● |
Quarterly revenue of $123.1 million, an increase of 2% compared to the third quarter of 2022.
InMode’s proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 83% of quarterly revenues, while 9% came from InMode’s hands-free platforms and 8% from InMode’s
traditional laser and non-invasive RF platforms.
|
● |
GAAP net income of $46.5 million, compared to $48.8 million in the third quarter of 2022;
*non-GAAP net income of $53.1 million, compared to $56.6 million in the third quarter of 2022.
|
● |
GAAP diluted earnings per share of $0.54, compared to $0.58 in the third quarter of 2022;
*non-GAAP diluted earnings per share of $0.61, compared to $0.66 in the third quarter of 2022.
|
● |
Quarterly revenues from consumables and service of $17.9 million, an increase of 28% compared
to the third quarter of 2022.
|
● |
Total cash position of $675.8 million as of September 30, 2023, 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 2023
|
Q3 2022
|
|
Revenues
|
$123,112
|
$121,232
|
Gross Margins
|
84%
|
85%
|
Net Income
|
$46,520
|
$48,789
|
Earnings per Diluted Share
|
$0.54
|
$0.58
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
||
Q3 2023
|
Q3 2022
|
|
Gross Margins
|
84%
|
85%
|
Net Income
|
$53,084
|
$56,646
|
Earnings per Diluted Share
|
$0.61
|
$0.66
|
● |
Revenue between $500 million and $510 million
|
● |
*Non-GAAP gross margin between 83% and 85%
|
● |
*Non-GAAP income from operations between $220 million and $225 million
|
● |
*Non-GAAP earnings per diluted share between $2.53 and $2.57
|
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, |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
REVENUES
|
123,112
|
121,232
|
365,267
|
320,700
|
||||||||||||
COST OF REVENUES
|
20,136
|
18,765
|
60,444
|
52,483
|
||||||||||||
GROSS PROFIT
|
102,976
|
102,467
|
304,823
|
268,217
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Research and development
|
3,268
|
3,166
|
9,937
|
9,164
|
||||||||||||
Sales and marketing
|
50,819
|
43,062
|
143,591
|
113,564
|
||||||||||||
General and administrative
|
2,479
|
2,494
|
6,879
|
7,533
|
||||||||||||
TOTAL OPERATING EXPENSES
|
56,566
|
48,722
|
160,407
|
130,261
|
||||||||||||
INCOME FROM OPERATIONS
|
46,410
|
53,745
|
144,416
|
137,956
|
||||||||||||
Finance income (expense), net
|
4,953
|
189
|
12,687
|
(350
|
)
|
|||||||||||
INCOME BEFORE TAXES
|
51,363
|
53,934
|
157,103
|
137,606
|
||||||||||||
INCOME TAXES
|
4,843
|
5,145
|
14,349
|
13,794
|
||||||||||||
NET INCOME
|
46,520
|
48,789
|
142,754
|
123,812
|
||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||
Basic
|
0.56
|
0.59
|
1.71
|
1.50
|
||||||||||||
Diluted
|
0.54
|
0.58
|
1.66
|
1.45
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||
Basic
|
83,703
|
82,306
|
83,423
|
82,494
|
||||||||||||
Diluted
|
85,970
|
84,823
|
85,814
|
85,120
|
September 30,
2023
|
December 31,
2022
|
|||||||
Assets
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
133,733
|
97,540
|
||||||
Marketable securities
|
385,860
|
374,589
|
||||||
Short-term bank deposits
|
156,253
|
75,254
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
42,692
|
26,997
|
||||||
Other receivables
|
19,385
|
15,094
|
||||||
Inventories
|
39,989
|
39,897
|
||||||
TOTAL CURRENT ASSETS
|
777,912
|
629,371
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Accounts receivable, net of allowance for doubtful accounts
|
4,074
|
3,973
|
||||||
Deferred income tax asset, net
|
2,103
|
3,094
|
||||||
Operating lease right-of-use assets
|
6,359
|
5,073
|
||||||
Property and equipment, net
|
2,482
|
2,298
|
||||||
Other investments
|
600
|
600
|
||||||
TOTAL NON-CURRENT ASSETS
|
15,618
|
15,038
|
||||||
TOTAL ASSETS
|
793,530
|
644,409
|
||||||
Liabilities and shareholders’ equity
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
12,333
|
16,242
|
||||||
Contract liabilities
