8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________________________________________

FORM 8-K

________________________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 3, 2022

MASIMO CORPORATION

(Exact name of registrant as specified in its charter)

________________________________________________

DE			001-33642		33-0368882
(State or other jurisdiction of incorporation)			(Commission File Number)		(IRS Employer Identification No.)
52 Discovery	Irvine,	CA			92618
(Address of Principal Executive Offices)					(Zip Code)
			(949)	297-7000
Registrant’s telephone number, including area code:
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered pursuant to Section 12(b) of the Act:
Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.001 par value	MASI	The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company			☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Item 2.02. Results of Operations and Financial Condition.

On May 3, 2022, Masimo Corporation (the “Company”) issued a press release announcing its financial results for the quarter ended April 2, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01. Regulation FD Disclosure.

In connection with the Company’s conference call scheduled to be held on May 3, 2022, the Company’s Chief Financial Officer will review supplemental information regarding the Company’s financial results for the quarter ended April 2, 2022. The Company’s supplemental information is furnished as Exhibit 99.2 to this Current Report.

In addition, the Company is making available to investors supplemental financial information for fiscal 2020, fiscal 2021 and the first quarter of fiscal 2022 pursuant to the materials furnished as Exhibit 99.3 to this Current Report, as well as a discussion of non-GAAP measures, adjustments and definitions pursuant to the materials furnished as Exhibit 99.4 to this Current Report.

In accordance with General Instructions B.2 of Form 8-K, the information in Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) The following items are filed as exhibits to the Current Report on Form 8-K.

Exhibit  No.	Description
99.1	Press Release, Dated May 3, 2022, Reporting First Quarter 2022 Financial Results
99.2	Masimo First Quarter 2022 Supplemental Earnings Presentation
99.3	Masimo Supplemental GAAP to Non-GAAP Financial Information
99.4	Masimo GAAP to Non-GAAP Definitions
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Masimo Corporation has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	MASIMO CORPORATION
Date: May 3, 2022	By:	/s/ MICAH YOUNG
		Micah Young
		Executive Vice President & Chief Financial Officer
		(Principal Financial Officer)

EX-99.1

Exhibit 99.1

Masimo Reports First Quarter 2022 Financial Results

First Quarter 2022 Highlights

■ Revenue was $304 million;

■ GAAP net income per diluted share was $0.81; and

■ Non-GAAP net income per diluted share was $0.93.

Irvine, California, May 3, 2022 - Masimo (Nasdaq: MASI) today announced its financial results for the first quarter of 2022, ended April 2, 2022.

First Quarter 2022 Results

Revenue was $304.2 million, which represents 1.7% reported growth and 3.2% growth on a constant currency basis, compared to $299.0 million in the first quarter of 2021. Excluding handheld and fingertip pulse oximeters, shipments of noninvasive technology boards and instruments were 75,700 in the first quarter of 2022.

GAAP operating margin for the first quarter of 2022 was 19.6% compared to 22.0% in the first quarter of 2021. First quarter 2022 non-GAAP operating margin was 22.9% compared to 22.9% in the first quarter of 2021.

For the first quarter of 2022, GAAP net income was $46.6 million, or $0.81 per diluted share, compared to net income of $53.4 million, or $0.92 per diluted share, in the first quarter of 2021. Non-GAAP net income was $53.2 million, or $0.93 per diluted share, compared to net income of $52.1 million, or $0.90 per diluted share, in the first quarter of 2021.

Total cash and cash equivalents were $720.1 million as of April 2, 2022.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said “We experienced strong demand for our products during the quarter while facing some unexpected supply chain challenges. Our actions to address those issues are on-going and we still expect to achieve the growth in our core healthcare business this year that we had anticipated at the beginning of the year. We have now completed our acquisition of Sound United and are deeply engaged in combined efforts to generate some exciting new product launches in consumer health & wellness. Our outlook for 2022 is positive as we are consistently winning new customers for our broad portfolio of breakthrough technologies.”

Full-year 2022 Non-GAAP Financial Guidance

The Company provided the following updated estimates for its full-year 2022 non-GAAP guidance:

	2022 Updated Guidance(1)(2)
(in millions, except percentages and earnings per diluted share)	Non-GAAP
Revenue	$2,000 to $2,060
Gross margin	56.3% to 56.5%
Operating margin	18.3% to 18.7%
Earnings per diluted share	$4.46 to $4.73

______________

(1)    Updated guidance provided May 3, 2022.

(2)    The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition, which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters.

-1-

Included in the consolidated guidance above:

•Core Masimo revenue of $1,340 million to $1,360 million, which includes $17 million of year-over-year currency headwinds; Sound United revenue of $660 million to $700 million from April 11, 2022 through fiscal year end;

•Core Masimo gross margin of 66.5%; Sound United gross margin of 36.3% to 36.7%;

•Core Masimo operating margin of 24.8%; Sound United operating margin of 5.0% to 7.0%;

•Consolidated non-operating expense of $18 million; and

•Consolidated tax rate of 25.3%.

Second Quarter 2022 Non-GAAP Financial Guidance

The Company provided the following estimates for its second quarter 2022 non-GAAP guidance:

	Q2 2022 Guidance(1)
(in millions, except percentages and earnings per diluted share)	Non-GAAP
Revenue	$525 to $555
Gross margin	56.0% to 56.2%
Operating margin	17.9% to 18.5%
Earnings per diluted share	$1.13 to $1.25

______________

(1)    The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition, which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters.

Included in the consolidated guidance above:

•Core Masimo revenue of $345 million to $365 million, which includes $4 million of year-over-year currency headwinds; Sound United revenue of $180 million to $190 million from April 11, 2022 through fiscal quarter end;

•Core Masimo gross margin of 66.8%; Sound United gross margin of 35.3% to 35.7%;

•Core Masimo operating margin of 26.1%; Sound United operating margin of 2.0% to 4.0%;

•Consolidated non-operating expense of $6 million; and

•Consolidated tax rate of 25.4%.

Supplementary Non-GAAP Financial Information

For additional non-GAAP financial details, please visit the Investor Relations section of the Company’s website at www.masimo.com to access Supplementary Financial Information.

Non-GAAP Financial Measures

The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude the items described below. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of the Company’s on-going operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of the Company’s business as determined in accordance with GAAP.

Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.

The Company has presented the following non-GAAP measures to assist investors in understanding the Company’s net operating results on an on-going basis: (i) constant currency revenue growth %, (ii) non-GAAP net income, (iii) non-GAAP (net income) earnings per diluted share and (iv) non-GAAP operating income/margin. These non-GAAP financial measures may also assist investors in making comparisons of the Company’s operating results with those of other companies. Management believes these non-GAAP financial measures are important measures in the evaluation of the Company’s performance and uses these measures to better understand and evaluate our business.

-2-

The non-GAAP financial measures reflect adjustments for the following items:

Constant currency revenue adjustments

Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency revenues, when converted into U.S. Dollars, can vary significantly from period-to-period depending on the average and quarter-end exchange rates during a respective period. We believe that comparing these foreign currency denominated revenues by holding the exchange rates constant with the prior year period is useful to management and investors in evaluating our revenue growth rates on a period-to-period basis. We anticipate that fluctuations in foreign exchange rates and the related constant currency adjustments for calculation of our revenue growth rate will continue to occur in future periods.

