InMode Reports First Quarter 2024 Financial Results; Quarterly Revenue of $80.3M Represents 24% Year-Over-Year Decrease; Pro Forma Revenue (including new platform pre-orders not yet available) of $96M;
Company Announces Share Repurchase Program of Up to 8.37
Appoints New Chairman of the Board of Directors
YOKNEAM,
First Quarter 2024 Highlights:
- Quarterly GAAP revenue of
$80.3 million , a decrease of 24% compared to the first quarter of 2023.InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 84% of its quarterly revenues, while 11% were derived fromInMode's traditional laser and non-invasive RF platforms and 5% were derived fromInMode's hands-free platforms. Pro-forma revenue (including pre-orders of new platforms not yet available) of$96 million . - GAAP net income of
$23.7 million , compared to$40.5 million in the first quarter of 2023; *non-GAAP net income of$27.7 million , compared to$44.7 million in the first quarter of 2023.**Pro-Forma Non-GAAP net income of$38.8 million . - GAAP diluted earnings per share of
$0.28 , compared to$0.47 in the first quarter of 2023; *non-GAAP diluted earnings per share of$0.32 , compared to$0.52 in the first quarter of 2023. **Pro-Forma Non-GAAP diluted earnings per share of$0.45 . - Record quarterly revenues from consumables and service of
$22.5 million , an increase of 13% compared to the first quarter of 2023. - Total cash position of
$770.5 million as ofMarch 31, 2024 , including cash and cash equivalents, marketable securities, and short-term bank deposits.
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Q1 2024 |
Q1 2023 |
Revenues |
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Gross Margins |
80 % |
83 % |
Net Income |
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Earnings per Diluted Share |
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*Non-GAAP Results
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Q1 2024 |
Q1 2023 |
Gross Margins |
80 % |
83 % |
Net Income |
|
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Earnings per Diluted Share |
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**Pro-Forma Non-GAAP Results
( |
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Q1 2024 |
Q1 2023 |
Revenue |
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Gross Margins |
82 % |
83 % |
Net Income |
|
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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 |
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** Pro-forma Non-GAAP results includes pre-orders of new platforms not yet available and excludes share-based compensation. |
Management Comments
"This year started with pre-orders in
"We are happy to announce that our Board of Directors has approved another share repurchase program, authorizing the buyback of up to 8.37 million shares. This marks the third such program in just four years, underscoring our confidence in the Company's future success and our commitment to enhancing shareholders' value.
"I would like to welcome Dr.
First Quarter 2024 Financial Results
Total GAAP revenues for the first quarter of 2024 reached
"During the first quarter, we began taking orders for some of our new platforms, though we are not able to recognize those sales as revenue until the pre-orders are delivered," said
GAAP and *Non-GAAP gross margin for the first quarter of 2024 was 80% compared to a gross margin of 83% for the first quarter of 2023. **Pro-forma Non-GAAP gross margin for the first quarter of 2024 was 82%.
GAAP operating margin for the first quarter of 2024 was 23%, compared to an operating margin of 39% in the first quarter of 2023. *Non-GAAP operating margin for the first quarter of 2024 was 27% compared to 43% for the first quarter of 2023. **Pro-forma Non-GAAP operating margin for the first quarter of 2024 was 35%. This decrease was primarily attributable to the decrease in systems sales in
2024 Financial Outlook
Management provided an outlook for the full year of 2024 ending
- Full Year 2024 revenue to be
$485 to$495 million compared to previous guidance of$495 million to$505 million - *Non-GAAP gross margin between 82% and 84% compared to previous guidance of 83% to 85%
- *Non-GAAP income from operations between
$169 million and$174 million compared to previous guidance of$217 million to$222 million - *Non-GAAP earnings per diluted share between
$2.01 and$2.05 compared to previous guidance of$2.53 to$2.57
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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. |
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*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between |
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** Pro-forma Non-GAAP results includes pre-orders of new platforms not yet available and excludes share-based compensation. |
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/10187938/fc1d661e7a.
