Q4 2021 Masimo Corp Earnings Call
Record numbers of our innovative products last year, despite supply chain challenges.
Building on our reputation for responsiveness and dedication to our customers.
As a result, our installed base grew by 7%, while our revenues for fiscal year 2021 grew by 8% against the 20% revenue growth in the prior year.
We achieved revenues of $1 billion $239 million in 2021, as more customers than ever used and switched to Massimo products.
Acknowledging our clinically superior performance and value for optimizing care and improving outcomes.
During 2021, we expanded our portfolio of products with a combination of internally developed and acquired technologies that enable caregivers to rapidly captured the most accurate patient data regardless of the setting.
We broadened sales and marketing efforts for the soft flow noninvasive ventilation system for patients with respiratory distress and extended the reach of the litho cardiac output and hemodynamic monitoring products used in surgery.
Our 2021 results exceeded expectations and have positioned us for a year of double digit constant currency revenue growth in 2022.
I'll discuss more later in the call, including further details on our pending acquisition, which we announced with our earnings press release.
Now I'll ask Micah to review, our fourth quarter and full year results in more detail and provide you with an overview of our 2022 financial guidance. Thank you Joe and good afternoon, everyone. Our fourth quarter results were well above expectations as we once again shipped a record volume of single patient use sensors, while our driver.
Shipments once again exceeded our pre COVID-19 run rate by more than 20%.
Increased demand for patient monitoring and hospitals has been durable as these results demonstrate we had a record breaking fourth quarter, securing new customer contracts, resulting in another record contracting year for Massimo.
In fact, we converted a major U S hospital system to Massimo technologies in the fourth quarter.
During the quarter, we shipped 76000 technology boards and instruments, which was the highest quarterly figure for 2021 and points to continued demand for our technology.
We have shipped approximately $2 3 million technology boards and instruments over the last 10 years.
And as of the end of the fourth quarter, we estimate that our installed base has grown 7% versus our installed base at the end of the fourth quarter of 2020.
This is a notable increase considering the surge in our installed base a year ago. In fact, we estimate that our installed base has grown 25% over the past two years from the fourth quarter of 2019 to the fourth quarter of 2021.
For the fourth quarter of 2021, we reported product revenue of $328 million representing growth of 11% on a reported basis and 11, 5% on a constant currency basis. If you recall our fourth quarter 2020 results included one additional week of revenue, which added roughly three percentage points to our growth rate.
For the prior year period.
Regardless of the extra week in the fourth quarter of 2020, our revenue has increased 32% over the past two years from the fourth quarter of 2019 to the fourth quarter of 2021.
Our worldwide sales of single patient use sensors were up 15% versus the prior year period, driven by strong demand for our set sensors in line with typical seasonality our sensor revenues increased by 4% sequentially versus the third quarter of 2021.
For the fourth quarter of 2021, our worldwide sales of technology Board in instruments were down 3% versus the prior year period due to the COVID-19 related spike in purchases in 2020.
However, our worldwide sales of technology board and instruments increased 5% sequentially versus the third quarter of 2021.
Moving down the P&L, our non-GAAP gross margin for the fourth quarter increased 240 basis points to 65, 9% compared to 63, 5% in the prior year period.
If you recall in the fourth quarter of 2020, we experienced significant COVID-19 related to COVID-19 related inefficiencies, which suppressed our gross margin.
Our non-GAAP selling general and administrative expenses as a percentage of revenue increased 30 basis points to 30% compared to 29, 7% in the prior year quarter and.
And our non-GAAP research and development expenses as a percentage of revenue decreased 50 basis points to 10, 2% compared to 10, 7% in the same quarter last year.
For the fourth quarter, our non-GAAP operating profit was $84 2 million or an operating margin of 25, 7%.
In comparison fourth quarter 2020, non-GAAP operating profit was $68 1 million or an operating margin of 23, 1%.
This reflects non-GAAP operating profit dollar growth of 24% over the prior year period.
Driven by strong revenue performance and operating margin expansion of 260 basis points over the prior year quarter.
Moving further down the P&L, our non-GAAP tax rate was 16, 9%, which came in below the 22% tax rate that was implied in our last guidance. This was primarily due to higher than usual R&D tax credits in combination with a favorable geographic mix.
