Core Viewpoint - InMode Ltd. is revising its full-year revenue guidance for 2025 due to ongoing market weakness and uncertainty in the U.S. economic outlook, with preliminary second-quarter revenue expected to be between $95.4 million and $95.5 million [3][7]. Financial Results - The company anticipates second-quarter 2025 revenue in the range of $95.4 million to $95.5 million [7]. - The non-GAAP gross margin for the second quarter of 2025 is expected to be between 79% and 80% [7]. - Full-year 2025 revenue guidance has been revised to a range of $365 million to $375 million, down from the previous guidance of $395 million to $405 million [3][7]. Conference Call Details - A conference call to discuss the second-quarter financial results will be held on July 30, 2025, at 8:30 a.m. Eastern Time, featuring key executives including the CEO, CFO, and CTO [4][5]. - Participants are encouraged to pre-register for the call to receive unique dial-in information [5]. Company Overview - InMode is a global provider of innovative medical technologies, focusing on devices that utilize novel radio frequency technology for various medical applications [7][8]. - The company aims to enhance surgical procedures and improve existing treatments through its minimally invasive RF technologies [8].

Summary of InMode Conference Call Company Overview - InMode is a medical technology company based in Israel, established approximately 16 years ago, specializing in minimally invasive aesthetic procedures using radio frequency technology [4][5] - The company has grown from $22 million in annual revenue to nearly $500 million in 2023 [4] Recent Performance and Market Conditions - InMode has faced challenges over the past two years due to a slow global economy, particularly in the US and Europe [5][8] - The stock price has fluctuated significantly, reaching a high of around $80 before dropping to approximately $14 [9] - The company expects flat revenue growth for the year, with Q1 performance being softer than anticipated [11][12] Revenue Guidance and Profitability - The revenue mix shifted to a 50/50 split between US and international sales, contrary to previous expectations of 62-65% from the US [12] - Europe had a record quarter in Q1, while the US faced unexpected headwinds [12][17] - Adjustments were made to profitability estimates due to the revenue mix and new tariffs affecting products manufactured in Israel [13][14] Product Development and Pipeline - InMode is expanding its product offerings into women's health and ophthalmology, with two new platforms launched [21][23] - The Empower system for pelvic floor restoration generated $40 million in its first year but saw a 20% decline in 2024 [25][27] - Ongoing studies for overactive bladder treatments are expected to conclude by 2026, with promising preliminary results [31][32] - The company has 15 R&D projects in the pipeline, aiming to release two new products annually [28][29] Sales Force and Capital Allocation - The North American sales force has been restructured into three territories to improve management and efficiency [34][36] - InMode has repurchased $508 million worth of shares over the past two years, buying back 30% of outstanding shares [39] - Future capital allocation strategies include potential share buybacks, internal investments, or acquisitions, with a focus on maintaining flexibility [40][41] Competitive Landscape and Future Outlook - The company is positioned to benefit from reduced competition in the aesthetic market as other companies struggle [48] - InMode's management believes that they will emerge stronger from the current economic slowdown, leveraging their resources and technology [46][47] - The outlook for growth in 2026 remains uncertain, dependent on broader economic conditions [50]

Core Viewpoint - InMode Ltd. addresses concerns raised by DOMA Perpetual Capital Management regarding its operations, buyback strategy, and management performance, emphasizing its commitment to shareholder value and operational integrity [2][3][5][6]. Buyback Strategy - InMode has executed a share buyback program amounting to $412 million over the last 12 months and $508 million over the past 2.5 years, aiming to return capital to shareholders in a tax-efficient manner [3]. Manufacturing and Supply Chain - The company maintains that its manufacturing operations in Israel are essential due to the proximity to engineering, R&D, and logistics teams, and has successfully delivered products to 90 countries despite ongoing regional conflicts [4]. Sales Performance - The slowdown in North American sales is attributed to macroeconomic factors and financing challenges rather than issues within the sales management team, which is fully staffed and operating professionally [5]. Management Performance - The CEO refutes claims of poor leadership and emphasizes a lean management style, asserting that the Board of Directors will ultimately decide on his performance [6]. Company Overview - InMode is a global provider of innovative medical technologies, specializing in devices that utilize radio frequency technology for various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [8].

