Hello, and welcome to the Q1 Fiscal Year 2025 ResMed Earnings Conference Call. My name is Kevin, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session. Please note this conference call is being recorded. I'll now turn the call over to Amy Wakeham, Chief Investor Relations Officer. Amy, you may begin.

Great. Thank you, Kevin. Hi, everyone, and welcome to ResMed's first quarter fiscal year 2025 earnings call. As Kevin said, we are live webcasting this call and the replay will be available on the Investor Relations section of our corporate website later today. Our earnings press release and presentation are both available online now. During today's call, we will discuss several non-GAAP measures that we believe provide helpful information for investors. This information is not intended to be considered in isolation or as a substitute for the reported GAAP financial information. We encourage you to review the supporting schedules in today's earnings press release to reconcile these non-GAAP measures with the GAAP reported numbers. In addition, our discussion today will include forward-looking statements, including but not limited to expectations about our future financial and operating performance. We make these statements based on reasonable assumptions. However, our actual results could differ. Please review our SEC filings for a complete discussion of the risk factors that could cause our actual results to differ materially from any forward-looking statements made today. I'll now turn the call over to ResMed's Chairman and CEO, Mick Farrell.

Thanks, Amy, and welcome to all of our shareholders for joining us today as we review ResMed's first quarter results for fiscal year 2025. I'm pleased to report another strong quarter of growth across all of our business segments. We've seen solid revenue growth, improved gross margins, and disciplined investments in both SG&A and R&D, resulting in very strong profit performance. The results we are presenting today reflect the hard work of the 10,000-plus ResMedians operating in over 140 countries worldwide. And the dedication they bring to improving the lives of patients, physicians, providers, and all of our customers every day. Before delving into the details of our financial and strategic initiatives, I want to emphasize that the results we are presenting here today are not just financial in nature. They represent an improvement in health outcomes for many tens of millions of people worldwide. Our mission here at ResMed is to create life-changing healthcare technologies that people love, through cloud-connectable medical devices, masks and accessories, digital health platforms, as well as ongoing investments in the latest technology, including ML and AI and GenAI. We are committed to helping hundreds of millions of people so that they can breathe better, sleep better, and live longer and higher-quality lives. Living the lives that they can to their fullest potential. Now turning to a high-level review of the financials. I'm proud to report that we delivered another strong quarter. Revenue grew by 11%, reflecting strong demand for sleep health and breathing health medical devices, our masks and accessories, as well as our residential care software offerings. We achieved double-digit revenue growth across all product and geographic categories this quarter. Masks and accessories growth was augmented by new patient activations as well as ongoing ReSupply. Our global device sales were driven by strong…

Great. Thanks, Mick. In my remarks today, I will provide an overview of our results for the first quarter of fiscal year 2025. Unless noted, all comparisons out of the prior year quarter and in constant currency terms were applicable. We had a strong financial performance in Q1. Group revenue for the September quarter was $1.22 billion, an increase of 11% on both a headline and constant currency basis. Revenue growth reflects positive and consistent contributions across our product and ReSupply portfolio. Year-over-year movements in foreign currencies positively impacted revenue by approximately $4 million during the September quarter. Looking at our geographic revenue distribution and excluding revenue from our Residential Care Software business, sales in U.S., Canada, and Latin America countries increased by 11%. Sales in Europe, Asia, and other regions increased by 10%. Globally, device sales increased by 10%, while masks and other sales increased by 11%. Breaking it down by regional areas, device sales in the U.S., Canada, and Latin America increased by 11%, supported by solid ongoing new patient demand. Masks and other sales increased by 10%, reflecting growth in both ReSupply and new patient setups. In Europe, Asia, and other regions, device sales increased by 9% on a constant-currency basis, while masks and other sales increased by 11%. Residential Care Software revenue increased by 12% in the September quarter, underpinned by growth from MEDIFOX DAN and continued strong performance from our HME software vertical. During the rest of my commentary today, I will be referring to non-GAAP numbers. We have provided a full reconciliation of the non-GAAP to GAAP numbers in our first quarter earnings press release. Gross margin increased by 320 basis points to 59.2% in the September quarter. The increase was primarily driven by manufacturing efficiencies and component cost improvements and an increase in…

Great. Thank you, Brett. Kevin, I'd like to go ahead and turn the call over to you to provide the instructions again and run the Q&A portion of the call. Thank you.

