• |
Record quarterly revenues of $59.7 million, an increase of 49% compared to the third quarter of 2019; approximately 58% of quarterly revenues derived from InMode’s proprietary surgical technology platforms
engaged in minimally invasive and subdermal ablative treatments, approximately 35% of quarterly revenues derived from InMode’s recently introduced hands-free platforms and approximately 7% derived from InMode’s traditional laser and
non-invasive RF platforms
|
• |
Record GAAP net income of $23.9 million, compared to $16.2 million in the third quarter of 2019; *non-GAAP net income of $26.6 million, compared to $16.5 million in the third quarter of
2019
|
• |
Record GAAP diluted earnings per share of $0.57 compared to $0.42 in the third quarter of 2019; *non-GAAP diluted earnings per share of $0.63 compared to $0.42 in the third quarter of 2019
|
• |
Total cash position of $234.3 million as of September 30, 2020, 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 2020
|
Q3 2019
|
|
Revenues
|
$59,714
|
$40,010
|
Gross Margins
|
84%
|
87%
|
Net Income Attributable to InMode Ltd.
|
$23,895
|
$16,186
|
Earnings per Diluted Share
|
$0.57
|
$0.42
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
||
Q3 2020
|
Q3 2019
|
|
Gross Margins
|
85%
|
87%
|
Net Income Attributable to InMode Ltd.
|
$26,638
|
$16,512
|
Earnings per Diluted Share
|
$0.63
|
$0.42
|
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, |
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
REVENUES
|
59,714
|
40,010
|
130,920
|
109,359
|
||||||||||||
COST OF REVENUES
|
9,395
|
5,047
|
20,274
|
14,193
|
||||||||||||
GROSS PROFIT
|
50,319
|
34,963
|
110,646
|
95,166
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Research and development
|
1,959
|
1,329
|
7,207
|
4,112
|
||||||||||||
Sales and marketing
|
23,758
|
16,726
|
61,293
|
46,721
|
||||||||||||
General and administrative
|
1,309
|
927
|
4,745
|
2,693
|
||||||||||||
TOTAL OPERATING EXPENSES
|
27,026
|
18,982
|
73,245
|
53,526
|
||||||||||||
INCOME FROM OPERATIONS
|
23,293
|
15,981
|
37,401
|
41,640
|
||||||||||||
Finance income, net
|
798
|
479
|
2,063
|
1,264
|
||||||||||||
INCOME BEFORE TAXES
|
24,091
|
16,460
|
39,464
|
42,904
|
||||||||||||
INCOME TAXES
|
207
|
267
|
509
|
718
|
||||||||||||
NET INCOME
|
23,884
|
16,193
|
38,955
|
42,186
|
||||||||||||
Add: Loss (net income) attributable to non-controlling interests
|
11
|
(7
|
)
|
(39
|
)
|
(79
|
)
|
|||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
23,895
|
16,186
|
38,916
|
42,107
|
||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||
Basic
|
0.65
|
0.53
|
1.09
|
1.50
|
||||||||||||
Diluted
|
0.57
|
0.42
|
0.93
|
1.15
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE
|
||||||||||||||||
Basic
|
36,697
|
30,297
|
35,542
|
28,031
|
||||||||||||
Diluted
|
42,082
|
39,004
|
41,894
|
36,654
|
September 30,
2020
|
December 31,
2019
|
|||||||
Assets
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
68,835
|
44,727
|
||||||
Marketable securities
|
122,046
|
120,144
|
||||||
Short-term bank deposits
|
43,436
|
28,491
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
16,164
|
6,628
|
||||||
Other receivables
|
4,790
|
3,810
|
||||||
Inventories
|
14,871
|
9,408
|
||||||
TOTAL CURRENT ASSETS
|
270,142
|
213,208
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Accounts receivable
|
455
|
374
|
||||||
Deferred income taxes, net
|
606
|
1,899
|
||||||
Operating lease right-of-use assets
|
1,282
|
1,369
|
||||||
Property and equipment, net
|
1,056
|
935
|
||||||
Other investments
|
600
|
600
|
||||||
TOTAL NON-CURRENT ASSETS
|
3,999
|
5,177
|
||||||