Summary of InMode (INMD) Conference Call - May 19, 2025 Company Overview - InMode is an Israeli-based company specializing in medical aesthetic equipment, particularly surgical equipment that penetrates the skin [2][3] - Established around 16 years ago, with R&D and manufacturing based in Israel [2] - The company went public in February 2019 at $7 per share and has since seen significant revenue growth [8] Financial Performance - Revenue reached approximately $495 million in 2023, up from $22 million in 2017 [5][6] - Experienced a 20% revenue decline in 2024 due to economic slowdown and increased interest rates [10] - Target for 2025 is to match 2024 revenue levels [10] Product and Technology - InMode's technology includes radio frequency-assisted lipolysis and bipolar Matrix RF (Morpheus) [4][6] - The company has diversified its product line to include applications for urinary incontinence, overactive bladder, and facial rejuvenation [6] - Currently has about 12 platforms in its product portfolio, selling in 90 countries [7] Market Dynamics - The U.S. market constitutes 50% of the business, with the rest coming from international markets [19] - The company faces stronger headwinds in the U.S. compared to international markets, with consumer confidence being a significant issue [22][27] - The first quarter is typically the slowest, with Q2 expected to be stronger [30] Operational Challenges - The ongoing conflict in Israel has posed challenges, but the company has managed to maintain operations [12][35] - Tariff exposure is estimated to impact gross margins by 2% to 3% due to most products being manufactured in Israel [38][39] Marketing and Sales Strategy - The company spends heavily on marketing and sales, with a focus on both B2B and B2C strategies [16][60] - Sales and marketing expenses account for 35% to 40% of revenue, while G&A and R&D expenses are relatively low at around 3% and 4%, respectively [59][60] Future Outlook - The company is optimistic about the recovery of the aesthetic procedure market, although it does not expect an immediate surge in demand [99] - Plans to continue product innovation, with new wellness platforms expected to launch later in 2025 [52] - The management is focused on international expansion, establishing subsidiaries in Argentina and Thailand [71][72] Capital Allocation - In the past 12 months, InMode has repurchased $412 million of its stock, totaling $508 million over two years [85][87] - The company is open to various capital allocation strategies, including further buybacks, M&A, and dividends, depending on market conditions [85][86] Key Risks - Economic slowdown and rising interest rates are significant risks affecting consumer spending on aesthetic procedures [10][22] - The company is closely monitoring inflation trends in both the U.S. and Europe [23] Conclusion - InMode remains a leader in the medical aesthetics market, with a strong focus on innovation and international growth despite current economic challenges [11][72]

Core Viewpoint - DOMA Perpetual Capital Management LLC urges InMode Ltd.'s Board to resume and accelerate stock buybacks and replace CEO Moshe Mizrahy due to concerns over capital allocation strategy and declining stock performance [1][2][3]. Capital Allocation Strategy - The letter emphasizes the need for the Board to act on behalf of shareholders by resuming the share repurchase program and returning cash to shareholders, as the current cash on the balance sheet is not generating earnings [3][4]. - InMode's stock price is viewed as undervalued, with approximately 60% of its market cap in cash, and the company maintains no debt while generating free cash flow [4][7]. CEO Performance and Leadership Concerns - CEO Moshe Mizrahy's management style is criticized as reckless and antagonistic, contributing to the company's underperformance and negative public perception [2][5]. - The letter highlights that Mizrahy has consistently lowered guidance and made poor management decisions, such as firing the US Head of Sales before a critical quarter [5][6]. Financial Performance and Valuation - As of May 7, 2025, InMode's market capitalization, excluding cash, is approximately $375 million, which does not reflect the company's strong business fundamentals, including gross margins near 80% [7][8]. - The letter argues that the current valuation is disconnected from the reality of InMode's business, which includes valuable assets like inventory, global distribution, and unique intellectual property [7][8].

Company Participation in Investor Conferences - InMode Ltd. will participate in multiple investor conferences, including BNP 3rd Annual Aesthetics Day, Barclays West Coast Bus Trip, and Jefferies Global Healthcare Conference [1][2] - The BNP conference will feature a virtual fireside chat with CEO Moshe Mizrahy and CFO Yair Malca on May 19 at 11:00 am ET [1] - The Barclays West Coast Bus Trip will be an in-person event at InMode's North American headquarters in Irvine, CA on May 29, led by CFO Yair Malca [2] - The Jefferies Global Healthcare Conference will include an in-person fireside chat with CEO Moshe Mizrahy and CFO Yair Malca on June 4 at 3:10 pm ET in New York, NY [2] Company Overview - InMode 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 range of products across various medical categories, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [3]

Core Points - InMode Ltd. has successfully obtained a default judgment against DHGate sellers for promoting counterfeit goods, resulting in a permanent injunction and damages awarded to the company [1][2] - The court's ruling protects InMode's trademark rights and includes measures to freeze the assets and halt the listings of the involved sellers [2] - InMode emphasizes its commitment to public safety and has established a Verified Provider Program for its Morpheus8 technology to ensure patients receive care from authorized providers [3][4] Legal Outcome - The US District Court granted InMode a permanent injunction against the sellers for trademark infringement, false designation of origin, and California unfair competition [2] - The ruling includes damages awarded per defendant, reinforcing InMode's stance against counterfeit goods [2] Company Initiatives - InMode has implemented a Verified Provider Program for Morpheus8, allowing certified clinics to confirm their authenticity and use of genuine technology [3] - The program aims to help patients identify safe and authorized providers, enhancing consumer trust in InMode's products [3][4] Company Overview - InMode is a global leader in innovative medical technologies, focusing on devices that utilize novel radiofrequency technology [5] - The company offers a comprehensive range of products across various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [5]

