Company Announcements

InMode Reports First Quarter 2021 Financial Results: Quarterly Revenues of $65.5 Million Represent 62% Year over Year Growth. GAAP Earnings per Share of $0.63, 320% Year over Year Growth

YOKNEAM, Israel, May 5, 2021 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced consolidated financial results for its first quarter ended March 31, 2021.

InMode Logo

First Quarter 2021 Highlights:

  • Quarterly revenues of $65.5 million, an increase of 62% compared to the first quarter of 2020: 69% of quarterly revenues derived from InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 24% from InMode's hands-free platforms and 7% from InMode's traditional laser and non-invasive RF platforms
  • GAAP net income of $26.6 million, compared to $6.4 million in the first quarter of 2020; *non-GAAP net income of $29.3 million, compared to $12.6 million in the first quarter of 2020
  • GAAP diluted earnings per share of $0.63, compared to $0.15 in the first quarter of 2020; *non-GAAP diluted earnings per share of $0.69, compared to $0.30 in the first quarter of 2020
  • Total cash position of $293.4 million as of March 31, 2021, including cash and cash equivalents, marketable securities and short-term bank deposits

       

U.S. GAAP Results

(U.S. dollars in thousands, except for per share data)


         Q1 2021

Q1 2020

Revenues

$65,524

$40,441

Gross Margins

85%

85%

Net Income Attributable to InMode Ltd.

$26,643

$6,433

Earnings per Diluted Share

$0.63

$0.15

*Non-GAAP Results

(U.S. dollars in thousands, except for per share data)


         Q1 2021

Q1 2020

Gross Margins

85%

85%

Net Income Attributable to InMode Ltd.

$29,341

$12,559

Earnings per Diluted Share

$0.69

$0.30

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.

Management Comments

"Our strong first quarter performance marks another impressive period of growth. Increases in revenues were driven by continued demand for our minimally invasive and hands-free devices in clinics around the world," commented Moshe Mizrahy, InMode's CEO. "In particular we've seen immense growth of our consumables sales, which have tripled over the last four quarters. This is a testament of our pervasive market penetration and the popularity of our solutions with both doctors and patients alike."

"Our pipeline continues to grow and includes many new projects as we plan on penetrating new medical categories in 2021 and beyond. In addition to gynecology and ophthalmology, we are also exploring urology and other verticals where our advanced capabilities and experience with bio polar RF technology will improve the quality of life for patients," stated Dr. Michael Kreindel, InMode's CTO and co-founder.

Shakil Lakhani, President of InMode North America, added, "The underlying demand for our non-invasive and effective aesthetic procedures continued to be strong in the first quarter with sales reaching an all-time high for the month of March. Our sales team and post-sales support were vital in generating interest across our portfolio of platforms and driving record consumables orders, as our virtual training platform successfully integrated new hires into our organization. We are pleased to see in-person events slowly returning back to normal and we are encouraged by the high levels of activity and engagement at these events."

"More practitioners are using our systems than ever before," added Dr. Spero Theodorou, InMode Chief Medical Officer. "We continue to engage with luminary doctors worldwide as they endorse InMode's innovative approach to aesthetics and wellness."

First Quarter 2021 Financial Results

Total revenues for the first quarter of 2021 were $65.5 million, an increase of 62% as compared to the first quarter of 2020. "The increase in revenues was primarily attributable to continued strong demand for our platforms in the beginning of the new year. Notably, international sales have grown dramatically year-over-year, as we successfully duplicate our U.S. growth strategy on a global scale," commented Yair Malca, InMode's Chief Financial Officer.

GAAP gross margin for the first quarter of 2021 and 2020 was 85%. *Non-GAAP gross margin for the first quarter of 2021 and 2020 was 85% as well.

GAAP operating margin for the first quarter of 2021 was 41%, compared to 15% in the first quarter of 2020. *Non-GAAP operating margin for the first quarter of 2021 was 45%, compared to 30% in the first quarter of 2020. This increase stemmed primarily from the fact that the sales cycle in March of 2020 was interrupted by the COVID-19 outbreak, and consequently, the marketing expenditure did not result in sales at the end of the first quarter of 2020. Also, in first quarter of 2021, marketing activities in the United States such as event and conference participation, remained minimal due to restrictions caused by the COVID-19 pandemic.

