A new operating model was introduced, focusing on dedicated leadership in Product, Revenue, and Marketing. The goal is to increase product development velocity and sharpen customer focus.

The company invested $307.5 million in R&D, representing 6.6% of net revenues. This demonstrates a commitment to developing innovative products and solutions.

The company offers products in more than 140 countries and intends to increase sales and marketing efficiency in principal geographies, as well as expand the depth of presence in other high-growth geographic regions.

The company incurred $64.2 million in restructuring expenses, indicating efforts to streamline operations and reduce costs. These measures are intended to improve long-term profitability.

Operating cash flow was $1.40B, enabling investments in R&D, acquisitions, and shareholder returns. This highlights effective capital management.

The company is expanding its cloud-based patient management and engagement platforms, such as AirView, enabling remote monitoring, over-the-air trouble shooting, and changing of device settings.

The company faces intense competition in its markets, characterized by frequent product improvements and evolving technology. Competitors may develop new devices, treatments, or cures that could make the company's products noncompetitive or obsolete.

Global macroeconomic conditions, including inflation and supply chain disruptions, could adversely affect the company's operations and profitability. Constraints on raw materials and electronic components may impact the company's ability to manufacture products.

Healthcare reform and other cost-cutting measures by government or commercial payors may have a material adverse effect on the company's industry and results of operations. Government and private insurance plans may not adequately reimburse the company's customers for its products.

We believe that the principal competitive factors are product features, value-added solutions, quality, reliability and price. Customer support, reputation and efficient distribution are also important factors.

For our SaaS business, competition is also intense, rapidly evolving, and subject to changing technology, low barriers to entry, shifting customer needs, and frequent introductions of new products and services.

An important factor in such competition may be the timing of market introduction of competitive products and solutions. Accordingly, the speed with which we can develop products and solutions, complete clinical testing and regulatory clearance processes, and provide commercial supply of products and solutions to the market are important competitive factors.

Gross margin increased to 56.7% from 55.8% YoY, driven by reduced freight costs, manufacturing improvements, and a favorable product mix. This indicates improved cost management and pricing strategies.

The company incurred $64.2 million in restructuring expenses, indicating efforts to streamline operations and reduce costs. These measures are intended to improve long-term profitability.

Our manufacturing operations consist of specialist component production as well as technical assembly and comprehensive testing and quality control of our devices, masks, and accessories.

The company invested $307.5 million in R&D, representing 6.6% of net revenues. This demonstrates a commitment to developing innovative products and solutions.

The company is expanding its cloud-based patient management and engagement platforms, such as AirView, enabling remote monitoring, over-the-air trouble shooting, and changing of device settings.

Sleep apnea is associated with a number of symptoms beyond excessive daytime sleepiness, fatigue and irritability. Studies have established a clinical association between untreated sleep apnea and systemic hypertension, diabetes, coronary artery disease, stroke, atrial fibrillation, chronic heart failure, and mortality.

The company repurchased approximately 828,000 shares for $150.0 million during the year, demonstrating a commitment to returning value to shareholders.

The company paid cash dividends of $1.92 per common share, totaling $282.3 million. This reflects a consistent dividend policy.

The company completed the acquisition of MEDIFOX DAN for $997.5 million, expanding its SaaS business. This highlights a strategic focus on growth through acquisitions.

Our board of directors and its committees provide general oversight on a range of our human capital management efforts. This includes environmental, social, and governance efforts addressed below.

Our BIDS team strives to impact and develop solutions, campaigns, and programs for our people, patients, and products to drive our overall success.

We work closely with business partners across the organization and recruiters on sourcing ideation and outreach initiatives that align with our values.

Government and private insurance plans may not adequately reimburse our customers for our products, which could result in reductions in sales or selling prices for our products.

Our use and disclosure of personal information, including health information, is subject to federal, state and foreign privacy, artificial intelligence, data, biometrics and security regulations, and our failure to comply with those regulations or to adequately secure the information we hold could result in significant liability, regulatory investigations, legal actions, or reputational harm.

Product sales, introductions or modifications may be delayed or canceled as a result of FDA regulations or similar foreign regulations, which could cause our sales and profits to decline.