Core Insights - The article emphasizes the importance of combining clinical insight with rigorous valuation methods in analyzing healthcare and tech stocks [1] - It highlights the use of scenario-based DCF modeling, sensitivity analysis, and Monte Carlo simulations to identify asymmetric risk-reward opportunities [1] - The focus is on translating complex scientific and market dynamics into actionable investment theses [1] Group 1 - The analyst has a background as a registered nurse (RN) and holds an MBA, which informs their investment analysis [1] - The investment approach is influenced by concepts from "Superforecasting" and "Fooled by Randomness" [1] - The analyst encourages following their insights on social media for the latest thoughts on investments [1]

Financial Data and Key Metrics Changes - InMode generated total revenue of $77.9 million in Q1 2025, a decrease of 3% compared to Q1 2024 [8] - GAAP gross margin was 78% in Q1 2025, down from 80% in Q1 2024 [8] - Non-GAAP diluted earnings per share were $0.31, compared to $0.32 in Q1 2024 [12] Business Line Data and Key Metrics Changes - Minimally invasive platforms accounted for 87% of total revenues in Q1 2025 [9] - Sales and marketing expenses decreased slightly to $39.7 million in Q1 2025 from $39.8 million in the same period last year [11] Market Data and Key Metrics Changes - International sales accounted for $38 million or 49% of total sales, a 1% increase compared to Q1 2024 [10] - Europe was the largest revenue contributor from outside the U.S., achieving record sales [10] Company Strategy and Development Direction - The company plans to unveil a new platform for the wellness market later in 2025, aiming to diversify its product offerings [6] - InMode remains committed to maintaining its workforce and not cutting costs, believing this will position the company to lead when market conditions improve [5] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing macroeconomic uncertainty and soft consumer demand affecting the medical aesthetic market [4] - The company anticipates a potential reduction in operating margins by 4% to 5% due to market pressures and U.S. tariffs [13] Other Important Information - InMode completed a share repurchase program, buying back 6.95 million shares for $127 million, returning over $412 million to shareholders in the past year [7] - The company has a strong balance sheet with cash and equivalents totaling $512.9 million as of March 31, 2025 [12] Q&A Session Summary Question: Follow-up on product mix dynamics - Management indicated that the slowdown began in mid-2023 due to rising interest rates and decreased consumer confidence, impacting capital equipment purchases [19] Question: Guidance for Q2 and market recovery - Management expressed optimism for Q2 but noted that if results do not improve significantly, guidance may need to be lowered [30] Question: Impact of tariffs on gross margins - Management explained that current tariffs could impact gross margins by approximately 2% to 3% if they remain at 10% [56] Question: Updates on operating expenses - Management confirmed that they plan to maintain investments in sales and marketing despite macro challenges [63] Question: Pricing strategy in the current market - Management decided against raising prices due to the current market conditions, emphasizing the importance of maintaining competitiveness [70] Question: Performance in Europe compared to the U.S. - Management noted that Europe performed better in Q1 2025, attributed to management changes and pricing strategies [83]

Core Insights - Eyes On Park has introduced the Envision by InMode system, a revolutionary non-invasive technology for advanced dry eye treatment in New York City [1][4][17] - The system combines Forma-I radiofrequency and Lumecca-I intense pulsed light therapies to address the root causes of dry eye disease, improving patient outcomes significantly [3][16] Treatment Technology - The Envision system utilizes two complementary technologies: Forma-I radiofrequency technology and Lumecca-I intense pulsed light therapy [5][7] - Forma-I delivers bipolar radiofrequency energy to enhance blood circulation and stimulate natural healing processes, particularly effective for meibomian gland dysfunction [6][11] - Lumecca-I uses intense pulsed light to reduce inflammation and improve symptoms in patients with inflammatory dry eye and ocular rosacea [7][12] Treatment Benefits - Patients typically experience noticeable improvement after just one session, with optimal results achieved after a series of treatments [15][16] - The Envision system provides a non-invasive treatment option that requires no downtime, allowing patients to resume normal activities immediately [15][16] Personalized Care - Treatment plans are customized based on comprehensive diagnostic testing, including advanced K5M diagnostic scans, allowing for tailored approaches to each patient's specific needs [14][15] - The practice emphasizes that no two cases of dry eye disease are identical, leading to higher patient satisfaction through targeted treatment [15] Availability - The Envision by InMode system is now available at Eyes On Park, and patients can schedule consultations to determine the suitability of this advanced treatment [17][18]