• Record quarterly revenues of $94.2 million, an increase of 58% compared to the third quarter of 2020: InMode’s proprietary surgical technology
platforms engaged in minimally invasive and subdermal ablative treatments represented 73% of quarterly revenues, while 18% came from InMode’s hands-free platforms and 9% from InMode’s traditional laser and non-invasive RF platforms
|
||
• Record GAAP net income of $44.7 million, compared to $23.9 million in the third quarter of 2020; *non-GAAP net income of $47.9 million, compared
to $26.6 million in the third quarter of 2020
|
||
• Record GAAP diluted earnings per share(1) of $0.52, compared to $0.28 in the third quarter of 2020; *non-GAAP diluted earnings per
share(1) of $0.55, compared to $0.31 in the third quarter of 2020
|
||
• Total cash position of $387.4 million as of September 30, 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)
|
||
Q3 2021
|
Q3 2020
|
|
Revenues
|
$94,176
|
$59,714
|
Gross Margins
|
85%
|
84%
|
Net Income Attributable to InMode Ltd.
|
$44,718
|
$23,895
|
Earnings per Diluted Share(1)
|
$0.52
|
$0.28
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
||
Q3 2021
|
Q3 2020
|
|
Gross Margins
|
86%
|
85%
|
Net Income Attributable to InMode Ltd.
|
$47,910
|
$26,638
|
Earnings per Diluted Share(1)
|
$0.55
|
$0.31
|
● |
Revenues between $343 million and $347 million
|
● |
*Non-GAAP gross margin between 84% and 86%
|
● |
*Non-GAAP income from operations between $165 million and $167 million
|
● |
*Non-GAAP earnings per diluted share(1) between $1.91 and $1.93
|
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
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
REVENUES
|
94,176
|
59,714
|
247,025
|
130,920
|
||||||||||||
COST OF REVENUES
|
13,943
|
9,395
|
36,745
|
20,274
|
||||||||||||
GROSS PROFIT
|
80,233
|
50,319
|
210,280
|
110,646
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Research and development
|
2,248
|
1,959
|
7,004
|
7,207
|
||||||||||||
Sales and marketing
|
30,835
|
23,758
|
84,067
|
61,293
|
||||||||||||
General and administrative
|
2,132
|
1,309
|
5,884
|
4,745
|
||||||||||||
TOTAL OPERATING EXPENSES
|
35,215
|
27,026
|
96,955
|
73,245
|
||||||||||||
INCOME FROM OPERATIONS
|
45,018
|
23,293
|
113,325
|
37,401
|
||||||||||||
Finance income (expenses), net
|
(65
|
)
|
798
|
407
|
2,063
|
|||||||||||
INCOME BEFORE TAXES
|
44,953
|
24,091
|
113,732
|
39,464
|
||||||||||||
INCOME TAXES
|
235
|
207
|
1,343
|
509
|
||||||||||||
NET INCOME
|
44,718
|
23,884
|
112,389
|
38,955
|
||||||||||||
Add: Loss (net income) attributable to non-controlling interests
|
-
|
11
|
(103
|
)
|
(39
|
)
|
||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
44,718
|
23,895
|
112,286
|
38,916
|
||||||||||||
NET INCOME PER SHARE (1):
|
||||||||||||||||
Basic
|
0.54
|
0.33
|
1.39
|
0.55
|
||||||||||||
Diluted
|
0.52
|
0.28
|
1.31
|
0.46
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) (1)
|
||||||||||||||||
Basic
|
82,705
|
73,395
|
80,843
|
71,084
|
||||||||||||
Diluted
|
86,264
|
84,165
|
85,802
|
83,788
|
September 30,
2021
|
December 31,
2020
|
|||||||
Assets
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
68,928
|
68,938
|
||||||
