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 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 remains optimistic about a recovery in consumer interest in minimally invasive procedures as macro conditions stabilize [5] - Management expects operating margins to decrease by 4% to 5% due to market pressures and U.S. tariffs [13] 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 anticipates a potential impact of 2% to 3% on gross margins due to U.S. tariffs [14] 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 is optimistic about Q2 but will adjust guidance if results do not improve significantly compared to Q1 [30][31] Question: Impact of the macroeconomic environment on guidance - Management reiterated that guidance remains unchanged for now, pending Q2 results [39] Question: Updates on U.S. management structure - The company has not yet hired a new President for the U.S. and management is actively involved in operations [66] Question: Tariff impact and pricing strategy - Management decided not to raise prices due to market conditions, despite tariff impacts [70][71] Question: Performance in Europe - Europe performed better than the U.S. in Q1, attributed to management changes and pricing strategies [84]