And our weighted average shares outstanding for the quarter was $57 8 million.
For the fourth quarter, our non-GAAP net income was $70 1 million or $1 21 per diluted share.
Yes.
In comparison fourth quarter 2020, non-GAAP net income was $57 3 million or <unk> 98 per diluted share.
This reflects non-GAAP EPS growth of 23% over the prior year quarter.
Turning to our GAAP results GAAP net income for the fourth quarter of 2021 was $68 3 million or $1 18 per diluted share and.
In comparison fourth quarter 2020, GAAP net income was $70 7 million or $1 21 per diluted share.
Included in our GAAP earnings for the quarter was $4 4 million of excess tax benefits from stock based compensation compared to $10 million of excess tax benefits in the prior year period.
Overall for the fourth quarter, we delivered strong performance across our businesses that exceeded expectations with double digit revenue growth operating profit dollar growth of 24% and EPS growth of 23%.
And our driver shipments once again exceeded our pre COVID-19 run rate by more than 20% even after the large shirt surgeon driver shipments we experienced in 2020.
Looking back 2021 was another record year for Massimo in terms of of 8% operating profit dollar growth of 12% and EPS growth of 11% on a non-GAAP basis.
Full year 2019 to fiscal year 2021, we have increased our revenues by 32% operating profit dollars by 31% and EPS.
On a non-GAAP basis.
Over the same two year period, our installed base of technology boards and instruments has increased by 25% the.
The number of connected beds via patient safety net and Iris gateway has grown by more than 50% and our installed base.
Route connectivity platform has more than doubled on the full year 2022.
Financial guidance that we outlined in our press release last month.
It is important to note that this guidance does not reflect the impact of our pending acquisition, which Joe will discuss in more detail later in the call.
For 2022, where we are projecting product revenues of $1 billion.
$350 million, which reflects year over year growth of approximately.
And 10% on a constant currency basis.
Included in our product revenue guidance of $7 million year over year current currency headwinds.
Our non-GAAP gross margin guidance of 66, 5%, which represents a 70 basis point increase over our 2021 results.
And our non-GAAP operating expense guidance is 41, 7% of revenue, which reflects a 30 basis point decrease over the prior year period.
Our guidance for non-GAAP operating profit margin is 24, 8%, which reflects a 100 basis point improvement over the prior year period.
non-GAAP operating profit dollars are expected.
Reached $335 million in 2022, which reflects strong operating leverage and pricing.
Profit dollar growth is one five times, our revenue growth rate.
Moving further.
Further down the P&L, our non-GAAP nonoperating income, which is primarily comprised of interest income is expected to be very very nominal amount in 2022.
We're also projecting a non-GAAP tax.
Yeah.
And from a GAAP.
Perspective, we are projecting a GAAP tax rate of 19, 4% and GAAP earnings per share of $4 27 for the year.
For additional details on our full year 2022 financial guidance for GAAP and non-GAAP earnings per share. Please refer to today's earnings release and supplemental financial information within the Investor Relations section of our website at <unk> Dot com.
To conclude our performance last year as we build a strong foundation for 2022 and beyond we delivered another record year in terms of in 2021 in terms of winning new customers, which has expanded our potential for future business across our entire portfolio and set the foundation.
The years ahead.
Okay.
Two markets this year and beyond we can play an important role in improving patient outcomes and reducing the cost of care.
On 22, with a positive outlook for revenue growth and profitability.
Our guidance reflects our confidence for driving double digit organic growth for both revenue and <unk>.
Profits as we remain steadfast in our commitment to delivering on our long range financial goals with that I will turn the call back to Joe. Thank you Michael.
No question that 2021, providing us with an opportunity to shine.
Okay.
Multiple challenges related to <unk>.
Threats from Covid now start to diminish.
All well positioned to build.
So on the progress we achieved in the last two years from winning the trust of more customers.
This has led to a record amount of new customer businesses.
Yeah.
Putting providence fifth.
<unk> plus hospital system with 25000 physicians.
It'll have a 120000 caregivers.
Having 25 million patients.
We feel that the end of the pandemic is in sight.
Our observations.
Those are becoming more optimistic about a return to normal conditions.
We should benefit from the rebound in surgical procedures, because our solutions include a variety of products used in the <unk> that are positioned for growth in 2000.
