InMode Reports Fourth Quarter and Full Year 2023 Financial Results; Quarterly Revenue of $126.8M and Record Full Year Revenue of $492M
YOKNEAM,
Fourth Quarter 2023 Highlights:
- Quarterly revenue of
$126.8 million , compared to$133.6 in the fourth quarter of 2022. - Quarterly revenues from consumables and service of
$20.5 million , an increase of 20% compared to the fourth quarter of 2022. - Total cash position of
$741.6 million as ofDecember 31, 2023 , including cash and cash equivalents, marketable securities, and short-term bank deposits.
Full Year 202 3 Highlights:
- Record full year revenue of
$492 million , a year-over-year increase of 8%. - Record GAAP net income of
$197.9 million , compared to$161.5 million in 2022; record *non-GAAP net income of$221.5 million , compared to$207.5 million in 2022. - 18% increase in international (non-
U.S. ) revenues as compared to 2022.
( |
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Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Revenues |
|
|
|
|
Gross Margins |
84 % |
84 % |
84 % |
84 % |
Net Income |
|
|
|
|
Earnings per Diluted Share |
|
|
|
|
*Non-GAAP Results
( |
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|
Q4 2023 |
Q4 2022 |
FY 2023 |
FY 2022 |
Gross Margins |
84 % |
85 % |
84 % |
84 % |
Net Income |
|
|
|
|
Earnings per Diluted Share |
|
|
|
|
|
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*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A |
Management Comments
"In 2023, particularly the latter half, we saw challenges both for
"Looking ahead, we plan to launch 2 new platforms this year and believe that our market share will continue to grow as we introduce new and innovative technologies for minimally invasive aesthetics treatments. Our unique technology and continued commitment to bringing new platforms to market are pivotal in establishing
Fourth Quarter and Full Year 2023 Financial Results
Total revenues for the fourth quarter of 2023 reached
GAAP gross margin for the fourth quarter of 2023 and 2022 was 84%. *Non-GAAP gross margin for the fourth quarter of 2023 was 84% compared to a gross margin of 85% for the fourth quarter 2022. GAAP and *Non-GAAP gross margin for 2023 and 2022 was 84%.
GAAP operating margin for the fourth quarter of 2023 was 40%, compared to an operating margin of 45% in the fourth quarter of 2022. *Non-GAAP operating margin for the fourth quarter of 2023 was 45% compared to 50% for the fourth quarter of 2022. GAAP operating margin for 2023 was 40%, compared to the operating margin of 44% in 2022. *Non-GAAP operating margin for 2023 was 45%, compared to the operating margin of 49% in the full year of 2022. This decrease was primarily attributable to higher sales and marketing expenses, mainly because of the addition of new sales representatives, higher travel expenses, as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company's growth projections.
As of
2024 Financial Outlook
Management provided an outlook for the full year of 2024 ending
- Revenue between
$495 million and$505 million - *Non-GAAP gross margin between 83% and 85%
- *Non-GAAP income from operations between
$217 million and$222 million - *Non-GAAP earnings per diluted share between
$2.53 and$2.57
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 Israel
Regarding the current situation in
Use of Non-GAAP Financial Measures
In addition to
Conference Call Information
Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr.
The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10185217/fb446e05e4.
