masi-20221108

Exhibit 99.1

Masimo Reports Third Quarter 2022 Financial Results

Third Quarter 2022 Highlights

•

Consolidated revenue was $549 million;

•

Healthcare revenue was $327 million, representing 6% reported growth and 10% constant currency growth; and

•

Non-healthcare revenue was $222 million.

Irvine, California, November 8, 2022 - Masimo (Nasdaq: MASI) today announced its financial results for the third quarter of 2022, ended October 1, 2022.

Third Quarter 2022 Financial Results

Consolidated revenue was $549.3 million, representing 78.7% reported growth compared to $307.4 million in the third quarter of 2021. Healthcare revenue was $327.2 million, which represents 6.4% reported growth and 10.0% growth on a constant currency basis. Non-healthcare revenue was $222.1 million.

Excluding handheld and fingertip pulse oximeters, shipments of noninvasive technology boards and instruments were 76,100.

For the third quarter of 2022, on a consolidated basis, GAAP net income was $37.9 million, or $0.70 per diluted share, which includes expenses related to the Sound United acquisition. Non-GAAP net income was $53.9 million, or $1.00 per diluted share, for the quarter.

Joe Kiani, Chairman and Chief Executive Officer of Masimo, said “We delivered strong results in the third quarter with revenue and earnings exceeding expectations. Our healthcare segment achieved double digit constant currency growth and our consumer non-healthcare segment reported another quarter of better-than-expected results. Our performance in the third quarter was achieved in a challenging environment and made possible by commendable contributions from our entire team.”

For additional financial details, please visit the Investor Relations section of the Company’s website at investor.masimo.com to access the third quarter 2022 Earnings Presentation materials.

Fourth Quarter 2022 and Full Year 2022 Financial Guidance

The Company provided the following estimates for its fourth quarter and full year 2022 guidance:

Fourth Quarter

2022 Guidance(1)

Updated Full Year

2022 Guidance(1)

(in millions, except earnings per diluted share)

GAAP

Non-GAAP

GAAP

Non-GAAP

Consolidated revenue

$581 to $611

$2,000 to $2,030

Healthcare revenue

$337 to $352

$1,325 to $1,340

Non-healthcare revenue

$245 to $260

$675 to $690

Consolidated earnings per diluted share

$0.80 to $0.92

$1.11 to $1.22

$2.65 to $2.76

$4.38 to $4.49

______________

(1) Guidance provided November 8, 2022.

•For our healthcare segment, our fourth quarter 2022 and full year 2022 revenue guidance includes year-over-year foreign currency headwinds of $13.6 million and $35.0 million, respectively.

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Supplementary Non-GAAP Financial Information

For additional non-GAAP financial details, please visit the Investor Relations section of the Company’s website at investor.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 product 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 constant currency product revenue growth, non-GAAP operating income/margin, non-GAAP net income and non-GAAP earnings per diluted share are important measures in the evaluation of the Company’s performance and uses these measures to better understand and evaluate our business.

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.

Acquisition, integration and related costs

These transactions represent gains, losses, and other related costs associated with acquisitions, integrations, investments, divestitures, assets 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.

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.

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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. Other items also included here are mark-to-market gains and losses of derivative contracts that are not designated as hedging instruments or the ineffective portions of cash flow hedges.

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.

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.

Third Quarter 2022 Actuals versus Third Quarter 2021 Actuals


RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT CURRENCY REVENUE(1):
		Three Months Ended
(in millions, except percentages)		October 1, 2022		October 2, 2021
GAAP healthcare revenue		$	327.2	$	307.4


	Constant currency revenue adjustments	11.1		N/A


Non-GAAP healthcare constant currency revenue		$	338.3	$	307.4


GAAP healthcare revenue growth %	6.4	%
Non-GAAP healthcare constant currency revenue growth %	10.0	%

__________________

(1) May not foot due to rounding.

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RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):
		Three Months Ended
		October 1, 2022				October 2, 2021
(in millions, except per diluted share amounts)		$		Per Diluted Share		$		Per Diluted Share
GAAP net income		$	37.9	$	0.70	$	57.8	$	1.00
Non-GAAP adjustments:
	Acquired tangible asset amortization	8.8		0.16		0.1		—
	Acquired intangible asset amortization	4.6		0.09		1.5		0.03
	Acquisition, integration and related costs	9.7		0.18		0.3		0.01
	Litigation related expenses, settlements and awards	3.4		0.06		1.2		0.02
	Other adjustments	(0.4)		(0.01)		—		—
	Realized and unrealized gains or losses	(5.4)		(0.10)		0.2		—
	Financing related adjustments	0.5		0.01		—		—
	Tax impact of non-GAAP adjustments	(4.9)		(0.09)		(0.5)		(0.01)
	Excess tax benefits from stock-based compensation expense	(0.3)		(0.01)		(6.4)		(0.11)
Total non-GAAP adjustments		16.0		0.30		(3.5)		(0.06)
Non-GAAP net income		$	53.9	$	1.00	$	54.3	$	0.94
Weighted average shares outstanding-diluted				54.1				57.7

__________________

(1) May not foot due to rounding.