These products include Rainbow said line.
Three normal line.
Our ability to accurately measure hemoglobin levels with Rainbow and cardiac output with Litco and combination with set pulse oximetry and <unk> III organ oximetry provides clinicians that are valuable needs of assessing oxygen delivery to buy.
Knowing the oxygen delivery levels.
Intra operative blood transfusions and help improve outcomes.
NASA will result, evolving from a company with breakthrough noninvasive monitoring technologies for hospitals into a company that can provide breakthrough monitoring capabilities in any setting.
Fulfilling our mission of taking noninvasive monitoring to new sites and applications.
From the launch of <unk> over a decade ago, we have implemented a major strategic initiative to leverage our clinically superior technologies and to wearable devices for deployment in the home setting.
Our home strategy is coming to fruition with significant new products and features that will contribute to our success in this emerging field, including the recent announcement of Telehealth features with best in class safety net and Massimo watch.
Last week, we announced a significant expansion of the capabilities of Massimo safety net to include secure video conferencing to enable a comprehensive telehealth solution.
With this new capability, we can provide patients with better hospital at home experience as well as virtual doctor visits from their home.
Massimo station, Ed nylon loss, clinicians and hospitals to schedule and.
And conduct.
Multi way audio and video based virtual appointments with at home patients to the maximal safe to net smartphone app, while being able to view continuous and spot check vital signs and other physiological data.
Until a monitoring as areas, where we can deploy our differentiated clinically superior technologies.
To obtain the most accurate patient data to drive optimal outcomes and patient management.
Complementing these technologies that software and hardware that facilitates easy interactions between patients and health care professionals is critical.
Data is useful only when it's true and readily available to ex Premier Telehealth solutions.
And by integrating reliable.
To provide superior patient experience that is fast reliable and easy to use.
We've developed.
Full suite of products for enabling effective telemedicine. The Massimo safety net app is the easiest way for patients to connect with their doctors and care team without having to download additional apps was send in the field.
Our devices.
Today include the Ted on Australia, PPG and radius sensors, which can collect oxygen.
Duration pulse rate respiration rate temperature and other data.
Our newest offering in our telehealth product suite as the maximal watch the W. One wearable monitor which we recently debuted at the Arab Health Conference and is expected to be released worldwide in the second quarter. This year.
The <unk> is a versatile product <unk>.
They use as Massimo set technology to obtain oxygen saturation pulse rate and respiration rate on the risk unobtrusively.
In addition, we have added capabilities for measuring steps detected.
She's signals and arrhythmias.
Today, we announced our intent to acquire sounds United.
A company with a premium consumer technology platform and iconic universally recognized brands like powers on Wilkens, Dennen, Miranda and bulk audio as well as an integrated wireless software platform heels.
Connecting devices and networks in the home.
As importantly sound United has an excellent team of leaders engineers manufacturing and supply chain experts and highest fidelity consumer electronics.
The transaction is expected to close near mid year and is subject to customary closing conditions.
We expect this acquisition to be immediately accretive and to support our long range.
8% to 10%.
The sound United transaction aligns with NASA most priorities.
<unk> and vision by advancing our strategy of enabling connected monitoring across both the hospital and home.
We see significant opportunities to cross leverage technologies, bringing Massimo is clinically superior solutions into the home and on the go as well as bringing some unitas premium technologies into hospitals to advance our hospital automation connectivity and cloud based technologies.
The technology and expertise with sound United will serve us well as we aim to augment our telehealth and telemedicine strategy.
They are well established reputation and presence in the home can be leveraged by Massimo to accelerate our success in gaining adoption of integrated Homebase telemedicine solutions.
First with the maximal watch there'll be one.
In addition sound United unlocks access to large well established consumer channels are.
Offering us immediate scale with leading retail establishment like best buy in the U S and euro <unk> in Europe .
<unk> portfolio of products for consumer health and wellness is expanding as we launch more wearable technologies into the market we.
We intend to build on the success of products, such as Massimo sweep radius T and 90 sat with forthcoming introductions of some exciting new technologies.
Our go to market strategy is highly differentiated and bringing clinically superior technologies to consumers using our clinical and signal processing expertise to enable better health and wellness decisions at home and on the go.
