InMode(US:INMD)2022-02-10 17:34Financial Data and Key Metrics Changes - The company reported a record revenue of $110.5 million for Q4 2021, representing a 47% increase year-over-year, and a full-year revenue of $357.6 million, up 73% compared to 2020 [7][18] - Net income for Q4 2021 was $52.7 million on a GAAP basis and $55.2 million on a non-GAAP basis, while full-year net income reached $165 million on a GAAP basis and $176.3 million on a non-GAAP basis [8] - The gross margin for Q4 2021 was 85%, with GAAP operating margin at 49% and non-GAAP operating margin at 51% [24][25] Business Line Data and Key Metrics Changes - Sales of capital equipment accounted for 89% of total revenue in Q4 2021, while consumable and service revenues represented 11% [19] - Revenue from minimally invasive and ablative technologies grew to 73% of total revenue in Q4 2021, up from 65% in the previous year [10] - Sales from consumables and services reached record volumes, with consumables expected to become a more significant part of the revenue mix as the install base grows [9] Market Data and Key Metrics Changes - International sales in Q4 2021 were $36.3 million, a 69% increase year-over-year, and full-year international sales reached $120.3 million, up 112% compared to 2020 [12] - The geographical revenue mix for Q4 2021 was 67% from the U.S. and 33% internationally, compared to 71% and 29% in Q4 2020 [19] Company Strategy and Development Direction - The company plans to continue expanding its install base and launching new platforms, with a focus on minimally invasive technologies [17] - The management emphasized the importance of maintaining a competitive advantage through innovative product offerings and a strong R&D pipeline [71] Management's Comments on Operating Environment and Future Outlook - The management acknowledged challenges posed by COVID-19 variants, particularly in regions like China and Europe, but expressed optimism about returning to normal business operations [14][30] - The company is prepared to manage supply chain challenges and has established multiple suppliers for components to mitigate risks [33][34] Other Important Information - The company ended 2021 with a strong balance sheet, holding $415.9 million in cash and cash equivalents [26] - The management indicated plans for share repurchases and potential M&A opportunities, although no suitable targets have been identified yet [70] Q&A Session Summary Question: Impact of Omicron on Q1 and future outlook - Management noted some countries are experiencing lockdowns, which may affect sales, particularly in China, but they remain optimistic about recovery in February or March [30][32] Question: Margin management amid supply chain challenges - Management highlighted successful navigation of supply chain issues in 2021 and expressed confidence in maintaining margins despite rising logistics costs [35] Question: Expectations for consumable revenue growth - Management indicated that consumable revenue could grow to 14%-15% of total revenue as the install base increases, with a focus on designing new platforms that require disposables [49][51] Question: Clinical data and Empower platform expectations - Management confirmed expectations for the Empower platform to generate $20 million in revenue for 2022, with encouraging preliminary clinical results [38][42] Question: Reimbursement strategy for Empower - Management is open to exploring reimbursement options in the future but currently sees a strong cash-based business model as advantageous [84][86] Question: Competitive landscape in skin tightening - Management acknowledged competition from established players but emphasized their focus on minimally invasive technologies and maintaining a competitive edge through innovation [90][92]