Fourth Quarter 2022 and Full Year Financial Guidance

RECONCILIATION OF HEALTHCARE GAAP TO NON-GAAP CONSTANT CURRENCY REVENUE(1):

Guidance(2)

(in millions, except percentages)

Fourth Quarter
2022

Full Year
2022

GAAP healthcare revenue

$337 to $352

$1,325 to $1,340

Constant currency revenue adjustments

Non-GAAP healthcare constant currency revenue

$350 to $365

$1,360 to $1,375

GAAP healthcare revenue growth %

2.7% to 7.3%

6.9% to 8.1%

Non-GAAP healthcare constant currency revenue growth %

6.9% to 11.5%

9.8% to 11.0%

__________________

(1) May not foot due to rounding.

(2) Guidance provided November 8, 2022.

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RECONCILIATION OF GAAP TO NON-GAAP NET INCOME AND NET INCOME PER DILUTED SHARE(1):

		Guidance(2)
		Fourth Quarter 2022		Updated Full Year 2022
(in millions, except per diluted share amounts)		$	Per Diluted Share	$	Per Diluted Share
GAAP net income		$43.8 to $50.0	$0.80 to $0.92	$146.5 to $152.6	$2.65 to $2.76
Non-GAAP adjustments:
	Acquired tangible asset amortization	2.3	0.04	59.4	1.07
	Acquired intangible asset amortization	7.4	0.14	22.8	0.41
	Acquisition, integration and related costs	4.7	0.09	37.2	0.67
	Litigation related expenses, settlements and awards	6.6	0.12	22.6	0.41
	Other adjustments	—	—	(0.9)	(0.02)
	Realized and unrealized gains or losses	—	—	(12.9)	(0.23)
	Financing related adjustments	0.5	0.01	1.5	0.03
	Tax impact of non-GAAP adjustments	(4.9)	(0.09)	(31.9)	(0.58)
	Excess tax benefits from stock-based compensation expense	—	—	(2.2)	(0.04)
	Total non-GAAP adjustments	16.5	0.30	95.7	1.73
Non-GAAP net income		$60.4 to $66.5	$1.11 to $1.22	$242.2 to $248.4	$4.38 to $4.49
Weighted average shares outstanding-diluted			54.5		55.3

__________________

(1) May not foot due to rounding.

(2) Guidance provided November 8, 2022.

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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 Link:

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.

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 fourth quarter and full year 2022 financial guidance; the interest in our W1™ watch and upcoming innovations; our long-term outlook; demand for our products; anticipated revenue and earnings growth; our financial condition, results of operations and business generally; expectations regarding our ability to design and deliver innovative new noninvasive technologies and reduce the cost of care; our ability to address supply chain challenges; anticipated benefits from our acquisition of Sound United; 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; our ability to successfully integrate Sound United’s brands into our business; our ability to address and expand into new markets; the lack of acceptance of any of our current or future products and technologies; 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 brand; 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
[email protected]						[email protected]

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.

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MASIMO CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)
	October 1, 2022		January 1, 2022
ASSETS
Current assets
Cash and cash equivalents	$	219.5	$	745.3

Accounts receivable, net of allowance for credit losses	371.6		200.8
Inventories	495.4		201.4
Other current assets	159.1		91.0
Total current assets	1,245.6		1,238.5
Lease receivable, noncurrent	79.6		73.6
Deferred costs and other contract assets	37.0		28.1
Property and equipment, net	372.2		272.8

Customer relationships, net	204.5		15.3
Acquired technologies, net	163.9		19.7
Other intangible assets, net	78.2		37.5
Trademarks	262.0		—
Goodwill	446.3		100.3
Deferred tax assets	56.5		52.6
Other non-current assets	110.6		48.6
Total assets	$	3,056.4	$	1,887.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	267.8	$	75.5
Accrued compensation	90.4		70.8
Deferred revenue and other contract liabilities, current	77.6		50.9
Other current liabilities	151.5		70.4
Total current liabilities	587.3		267.6
Long-term debt	951.4		—
Deferred tax liabilities	139.2		5.1

Other non-current liabilities	125.9		64.0
Total liabilities	1,803.8		336.7
Commitments and contingencies
Stockholders’ equity


Common stock	0.1		0.1
Treasury stock	(1,169.1)		(767.7)
Additional paid-in capital	775.0		752.5
Accumulated other comprehensive loss	(26.9)		(5.5)
Retained earnings	1,673.5		1,570.9


Total stockholders’ equity	1,252.6		1,550.3
Total liabilities and stockholders’ equity	$	3,056.4	$	1,887.0