The potential for Massimo technologies to be integrated into Wearables and connected consumer devices.
It is a key driver of our announcement today.
The strategic expansion of Massimo and the hospital and into the home has been underway for years as we develop many innovations that broadened the use cases and addressable markets for our technology.
With that as hospital automation and connectivity solutions, and we're now introducing exciting new products for telehealth, and telemarketing and consumer health and wellness.
These new opportunities outside the hospital represent very large and growing addressable market that far exceed the size of the traditional markets that we serve today with.
We hope to succeed in these new markets by delivering superior technologies that have proven success in the hospital setting.
In closing Massimo is well positioned for growth in 2022 and beyond with a steadily increasing installed base and a team focused on improving patient care.
We're looking forward to a post COVID-19 normalization that will facilitate broader use of our products across multiple settings.
This year should be a very productive one for massimo as our customer interactions intensify and we expand our addressable markets.
We remain committed to our mission to improve patient outcomes and reduce the cost of care and taking noninvasive monitoring.
Yes.
With that we'll open the call to questions operator.
Thank you very much ladies and gentlemen at this time any questions or comments. Please press.
Question have already been answered you can't remove yourself from the queue by pressing star one again with that will take our first question is that.
Afternoon from Matt Taylor with UBS.
Hey, good afternoon.
Thanks for taking the question.
So.
Well I'd love to hear more about the opportunity here for Massimo.
With the acquisition.
Maybe you could give us.
For some of your vision about how.
Great.
Great Massimo technology.
These brands and how quickly that could evolve to take more of your hospital.
<unk>.
Yes.
Sure. Thank you.
I'm going to give you I think a fraction of what we're planning because of competitive reasons, but I think youll see then the fraction of what we're discussing.
To be significant.
First of all I want to tell you since I was a kid I've been in this.
Sure.
Audiophile equipment.
Equipment and <unk>.
The engineering that has done to create these incredible products that can not only.
Replicate recorded music, but do it in a way without distortion.
With incredible fidelity and the companies that are part of.
Some united or the best of the best and.
What a fantastic thing and we're going to hopefully do things to help them become even better even though denim is a 100 year brand around to 50 year brand and so forth Bowers <unk> Wilkins and pulse with the first two Japanese companies that have done a remarkable job.
But they've got things like Helios, which we really like in the connectivity side.
We also see their incredible team and the way to develop the channels in the past 15 years led by.
Kevin Duffy.
That's a big relief, maybe on an opportunity that we see for the launch of <unk>, one and other products that are coming.
We have expanded significant resources for many years to get to this place.
From a technological perspective, and we believe.
This team will help us maximize the potential for <unk> and other products that are going to follow.
Secondly.
Maybe I'm getting older. My hearing is getting worse, but there is an opportunity with the Airbus.
And the new regulations in the United States.
Listening to music and having communication to improving.
The hearing and the experiences of <unk>.
Many many people and.
And we see that as another large opportunity that we will know better be able to serve.
These are projects, we've been working on internally, but now with.
Sound, United we can hopefully accelerate them and reach a broader audience more rapidly.
Okay.
Hey, David maybe if I could just ask one.
Follow up on them.
Okay, and the financials in Egypt.
I guess could you just talk about.
It's immediately accretive.
Okay.
Any longer term history that you can give us with that.
Grocery why Youre confident in this high single digit growth longer longer term.
Michael Yeah, absolutely yeah, so Matt some 70, United grew double digits in 2021 and that exceeded historical growth rates going forward, we expect our long term growth rate of high single digits.
And we'll provide more update on the 2022 outlook.
Into next year, as we think about going forward.
Once we close the deal in and hopefully we will have an investor day around that time that we close the deal.
So really talk about the markets in a bigger way and what we're doing to bring.
Then Linda ended the hospital, what we're doing to bring us more into the home with our efforts so as well so I think theres a lot of synergies with this deal and we're excited what we can do with our clinical clinically superior solutions as we go into the home and even on the go.
With sound United.
And also.
Their premium technologies are very valuable for things that we want to do in the hospital and as we look to advance our hospital automation connectivity and cloud based technologies.
Thanks, so much.
Thank you we'll go next to Rick Wise with Stifel.
Good afternoon.
One question for you to start.
Look I'm not a consumer analyst.