TOTAL ASSETS
|
274,141
|
218,385
|
||||||
Liabilities and shareholders’ equity
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
4,283
|
3,702
|
||||||
Contract liabilities
|
15,671
|
15,587
|
||||||
Other liabilities
|
17,572
|
13,205
|
||||||
TOTAL CURRENT LIABILITIES
|
37,526
|
32,494
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Contract liabilities
|
2,069
|
3,813
|
||||||
Other liabilities
|
1,969
|
1,494
|
||||||
Operating lease liabilities
|
519
|
744
|
||||||
Deferred income taxes, net
|
32
|
37
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
4,589
|
6,088
|
||||||
TOTAL LIABILITIES
|
42,115
|
38,582
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
232,026
|
179,803
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
274,141
|
218,385
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income
|
23,884
|
16,193
|
38,955
|
42,186
|
||||||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
108
|
77
|
307
|
214
|
||||||||||||
Share-based compensation expenses
|
2,404
|
385
|
9,614
|
1,199
|
||||||||||||
Allowance for doubtful accounts
|
-
|
55
|
466
|
133
|
||||||||||||
Loss on marketable securities, net
|
11
|
-
|
2
|
-
|
||||||||||||
Finance income, net
|
(279
|
)
|
(86
|
)
|
(11
|
)
|
(395
|
)
|
||||||||
Deferred income taxes, net
|
347
|
(68
|
)
|
1,173
|
(211
|
)
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Increase in accounts receivable
|
(7,628
|
)
|
(2,324
|
)
|
(10,083
|
)
|
(597
|
)
|
||||||||
Decrease (increase) in other receivables
|
537
|
(1,814
|
)
|
(960
|
)
|
(650
|
)
|
|||||||||
Decrease (increase) in inventories
|
1,356
|
(879
|
)
|
(5,463
|
)
|
(1,532
|
)
|
|||||||||
Increase in accounts payable
|
257
|
689
|
581
|
759
|
||||||||||||
Increase in other liabilities
|
4,187
|
2,402
|
4,717
|
2,418
|
||||||||||||
Increase (decrease) in contract liabilities
|
5,010
|
(1,115
|
)
|
(1,660
|
)
|
1,263
|
||||||||||
Decrease in accrued contingencies
|
-
|
-
|
-
|
(10,000
|
)
|
|||||||||||
Net cash provided by operating activities
|
30,194
|
13,515
|
37,638
|
34,787
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Investment in short-term deposit
|
(18,090
|
)
|
(17,220
|
)
|
(49,699
|
)
|
(34,310
|
)
|
||||||||
Proceeds from short-term deposit
|
6,720
|
8,500
|
34,810
|
18,500
|
||||||||||||
Purchase of fixed assets
|
(103
|
)
|
(54
|
)
|
(428
|
)
|
(518
|
)
|
||||||||
Purchase of marketable securities
|
(41,085
|
)
|
(68,282
|
)
|
(119,394
|
)
|
(82,621
|
)
|
||||||||
Proceeds from sale of marketable securities
|
25,500
|
13,500
|
117,786
|
18,103
|
||||||||||||
Net cash (used in) investing activities
|
(27,058
|
)
|
(63,556
|
)
|
(16,925
|
)
|
(80,846
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Proceeds from initial public offering of ordinary shares, net of offering costs
|
-
|
69,784
|
-
|
69,784
|
||||||||||||
Exercise of options
|
698
|
178
|
3,248
|
315
|
||||||||||||
Net cash provided by financing activities
|
698
|
69,962
|
3,248
|
70,099
|
||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
234
|
(93
|
)
|
147
|
(56
|
)
|
||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
4,068
|
19,828
|
24,108
|
23,984
|
||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
64,767
|
28,877
|
44,727
|
24,721
|
||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
68,835
|
48,705
|
68,835
|
48,705
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2020
|
2019
|
2020
|
2019
|
|||||||||||||
Revenues by Geography:
|
||||||||||||||||
United States
|
40,880
|
31,007
|
95,763
|
87,813
|
||||||||||||
International
|
18,834
|
9,003
|
35,157
|
21,546
|
||||||||||||
Total Net Revenue
|
59,714
|
40,010
|