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MASIMO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in millions, except per share amounts)
	Three Months Ended				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021



Revenue	$	549.3	$	307.4	$	1,418.8	$	911.6
Cost of goods sold	266.8		103.8		673.4		318.1
Gross profit	282.5		203.6		745.4		593.5
Operating expenses:
Selling, general and administrative	174.6		100.6		471.6		291.2
Research and development	53.1		35.4		137.1		103.9

Total operating expenses	227.7		136.0		608.7		395.1
Operating income	54.8		67.6		136.7		198.4
Non-operating (loss) income	(2.8)		—		1.0		(0.7)
Income before provision for income taxes	52.0		67.6		137.7		197.7
Provision for income taxes	14.1		9.8		35.1		36.3
Net income	$	37.9	$	57.8	$	102.6	$	161.4







Net income per share:
Basic	$	0.72	$	1.05	$	1.90	$	2.93
Diluted	$	0.70	$	1.00	$	1.85	$	2.80

Weighted-average shares used in per share calculations:
Basic	52.5		55.1		54.0		55.1
Diluted	54.1		57.7		55.6		57.7

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 millions):


	Three Months Ended				Nine Months Ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Cost of goods sold	$	0.3	$	0.3	$	0.8	$	0.6
Selling, general and administrative	9.2		9.0		29.4		23.5
Research and development	4.0		3.3		11.5		9.4
Total	$	13.5	$	12.6	$	41.7	$	33.5

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MASIMO CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)
	Nine Months Ended
	October 1, 2022		October 2, 2021
Cash flows from operating activities:
Net income	$	102.6	$	161.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	56.6		26.5
Stock-based compensation	41.7		33.5
Gain on disposal of equipment, intangibles and other assets	0.1		0.3

Provision for credit losses	1.2		0.6

Amortization of debt issuance cost	0.9		—
Changes in operating assets and liabilities:
Increase in accounts receivable	(66.7)		(51.0)
(Increase) decrease in inventories	(71.0)		12.3
Decrease in other current assets	11.7		4.4
Increase in lease receivable, net	(5.9)		(9.3)
Increase in deferred costs and other contract assets	(31.6)		(2.6)

(Increase) decrease in other non-current assets	(22.2)		0.1
Increase (decrease) in accounts payable	69.6		(4.3)
Decrease in accrued compensation	(6.9)		(1.3)
Decrease in accrued liabilities	(26.5)		(4.0)
Decrease in income tax payable	(8.4)		(1.5)
Increase in deferred revenue and other contract-related liabilities	19.7		1.4

(Decrease) increase in other non-current liabilities	(28.9)		0.6
Net cash provided by operating activities	36.0		167.1
Cash flows from investing activities:


Purchases of property and equipment, net	(36.0)		(20.7)
Increase in intangible assets	(13.9)		(8.2)
Business combinations, net of cash acquired	(985.0)		—
Other strategic investing activities	—		(2.6)
Net cash used in investing activities	(1,034.9)		(31.5)
Cash flows from financing activities:
Borrowings under line of credit	1,050.6		—
Repayments on line of credit	(96.3)		—



Debt issuance costs	(9.3)		—
Proceeds from issuance of common stock	6.9		19.0
Payroll tax withholdings on behalf of employees for vested equity awards	(25.4)		(16.7)
Repurchases of common stock	(401.4)		(128.9)

Net cash provided by (used in) financing activities	525.1		(126.6)
Effect of foreign currency exchange rates on cash	(52.5)		(0.1)
Net (decrease) increase in cash, cash equivalents and restricted cash	(526.3)		8.9
Cash, cash equivalents and restricted cash at beginning of period	748.4		645.0
Cash, cash equivalents and restricted cash at end of period	$	222.1	$	653.9

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Masimo Earnings Third 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. Safe Harbor Statement

Third Quarter 2022 Financial Highlights (1) $549 million $1.00 per share Revenue Non-GAAP Gross Margin Non-GAAP Operating Profit Non-GAAP EPS $81 million 52.6% Healthcare revenue of $327 million, representing 6% reported growth and 10% constant currency growth; AND Non-healthcare revenue of $222 million, representing (2%) reported growth and 5% constant currency growth on a pro forma basis. Healthcare 64.6%; AND Non-healthcare 35.0%. (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.