We have many many products in my home with these brand names I know it well.
I'm just.
And I guess I'm confident.
Very confident highly confident that you would have done this transaction unless you had truly visionary ideas and thoughts about how it is going to contribute.
<unk> over time, maybe.
Because I'm not as smart.
Maybe you could help me better understand.
How do we how do we think about I'll just follow up going to unfold.
CA one.
Series.
Products that combine Massimo and technology in the.
United Technology is that kind of start kicking in.
In 2000.
Once the deal is closed quickly or it can take several years to put all this together I'm just not sure how I'm going to explain to somebody exactly what this means good sales growth.
Margins in the outlook for maximum for the next few years.
Thank you Rick.
Are all your one of the smartest guys I know.
Okay.
But we're going to affect our minds and we're going to stretch yours.
I think we're going to push not just in household or consumer housing, we're going to lay out some of the media product lines and the revenues we anticipate.
Okay.
Sure.
What I can tell you is that this <unk>.
Strategy has percolating been percolating.
So.
Look out.
I'm really excited about this and I wish our vision of where we're going.
And with this.
But as you can imagine.
<unk>.
Our competitors I would like to know that too and I don't know.
Want to mess up the future by talking about it ahead of time and I always criticized or <unk>.
Well George were not <unk>, So why don't you let us deliver.
10 years Youre going to see some of the best.
Perfect.
Pretty quickly.
And again, Michael we'll keep the guidance.
The breadth of the best date, but we're going to have that.
Come out and.
Meet some of the folks from some United season to see some of the things we're planning to do together.
Okay.
I get it.
And weight that moment.
Turning to a couple of months.
Mundane things Micah.
Gosh I have to say I am impressed with the gross margin guidance the operating margin guidance.
And I might have feared and.
In my heart of Hearts that given supply chain challenges chip shortages and whatnot that.
The outlook might be more challenged.
Help us think through that.
And how you are.
How are you doing it.
Yes, Eric Great question Eric.
Just like any company right now I mean, everybody is facing supply chain challenges. The team has done a great job of navigating through those not to say they don't still exist and that we will navigate through some more in the future but.
Our operations team has done a great job.
We've continued to see some pressure from.
Some price pricing pressure, we've we've had some higher freight costs that have come through the numbers. This past year and like I mentioned before a lot of those costs really.
And <unk>.
Probably set us back a couple of years on our gross margin initially and we said.
But we're assuming those in our guidance as we're looking forward. So so we've incorporated.
For <unk> that to the best of our ability as we move forward and we feel very good as we move into this year.
And that's why we're reconfirming our guidance and in.
And expectations and outlook and it's a very strong outlook going forward and we're coming off another record breaking fourth quarter.
In terms of winning new customers, which is really kind of fuel that confidence forces, where as we're thinking about.
The outlook going forward. So so that's that's how I look at it right now Rick and.
We were going to do everything we can to continue to continue to navigate some of those choppy waters that every company is facing right now.
Great and just one last one if I could ask one more.
You talked I think Micah about the post COVID-19 recovery should be positive some positive from Massimo.
Youre feeling positive that all sounds great.
Help us understand.
No.
Part a.
<unk> dialed in in terms of recovery assumptions and to your guidance.
And two how specifically how do we think about that returning to more normal more normal electric how do we think about the potential impact on.
On top line growth. Thanks, so much.
Yes, absolutely Richard.
Bye now.
Working with me in several years now so I am very thoughtful prudent about how we how we guide we want to be.
Confidence in our guidance.
And we are kind of modeling out a steady return again through.
Through the next few months.
And then we believe that we will start to see a pickup.
And volumes as we move throughout the year so.
We we still believe volumes are probably down.
Census volumes are probably still around 80% to 90% range as we move throughout the fourth quarter and still still suppressed. So we're feeling like things are going to start to open back up more and we've incorporated some of that our guidance.
Thank you very much.
Thank you for your Wise next we go next.
Thank you and next we'll go to Mr. Mike Matson with Needham <unk> company.
Yes, I think thanks for taking my question I guess, just a few on the acquisitions.
Can you maybe tell us what.
Saudi United gross margin operating margins are roughly it looks like the EBITDA margins of about 14% I think.
Right.
Yes, Mike So if you look at it.
Yes, Youre right.
