiration rate, and a new breakthrough is parameters or Hydration Index. Hydration is not only important for athletes or fitness enthusiasts, it's also important for hospitals and how they manage patients. If you look at major calls for readmissions, it's hydration. People will get dizzy and come back into the hospital, especially if you look at ileostomy-type procedures. That's an important breakthrough index for us. That's gonna be continuous real-time directional feedback on hydration. We see a clear consumer need here. One-third of every American has at least one chronic disease or illness. You know, this is addressing a very large market, even beyond just telemonitoring with the consumer health. You know, this is a over $50 billion market for wearables. I think we're uniquely positioned there. As I mentioned before, we're also planning to launch our Freedom Watch, which will be in the second half of next year or second half of this year, sorry. If you look, switching over to consumer health and audio, if you look at what we're doing here is we're trying to leverage, and I mentioned this before, is we're leveraging the shared platforms of the businesses. We now have over 800 engineers combined as a company, with the addition of nearly 400 from the Sound United acquisition, leveraging over 1,700 patents between the companies. We most importantly, as we're getting ready to launch a lot of these new products, we're leveraging a integrated framework around a global brand and marketing framework that's gonna allow us to accelerate the launches of some of these products. Of course, a lot of these products are gonna be pending FDA 510K approval, but this positions us very well for when those products are ready to launch. We also are focused around continuing to build out a connected software ecosystem in the homes, beyond just Masimo SafetyNet, where you can connect it through your phone. We're trying to create that connected ecosystem in the home environment. With the acquisition, we have now 3.4 million devices in the homes, and we plan to turn on those devices later this year, that would be capable of acting as health hubs. This is an opportunity to really build an installed base there where we can start to go after and hopefully deploy some of our consumer health products into, as well as telemonitoring. The last one is the omni-channel go-to-market. We've acquired about 20,000 points of retail distribution partnerships in place that we can really deploy through each of those channels. One thing that was opening for us, and we didn't have the expertise in consumer health or even any area of consumer when before we did the acquisition. We were starting to build that out, that expertise. We acquired that through the acquisition, and the team has done a great job of really segmenting the consumers here that we're going after and we're trying to deploy a lot of these consumer health products into. Areas they're focused on is the vulnerable. You'll see one of our upcoming launches will be the Stork baby monitoring system, which I'll talk about in a little bit. We're also focused on the aging population, the elderly, recovery, health and wellness, and athletes. They've really come in and segmented those and profiled those customers to where we've got a great, very thorough, marketing plans as we roll out each of these products. The first product is Stork. It's a baby monitoring system, leverages our highly accurate, clinically superior technology in the hospital, which is our SET pulse oximetry technology. It allows us to provide alarms and alerts, give parents a peace of mind, it's a natural movement for us from the hospital to the home. If you look at what we've done with babies in the NICU, for example, or infants, we've not only improved screening of CCHD, we've also reduced retinopathy of prematurity in infants, which leads to blindness. Our technologies are it's an incredible expanding platform that enables us to go into a marketplace that we feel like, you know, there's an opportunity to really raise the standard. This is an existing market today. We think the potential for that market is about $1.5 billion market, growing double digits. With 130 million babies born per year, this could be a big opportunity for us. The next one is the wearables market. With wearables, we're looking to launch, as I mentioned before, the Freedom, the new smartwatch, with all of our parameters and measurements, including hydration. That will be out the second half of this year. It'll be more consumer-focused. It'll have more connectivity, natural operating systems within a smartwatch. It can be used for telehealth, telemonitoring, but really going after the larger consumer market that we've sized here. We're also gonna be launching some sleep and fitness bands as well that track a lot of those core parameters in the second half of this year. The last piece is really the premium and luxury home audio and hearables. Bringing the teams together to really advance and develop new hearable devices. We have advanced acoustic technology which can personalize sound, customize it to your hearing profiles for playback and listening to music. What we wanna do is continue to evolve and bring the teams together to develop the next generation of hearing enhancement devices. That'll be something that'll roll out over the next couple years. We are going to launch, though, into the to more of the audio space with hearables, with earbuds, later this year with and brand it under the Denon name. It'll leverage the Masimo Adaptive Acoustic