(In millions; except EPS) Actual Prior Year vs. Prior Year Revenue $549 $307 79% Healthcare 327 307 6% Non-Healthcare 222 N/A N/A Gross Profit $289 $204 41% Healthcare 211 204 3% Non-Healthcare 78 N/A N/A Gross Margin 52.6% 66.5% -1390 bps Healthcare 64.6% 66.5% -190 bps Non-Healthcare 35.0% N/A N/A Operating Profit $81 $71 15% Operating Margin 14.8% 23.0% -820 bps Non-Operating Inc. / (Exp.) (8) 0 -5479% Pre-Tax Income $73 $71 3% Income Taxes 19 17 16% Tax Rate 26.3% 23.5% 280 bps Net Income $54 $54 -1% Shares 54.1 57.7 -6% Earnings Per Share $1.00 $0.94 6% Third 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. Pro Forma Constant Currency Revenue Growth Consolidated 8% Healthcare 10% Non-Healthcare 5%

Fourth Quarter 2022 Guidance as of November 8, 2022 (1) $581 to $611 million $1.11 to $1.22 per share Revenue Non-GAAP Gross Margin Non-GAAP Operating Profit Non-GAAP EPS $91 to $100 million ~51% Healthcare revenue of $337 to $352 million, representing 3% to 7% reported growth and 7% to 11% constant currency growth; AND Non-healthcare revenue of $245 to $260 million, representing (7%) to (2%) reported growth and 5% to 10% constant currency growth on a pro forma basis. Healthcare ~63%; AND Non-healthcare ~34% to 35%. (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.

Guidance vs. Prior Year (In millions; except EPS) Low High Prior Year Low High Revenue $581 $611 $328 77% 87% Healthcare 337 352 328 3% 7% Non-Healthcare 245 260 N/A N/A N/A Gross Profit $296 $313 $216 37% 45% Healthcare 211 222 216 -2% 3% Non-Healthcare 84 91 N/A N/A N/A Gross Margin 50.9% 51.2% 65.9% -1500 bps -1470 bps Healthcare 62.8% 63.1% 65.9% -310 bps -280 bps Non-Healthcare 34.5% 35.0% N/A N/A N/A Operating Profit $91 $100 $84 8% 18% Operating Margin 15.7% 16.3% 25.7% -1000 bps -940 bps Non-Operating Inc. / (Exp.) (11) (11) 0 -16488% -16488% Pre-Tax Income $80 $88 $84 -5% 5% Income Taxes 20 22 14 38% 53% Tax Rate 24.5% 24.7% 16.9% 760 bps 780 bps Net Income $60 $67 $70 -14% -5% Shares 54.5 54.5 57.8 -6% -6% Earnings Per Share $1.11 $1.22 $1.21 -8% 1% Fourth Quarter 2022 Guidance 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. Pro Forma Constant Currency Revenue Growth Low High Consolidated 6% 11% Healthcare 7% 11% Non-Healthcare 5% 10%

Full Year 2022 Guidance as of November 8, 2022 (1) $2,000 to $2,030 million $4.38 to $4.49 per share Revenue Non-GAAP Gross Margin Non-GAAP Operating Profit Non-GAAP EPS $349 to $357 million ~55% Healthcare revenue of $1,325 to $1,340 million, representing 7% to 8% reported growth and 10% to 11% constant currency growth; AND Non-healthcare revenue of $675 to $690 million from April 11, 2022 through fiscal year end. On a pro forma basis for the full year, non-healthcare revenue of $933 to $948 million, representing 3% to 4% reported growth and 10% to 12% constant currency growth. Healthcare ~65%; AND Non-healthcare ~35%. (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.

Guidance vs. Prior Year (In millions; except EPS) Low High Prior Year Low High Revenue $2,000 $2,030 $1,239 61% 64% Healthcare 1,325 1,340 1,239 7% 8% Non-Healthcare 675 690 N/A N/A N/A Gross Profit $1,099 $1,117 $816 35% 37% Healthcare 865 875 816 6% 7% Non-Healthcare 235 241 N/A N/A N/A Gross Margin 55.0% 55.0% 65.8% -1080 bps -1080 bps Healthcare 65.3% 65.3% 65.8% -50 bps -50 bps Non-Healthcare 34.8% 35.0% N/A N/A N/A Operating Profit $349 $357 $295 18% 21% Operating Margin 17.4% 17.6% 23.8% -640 bps -620 bps Non-Operating Inc. / (Exp.) (23) (23) 0 -5519% -5519% Pre-Tax Income $326 $334 $295 10% 13% Income Taxes 84 86 65 29% 33% Tax Rate 25.7% 25.7% 22.0% 370 bps 370 bps Net Income $242 $248 $230 5% 8% Shares 55.3 55.3 57.7 -4% -4% Earnings Per Share $4.38 $4.49 $3.99 10% 13% Full Year 2022 Guidance 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. Pro Forma Constant Currency Revenue Growth Low High Consolidated 10% 11% Healthcare 10% 11% Non-Healthcare 10% 12%

