InMode (INMD) shares ended the last trading session 6.8% higher at $15.46. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 23% loss over the past four weeks.The upside can be attributed to relief-rally across global markets following the announcement of a 90-day pause on tariff hike by the United States.This maker of cosmetic surgery devices is expected to post quarterly earnings of $0.45 per share in its upcoming ...

Just over a year ago, I wrote my first article about InMode (NASDAQ: INMD ), where I recommended the shares as a Hold due to management’s inefficient capital allocation. If you haven't seen it, I recommendMy name is Guilherme Nunes, and I am a certified stock analyst in Brazil with over 10 years of experience analyzing and publishing reports on companies in Brazil, Chile, and the United States.Throughout my career, I’ve focused primarily on small-cap companies, applying a deep value investment approach. Cur ...

YOKNEAM, Israel, March 26, 2025 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD), a leading global provider of innovative medical technologies, today announced that Moshe Mizrahy, Chief Executive Officer, and Yair Malca, Chief Financial Officer, will present at the 24th Annual Needham Virtual Healthcare Conference on April 8, 2025.The fireside chat, moderated by Michael Matson, Senior Equity Analyst, is scheduled for 2:15 pm Eastern Time on Tuesday, April 8, and a live webcast of the presentation can be accessed ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-a ...

Core Viewpoint - InMode Ltd. addresses concerns raised by DOMA Perpetual Capital Management regarding its capital allocation strategy, operational management, and shareholder relations, asserting its commitment to returning value to shareholders through buy-back programs and strategic management decisions [1][2]. Capital Allocation Strategy - InMode has returned approximately $500 million to shareholders since early 2022 through the repurchase of nearly 30% of its shares, with ongoing buy-back programs targeting 10% of shares annually for 2023, 2024, and 2025 [3][4]. - The company is exploring additional capital returns by the end of 2025, aiming to enhance shareholder value further [4]. - InMode emphasizes a strategic and balanced approach to capital allocation, ensuring sufficient cash availability for potential M&A opportunities [6]. Operational Management - Claims regarding a crucial sales management position being left empty are refuted; InMode has maintained its organizational structure and promoted internal talent to fill key roles [7][8]. - The company asserts that its manufacturing facilities are fully capable and compliant with regulatory standards, negating the need to relocate production outside of Israel [10][11]. Research and Development - InMode continues to invest in R&D, launching two new platforms or indications annually, with a robust pipeline of at least ten projects at any given time [12]. - The company actively evaluates new technologies and startups in Israel to enhance its product portfolio and has recently acquired patents to strengthen its intellectual property [13]. M&A Strategy - InMode is pursuing M&A opportunities with patience, focusing on candidates that align with its portfolio and contribute positively to earnings per share [14][15]. - The company acknowledges the need for sufficient cash reserves to capitalize on strategic acquisition opportunities when they arise [15]. Shareholder Relations - InMode maintains transparency and professionalism in its communications with shareholders, rejecting the notion that legal threats from DOMA contribute positively to shareholder value [16].

Company Overview - InMode Ltd. operates in the non-invasive plastic surgery market, benefiting from a market boom in this sector [1] - The company demonstrates positive cash flow from operations and significant international expansion [1] Investment Insights - The business model is positioned well within growing markets, indicating potential for future growth [1] - The analyst expresses a long position in InMode shares, suggesting confidence in the company's performance [2]

