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InMode(INMD) - 2022 Q2 - Quarterly Report
2022-07-28 11:00
Exhibit 99.1 InMode Reports Second Quarter 2022 Financial Results; Record Quarterly Revenue of $113.5M, Represents 30% Year-Over-Year Growth YOKNEAM, Israel, July 28, 2022--InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2022. Second Quarter 2022 Highlights: | U.S. GAAP Results | | | | --- | --- | --- | | (U.S. dollars in thousands, except for per share data) | | | | ...
InMode(INMD) - 2022 Q1 - Earnings Call Transcript
2022-05-02 15:15
InMode Ltd. (NASDAQ:INMD) Q1 2022 Earnings Conference Call May 2, 2022 8:30 AM ET Company Participants Miri Segal - Investor Relations Moshe Mizrahy - Chairman and Chief Executive Officer Michael Kreindel - Co-Founder and Chief Technology Officer Yair Malca - Chief Financial Officer Shakil Lakhani - President, North America Spero Theodorou - Chief Medical Officer Rafael Lickerman - Vice President, Finance Conference Call Participants Mike Matson - Needham & Company Jeff Johnson - Baird Operator Hello and we ...
InMode(INMD) - 2022 Q1 - Quarterly Report
2022-05-02 11:00
[InMode First Quarter 2022 Financial Results](index=1&type=section&id=InMode%20First%20Quarter%202022%20Financial%20Results) [Financial Highlights](index=1&type=section&id=First%20Quarter%202022%20Highlights) InMode reported strong Q1 2022 results with 31% revenue growth to $85.9 million and 16% GAAP net income increase Q1 2022 vs Q1 2021 Financial Highlights | Metric (U.S. dollars in thousands, except per share) | Q1 2022 | Q1 2021 | Change YoY | | :--- | :--- | :--- | :--- | | **GAAP Results** | | | | | Revenues | $85,921 | $65,524 | +31% | | Gross Margin | 83% | 85% | -2 p.p. | | Net Income | $30,975 | $26,643 | +16% | | Diluted EPS | $0.36 | $0.31 | +16% | | **Non-GAAP Results** | | | | | Gross Margin | 83% | 85% | -2 p.p. | | Net Income | $34,069 | $29,341 | +16% | | Diluted EPS | $0.40 | $0.34 | +18% | * Record quarterly revenues from consumables and service reached **$14.0 million**, a significant increase of **79%** compared to the first quarter of 2021[6](index=6&type=chunk) * The company's total cash position, including cash, cash equivalents, marketable securities, and short-term bank deposits, was **$399.5 million** as of March 31, 2022[6](index=6&type=chunk) * Minimally invasive and subdermal ablative treatment platforms constituted **80%** of quarterly revenues[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Comments) Management expressed confidence, highlighting supply chain mitigation, reaffirmed 2022 guidance, and ongoing R&D * CEO Moshe Mizrahy stated that 2022 started strongly despite global market uncertainty and that the company successfully mitigated the impact of supply chain challenges and shipment price increases on gross margins[5](index=5&type=chunk) * CTO Dr. Michael Kreindel confirmed continued R&D investment in new features for existing platforms and development in new categories such as women's health, ENT, and ED[7](index=7&type=chunk) * President of North America, Shakil Lakhani, reported record consumable sales, indicating a growing platform utilization rate, and anticipates North America will remain the main revenue contributor[8](index=8&type=chunk) * CMO Dr. Spero Theodorou noted that the innovative EmpowerRF platform is receiving positive feedback, supporting the company's expansion into the women's health market[8](index=8&type=chunk) [Detailed Financial Results](index=2&type=section&id=First%20Quarter%202022%20Financial%20Results) Q1 2022 revenue grew 31% YoY to $85.9 million, with GAAP gross margin slightly decreasing to 83% * Total revenues for Q1 2022 reached **$85.9 million**, a **31%** increase compared to Q1 2021[9](index=9&type=chunk) * Revenues outside the U.S. grew **51%** year-over-year and represented **38%** of total revenues[9](index=9&type=chunk)[10](index=10&type=chunk) * GAAP gross margin for Q1 2022 was **83%**, down from **85%** in Q1 2021, attributed to increased international distributor sales, higher consumable sales, and increased freight costs[11](index=11&type=chunk) * GAAP operating margin was **41%** in Q1 2022, consistent with Q1 2021, while Non-GAAP operating margin was **44%** compared to 45% in Q1 2021[12](index=12&type=chunk) [2022 Financial Outlook](index=3&type=section&id=2022%20Financial%20Outlook) InMode management reiterated its full-year 2022 guidance, projecting revenues of $415-425 million Full Year 2022 Guidance | Metric | Expected Range | | :--- | :--- | | Revenues | $415 million - $425 million | | *Non-GAAP Gross Margin | 84% - 86% | | *Non-GAAP Income from Operations | $199 million - $204 million | | *Non-GAAP Earnings per Diluted Share | $2.06 - $2.11 | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section provides detailed unaudited consolidated financial statements for Q1 2022 [Condensed Consolidated Statements of Income](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For Q1 2022, InMode reported total revenues of $85.9 million and net income of $31.0 million Condensed Consolidated Statements of Income (Unaudited, U.S. dollars in thousands) | | Three months ended March 31, | | :--- | :--- | :--- | | | **2022** | **2021** | | **REVENUES** | **85,921** | **65,524** | | COST OF REVENUES | 14,772 | 10,079 | | **GROSS PROFIT** | **71,149** | **55,445** | | TOTAL OPERATING EXPENSES | 36,141 | 28,674 | | **INCOME FROM OPERATIONS** | **35,008** | **26,771** | | INCOME BEFORE TAXES | 35,387 | 26,815 | | **NET INCOME ATTRIBUTABLE TO INMODE LTD.