InMode Reports Third Quarter 2024 Financial Results; Quarterly GAAP Revenue of $130.2 Million (which consists of $98.3 million of net sales in Q3 and $31.9 million of pre-orders from the first half of 2024)
YOKNEAM,
Third Quarter 2024 Highlights:
- Quarterly GAAP revenue of
$130.2 million (which consists of$98.3 million of net sales in Q3 and$31.9 million of pre-orders from the first half of 2024). - Quarterly revenues from consumables and service of
$15.8 million , a decrease of 11% compared to the third quarter of 2023. - GAAP operation income of
$48.2 million , *non-GAAP operation income of$52.2 million . - Total cash position of
$684.9 million as ofSeptember 30, 2024 , including cash and cash equivalents, marketable securities, and short-term bank deposits. - Full-year 2024 revenue guidance has been revised to be between
$410 million and$420 million , compared to prior guidance of$430 million to$440 million .
( |
||||
|
Q3 2024 |
Q3 2023 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Revenues |
|
|
296,965 |
365,267 |
Gross Margins |
82 % |
84 % |
81 % |
83 % |
Net Income |
|
|
98,504 |
142,754 |
Earnings per Diluted Share |
|
|
1.19 |
1.66 |
*Non-GAAP Results
( |
||||
|
Q3 2024 |
Q3 2023 |
Q1-Q3 2024 |
Q1-Q3 2023 |
Gross Margins |
82 % |
84 % |
81 % |
84 % |
Net Income |
|
|
111,626 |
160,032 |
Earnings per Diluted Share |
|
|
1.34 |
1.86 |
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between |
Management Comments
"The third quarter presented ongoing challenges for
Third Quarter 2024 Financial Results
Total GAAP revenues for the third quarter of 2024 reached
"Despite continued headwinds in the third quarter, we are pleased to have fulfilled our pre-orders ahead of schedule, allowing us to focus on execution once market demand recovers," said
GAAP and *non-GAAP gross margin for the third quarter of 2024 was 82% compared to a gross margin of 84% for the third quarter of 2023.
GAAP operating margin for the third quarter of 2024 was 37%, compared to an operating margin of 38% in the third quarter of 2023. *Non-GAAP operating margin for the third quarter of 2024 was 40% compared to 43% for the third quarter of 2023. This decrease was primarily attributable to higher sales and marketing expenses, primarily driven by our recent management changes costs, higher commissions, as well as additional investments in trade shows and workshop activities.
2024 Financial Outlook
Management provided an outlook for the full year of 2024 ending
- Full Year 2024 revenue to be between
$410 to$420 million compared to prior guidance of$430 million to$440 million - *Non-GAAP gross margin between 81% and 82% compared to prior guidance of 82% - 84%
- *Non-GAAP income from operations to be between
$140 million and$145 million compared to prior guidance of$150 million to$155 million - *Non-GAAP earnings per diluted share remains the same as in previous guidance at
$1.92 to$1.96 after taking into consideration the estimated shares that will be repurchased as part of the share repurchase programs announced this year
This outlook is not a guarantee of future performance, and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between
The Current Situation in
Regarding the current situation in
Use of Non-GAAP Financial Measures
In addition to
Conference Call Information
Mr. Moshe Mizrahy, Chief Executive Officer, Dr.
The Company encourages participants to pre-register for the conference call using the following link:
https://dpregister.com/sreg/10193479/fdae439271.
Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.