Financial Data and Key Metrics Changes - InMode generated $97.9 million in revenue for Q4 2024, with a gross margin of 79% on a GAAP basis [18] - For the full year 2024, revenue totaled $394.8 million, a decrease of 20% compared to 2023 [19] - Non-GAAP gross margin remained high at 80% for Q4 and 81% for the full year of 2024 [19] - GAAP diluted earnings per share for Q4 were $1.14, compared to $0.64 in Q4 2023, and $2.25 for the full year 2024, down from $2.30 in 2023 [23] - Non-GAAP diluted earnings per share for Q4 were $0.42, compared to $0.71 in Q4 2023, and $1.76 for the full year 2024, down from $2.57 in 2023 [24] Business Line Data and Key Metrics Changes - Minimally invasive technology platforms accounted for 86% of total revenues in Q4 and 87% for the full year 2024 [19] - Consumables and service accounted for 20% of revenue in 2024, up from 16% in 2023 [19] - Sales and marketing expenses slightly increased to $44.7 million in Q4 compared to $49.5 million in the same period last year [21] Market Data and Key Metrics Changes - Fourth quarter sales outside the U.S. were $35.2 million, a 23% decrease compared to Q4 last year [20] - For the full year 2024, sales outside the U.S. accounted for $150 million, a 19% decrease compared to 2023 [20] Company Strategy and Development Direction - InMode launched two new platforms in 2024, IgniteRF and OptimasMAX, with expectations for better adoption in 2024 [8][11] - The company plans to launch two new platforms in 2025, including a fractional laser CO2 platform [12] - InMode is focused on maintaining its leadership position in the aesthetic market through continuous innovation [12] Management's Comments on Operating Environment and Future Outlook - Management noted that 2024 was challenging due to intense headwinds in the aesthetic industry and broader macroeconomic factors [7] - There is no current optimism for an economic turnaround in early 2025, with management indicating that conditions may improve later in the year [36][37] - The company is exploring M&A opportunities but has not found suitable targets [32] Other Important Information - In 2024, InMode returned over $285 million to shareholders through share repurchases, representing approximately 19% of share capital [15] - A new share repurchase program of up to 10% of share capital has been approved to be executed over the next 3 to 6 months [15] Q&A Session Summary Question: Thoughts on capital deployment and M&A opportunities - Management is always exploring M&A opportunities but has not found suitable targets yet [32] Question: Insights on economic indicators and potential recovery - Management does not see signs of economic recovery in early 2025 [36] Question: Update on management structure and changes - Management changes were implemented in 2024 to enhance sales and marketing effectiveness [40] Question: Understanding the cadence of demand recovery - A decrease in demand for minimally invasive procedures was noted, with expectations for recovery tied to interest rate reductions [48] Question: Comments on supply chain risks and tariffs - Management does not foresee significant impacts from potential tariffs due to multiple suppliers and good relations with the U.S. [60] Question: Performance of consumables in the U.S. - The decline in consumables was consistent across all territories, including North America [65] Question: EPS guidance and share repurchases - Future share repurchase programs are not included in EPS guidance [71] Question: Impact of supply chain challenges on sales - The decrease in revenue was primarily due to lower demand rather than supply chain issues [76] Question: Replacement cycle for existing systems - The average age of installed systems is not very old, and promotions for upgrades are planned for 2025 [81][83] Question: Gross margin performance and factors affecting it - Gross margin slipped due to lower volumes and increased component costs, but management expects recovery in 2025 [89] Question: Timing and positioning of the CO2 laser - The CO2 laser is expected to gain traction in the U.S. market by the end of Q1 or beginning of Q2 2025 [97]