** | **30,975** | **26,643** | | **Diluted EPS** | **$0.36** | **$0.31** | [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2022, InMode reported total assets of $464.5 million, with cash and equivalents at $399.5 million Condensed Consolidated Balance Sheets (Unaudited, U.S. dollars in thousands) | | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **TOTAL CURRENT ASSETS** | **454,848** | **470,114** | | **TOTAL ASSETS** | **464,466** | **478,541** | | **TOTAL CURRENT LIABILITIES** | **49,818** | **51,850** | | **TOTAL LIABILITIES** | **61,148** | **62,739** | | **TOTAL SHAREHOLDERS' EQUITY** | **403,318** | **415,802** | | **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | **464,466** | **478,541** | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For Q1 2022, net cash from operations was $31.9 million, with significant cash used in financing activities Condensed Consolidated Statements of Cash Flows (Unaudited, U.S. dollars in thousands) | | Three months ended March 31, | | :--- | :--- | :--- | | | **2022** | **2021** | | **Net cash provided by operating activities** | **31,853** | **24,766** | | Net cash (used in) investing activities | (12,692) | (37,608) | | Net cash provided by (used in) financing activities | (42,476) | 9,028 | | **NET DECREASE IN CASH AND CASH EQUIVALENTS** | **(23,466)** | **(4,037)** | | CASH AND CASH EQUIVALENTS AT END OF PERIOD | 44,670 | 64,901 | [Financial Highlights by Geography, Category, and Technology](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20FINANCIAL%20HIGHLIGHTS) In Q1 2022, the United States accounted for 62% of revenue, with capital equipment and minimally invasive platforms as primary drivers Revenues by Geography (Q1 2022 vs Q1 2021) | Geography | Q1 2022 Revenue (U.S. dollars in thousands) | % of Total | Q1 2021 Revenue (U.S. dollars in thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | United States | $53,606 | 62% | $44,065 | 67% | | International | $32,315 | 38% | $21,459 | 33% | | **Total** | **$85,921** | **100%** | **$65,524** | **100%** | Revenues by Category (Q1 2022 vs Q1 2021) | Category | Q1 2022 Revenue (U.S. dollars in thousands) | % of Total | Q1 2021 Revenue (U.S. dollars in thousands) | % of Total | | :--- | :--- | :--- | :--- | :--- | | Capital equipment | $71,943 | 84% | $57,731 | 88% | | Consumables and service | $13,978 | 16% | $7,793 | 12% | | **Total** | **$85,921** | **100%** | **$65,524** | **100%** | [Reconciliation of GAAP to Non-GAAP Statements of Income](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20TO%20NON-GAAP) This table reconciles GAAP to Non-GAAP financial measures for Q1 2022, primarily adjusting for share-based compensation GAAP to Non-GAAP Reconciliation for Q1 2022 (U.S. dollars in thousands) | | GAAP | Share Based Compensation | Non-GAAP | | :--- | :--- | :--- | :--- | | GROSS PROFIT | 71,149 | 314 | 71,463 | | INCOME FROM OPERATIONS | 35,008 | 3,094 | 38,102 | | NET INCOME ATTRIBUTABLE TO INMODE LTD. | 30,975 | 3,094 | 34,069 | | Diluted EPS | $0.36 | | $0.40 |
InMode(INMD) - 2021 Q4 - Earnings Call Transcript
2022-02-10 17:34
Financial Data and Key Metrics Changes - The company reported a record revenue of $110.5 million for Q4 2021, representing a 47% increase year-over-year, and a full-year revenue of $357.6 million, up 73% compared to 2020 [7][18] - Net income for Q4 2021 was $52.7 million on a GAAP basis and $55.2 million on a non-GAAP basis, while full-year net income reached $165 million on a GAAP basis and $176.3 million on a non-GAAP basis [8] - The gross margin for Q4 2021 was 85%, with GAAP operating margin at 49% and non-GAAP operating margin at 51% [24][25] Business Line Data and Key Metrics Changes - Sales of capital equipment accounted for 89% of total revenue in Q4 2021, while consumable and service revenues represented 11% [19] - Revenue from minimally invasive and ablative technologies grew to 73% of total revenue in Q4 2021, up from 65% in the previous year [10] - Sales from consumables and services reached record volumes, with consumables expected to become a more significant part of the revenue mix as the install base grows [9] Market Data and Key Metrics Changes - International sales in Q4 2021 were $36.3 million, a 69% increase year-over-year, and full-year