Technology. That'll launch sometime in the second half of this year. Just turning and wrapping it up is our. We've had a strong track record of top line and bottom line growth over the years. Over the last Since we set out our last long range plan of, in 2017, we've delivered 14% revenue growth, 23% earnings growth and about 520 basis points of operating margin expansion. We've laid out a new long range plan. It's on a much higher base of revenue, much higher base of earnings, we're planning to grow our top line 7%- 9%, and leverage earnings of 10%- 12% growth. We have a lot of shots on goal for upside, as we haven't included a lot of those new technologies into those long range plans yet. We've included some level of the Stork revenues, as well as W1 for telemonitoring. A lot of those new consumer health products which are gonna be subject to 510K approval as well, those would be upside shots on goal for the business. All right. With that, I'll turn it over to any questions. Can you go to your first slide? What was that? First slide? Yeah. It had to be the first one, didn't it? Maybe I can start. I can kick things off with a few questions. Yesterday it was announced that Apple was found to infringe on one of your pulse oximetry patents. Can you talk about what that means for you moving forward, both strategically and if there are any financial benefits to that win? Let me give you some background of the ITC. The ITC, the first phase, the first stage is. It's in really three phases. The first one is, yesterday you heard the administrative law judge made an initial determination that they, that Apple infringed on one of our patents and violated U.S. trade laws by selling product that infringed on that patent. That's a good initial step for us, of course, and it's positive. The next step would be is the commission, the International Trade Commission would will have time to review that. I think the deadline, or they've set an initial date of, I think it's May 10th, is when the ITC, the commission, would review as well. They would make a decision on whether or not to exclude the Apple Watch that are violating these U.S. trade laws from being able to be sold in the U.S. The third phase would be if it's supported by the Commission and they uphold that, it would move to the President for signature. That's about a 60-day period. That's where we're at there. Keep in mind, this kinda has three legs to it. It's not just the importation on the watch for the ITC, but it's also we are going through a trade secret case. The trade secret case, the trial will be in late March, with probably a verdict, I'm guessing probably around early April is when we'd hear that. The patent infringement case is being stayed right now, and it's pending. We've had to go through about 21 IPRs that were filed from Apple on our patents. We've had to work through those. We're in the state of appeals on those patents. That process will take a lot longer. That'll probably be at least 2 years-3 years, if not longer, to settle or to get through that patent case. Of the IPRs, how many have been invalidated or what's the status of the IPs? On the IP- Yeah. Eli, do you have the number right now? Yes. In the neighborhood of about 18-19 out of the 21. Were invalidated? Yes. Those are now going to be appealed through the court channel. That's why that, infringement, pathway is so extended. You can come on up. Can you provide a little bit more color on the benefits of the Sound United acquisition, from a strategic and financial perspective? How did it compare to standing up the consumer health business on your own? Yeah, I mean, we looked at a lot of different options. I mean, we looked at partnerships. We've evaluated partnerships. We've evaluated a lot of companies in terms of acquisitions. You know, we also evaluated building it out on our own. You know, we want to control our own destiny. We felt like this is too important of an initiative, and we have a lot higher goals and expectations than even we've provided in that long range plan. You know, so that was important to us. Wanted to control our own destiny. Well, that's where we felt that it was right to look at, you know, potential company that we could acquire. We looked at a lot of companies. Some were just the financials didn't make sense. There's other areas that just, you know, wasn't strategic fit for us. We liked how a lot of those boxes checked down the line for Sound United. Again, we weren't focused on audio. We were focused on what we could do together to deliver the best product in consumer health as well as they happen to be a great fit for hearables as well. That's a big market that we're going after. It would have been, you know, heavy multiyear investment, highly diluted earnings, and we didn't wanna do that. It just happened to be a company that had pretty good financial metrics, and they were immediately accretive to earnings. It gave us a very scalable platform and something that we can drive a lot of synergies on over the next 5 years-10 years. That's great. Which upcoming new product launches are you most excited about, and how is Masimo positioning these products versus existing competitors in this market like Apple, Garmin, Owlet, et cetera? Yeah. You want to hit it? Yeah, sure. Mm-hmm ... biggest near-term introduction for us will be the Stork baby monitor, which we're expecting to launch sometime around midyear, once we get the FDA 510 approval for that product. That product should get off to a running start with a combination of Masimo's reputation in high-fidelity vital signs