Marketable securities
|
265,262
|
142,007
|
||||||
Short-term bank deposits
|
53,221
|
49,589
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
22,629
|
10,499
|
||||||
Other receivables
|
10,770
|
3,575
|
||||||
Inventories
|
19,178
|
14,983
|
||||||
TOTAL CURRENT ASSETS
|
439,988
|
289,591
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Accounts receivable
|
450
|
477
|
||||||
Other receivables
|
-
|
2,894
|
||||||
Deferred income taxes, net
|
607
|
64
|
||||||
Operating lease right-of-use assets
|
4,652
|
1,153
|
||||||
Property and equipment, net
|
1,361
|
982
|
||||||
Other investments
|
600
|
600
|
||||||
TOTAL NON-CURRENT ASSETS
|
7,670
|
6,170
|
||||||
TOTAL ASSETS
|
447,658
|
295,761
|
||||||
Liabilities and shareholders’ equity
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
8,884
|
6,410
|
||||||
Contract liabilities
|
12,804
|
11,900
|
||||||
Other liabilities
|
32,183
|
16,720
|
||||||
TOTAL CURRENT LIABILITIES
|
53,871
|
35,030
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Contract liabilities
|
2,279
|
1,988
|
||||||
Other liabilities
|
3,936
|
2,910
|
||||||
Operating lease liabilities
|
3,546
|
358
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
9,761
|
5,256
|
||||||
TOTAL LIABILITIES
|
63,632
|
40,286
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
384,026
|
255,475
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
447,658
|
295,761
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income
|
44,718
|
23,884
|
112,389
|
38,955
|
||||||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
136
|
108
|
378
|
307
|
||||||||||||
Share-based compensation expenses
|
3,192
|
2,404
|
8,838
|
9,614
|
||||||||||||
Allowance for doubtful accounts
|
48
|
-
|
375
|
466
|
||||||||||||
Loss on marketable securities, net
|
26
|
11
|
33
|
2
|
||||||||||||
Finance expenses (income), net
|
789
|
(279
|
)
|
1,598
|
(11
|
)
|
||||||||||
Deferred income taxes, net
|
(189
|
)
|
347
|
(391
|
)
|
1,173
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Increase in accounts receivable
|
(4,403
|
)
|
(7,628
|
)
|
(12,478
|
)
|
(10,083
|
)
|
||||||||
Decrease (increase) in other receivables
|
(4,101
|
)
|
537
|
(4,418
|
)
|
(960
|
)
|
|||||||||
Decrease (increase) in inventories
|
(1,784
|
)
|
1,356
|
(4,195
|
)
|
(5,463
|
)
|
|||||||||
Increase in accounts payable
|
1,161
|
257
|
2,474
|
581
|
||||||||||||
Increase in other liabilities
|
11,157
|
4,187
|
16,194
|
4,717
|
||||||||||||
Increase (decrease) in contract liabilities
|
(277
|
)
|
5,010
|
1,195
|
(1,660
|
)
|
||||||||||
Net cash provided by operating activities
|
50,473
|
30,194
|
121,992
|
37,638
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Investment in short-term deposits
|
(25,090
|
)
|
(18,090
|
)
|
(66,090
|
)
|
(49,699
|
)
|
||||||||
Proceeds from short-term deposits
|
24,090
|
6,720
|
62,180
|
34,810
|
||||||||||||
Purchase of fixed assets
|
(254
|
)
|
(103
|
)
|
(757
|
)
|
(428
|
)
|
||||||||
Purchase of marketable securities
|
(77,547
|
)
|
(41,085
|
)
|
(203,274
|
)
|
(119,394
|
)
|
||||||||
Proceeds from sale of marketable securities
|
30,660
|
25,500
|
78,642
|
117,786
|
||||||||||||
Net cash (used in) investing activities