Acquired tangible asset amortization

These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired tangible assets and asset valuation step-ups.

Acquired intangible asset amortization

These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements.

Acquisition, integration and related costs

These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments and divestitures, including but not limited to, asset impairments and in-process research and development.

Litigation related expenses, settlements and awards

These transactions represent gains, losses, and other related costs associated with certain litigation matters, which can vary in their characteristics, frequency and significance to our operating results.

Realized and unrealized gains or losses

These transactions represent gains, losses, and other related costs associated with foreign currency denominated transactions and investments. Changes in the underlying currency rates relative to the U.S. Dollar may result in realized and unrealized foreign currency gains and losses between the time these receivables and payables arise and the time that they are settled in cash. Unrealized and realized gains and losses on investments may impact the Company’s reported results of operations for a period. These items are highly variable, difficult to predict and outside the control of those responsible for the underlying operations of the business.

Tax impact of non-GAAP adjustments

In order to reflect the tax effected impact of the non-GAAP adjustments, the Company will adjust the non-GAAP earnings by the approximate tax impact of these adjustments.

Excess tax benefits from stock-based compensation expense

GAAP requires that excess tax benefits recognized on stock-based compensation expense be reflected in our provision for income taxes rather than paid-in capital. As these excess tax benefits may be highly variable from period-to-period, the Company may choose to exclude these tax benefits from non-GAAP earnings to facilitate comparability between periods and with peers.

-3-

First Quarter 2022 Actuals versus First Quarter 2021 Actuals

RECONCILIATION OF GAAP TO NON-GAAP CONSTANT CURRENCY REVENUE(1):
				Three Months Ended
(in thousands, except percentages)				April 2, 2022		April 3, 2021
GAAP revenue				$	304,241	$	299,043
Non-GAAP constant currency adjustments:
	Constant currency F/X adjustments			4,335		N/A
		Total non-GAAP constant currency adjustments		4,335		N/A
			Non-GAAP constant currency revenue	$	308,575	$	299,043

Revenue growth %
	GAAP	1.7	%
	Non-GAAP constant currency	3.2	%

__________________

(1)      May not foot due to rounding.

RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
		Three Months Ended
		April 2, 2022				April 3, 2021
(in thousands, except per diluted share amounts)		$		Per Diluted Share		$		Per Diluted Share
GAAP net income		$	46,595	$	0.81	$	53,383	$	0.92
Non-GAAP adjustments:
	Acquired tangible asset amortization	—		—		141		—
	Acquired intangible asset amortization	1,465		0.03		1,599		0.03
	Acquisition, integration and related costs	3,149		0.05		1,048		0.02
	Litigation related expenses, settlements and awards	5,462		0.10		—		—
	Realized and unrealized gains or losses	801		0.01		799		0.01
	Tax impact of non-GAAP adjustments	(2,522)		(0.04)		(598)		(0.01)
	Excess tax benefits from stock-based compensation expense	(1,739)		(0.03)		(4,302)		(0.07)
	Total non-GAAP adjustments	6,616		0.12		(1,313)		(0.02)
Non-GAAP net income		$	53,211	$	0.93	$	52,070	$	0.90
Weighted average shares outstanding - diluted				57,310				57,901

__________________

(1)      May not foot due to rounding.

-4-

RECONCILIATION OF GAAP TO NON-GAAP OPERATING MARGIN(1):
			Three Months Ended
			April 2, 2022		April 3, 2021
(in thousands, except percentages)			$		$
GAAP operating income/margin			$	59,745	$	65,664
Non-GAAP adjustments:
	Acquired tangible asset amortization		—		141
	Acquired intangible asset amortization		1,465		1,599
	Acquisition, integration and related costs		3,149		1,048
	Litigation related expenses, settlements and awards		5,462		—
		Total non-GAAP adjustments	10,077		2,788
Non-GAAP operating income/margin			$	69,821	$	68,452

GAAP operating income/margin %	19.6	%	22.0	%
Non-GAAP operating income/margin %	22.9	%	22.9	%

__________________

(1)     May not foot due to rounding.

Conference Call:

The conference call to review the results will begin at 1:30 p.m. PT today (4:30 p.m. ET) and will be hosted by Joe Kiani, Chairman and Chief Executive Officer, and Micah Young, Executive Vice President and Chief Financial Officer.

To register for the conference call and receive the dial-in number, please use the link below. Upon registering, each participant will be provided with call details and a registrant ID number.

Conference Call Registration

https://conferencingportals.com/event/nUSpRIEm

A replay of the webcast and conference call will be available shortly after the conclusion of the call and will be archived on the Company’s website.

About Masimo

Masimo (Nasdaq: MASI) is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. Our mission is to improve patient outcomes, reduce the cost of care. Masimo SET® Measure-through Motion and Low Perfusion™ pulse oximetry, introduced in 1995, has been shown in over 100 independent and objective studies to outperform other pulse oximetry technologies. Masimo SET® has also been shown to help clinicians reduce severe retinopathy of prematurity in neonates, improve CCHD screening in newborns,and, when used for continuous monitoring with Masimo Patient SafetyNet™ in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs.Masimo SET® is estimated to be used on more than 200 million patients in leading hospitals and other healthcare settings around the world, and is the primary pulse oximetry at 9 of the top 10 hospitals as ranked in the 2021-22 U.S. News and World Report Best Hospitals Honor Roll. Masimo continues to refine SET® and in 2018, announced that SpO2 accuracy on RD SET® sensors during conditions of motion has been significantly improved, providing clinicians with even greater confidence that the SpO2 values they rely on accurately reflect a patient’s physiological status. In 2005, Masimo introduced rainbow® Pulse CO-Oximetry technology, allowing noninvasive and continuous monitoring of blood constituents that previously could only be measured invasively, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), Pleth Variability Index (PVi®), RPVi™ (rainbow® PVi), and Oxygen Reserve Index (ORi™). In 2013, Masimo introduced the Root® Patient Monitoring and Connectivity Platform, built from the ground up to be as flexible and expandable as possible to facilitate the addition of other Masimo and third-party monitoring technologies; key Masimo additions include Next Generation SedLine® Brain Function Monitoring, O3® Regional Oximetry, and ISA™ Capnography with NomoLine® sampling lines. Masimo’s family of continuous and spot-check monitoring Pulse CO-Oximeters® includes devices designed for use in a variety of clinical and non-clinical scenarios, including tetherless, wearable technology, such as Radius-7® and Radius PPG™, portable devices like Rad-67®, fingertip pulse oximeters like MightySat® Rx, and devices available for use both in the hospital and at home, such as Rad-97®. Masimo hospital automation and connectivity solutions are centered around the Masimo Hospital Automation™ platform, and include Iris® Gateway, iSirona™, Patient SafetyNet, Replica™, Halo ION™, UniView®, UniView :60™, and Masimo SafetyNet™. Additional information about Masimo and its products may be found at www.masimo.com. Published clinical studies on Masimo products can be found at www.masimo.com/evidence/featured-studies/feature/.

ORi and RPVi have not received FDA 510(k) clearance and are not available for sale in the United States. The use of the trademark Patient SafetyNet is under license from University HealthSystem Consortium.