measurements and the power that Sound United brings to the marketing channel in terms of consumer profiling and promotion. That's the first one to look for. After that, we've got another important product coming, which Mike had just described, which is the earbuds with the customized hearing adaptation for a person's hearing ability, where it automatically sets the equalizer settings to optimize the music listening experience for each individual. That also will be around midyear, sometime in the second half of the year. lastly, we've got the next generation smartwatch. The Freedom Watch will be a full-fledged smartwatch coming out, near the end of the year that will work on the Android operating system and have full functionality going far beyond the capabilities of the W1 watch. That is the vital signs watch that will appear in, brick-and-mortar, retail channel locations. Maybe I'll pause. Oh, there you go. Can you expand on that? What do you mean by expanded functionality in the Freedom Watch? Is that more sensors or is it more connectivity? It's more functions in terms of app-like capabilities, messaging and so forth. W1 is just a basic vital signs capture watch with a novel Hydration Index, whereas the Freedom Watch will be analogous to what you see out on the market from Samsung, from Google, and will go well beyond the capabilities of the Garmin and Fitbit devices in terms of fitness utility. Yeah. Yeah, the synergy between Masimo Health and Sound United, et cetera. Mm-hmm. It's not very clear what the theory of the case is because the way Masimo has grown in the hospital, it's about sensitivity on low perfusion cases. Mm-hmm ... pediatric cases, motion, and the bar as far as sensitivity specificity is concerned is very different in a hospital versus in a home setting for wearables and the like. Furthermore, the parameters you want in the home, which have to do with fall detection or cardiac, are not spaces where Masimo has traditionally been strong in. The theory of the case on the back end, which is better signal processing and all that from a technical standpoint, I get. Yeah. How do you translate, you know, this into this new market? I'll hit on it first, and Joe can jump in. We are working through partnerships as well. We have our own ECG that can do spot check, keep in mind and on the existing W1 watch. We also have fall detection capabilities in the hospital that we'll be able to ultimately leverage into the home. We're also partnering with companies. We have partners we're working with to co-develop and co-work, collaborate together, to bring together more parameters, more measurements. Those things I think, you know, we'll be excited to announce here soon. That's really. We're trying to establish that beachhead with telemonitoring and really that discharge from hospital to home and that's gonna be a big area for us to partner and leverage the technologies we have today and combine that with other partners for some of their capabilities as well. We have health kits today to where we partner with other companies to bring like Bluetooth scales, blood pressure cuffs and different things like that together. I think it's just creating that full. Where we can help and be valuable in this whole value chain for telemonitoring is being able. We're very good with data management and connecting back into clinicians and managing patient data and coming up with advanced algorithms and for decision support. You know, we've worked a lot with health systems over the years and we're piloting with those right now that are very interested in a lot of the capabilities we have. I think it's a very scalable platform, but we're willing to partner in areas where we have gaps, if that answers your question. Let me just add to that by saying it's important not to overlook the value of continuous vital signs measurements rather than spot check devices, because with continuous measurements, you can detect deterioration early through trend line analysis. Secondly, we've also got the ability to track this data and send it remotely to the cloud and then to portals where physicians and nurses can view it on demand. You can get an early intervention that can prevent a hospitalization for people with chronic diseases like CHF or COPD, and get a very strong payback on the investment for the hardware by saving small amounts of hospitalization episodes. Any other questions in the room? Maybe just one last one in the few minutes that we have left. You're guiding to 9%-10% growth in the professional healthcare business for 2023. What are the drivers of that growth? Where do you see upside, and what do the growth drivers for professional healthcare look like over the long term? I would say, I mean, first and foremost, currency's improved here lately, so that's gonna be a tell when as long as rates hold kinda where they're at. Just more organically in the business, I see, you know, great opportunity with our Hospital Automation platform with Rainbow. You know, if we can see some of these contracts playing out with telemonitoring earlier than we expect, then, you know, those will be nice tailwinds, especially as we look into long-term growth. I think where our upside long term comes over is in those areas. Telemonitoring, we've got a lot of the consumer health products we talked about, but those are gonna be a lot of upside opportunities for us as we roll that out. Great. With that, I think we're just about out of time. Thanks to the Masimo team for being here, and thanks everyone for joining. All right. Thank you. Thanks. Thanks. Thank you.