|
10,625
|
13,798
|
||||||
Other liabilities
|
39,230
|
51,980
|
||||||
TOTAL CURRENT LIABILITIES
|
62,188
|
82,020
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Contract liabilities
|
3,502
|
3,959
|
||||||
Other liabilities
|
762
|
303
|
||||||
Operating lease liabilities
|
3,581
|
3,509
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
7,845
|
7,771
|
||||||
TOTAL LIABILITIES
|
70,033
|
89,791
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
723,497
|
554,618
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
793,530
|
644,409
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income
|
46,520
|
48,789
|
142,754
|
123,812
|
||||||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
129
|
169
|
501
|
462
|
||||||||||||
Share-based compensation expenses
|
6,564
|
7,857
|
17,278
|
17,304
|
||||||||||||
Allowance for doubtful accounts
|
426
|
50
|
665
|
402
|
||||||||||||
Loss on marketable securities, net
|
-
|
12
|
-
|
49
|
||||||||||||
Finance expenses (income), net
|
(527
|
)
|
586
|
(3,236
|
)
|
1,527
|
||||||||||
Deferred income taxes, net
|
(216
|
)
|
9
|
(154
|
)
|
156
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Increase in accounts receivable
|
(10,753
|
)
|
(6,926
|
)
|
(16,461
|
)
|
(11,220
|
)
|
||||||||
Decrease (increase) in other receivables
|
(1,347
|
)
|
887
|
(5,367
|
)
|
(706
|
)
|
|||||||||
Increase in inventories
|
(1,421
|
)
|
(6,050
|
)
|
(92
|
)
|
(14,784
|
)
|
||||||||
Increase (decrease) in accounts payable
|
(962
|
)
|
1,463
|
(3,909
|
)
|
4,517
|
||||||||||
Increase (decrease) in other liabilities
|
3,040
|
4,136
|
(12,792
|
)
|
3,366
|
|||||||||||
Decrease in contract liabilities
|
(9
|
)
|
(5,390
|
)
|
(3,630
|
)
|
(459
|
)
|
||||||||
Net cash provided by operating activities
|
41,444
|
45,592
|
115,557
|
124,426
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Investment in short-term deposits
|
(179,140
|
)
|
(48,090
|
)
|
(285,140
|
)
|
(93,701
|
)
|
||||||||
Proceeds from short-term deposits
|
91,590
|
30,090
|
204,090
|
73,090
|
||||||||||||
Purchase of fixed assets
|
(149
|
)
|
(387
|
)
|
(684
|
)
|
(1,247
|
)
|
||||||||
Purchase of marketable securities
|
(60,588
|
)
|
(58,982
|
)
|
(233,130
|
)
|
(97,736
|
)
|
||||||||
Proceeds from sale of marketable securities
|
-
|
301
|
-
|
2,303
|
||||||||||||
Proceeds from maturity of marketable securities
|
78,465
|
20,935
|
230,493
|
46,092
|
||||||||||||
Net cash used in investing activities
|
(69,822
|
)
|
(56,133
|
)
|
(84,371
|
)
|
(71,199
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repurchase of ordinary shares
|
-
|
-
|
-
|
(42,637
|
)
|
|||||||||||
Exercise of options
|
2,729
|
550
|
5,229
|
915
|
||||||||||||
Net cash provided by (used in) financing activities
|
2,729
|
550
|
5,229
|
(41,722
|
)
|
|||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
(473
|
)
|
(1,365
|
)
|
(222
|
)
|
(2,593
|
)
|
||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(26,122
|
)
|
(11,356
|
)
|
36,193
|
8,912
|
||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
159,855
|
88,404
|
97,540
|
68,136
|
||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
133,733
|
77,048
|
133,733
|
77,048
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||
Revenues by Category:
|
||||||||||||||||||||||||||||||||
Capital Equipment revenues - United States
|
67,969
|
55
|
%
|
72,920
|
60
|
%
|
191,548
|
53
|
%
|
180,640
|
57
|
%
|
||||||||||||||||||||
Capital Equipment revenues - International
|
37,276
|
30
|
%
|
34,383
|
28
|
%
|
114,284
|
31
|
%
|
97,126
|
30
|
%
|
||||||||||||||||||||
Total Capital Equipment revenues
|
105,245
|
85
|
%
|
107,303
|
88
|
%
|
305,832
|
84
|
%
|
277,766
|
87
|
%
|
||||||||||||||||||||
Consumables and service revenues
|
17,867
|
15
|
%
|
13,929
|
12
|
%
|
59,435
|
16
|
%
|
42,934
|
13
|
%
|
||||||||||||||||||||