[Operator Instructions] Our first question today is coming from Laura Sutcliffe from UBS. Your line is now live.

Hello. Thank you for taking my question. Just a quick one. Do you have any sense of pre-orders for your new mask? I know it's not available yet, but any sense of what demand looks like for that product?

Yes. Thanks for the question, Laura. You know it's de-minimis at this point in terms of not material to the global financials. And so we don't release information like that. But what I can tell you is that we have shown this technology to our commercial teams in our big markets where it's going to launch next week. And there's incredible excitement. The marketing team have put together some fantastic programs. The sales team are ready to take it to customers. But most important here is the product engineering teams and the product management teams. This has been over a decade in development, it's really hard to take fabric and custom apply it onto Liquid Silicon Rubber and do that at scale. The scale that ResMed needs to launch a mask like this to the global market. So I'm really excited about this technology. As a personal user of these types of devices, the idea of moving from a rubber type or a plastic type product to fabric is incredible. I truly think this is a game changer, but very early days, and nothing material to report at this point other than the great technology and the excitement of the commercial team. Thanks for the question, Laura.

Thanks.

Thank you. Our next question today is coming from Craig Wong-Pan from RBC. Your line is now live. Craig, your line...

Craig, if you are there you might be on mute.

Yes. Sorry about that. Thanks for taking my question. I just wanted to touch on the rest of world devices growth. 9% growth is good growth there. I was wondering if there was much benefit coming through from AirSense 11 sales given that they are higher priced. Or if not, could you just explain some of the kind of growth drivers there for rest of world devices?

Yes. Look, Craig, as you know, that's Europe, Asia-Pac and rest of world. So there's quite a lot that goes into that 9% number, certainly very strong. We think we're holding share or taking share in the sort of 140 countries that are included in that broad group of countries. What I can tell you is, it's full competition. All players are in those markets and we're loving that global competition and we're loving having the smallest, quietest, and the most comfortable devices. As you alluded to in your question, there is obviously some combination of the switch from AirSense 10 to AirSense 11 in the countries where that's improved and that has a higher price and a lower COGS point. And so there are some advantages to that. And in the revenue line, you'll see some of that. But I can tell you the vast majority of that -- the vast, vast, vast majority of that is volume and just the growth that we're able to achieve and that we're driving through demand, gen demand capture, and demand conversion in global markets. And I'm really just proud of Andrew Huxter and the team in Europe and Tony Lou in the team in Asia-Pac, they're just up there and performing really well and excited to -- 12 months in their new role is just really excelling. So great to see that. Thanks for the question, Craig.

Thank you. Next question is coming from Margaret Kaczor Andrew from William Blair. Your line is now live.

Hi guys, it's Jimmy on for Margaret. Thanks for taking the question and congrats on a great quarter here. Mick, I wanted to maybe touch on devices here, and it's great to see double-digit growth worldwide. As you've digested the drivers of the strength this quarter and maybe determine what you attribute the strength to. Are you seeing any pull-through from Samsung or the spotlight that GLPs are putting on OSA? And maybe just talk to some of the confidence that might be giving you as you look at how ResMed is trying to make an impact in growing the market longer term?

