INMD - Earnings call 3 2023

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Operator

Good day, and welcome to the InMode's Third Quarter 2023 Earnings Results Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note, today's event is being recorded. I'd now like to turn the conference over to Miri Segal of MS-IR.

Miri Segal-Scharia

everyone, us and operator you, for today. joining Thank XXXX to InMode's Call. Quarter Third Welcome Earnings

I to contain would that begin, pertains outlined we Before like release earnings provided the harbor also this in and today's certain this remind on call statements may call. forward-looking to safe statement information listeners our

factors Relations results competitive, received company's website. the differ not have the technological, you those the of and copy of expressed actual release, forward-looking today. in section business, could please materially from If statements a visit to regulatory other the cause Investor by Changes made

Our indicative are historical results not of future necessarily performance.

With can we I'd the pass over no such, of to ahead. like our to as statements call Chairman and Moshe give go As law. to please obligation the as accuracy CEO. that, no assurance except Moshe, update to assume and them Mizrahy, forward-looking by required

Moshe Mizrahy

and today Theodorou, Malca, our With Michael our Finance. Thank Medical Kreindel, for of joining Shakil Spero Officer; North you, us. President and Rafael Co-Founder Officer; Technology Chief VP thanks everyone Lakhani, in Miri, America; are Dr. to Chief Financial Chief Dr. me our Officer; and our Lickerman, our Yair

will available all remarks, answer your to questions. Following prepared the we be

treatment aesthetic the an compared growth U.S. aesthetic financial Europe of aesthetic was abnormal physicians Pre-pandemic, in first pandemic We Sun and the the summertime been in aesthetic and quarter the years quarter, travel popular that is and and reflected cycle, last XXXX. ended increase the in pent-up a in $XXX.X and quarter treatment. establish X% patients has that hasn't results. summer, medical treatment the general a QX to we in the common QX and demand InMode the resulting we globally. our rate return million, of revenue device three Furthermore, accelerated the saw slight a in different of due space. third time and seasonality Until to post and led space, third as to third for presence patterns. this was COVID The to the the in This been of U.S. specifically in requirement normal our experienced time trend to avoid with in slowdown normal environment seasonality industry in

the industry. In time our Salespeople addition, in rate kill credit of less record sold were And States. the in longer, interest as environment leasing impacted often new the say, agreement process United deals. takes platforms clearance financing

these high. committed platforms. existing has that despite down pleased differentiator. not gold InMode's treatment as platforms well improve and invasive our technology. to key constantly technology However, new our and developing We standard innovation and remain slowed macro demand see we challenges, are minimally as for to upgrading We been upgrade InMode's remain were Patent and and technology

addition, current the will ensure aggressively our enhance In following market. stronger as protect to the will become we enable IP position benefit the our in and long-term industry and us challenges This and will and in patent. leader

regarding message to Before would like Israel. I Shakil, call our reiterate conflict the turn I over the in to

As we management together are our press in said team and employees and States. the in release, safe our United in with Israel their

and and committed include We the we as of always We our the our employees well-being InMode distributors, been as company. next prioritize component we so anticipate and this do all have worldwide. as all are the to of salespeople production, strategy. and the in interruption is customers, and Israel our for We don't committed are execute success supporting employees to three to continue to sufficient levels safety will subassembly quarters. globally and inventory any

be and will the meet highest platforms all delivered expect we result, standards. on and a consumable As will time

support customer take to measures required and service. In all continuous ensure addition, InMode exceptional

ever have to we We been are company's committed success. the as as all

Now I North over to Shakil? turn our in would call to Shakil, America. like President the

Shakil Lakhani

and Moshe, was headwinds are of Despite North challenging North encouraged for lower quarter strength the third platform quarter, the sales of by modes America. us. continued indication in joining America the for Thanks, this revenues and accounted for we in InMode's third everyone, sales from year-over-year. increase year-over-year XX% as and XX% Revenue view of treatments. for consumable grew an in in and total consumables QX service demand

gaining It pleased of and leading optometrists with launch platform progressing QX. America the ophthalmic and successful in in is We ophthalmologists. Envision, is nonsurgical our traction North well are among

the very DEFINE, for the face. successfully technology we of new hands-free improved at end launched Additionally, the our of and QX, version

be in revenues early We QX. to expect

entire all call continued their the over will As always, a for our thank to of like Yair team and for these work results I more during challenging turn to now hard review North American financial in the Yair? detail. I'd employees everywhere times.