International Dial-in Number: 1-412-317-5736
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=X3HVujVC
At:
The conference call will also be webcast live from a link on
Replay Pin Number: 5305602
To access the replay using an international dial-in number, please select the link below:
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A replay of the conference call will also be available for 90 days on
About
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or
Company Contact:
Chief Financial Officer Phone: (949) 305-0108 Email: Yair.Malca@inmodemd.com |
Investor Relations Contact:
Email: ir@inmodemd.com
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
( (Unaudited) |
|||||
|
Three months ended |
Nine months ended |
|||
|
2024 |
2023 |
2024 |
2023 |
|
REVENUES |
130,232 |
123,112 |
296,965 |
365,267 |
|
COST OF REVENUES |
24,055 |
20,136 |
57,536 |
60,444 |
|
GROSS PROFIT |
106,177 |
102,976 |
239,429 |
304,823 |
|
OPERATING EXPENSES: |
|
|
|
|
|
Research and development |
3,254 |
3,268 |
10,470 |
9,937 |
|
Sales and marketing |
51,863 |
50,819 |
136,713 |
143,591 |
|
General and administrative |
2,799 |
2,479 |
7,579 |
6,879 |
|
TOTAL OPERATING EXPENSES |
57,916 |
56,566 |
154,762 |
160,407 |
|
OPERATIONS INCOME |
48,261 |
46,410 |
84,667 |
144,416 |
|
Finance income, net |
9,918 |
4,953 |
26,592 |
12,687 |
|
INCOME BEFORE INCOME TAXES |
58,179 |
51,363 |
111,259 |
157,103 |
|
INCOME TAXES |
7,189 |
4,843 |
12,755 |
14,349 |
|
NET INCOME |
50,990 |
46,520 |
98,504 |
142,754 |
|
|
|
|
|
|
|
EARNINGS PER SHARE: |
|
|
|
|
|
Basic |
0.66 |
0.56 |
1.20 |
1.71 |
|
Diluted |
0.65 |
0.54 |
1.19 |
1.66 |
|
WEIGHTED AVERAGE NUMBER OF SHARES |
|
|
|
|
|
Basic |
77,022 |
83,703 |
81,795 |
83,423 |
|
Diluted |
77,908 |
85,970 |
83,016 |
85,814 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS
( (Unaudited) |
||
|
|
|
|
2024 |
2023 |
Assets |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
164,838 |
144,411 |
Marketable securities |
281,458 |
373,647 |
Short-term bank deposits |
238,592 |
223,547 |
Accounts receivable, net of allowance for credit losses |
40,777 |
42,362 |
Prepaid expense and other receivables |
24,447 |
16,268 |
Inventories |
58,284 |
45,095 |
TOTAL CURRENT ASSETS |
808,396 |
845,330 |
NON-CURRENT ASSETS: |
|
|
Accounts receivable, net of allowance for credit losses |
2,917 |
3,670 |
Deferred income tax asset |
1,048 |
1,506 |
Operating lease right-of-use assets |
8,636 |
9,698 |
Property and equipment, net |
2,336 |
2,382 |
Other investments |
700 |
700 |
TOTAL NON-CURRENT ASSETS |
15,637 |
17,956 |
TOTAL ASSETS |
824,033 |
863,286 |
Liabilities and shareholders' equity |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
14,313 |
13,966 |
Contract liabilities |
17,230 |
10,923 |
Other liabilities |
44,155 |
39,247 |
TOTAL CURRENT LIABILITIES |
75,698 |
64,136 |
NON-CURRENT LIABILITIES: |
|
|
Contract liabilities |
3,318 |
3,766 |
Other liabilities |
2,808 |
1,399 |
Operating lease liabilities |
5,317 |
6,613 |
TOTAL NON-CURRENT LIABILITIES |
11,443 |
11,778 |
TOTAL LIABILITIES |
87,141 |
75,914 |
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
736,892 |
787,372 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
824,033 |
863,286 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
( (Unaudited) |
||||||
|
|
Three months ended |
Nine months ended |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net income |
50,990 |
46,520 |
98,504 |
142,754 |
|
|
Adjustments required to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
138 |
129 |
480 |
501 |
|
|
Share-based compensation expenses |
3,981 |
6,564 |
13,122 |
17,278 |
|
|
Change in allowance for credit losses of trade receivable |
130 |
426 |
414 |
665 |