Appendices GAAP to Non-GAAP Reconciliations

GAAP to Non-GAAP Reconciliations | Consolidated Income Statement (Unaudited; in millions, except per share data) (1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Low High Low High GAAP revenue $299.0 $305.1 $307.4 $327.6 $1,239.2 $304.2 $565.3 $549.3 $581.2 $611.2 $2,000.0 $2,030.0 GAAP gross profit $196.9 $192.9 $203.6 $214.9 $808.3 $204.8 $258.2 $282.5 $293.1 $310.3 $1,038.6 $1,055.7 Acquired tangible asset amortization 0.1 0.1 0.1 0.1 0.5 - 46.2 6.4 - - 52.6 52.6 Acquired intangible asset amortization 0.6 0.6 0.6 0.6 2.4 0.6 4.9 0.1 2.6 2.6 8.2 8.2 Acquisition, integration and related costs 0.1 0.5 0.0 0.3 0.9 0.0 0.0 - - - 0.1 0.1 Other adjustments - 3.4 - - 3.4 - - - - - - - Non-GAAP gross profit $197.7 $197.5 $204.5 $215.9 $815.5 $205.4 $309.2 $289.1 $295.7 $312.9 $1,099.4 $1,116.6 GAAP selling, general and administrative expenses $96.7 $93.9 $100.6 $104.1 $395.3 $108.9 $188.3 $174.6 Acquired tangible asset amortization - - - - - - (2.1) (2.4) Acquired intangible asset amortization (1.0) (0.9) (0.9) (0.9) (3.7) (0.9) (4.4) (4.5) Acquisition, integration and related costs (1.0) (0.4) (0.3) (0.5) (2.2) (3.1) (19.7) (9.6) Litigation related expenses and settlements - (0.4) (1.2) (4.4) (6.0) (5.5) (7.2) (3.4) Other adjustments - - - - - - - - Non-GAAP selling, general and administrative expenses $94.7 $92.2 $98.3 $98.3 $383.5 $99.5 $154.9 $154.7 GAAP research and development expenses $34.5 $33.9 $35.4 $33.4 $137.2 $36.1 $47.8 $53.1 Acquired intangible asset amortization - - - - - - - - Acquisition, integration and related costs - - - - - - (0.1) (0.1) Non-GAAP research and development expenses $34.5 $33.9 $35.4 $33.4 $137.2 $36.1 $47.8 $53.1 GAAP litigation settlements and awards $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 Litigation related expenses and settlements - - - - - - - (0.0) Non-GAAP litigation settlements and awards $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 $0.0 GAAP operating expenses $131.2 $127.8 $136.0 $137.5 $532.5 $145.0 $236.1 $227.7 Acquired tangible asset amortization - - - - - - (2.1) (2.4) Acquired intangible asset amortization (1.0) (0.9) (0.9) (0.9) (3.7) (0.9) (4.4) (4.5) Acquisition, integration and related costs (1.0) (0.4) (0.3) (0.5) (2.2) (3.1) (19.7) (9.7) Litigation related expenses and settlements - (0.4) (1.2) (4.4) (6.0) (5.5) (7.2) (3.4) Other adjustments - - - - - - - - Non-GAAP operating expenses $129.2 $126.1 $133.7 $131.7 $520.7 $135.6 $202.6 $207.8 GAAP operating profit $65.7 $65.1 $67.6 $77.4 $275.8 $59.7 $22.1 $54.8 $70.2 $78.5 $206.9 $215.2 Acquired tangible asset amortization 0.1 0.1 0.1 0.1 0.5 - 48.2 8.8 2.3 2.3 59.4 59.4 Acquired intangible asset amortization 1.6 1.5 1.5 1.5 6.1 1.5 9.3 4.6 7.4 7.4 22.8 22.8 Acquisition, integration and related costs 1.0 0.9 0.3 0.8 3.1 3.1 19.7 9.7 4.7 4.7 37.2 37.2 Litigation related expenses and settlements - 0.4 1.2 4.4 6.0 5.5 7.2 3.4 6.6 6.6 22.6 22.6 Other adjustments - 3.4 - - 3.4 - - - - - - - Non-GAAP operating profit $68.5 $71.4 $70.8 $84.2 $294.8 $69.8 $106.6 $81.3 $91.2 $99.5 $349.0 $357.3 Q4 2022 Guidance (2) FY 2022 Guidance (2)

