InMode Ltd. (NASDAQ:INMD) Q2 2020 Earnings Conference Call August 5, 2020 8:30 AM ET Company Participants Miri Segal - MS, IR Moshe Mizrahy - CEO & Chairman Michael Kreindel - Co-Founder and CTO Shakil Lakhani - President of InMode, North America Yair Malca - CFO Spero Theodorou - Chief Medical Officer Conference Call Participants Matt Taylor - UBS Kristen Stewart - Barclays Kyle Rose - Canaccord Jeff Johnson - Baird Operator Good morning and welcome to the InMode Second Quarter 2020 Earnings Conference Cal ...

InMode Ltd. (NASDAQ:INMD) Q1 2020 Earnings Conference Call May 6, 2020 8:30 AM ET Prepared Remarks provided By The Company Company Participants Miri Segal - MS, Investor Relations Moshe Mizrahy - Chief Executive Officer & Chairman Shakil Lakhani - President of InMode, North America Yair Malca - Chief Financial Officer Spero Theodorou - Chief Medical Officer Conference Call Participants Matt Taylor - UBS Kristen Stewart - Barclays Kyle Rose - Canaccord Jeff Johnson - Baird Operator Welcome to the InMode Limi ...

Financial Data and Key Metrics Changes - InMode reported record revenue of $47 million for Q4 2019, a 63% increase from Q4 2018, driven by the success of minimally invasive RF technology and new hands-free platforms [14][15] - For the full year 2019, total revenue reached $156.4 million, a 56% increase from 2018, with net profit growing to $61.1 million, a 173% increase [15][28] - GAAP diluted earnings per share for Q4 2019 were $0.46 compared to a net loss of $0.01 per diluted share in Q4 2018, while non-GAAP earnings per share increased by 109% to $0.46 [26][29] Business Line Data and Key Metrics Changes - The company categorized its revenue into three segments: minimally invasive and ablative, hands-free, and traditional laser/non-invasive RF platforms [17] - In 2019, minimally invasive and ablative products generated approximately $89 million, while hands-free products contributed around $12 million [35] - The hands-free segment is expected to grow significantly, with projections indicating it could account for 25% of revenue in 2020 [48] Market Data and Key Metrics Changes - International revenue grew 71% year-over-year, indicating strong global demand for InMode's products [15][23] - The installed base reached approximately 4,900 platforms worldwide, with about 2,800 in the U.S. [14][15] Company Strategy and Development Direction - InMode aims to position itself as a leading innovative aesthetic company by focusing on two main growth engines: minimally invasive and subdermal ablative aesthetic surgery, and hands-free aesthetic procedures [12][13] - The company is expanding its international presence with new subsidiaries in India and Australia, and has received regulatory clearances in several countries [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in 2020, projecting revenue between $190 million and $198 million, with a gross margin of 85% to 87% [16][19] - The impact of the coronavirus is expected to be minimal on revenue, but there may be challenges in manufacturing due to component sourcing from China [20][21] Other Important Information - The company celebrated its 10-year anniversary and its first full year as a public company in 2019 [7][8] - InMode's cash and cash equivalents totaled $193.4 million as of December 31, 2019, providing a strong financial position for future growth [26] Q&A Session Summary Question: What percentage of revenue do you expect from each of the new product categories in 2019? - Management indicated that minimally invasive and ablative products accounted for around $24 million, hands-free devices for about $9 million, and traditional laser products for $1 million in Q4 2019 [35][36] Question: How is customer feedback for the new hands-free devices? - Initial feedback has been positive, and management believes the potential for hands-free technology is higher than for minimally invasive products due to a broader market [41][42] Question: What are the expected contributions from the three product categories in 2020? - Management expects 65% to 70% of revenue from minimally invasive and ablative products, 20% to 25% from hands-free products, and 5% to 10% from traditional laser products [48] Question: How is the company addressing potential manufacturing issues due to the coronavirus? - Management is actively seeking alternative suppliers to mitigate risks and ensure production continuity [21][66] Question: What is the current status of the company's subsidiaries in India and Australia? - The Indian subsidiary generated approximately $400,000 in its first full quarter, while the Australian subsidiary has begun operations and sold two systems [70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ...

Financial Data and Key Metrics Changes - InMode generated record revenue of $40 million in Q3 2019, a 57% increase from the same period in 2018 [25] - Net income increased by 87% year-over-year to $16.2 million in Q3 2019, up from $8.6 million in the same period in 2018 [26] - Gross margin for the quarter was 87%, with operating margin at 40%, compared to 33% for the same period in 2018 [29][30] - Earnings per share were $0.42 per diluted share, compared to $0.26 in the previous year, an increase of 62% [30] Business Line Data and Key Metrics Changes - Most revenue in the quarter was generated from BodyTite, Embrace, Optimas, and Votiva, indicating a diversified product portfolio [27] - The Evolve platform, launched in the U.S., contributed approximately $3.7 million to Q3 revenue, accounting for 9% of the business in the fourth quarter [58] Market Data and Key Metrics Changes - The company established fully owned sales and marketing subsidiaries in India and Australia, with plans for further expansion into Europe and Asia [11][12] - As of September 30, 2019, the total employee count was 232, with 107 direct salespeople [15] Company Strategy and Development Direction - InMode aims to expand its direct operations in eight territories by the end of 2020, including the U.S., Canada, Spain, the U.K., India, Australia, and two additional countries [12] - The company focuses on maintaining a competitive advantage through strong intellectual property, clinical research, and a robust branding strategy [19][24] Management's Comments on Operating Environment and Future Outlook - Management raised the 2019 revenue target to between $150 million and $152 million, up from the previous target of $146 million to $148 million [36] - The company expects to maintain gross margins between 85% and 87% moving forward, depending on product mix and market conditions [41][86] Other Important Information - InMode is currently managing five regulatory processes around the world, with pending approvals expected in 2020 [14][15] - The company has a strong balance sheet with cash and cash equivalents totaling $166.3 million as of September 30, 2019 [30] Q&A Session Summary Question: Expectations for additional sales hires in the U.S. and international growth efforts - Management plans to grow North American direct sales reps from 96 to between 110 and 115 in 2020, with an increase in international sales personnel as well [35] Question: Demand for the BodyTite family and AccuTite launch impact - Demand remains strong across all segments, with the AccuTite launch contributing positively to BodyTite placements [37][38] Question: Factors contributing to gross margin performance - Management emphasized that maintaining a gross margin above 85% is essential for profitability and investment in growth [39][41] Question: Pipeline for new product launches - The Evolve platform was successfully launched in the U.S., with plans for further international rollout in 2020 [50][54] Question: Feedback from user meetings and market opportunities - The user meeting was well-attended and provided valuable insights for product development and market strategy [66] Question: Capital deployment strategy moving forward - The company plans to invest in subsidiaries, potential acquisitions, and increased manufacturing capacity [69][71]