-5-

Forward-Looking Statements

All statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our expectations for second quarter 2022 and full year 2022 financial guidance; the expectation that measures taken to resolve production issues will be effective; our long-term outlook; demand for our products; anticipated revenue and earnings growth; our financial condition, results of operations and business generally; anticipated benefits from our acquisition of Sound United; expectations regarding our ability to design and deliver innovative new noninvasive technologies and reduce the cost of care; and demand for our technologies. These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to: our dependence on Masimo SET® and Masimo rainbow SET™ products and technologies for substantially all of our revenue; any failure in protecting our intellectual property exposure to competitors’ assertions of intellectual property claims; the highly competitive nature of the markets in which we sell our products and technologies; any failure to continue developing innovative products and technologies; the lack of acceptance of any of our current or future products and technologies; our ability to successfully integrate Sound United’s brands into our business; obtaining regulatory approval of our current and future products and technologies; the risk that the implementation of our international realignment will not continue to produce anticipated operational and financial benefits, including a continued lower effective tax rate; the loss of our customers; the failure to retain and recruit senior management; product liability claims exposure; a failure to obtain expected returns from the amount of intangible assets we have recorded; the maintenance of our brands; the amount and type of equity awards that we may grant to employees and service providers in the future; our ongoing litigation and related matters; risks related to global economic and marketplace uncertainties related to the impact of the COVID-19 pandemic; and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), including our most recent Form 10-K and Form 10-Q, all of which you may obtain for free on the SEC’s website at www.sec.gov. Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

# # #

Investor Contact: Eli Kammerman	Media Contact: Evan Lamb
(949) 297-7077	(949) 396-3376
ekammerman@masimo.com	elamb@masimo.com

Masimo, SET, Signal Extraction Technology, Improving Patient Outcome and Reducing Cost of Care... by Taking Noninvasive Monitoring to New Sites and Applications, rainbow, SpHb, SpOC, SpCO, SpMet, PVI and ORI are trademarks or registered trademarks of Masimo Corporation.

-6-

MASIMO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in thousands)
	April 2, 2022		January 1, 2022
ASSETS
Current assets
Cash and cash equivalents	$	720,108	$	745,250
Accounts receivable, net of allowance for credit losses	199,876		200,765
Inventories	213,485		201,370
Other current assets	91,273		91,027
Total current assets	1,224,742		1,238,412
Lease receivable, non-current	73,922		73,688
Deferred costs and other contract assets	33,033		28,093
Property and equipment, net	299,544		272,793
Intangible assets, net	72,278		72,502
Goodwill	99,328		100,334
Deferred tax assets	51,328		52,607
Other non-current assets	54,621		48,581
Total assets	$	1,908,796	$	1,887,010
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	87,453	$	75,627
Accrued compensation	49,930		70,835
Deferred revenue and other contract liabilities, current	48,735		50,877
Other current liabilities	68,193		70,397
Total current liabilities	254,311		267,736
Other non-current liabilities	72,347		69,029
Total liabilities	326,658		336,765
Commitments and contingencies
Stockholders’ equity
Common stock	56		55
Treasury stock	(767,655)		(767,655)
Additional paid-in capital	740,735		752,513
Accumulated other comprehensive loss	(8,455)		(5,530)
Retained earnings	1,617,457		1,570,862
Total stockholders’ equity	1,582,138		1,550,245
Total liabilities and stockholders’ equity	$	1,908,796	$	1,887,010

-7-

MASIMO CORPORATION  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts)
	Three Months Ended
	April 2, 2022		April 3, 2021
Revenue	$	304,241	$	299,043
Cost of goods sold	99,477		102,168
Gross profit	204,764		196,875
Operating expenses:
Selling, general and administrative	108,900		96,700
Research and development	36,119		34,511
Total operating expenses	145,019		131,211
Operating income	59,745		65,664
Non-operating loss	(608)		(737)
Income before provision for income taxes	59,137		64,927
Provision for income taxes	12,542		11,544
Net income	$	46,595	$	53,383
Net income per share:
Basic	$	0.84	$	0.97
Diluted	$	0.81	$	0.92
Weighted-average shares used in per share calculations:
Basic	55,420		55,200
Diluted	57,310		57,901

The following table presents details of the stock-based compensation expense that is included in each functional line item in the condensed consolidated statements of operations (in thousands):

	Three Months Ended
	April 2, 2022		April 3, 2021
Cost of goods sold	$	236	$	205
Selling, general and administrative	7,339		9,412
Research and development	3,294		3,091
Total	$	10,869	$	12,708

-8-

MASIMO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
	Three Months Ended
	April 2, 2022		April 3, 2021
Cash flows from operating activities:
Net income	$	46,595	$	53,383
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	9,134		8,493
Stock-based compensation	10,869		12,708
Loss on disposal of equipment, intangibles and other assets	215		29
Provision for credit losses	495		49
Changes in operating assets and liabilities:
Decrease in accounts receivable	402		6,823
Increase in lease receivable, net	(236)		(919)
Increase in inventories	(12,357)		(915)
(Increase) decrease in other current assets	(1,432)		16,326
Increase in deferred costs and other contract assets	(14,889)		(1,307)
Increase in other non-current assets	(50)		(77)
Increase (decrease) in accounts payable	9,179		(599)
Decrease in accrued compensation	(20,698)		(23,343)
Decrease in accrued liabilities	(3,536)		(5,813)
Increase (decrease) in income tax payable	1,312		(303)
Decrease in deferred revenue and other contract-related liabilities	(1,781)		(5,308)
(Decrease) increase in other non-current liabilities	(64)		33
Net cash provided by operating activities	23,158		59,260
Cash flows from investing activities:
Purchases of property and equipment, net	(20,479)		(8,903)
Increase in intangible assets	(2,460)		(1,572)
Other strategic investing activities	(850)		—
Net cash used in investing activities	(23,789)		(10,475)
Cash flows from financing activities:
Proceeds from issuance of common stock	3,153		5,756
Payroll tax withholdings on behalf of employees for vested equity awards	(25,376)		(16,691)
Repurchases of common stock	—		(128,917)
Net cash used in financing activities	(22,223)		(139,852)
Effect of foreign currency exchange rates on cash	(2,505)		279
Net decrease in cash, cash equivalents and restricted cash	(25,359)		(90,788)
Cash, cash equivalents and restricted cash at beginning of period	748,378		645,004
Cash, cash equivalents and restricted cash at end of period	$	723,019	$	554,216

