YOKNEAM, Israel, July 28, 2021 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2021.

Second Quarter 2021 Highlights:

• Record quarterly revenues of $87.3 million, an increase of 184% compared to the second quarter of 2020: InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 71% of quarterly revenues, while 22% came from InMode's hands-free platforms and 7% from InMode's traditional laser and non-invasive RF platforms
• Record GAAP net income of $40.9 million, compared to $8.6 million in the second quarter of 2020; *non-GAAP net income of $43.9 million, compared to $10.1 million in the second quarter of 2020
• Record GAAP diluted earnings per share of $0.95, compared to $0.21 in the second quarter of 2020; *non-GAAP diluted earnings per share of $1.02, compared to $0.24 in the second quarter of 2020
• Total cash position of $332.9 million as of June 30, 2021, including cash and cash equivalents, marketable securities and short-term bank deposits

*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"We are happy to report another strong quarter and share the successful results of our growth strategy. We've seen advancements in key areas of our business and our minimally invasive technologies are becoming the gold standard," said Moshe Mizrahy, CEO of InMode. "Consumable and service revenues have continued to experience high growth, increasing 22% from last quarter. This indicates that physicians are successfully adopting our procedures as well as keep increasing the use of each InMode system, which leads to a growing contribution of consumables to our overall revenues."

"Consumer demand is on a fast-track recovery to pre-COVID levels and was higher than anticipated in Q2. The pent-up demand is now being complemented by purchases and supported by long-term, sustainable industry trends for hands-free devices and minimally invasive procedures. We have also seen higher overall transaction amounts, which is attributed to the growing demand for our products but also to the ongoing training of our sales force. We are pleased to see high physician and patient satisfaction with our products and services. The attendance for our events has also been better than the pre-pandemic market, which is encouraging to see," stated Shakil Lakhani, President of InMode North America.

"It is with considerable optimism that we are launching Empower, a new platform focused on women's health, on August 15th. Empower will significantly increase our business in women's health and mark our major expansion into the gynecology market, which is three times the size of the aesthetics market. InMode will market this medically oriented platform to OB/GYN doctors, further diversifying our client base and verticals," commented Dr. Michael Kreindel, CTO and co-founder of InMode.

Yair Malca, CFO of InMode, added, "Recent business expansions in key markets contributed to InMode reporting record numbers. Operations outside the U.S. represented 34% of the business in H1 2021, compared to 23% in H1 2020. Asia and Europe were the biggest regions supporting InMode's growth outside the U.S. this quarter. As the market demand in the U.S. and globally increases, we believe that our profitable growth will continue, especially in light of our ever-expanding pipeline."

"As a company that values ESG [Environmental, Social and Governance] principles, we keep implementing our ESG initiatives across the board as we strive to use best practices in all our interactions with physicians, patients, shareholders, and partners. We are committed to holding ourselves to the highest standards as we expand globally and now operate in a total of 68 countries," commented Sandra Ziv, ESG Manager.

Second Quarter 2021 Financial ResultsTotal revenues for the second quarter of 2021 reached $87.3 million, an increase of 184% compared to the second quarter of 2020. "The increase in revenue was primarily due to the impact of the global COVID-19 pandemic, which significantly reduced economic activity and caused shutdowns in the U.S. during Q2 of 2020. Notably, international sales are growing dramatically year over year, as we successfully implement our U.S. growth strategy globally," commented Yair Malca, InMode's Chief Financial Officer.

GAAP gross margin for the second quarter of 2021 and 2020 was 85% for each period. *Non-GAAP gross margin for the second quarter of 2021 was 86% and 85% for the second quarter of 2020.

GAAP operating margin for the second quarter of 2021 was 48%, compared to 26% in the second quarter of 2020. *Non-GAAP operating margin for the second quarter of 2021 was 51%, compared to 30% in the second quarter of 2020. This increase stemmed primarily from the interruption of the sales cycle in April and May 2020 by the COVID-19 pandemic, while InMode continued to incur the non-variable sales and marketing expenditure during those months. In addition, the company's accelerated growth increased gross profit more than operating expenses, translating into a higher operating margin for the quarter.

InMode reported GAAP net income attributable to InMode Ltd of $40.9 million, or $0.95 per diluted share, in the second quarter of 2021, compared to $8.6 million, or $0.21 per diluted share, in the second quarter of 2020. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd of $43.9 million, or $1.02 per diluted share, in the second quarter of 2021, compared to $10.1 million, or $0.24 per diluted share, in the second quarter of 2020.

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

• Revenues between $305 million to $315 million
• *Non-GAAP gross margin between 84% to 86%
• *Non-GAAP income from operations between $135 million and $140 million
• *Non-GAAP earnings per diluted share between $3.10 and $3.25

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 MeasuresIn 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 InformationMr. 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, July 28, 2021, at 8:30 a.m. Eastern Time to discuss the second quarter 2021 financial results.

The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10157922/ea04627326   

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

At:8:30 a.m. Eastern Time5:30 a.m. Pacific Time3:30 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 July 28, 2021 at 12 p.m. Eastern Time to August 11, 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: 1-877-344-7529Replay Dial-in Canada TOLL-FREE: 855-669-9658Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088Replay Pin Number: 10157922To 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 InMode's website at https://inmodemd.com/investors/.

About InModeInMode 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. Consequently, 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 pertain only as of the date of this press release.

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SOURCE InMode Ltd.