Yair Malca

gross and Shakil, InMode the increase joining a of margin GAAP on in company XX% million $XXX.X of Thanks third representing the basis Thanks, revenue of hello, XX%. again a X% year-over-year for everyone. of us. model XX% within to generated a XXXX, with quarter

Third year. the or quarter to XX% outside XX% sales million of sales compared of QX accounted in or for million $XX.X $XX.X U.S. of last

of and XX% $X.X last sales the of the $XX.X compared campaigns see hosting XX%. the the Sales XXXX, accounted compared and in compared the $XX.X operating $XX.X base expenses Share-based $XX.X this GAAP XXXX, XX% same a quarter continue of million in in XXXX. and Capital in-person than different in events. the was compensation $X.XX to And XX% distributors in addition diluted quarter diluted increase equipment for of same XXXX. quarter of worldwide. countries compared as a preservatives of the in a the of sales quarter margin the XX% quarter of XXXX. quarter the the XXX well as growth, of in were regions XX% the million operating share direct-to-consumer third million accounted InMode a of in third compared a third expenses investment of for $XX.X quarter attributed million, revenue, to to third of share XX million in the operating quarter the coming to to increase compared million new of XXXX. marketing non-GAAP service in to increased diluted we quarter third On for in total third a the million in advertising quarter around to operating per operating quarter quarter $X.XX year-over-year. total reps remaining expenses XXXX the Non-GAAP is and the period with GAAP third This QX $X.X per represented GAAP was Once year. share in world. were a to quarter of share third margin Asia to direct record. decrease support again, with from third per third more for revenues diluted quarter sheet. QX, from while were a and for earnings To of XXXX We our a XX this total of per balance third in were team quarter now representing XX% $X.XX increase. for $X.XX earnings compared XX% new XXXX. hit sales for ended growth margin to Non-GAAP operations basis, strong operates Consumer

and had marketable XXXX, XX, securities of the million. deposits and categories, $XXX.X cash company September of As

back and guidance to reiterate million your million, our I questions, take I'd gross XXXX. like Before for turn to income to and Moshe. back revised between over will XX%. XX% per turn and earnings share $X.XX Moshe million between the now million. non-GAAP and to operations $XXX Non-GAAP I from $XXX call Revenue the of $XXX call $XXX Non-GAAP between between diluted $X.XX. margin

Moshe Mizrahy

now we Operator, Shakil. you, can Thank Yair. get you, Thank Q&A.

Operator

Today's Barclays. comes Instructions] question first Matt Miksic from [Operator with

Matthew Miksic

have seasonality. for InMode to the follow-up. progress the any Street that if to could start estimates, the one third how the pressure slowdown around can the some though think here? just And to management QX? that we little I'm delays color into those bit have a And alleviate of do the caused team financing as line your then speaking there shortfall across with it of that the I'm results, And in we potentially was as pressures QX. any quarter share around On if relative costs topic, affected color that some caused you and even what I with of to or in and QX I additional directionally, And thoughts things leasing of wondering to wondering increased a

Moshe Mizrahy

on This Okay. I and me. will try I expects. what to we believe main short I reasons answer, is three will colleagues a Moshe. market the bit believe little complement the why we're specified my

First, I the is the believe now medical in aesthetic. normal seasonality, which

the not normal for 'XX it's expected summer exposed been stronger third ESC, the it's way was quarter know, during all quarter a Lumenis, always COVID summertime, As to the 'XX was the in aesthetic. because is much sometimes to medical in case year. COVID And and years, the the medical from the than of aesthetic you But in now slower that the than one. XX QX. that's the and and year, Syneron the sun the quarter fourth and were And treatment QX therefore, the beginning and usually don't their and vacation, get stronger want people on because I've in probably InMode. strongest

the one and we of I avoid cannot So this reasons, it. is mean,

leasing annually. Second, is company a to rate customers. leasing interest cost financing, that That's is said today, as XX% as what we of XX% charging far the

a take with XX% So XX% I'm you sure not rate. to mortgage will that interest

machine Everybody Although go the think the XX% interest aesthetic at a still just a will The to in not doctor investment return are if this see least take we generate medical want for XX%, or field. money, down. therefore, do the will course, I kind or down can afraid And with believe that. working doctors it. to what don't did rate of financing this up is the It's are slowing happen. that and will not will when rates know cost is to economy start in of the they going interest how but to medical on And long twice leasing longer.