-9-

EX-99.2

Masimo Earnings First Quarter 2022

These presentations contain forward-looking statements within the meaning of federal securities laws, including, among others, statements about our expectations, plans, strategies or prospects. We generally use the words “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “estimate,” “project,” “assume,” “guide,” “target,” “forecast,” “see,” “seek,” “can,” “should,” “could,” “would,” “intend,” “predict,” “potential,” “strategy,” “is confident that,” “future,” “opportunity,” “work toward,” and similar expressions to identify forward- looking statements. All statements other than statements of historical or current fact are, or may be deemed to be, forward-looking statements. Such statements are based upon the current beliefs, expectations and assumptions of management and are subject to significant risks, uncertainties and changes in circumstances that could cause actual results to differ materially from the forward-looking statements. Forward-looking statements speak only as of the date they are made, and we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers of these presentations are cautioned not to rely on these forward-looking statements, since there can be no assurance that these forward-looking statements will prove to be accurate. This cautionary statement is applicable to all forward-looking statements contained in these presentations. The risks and uncertainties that may cause actual results to differ materially from Masimo’s current expectations are more fully described in Masimo’s reports filed with the U.S. Securities and Exchange Commission (SEC), including our most recent Form 10-K and Form 10-Q. Copies of these filings, as well as subsequent filings, are available online at www.sec.gov, www.masimo.com or upon request. The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude certain items that are more fully described in the Appendix. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of the Company’s on-going core operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of the Company’s business as determined in accordance with GAAP. Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies. The Company has presented the following non-GAAP financial measures to assist investors in understanding the Company’s core net operating results on an on-going basis: (i) constant currency revenue growth %, (ii) non-GAAP gross profit/margin %, (iii) non-GAAP SG&A expense, (iv) non-GAAP R&D expense, (v) non-GAAP litigation settlements and (awards), (vi) non-GAAP operating expense %, (vii) non-GAAP operating income/margin %, (viii) non-GAAP earnings per diluted share and (ix) adjusted free cash flow. These non-GAAP financial measures may also assist investors in making comparisons of the company’s core operating results with those of other companies. Management believes these non-GAAP financial measures are important in the evaluation of the Company’s performance and uses these measures to better understand and evaluate our business. For additional financial details, including GAAP to non-GAAP reconciliations, please visit the Investor Relations section of the Company’s website at www.masimo.com to access Supplementary Financial Information. The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters. Safe Harbor Statement

Revenue of $304 million, which represents 2% reported growth and 3% constant currency growth. Shipped 75,700 technology boards and instruments during the quarter; and Shipped 2.3 million technology boards and instruments over the last 10 years, increasing 7% over the prior year period. Business Highlights Revenue Performance Non-GAAP gross margin of 67.5%, increasing 140 bps over the prior year period; Non-GAAP EPS of $0.93, increasing 3% over the prior year period. Financial Highlights First Quarter 2022 Highlights (1) (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information.

Non-GAAP Operating Profit and Margin % ($ in millions) Non-GAAP EPS and Growth Rate Total Revenue and Growth Rate ($ in millions) Non-GAAP Gross Profit and Margin % ($ in millions) (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. First Quarter 2022 Performance (1)

First Quarter 2022 Actual vs. Prior Year | Non-GAAP (1) (1) Non-GAAP measures shown have been adjusted for certain items that are fully described in the Appendix. Please visit the Investor Relations section of the Company’s website at www.masimo.com to access additional information related to our Non-GAAP adjustments and Supplementary Financial Information. Total Revenue $304 $299 2% Total Gross Profit 205 198 4% Total Operating Profit 70 68 2% Other Income (Expense) 0 0 NM Income Tax Provision 17 16 2% Net Income $53 $52 2% WASO 57.3 57.9 -1% Earnings Per Share $0.93 $0.90 3% (% of revenue, except tax rate) Total Gross Margin 67.5% 66.1% 140 bps Total Operating Margin 22.9% 22.9% 0 bps Tax Rate 24.0% 24.0% 0 bps Q1 '22 Actual vs. Prior Year Q1 '21 Actual ($ in millions; except EPS)

Context for 2022 Outlook • In Q1 2022, we encountered shortages of critical components in combination with other supply chain issues, including limited labor availability and freight carrier delays, which led to lower-than-expected sales in the first quarter. During the period we had strong customer demand, and had we been able to build and ship what was ordered in the first quarter, our revenue and earnings would have exceeded expectations. We believe that a large part of the shortfall will be made up in the second quarter. • On April 11, 2022, we closed our acquisition of Sound United and we will report consolidated financial results beginning in Q2 2022. • In addition, foreign currency headwinds have further increased due to the strengthening of the U.S. dollar against most major currencies. • Based on the above circumstances, we are providing 2022 guidance ranges for the second quarter and full year, which are shown on the following slides.

Second Quarter 2022 Guidance as of May 3, 2022 (1) $1.13 to $1.25 per share Revenue Non-GAAP Gross Margin Non-GAAP Operating Margin Non-GAAP EPS ~18%~56% Core Masimo revenue of $345 to $365 million, which includes $4 million of year-over-year currency headwinds; AND Sound United revenue of $180 to $190 million from April 11, 2022 through fiscal quarter end. Core Masimo gross margin of ~67%; AND Sound United gross margin of 35% to 36%. Core Masimo operating margin of ~26%; AND Sound United operating margin of 2% to 4%. (1) The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters. $525 to $555 million

Low High Low High Core Masimo 345 365 305 13% 20% Sound United 180 190 N/A N/A N/A Total Revenue $525 $555 $305 72% 82% Core Masimo 230 244 197 17% 23% Sound United 64 68 N/A N/A N/A Total Gross Profit 294 312 197 49% 58% Core Masimo 90 95 71 26% 34% Sound United 4 8 N/A N/A N/A Total Operating Profit 94 103 71 31% 44% Other Income (Expense) (6) (6) 0 NM NM Income Tax Provision 22 25 18 27% 40% Net Income $65 $72 $54 21% 34% WASO 58.0 58.0 57.4 1% 1% Earnings Per Share $1.13 $1.25 $0.94 20% 32% (% of revenue, except tax rate) Core Masimo 66.8% 66.8% 64.7% 210 bps 210 bps Sound United 35.3% 35.7% N/A N/A N/A Total Gross Margin 56.0% 56.2% 64.7% -870 bps -850 bps Core Masimo 26.1% 26.1% 23.4% 270 bps 270 bps Sound United 2.0% 4.0% N/A N/A N/A Total Operating Margin 17.9% 18.5% 23.4% -550 bps -490 bps Tax Rate 25.4% 25.4% 24.5% 90 bps 90 bps ($ in millions; except EPS) Q2 '22 Guidance Q2 '21 Actual vs. Prior Year Second Quarter 2022 Guidance vs. Prior Year | Non-GAAP (1) (1) The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters.

Full Year 2022 Guidance as of May 3, 2022 (1) $2,000 to $2,060 million $4.46 to $4.73 per share Revenue Non-GAAP Gross Margin Non-GAAP Operating Margin Non-GAAP EPS 18% to 19% ~56% Core Masimo revenue of $1,340 to $1,360 million on a reported basis and $1,357 to $1,377 million on a constant currency basis (vs. prior constant currency guidance of $1,357 million); AND Sound United revenue of $660 to $700 million from April 11, 2022 through fiscal year end. Core Masimo gross margin of 66.5%; AND Sound United gross margin of 36% to 37%. Core Masimo operating margin of 24.8%; AND Sound United operating margin of 5% to 7%. (1) The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters.