We'll update you more on the on the margin profile that you are right on the EBIT margin. So if you look at our EBIT dollars. So it's about $125 million of EBITDA and of course top line is around $900 million in terms of revenue. So so youre doing the math right. Its right around 14% is what they delivered.
On our estimates for 2021 calendar year.
But we'll disclose more as we get closer to the close and of course, as we get closer to our Investor day, and really demonstrate how this all comes together in terms of the combined company.
One of them.
First our revenues and promise of acquisition for breakout the revenues and profits for both businesses.
Okay.
I mean is it safe to assume that at least the gross margin is lower than <unk>, just given the nature.
For consumer products, Yeah, Yeah, absolutely I think if you went out there and looked at some of the peers to the company I mean, you would see it probably closer maybe a little <unk>.
Lately lower than even our capital sales margin, so you're you're probably in the ballpark, but I'd say go look at some of the peer companies that are out there.
Okay, and then is there any way you can give us any sense of the cost.
Cost synergies youre expecting with this deal.
Sorry no.
Not expecting any cost synergies.
We want the entire team.
We hope we can keep the entire team.
So no.
Matt.
Okay, and then just finally from a from a manufacturing perspective.
Can you maybe talk about any opportunities there too.
Leverage youre purchasing.
Yes.
Manufacturing facilities and things like that FERC, some solid electronic products.
Yes, I think he knows really well.
Sure and well run area and we do hope from their manufacturing supply chain team there'll be things, we can learn adobe things we can add.
And the Great thing is they will add few more R&D centers as well.
At least two or three more manufacturing sites for us, which will allow us to have a more global.
Bleach into the best people, we can you can hope to get.
Okay got it I'll, let some others can on thank you.
Thank you.
Thank you and just a quick reminder, ladies and gentlemen star one for any question and we go next now to Jason Bednar with Piper Sandler.
Hey, good afternoon, thanks for taking the questions.
There's a lot of different things are going to ask here, so I'll try and try and pick a few in here.
On sound, United I guess help me out with a few items in this deal.
Big deal for you Youre, putting your stake in the ground and bringing in in house, a consumer technology company.
What made sound United the right asset for Massimo to acquire versus other targets out there and our partnerships that you may have been able to form with other technology companies.
Sure.
Outright ownership here the right approach is it seems like the main joint technology here as the connectivity element you referenced so maybe why not simply license that part of the technology from Sandy United.
Well, we did look at many different consumer.
Company's consumer technology companies, and we lifestyles, United the most for several reasons one.
Their management.
The team.
Through the distribution channel.
That is essential to what we believe is an important product for us which is to Massimo watch.
<unk>.
The brands and the quality of those brands and the durability of those plants. This is not a company.
Products that are here today gone tomorrow so.
And those are.
No.
I thought it was.
Critical but it was great that their management team are based out of calls that they're just.
30 minutes 40 minutes from here, so that all made him an ideal.
<unk> for us too.
Let's get to the finish line width.
Okay Alright.
Partnership I'll, just tell you that we really wanted to.
Our control of the strategy, we don't want.
Things do you have in mind to get leaked out there and we need the undivided attention of this team.
When we were developing rainbow so with two companies that had the semiconductor led in total with Texas that we needed for Rainbow and.
It was hard to get exactly what we needed. So we acquired a company called spire semiconductor will not called Maxim semiconductor and is one of the Boston, we ever did because not only we were able to focus them on our challenges, but we ended up getting much better products at much lower cost and it's even help.
Our pulse ox, finishing set business.
Because of what they can fabricate for us So I think.
<unk>.
We're totally open to partnerships with many of them. We started as a OEM company, where we reached partnerships with about 100 companies, but this is a strategic area, where we felt we needed to have it all in house under one family.
Okay. So I guess, maybe maybe following up on that point.
To be fair, there's a lot of really good consumer technology brands out there that.
You may be you could you could acquire so I guess is the overriding value here just.
You're acquiring channel relationships add.
Bringing on some pretty decent EBITDA in the process.
I guess, what I'm struggling with is like what's unique about this asset and as far as integrating with Massimo <unk> technology down the road.
Yes, I think the channel is the obvious with the management team and but there is more growth technologies that they have that we have together I think will do a lot more for people. So again I can't get into that stuff right now but.