|
|
Loss on marketable securities, net |
29 |
- |
170 |
- |
|
|
Finance expenses (income), net |
3,863 |
(527) |
(5,934) |
(3,236) |
|
|
Deferred income taxes |
35 |
(216) |
(58) |
(154) |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Decrease (increase) in accounts receivable |
(2,570) |
(10,753) |
1,924 |
(16,461) |
|
|
Increase in other receivables |
(860) |
(1,347) |
(7,577) |
(5,367) |
|
|
Increase in inventories |
(5,657) |
(1,421) |
(13,189) |
(92) |
|
|
Increase (decrease) in accounts payable |
(1,235) |
(962) |
347 |
(3,909) |
|
|
Increase (decrease) in other liabilities |
11,722 |
3,040 |
6,160 |
(12,792) |
|
|
Increase (decrease) in contract liabilities (current and non-current) |
(26,517) |
(9) |
5,859 |
(3,630) |
|
|
Net cash provided by operating activities |
34,049 |
41,444 |
100,222 |
115,557 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
Investment in short-term deposits |
(78,390) |
(138,140) |
(164,687) |
(166,140) |
|
|
Proceeds from short-term deposits |
138,140 |
50,590 |
151,640 |
85,090 |
|
|
Purchase of fixed assets |
(77) |
(149) |
(435) |
(684) |
|
|
Purchase of marketable securities |
(90,820) |
(60,588) |
(276,513) |
(192,707) |
|
|
Proceeds from sale of marketable securities |
22,233 |
- |
69,608 |
- |
|
|
Proceeds from maturity of marketable securities |
122,969 |
78,465 |
304,777 |
190,070 |
|
|
Net cash provided by (used in) investing activities |
114,055 |
(69,822) |
84,390 |
(84,371) |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
Repurchase of ordinary shares |
(76,556) |
- |
(165,536) |
- |
|
|
Exercise of options |
565 |
2,729 |
1,194 |
5,229 |
|
|
Net cash provided by (used in) financing activities |
(75,991) |
2,729 |
(164,342) |
5,229 |
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
728 |
(473) |
157 |
(222) |
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
72,841 |
(26,122) |
20,427 |
36,193 |
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
91,997 |
159,855 |
144,411 |
97,540 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
164,838 |
133,733 |
164,838 |
133,733 |
|
Revision of prior period financial information
The Company revised certain items within the investing activities with no impact on the net cash used in investing activities. The items impacted were "Investment in short-term deposits" and "Proceeds from short-term deposits" which were decreased by
These changes have no impact on our previously reported consolidated total cash flows from operating activities, financing activities and investing activities in the periods stated above as well as net income and net change in cash and cash equivalents.
The Company evaluated the materiality of the adjustments, individually and in the aggregate, considering both qualitative and quantitative factors, and concluded that it was immaterial to the Company's prior periods' consolidated financial information. Since the revision was not material to any prior interim period or annual consolidated financial statements, no amendments to previously filed interim or annual periodic financial information was required. Consequently, the Company has revised the historical consolidated financial information presented herein for the impact of the above.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
( (Unaudited)
|
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|
Three months ended |
Nine months ended |
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2024 |
2023 |
2024 |
2023 |
||||||||
Revenues by Category: |
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|||
Capital Equipment revenues - |
85,734 |
66 % |
67,969 |
55 % |
151,392 |
51 % |
191,548 |
53 % |
|||
Capital Equipment revenues - International |