Full Year 2022 Guidance vs. Prior Year | Non-GAAP (1) (1) The Company is unable to present a quantitative reconciliation to the most directly comparable GAAP measures for forward-looking non-GAAP measures without unreasonable effort due to the recent Sound United acquisition which is pending completion of the purchase price allocation, including the fair values associated with acquired assets and assumed liabilities and tax contingency matters. Low High Low High Core Masimo 1,340 1,360 1,239 8% 10% Sound United 660 700 N/A N/A N/A Total Revenue $2,000 $2,060 $1,239 61% 66% Core Masimo 891 904 816 9% 11% Sound United 239 257 N/A N/A N/A Total Gross Profit 1,130 1,161 816 39% 42% Core Masimo 332 337 295 13% 14% Sound United 33 49 N/A N/A N/A Total Operating Profit 365 386 295 24% 31% Other Income (Expense) (18) (18) 0 NM NM Income Tax Provision 88 93 65 35% 43% Net Income $260 $275 $230 13% 19% WASO 58.2 58.2 57.7 1% 1% Earnings Per Share $4.46 $4.73 $3.99 12% 18% (% of revenue, except tax rate) Core Masimo 66.5% 66.5% 65.8% 70 bps 70 bps Sound United 36.3% 36.7% N/A N/A N/A Total Gross Margin 56.5% 56.3% 65.8% -930 bps -950 bps Core Masimo 24.8% 24.8% 23.8% 100 bps 100 bps Sound United 5.0% 7.0% N/A N/A N/A Total Operating Margin 18.3% 18.7% 23.8% -550 bps -510 bps Tax Rate 25.3% 25.3% 22.0% 330 bps 330 bps ($ in millions; except EPS) Updated FY '22 Guidance FY '21 Actual vs. Prior Year

Commercial & DTC Product Co-Development Core Parameters & Therapeutics Hospital Automation Telehealth and Opioid SafetyNet Smartwatch Undisclosed Hearing Enhancement Undisclosed On-The-Go At Home 2025 Market Size(1) $5B+ $2B+ $5B+ $50B+ TBD $5B+ TBD $85B+ $30B+ CAGR(1) MSD DD DD DD N/A DD N/A DD MSD Core Healthcare Healthcare + Consumer Market Opportunity $12B+ $182B+ (1) Market Estimates based upon internal data & Futuresource. Expanding Into New Large and Growing Markets Strategic Synergies

Appendix GAAP to Non-GAAP Reconciliations

GAAP to Non-GAAP Reconciliations (Unaudited; in millions, except percentages and per share data) (1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 GAAP revenue $269.6 $301.0 $278.1 $295.1 $299.0 $305.1 $307.4 $327.6 $304.2 Constant currency adjustments (2) N/A N/A N/A N/A N/A N/A N/A N/A $4.3 Non-GAAP revenue $269.6 $301.0 $278.1 $295.1 $299.0 $305.1 $307.4 $327.6 $308.6 GAAP gross profit $185.6 $191.6 $178.9 $186.9 $196.9 $192.9 $203.7 $214.9 $204.8 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.2 $0.4 $0.3 $0.2 $0.6 $0.6 $0.6 $0.6 $0.6 Acquisition, integration and related costs $0.2 $0.1 $0.1 $0.2 $0.1 $0.5 $0.0 $0.3 $0.0 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.0 $0.0 Non-GAAP gross profit $186.0 $192.2 $179.3 $187.4 $197.7 $197.5 $204.5 $215.9 $205.4 Non-GAAP gross margin % (3) 69.0% 63.9% 64.5% 63.5% 66.1% 64.7% 66.5% 65.9% 67.5% GAAP selling, general and administrative expenses $89.9 $98.5 $90.4 $90.3 $96.7 $93.8 $100.6 $104.1 $108.9 Acquired intangible asset amortization ($0.5) ($0.7) ($0.6) ($1.4) ($1.0) ($0.9) ($0.9) ($0.9) ($0.9) Acquisition, integration and related costs ($1.6) $0.0 ($0.2) ($1.3) ($1.0) ($0.4) ($0.3) ($0.5) ($3.1) Litigation related expenses and settlements $0.0 $0.0 $0.0 $0.0 $0.0 ($0.4) ($1.2) ($3.9) ($5.5) Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.5) $0.0 Non-GAAP selling, general and administrative expenses $87.8 $97.8 $89.5 $87.6 $94.7 $92.2 $98.3 $98.3 $99.5 GAAP research and development expenses $27.2 $30.9 $28.9 $31.7 $34.5 $33.9 $35.4 $33.4 $36.1 Acquired intangible asset amortization $0.0 $0.0 $0.0 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 Acquisition, integration and related costs ($0.0) ($0.0) ($0.0) ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 Non-GAAP research and development expenses $27.2 $30.9 $28.8 $31.6 $34.5 $33.9 $35.4 $33.4 $36.1 GAAP litigation settlements and awards ($0.5) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Litigation related expenses and settlements $0.5 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Non-GAAP litigation settlements and awards $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 GAAP operating expenses $116.6 $129.4 $119.2 $122.0 $131.2 $127.8 $136.1 $137.5 $145.0 Acquired intangible asset amortization ($0.5) ($0.7) ($0.6) ($1.4) ($1.0) ($0.9) ($0.9) ($0.9) ($0.9) Acquisition, integration and related costs ($1.6) $0.0 ($0.3) ($1.4) ($1.0) ($0.4) ($0.3) ($0.5) ($3.1) Litigation related expenses and settlements $0.5 ($0.0) $0.0 $0.0 $0.0 ($0.4) ($1.2) ($3.9) ($5.5) Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.5) $0.0 Non-GAAP operating expenses $115.0 $128.6 $118.4 $119.2 $129.2 $126.1 $133.7 $131.7 $135.6 GAAP operating profit $69.0 $62.2 $59.7 $64.9 $65.7 $65.1 $67.6 $77.4 $59.7 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.7 $1.2 $0.9 $1.7 $1.6 $1.5 $1.5 $1.5 $1.5 Acquisition, integration and related costs $1.8 $0.1 $0.4 $1.5 $1.0 $0.9 $0.3 $0.8 $3.1 Litigation related expenses and settlements ($0.5) $0.0 $0.0 $0.0 $0.0 $0.4 $1.2 $3.9 $5.5 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.5 $0.0 Non-GAAP operating profit $71.0 $63.6 $61.0 $68.1 $68.5 $71.4 $70.8 $84.2 $69.8 Non-GAAP operating margin % (3) 26.3% 21.1% 21.9% 23.1% 22.9% 23.4% 23.0% 25.7% 22.9%