InMode reported GAAP net income attributable to InMode Ltd of $26.6 million, or $0.63 per diluted share, in the first quarter of 2021 compared to $6.4 million, or $0.15 per diluted share, in the first quarter of 2020. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd of $29.3 million, or $0.69 per diluted share, in the first quarter of 2021, compared to $12.6 million, or $0.30 per diluted share, in the first quarter of 2020.

2021 Financial Outlook

Management provided an outlook for the full year of 2021, the period ending December 31, 2021. Based on current estimates, management expects:

  • Revenues between $270 million to $280 million
  • *Non-GAAP gross margin between 84% to 86%
  • *Non-GAAP income from operations between $113 million to $118 million
  • *Non-GAAP earnings per diluted share between $2.60 to $2.75

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 U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release includes certain non-GAAP financial measures including non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes that they provide greater transparency to investors of management's view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measures may not be comparable to other similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, co-founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, May 5, 2021, at 8:30 a.m. Eastern Time to discuss the first quarter 2021 financial results.

The Company encourages participants to pre-register for the conference call using the following link:  https://dpregister.com/sreg/10153792/e5af7c2dc0

Callers will receive a unique dial-in 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 that 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.

U.S. Toll-Free Dial-in Number: 1-833-316-0562
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736

At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from May 5, 2021 at 12 p.m. Eastern Time to May 19, 2021 at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529 
Replay Dial-in Canada TOLL-FREE: 855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 10153792

A replay will also be available for 90 days on InMode's website at https://inmodemd.com/investors.

About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically-accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

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 InMode's future financial or operating performance, including the future performance described above under the heading titled "2021 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategy plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2021, risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Company Contact:

Yair Malca

Chief Financial Officer

Phone: (949) 305-0108

Email: Yair.Malca@inmodemd.com

Investor Relations Contact:

Miri Segal

MS-IR LLC

Phone: (917) 607-8654

Email: ir@inmodemd.com


 

 

 

INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)




Three months ended
March 31,


2021

2020

REVENUES

65,524

40,441

COST OF REVENUES

10,079

6,184

GROSS PROFIT

55,445

34,257

OPERATING EXPENSES:



Research and development

2,301

3,432

Sales and marketing

24,562

22,999

General and administrative

1,811

1,823

TOTAL OPERATING EXPENSES

28,674

28,254

INCOME FROM OPERATIONS

26,771

6,003

Finance income, net

44

629

INCOME BEFORE TAXES

26,815

6,632

INCOME TAXES

69

141

NET INCOME

26,746

6,491

Add: Net income attributable to non-controlling interests

(103)

(58)

NET INCOME ATTRIBUTABLE TO INMODE LTD.

26,643

6,433




NET INCOME PER SHARE:



Basic

0.68

0.19

Diluted

0.63

0.15

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)



Basic

39,029

33,963

Diluted

42,517

41,688

 

 

 

INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)





March 31,

2021

December 31,

2020

Assets



CURRENT ASSETS:



Cash and cash equivalents

64,901

68,938

Marketable securities

177,081

142,007

Short-term bank deposits

51,441

49,589

Accounts receivable, net of allowance for doubtful accounts

15,044

10,499

Other receivables

7,859

3,575

Inventories

15,700

14,983

TOTAL CURRENT ASSETS

332,026

289,591

NON-CURRENT ASSETS:



Accounts receivable

461

477

Other receivables

-

2,894

Deferred income taxes, net

223

64

Operating lease right-of-use assets

2,949

1,153

Property and equipment, net

1,033

982

Other investments

600

600

TOTAL NON-CURRENT ASSETS

5,266

6,170

TOTAL ASSETS

337,292

295,761




Liabilities and shareholders' equity



CURRENT LIABILITIES:



Accounts payable

7,410

6,410

Contract liabilities

13,273

11,900

Other liabilities

15,993

16,720

TOTAL CURRENT LIABILITIES

36,676

35,030

NON-CURRENT LIABILITIES:



Contract liabilities

1,936

1,988

Other liabilities

2,957

2,910

Operating lease liabilities

1,976

358

TOTAL NON-CURRENT LIABILITIES

6,869

5,256

TOTAL LIABILITIES

43,545

40,286




TOTAL SHAREHOLDERS' EQUITY

293,747

255,475

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

337,292

295,761

 

 

 

INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)




Three months ended
March 31,


2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:



Net income

26,746

6,491

Adjustments required to reconcile net income to net cash provided by operating activities:



Depreciation and amortization

114

94

Share-based compensation expenses

2,698

6,050

Allowance for doubtful accounts

40

306

Loss (gains) on marketable securities, net

4

(6)

Finance expenses, net

405

189

Deferred income taxes, net

(101)

368

Changes in operating assets and liabilities:



Decrease (increase) in accounts receivable

(4,569)

590

Increase in other receivables

(1,380)

(1,560)

Increase in inventories

(717)

(2,678)

Increase in accounts payable

1,000

1,014

Decrease in other liabilities

(795)

(1,793)

Increase (decrease) in contract liabilities

1,321

(2,945)

Net cash provided by operating activities

24,766

6,120

CASH FLOWS FROM INVESTING ACTIVITIES:



Investment in short-term deposits

(21,000)

(16,519)

Proceeds from short-term deposits

19,000

14,500

Purchase of fixed assets

(165)

(99)

Purchase of marketable securities

(62,245)

(43,933)

Proceeds from sale of marketable securities

26,802

38,574

Net cash (used in) investing activities

(37,608)

(7,477)

CASH FLOWS FROM FINANCING ACTIVITIES:



Repurchase of ordinary shares

(864)

-

Exercise of options

9,892

2,001

Net cash provided by financing activities

9,028

2,001

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(223)

(233)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

(4,037)

411




CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

68,938

44,727

CASH AND CASH EQUIVALENTS AT END OF PERIOD

64,901

45,138

 

 

 

INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data) 
(Unaudited)





Three months ended March 31,

Year Ended December,

2021

2020

2020

Revenues by Geography:







United States

44,065

67%

30,823

76%

149,488

73%

International

21,459

33%

9,618

24%

56,619

27%

Total Net Revenue

65,524

100%

40,441

100%

206,107

100%

 


Three months ended March 31,

Year Ended December,

2021

2020

2020

Revenues by Category:







Capital equipment revenues

57,731

88%

35,376

87%

185,320

90%

Consumables and service revenues

7,793

12%

5,065

13%

20,787

10%

Total Net Revenue

65,524

100%

40,441

100%

206,107

100%

 


Three months ended March 31,

2021

2020


%

%


United States

International

Total

United States

International

Total

Revenues by Technology:







Minimal-Invasive

65

77

69

61

75

65

Hands-Free

33

6

24

37

6

29

Non-Invasive

2

17

7

2

19

6


100

100

100

100

100

100

 

 

 

INMODE LTD.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF 
INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME 
(U.S. dollars in thousands, except for per share data)
(Unaudited)





Three months ended March 31, 2021

Three months ended March 31, 2020

GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Non-GAAP

REVENUES

65,524

-

65,524

40,441

-

40,441

COST OF REVENUES

10,079

(229)

9,850

6,184

(76)

6,108

GROSS PROFIT

55,445

229

55,674

34,257

76

34,333

OPERATING EXPENSES:







Research and development

2,301

(301)

2,000

3,432

(1,886)

1,546

Sales and marketing

24,562

(1,932)

22,630

22,999

(3,838)

19,161

General and administrative

1,811

(236)

1,575

1,823

(250)

1,573

TOTAL OPERATING
EXPENSES

 

28,674

 

(2,469)

 

26,205

 

28,254

 

(5,974)

 

22,280

INCOME FROM OPERATIONS

 

26,771

2,698

29,469

6,003

6,050

12,053

Finance income, net

44

-

44

629

-

629

INCOME BEFORE TAXES

26,815

2,698

29,513

6,632

6,050

12,682

INCOME TAXES (TAX BENEFIT)

 

69

 

-

 

69

 

141

 

(76)

 

65

NET INCOME

26,746

2,698

29,444

6,491

6,126

12,617

Add: Net Income attributable to non-controlling interests

 

(103)

 

-

 

(103)

 

(58)

 

-

 

(58)

NET INCOME ATTRIBUTABLE TO INMODE LTD.

 

 

26,643

 

 

2,698

 

 

29,341

 

 

6,433

 

 

6,126

 

 

12,559








NET INCOME PER
SHARE:







Basic

0.68


0.75

0.19


0.37

Diluted

0.63


0.69

0.15


0.30

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)







Basic

39,029


39,029

33,963


33,963

Diluted

 

42,517


 

42,707

 

41,688


 

41,809

 

 

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SOURCE InMode Ltd.