international sales reached $120.3 million, up 112% compared to 2020 [12] - The geographical revenue mix for Q4 2021 was 67% from the U.S. and 33% internationally, compared to 71% and 29% in Q4 2020 [19] Company Strategy and Development Direction - The company plans to continue expanding its install base and launching new platforms, with a focus on minimally invasive technologies [17] - The management emphasized the importance of maintaining a competitive advantage through innovative product offerings and a strong R&D pipeline [71] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges posed by COVID-19 variants, particularly in regions like China and Europe, but expressed optimism about returning to normal business operations [14][30] - The company is prepared to manage supply chain challenges and has established multiple suppliers for components to mitigate risks [33][34] Other Important Information - The company ended 2021 with a strong balance sheet, holding $415.9 million in cash and cash equivalents [26] - The management indicated plans for share repurchases and potential M&A opportunities, although no suitable targets have been identified yet [70] Q&A Session Summary Question: Impact of Omicron on Q1 and future outlook - Management noted some countries are experiencing lockdowns, which may affect sales, particularly in China, but they remain optimistic about recovery in February or March [30][32] Question: Margin management amid supply chain challenges - Management highlighted successful navigation of supply chain issues in 2021 and expressed confidence in maintaining margins despite rising logistics costs [35] Question: Expectations for consumable revenue growth - Management indicated that consumable revenue could grow to 14%-15% of total revenue as the install base increases, with a focus on designing new platforms that require disposables [49][51] Question: Clinical data and Empower platform expectations - Management confirmed expectations for the Empower platform to generate $20 million in revenue for 2022, with encouraging preliminary clinical results [38][42] Question: Reimbursement strategy for Empower - Management is open to exploring reimbursement options in the future but currently sees a strong cash-based business model as advantageous [84][86] Question: Competitive landscape in skin tightening - Management acknowledged competition from established players but emphasized their focus on minimally invasive technologies and maintaining a competitive edge through innovation [90][92]
InMode(INMD) - 2021 Q4 - Annual Report
2022-02-10 12:05
Product Development and Innovation - The company has developed ten product platforms, including BodyTite, Optimas, and Morpheus8, with two additional platforms introduced in 2021[36]. - The company emphasizes the importance of developing new products and identifying new markets to avoid obsolescence and maintain revenue growth[54]. - The company relies on its ability to enhance existing products and develop new ones for long-term growth, which is expensive and time-consuming[55]. - The company is developing additional RF energy-based platforms and handpieces for various medical specialties, including ophthalmology and ENT[195][196]. - The EmpowerRF platform targets women's health indications, while EvolveX replaces the previous Evolve platform, enhancing the product offerings[194]. - The company’s proprietary RF energy technologies allow for minimally invasive procedures with reduced risks compared to traditional surgical options[190]. - The company aims to satisfy unmet market demand by targeting patients who are averse to surgical procedures due to costs and risks[191]. - The company has a robust R&D pipeline focused on new minimally and non-invasive applications, targeting conditions such as cellulite and erectile dysfunction[219]. - The company has developed a modular product platform that allows for complementary treatments using a single system, increasing treatment versatility[218]. Market Dynamics and Competition - The surgical aesthetic solutions market is highly competitive, with rapid technological development and the need for continuous innovation to remain competitive[54]. - The company faces intense competition from both public and private companies, which could result in reduced prices and profit margins[56]. - The aesthetics market is characterized by rapid technological changes and evolving customer requirements, necessitating timely product introductions[59]. - The company aims to expand its customer base beyond traditional markets, targeting non-traditional customers such as ENTs and general practitioners[40]. Financial Performance and Risks - Revenue increased to approximately $357.6 million for the year ended December 31, 2021, up from $206.1 million in 2020 and $156.4 million in 2019, representing a growth of 73% year-over-year[199]. - Gross margin for the