Intuitive(ISRG)2024-01-24 01:28Financial Data and Key Metrics Changes - Total revenue for 2023 was 1.93 billion, an increase of 17% from the previous year [21] - Pro forma gross margin for Q4 2023 was 68%, slightly down from 68.2% in Q4 2022 [25] - GAAP net income for Q4 2023 was 1.69 per share, compared to 0.91 per share, in Q4 2022 [28] Business Line Data and Key Metrics Changes - Procedures grew by 22% in 2023, with a 21% increase in da Vinci procedures in Q4 [8][19] - The installed base of systems grew 14% to 8,606 systems [19] - Ion procedures saw a 108% increase in Q4, with 16,500 procedures performed [23] - SP procedure growth accelerated to 58% in Q4, with 19 systems placed [24] Market Data and Key Metrics Changes - US procedures grew 17% in Q4, driven by general surgery [19] - OUS procedures grew 29%, with notable strength in China, the UK, Germany, and Japan [19] - In Europe, growth was led by general surgery and gynecology procedures, particularly in Germany, the UK, and France [36] Company Strategy and Development Direction - The company plans to focus on innovation through the launch of the da Vinci 5 platform and increased adoption of priority procedures [15][41] - The strategy includes improving care team satisfaction and lowering treatment costs [12] - The company aims to enhance gross margin and productivity, particularly in functions benefiting from scale [15][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in procedures and system utilization, indicating strong customer belief in their platforms [11] - The anticipated launch of da Vinci 5 is expected to impact operating margins in 2024 due to increased depreciation and a mix of new platform revenues [32][41] - The company expects procedure growth to moderate in 2024, with guidance of 13% to 16% growth [41] Other Important Information - The company repurchased 1.1 billion [18] - The company initiated local production of excise systems in China to meet tender requirements [26] - The company expects capital expenditures in 2024 to be between 1.2 billion, primarily for facility construction [43] Q&A Session Summary Question: Can you provide a framework for the financial implications of the new system beyond 2024? - Management indicated that the dynamics for da Vinci 5 are different from the Xi launch, and further comments will be made post-clearance [46] Question: What are the expectations for the ASP uplift with da Vinci 5? - Management refrained from providing specific ASP details until after clearance, noting differences from previous systems [55] Question: Can you discuss the supply chain challenges for Ion and SP? - Management acknowledged ongoing supply constraints for Ion and indicated progress is being made to resolve these issues [64] Question: What is the outlook for system placements in China? - Management expects system placements in China to be impacted through the first half of 2024 due to ongoing anti-corruption efforts [69] Question: Can you elaborate on the procedure growth guidance for 2024? - Management provided guidance of 13% to 16% growth, with expectations of moderation from the previous year [41]