Yes, Jimmy. Thanks for the question. It's a good one. It allows us to talk to those macro trends and also sort of the micro, what happened these last 90 days. Firstly on the micro, look, U.S., Canada, Latin America device growth was exceptional at 11%. Just want to be clear, that's on a comp of 2% from this time a year ago. So in Q1 2024, we had 2% growth in U.S., Canada, Latin America. So very good growth at 11%, but it's on a relatively low comp. So won't take over credit for that. But what I will say is that we're definitely holding share and taking share in those markets and it's great to have the AirSense 10 and AirSense 11. So we can have the number one rated device in the world, which is the AirSense 11, and the number two rated device in the market, which is the AirSense 10 available for sale there. So I think that has a combination of it. To the specific part of your question around Samsung with their de novo clearance earlier in the year and then Apple with their most recent launch of their latest watch with S, possible sleep apnea detection, and Samsung with de novo FDA clearance for moderate-to-severe sleep apnea detection. I think it's very early days in those new technologies. They've just been rolled out. I think there's a long runway to go as they get them out there. In a long runway, if you think about the analog being Apple Watch launching an EKG capability, what, 5, 5.5 years ago, and it's really now just starting to get good flow-through cardiology. I think it will go faster than that, but it won't be sort of in this one or two quarters since Samsung…

Thank you. Next question is coming from David Low from JPMorgan. Your line is now live.

Thanks very much. Mick, perhaps a similar topic. Mask sales for the last year or so have been double-digit. I'm looking particularly the North American market. Just wondering if you could talk about the drivers there. I mean, what comes to mind is master patient is increasing, adherence is increasing and perhaps ResMed's market share is increasing. Can I get a touch on what you think the drivers are and maybe talk a little bit about what to expect in the future, please?

Yes, David, it's a good question. You helped me answer it with three of the areas where that growth is coming from. Yes, I mean, look, masks and accessories growth in U.S., Canada, Latin America was at 10%, really solid. That was on an extraordinary comp of 23% from Q1 '24 a year ago. And so as you said, solid ongoing double-digits on double-digits growth there. And look, it is, it's a combination of new patients. We're seeing new patient flow to be pretty solid into the system. It's a combination of that plus ReSupply. We are expanding Brightree ReSupply. We're expanding Snap to every Brightree customer that wants it. We actually said three weeks ago at our Investor Day at the New York Stock Exchange, we're going to launch Snap Technologies even to non-Brightree customers. We're going to make it operable with whatever ERP-type management system you're using for your HME. We've got a really good share with Brightree, but if you're not using Brightree, we don't have to convert to Brightree, although we want to -- we to put you on Snap. And so that's a new advance there on ReSupply. So runway left there. Yes, I think the masks per patient per year is going up, but there is still a lot of room. I think there's a lot of people. I mean, I talk to them anecdotally, but if you go out and do your channel checks and research, not everybody knows that reimbursement will pay for two, three, or even four mask systems per year and some people are still getting one mask system per year or less. And so there's a lot of room to improve. Some people are on those programs and they love it and they get on the subscription ones. I…

Thank you. Next question today is coming from Saul Hadassin from Barrenjoey Capital. Your line is now live.

Good morning. Good afternoon, Mick and Brett. Can you hear me?

Hear you loud and clear, Saul.

Thanks, Mick. Maybe one for Brett. Brett, just on working capital, it looked like it was a bit of a headwind this quarter as it related to your operating cash flow and in particular some inventory build. Can you just talk to -- is there sort of just seasonality in this? Is it just some inventory build as it relates to new product launch or any other issues that you're seeing as it relates to the cost of that inventory that's coming through the balance sheet? Thank you.

Yes. Thanks, Saul. Yes, a little bit of increase in our inventory, if you looked at it sequentially on the working capital. What we've done is we're really in the process of rebalancing on sea freight, air freight and particularly trying to mitigate some of those increased freight costs and freight rates. So we've increased some stock in transit, which is on the sea, which is increasing our inventory levels in the short term. There may be a little more of an increase in Q2, but then we think it will be pretty stable after that. It's just a process of balancing that. So part of what we're trying to do to mitigate some of those freight costs.

Thank you.

Thank you. Next question today is coming from Anthony Petrone from Mizuho. Hope your line is now live.

