InMode(US:INMD)2020-11-12 20:04Financial Data and Key Metrics Changes - InMode generated record revenue of $59.7 million in Q3 2020, a 49% increase from Q3 2019 [8] - Net income on a GAAP basis was $23.9 million, and on a non-GAAP basis, it was $26.6 million [8] - GAAP diluted earnings per share were $0.57, compared to $0.42 in Q3 2019, while non-GAAP diluted earnings per share were $0.63, up from $0.42 [20] - The company increased its full-year 2020 revenue guidance range to $192 million to $195 million [12] Business Line Data and Key Metrics Changes - Approximately 58% of revenue came from surgical platforms, 35% from hands-free platforms, and 7% from traditional laser and non-invasive RF platforms [8] - International revenue grew 109% year-over-year, driven by marketing and sales activities in various countries [9][17] Market Data and Key Metrics Changes - The company reported strong demand in North America for minimally invasive and hands-free devices, confirming the effectiveness of their sales strategy during the pandemic [13] - The international market doubled year-over-year in Q3, with significant growth in China, Brazil, Mexico, and Korea [44] Company Strategy and Development Direction - InMode plans to introduce two new platforms targeting gynecology, ENT, and ophthalmology markets in 2021 and beyond [11] - The company is committed to investing in R&D, expanding its sales force, and enhancing marketing efforts despite the pandemic [12][27] - A share repurchase program of up to 1 million shares was announced, reflecting confidence in the company's future [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the continued demand for their technologies, citing a shift in consumer spending towards aesthetic procedures due to reduced travel and entertainment expenses [37] - The company remains focused on maintaining operations and growth despite the ongoing challenges posed by COVID-19 [45] Other Important Information - The company has a strong balance sheet with cash and cash equivalents totaling $234.3 million as of September 30, 2020 [20] - Operating expenses increased by 42.4% year-over-year, primarily due to sales and marketing investments [18] Q&A Session Summary Question: About the commercial organization and growth plans - Management confirmed ongoing investments in R&D and sales force, including expansion in France and China [27] Question: On the share buyback strategy - The company plans to repurchase shares opportunistically, starting with the approved 1 million shares [29] Question: Importance of recent peer-reviewed studies - Management emphasized the role of studies in supporting marketing efforts and differentiating from competitors [31] Question: Insights on market demand and consumer behavior - There is observed pent-up demand for aesthetic procedures, with clinics reporting busier operations than usual [37][41] Question: Update on international market performance - The international market is expected to continue growing, with specific focus on China and South America despite challenges [44][45] Question: Installed base split and platform utilization - Out of 6,400 systems installed worldwide, 3,500 are in the US, with an increase in the number of platforms per office [52] Question: Revenue growth expectations for 2021 - Management indicated that revenue growth trends could continue similarly to previous years, with guidance to be provided in the next earnings call [54]