Total Net Revenue
|
123,112
|
100
|
%
|
121,232
|
100
|
%
|
365,267
|
100
|
%
|
320,700
|
100
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||||||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||||||||||||||||||
%
|
%
|
%
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|||||||||||||||||||||||||||||||||||||
Revenues by Technology:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Minimal-Invasive
|
85
|
80
|
83
|
84
|
75
|
82
|
87
|
76
|
83
|
84
|
73
|
80
|
||||||||||||||||||||||||||||||||||||
Hands-Free
|
11
|
4
|
9
|
13
|
8
|
11
|
10
|
5
|
8
|
13
|
7
|
11
|
||||||||||||||||||||||||||||||||||||
Non-Invasive
|
4
|
16
|
8
|
3
|
17
|
7
|
3
|
19
|
9
|
3
|
20
|
9
|
||||||||||||||||||||||||||||||||||||
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
Three months ended September 30, 2023
|
Three months ended September 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
123,112
|
-
|
123,112
|
121,232
|
-
|
121,232
|
||||||||||||||||||
COST OF REVENUES
|
20,136
|
(572
|
)
|
19,564
|
18,765
|
(554
|
)
|
18,211
|
||||||||||||||||
GROSS PROFIT
|
102,976
|
572
|
103,548
|
102,467
|
554
|
103,021
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
3,268
|
(729
|
)
|
2,539
|
3,166
|
(857
|
)
|
2,309
|
||||||||||||||||
Sales and marketing
|
50,819
|
(4,787
|
)
|
46,032
|
43,062
|
(5,879
|
)
|
37,183
|
||||||||||||||||
General and administrative
|
2,479
|
(476
|
)
|
2,003
|
2,494
|
(567
|
)
|
1,927
|
||||||||||||||||
TOTAL OPERATING
EXPENSES |
56,566
|
(5,992
|
)
|
50,574
|
48,722
|
(7,303
|
)
|
41,419
|
||||||||||||||||
INCOME FROM OPERATIONS
|
46,410
|
6,564
|
52,974
|
53,745
|
7,857
|
61,602
|
||||||||||||||||||
Finance income, net
|
4,953
|
-
|
4,953
|
189
|
189
|
|||||||||||||||||||
INCOME BEFORE TAXES
|
51,363
|
6,564
|
57,927
|
53,934
|
7,857
|
61,791
|
||||||||||||||||||
INCOME TAXES
|
4,843
|
-
|
4,843
|
5,145
|
-
|
5,145
|
||||||||||||||||||
NET INCOME
|
46,520
|
6,564
|
53,084
|
48,789
|
7,857
|
56,646
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
0.56
|
0.63
|
0.59
|
0.69
|
||||||||||||||||||||
Diluted
|
0.54
|
0.61
|
0.58
|
0.66
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
83,703
|
83,703
|
82,306
|
82,306
|
||||||||||||||||||||
Diluted
|
85,970
|
86,333
|
84,823
|
85,453
|
Nine months ended September 30, 2023
|
Nine months ended September 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
365,267
|
-
|
365,267
|
320,700
|
-
|
320,700
|
||||||||||||||||||
COST OF REVENUES
|
60,444
|
(1,473
|
)
|
58,971
|
52,483
|
(1,364
|
)
|
51,119
|
||||||||||||||||
GROSS PROFIT
|
304,823
|
1,473
|
306,296
|
268,217
|
1,364
|
269,581
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
9,937
|
(1,987
|
)
|
7,950
|
9,164
|
(2,248
|
)
|
6,916
|
||||||||||||||||
Sales and marketing
|
143,591
|
(12,556
|
)
|
131,035
|
113,564
|
(12,233
|
)
|
101,331
|
||||||||||||||||
General and administrative
|
6,879
|
(1,262
|
)
|
5,617
|
7,533
|
(1,459
|
)
|
6,074
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
160,407
|
(15,805
|
)
|
144,602
|
130,261
|
(15,940
|
)
|
114,321
|
||||||||||||||||
INCOME FROM OPERATIONS
|
144,416
|
17,278
|
161,694
|
137,956
|
17,304
|
155,260
|
||||||||||||||||||
Finance income (expense),net
|
12,687
|
-
|
12,687
|
(350
|
)
|
-
|
(350
|
)
|
||||||||||||||||
INCOME BEFORE TAXES
|
157,103
|
17,278
|
174,381
|
137,606
|
17,304
|
154,910
|
||||||||||||||||||
INCOME TAXES
|
14,349
|
-
|
14,349
|
13,794
|
-
|
13,794
|
||||||||||||||||||
NET INCOME
|
142,754
|
17,278
|
160,032
|
123,812
|
17,304
|
141,116
|
||||||||||||||||||
NET INCOME PER
SHARE: |
||||||||||||||||||||||||
Basic
|
1.71
|
1.92
|
1.50
|
1.71
|
||||||||||||||||||||
Diluted
|
1.66
|
1.86
|
1.45
|
1.65
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
83,423
|
83,423
|
82,494
|
82,494
|
||||||||||||||||||||
Diluted
|
85,814
|
86,154
|
85,120
|
85,667
|