Hi. Thanks. Congratulations on the quarter, and thanks again for all the feedback at the Analyst Day. Maybe a quick one, Mick, on pricing, Mick or Brett. Last year, you put in some price increases, both devices and ReSupply and I think we're approaching the anniversary of a few of those price actions last year. So maybe just a little bit on the pricing strategy going forward. Is that going to be a part of the steady diet? And if I could sneak one in there as well, just U.S. DME purchasing patterns, are they holding more inventory and buying more in bulk just because of the supply situation out there? Thanks again, and congratulations.

Yes. Thanks, Anthony. I'll have a go at both questions. And Brett, feel free to chime in. Anthony is opening up for both of us. But firstly on pricing strategy, look, as we saw during the supply-chain crisis, the impacts on electrical components availability and cost and specifically around semiconductors and comms chips, some really specific price increases we saw from our channel. And as Brett alluded to in his last answer, increase in freight costs -- air freight costs and availability and sea freight costs and availability over the last four, eight, 12 quarters have really flowed into our inventory and had a big hit on us. And so -- and we took that hit. Four, five quarters ago, you saw us take significant hits from that. We are working through that. And so look, as we worked with our customers, we shared some of the pain of those price increases that we saw. We took some of the hit, frankly at ResMed as the market saw and we passed on some of that in saying, look, these costs have gone up. They've gone up for everything, forever, bread, milk, bananas, fruits. I mean, it's happened. And frankly, it's interesting to me on the retail side, not all of them have lowered their prices as things have started to come down. Here at ResMed, look, we're in the healthcare industry. We understand this is controlled reimbursement many countries by governments and private payers. And so we partner up with our channel to say, look, what's happening. And so we shared some of that pain there. I think things are starting to level out somewhat as you saw in our costs. We're managing air freight better, sea freight better. We're moving our way through those high-cost components. We're always wary…

Thank you. Next question is coming from Daniel Hurren from MST Marquee. Your line is now live.

Good morning. Thanks very much. Look, we've noticed that the term tuck. Sorry, can you hear me?

Yes. Got you loud and clear, Dan.

Thanks. Thanks, Mick. Look, we've noticed that this term tuck-in acquisition has become very common in your commentary. And then in the presentation, you pointed out the $1.5 billion in debt capacity. So I was hoping you could talk just to the M&A priorities and the scale of the M&A priorities, I guess, and how you think about capital management as the free cash really start to ramp up over the next 12 months as that debt is retired.

Okay, Dan. Well, I'll take the first part of that question about tuck-in M&A and I'll hand it to Brett to talk about capital management more broadly as our CFO and he sleeps and breathes that. In terms of tuck-in acquisitions, obviously, I'm not going to go into details of our radar and what we're looking at, and conversations we're having. But what I will talk about is what we've done in terms of successful tuck-in acquisitions. So if you look at what we did sort of around three, four years ago with Snap Technologies, that was a tuck-in acquisition. It was de-minimis in terms of the number. I don't think we even published the number. It was relatively small in terms of our annual cash flow. But what it did was it gave us the ability to engage with HMEs and engage with their customers, the patients in ways that we hadn't ever before and brought new technology. So it improved both Brightree's sort of Residential Care Software as a service business, but it also improved our core sleep health and breathing health business by making sure people when they wanted a new mask could easily and capably get approval, co-pays made, all the Is dotted and Ts cross for the healthcare system and then get the product needed that they could get. So we are absolutely out there on the lookout for acquisitions like Snap. Another tuck-in acquisition I'll talk about is called Somnoware. Somnoware is software for pulmonary and sleep medicine physician practices across the respiratory sections, so sleep apnea, COPD, and beyond, all sort of sleep health and breathing health. Again, de-minimis in that we didn't release the total number, we didn't need to, but we got amazing capabilities with that acquisition. A team of engineers…