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=Q0VCLo65
At:
The conference call will also be webcast live from a link on
Replay Pin Number: 9531570
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:
Email: ir@inmodemd.com
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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( |
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(Unaudited) |
||
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Three months ended |
|
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2024 |
2023 |
REVENUES |
80,284 |
106,074 |
COST OF REVENUES |
16,365 |
18,254 |
GROSS PROFIT |
63,919 |
87,820 |
OPERATING EXPENSES: |
|
|
Research and development |
3,518 |
3,102 |
Sales and marketing |
39,795 |
41,713 |
General and administrative |
2,514 |
2,008 |
TOTAL OPERATING EXPENSES |
45,827 |
46,823 |
OPERATIONS INCOME |
18,092 |
40,997 |
Finance income, net |
7,984 |
3,289 |
INCOME BEFORE INCOME TAXES |
26,076 |
44,286 |
INCOME TAXES |
2,380 |
3,781 |
NET INCOME |
23,696 |
40,505 |
|
|
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EARNINGS PER SHARE: |
|
|
Basic |
0.28 |
0.49 |
Diluted |
0.28 |
0.47 |
WEIGHTED AVERAGE NUMBER OF SHARES |
|
|
Basic |
84,523 |
83,154 |
Diluted |
85,965 |
85,387 |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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( |
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(Unaudited) |
||
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|
2024 |
2023 |
Assets |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
120,930 |
144,411 |
Marketable securities |
390,782 |
373,647 |
Short-term bank deposits |
258,829 |
223,547 |
Accounts receivable, net of allowance for credit losses |
33,102 |
42,362 |
Prepaid expense and other receivables |
18,939 |
16,268 |
Inventories |
51,602 |
45,095 |
TOTAL CURRENT ASSETS |
874,184 |
845,330 |
NON-CURRENT ASSETS: |
|
|
Accounts receivable, net of allowance for credit losses |
3,435 |
3,670 |
Deferred income tax asset |
1,494 |
1,506 |
Operating lease right-of-use assets |
9,593 |
9,698 |
Property and equipment, net |
2,329 |
2,382 |
Other investments |
700 |
700 |
TOTAL NON-CURRENT ASSETS |
17,551 |
17,956 |
TOTAL ASSETS |
891,735 |
863,286 |
Liabilities and shareholders' equity |
|
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CURRENT LIABILITIES: |
|
|
Accounts payable |
13,223 |
13,966 |
Contract liabilities |
20,516 |
10,923 |
Other liabilities |
31,256 |
39,247 |
TOTAL CURRENT LIABILITIES |
64,995 |
64,136 |
NON-CURRENT LIABILITIES: |
|
|
Contract liabilities |
3,435 |
3,766 |
Other liabilities |
1,657 |
1,399 |
Operating lease liabilities |
6,213 |
6,613 |
TOTAL NON-CURRENT LIABILITIES |
11,305 |
11,778 |
TOTAL LIABILITIES |
76,300 |
75,914 |
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|
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TOTAL SHAREHOLDERS' EQUITY |
815,435 |
787,372 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
891,735 |
863,286 |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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( |
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(Unaudited) |
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Three months ended |
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2024 |
2023 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
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Net income |
23,696 |
40,505 |
|
Adjustments required to reconcile net income to net cash provided by operating activities: |
|
|
|
Depreciation and amortization |
165 |
188 |
|
Share-based compensation expenses |
3,983 |
4,209 |
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Change in allowance for credit losses of trade receivable |
187 |
(22) |
|
Loss on marketable securities, net |
29 |
- |
|
Finance income, net |
(4,757) |
(1,512) |
|
Deferred income taxes |
(37) |
19 |
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Changes in operating assets and liabilities: |
|
|
|
Decrease in accounts receivable |
9,308 |
2,241 |
|
Increase in other receivables |
(2,669) |
(229) |
|
Increase in inventories |
(6,507) |
(914) |
|
Decrease in accounts payable |
(743) |
(4,255) |
|
Decrease in other liabilities |
(7,803) |
(23,043) |
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Increase in contract liabilities (current and non-current) |
9,262 |
3,926 |
|
Net cash provided by operating activities |
24,114 |
21,113 |
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CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
Investment in short-term deposits |
(31,297) |
(3,000) |
|
Proceeds from short-term deposits |
- |
3,000 |
|
Purchase of fixed assets |
(112) |
(341) |
|
Purchase of marketable securities |
(121,564) |
(77,929) |
|
Proceeds from sale of marketable securities |
13,465 |
- |
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Proceeds from maturity of marketable securities |
92,118 |
50,714 |
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Net cash used in investing activities |
(47,390) |
(27,556) |
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CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
Exercise of options |
234 |
1,673 |
|
Net cash provided by financing activities |
234 |
1,673 |
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EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH |
(439) |
191 |
|
|
(23,481) |
(4,579) |
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CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
144,411 |
97,540 |
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CASH AND CASH EQUIVALENTS AT END OF PERIOD |
120,930 |
92,961 |
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.