GAAP to Non-GAAP Reconciliations | Consolidated Income Statement (Unaudited; in millions, except per share data) (1) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Low High Low High GAAP non-operating income (expense) ($0.7) $0.1 ($0.1) ($0.7) ($1.4) ($0.6) $4.5 ($2.8) ($11.7) ($11.7) ($10.6) ($10.6) Realized and unrealized gains or losses 0.8 0.1 0.2 0.8 1.9 0.8 (8.2) (5.4) - - (12.9) (12.9) Financing related adjustments - - - - - - 0.6 0.5 0.5 0.5 1.5 1.5 Other adjustments - - - - - - (0.5) (0.4) (0.0) (0.0) (0.9) (0.9) Non-GAAP non-operating income (expense) $0.1 $0.1 $0.2 $0.1 $0.4 $0.2 ($3.6) ($8.2) ($11.2) ($11.2) ($22.9) ($22.9) GAAP provision for income taxes $11.5 $15.0 $9.8 $8.4 $44.7 $12.5 $8.5 $14.1 $14.7 $16.9 $49.8 $51.9 Tax impact of non-GAAP adjustments 0.6 1.2 0.5 1.4 3.7 2.5 19.5 4.9 4.9 4.9 31.9 31.9 Excess tax benefits from stock-based compensation 4.3 1.3 6.4 4.4 16.4 1.7 0.2 0.3 - - 2.2 2.2 Non-GAAP provision for income taxes $16.4 $17.5 $16.7 $14.2 $64.9 $16.8 $28.2 $19.3 $19.6 $21.8 $83.9 $86.0 GAAP net income (loss) $53.4 $50.2 $57.8 $68.3 $229.6 $46.6 $18.1 $37.9 $43.8 $50.0 $146.5 $152.6 Acquired tangible asset amortization 0.1 0.1 0.1 0.1 0.5 - 48.2 8.8 2.3 2.3 59.4 59.4 Acquired intangible asset amortization 1.6 1.5 1.5 1.5 6.1 1.5 9.3 4.6 7.4 7.4 22.8 22.8 Acquisition, integration and related costs 1.0 0.9 0.3 0.8 3.1 3.1 19.7 9.7 4.7 4.7 37.2 37.2 Litigation related expenses and settlements - 0.4 1.2 4.4 6.0 5.5 7.2 3.4 6.6 6.6 22.6 22.6 Other adjustments - 3.4 - - 3.4 - (0.5) (0.4) (0.0) (0.0) (0.9) (0.9) Realized and unrealized gains or losses 0.8 0.1 0.2 0.8 1.9 0.8 (8.2) (5.4) - - (12.9) (12.9) Financing related adjustments - - - - - - 0.6 0.5 0.5 0.5 1.5 1.5 Tax impact of non-GAAP adjustments (0.6) (1.2) (0.5) (1.4) (3.7) (2.5) (19.5) (4.9) (4.9) (4.9) (31.9) (31.9) Excess tax benefits from stock-based compensation (4.3) (1.3) (6.4) (4.4) (16.4) (1.7) (0.2) (0.3) - - (2.2) (2.2) Non-GAAP net income (loss) $52.1 $54.0 $54.3 $70.1 $230.4 $53.2 $74.8 $53.9 $60.4 $66.5 $242.2 $248.4 GAAP net income (loss) per share $0.92 $0.88 $1.00 $1.18 $3.98 $0.81 $0.33 $0.70 $0.80 $0.92 $2.65 $2.76 Acquired tangible asset amortization 0.00 0.00 0.00 0.00 0.01 0.00 0.87 0.16 0.04 0.04 1.07 1.07 Acquired intangible asset amortization 0.03 0.03 0.03 0.03 0.11 0.03 0.17 0.09 0.14 0.14 0.41 0.41 Acquisition, integration and related costs 0.02 0.02 0.01 0.01 0.05 0.05 0.36 0.18 0.09 0.09 0.67 0.67 Litigation related expenses and settlements 0.00 0.01 0.02 0.08 0.10 0.10 0.13 0.06 0.12 0.12 0.41 0.41 Other adjustments 0.00 0.06 0.00 0.00 0.06 0.00 (0.01) (0.01) (0.00) (0.00) (0.02) (0.02) Realized and unrealized gains or losses 0.01 0.00 0.00 0.01 0.03 0.01 (0.15) (0.10) 0.00 0.00 (0.23) (0.23) Financing related adjustments 0.00 0.00 0.00 0.00 0.00 0.00 0.01 0.01 0.01 0.01 0.03 0.03 Tax impact of non-GAAP adjustments (0.01) (0.02) (0.01) (0.02) (0.06) (0.04) (0.35) (0.09) (0.09) (0.09) (0.58) (0.58) Excess tax benefits from stock-based compensation (0.07) (0.02) (0.11) (0.08) (0.28) (0.03) (0.00) (0.01) 0.00 0.00 (0.04) (0.04) Non-GAAP net income (loss) per share $0.90 $0.94 $0.94 $1.21 $3.99 $0.93 $1.35 $1.00 $1.11 $1.22 $4.38 $4.49 Weighted average shares outstanding - Diluted 57.9 57.4 57.7 57.8 57.7 57.3 55.3 54.1 54.5 54.5 55.3 55.3 Q4 2022 Guidance (2) FY 2022 Guidance (2)