Yes. Thanks, Mick. And Dan, when you think about the tuck-ins we've got and Mick articulated some great examples, which we think are going to add a ton of value over time, and we're continuously looking at these sort of acquisitions. But in terms of quantum tuck-in, I guess, that's fairly broad, $100 million -- $200 million, it could be given our balance sheet and size now, it could be up to $500 million, Dan. It just depends what the acquisitions strategically like, financially like, culturally like, and then what sort of capability it can bring into ResMed and how we might leverage that. So we think pretty hard about it before we actually make the acquisition. But it's been really good acquisitions over the last two or three years and there's more out there as the market continues to develop. So anything in that range, I think we would look at. And then the other side on capital management and you heard my comments earlier, we will increase the buyback each quarter going forward and that obviously remains a lever for us going forward. So that's kind of the two areas, I guess, will -- well, three really. Fundamentally R&D investment where we get -- that's the greatest return we get. We'll look at, as Mick said, we'll look at the tuck-in acquisitions and then we'll do some capital management as well. That's kind of the three areas of focus.

Thank you. Next question is coming from Mike Matson from Needham & Company. Your line is now live.

Yes. Thanks for taking my question. I guess, I just wanted to ask one. So with the new - on masks with the new N30i with that fabric over the straps, is that a technology that you can apply to other masks in your portfolio? And then is that something that you're able to get a price premium for?

Yes, it's a great question, Mike, and thanks for coming to our Investor Day. You were able to touch and see that product because I think you've really got to touch and see what the AirTouch N30i is. It's in its name, right? It's an AirTouch. That fabric is -- it's extraordinarily advanced technology. As I said, we've been looking for a decade at fabrics and how to get them at scale and with efficacy on a mask that could be ResMed quality, and we were able to bring that to market. To your question, can we apply that technology to other masks? Absolutely. I think this is a game changer and it changes the basis of competition for how patient interfaces are delivered from plastics and rubbers sort of medical-type products that you might find in a hospital to ones that you might find at home. People sleep on cotton or silk fabric sheets. They have a cotton-covered pillow. They don't sleep on plastic, why should that part be delivering care on your face? If we can get the pneumatic stent at safety, efficacious, and long-term capability. But to your question, yes, it is a higher cost. It's more difficult to have these machinery robotics and scalable systems that can do this even with ResMed having the biggest manufacturing footprint on the planet in the field of respiratory medicine, sleep health, and breathing health, it's costs are still higher with a new technology like this. So pricing will be slightly higher for these types of products because the costs are higher. But I think what you'll find is that first-time fit rates will go up, that return rates will go down, and that adherence rates will go up. As we do with all our technology, that's the goal, lower the cost of the overall healthcare system, improve adherence, which means less chances of heart attack, stroke, less chances of death as we've shown in the Alaska study for patients who are adherent on CPAP versus not. And we think that these types of improvements will have a huge return on investment for the patient, for the physician, for the provider as we launch them to market. So yes, the AirTouch N30i is coming out. It will have a price premium because it's got a higher cost. We can't take it to other masks and we will over time. But early days, we're just launching it next week. Lots of interest and excitement from our commercial team and the customers who sort of got a sneak preview and we're excited about AirTouch N30i and what it can do more broadly across the world.

Thank you. Next question is coming from Brett Fishbin from KeyBanc Capital Markets. Your line is now live.

Hi, guys. Thanks so much for taking the questions. Just wanted to follow up a little bit on the macro tailwind around the wearable tech platforms. You've talked about it a bunch at the Investor Day and then again on today's call. I was just curious if you could maybe touch on a few potential strategies that the company could be looking at that would best position ResMed to capture potential increases in new patient demand driven by the adoption of these technologies. Thank you so much for taking the question.