GAAP to Non-GAAP Reconciliations (Unaudited; in millions, except percentages and per share data) (1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 GAAP non-operating income (expense) $3.3 $1.4 $1.4 $1.8 ($0.7) $0.1 ($0.1) ($0.7) ($0.6) Realized and unrealized gains or losses ($0.6) ($0.0) ($0.6) ($1.4) $0.8 $0.1 $0.2 $0.8 $0.8 Non-GAAP non-operating income (expense) $2.8 $1.4 $0.7 $0.4 $0.1 $0.1 $0.2 $0.1 $0.2 GAAP provision for income taxes $7.9 $7.9 $11.7 ($3.9) $11.5 $15.0 $9.8 $8.4 $12.5 Tax impact of non-GAAP adjustments $0.3 $0.4 $0.2 $5.2 $0.6 $1.2 $0.5 $1.4 $2.5 Excess tax benefits from stock-based compensation expense $9.6 $7.5 $3.1 $10.0 $4.3 $1.3 $6.4 $4.4 $1.7 Non-GAAP provision for income taxes $17.8 $15.7 $14.9 $11.3 $16.4 $17.5 $16.7 $14.2 $16.8 GAAP net income (loss) $64.5 $55.8 $49.4 $70.6 $53.4 $50.2 $57.8 $68.3 $46.6 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.7 $1.2 $0.9 $1.7 $1.6 $1.5 $1.5 $1.5 $1.5 Acquisition, integration and related costs $1.8 $0.1 $0.4 $1.5 $1.0 $0.9 $0.3 $0.8 $3.1 Litigation related expenses and settlements ($0.5) $0.0 $0.0 $0.0 $0.0 $0.4 $1.2 $3.9 $5.5 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.5 $0.0 Realized and unrealized gains or losses ($0.6) ($0.0) ($0.6) ($1.4) $0.8 $0.1 $0.2 $0.8 $0.8 Tax impact of non-GAAP adjustments ($0.3) ($0.4) ($0.2) ($5.2) ($0.6) ($1.2) ($0.5) ($1.4) ($2.5) Excess tax benefits from stock-based compensation expense ($9.6) ($7.5) ($3.1) ($10.0) ($4.3) ($1.3) ($6.4) ($4.4) ($1.7) Non-GAAP net income (loss) $55.9 $49.3 $46.8 $57.3 $52.1 $54.0 $54.3 $70.1 $53.2 GAAP net income (loss) per share $1.12 $0.96 $0.85 $1.21 $0.92 $0.88 $1.00 $1.18 $0.81 Acquired tangible asset amortization 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Acquired intangible asset amortization 0.01 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 Acquisition, integration and related costs 0.03 0.00 0.01 0.03 0.02 0.02 0.01 0.01 0.05 Litigation related expenses and settlements (0.01) 0.00 0.00 0.00 0.00 0.01 0.02 0.07 0.10 Other adjustments 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.01 0.00 Realized and unrealized gains or losses (0.01) (0.00) (0.01) (0.02) 0.01 0.00 0.00 0.01 0.01 Tax impact of non-GAAP adjustments (0.01) (0.01) (0.00) (0.09) (0.01) (0.02) (0.01) (0.02) (0.04) Excess tax benefits from stock-based compensation expense (0.17) (0.13) (0.05) (0.17) (0.07) (0.02) (0.11) (0.08) (0.03) Non-GAAP net income (loss) per share $0.97 $0.85 $0.80 $0.98 $0.90 $0.94 $0.94 $1.21 $0.93 Weighted average shares outstanding - Diluted 57.6 58.2 58.3 58.2 57.9 57.4 57.7 57.8 57.3 Footnotes: (3) Calculated as a percentage of GAAP revenue. (2) Constant currency adjustments are intended to reflect current year revenue at prior year foreign exchange rates for comparison purposes. (1) Totals may not foot due to rounding. Quarterly reported amounts may vary from amounts previously reported due to rounding conventions.

The non-GAAP financial measures reflect adjustments for the following items, as well as the related income tax effects thereof, as these items may impact period-to-period comparability; furthermore, management also believes that these items are not indicative of the Company’s on-going core operating performance: Constant currency revenue adjustments: Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency revenues, when converted into U.S. Dollars, can vary significantly from period-to-period depending on the average and quarter-end exchange rates during a respective period. We believe that comparing these foreign currency denominated revenues by holding the exchange rates constant with the prior year period is useful to management and investors in evaluating our revenue growth rates on a period-to-period basis. We anticipate that fluctuations in foreign exchange rates and the related constant currency adjustments for calculation of our revenue growth rate will continue to occur in future periods. Acquisition, integration and related costs: These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments and divestitures, including but not limited to, asset impairments and in-process research and development. Acquired tangible asset amortization: These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired tangible assets and asset valuation step-ups. Acquired intangible asset amortization: These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements. Business transition and related costs: These transactions represent gains, losses, and other related costs associated with business transition plans. These items may include but are not limited to severance, relocation, consulting, leasehold exit costs, asset impairment, and other related costs to rationalize our operational footprint and optimize business results. Litigation related expenses, settlements and awards: These transactions represent gains, losses, and other related costs associated with certain litigation matters, which can vary in their characteristics, frequency and significance to our operating results. Other adjustments: In the event there are gains, losses and other adjustments which impact period-to-period comparability and do not represent the underlying ongoing results of the business, the Company may choose to exclude these from non- GAAP earnings. Realized and unrealized gains or losses: These transactions represent gains, losses, and other related costs associated with foreign currency denominated transactions and investments. Changes in the underlying currency rates relative to the U.S. Dollar may result in realized and unrealized foreign currency gains and losses between the time these receivables and payables arise and the time that they are settled in cash. Unrealized and realized gains and losses on investments may impact the Company’s reported results of operations for a period. These items are highly variable, difficult to predict and outside the control of those responsible for the underlying operations of the business. Financing related adjustments: The Company may enter into various financial arrangements whereby costs are incurred and certain instrument features are valued and expensed accordingly but are not necessarily indicative of the on-going cash flow generation of the Company and therefore excludes these costs from non-GAAP earnings. For GAAP earnings per diluted share purposes, the Company cannot reflect the anti-dilutive impact, if applicable, in its diluted shares calculations. However, the Company believes that reflecting the anti-dilutive impact of these instruments in non-GAAP earnings per diluted share provides management and investors with useful information in evaluating the financial performance of the Company on a per share basis. Tax impact of non-GAAP adjustments: In order to reflect the tax effected impact of the non-GAAP adjustments, the Company will adjust the non-GAAP earnings by the approximate tax impact of these adjustments. Tax events: This represents certain tax events that impact period over period comparability and do not represent the underlying ongoing results of the core operations. The Company may choose to exclude these tax events from non-GAAP earnings. Excess tax benefits from stock-based compensation expense: GAAP requires that excess tax benefits recognized on stock-based compensation expense be reflected in our provision for income taxes rather than paid-in capital. As these excess tax benefits may be highly variable from period-to-period, the Company may choose to exclude these tax benefits from non-GAAP earnings to facilitate comparability between periods and with peers. Adjusted EBITDA: Represents earnings before non-operating income/expense, taxes, depreciation and amortization, as adjusted for the applicable non-GAAP adjustments previously described, and further excluding non-cash stock-based compensation expense. Adjusted Free Cash Flow: Represents free cash flow (cash flow from operations less cash used in the purchase of property, plant and equipment) adjusted for the impact of cash receipts or payments relating to certain previously described non-GAAP adjustments, which may impact period-to-period comparability. Description of Non-GAAP Adjustments

