InMode(INMD)2023-07-27 15:13Financial Data and Key Metrics Changes - InMode reported record revenue of 0.72, compared to 629.4 million [17] Business Line Data and Key Metrics Changes - Revenue from consumables and services grew nearly 44% year-over-year, indicating increased usage of platforms [11] - Capital equipment sales represented 84% of total revenue, while consumables and service revenues accounted for 16% [14] - Sales outside the US reached 41.2 million in Q2 2022 [13] Market Data and Key Metrics Changes - InMode established two new subsidiaries in Japan and Germany to enhance direct sales capabilities [8] - Sales from Asia hit a new record, contributing to overall growth [13] - The company operates in 92 countries with over 264 direct sales representatives and 81 distributors [14] Company Strategy and Development Direction - InMode plans to invest heavily in product development, launching new technologies and platforms over the next 12 months [4] - The company aims to secure additional FDA indications, with eight studies currently in process [10] - InMode's strategy includes direct sales in markets where it previously relied on distributors, enhancing market presence and revenue recognition [67] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for consumables, with expectations for continued growth despite seasonal trends [25] - The competitive landscape remains challenging, but InMode's brand awareness and innovation are seen as advantages [50] - Management expressed confidence in the sustainability of growth, particularly in the ophthalmology market [12] Other Important Information - InMode became part of the Russell 2000 Index, enhancing its visibility among investors [10] - The company is focused on maintaining a strong balance sheet while exploring M&A opportunities [101] Q&A Session Summary Question: Sustainability of consumables demand amid macroeconomic headwinds - Management indicated strong demand continues into July, with expectations for Q3 and Q4 to be higher than current levels [25] Question: Trends in capital equipment demand and financing - Management noted that while financing conditions have tightened, demand remains strong, and they are adapting to the environment [28][30] Question: Seasonal cadence for system sales in the back half of the year - Management acknowledged typical seasonality but noted that demand in North America remains strong [42][44] Question: Competitive environment and market dynamics - Management stated that competition is strong, but their focus on brand awareness and innovation helps maintain their market position [50] Question: Updates on Empower platform and hiring - Management confirmed growth in Empower sales and ongoing discussions with the FDA regarding new indications [54] Question: Capital allocation priorities and potential M&A - Management is open to acquiring more IP and exploring M&A opportunities, but no immediate deals are confirmed [101] Question: Leasing dynamics and technology upgrades for customers - Management reported that leasing remains stable, and they provide upgrades for software at no cost when possible [104]