years ended December 31, 2021, 2020, and 2019 was approximately 85%, 85%, and 87%, respectively, with net income of approximately $165.1 million in 2021, up from $75.0 million in 2020 and $61.2 million in 2019[199]. - The company’s financial results may fluctuate due to various factors, including customer adoption rates and regulatory compliance[51][52]. - Economic uncertainty may lead to reduced demand for premium products, as customers may delay or reduce purchases during tight credit markets[87]. - The company is monitoring the creditworthiness of customers, as economic weakness could negatively affect cash flows and delay revenue recognition[88]. Regulatory and Compliance Challenges - The company’s products are subject to extensive FDA regulations, and failure to obtain necessary clearances could harm commercial operations[130]. - The FDA's 510(k) clearance process typically takes from three to 12 months, while premarket approval can take one to three years or longer, impacting product launch timelines[132]. - Regulatory changes or delays in obtaining clearances could adversely affect the company’s ability to introduce new products, impacting revenue and profitability[136]. - The company must maintain compliance with FDA's Quality System Regulation and laser performance standards, with inspections potentially impacting manufacturing operations[146]. - The company is subject to evolving healthcare laws and regulations, which could materially affect its business and operations[102]. Supply Chain and Operational Risks - The company faces significant risks, including reliance on a limited number of suppliers and contract manufacturers, which could impact product delivery and operational efficiency[53]. - The company outsources almost all manufacturing to a small number of subcontractors, which may lead to delivery issues if operations are interrupted or if orders exceed capacity[65]. - The company’s growth may be limited by challenges in managing operations and maintaining quality standards as it scales[48][49]. Customer Relationships and Sales Strategy - The company relies heavily on sales professionals to market and sell products worldwide, emphasizing the need for effective hiring and training to improve productivity[44]. - The success of the company's products depends on market acceptance and the ability to maintain strong relationships with healthcare professionals[36][43]. - The company has launched ten product platforms since 2010, including BodyTite, Optimas, and Morpheus8, which utilize RF energy technology for various aesthetic procedures[192]. - The company offers one of the most extensive training and ongoing support programs available to physicians in the aesthetic solutions market[198]. International Operations and Risks - International sales accounted for approximately 34% of total revenue for the year ended December 31, 2021, with expectations for increased future revenue from international markets[62]. - The company must navigate various risks associated with international sales, including political instability and regulatory compliance[64]. - Political, economic, and military instability in Israel may adversely affect the company's operations and financial results[173]. - Several Middle Eastern countries impose restrictions on doing business with Israel, which may limit the company's market opportunities[176]. Intellectual Property and Legal Matters - The company has issued six U.S. patents and one Korean patent, with fourteen pending patent applications in the U.S.[109]. - The company relies on a combination of patents and trademarks to protect its proprietary technology, but there is no guarantee these protections will be sufficient[107]. - The company may face substantial litigation costs related to intellectual property infringement claims, which could adversely affect its financial position[121]. - The company acknowledges that competitors may exploit jurisdictions where it lacks patent protection, potentially harming its competitive position[108]. Economic and Market Conditions - The ongoing COVID-19 pandemic has caused significant disruptions to global financial markets, potentially reducing the company's ability to access capital on favorable terms[85]. - The pandemic has led to restrictions on elective procedures in healthcare facilities, which may adversely affect sales and marketing efforts for products used in aesthetic procedures[80]. - The company has experienced challenges in maintaining customer relationships due to travel restrictions, impacting sales efforts and customer success initiatives[81]. - Exchange rate fluctuations pose a risk to earnings, particularly as a portion of revenues and expenses are incurred in currencies other than U.S. dollars[89]. - Cybersecurity risks have increased due to remote work arrangements, potentially exposing the company to liability and reputational harm[90].
