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].

Exhibit 99.1 InMode Reports Fourth Quarter and Full Year 2024 Financial Results; Board of Directors Has Approved a New Share Repurchase Program Full Year 2024 Highlights: | U.S. GAAP Results | | | | | | --- | --- | --- | --- | --- | | (U.S. dollars in thousands, except for per share data) | | | | | | Q4 2024 | | Q4 2023 | FY 2024 | FY 2023 | | Revenues | $97,853 | $126,781 | 394,818 | $492,048 | | Gross Margins | 79% | 84% | 80% | 84% | | Net Income | $82,771 | $55,165 | $181,275 | $197,919 | | Earnings per ...

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]

Core Viewpoint - InMode Ltd. has rescheduled its fourth quarter and full year 2024 earnings conference call to February 4, 2025, at 8:30 a.m. Eastern Standard Time, with financial results to be released before the market opens on the same day [1][2]. Group 1: Conference Call Details - The conference call will feature presentations from key management, including the CEO, CFO, and CTO [2]. - Participants are encouraged to pre-register for the conference call to receive a unique dial-in number for immediate access [3]. - For those who do not pre-register, alternative dial-in numbers are provided, along with a webcast link for live streaming [4]. Group 2: Company Overview - InMode is recognized as a leading global provider of innovative medical technologies, focusing on devices that utilize novel radiofrequency technology [5]. - The company aims to enhance surgical procedures and improve existing treatments through its minimally invasive RF technologies, offering a diverse range of products across various medical fields [5].

Article Summary - The article discusses the recent performance of InMode, a company whose stock has been underperforming, as indicated by the author's search for images on Seeking Alpha, which returned unrelated results [1] Author's Background and Methodology - The author has been investing since 2013 and uses quantitative methods to identify undervalued stocks across various industries [1] - The author emphasizes the importance of numbers over narratives in evaluating a company's prospects [1] - The author has a background in reading numerous stock market books, including "100 Baggers," "Financial Shenanigans," and "The Quants" [1] Disclosure - The author holds a long position in InMode through stock ownership, options, or other derivatives [2] - The article reflects the author's personal opinions and is not influenced by compensation or business relationships with the mentioned companies [2]

Core Viewpoint - InMode Ltd. anticipates releasing its financial results for Q4 and full year 2024 on February 6, 2025, with preliminary results indicating stronger-than-expected challenges in the aesthetics industry due to macroeconomic factors [2][7]. Financial Performance - Expected revenue for Q4 2024 is projected to be between $97.0 million and $97.5 million, while the full year 2024 revenue is estimated to be in the range of $394.0 million to $394.5 million [7]. - The non-GAAP gross margin for the full year 2024 is anticipated to be between 80% and 81% [7]. - Revenue for the full year 2025 is projected to be between $395 million and $405 million [7]. Company Overview - InMode is a global provider of innovative medical technologies, focusing on devices that utilize novel radiofrequency technology for various medical applications [8]. - The company aims to enhance surgical procedures and improve existing treatments through its minimally invasive RF technologies, offering a comprehensive product line across multiple medical fields [8].