|
(48,141
|
)
|
(27,058
|
)
|
(129,299
|
)
|
(16,925
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repurchase of ordinary shares
|
-
|
-
|
(11,921
|
)
|
-
|
|||||||||||
Exercise of options
|
5,200
|
698
|
19,803
|
3,248
|
||||||||||||
Net cash provided by financing activities
|
5,200
|
698
|
7,882
|
3,248
|
||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(376
|
)
|
234
|
(585
|
)
|
147
|
||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
7,156
|
4,068
|
(10
|
)
|
24,108
|
|||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
61,772
|
64,767
|
68,938
|
44,727
|
||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
68,928
|
68,835
|
68,928
|
68,835
|
Three months ended September 30,
|
Nine months ended September 30,
|
Year ended
December 31,
|
||||||||||||||||||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
2020
|
||||||||||||||||||||||||||||||||||||
Revenues by Geography:
|
||||||||||||||||||||||||||||||||||||||||
United States
|
62,613
|
66
|
%
|
40,880
|
68
|
%
|
163,048
|
66
|
%
|
95,763
|
73
|
%
|
149,488
|
73
|
%
|
|||||||||||||||||||||||||
International
|
31,563
|
34
|
%
|
18,834
|
32
|
%
|
83,977
|
34
|
%
|
35,157
|
27
|
%
|
56,619
|
27
|
%
|
|||||||||||||||||||||||||
Total Net Revenue
|
94,176
|
100
|
%
|
59,714
|
100
|
%
|
247,025
|
100
|
%
|
130,920
|
100
|
%
|
206,107
|
100
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
Year ended
December 31,
|
||||||||||||||||||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
2020
|
||||||||||||||||||||||||||||||||||||
Revenues by Category:
|
||||||||||||||||||||||||||||||||||||||||
Capital equipment revenues
|
85,067
|
90
|
%
|
54,305
|
91
|
%
|
220,644
|
89
|
%
|
116,862
|
89
|
%
|
185,320
|
90
|
%
|
|||||||||||||||||||||||||
Consumables and service revenues
|
9,109
|
10
|
%
|
5,409
|
9
|
%
|
26,381
|
11
|
%
|
14,058
|
11
|
%
|
20,787
|
10
|
%
|
|||||||||||||||||||||||||
Total Net Revenue
|
94,176
|
100
|
%
|
59,714
|
100
|
%
|
247,025
|
100
|
%
|
130,920
|
100
|
%
|
206,107
|
100
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||||||||||||||||||||||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||||||||||||||||||||||||||||||||||
%
|
%
|
%
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|||||||||||||||||||||||||||||||||||||
Revenues by Technology:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Minimally Invasive
|
73
|
73
|
73
|
54
|
70
|
59
|
70
|
74
|
71
|
56
|
72
|
60
|
||||||||||||||||||||||||||||||||||||
Hands-Free
|
25
|
5
|
18
|
43
|
13
|
34
|
28
|
7
|
21
|
42
|
10
|
34
|
||||||||||||||||||||||||||||||||||||
Non-Invasive
|
2
|
22
|
9
|
3
|
17
|
7
|
2
|
19
|
8
|
2
|
18
|
6
|
||||||||||||||||||||||||||||||||||||
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
Three months ended September 30, 2021
|
Three months ended September 30, 2020
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
94,176
|
-
|
94,176
|
59,714
|
-
|
59,714
|
||||||||||||||||||
COST OF REVENUES
|
13,943
|
(301
|
)
|
13,642
|
9,395
|
(155
|
)
|
9,240
|
||||||||||||||||
GROSS PROFIT
|
80,233
|
301
|
80,534
|
50,319
|
155
|
50,474
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
2,248
|
(425
|
)
|
1,823
|
1,959
|
(124
|
)