GAAP to Non-GAAP Reconciliations | Segment Reporting (Unaudited; in millions) (1) Q4 2022 Guidance (2) FY 2022 Guidance (2) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Low High Low High Revenue Healthcare 299.0 305.1 307.4 327.6 1,239.2 304.2 357.0 327.2 336.5 351.5 1,325.0 1,340.0 Non-Healthcare - - - - - - 208.3 222.1 244.7 259.7 675.0 690.0 GAAP revenue $299.0 $305.1 $307.4 $327.6 $1,239.2 $304.2 $565.3 $549.3 $581.2 $611.2 $2,000.0 $2,030.0 Gross profit Healthcare 197.7 197.5 204.5 215.9 815.5 205.4 236.7 211.4 211.2 221.9 864.7 875.4 Non-Healthcare - - - - - - 72.5 77.7 84.5 91.0 234.7 241.2 Other (0.8) (4.6) (0.8) (1.0) (7.2) (0.6) (51.1) (6.5) (2.6) (2.6) (60.9) (60.9) GAAP gross profit $196.9 $192.9 $203.6 $214.9 $808.3 $204.8 $258.2 $282.5 $293.1 $310.3 $1,038.6 $1,055.7 Acquired tangible asset amortization 0.1 0.1 0.1 0.1 0.5 - 46.2 6.4 - - 52.6 52.6 Acquired intangible asset amortization 0.6 0.6 0.6 0.6 2.4 0.6 4.9 0.1 2.6 2.6 8.2 8.2 Acquisition, integration and related costs 0.1 0.5 0.0 0.3 0.9 0.0 0.0 - - - 0.1 0.1 Other adjustments - 3.4 - - 3.4 - - - - - - - GAAP adjustments $0.8 $4.6 $0.8 $1.0 $7.2 $0.6 $51.1 $6.5 $2.6 $2.6 $60.9 $60.9 Healthcare 197.7 197.5 204.5 215.9 815.5 205.4 236.7 211.4 211.2 221.9 864.7 875.4 Non-Healthcare - - - - - - 72.5 77.7 84.5 91.0 234.7 241.2 Other - - - - - - - - - - - - Non-GAAP gross profit $197.7 $197.5 $204.5 $215.9 $815.5 $205.4 $309.2 $289.1 $295.7 $312.9 $1,099.4 $1,116.6 Operating Profit Healthcare N/A N/A N/A N/A N/A N/A 106.5 80.9 82.4 88.8 339.6 346.0 Non-Healthcare N/A N/A N/A N/A N/A N/A 15.2 14.7 18.7 24.6 48.7 54.5 Corporate Overhead N/A N/A N/A N/A N/A N/A (15.1) (14.2) (9.9) (13.9) (39.2) (43.2) Other N/A N/A N/A N/A N/A N/A (84.5) (26.5) (21.0) (21.0) (142.0) (142.0) GAAP operating profit $65.7 $65.1 $67.6 $77.4 $275.8 $59.7 $22.1 $54.8 $70.2 $78.5 $206.9 $215.2 Acquired tangible asset amortization 0.1 0.1 0.1 0.1 0.5 - 48.2 (8.8) 2.3 2.3 59.4 59.4 Acquired intangible asset amortization 1.6 1.5 1.5 1.5 6.1 1.5 9.3 (4.6) 7.4 7.4 22.8 22.8 Acquisition, integration and related costs 1.0 0.9 0.3 0.8 3.1 3.1 19.7 (9.7) 4.7 4.7 37.2 37.2 Litigation related expenses and settlements - 0.4 1.2 4.4 6.0 5.5 7.2 (3.4) 6.6 6.6 22.6 22.6 Other adjustments - 3.4 - - 3.4 - - - - - - - GAAP adjustments $2.8 $6.2 $3.2 $6.8 $19.0 $10.1 $84.5 ($26.5) $21.0 $21.0 $142.0 $142.0 Healthcare N/A N/A N/A N/A N/A N/A 106.5 80.9 82.4 88.8 339.6 346.0 Non-Healthcare N/A N/A N/A N/A N/A N/A 15.2 14.7 18.7 24.6 48.7 54.5 Corporate Overhead N/A N/A N/A N/A N/A N/A (15.1) (14.2) (9.9) (13.9) (39.2) (43.2) Other N/A N/A N/A N/A N/A N/A - - - - - - Non-GAAP operating profit $68.5 $71.4 $70.8 $84.2 $294.8 $69.8 $106.6 $81.3 $91.2 $99.5 $349.0 $357.3