will company and they I And the long, see us a order say, the afraid will reason tightening a to long are actually money. that very processing screening. not fact bankrupt their would procedure a before they and do Third purchase their are they therefore, They the is time. leasing issue order, doctors take very go to

we solution to with money. first, a to therefore, resources, lot to are do a the little when company three have And two a process How it? of we And takes twice. our maybe bit. have I some to now. our come is Sometimes up I weeks. we're especially processing. two place some have competitors taking it the coming, leasing All three we weeks, think I mean overcome you this already doctors of lot with wait optimize working of think to need

a leasing take is activity other might days It work weeks. doctors. as The of three financing to used take in-house few not the will do financing company to might We ease with project the to main other find it some it solution. to So to. certain and program

We ease better. That's a to will have Hopefully, at them. the only We stay with thing ease We're that ideas. will little The we bit, to the already discussed least it do. implement can the rate. in XX%, process rate in that. a ease XX% it but work process QX, some not and

continue quarter, IP Chicago conferences addition actually In with in participated XXX have XX to meeting development, on third invest Cyprus X,XXX in for marketing, countries the in we continue the R&D, doctors marketing. XX this world. in summit had use August, slowdown, to the continued we medical in continued third to doctors and around quarter We ROW. continue We invest in the

in promotion, to So in to market. We expedite coming sales any any we're R&D doubling doubling three not on new with order what the people product basically R&D. more hired down, down marketing, we're the

DNA and thing but That's we although are time, it's different. do, sitting We last company down a cutting is that not will challenging the costs. the

not fire people. will We

lay will not off We people.

We keep will everybody.

fourth contrary, We approvals the we're marketing, in quarter, hiring which the quarter FDA year. enhance and in and we development. received this in regulation, On our to product in and position continue sales, next people will quarter this two R&D, in invest will in

situation not we're down but happen will So slowdown in overall, wait and taking although what and are seriously, the market. we the the to sitting see

Matthew Miksic

That's a little helpful color.

ability some of the Just have on. one the you some about to unfortunately, comments and supply that unfolded and months and issued chains around your Israel, in risk in time this I could, product your on disruption that conflict began follow-up, supply to events the ability deliver past of if so

given walk to maybe us of deliver how that. feel could you you the far updates have positioned you're any through If XXXX, in confident that do status And that course? current you on

Moshe Mizrahy

Yes.

a it's run usual. Yes, question. business your we difficult for company very time to but you try Thank Okay. in as Israel, the

south are are were northern affected the the to close team two city with affected relatively the families, north care All Israel both and safe. the of facilities that is is a of They the the Yokne'am, Israel, is Israel part in which taking in Israel. on them currently. not not war part in of of area. team located the mainly part have of production is We not Israel on All in which called are safe we them. war their All

have countries to the of least take inventory quarters subassembly. in three and the for finished in care Israel goods We accumulated supply and and some in of Europe of order U.S. two in and at in component quarters

the as XXX%. to Hopefully, have but northern the fourth optimistic, of okay. not war continue a I'm located. Also don't of Israel you we profit. not as the is we quarter as is where will that will part and now, will happen, tell And I I'm everything. not it extend everything everything are the cover to far will will we in beginning situation right that and be the XXXX. So

managing. we we're Army on a easy, mean, on the to A the day hours more side, working. keep have working duty, plan. are not in not manufacturing to the switching work but hours of duty in but Army, that XX and their we two shifts. to by same going order especially care I Reserve as a hired we're capacity it's shift day that took to We challenge. employees a We some and reserve although the people XX It's the

Matthew Miksic

you the I I wish and appreciate out best. the teams the update, and all there

Operator

Jefferies. And our next question today comes with from Hee Jeong

Matthew Taylor

of low seeing are XXXX? ask and about in forecast. What confidence the you after in arrived QX? an wanted questions about growth the seasonality developing forecast could at And talk that? looked you at to in just talk some to key extension, can your I assumptions Maybe couple how your a XQ us you of as the growing about in you that