InMode(INMD) - 2021 Q4 - Annual Report
2022-02-10 12:00
Exhibit 99.1 InMode Reports Record Fourth Quarter and Full Year 2021 Financial Results: Quarterly Revenue of $110.5M, 47% Year-Over-Year Growth GAAP Net Income of $52.7M, 46% Increase Compared to Q4 2020 YOKNEAM, Israel, Feb. 10, 2022, InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the fourth quarter and full year ended Dec. 31, 2021. Fourth Quarter 2021 Highlights: Full Year 2021 Highlights: | U.S. ...
InMode(INMD) - 2021 Q3 - Earnings Call Transcript
2021-10-26 17:38
InMode Ltd. (NASDAQ:INMD) Q3 2021 Earnings Conference Call October 26, 2021 8:30 AM ET Company Participants Miri Segal - President, MS-IR Moshe Mizrahy - Chairman and CEO Shakil Lakhani - President, North America Yair Malca - CFO Dr. Spero Theodorou - CMO Conference Call Participants Travis Steed - Barclays Matthew Taylor - UBS Kyle Rose - Canaccord Genuity Mike Matson - Needham & Company Jeff Johnson - Robert W. Baird Operator Hello and welcome to the InMode Limited Third Quarter 2021 Earnings Conference C ...
InMode(INMD) - 2021 Q2 - Earnings Call Transcript
2021-07-28 18:19
InMode Ltd. (NASDAQ:INMD) Q2 2021 Earnings Conference Call July 28, 2021 8:30 AM ET Company Participants Miri Segal - Investor Relations Moshe Mizrahy - Chairman of Board and Chief Executive Officer Shakil Lakhani - President, North America Yair Malca - Chief Financial Officer Spero Theodorou - Chief Medical Officer Conference Call Participants Travis Steed - Barclays Matt Taylor - UBS Kyle Rose - Canaccord Genuity Mike Matson - Needham & Company Jeff Johnson - Baird Operator Good morning, and welcome to th ...
InMode(INMD) - 2021 Q1 - Earnings Call Transcript
2021-05-05 18:41
InMode Ltd (NASDAQ:INMD) Q1 2021 Earnings Conference Call May 5, 2021 8:30 AM ET Company Participants Miri Segal - MS-IR Moshe Mizrahy - Chairman & CEO Shakil Lakhani - President, North America Yair Malca - CFO Spero Theodorou - Chief Medical Officer Conference Call Participants Matt Taylor - UBS Kyle Rose - Canaccord Genuity Asaf Chandali - Oppenheimer Operator Good day, and welcome to the InMode Ltd. First Quarter 2021 Earnings Conference Call. [Operator Instructions]. I would now like to turn the confere ...
InMode(INMD) - 2020 Q4 - Earnings Call Transcript
2021-02-10 17:28
InMode Ltd. (NASDAQ:INMD) Q4 2020 Earnings Conference Call February 10, 2021 8:30 AM ET Company Participants Miri Segal - MS, IR Moshe Mizrahy - CEO & Chairman Michael Kreindel - Co-Founder & CTO Yair Malca - CFO Spero Theodorou - CMO Shakil Lakhani - President, North America Rafi Lickerman - VP, Finance Conference Call Participants Matt Taylor - UBS Kyle Rose - Canaccord Jeff Johnson - Baird Asaf Barel Chandali - Oppenheimer Operator Good day and welcome to the InMode Limited Fourth Quarter and Full-Year 2 ...