Yes, it's a great question, Brett. I mean, it's a complex answer. It could take all of the eight minutes we got less left on the call and longer. But as you heard in the sort of four-hour overview that we gave on our Investor Day three weeks ago, there is lots of things we're doing in this. The broad categories are demand generation, demand capture, and demand conversion, three areas. Now if big tech and big pharma are taking on some of that demand gen, right, driving people into PCPs, driving people into our specialist sleep physicians, then what we have to do at ResMed is take the next phase in that. So what we have to do is have products like Dawn, our generative AI interaction format that can talk and engage with patients to help them if they've just got sleep health questions about getting better sleep, drinking more water, exercising more, less alcohol after certain times, less caffeine after certain times, different food and timing of food intake, all these types of broader sleep health can be conducted by a bot at levels that are just human banks of callers don't have time for and don't spend as much time on and people can be embarrassed to ask some questions about sleep health and breathing health. There's a stigma associated with all healthcare and that's why companies like Hims & Hers and all these other type of digital platforms are out there and achieving some success. And so ResMed wants to be that digital sleep health concierge. And the -- as I said, the answer is complex. It's more than just DAN, it's more than just Somnoware, it's more than just myAir, it's more than just AirView and the whole combination. But it is those components…

Thank you. The next question is coming from Suraj Kalia from Oppenheimer. Your line is now live.

Hi, Mick, Brett, hope you're well. So my congrats…

Thanks very much, Suraj.

Congrats on a great quarter. Mick, I want to piggyback on Anthony's question, right? So your normal -- your nominal growth right now is a perfect trifecta of pushing more ReSupply masks to patient price increases. And I believe Brett mentioned something about a little bit of inventory also to cater to patients just in time. Mick, as we think forward, how do you -- how would you say ResMed is buffered from a potentially more price-sensitive environment if and when Philips returns to the market? Thank you for taking my questions and congrats again.

Yes. Thanks for the question, Suraj. Look, as you said, there is some really interesting overlays between our more masks and the technology we're bringing to market, our pricing strategies, and our inventory management strategies. With regard to the competitor you mentioned, look, as I said, we just announced pretty good growth in Europe, Asia, rest-of-world, right, 9% growth in devices, 11% growth in masks and accessories. That competitor is available in almost all of the 140 countries we're in, and they've been there for many, many, many quarters. And so love them. I love to compete with them. I love to beat them. I do the same with all the other competitors. I love the players from Europe and Asia. Competition is a fantastic thing for ResMed. We love it. It keeps us on our toes. And we were beating that particular competitor all the way from 2001 through to 2021 as they had the recall in the U.S. in devices, which is the only area, right? So we've been ongoing competition with them in masks the whole time and they've been out for a couple of years, two to three years now in devices. Look, I look forward to them coming back here. They'll have to fight for that number two, number three position against some other players with importing product from China and Europe that they've sort of taken that number two, number three position. And I think they've got to set up new manufacturing and get new sales team and I look forward to them coming back. We will be beating them before their recall and we will beat them after. But look, I don't spend that much time or my time looking back at the competition from Europe or Asia or that particular player from Europe. I look more forward and I think about these macro trends and what we can do to take care because this isn't just a share game. What we've got is a sustainable competitive advantage in a digital health ecosystem that patients engaging with myAir, doctors engaging with AirView and more importantly, consumers, persons who just suffocate coming in, they don't know where they want to go. We want to help them find that pathway and be objective about it and then they will choose the smallest, quietest, most comfortable, most connected, and most intelligent therapies. That's how ResMed competes and that's how ResMed wins.

Thank you. Next question is coming from Lyanne Harrison from Bank of America. Your line is now live.

Good morning all and congratulations on a very strong quarter. Can you comment a little bit on the production of AirSense 11? You mentioned you're increasing and you're targeting it to come off allocation at the end of this calendar year. Is that still on track? And then also, can you comment on the mix of AS11 to AS10 devices that you're selling in the United States? And do you have a sense that there might be a [rePAP] backlog waiting for the AirSense 11 still?