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=6h4ExUgZ
At:
The conference call will also be webcast live from a link on
Replay Pin Number: 6723856
To access the replay using an international dial-in number, please select the link below: https://services.choruscall.com/ccforms/replay.html
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:
Phone: (917) 607-8654 Email: ir@inmodemd.com |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
( (Unaudited) |
|||||
|
|||||
|
Three months ended
|
Year Ended
|
|||
|
2023 |
2022 |
2023 |
2022 |
|
REVENUES |
126,781 |
133,571 |
492,048 |
454,271 |
|
COST OF REVENUES |
20,264 |
21,002 |
80,708 |
73,485 |
|
GROSS PROFIT |
106,517 |
112,569 |
411,340 |
380,786 |
|
OPERATING EXPENSES: |
|
|
|
|
|
Research and development |
3,473 |
3,261 |
13,410 |
12,425 |
|
Sales and marketing |
49,451 |
47,012 |
193,042 |
160,576 |
|
General and administrative |
2,349 |
2,398 |
9,228 |
9,931 |
|
TOTAL OPERATING EXPENSES |
55,273 |
52,671 |
215,680 |
182,932 |
|
INCOME FROM OPERATIONS |
51,244 |
59,898 |
195,660 |
197,854 |
|
Finance income, net |
8,920 |
3,962 |
21,607 |
3,612 |
|
INCOME BEFORE TAXES |
60,164 |
63,860 |
217,267 |
201,466 |
|
INCOME TAXES |
4,999 |
26,152 |
19,348 |
39,946 |
|
NET INCOME |
55,165 |
37,708 |
197,919 |
161,520 |
|
|
|
|
|
|
|
NET INCOME PER SHARE: |
|
|
|
|
|
Basic |
0.66 |
0.46 |
2.37 |
1.96 |
|
Diluted |
0.64 |
0.44 |
2.30 |
1.89 |
|
WEIGHTED AVERAGE NUMBER OF SHARES |
|
|
|
|
|
Basic |
83,862 |
82,449 |
83,534 |
82,482 |
|
Diluted |
85,835 |
85,288 |
85,954 |
85,404 |
|
|
||
CONDENSED CONSOLIDATED BALANCE SHEETS
( (Unaudited) |
||
|
||
|
2023 |
2022 |
Assets |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
144,411 |
97,540 |
Marketable securities
(amortized cost of |
373,647 |
374,589 |
Short-term bank deposits |
223,547 |
75,254 |
Accounts receivable, net of allowance for credit losses of |
42,362 |
26,997 |
Other receivables |
16,268 |
15,094 |
Inventories |
45,095 |
39,897 |
TOTAL CURRENT ASSETS |
845,330 |
629,371 |
NON-CURRENT ASSETS: |
|
|
Accounts receivable, net of allowance for credit losses of |
3,670 |
3,973 |
Deferred income tax asset, net |
1,506 |
3,094 |
Operating lease right-of-use assets |
9,698 |
5,073 |
Property and equipment, net |
2,382 |
2,298 |
Other investments |
700 |
600 |
TOTAL NON-CURRENT ASSETS |
17,956 |
15,038 |
TOTAL ASSETS |
863,286 |
644,409 |
Liabilities and shareholders' equity |
|
|
CURRENT LIABILITIES: |
|
|
Accounts payable |
13,966 |
16,242 |
Contract liabilities |
10,923 |
13,798 |
Other liabilities |
39,247 |
51,980 |
TOTAL CURRENT LIABILITIES |
64,136 |
82,020 |
NON-CURRENT LIABILITIES: |
|
|
Contract liabilities |
3,766 |
3,959 |
Other liabilities |
1,399 |
303 |
Operating lease liabilities |
6,613 |
3,509 |
TOTAL NON-CURRENT LIABILITIES |
11,778 |
7,771 |
TOTAL LIABILITIES |
75,914 |
89,791 |
|
|
|
TOTAL SHAREHOLDERS' EQUITY |
787,372 |
554,618 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
863,286 |
644,409 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
( (Unaudited) |
||||||
|
||||||
|
|
Three months ended
|
Year Ended
|
|||
|
2023 |
2022 |
2023 |
2022 |
|
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net income |
55,165 |
37,708 |
197,919 |
161,520 |
|
|