130,920
|
109,359
|
||||||||||||
U.S. as percentage of total revenue
|
68
|
%
|
77
|
%
|
73
|
%
|
80
|
%
|
Three months ended September 30, 2020
|
Three months ended September 30, 2019
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
59,714
|
-
|
59,714
|
40,010
|
-
|
40,010
|
||||||||||||||||||
COST OF REVENUES
|
9,395
|
(155
|
)
|
9,240
|
5,047
|
(21
|
)
|
5,026
|
||||||||||||||||
GROSS PROFIT
|
50,319
|
155
|
50,474
|
34,963
|
21
|
34,984
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
1,959
|
(124
|
)
|
1,835
|
1,329
|
(58
|
)
|
1,271
|
||||||||||||||||
Sales and marketing
|
23,758
|
(1,974
|
)
|
21,784
|
16,726
|
(270
|
)
|
16,456
|
||||||||||||||||
General and administrative
|
1,309
|
(151
|
)
|
1,158
|
927
|
(36
|
)
|
891
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
27,026
|
(2,249
|
)
|
24,777
|
18,982
|
(364
|
)
|
18,618
|
||||||||||||||||
INCOME FROM OPERATIONS
|
23,293
|
2,404
|
25,697
|
15,981
|
385
|
16,366
|
||||||||||||||||||
Finance income, net
|
798
|
-
|
798
|
479
|
-
|
479
|
||||||||||||||||||
INCOME BEFORE TAXES
|
24,091
|
2,404
|
26,495
|
16,460
|
385
|
16,845
|
||||||||||||||||||
INCOME TAXES (TAX BENEFIT)
|
207
|
(339
|
)
|
(132
|
)
|
267
|
59
|
326
|
||||||||||||||||
NET INCOME
|
23,884
|
2,743
|
26,627
|
16,193
|
326
|
16,519
|
||||||||||||||||||
Add: Loss (net income) attributable to non-controlling interests
|
11
|
-
|
11
|
(7
|
)
|
-
|
(7
|
)
|
||||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
23,895
|
2,743
|
26,638
|
16,186
|
326
|
16,512
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
0.65
|
0.73
|
0.53
|
0.55
|
||||||||||||||||||||
Diluted
|
0.57
|
0.63
|
0.42
|
0.42
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE
|
||||||||||||||||||||||||
Basic
|
36,697
|
36,697
|
30,297
|
30,297
|
||||||||||||||||||||
Diluted
|
42,082
|
42,289
|
39,004
|
39,047
|
Nine months ended September 30, 2020
|
Nine months ended September 30, 2019
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
130,920
|
-
|
130,920
|
109,359
|
-
|
109,359
|
||||||||||||||||||
COST OF REVENUES
|
20,274
|
(380
|
)
|
19,894
|
14,193
|
(62
|
)
|
14,131
|
||||||||||||||||
GROSS PROFIT
|
110,646
|
380
|
111,026
|
95,166
|
62
|
95,228
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
7,207
|
(2,132
|
)
|
5,075
|
4,112
|
(166
|
)
|
3,946
|
||||||||||||||||
Sales and marketing
|
61,293
|
(6,569
|
)
|
54,724
|
46,721
|
(887
|
)
|
45,834
|
||||||||||||||||
General and administrative
|
4,745
|
(533
|
)
|
4,212
|
2,693
|
(84
|
)
|
2,609
|
||||||||||||||||
TOTAL OPERATING
EXPENSES |
73,245
|
(9,234
|
)
|
64,011
|
53,526
|
(1,137
|
)
|
52,389
|
||||||||||||||||
INCOME FROM OPERATIONS
|
37,401
|
9,614
|
47,015
|
41,640
|
1,199
|
42,839
|
||||||||||||||||||
Finance income, net
|
2,063
|
-
|
2,063
|
1,264
|
-
|
1,264
|
||||||||||||||||||
INCOME BEFORE TAXES
|
39,464
|
9,614
|
49,078
|
42,904
|
1,199
|
44,103
|
||||||||||||||||||
INCOME TAXES (TAX BENEFIT)
|
509
|
(763
|
)
|
(254
|
)
|
718
|
227
|
945
|
||||||||||||||||
NET INCOME
|
38,955
|
10,377
|
49,332
|
42,186
|
972
|
43,158
|
||||||||||||||||||
Add: Loss (net income) attributable to non-controlling interests
|
(39
|
)
|
-
|
(39
|
)
|
(79
|
)
|
-
|
(79
|
)
|
||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
38,916
|
10,377
|
49,293
|
42,107
|
972
|
43,079
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
1.09
|
1.39
|
1.50
|
1.53
|
||||||||||||||||||||
Diluted
|
0.93
|
1.17
|
1.15
|
1.17
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE
|
||||||||||||||||||||||||
Basic
|
35,542
|
35,542
|
28,031
|
28,031
|
||||||||||||||||||||
Diluted
|
41,894
|
42,061
|
36,654
|
36,707
|