Thanks, Lyanne. Yes, there is a lot in that question and we're almost right on time. We may have one more question I think. So yes, as you said, production of AirSense 11 is firing on all cylinders. Our Singapore plant, which as I said earlier, is the largest manufacturing plant in the world for respiratory medical care that thing is pumping out and really at full capacity. And I'm really excited to have AirSense 11s coming off that line and AirSense 10s coming out of there in Sydney and beyond and through Atlanta and through our distribution centers throughout Asia and Europe. And so to your specific question, AirSense 11 firing and really, really strong rate limiters to growth are just that we're the number one and number two player between AirSense 11 and AirSense 10 in many of these markets. And so there is a mix, as you said. In the U.S. specifically, you asked Lyanne, well over 50%, vast majority of products sold in the U.S. are AirSense 11s. To the final part of your question, do we think that there are people sort of at that, oh, I've been on therapy for five years and insurance will pay for a new one, I'm waiting until AirSense 11 is available? Yes, maybe some -- a little bit of a backlog with some particular consumers. But if you really want one, a consumer at that level might be going to one of the online dealers or looking at other ways to make sure they get in line for an AirSense 11. So I think there's always a bit of a backlog. I always think that rePAP opportunity is huge for us. We don't spend enough time on it. Our customers don't spend enough time on it. We've gotten really sophisticated at ongoing ReSupply for masks, tubing, and accessories. I think we need to be better at rePAP on a regular basis. And so it's a good call out and the team are on it with many things going on to make sure that as we get full AirSense 11 capabilities, everyone who's at that five-year point gets the chance to say, yes, I want the latest and greatest therapy, smallest, quietest most comfortable, most connected and most intelligent, and that's the AirSense 11. So we will continue to do that. As I said in the prep remarks, I think there's a long runway, lots of momentum left on the AirSense 11.

Thank you. Our final question today is coming from Andrew Paine from CLSA. Your line is now live.

Question, look just going back to the rest of world devices and just thinking about the AE sales, just be good to get some views on competition that you're seeing in the region, in particular, if you're seeing a declining presence from Philips in some of these markets, which would open you up to taking larger market share?

Yes, Thanks for the question, Andrew. And yes, look, we're competing with another particular European player, probably a little bit more than the one you mentioned, but we're competing with both of them very well as you saw with Europe, Asia, rest of world device growth at 9%. We don't break that out and say exactly what component of that is Europe versus Asia-Pac versus rest of world and we did have very good growth in our Japan markets and China markets and other parts of Asia-Pac. But Europe is doing very well. As I said, I'm really proud of the team there. We've really brought together our pan-European management team over these last 12 months under our Global Chief Revenue Officer, Mike Fliss, and our regional leader there in Andrew Huxter. And I think that combination of communication and partnership across our team has allowed us to provide customers even more seamless and better service, better marketing, better sales, better delivery of products. And we've not always been the best in that final mile of delivery, that final kilometer of delivery that we need to have in Europe and we're getting better and better at it. So I think it's a combination of the products, AirSense 11, the communication through our commercial teams, and the supply chain and logistics that we're really partnering up with customers that have allowed us to achieve that. The competitive environment is what it always was, but as you see in those numbers, ResMed is doing well, competing hard and winning accounts, winning tenders, and winning share. But more importantly than that, we're partnering up to ensure a good flow of patients into the funnel. That's ResMed's primary goal, more patients into the funnel, help them get best-in-class care. Thank you for the questions, team. I'll now hand the call over to Kevin.

We've reached the end of our question-and-answer session. Mick, do you have any further or closing comments?

Yes. Look, I got the prepared remarks here, I'm not going to say all that. Thanks to 10,000 ResMedians, 140 countries, you guys are doing amazing things. Thank you to all our shareholders for the support. Incredible quarter. Let's power up and let's do it again for another 90 days. And with that, Amy, I'll hand over to you to close out the call. End of Q&A:

Awesome. Thank you, Mick. Thank you everyone for listening, for your questions, and we do appreciate your interest. If you have follow-up questions or need anything else, please don't hesitate to reach out to us directly. This does conclude our first quarter 2025 conference call. Kevin, you may now close the call.

Thank you. This concludes ResMed's first quarter fiscal year 2025 earnings live webcast. You may now disconnect.