Summary of InMode Conference Call Company Overview - **Company**: InMode - **Industry**: Medical Technology, specifically in energy-based, minimally invasive surgical aesthetic and medical treatment solutions Key Points and Arguments Market Conditions - The aesthetic market has been experiencing a slowdown since summer 2023, attributed to macroeconomic factors and softening demand [4][6] - InMode has a strong financial position, being debt-free with a solid cash balance, which allows it to navigate the current market challenges [9] Financing and Credit - Approximately 90% of InMode's capital equipment sales are financed through third-party leasing companies [6] - Rising interest rates have increased monthly payments for customers, leading to tighter credit conditions and more rigorous approval processes [6][7] Product Strategy - InMode has opted not to lower prices, believing it would be detrimental in the long run [16] - The company is expanding its product offerings to include lasers and other technologies, aiming to become a one-stop shop for customers [16][17] Market Penetration - InMode has achieved about 25-30% penetration in the plastic surgeon community but only 5-7% in dermatology, indicating significant growth potential in the latter [20][22] - The company is focusing on upgrading existing customers to newer technologies, which could enhance penetration further [22][32] Patient Demand - There has been a decline in patient demand over the last couple of years, impacting capital equipment sales [58] - Recent months have shown signs of stabilization in demand, although it remains below previous levels [61][63] International Growth - InMode has seen a return to double-digit growth in international markets, attributed to leadership changes and direct operations in countries like Germany and Japan [81][82] - The company is working with a distributor in China and is awaiting approvals for more products, which could enhance sales in that market [87][90] Tariff Impact - The company anticipates a 200-300 basis point headwind from tariffs, with ongoing supply chain adjustments aimed at mitigating this impact [64][70] - Future guidance on tariffs will depend on the success of these adjustments and potential treaties between Israel and the U.S. [69] Future Outlook - InMode is cautiously optimistic about achieving 5-6% revenue growth in the coming years, which would add $25-30 million to the top line annually [94][96] - The company expects new product launches to contribute positively to revenue growth [94] Additional Important Information - The aesthetic space is cyclical, and down cycles typically do not last more than two to three years [12] - The company is actively pursuing opportunities in women's health, which is seen as a significant growth driver [54][56] - InMode is also developing a standalone team focused on ophthalmology, which is expected to boost growth once FDA approvals are secured [53][54]