But they were all I could not think of a better company for us to acquire and given how we envision the future.
Okay.
One more for me then I'll hop back into queue.
I guess is there any concern or can you talk about where we are with respect to revenue and EBITDA over the last 12 months that you reference that are being bolstered by pent up demand during the pandemic.
Just maybe how you see this growth the business looking.
Let me move you kind of post Covid and maybe you could get beyond some of this.
Potentially some pent up demand or do you not see it that way.
You are talking about some united or maximum.
Sorry, sorry.
On United.
Yes.
Well you have to assume that there is some COVID-19 bump.
Thats really the way we went into us that is still the way we felt comfortable with it but if you could speak to the management team the Netherlands seem to be slowing down and I think it's because of not only some of the new products they've gone into but some of the new products that they are going to be introducing so even on their own.
They are bullish that this is not going to end, however, we're being more conservative and we acquired it.
Assuming.
High single digits long term growth and maybe a little slowdown right after COVID-19 .
Okay.
Okay, Alright, thanks, Joe very helpful. Thanks.
Thank you. Thank you so much.
Yes.
I wish I could share with you all the things, we're thinking and wanting to do.
No, it's a little frustrating but.
Okay.
We are more likely to accomplish the end goal. If we can keep some of that to ourselves until the products.
<unk> market.
Thank you and we'll go next now to Jason Bedford with Raymond James.
Hi, good afternoon, and thanks for taking the questions just a couple here.
And I hope this isn't.
Question, but where do you see the bigger cross sell opportunities here that China, United product into the hospital or Massimo products team as a whole.
Massimo products into the home.
We see some opportunities for.
A few.
Future products that we're going to be created for hospitals that come from.
Integration of some United the Maximus technologies, but immediately we think theyre going to be beneficial to our push into consumer healthcare.
Okay.
And just on that the WT, one offering what needs to happen before you launch I think you said <unk> what needs to happen for Korea launches their regulatory requirements and then talked about the channels that you used to sell that product.
Well Martin release, and then the full market release, and we do that even when we have a perfect product so real rigor and a pre market release mode. As you saw we debuted at Arab health, we have customers in the middle East that are using yet.
Or about to use it.
And as far as.
I think when you mentioned kind of.
The timing of the actual full market with the defense how smoothly the pre market release stage and the limited market release Stagecoach somehow.
And then as far as your regulatory question.
We can market discipline with algorithms.
So from our clients, but we plan to submit for FDA clearance because we believe this will be used by many people as health product is not just a wellness product.
So we might have two versions of it like we do today Rx version.
And the consumer version.
Okay.
Helpful. And then maybe just last one on United.
Hello.
Obviously looks attractive from a valuation standpoint, bye bye med Tech standards, but can you just Joe maybe highlight some of the risks involved in this deal.
We easily.
Yes, yes of course.
Risks involved if we don't keep the management team hopefully remove some of the key people that we want to keep.
The risks involved I told you about a decade ago, where we are on that basis. What are you seeing it more as an oasis.
And.
And it looks like Covid health.
So net debt.
Vision instead of it being a mirage.
Regardless of whether we wholesale.
The home.
We think everything we're going to do with some United will make us a better company for hospitals and professional caregivers.
So.
Whether it becomes a home run or a second base, it's going to help us be a better better company to our current customers.
Okay. Thank you.
Thank you.
And gentlemen, it appears that is all the questions. We have for this afternoon. Mr. Kiani I'll turn things back to you for any closing comments.
So I wanted to thank everyone for joining us today I'm looking forward to our analyst day.
To share with you more.
To play with.
The maximal watch itself and maybe buy some of it yourself.
But.
Bottom line.
This is an exciting time for us and this is the first major acquisition, we've done post roughly seven smaller tuck ins that we've done which every one of them had been successful.
But this is.
This is a wonderful opportunities.
<unk> for all of the possibilities we have been hoping for so have a wonderful day. Thank.
Thank you.
Okay.
Okay.
Thank you Mr. Kiani again, ladies and gentlemen that will conclude today's maximum one earnings conference call.
Okay.
Okay.
Yeah.
Okay.
Okay.
Okay.
Yes.
Yes.
Sure.
Okay.
Okay.
[music].
Okay.
Sure.
Okay.