Moshe Mizrahy

you gave you set last meant When focus, guidance the we time? that for the

Matthew Taylor

year the Well, for by implied QX guidance. full

Moshe Mizrahy

we $XXX target, to you as the all in $XXX worked million Well, be target $XXX above stated, in meet quarter. with do can need revenue tell that order the the to million we have I million million going target fourth to And that be this North believe America, to we quarter Asia, XXXX $XXX currently, in in Europe, America. fourth the territories, the above the order I meet we Latin million are to of $XXX target gave. I

everybody Israel, far supply the as we with in It's territories $XXX As platforms, capacity have of in inventory. the the million all disposable. all to handpieces,

side, the that problem. of are October first I So on. point always not a not have is a therefore, that you and to of view, going from quarter sales going what's From quarter, can tell it the reflect does we

will being the everybody. I'm If that As happen, notify we do revenue December. you optimistic it will are we the last is generated which will month, XX% in not know, more quarter But than very of million. the $XXX

XXXX, We a and QX to market have the yet. want slowdown not medical on and far mainly in slowdown will in we see economy the what happen the do the Now the on target as aesthetic. regarding as

the of analysis end all some kind year, Towards will the we of the do territories. of

And will on we for We give a XXXX. guidance. a preparing are working based on that, budget

Matthew Taylor

a per QX. ask way X% midpoint your question I in on Maybe about follow-up. implied the or just is growth The so. rate one different at a guidance

Why you level higher? growth X%? How why right key some did informing of the versus it So are arrive that or at the that What be lower X% something of wouldn't or is that number? inputs are XX%?

Moshe Mizrahy

that? do you want answer Yair, to

Yair Malca

Sure.

is significantly we the we impact did obviously different see what territories. territories at some looked We more of the think in the than slowdown I others.

So some grow would not of year-over-year. them

Some offset the ones and would that not. would

this all this to terms the into growth Looking That's we and mix, year-over-year. in slight like taking of the revenue. single-digit

margin. not XX%, much that which In is and be of terms profitability, it in healthy decline profitability, respectable slightly In but very around operating expect a we QX, we to margin. assume

Moshe Mizrahy

right. Yes, add Yair territories Yair just I far about talks is as to something growth. want as here

than yet. not For relatively North market Asia but the it's example, although is down slowing America, in smaller

to on seeing up we between guidance. average and weighted Although some fourth had the with the quarter, do started something come territories the therefore, to we

quarter, you still the that even any on maintain our the process, challenge. in improve, to We to the the the keeping would want quarter. everybody might, gross profitability, It's easy. without the cost regular gross XX% XX% and to engineering, And high, is therefore, regard to very to how XX% gross even And still not price operation prices of market, remember. As going equipment raise order this supply team, work product but higher how on everybody on all to with say, prices parallel is complement chain, keep to the I'm in to manufacturing inflation I noticed the our and sure higher raising market. of to improve I new the yet. design, needs the development, a we testing was the improve and in margin something slowdown a margin. the component, working That's inflation, did not the on which manufacturing, Because how how We time on territory their margin working. raising every XX% improve the not yet. that the third the of without that's

marketing. cost Summit in usual onetime for We Cyprus. a quarter because costs bought patent, we doctors. this meeting U.S. little events. to was and a X,XXX which than have in higher that marketing the meeting several sales bit Our go User also

order some terminated of Germany our establish to subsidiary in there. one also We in distributors

us bit owned subsidiary, cost fully money. a that little own Our and

affect $X.X to quarter went million sales regular. not general the events a operating expense and bit $X earnings some down not in by million, therefore, and due and with have we the marketing So which nice are that the even overall, their the And third with all gross in market, we're we to these profit having net the slowdown managed that a time margin. even and to nice make expenses. Israel and little But challenging on

Operator

next from today our Danielle Antalffy UBS. question with And comes

Ryan Barocas

Danielle This is for on Ryan today. Barocas

to some on to QX, timing some impacts better these just within quarter the of guys I made. reconcile you with the want understand intra-quarter just of the commentary of So to try

begin really comes in seasonality of So any to real from how when side QX, and systems? in your QX the versus impact And of potential impact see the interest much the you the did rates? for slowdown in demand on softening financing