EX-99.3

Masimo Corporation Reconciliation Between GAAP and Non-GAAP Financial Measures (Unaudited; in millions, except percentages and per share data) (1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 GAAP revenue $269.6 $301.0 $278.1 $295.1 $299.0 $305.1 $307.4 $327.6 $304.2 Constant currency adjustments (2) N/A N/A N/A N/A N/A N/A N/A N/A $4.3 Non-GAAP revenue $269.6 $301.0 $278.1 $295.1 $299.0 $305.1 $307.4 $327.6 $308.6 GAAP gross profit $185.6 $191.6 $178.9 $186.9 $196.9 $192.9 $203.7 $214.9 $204.8 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.2 $0.4 $0.3 $0.2 $0.6 $0.6 $0.6 $0.6 $0.6 Acquisition, integration and related costs $0.2 $0.1 $0.1 $0.2 $0.1 $0.5 $0.0 $0.3 $0.0 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.0 $0.0 Non-GAAP gross profit $186.0 $192.2 $179.3 $187.4 $197.7 $197.5 $204.5 $215.9 $205.4 Non-GAAP gross margin % (3) 69.0% 63.9% 64.5% 63.5% 66.1% 64.7% 66.5% 65.9% 67.5% GAAP selling, general and administrative expenses $89.9 $98.5 $90.4 $90.3 $96.7 $93.8 $100.6 $104.1 $108.9 Acquired intangible asset amortization ($0.5) ($0.7) ($0.6) ($1.4) ($1.0) ($0.9) ($0.9) ($0.9) ($0.9) Acquisition, integration and related costs ($1.6) $0.0 ($0.2) ($1.3) ($1.0) ($0.4) ($0.3) ($0.5) ($3.1) Litigation related expenses and settlements $0.0 $0.0 $0.0 $0.0 $0.0 ($0.4) ($1.2) ($3.9) ($5.5) Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.5) $0.0 Non-GAAP selling, general and administrative expenses $87.8 $97.8 $89.5 $87.6 $94.7 $92.2 $98.3 $98.3 $99.5 GAAP research and development expenses $27.2 $30.9 $28.9 $31.7 $34.5 $33.9 $35.4 $33.4 $36.1 Acquired intangible asset amortization $0.0 $0.0 $0.0 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 Acquisition, integration and related costs ($0.0) ($0.0) ($0.0) ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 Non-GAAP research and development expenses $27.2 $30.9 $28.8 $31.6 $34.5 $33.9 $35.4 $33.4 $36.1 GAAP litigation settlements and awards ($0.5) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Litigation related expenses and settlements $0.5 ($0.0) $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Non-GAAP litigation settlements and awards $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 GAAP operating expenses $116.6 $129.4 $119.2 $122.0 $131.2 $127.8 $136.1 $137.5 $145.0 Acquired intangible asset amortization ($0.5) ($0.7) ($0.6) ($1.4) ($1.0) ($0.9) ($0.9) ($0.9) ($0.9) Acquisition, integration and related costs ($1.6) $0.0 ($0.3) ($1.4) ($1.0) ($0.4) ($0.3) ($0.5) ($3.1) Litigation related expenses and settlements $0.5 ($0.0) $0.0 $0.0 $0.0 ($0.4) ($1.2) ($3.9) ($5.5) Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 ($0.5) $0.0 Non-GAAP operating expenses $115.0 $128.6 $118.4 $119.2 $129.2 $126.1 $133.7 $131.7 $135.6 GAAP operating profit $69.0 $62.2 $59.7 $64.9 $65.7 $65.1 $67.6 $77.4 $59.7 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.7 $1.2 $0.9 $1.7 $1.6 $1.5 $1.5 $1.5 $1.5 Acquisition, integration and related costs $1.8 $0.1 $0.4 $1.5 $1.0 $0.9 $0.3 $0.8 $3.1 Litigation related expenses and settlements ($0.5) $0.0 $0.0 $0.0 $0.0 $0.4 $1.2 $3.9 $5.5 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.5 $0.0 Non-GAAP operating profit $71.0 $63.6 $61.0 $68.1 $68.5 $71.4 $70.8 $84.2 $69.8 Non-GAAP operating margin % (3) 26.3% 21.1% 21.9% 23.1% 22.9% 23.4% 23.0% 25.7% 22.9%

Masimo Corporation Reconciliation Between GAAP and Non-GAAP Financial Measures (Unaudited; in millions, except percentages and per share data) (1) Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 GAAP non-operating income (expense) $3.3 $1.4 $1.4 $1.8 ($0.7) $0.1 ($0.1) ($0.7) ($0.6) Realized and unrealized gains or losses ($0.6) ($0.0) ($0.6) ($1.4) $0.8 $0.1 $0.2 $0.8 $0.8 Non-GAAP non-operating income (expense) $2.8 $1.4 $0.7 $0.4 $0.1 $0.1 $0.2 $0.1 $0.2 GAAP provision for income taxes $7.9 $7.9 $11.7 ($3.9) $11.5 $15.0 $9.8 $8.4 $12.5 Tax impact of non-GAAP adjustments $0.3 $0.4 $0.2 $5.2 $0.6 $1.2 $0.5 $1.4 $2.5 Excess tax benefits from stock-based compensation expense $9.6 $7.5 $3.1 $10.0 $4.3 $1.3 $6.4 $4.4 $1.7 Non-GAAP provision for income taxes $17.8 $15.7 $14.9 $11.3 $16.4 $17.5 $16.7 $14.2 $16.8 GAAP net income (loss) $64.5 $55.8 $49.4 $70.6 $53.4 $50.2 $57.8 $68.3 $46.6 Acquired tangible asset amortization $0.0 $0.0 $0.0 $0.0 $0.1 $0.1 $0.1 $0.1 $0.0 Acquired intangible asset amortization $0.7 $1.2 $0.9 $1.7 $1.6 $1.5 $1.5 $1.5 $1.5 Acquisition, integration and related costs $1.8 $0.1 $0.4 $1.5 $1.0 $0.9 $0.3 $0.8 $3.1 Litigation related expenses and settlements ($0.5) $0.0 $0.0 $0.0 $0.0 $0.4 $1.2 $3.9 $5.5 Other adjustments $0.0 $0.0 $0.0 $0.0 $0.0 $3.4 $0.0 $0.5 $0.0 Realized and unrealized gains or losses ($0.6) ($0.0) ($0.6) ($1.4) $0.8 $0.1 $0.2 $0.8 $0.8 Tax impact of non-GAAP adjustments ($0.3) ($0.4) ($0.2) ($5.2) ($0.6) ($1.2) ($0.5) ($1.4) ($2.5) Excess tax benefits from stock-based compensation expense ($9.6) ($7.5) ($3.1) ($10.0) ($4.3) ($1.3) ($6.4) ($4.4) ($1.7) Non-GAAP net income (loss) $55.9 $49.3 $46.8 $57.3 $52.1 $54.0 $54.3 $70.1 $53.2 GAAP net income (loss) per share $1.12 $0.96 $0.85 $1.21 $0.92 $0.88 $1.00 $1.18 $0.81 Acquired tangible asset amortization 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Acquired intangible asset amortization 0.01 0.02 0.02 0.03 0.03 0.03 0.03 0.03 0.03 Acquisition, integration and related costs 0.03 0.00 0.01 0.03 0.02 0.02 0.01 0.01 0.05 Litigation related expenses and settlements (0.01) 0.00 0.00 0.00 0.00 0.01 0.02 0.07 0.10 Other adjustments 0.00 0.00 0.00 0.00 0.00 0.06 0.00 0.01 0.00 Realized and unrealized gains or losses (0.01) (0.00) (0.01) (0.02) 0.01 0.00 0.00 0.01 0.01 Tax impact of non-GAAP adjustments (0.01) (0.01) (0.00) (0.09) (0.01) (0.02) (0.01) (0.02) (0.04) Excess tax benefits from stock-based compensation expense (0.17) (0.13) (0.05) (0.17) (0.07) (0.02) (0.11) (0.08) (0.03) Non-GAAP net income (loss) per share $0.97 $0.85 $0.80 $0.98 $0.90 $0.94 $0.94 $1.21 $0.93 Weighted average shares outstanding - Diluted 57.6 58.2 58.3 58.2 57.9 57.4 57.7 57.8 57.3 Footnotes: (3) Calculated as a percentage of GAAP revenue. (2) Constant currency adjustments are intended to reflect current year revenue at prior year foreign exchange rates for comparison purposes. (1) Totals may not foot due to rounding. Quarterly reported amounts may vary from amounts previously reported due to rounding conventions.