|
1,835
|
||||||||||||||||
Sales and marketing
|
30,835
|
(2,208
|
)
|
28,627
|
23,758
|
(1,974
|
)
|
21,784
|
||||||||||||||||
General and administrative
|
2,132
|
(258
|
)
|
1,874
|
1,309
|
(151
|
)
|
1,158
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
35,215
|
(2,891
|
)
|
32,324
|
27,026
|
(2,249
|
)
|
24,777
|
||||||||||||||||
INCOME FROM OPERATIONS
|
45,018
|
3,192
|
48,210
|
23,293
|
2,404
|
25,697
|
||||||||||||||||||
Finance income (expenses), net
|
(65
|
)
|
-
|
(65
|
)
|
798
|
-
|
798
|
||||||||||||||||
INCOME BEFORE TAXES
|
44,953
|
3,192
|
48,145
|
24,091
|
2,404
|
26,495
|
||||||||||||||||||
INCOME TAXES (TAX BENEFIT)
|
235
|
-
|
235
|
207
|
(339
|
)
|
(132
|
)
|
||||||||||||||||
NET INCOME
|
44,718
|
3,192
|
47,910
|
23,884
|
2,743
|
26,627
|
||||||||||||||||||
Add: Loss attributable to non-controlling interests
|
-
|
-
|
-
|
11
|
-
|
11
|
||||||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
44,718
|
3,192
|
47,910
|
23,895
|
2,743
|
26,638
|
||||||||||||||||||
NET INCOME PER SHARE (1):
|
||||||||||||||||||||||||
Basic
|
0.54
|
0.58
|
0.33
|
0.36
|
||||||||||||||||||||
Diluted
|
0.52
|
0.55
|
0.28
|
0.31
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) (1)
|
||||||||||||||||||||||||
Basic
|
82,705
|
82,705
|
73,395
|
73,395
|
||||||||||||||||||||
Diluted
|
86,264
|
86,494
|
84,165
|
84,577
|
Nine months ended September 30, 2021
|
Nine months ended September 30, 2020
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
247,025
|
-
|
247,025
|
130,920
|
-
|
130,920
|
||||||||||||||||||
COST OF REVENUES
|
36,745
|
(804
|
)
|
35,941
|
20,274
|
(380
|
)
|
19,894
|
||||||||||||||||
GROSS PROFIT
|
210,280
|
804
|
211,084
|
110,646
|
380
|
111,026
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
7,004
|
(1,112
|
)
|
5,892
|
7,207
|
(2,132
|
)
|
5,075
|
||||||||||||||||
Sales and marketing
|
84,067
|
(6,154
|
)
|
77,913
|
61,293
|
(6,569
|
)
|
54,724
|
||||||||||||||||
General and administrative
|
5,884
|
(768
|
)
|
5,116
|
4,745
|
(533
|
)
|
4,212
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
96,955
|
(8,034
|
)
|
88,921
|
73,245
|
(9,234
|
)
|
64,011
|
||||||||||||||||
INCOME FROM OPERATIONS
|
113,325
|
8,838
|
122,163
|
37,401
|
9,614
|
47,015
|
||||||||||||||||||
Finance income, net
|
407
|
-
|
407
|
2,063
|
-
|
2,063
|
||||||||||||||||||
INCOME BEFORE TAXES
|
113,732
|
8,838
|
122,570
|
39,464
|
9,614
|
49,078
|
||||||||||||||||||
INCOME TAXES (TAX BENEFIT)
|
1,343
|
-
|
1,343
|
509
|
(763
|
)
|
(254
|
)
|
||||||||||||||||
NET INCOME
|
112,389
|
8,838
|
121,227
|
38,955
|
10,377
|
49,332
|
||||||||||||||||||
Add: Net Income attributable to non-controlling interests
|
(103
|
)
|
-
|
(103
|
)
|
(39
|
)
|
-
|
(39
|
)
|
||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
112,286
|
8,838
|
121,124
|
38,916
|
10,377
|
49,293
|
||||||||||||||||||
NET INCOME PER SHARE (1):
|
||||||||||||||||||||||||
Basic
|
1.39
|
1.50
|
0.55
|
0.69
|
||||||||||||||||||||
Diluted
|
1.31
|
1.41
|
0.46
|
0.59
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) (1)
|
||||||||||||||||||||||||
Basic
|
80,843
|
80,843
|
71,084
|
71,084
|
||||||||||||||||||||
Diluted
|
85,802
|
86,059
|
83,788
|
84,122
|