Moshe Mizrahy

Well, the I the from never from it's How from to very much interest approve economy. to from leasing difficult of how time came slowdown the the process? We kind this made the the think calculate much slowdown from came take come came How slowdown rate? from calculation.

interest buy on fact it's those they accumulate think you last doctor deals the doctor quarter, stay example, that for effects. being fact than revenue the month equipment take the anything. generated table the down it fact XX% longer usually, that, sure and all that the quarter. or that, and I'm of and especially rate, days quarter. that typical the it's with for And the us, not that And you the those to to For deal the he to the twice the leasing always, don't down not know disappear. to slow meantime, I the the in think again next want wanted typical reasons, they last get in slowing all of package get are if you if leasing that's closed finance, of That's of more the the to mean on in annual XX% full those addition system.In economy, if

factors. with we can order of all. together the of up effect have and all you is what no So combination quantitative the be will elements each those to in explained It's in question. a on one There what the press calculation of release put those come now

Ryan Barocas

on latest just your And then to love there. capital an on update allocation, priorities just get

on And So over any end your dividend with share there buyback you your to the now, put meaningful your a any consider to just share in XX% money cap. of program work would additional drop here? price, here? with or urgency more cash market even Is

Moshe Mizrahy

One, thought $XXX at buyback. thought not we have Actually, about not We for not to did all. did things. million that. buyback two react not help about time. a we buyback. Well, stock to I with It Did our previous was for say And help. But did experience long the now. buyback

you less called they price know sell and to ago, a go price all the that announced our market $XXX They doctors, $X.X. to sure also to do same announced which The when six $X. stock that they million. Official HydraFacial, Second, that is of product they stock market mainly buyback million. but competitors, a we Spar of I'm one to doctors. $XXX have doing We to today are buyback The to Dell it weeks was stock expected up. company

XX% their the after So in lost announced the weeks they last they right of buyback. six value

stock, with just So stock. we way spending That's business buyback what support something and that. to we Usually, buyback. And money than we that better believe days looking on say. M&A can it's think the the opportunity, do for are market things buying is a money I made a development and will opportunity, to that have off forget the if is therefore, us few keeping to the that will do the can better this twice best

exploring some are opportunities M&A. for We

opportunities, explore. right to there synergy rush. a rush. in it be do Maybe want do things, but We maybe now, prices were the show. in have and situation, tried to but our to nothing a we don't something to slowdown few that We I'm the us. with complements similar, will we too profitability, We something not more our we although don't will something We that find right to a announce find sure that to XX% it business, but yet want a that something margin, for try be something will technology, will that's have gross high but in nothing something

Operator

comes with Baird. And Dan question our Reinhart today next from

Dan Reinhart

if talked from field. Maybe question out you consumables doctors And a over end past bit you for Shak growing a here XX% XX% can or consumer. than is whatever, growth on for I to quarters. the know surgeons, that color still down healthy on but what from mean hearing the a few the at any your I give you're just in the greater

So just if see some want right And to can incremental these that push procedures pressures the any there's you seeing maybe given patients, you're if color macro now? out defer, there. give

Shakil Lakhani

good question. Yes, Dan,

think a I combination both. it's of

what impact number So I question you one, with what here. within just Moshe so the industry, mentioned seasonality going there. getting sun, There's of the little from for and same tighter macroeconomic forth. a has vacation. There's wallets. there's are want They that a at do definitely their no But some time, people be been on to seasonality lot in patients don't around saying, traditional so back to patients QX our think

it's I It by significantly, did of of But combination say. for demand both dropped seasonality it. macroeconomic and we're slowdown. do we encouraged see environment think So a the of the business. Obviously, still off a the hasn't little a would I bit the

Dan Reinhart

a And know the that in way margin question, second as in maybe the or few start? put have question maybe And always still different tailwind $XX a I reps that effects doing and maybe investments quite here, have pent-up guys is you then on maybe past And is to guys I you've year. $XX previously, going that's COVID taking you're years, few front, budget, sales there. mean, the But with Yair something demand Okay. safe into million I But other the for a year. that this know million question. talked obviously, just surpassed about incremental in you potentially and then crack every probably XXXX at

probably consumables this more can work still from and starting is of events just still? we potentially think off here? in-person be and pressures a Or might point growing So better to there from

Yair Malca

QX see like I before really to on XXXX. color prefer additional would wait looks how any we provide to

be is seasonality. off slowdown in then As the and two going table Seasonality there you to us, terms what only know, to on in the situation the get were XXXX discuss be going we'll are we'll the of that for to then impacts better directly related QX, QX, the of a the and better feeling we in see economy a and headwinds in guidance.