EX-99.4

Non-GAAP Measures, Adjustments and

Definitions

Updated May 3, 2022

-1-

Forward-Looking Statements

Masimo Corporation (“Masimo”, “MASI”, or the “Company”) cautions you that statements included in this document that are not a description of historical facts are forward-looking statements that involve risks, uncertainties, assumptions and other factors which, if they do not materialize or prove correct, could cause the Company’s results to differ materially and adversely from historical results or those expressed or implied by such forward-looking statements.

Further information on Masimo’s disclaimer and forward-looking statements and the potential risks and uncertainties that could cause actual results to differ materially are more fully described in the Company’s press releases and periodic filings with the Securities and Exchange Commission.

-2-

Non-GAAP Measures & Adjustments

The Company uses certain non-GAAP financial measures such as constant currency revenue growth, non-GAAP gross profit/margin percentage, non-GAAP SG&A expense percentage, non-GAAP R&D expense percentage, non-GAAP operating income/margin percentage, non-GAAP provision for income taxes/tax rate, non-GAAP net income, non-GAAP net income per diluted share, adjusted EBITDA and adjusted free cash flow. These non-GAAP financial measures may include certain adjustments related to the following items:

>    Constant currency revenue adjustments

>Acquisition, integration and related costs

>Acquired tangible asset amortization

>    Acquired intangible asset amortization

>Litigation related expenses, settlements and awards

>Business transition and related costs

>Realized and unrealized gains or losses

>Financing related adjustments

>Tax impact of non-GAAP adjustments

>Tax events

>Excess tax benefits from stock-based compensation expense

>Other adjustments

-3-

Non-GAAP Measures & Adjustments

The Company also uses non-GAAP liquidity measures such as adjusted free cash flow, which excludes certain cash items related to the foregoing that may impact period-to-period comparability, and adjusted EBITDA, which excludes non-cash stock-based compensation expense.

The Company uses these non-GAAP financial measures to enable it to further and more consistently analyze the period-to-period financial performance and liquidity of its core business operations, which are generally designated as “non-GAAP” measures herein. Management believes that providing investors with these non-GAAP financial measures gives investors additional information to enable them to assess, in the same way management assesses, the Company’s current and future core operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs and expenditures associated with the operations of the Company’s business as determined in accordance with GAAP. Therefore, investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.

Reconciliations of the non-GAAP financial measures to the nearest comparable GAAP financial measures can be found on the Investor Relations section of the Company’s website.

-4-

Non-GAAP Definitions

>    Constant currency revenue adjustments

▪Some of our sales agreements with foreign customers provide for payment in currencies other than the U.S. Dollar. These foreign currency revenues, when converted into U.S. Dollars, can vary significantly from period-to-period depending on the average and quarter-end exchange rates during a respective period. We believe that comparing these foreign currency denominated revenues by holding the exchange rates constant with the prior year period is useful to management and investors in evaluating our revenue growth rates on a period-to-period basis. We anticipate that fluctuations in foreign exchange rates and the related constant currency adjustments for calculation of our revenue growth rate will continue to occur in future periods.

>    Acquisition, integration and related costs

▪These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments and divestitures, including but not limited to, asset impairments and in-process research and development.

>Acquired tangible asset amortization

▪These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired tangible assets and asset valuation step-ups.

>    Acquired intangible asset amortization

▪These transactions represent amortization expense in connection with business or assets acquisitions associated with acquired intangible assets including, but not limited to customer relationships, intellectual property, trade names and non-competition agreements.

-5-

Non-GAAP Definitions

>    Litigation related expenses, settlements and awards

▪These transactions represent gains, losses, and other related costs associated with certain litigation matters, which can vary in their characteristics, frequency and significance to our operating results.

>Business transition and related costs

▪These transactions represent gains, losses, and other related costs associated with business transition plans. These items may include but are not limited to severance, relocation, consulting, leasehold exit costs, asset impairment, and other related costs to rationalize our operational footprint and optimize business results.

>Realized and unrealized gains or losses

▪These transactions represent gains, losses, and other related costs associated with foreign currency denominated transactions and investments. Changes in the underlying currency rates relative to the U.S. Dollar may result in realized and unrealized foreign currency gains and losses between the time these receivables and payables arise and the time that they are settled in cash. Unrealized and realized gains and losses on investments may impact the Company’s reported results of operations for a period. These items are highly variable, difficult to predict and outside the control of those responsible for the underlying operations of the business.

-6-

Non-GAAP Definitions

>    Financing related adjustments

▪The Company may enter into various financial arrangements whereby costs are incurred and certain instrument features are valued and expensed accordingly but are not necessarily indicative of the on-going cash flow generation of the Company and therefore excludes these costs from non-GAAP earnings. For GAAP earnings per diluted share purposes, the Company cannot reflect the anti-dilutive impact, if applicable, in its diluted shares calculations. However, the Company believes that reflecting the anti-dilutive impact of these instruments in non-GAAP earnings per diluted share provides management and investors with useful information in evaluating the financial performance of the Company on a per share basis.

>    Tax impact of non-GAAP adjustments

▪In order to reflect the tax effected impact of the non-GAAP adjustments, the Company will adjust the non-GAAP earnings by the approximate tax impact of these adjustments.

>    Tax events

▪This represents certain tax events that impact period over period comparability and do not represent the underlying ongoing results of the core operations. The Company may choose to exclude these tax events from non-GAAP earnings.

>    Excess tax benefits from stock-based compensation expense

▪GAAP requires that excess tax benefits recognized on stock-based compensation expense be reflected in our provision for income taxes rather than paid-in capital. As these excess tax benefits may be highly variable from period-to-period, the Company may choose to exclude these tax benefits from non-GAAP earnings to facilitate comparability between periods and with peers.

-7-

Non-GAAP Definitions

>    Adjusted free cash flow

▪Represents free cash flow (cash flow from operations less cash used in the purchase of property, plant and equipment) adjusted for the impact of cash receipts or payments relating to certain previously described non-GAAP adjustments, which may impact period-to-period comparability.

>    Adjusted EBITDA

▪Represents earnings before non-operating income/expense, taxes, depreciation and amortization, as adjusted for the applicable non-GAAP adjustments previously described, and further excluding non-cash stock-based compensation expense.

>Other adjustments

▪In the event there are gains, losses and other adjustments which impact period-to-period comparability and do not represent the underlying ongoing results of the business, the Company may choose to exclude these from non-GAAP earnings.

-8-

XML

Document and Entity Information Document	May 03, 2022
Entity Information [Abstract]
Document Type	8-K
Document Period End Date	May 03, 2022
Entity Registrant Name	MASIMO CORP
Entity Incorporation, State or Country Code	DE
Entity File Number	001-33642
Entity Tax Identification Number	33-0368882
Entity Address, Address Line One	52 Discovery
Entity Address, City or Town	Irvine,
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92618
City Area Code	(949)
Local Phone Number	297-7000
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	MASI
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0000937556
Amendment Flag	false