This quarterly report represents an earnings surprise of -6.06%. A quarter ago, it was expected that this maker of cosmetic surgery devices would post earnings of $0.50 per share when it actually produced earnings of $0.42, delivering a surprise of -16%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. InMode, which belongs to the Zacks Medical - Products industry, posted revenues of $77.87 million for the quarter ended March 2025, surpassing the Zacks Consensus Esti ...

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] - The company ended the quarter with cash and cash equivalents of $512.9 million [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 Q1 2024 [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 [9] - 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 this year, reflecting its strategy to diversify offerings [6] - InMode has committed to not reducing its workforce and aims to lead the industry during the market rebound [6] 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] - Management remains optimistic about a market recovery, contingent on Q2 performance [30] Other Important Information - InMode returned over $412 million to shareholders through share repurchases over the past twelve months, representing approximately 27% of total capital [7] - The company has not yet hired a new President for the U.S. and is currently led by the acting President [66] 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 [20][21] Question: Guidance for Q2 and market trends - Management expects Q2 to be stronger than Q1, but if results do not improve, guidance may need to be lowered [31][40] Question: Impact of tariffs on guidance - Tariffs are expected to impact gross margins by approximately 2% to 3% if they remain at 10% [57][79] Question: Updates on operating expenses - The company plans to maintain its investment in sales and marketing despite macro challenges, which may impact profitability [65] Question: Pricing strategy in the current market - Management decided not to raise prices due to the current market conditions, despite tariff impacts [70][90] Question: Performance in Europe compared to the U.S. - Europe has shown better performance due to management changes and pricing strategies, although credit conditions are tightening [83]

Core Viewpoint - InMode Ltd. reported a decline in revenues and net income for Q1 2025 compared to Q1 2024, attributed to a challenging macroeconomic environment and weakened consumer demand, while maintaining a strong focus on innovation and capital allocation strategies [4][10]. Financial Performance - Total GAAP revenues for Q1 2025 were $77.9 million, a decrease of 3% from $80.3 million in Q1 2024 [8]. - GAAP net income for Q1 2025 was $18.2 million, or $0.26 per diluted share, down from $23.7 million, or $0.28 per diluted share in Q1 2024 [10]. - Non-GAAP net income for Q1 2025 was $21.4 million, or $0.31 per diluted share, compared to $27.7 million, or $0.32 per diluted share in Q1 2024 [10]. Margins and Expenses - GAAP gross margin for Q1 2025 was 78%, down from 80% in Q1 2024, while non-GAAP gross margin was 79%, also down from 80% [8]. - GAAP operating margin decreased to 20% in Q1 2025 from 23% in Q1 2024, with non-GAAP operating margin dropping to 23% from 27% [9]. Shareholder Returns - The company completed a share repurchase program of 6.95 million shares for a total of $127 million, returning over $412 million to shareholders in the past 12 months, representing approximately 27% of its share capital [5][6]. Cash Position - As of March 31, 2025, InMode had a total cash position of $512.9 million, including cash and cash equivalents, marketable securities, and short-term bank deposits [11]. International Performance - InMode achieved record revenue in Europe during Q1 2025, despite ongoing market headwinds, indicating strong international performance [4]. Future Outlook - Management anticipates continued challenges in the U.S. market, projecting a 4%-5% decline in operating margins and an expected impact of 2%-3% on gross margins due to U.S. tariffs [7]. - The company has revised its 2025 financial outlook, expecting revenues between $395 million and $405 million, with non-GAAP gross margins between 78% and 80% [16].

Core Viewpoint - InMode Ltd. is set to release its financial results for the first quarter of 2025 on April 28, 2025, with preliminary revenue expectations ranging from $77.2 million to $77.5 million and a projected non-GAAP gross margin of 78% to 79% [6][2]. Financial Results - The company anticipates first quarter 2025 revenue to be between $77.2 million and $77.5 million [6]. - The projected non-GAAP gross margin for the same period is expected to be in the range of 78% to 79% [6]. - For the full year 2025, InMode expects revenue to be between $395 million and $405 million [6]. Conference Call Details - A conference call to discuss the first quarter 2025 financial results will take place on April 28, 2025, at 8:30 a.m. Eastern Daylight Time [3]. - Key management personnel, including the CEO, CFO, and CTO, will present during the call [3]. - Participants are encouraged to pre-register for the call to receive unique dial-in information [4]. Company Overview - InMode is recognized as a leading global provider of innovative medical technologies, focusing on devices that utilize novel radio frequency technology [6][7]. - The company aims to enhance surgical procedures and improve existing treatments across various medical fields, including plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology [6][7].

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 ...

Core Insights - The article discusses the author's previous recommendation of InMode (NASDAQ: INMD) as a Hold due to concerns over management's capital allocation efficiency [1]. Group 1 - The author has over 10 years of experience in analyzing and publishing reports on companies in Brazil, Chile, and the United States [1]. - The focus of the author's analysis is primarily on small-cap companies, utilizing a deep value investment approach [1]. - The current strategy involves managing a personal portfolio and that of close friends, emphasizing fundamental analysis [1]. Group 2 - The author seeks U.S. companies with solid capital structures, clear growth potential, and efficient, trustworthy management teams [1].

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 ...

Core Viewpoint - The article emphasizes the importance of value investing and highlights InMode (INMD) as a strong candidate for value investors due to its attractive valuation metrics and earnings outlook [2][6]. Company Summary - InMode (INMD) currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock is trading with a P/E ratio of 9.48, significantly lower than the industry average P/E of 21.60, suggesting it may be undervalued [4]. - INMD's Forward P/E has fluctuated between 10.91 and 7.06 over the past year, with a median of 8.60, further indicating its valuation strength [4]. - The P/B ratio for INMD is 1.84, which is attractive compared to the industry's average P/B of 5.22, reinforcing the notion of undervaluation [5]. - Over the past 52 weeks, INMD's P/B has ranged from 2.30 to 1.57, with a median of 1.90, showcasing its relative stability in valuation metrics [5]. - Overall, the combination of these metrics positions InMode as one of the market's strongest value stocks, particularly when considering its earnings outlook [6].

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]