GAAP to Non-GAAP Reconciliations | Constant Currency Revenue (Unaudited; in millions, except percentages) (1,3) Q4 2022 Guidance (2) FY 2022 Guidance (2) Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q2 2022 Q3 2022 Low High Low High Revenue Healthcare 299.0 305.1 307.4 327.6 1,239.2 304.2 357.0 327.2 336.5 351.5 1,325.0 1,340.0 Non-Healthcare - - - - - - 208.3 222.1 244.7 259.7 675.0 690.0 GAAP revenue $299.0 $305.1 $307.4 $327.6 $1,239.2 $304.2 $565.3 $549.3 $581.2 $611.2 $2,000.0 $2,030.0 Healthcare N/A N/A N/A N/A N/A 4.3 6.0 11.1 13.6 13.6 35.0 35.0 Non-Healthcare N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Constant currency adjustments N/A N/A N/A N/A N/A $4.3 $6.0 $11.1 $13.6 $13.6 $35.0 $35.0 Healthcare 299.0 305.1 307.4 327.6 1,239.2 308.6 363.0 338.3 350.1 365.1 1,360.0 1,375.0 Non-Healthcare - - - - - - 208.3 222.1 244.7 259.7 675.0 690.0 Non-GAAP revenue (constant currency) $299.0 $305.1 $307.4 $327.6 $1,239.2 $308.6 $571.3 $560.4 $594.8 $624.8 $2,035.0 $2,065.0 Healthcare N/A N/A N/A N/A N/A 1.7% 17.0% 6.4% 2.7% 7.3% 6.9% 8.1% Non-Healthcare N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A GAAP revenue growth N/A N/A N/A N/A N/A 1.7% 85.3% 78.7% 77.4% 86.6% 61.4% 63.8% Healthcare N/A N/A N/A N/A N/A 3.2% 19.0% 10.0% 6.9% 11.5% 9.8% 11.0% Non-Healthcare N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Non-GAAP revenue growth (constant currency) N/A N/A N/A N/A N/A 3.2% 87.2% 82.3% 81.6% 90.7% 64.2% 66.6% Pro Forma Revenue (4) Healthcare 299.0 305.1 307.4 327.6 1,239.2 304.2 357.0 327.2 336.5 351.5 1,325.0 1,340.0 Non-Healthcare 211.1 206.4 227.2 264.0 908.7 250.6 215.2 222.1 244.7 259.7 932.6 947.6 GAAP revenue $510.1 $511.5 $534.6 $591.6 $2,147.8 $554.9 $572.2 $549.3 $581.2 $611.2 $2,257.6 $2,287.6 Healthcare N/A N/A N/A N/A N/A 4.3 6.0 11.1 13.6 13.6 35.0 35.0 Non-Healthcare N/A N/A N/A N/A N/A 7.3 12.2 16.9 31.6 31.6 68.0 68.0 Constant currency adjustments N/A N/A N/A N/A N/A $11.6 $18.2 $28.0 $45.2 $45.2 $103.0 $103.0 Healthcare 299.0 305.1 307.4 327.6 1,239.2 308.6 363.0 338.3 350.1 365.1 1,360.0 1,375.0 Non-Healthcare 211.1 206.4 227.2 264.0 908.7 257.9 227.4 239.0 276.3 291.3 1,000.6 1,015.6 Non-GAAP revenue (constant currency) $510.1 $511.5 $534.6 $591.6 $2,147.8 $566.5 $590.5 $577.3 $626.4 $656.4 $2,360.6 $2,390.6 Healthcare N/A N/A N/A N/A N/A 1.7% 17.0% 6.4% 2.7% 7.3% 6.9% 8.1% Non-Healthcare N/A N/A N/A N/A N/A 18.7% 4.3% -2.3% -7.3% -1.6% 2.6% 4.3% GAAP revenue growth N/A N/A N/A N/A N/A 8.8% 11.9% 2.7% -1.8% 3.3% 5.1% 6.5% Healthcare N/A N/A N/A N/A N/A 3.2% 19.0% 10.0% 6.9% 11.5% 9.8% 11.0% Non-Healthcare N/A N/A N/A N/A N/A 22.2% 10.2% 5.2% 4.6% 10.3% 10.1% 11.8% Non-GAAP revenue growth (constant currency) N/A N/A N/A N/A N/A 11.1% 15.4% 8.0% 5.9% 11.0% 9.9% 11.3% (1) Totals may not foot due to rounding. Quarterly reported amounts may vary from amounts previously reported due to rounding conventions. (3) Constant currency adjustments are intended to reflect current year revenue at prior year foreign exchange rates for comparison purposes. (4) Represents pro forma financial information, which is being provided for year-over-year comparison purposes only. Pro forma financial information includes historical results for the acquired Sound United business prior to the transaction date on April 11, 2022. (2) Updated for guidance provided on November 8, 2022

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. 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. 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. Other items also included here are mark-to-market gains and losses of derivative contracts that are not designated as hedging instruments or the ineffective portions of cash flow hedges. 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. Excess tax benefits from stock-based compensation: 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. Description of Non-GAAP Adjustments


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Exhibit No.			Description
99.1			Press Release, Dated November 8, 2022, Reporting Third Quarter 2022 Financial Results
99.2			Masimo Third Quarter 2022 Supplemental Earnings Presentation

104			Cover Page Interactive Data File (embedded within the Inline XBRL document)


Item 2.02.			Results of Operations and Financial Condition.


Item 7.01.			Regulation FD Disclosure.


Item 9.01.			Financial Statements and Exhibits.