Operator

next Needham question comes with & Matson And Company. Mike our from

Michael Matson

like like guess, given Just even all versus you the that. types that. invasive expecting, in could procedures, gotten I of investors tightening loss And business? weight I ask at there or what just trying even sense drugs, it's a know general if have better a don't us that concerns type roughly into I've there. shaping the percentage mix I'm a your to from visibility or of you mix quite about seeing But question GLP-X of a if two give procedures the but the about more rough least some within procedures skin something just impact If going understand out exposure of bit there of to those not Is minimally you're part InMode's body your business.

Moshe Mizrahy

the for Shakil, and the I you U.S., for answer that [ can IOW answer ]? will

Shakil Lakhani

Moshe. Thanks

should jump think Spero in I here. also

that are about complementary do adjunct Spero, as experiencing your going you be to loss never a going been through are this? I tightening. weight what those experiences to actually So think But down saying serve that, going we've and it, were I it you we loss right? company, that there. about yes, to want comes those of patients things shaping to some believe and practical So skin if to when there with weight body a talk

Spero Theodorou

often. taper question get starting quite We Yes. It's to down though. this

in lose tell are thing plastic That's they traditional can to talking is patients it which massive definitely not to going to patients you these depending sure. weight are do these to a we're about I'm for usually future it's some have not they're in look sort company the to weight going provide hospital, I is not invasive in too done. the about a a patients decision surgery of to like going skin XX% one loss the think make all And or minimally who surgery, want that about going procedure, definitely I'm talking the little I overall loss early use. way one on this, Weight and a XX%, view us. and skin-tightening to average on how XX,XXX-foot not the but to the going office, drugs loss and need come problem. change. is best Those that. of in the

to So we're really my see a colleagues a can plastic And that. you, starting and I positioned advantage to place of good are surgeon, of practicing take it. in tell more as more

upwards. commercial Morpheus is level of positive. we brand in that one is shows our and talk for in It's the as what the demand consumables and to. trend asking and people very offices it the the are So leading

concerned, loss procedure. far as as never is liposuction a been Now body countering has weight

So are over really XX not for We them want patients BMI liposuction. candidates XX that are definitely good or lower.

patients candidates. actually they become then get drugs these So these where a to lower BMI

So XX ideal BMI start even XX candidates in BMI, liposuction. coming for less

the has. in and simultaneously tight, in where good technology fact again, we them that's with can a puts like skin body actually category we something them. do can it differentiated really treat puts liposuction because that else that their nobody So us actually tie And the place

plastic, what sounds So take little need we're losing there the way very and right optimistic. course, on contrary. procedure start to of lose look want pill, It's that a better. than you advantage with you Once Well, I weight, a of if overall, more to it. vanity optimistic, know that's offering, we're don't my become I different I people it expect. sure, the you

on getting so and trends are positive far better the better and and better. So keep

short positive long term, So country. term, a tell can our in across tell the I I can't impact but surgeons you, seeing you we're

Michael Matson

on products disclosure about involved are one a degree presence what I BTL. maybe U.S. ask this wanted they there. the have patent Can with the you just or then which about product? talk to technologies to just competing The suit in their And

Moshe Mizrahy

about infringement Are filed we talking the patent lawsuit you're them? that against

Michael Matson

Yes.

Moshe Mizrahy

Okay.

were Votiva started health the quite know, you and the then women market As for some we with Empower. time. We with on

to develop patent monopolar a on of women we from that And device company own our have recently, used We SUY. of to be portfolio VV. portfolio the women's RF treatment tried bought full for NASDAQ-based health. patent VV of the health

bankrupt study their million, all a the did They portfolio. and $X.X their successful the study rejected not FDA something, bought submission. patent for they Finally, was and of we $XXX and went

their their as better is prior of based a against that issued this is exactly a by the the patent. lawsuit reason us, vaginal of will one date, polar infringe protect this stage filed why that, because inside on which to We going than them patent, release early the technology One know-how. patent take even It's long XXX in filed to Court. They We're owned device are not the we patent they but And is them now, and outside. there do for and press we our right not of It's ago. competing answer for waiting what no we InMode. in the and tightening to with us and it litigation. is patent, the we're specified which