28,662 |
22 % |
37,276 |
30 % |
86,191 |
29 % |
114,284 |
31 % |
|||
Total Capital Equipment revenues |
114,396 |
88 % |
105,245 |
85 % |
237,583 |
80 % |
305,832 |
84 % |
|||
Consumables and service revenues |
15,836 |
12 % |
17,867 |
15 % |
59,382 |
20 % |
59,435 |
16 % |
|||
Total Revenue |
130,232 |
100 % |
123,112 |
100 % |
296,965 |
100 % |
365,267 |
100 % |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
Nine months ended |
||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||
|
% |
% |
% |
% |
||||||||
|
|
International |
Total |
|
International |
Total |
|
International |
Total |
|
International |
Total |
Revenues by Technology: |
|
|
|
|
|
|
|
|
|
|
|
|
Minimal-Invasive |
95 |
77 |
90 |
85 |
80 |
83 |
90 |
82 |
88 |
87 |
76 |
83 |
Hands-Free |
4 |
3 |
4 |
11 |
4 |
9 |
7 |
3 |
5 |
10 |
5 |
8 |
Non-Invasive |
1 |
20 |
6 |
4 |
16 |
8 |
3 |
15 |
7 |
3 |
19 |
9 |
|
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
100 |
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
( (Unaudited) |
|
||||||
|
|
|
|||||
Three months ended |
Three months ended |
|
|||||
GAAP |
Share Based |
Non-GAAP |
GAAP |
Share Based |
Non-GAAP |
|
|
REVENUES |
130,232 |
- |
130,232 |
123,112 |
- |
123,112 |
|
COST OF REVENUES |
24,055 |
(481) |
23,574 |
20,136 |
(572) |
19,564 |
|
GROSS PROFIT |
106,177 |
481 |
106,658 |
102,976 |
572 |
103,548 |
|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Research and development |
3,254 |
(890) |
2,364 |
3,268 |
(729) |
2,539 |
|
Sales and marketing |
51,863 |
(2,300) |
49,563 |
50,819 |
(4,787) |
46,032 |
|
General and administrative |
2,799 |
(310) |
2,489 |
2,479 |
(476) |
2,003 |
|
TOTAL OPERATING |
57,916 |
(3,500) |
54,416 |
56,566 |
(5,992) |
50,574 |
|
OPERATIONS INCOME |
48,261 |
3,981 |
52,242 |
46,410 |
6,564 |
52,974 |
|
Finance income, net |
9,918 |
- |
9,918 |
4,953 |
- |
4,953 |
|
INCOME BEFORE INCOME TAXES |
58,179 |
3,981 |
62,160 |
51,363 |
6,564 |
57,927 |
|
INCOME TAXES |
7,189 |
- |
7,189 |
4,843 |
- |
4,843 |
|
NET INCOME |
50,990 |
3,981 |
54,971 |
46,520 |
6,564 |
53,084 |
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE: |
|
|
|
|
|
|
|
Basic |
0.66 |
|
0.71 |
0.56 |
|
0.63 |
|
Diluted |
0.65 |
|
0.70 |
0.54 |
|
0.61 |
|
WEIGHTED AVERAGE NUMBER OF |
|
|
|
|
|
|
|
Basic |
77,022 |
|
77,022 |
83,703 |
|
83,703 |
|
Diluted |
77,908 |
|
78,548 |
85,970 |
|
86,333 |
|
|
Nine months ended |
Nine months ended |
||||
GAAP |
Share Based |
Non-GAAP |
GAAP |
Share Based |
Non-GAAP |
|
REVENUES |
296,965 |
- |
296,965 |
365,267 |
- |
365,267 |
COST OF REVENUES |
57,536 |
(1,361) |
56,175 |
60,444 |
(1,473) |
58,971 |
GROSS PROFIT |
239,429 |
1,361 |
240,790 |
304,823 |
1,473 |
306,296 |
OPERATING EXPENSES: |
|
|
|
|
|
|
Research and development |
10,470 |
(1,877) |
8,593 |
9,937 |
(1,987) |
7,950 |
Sales and marketing |
136,713 |
(9,007) |
127,706 |
143,591 |
(12,556) |
131,035 |
General and administrative |
7,579 |
(877) |
6,702 |
6,879 |
(1,262) |
5,617 |
TOTAL OPERATING |
154,762 |
(11,761) |
143,001 |
160,407 |
(15,805) |
144,602 |
OPERATIONS INCOME |
84,667 |
13,122 |
97,789 |
144,416 |
17,278 |
161,694 |
Finance income, net |
26,592 |
- |
26,592 |
12,687 |
- |
12,687 |
INCOME BEFORE INCOME TAXES |
111,259 |
13,122 |
124,381 |
157,103 |
17,278 |
174,381 |
INCOME TAXES |
12,755 |
- |
12,755 |
14,349 |
- |
14,349 |
NET INCOME |
98,504 |
13,122 |
111,626 |
142,754 |
17,278 |
160,032 |
|
|
|
|
|
|
|
EARNINGS PER |
|
|
|
|
|
|
Basic |
1.20 |
|
1.36 |
1.71 |
|
1.92 |
Diluted |
1.19 |
|
1.34 |
1.66 |
|
1.86 |
WEIGHTED AVERAGE NUMBER OF |
|
|
|
|
|
|
Basic |
81,795 |
|
81,795 |
83,423 |
|
83,423 |
Diluted |
83,016 |
|
83,536 |
85,814 |
|
86,154 |
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