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CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS |
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( |
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(Unaudited) |
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Three months ended |
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2024 |
2023 |
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Revenues by Category: |
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|
|
|
|
|
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Capital Equipment revenues - |
30,859 |
38 % |
49,751 |
47 % |
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Capital Equipment revenues - International |
26,923 |
34 % |
36,373 |
34 % |
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Total Capital Equipment revenues |
57,782 |
72 % |
86,124 |
81 % |
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Consumables and service revenues |
22,502 |
28 % |
19,950 |
19 % |
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Total Revenue |
80,284 |
100 % |
106,074 |
100 % |
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Three months ended |
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2024 |
2023 |
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% |
% |
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Total |
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International |
Total |
Revenues by Technology: |
|
|
|
|
|
|
Minimally Invasive |
87 |
80 |
84 |
90 |
75 |
83 |
Hands-Free |
8 |
3 |
5 |
8 |
6 |
8 |
Non-Invasive |
5 |
17 |
11 |
2 |
19 |
9 |
|
100 |
100 |
100 |
100 |
100 |
100 |
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RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF |
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INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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( |
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(Unaudited) |
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Three months ended |
Three months ended |
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GAAP |
Share Based |
Non-GAAP |
GAAP |
Share Based |
Non-GAAP |
|
|
REVENUES |
80,284 |
- |
80,284 |
106,074 |
- |
106,074 |
|
COST OF REVENUES |
16,365 |
(409) |
15,956 |
18,254 |
(354) |
17,900 |
|
GROSS PROFIT |
63,919 |
409 |
64,328 |
87,820 |
354 |
88,174 |
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OPERATING EXPENSES: |
|
|
|
|
|
|
|
Research and development |
3,518 |
(428) |
3,090 |
3,102 |
(501) |
2,601 |
|
Sales and marketing |
39,795 |
(2,883) |
36,912 |
41,713 |
(3,038) |
38,675 |
|
General and administrative |
2,514 |
(263) |
2,251 |
2,008 |
(316) |
1,692 |
|
TOTAL OPERATING |
45,827 |
(3,574) |
42,253 |
46,823 |
(3,855) |
42,968 |
|
OPERATIONS INCOME |
18,092 |
3,983 |
22,075 |
40,997 |
4,209 |
45,206 |
|
Finance income, net |
7,984 |
- |
7,984 |
3,289 |
- |
3,289 |
|
INCOME BEFORE INCOME TAXES |
26,076 |
3,983 |
30,059 |
44,286 |
4,209 |
48,495 |
|
INCOME TAXES |
2,380 |
- |
2,380 |
3,781 |
- |
3,781 |
|
NET INCOME |
23,696 |
3,983 |
27,679 |
40,505 |
4,209 |
44,714 |
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|
|
|
|
|
|
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EARNINGS PER SHARE: |
|
|
|
|
|
|
|
Basic |
0.28 |
|
0.33 |
0.49 |
|
0.54 |
|
Diluted |
0.28 |
|
0.32 |
0.47 |
|
0.52 |
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WEIGHTED AVERAGE NUMBER OF |
|
|
|
|
|
|
|
Basic |
84,523 |
|
84,523 |
83,154 |
|
83,154 |
|
Diluted |
85,965 |
|
86,563 |
85,387 |
|
85,878 |
|
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