Product Development and Innovation - The company introduced two new product platforms, IgniteRF and OptimasMAX, in 2024, expanding its offerings to a total of fourteen product platforms[34]. - The company is developing new RF energy-based platforms and handpieces targeted towards medical specialties, including a device for treating erectile dysfunction and a platform for ENT applications[198]. - The company believes its RF energy-based proprietary technologies represent a paradigm shift in the minimally invasive aesthetic solutions market, addressing issues such as scarring and downtime associated with traditional surgical procedures[192]. - The company aims to satisfy unmet market demand by targeting patients who are averse to surgical procedures due to costs, downtime, and safety risks[193]. - The company’s focus on innovation has resulted in a strong track record of sustained new product development, which is viewed as a competitive advantage[195]. - The company is expanding its product offerings with innovative non-invasive technologies, including the Triton for permanent hair reduction and high-power IPL for improved efficacy[216]. - The company has a robust R&D pipeline focused on new minimally and non-invasive applications, targeting conditions such as stress urinary incontinence and erectile dysfunction[224]. - The company has developed a modular product platform that allows for complementary treatments using a single system, increasing operational efficiency for physicians[219]. - The company intends to expand its intellectual property and patent portfolio to protect its innovations and maintain a competitive edge[224]. Market and Sales Strategy - The company aims to penetrate traditional customer bases and expand into non-traditional markets, including ENT physicians and general practitioners, to drive revenue growth[36][51]. - The company is actively pursuing business development opportunities, including potential acquisitions and strategic partnerships, to enhance its product and technology portfolio[41]. - International sales accounted for approximately 38% of total revenue for the year ended December 31, 2024, with expectations for increased future revenue from international markets[62]. - The company plans to expand its direct sales presence in the United States and Canada, and establish sales organizations in Europe and Latin America to broaden market penetration[220]. - Approximately 92% of U.S. revenues in 2024 were derived from minimally invasive platforms, highlighting the company's focus on this segment[202]. Financial Performance and Risks - Revenue decreased to approximately $394.8 million for the year ended December 31, 2024, down from approximately $492.0 million in 2023, representing a decline of about 20%[201]. - Gross margin for the years ended December 31, 2024, 2023, and 2022 was approximately 80%, 84%, and 84%, respectively, indicating a decrease in profitability[201]. - The company’s financial results may fluctuate due to various factors, including order timing and operational challenges, which could lead to disproportionate expenditure levels[48]. - The company faces significant risks including market acceptance of its products, reliance on a limited number of suppliers, and potential product liability suits that could impact financial results[33][50][43]. - The ongoing Israel-Hamas war and regional instability could impede the company's operations and financial performance[33][50]. - The company faces intense competition from both public and private companies, which could lead to reduced prices, profit margins, and market share[53]. - Customers' financial stability is crucial, as economic downturns may lead to reduced purchases and delayed payments, increasing credit risk exposure[85]. Regulatory and Compliance Challenges - The company is subject to extensive FDA regulations, and failure to comply could harm its commercial operations and ability to market products[123]. - The FDA's 510(k) clearance process typically takes 3 to 12 months, while premarket approval can take 1 to 3 years or longer, impacting the timely introduction of new products[124]. - Regulatory changes, such as those proposed by the FDA, could impose additional requirements that may delay product approvals and increase compliance costs[129]. - The company must comply with ongoing regulatory obligations, and failure to do so could result in enforcement actions, including substantial penalties[135]. - Non-compliance with regulatory requirements could lead to severe sanctions, including product recalls or seizures, adversely affecting the company's financial condition[138]. - The company is required to comply with the FDA's Quality System Regulation (QSR) and laser performance standards, which include specific record-keeping and product testing requirements[139]. - The company must report adverse medical events to the FDA, and failure to do so could result in sanctions that harm its reputation and financial condition[141]. Cybersecurity and Data Protection - Cyber-attacks and data breaches pose significant risks, potentially leading to liability and reputational harm[87]. - The company is subject to various data protection laws, including GDPR, which impose strict compliance obligations and potential penalties for non-compliance[92]. - The company may face increased costs and regulatory scrutiny due to evolving data protection laws and regulations[90]. - The company faces increased risks of cyberattacks on its IT networks due to the ongoing conflict, which could negatively impact its business and financial condition[171]. Intellectual Property and Legal Risks - The company may incur substantial monetary liability for infringement of intellectual property rights, which could have a material adverse effect on its financial condition[114]. - The company may face significant challenges in intellectual property litigation due to competitors having greater resources, which could adversely affect its business and financial condition[116]. - The company may need to indemnify customers against third-party intellectual property claims, potentially leading to costly litigation and damages[117]. - The company is subject to various anti-bribery, anti-corruption, and anti-money laundering laws, with potential penalties for non-compliance that could impact its financial condition[99]. Operational Challenges - The company outsources nearly all manufacturing to a few subcontractors, which poses risks of business interruption and increased costs if operations are disrupted[69]. - The company faces risks from potential disruptions in supply chains due to natural disasters, labor shortages, or economic instability, which could adversely affect operations and financial performance[77]. - The ongoing Israel-Hamas conflict may disrupt operations, delay shipments, and adversely affect financial results due to potential regulatory review delays[66][67]. - The company may experience delays in supplier deliveries and increased costs due to disruptions in the Red Sea, a vital maritime route for international trade[172]. Shareholder and Market Considerations - The company has not paid dividends in the past and may not do so in the future, limiting returns on investment to share price appreciation[152]. - Shareholder activism could lead to significant costs and management distraction, potentially impacting the company's operations and stock price[155]. - The company is classified as a "foreign private issuer," which allows it to follow less detailed and less frequent reporting obligations compared to U.S. domestic issuers[159]. - The company may lose its foreign private issuer status if a majority of its outstanding shares are held by U.S. residents or if a majority of its directors or executive officers are U.S. citizens or residents[160].

Company Overview - InMode Ltd. is a leading global provider of innovative medical technologies, focusing on developing, manufacturing, and marketing devices that utilize novel radiofrequency (RF) technology [3] - The company aims to enable new surgical procedures and enhance existing treatments through its minimally invasive RF technologies [3] - InMode offers a comprehensive line of products across various medical categories, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [3] Investor Engagement - Yair Malca, the Chief Financial Officer of InMode, will host investor meetings at the BTIG MedTech, Digital Health, Life Sciences & Diagnostics Tools Conference on February 12, 2025 [1] - Interested investors are encouraged to contact their BTIG salesperson to schedule a meeting [1]

Group 1 - InMode Ltd. (NASDAQ: INMD) is highlighted as a company with strong fundamentals trading at lower market multiples, which is rare in the current market environment [1] - The company has consistently posted impressive financials since its inception, indicating robust operational performance [1] - The author emphasizes a value investing approach, focusing on deep value plays and conservative discounted cash flow calculations, which aligns with the investment philosophy of renowned investors like Warren Buffett and Benjamin Graham [1]