InMode(INMD)2025-02-06 14:08Financial Data and Key Metrics Changes - InMode generated 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 0.64 in Q4 2023, and 2.30 in 2023 [23] - Non-GAAP diluted earnings per share for Q4 were 0.71 in Q4 2023, and 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 49.5 million in the same period last year [21] Market Data and Key Metrics Changes - Fourth quarter sales outside the U.S. were 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]