Adjustments required to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
122 |
218 |
623 |
680 |
|
|
Share-based compensation expenses |
6,322 |
7,148 |
23,600 |
24,452 |
|
|
Allowance for doubtful accounts |
355 |
47 |
1,020 |
449 |
|
|
Loss on marketable securities, net |
- |
22 |
- |
71 |
|
|
Finance expenses (income), net |
(1,581) |
(2,737) |
(4,714) |
(1,210) |
|
|
Deferred income taxes, net |
(30) |
(72) |
(184) |
84 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Decrease (increase) in accounts receivable |
377 |
805 |
(16,084) |
(10,415) |
|
|
Decrease (increase) in other receivables |
3,143 |
(1,081) |
(2,224) |
(1,787) |
|
|
Increase in inventories |
(5,106) |
(4,087) |
(5,198) |
(18,871) |
|
|
Increase (decrease) in accounts payable |
1,633 |
2,946 |
(2,276) |
7,463 |
|
|
Increase (decrease) in other liabilities |
204 |
14,575 |
(12,588) |
17,941 |
|
|
Increase (decrease) in contract liabilities |
562 |
1,660 |
(3,068) |
1,201 |
|
|
Net cash provided by operating activities |
61,166 |
57,152 |
176,826 |
181,578 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
Investment in short-term deposits |
(67,101) |
- |
(233,241) |
(93,701) |
|
|
Proceeds from short-term deposits |
- |
- |
85,090 |
73,090 |
|
|
Purchase of fixed assets |
(21) |
(328) |
(705) |
(1,575) |
|
|
Other investments |
(100) |
- |
(100) |
- |
|
|
Purchase of marketable securities |
(52,527) |
(70,944) |
(245,337) |
(168,680) |
|
|
Proceeds from sale of marketable securities |
5,000 |
- |
5,000 |
2,303 |
|
|
Proceeds from maturity of marketable securities |
63,159 |
32,997 |
253,229 |
79,089 |
|
|
Net cash used in investing activities |
(51,590) |
(38,275) |
(136,064) |
(109,474) |
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
Repurchase of ordinary shares |
- |
- |
- |
(42,637) |
|
|
Exercise of options |
275 |
637 |
5,504 |
1,552 |
|
|
Net cash provided by (used in) financing activities |
275 |
637 |
5,504 |
(41,085) |
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
827 |
978 |
605 |
(1,615) |
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
10,678 |
20,492 |
46,871 |
29,404 |
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
133,733 |
77,048 |
97,540 |
68,136 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
144,411 |
97,540 |
144,411 |
97,540 |
|
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
( (Unaudited) |
||||||||
|
||||||||
|
Three months ended
|
Year ended
|
||||||
2023 |
2022 |
2023 |
2022 |
|||||
Revenues by Category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital Equipment revenues - |
69,253 |
55 % |
80,352 |
60 % |
260,801 |
53 % |
260,992 |
58 % |
Capital Equipment revenues - International |
37,004 |
29 % |
36,094 |
27 % |
151,288 |
31 % |
133,220 |
29 % |
Total Capital Equipment revenues |
106,257 |
84 % |
116,446 |
87 % |
412,089 |
84 % |
394,212 |
87 % |
Consumables and service revenues |
20,524 |
16 % |
17,125 |
13 % |
79,959 |
16 % |
60,059 |
13 % |
Total Net Revenue |
126,781 |
100 % |
133,571 |
100 % |
492,048 |
100 % |
454,271 |
100 % |
|
Three months ended |
Year ended |
||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||
|
% |
% |
% |
% |
||||||||
|
|
International |
Total |
|
International |
Total |
|
International |
Total |
|
International |
Total |
Revenues by Technology: |
|
|
|
|
|
|
|
|
|
|
|
|
Minimal-Invasive |
84 |
80 |
83 |
86 |
76 |
83 |
86 |
77 |
83 |
85 |
74 |
81 |
Hands-Free |
12 |
4 |
9 |
11 |
4 |
9 |
11 |
5 |
8 |
12 |
6 |
10 |
Non-Invasive |
4 |
16 |
8 |
3 |
20 |
8 |
3 |
18 |
9 |
3 |
20 |
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 Compensation |
Non-GAAP |
GAAP |
Share Based Compensation |
Undistributed Exempt Income |
Non-GAAP |
|
REVENUES |
126,781 |
- |
126,781 |
133,571 |
- |
- |
133,571 |
COST OF REVENUES |
20,264 |
(573) |
19,691 |
21,002 |
(553) |
- |
20,449 |
GROSS PROFIT |
106,517 |
573 |
107,090 |
112,569 |
553 |
|
113,122 |
OPERATING EXPENSES: |
|
|
|
|
|
|
|
Research and development |
3,473 |
(665) |
2,808 |
3,261 |
(918) |
- |
2,343 |
Sales and marketing |
49,451 |
(4,611) |
44,840 |
47,012 |
(5,069) |
- |
41,943 |
General and administrative |
2,349 |
(473) |
1,876 |
2,398 |
(608) |
- |
1,790 |
TOTAL OPERATING |
55,273 |
(5,749) |
49,524 |
52,671 |
(6,595) |
- |
46,076 |
INCOME FROM OPERATIONS |
51,244 |
6,322 |
57,566 |
59,898 |
7,148 |
|
67,046 |
Finance income, net |
8,920 |
- |
8,920 |
3,962 |
- |
- |
3,962 |
INCOME BEFORE TAXES |
60,164 |
6,322 |
66,486 |
63,860 |
7,148 |
|
71,008 |
INCOME TAXES |
4,999 |
- |
4,999 |
26,152 |
- |
(21,514) |
4,638 |
NET INCOME |
55,165 |
6,322 |
61,487 |
37,708 |
7,148 |
21,514 |
66,370 |
|
|
|
|
|
|
|
|
NET INCOME PER SHARE: |
|
|
|
|
|
|
|
Basic |
0.66 |
|
0.73 |
0.46 |
|
|
0.80 |
Diluted |
0.64 |
|
0.71 |
0.44 |
|
|
0.78 |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) |
|
|
|
|
|
|
|
Basic |
83,862 |
|
83,862 |
82,449 |
|
|
82,449 |
Diluted |
85,835 |
|
86,196 |
85,288 |
|
|
85,515 |
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
( (Unaudited) |
|||||||||
|
|||||||||
|
Year Ended |
Year Ended |
|
||||||
GAAP |
Share Based |
Non-GAAP |
GAAP |
Share Based |
Undistributed Exempt Income |
Non-GAAP |
|||
REVENUES |
492,048 |
- |
492,048 |
454,271 |
- |
- |
454,271 |
||
COST OF REVENUES |
80,708 |
(2,046) |
78,662 |
73,485 |
(1,917) |
- |
71,568 |
||
GROSS PROFIT |
411,340 |
2,046 |
413,386 |
380,786 |
1,917 |
- |
382,703 |
||
OPERATING EXPENSES: |
|
|
|
|
|
|
|
||
Research and development |
13,410 |
(2,652) |
10,758 |
12,425 |
(3,166) |
- |
9,259 |
||
Sales and marketing |
193,042 |
(17,167) |
175,875 |
160,576 |
(17,302) |
- |
143,274 |
||
General and administrative |
9,228 |
(1,735) |
7,493 |
9,931 |
(2,067) |
- |
7,864 |
||
TOTAL OPERATING |
215,680 |
(21,554) |
194,126 |
182,932 |
(22,535) |
- |
160,397 |
||
INCOME FROM OPERATIONS |
195,660 |
23,600 |
219,260 |
197,854 |
24,452 |
- |
222,306 |
||
Finance income, net |
21,607 |
- |
21,607 |
3,612 |
- |
- |
3,612 |
||
INCOME BEFORE TAXES |
217,267 |
23,600 |
240,867 |
201,466 |
24,452 |
- |
225,918 |
||
INCOME TAXES (TAX BENEFIT) |
19,348 |
- |
19,348 |
39,946 |
- |
(21,514) |
18,432 |
||
NET INCOME |
197,919 |
23,600 |
221,519 |
161,520 |
24,452 |
21,514 |
207,486 |
||
|
|
|
|
|
|
|
|
||
NET INCOME PER |
|
|
|
|
|
|
|
||
Basic |
2.37 |
|
2.65 |
1.96 |
|
|
2.52 |
||
Diluted |
2.30 |
|
2.57 |
1.89 |
|
|
2.42 |
||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) |
|
|
|
|
|
|
|
||
Basic |
83,534 |
|
83,534 |
82,482 |
|
|
82,482 |
||
Diluted |
85,954 |
|
86,177 |
85,404 |
|
|
85,628 |
||
|
|
|
|
|
|
|
|
|
|
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