Operator

with And our Caitlin question next today from Genuity. comes Canaccord Cronin

Caitlin Cronin

And And what of slowing be Capital. American you're the there? there quarter far? weakness in saw any this North seeing in so what plans you the I So seeing the in touch place in signs on leasing or of you to front on further just are world, QX proactive rest to know

Moshe Mizrahy

do is of similar than of with rates rates Europe rest the what difficulties working leasing even world in are Paribas, the Europe. the some finally And even the leasing U.S. United to the see had you Europe. in company Interest before, in the companies PRB our French and we States. in We're subsidiary with in interest to higher Well, trying in

the lending the our XXXX. What to different We United same tough customers. leasing XXXX? in parts process the the continue There will of in happen with in of Europe their will as start in the is And sources and was capital therefore, have behaving world. order Some States. the in know rate no this interest will in until go to help interest company to other some distributors rates of in be also also anticipate happen what that We leasing don't will down.

Caitlin Cronin

systems a uptake the What the saw of the question and just platforms on then weakest really U.S. And business. the capital during QX? quick side

Moshe Mizrahy

Shakil, that's your question.

Shakil Lakhani

Sure.

it very it some we'll again, been far the that Moshe of see, products just of level did we It's successful defined strong the minimally we've so down. the as our we're and which things come Envision as So of latter see the launch, wellness and pretty doing health well. macroeconomic end mentioned just, that board strong the there. side before, we has environment, overall, steady some much for as platforms normally forth. as in on so the said, as the I from across in Hopefully, quarter slowed things the common still I growth overall, launch and was And is the theme staying also with here, mentioned invasive initial the towards But think side had was women's things financing with QX. so Moshe of But see rewards we into on the it. just with

Operator

question at follow-up Hee is from a our And Jeong Jefferies. next

Matthew Taylor

you patients a if right then had significant about are get where this have the broader And losing in a could seen them, you wanted again. adoption think coming to I ask in more tailwinds GLP-Xs do is the already of phenomenon I much to wanted ask surgery? guess, InMode Matt follow-up started GLP-X, and It's I tailwind there future? be it just that I to you question. for talking on about. Spero,

Spero Theodorou

So, it's a great question.

I one think of thing the not mention the I price medications. is did these

way the healthier better lose the is. know that's look It's line look I better, just human a month, part want I to has $X,XXX say, secondary. to spending nature to is already the $X,XXX crossed healthier. a to and I you a want what, think person weight And month usually

a have at committed. in also to medications definitely they patient looking year now weight, and lost $XX,XXX $XX,XXX a the spending on looked you're And but they've So worse. these

we're come a not they've to treatment, in morphines line, example, more is to $X,XXX. once simple, $X,XXX seeing that on big them So is It's for spend things deal. which for crossed what to done, a have money and

us, want it is. like to of a I gateway kind say to but drug it's So don't

going think I our to York of We're that's that term The a face KOLs. So surgeon came come do in. us. a seeing New have patients a as one Ozempic term plastic positive up these for is from impact

we're you to goes aware, that So very show engaged. very that

definitely Our involved. are doctors

they're with practice come different reason plastic they're names see to or to this from for Ozempic aesthetic is up butts, have Ozempic are done. patients the terminology. coming them treatments doctors and their creating And surgeons terminology educating these faces. the You with an up coming up These come environment and

trends Does So are far be that were answer for your going impact positive and think there's so asking? way. question? quite looking the to that not that us I I'm Is a definitely, you what sure.

Matthew Taylor

Yes, confirmation wanted that's some it. just of that. I

recently other thing The in noticed the I with some you you're I news of talking fillers. the dangers wanted ask about to about,

hoping was on to that versus maybe just also you touch whether I actually killer and InMode's lead so that option? And folks might treatments using could a

Spero Theodorou

I do a were with is waiting combination to That's in Morpheus to his am based. do. not with in using But proved We concern how sure. study And Well, do first And plastic as I InMode soon. and Kaman a that we hyaluronic with a separate LA, necessarily impact? [ work. the the the doing that the we a have surgeon, InMode's lymphatics. sponsored coming work be real. fillers are did it's that group block great ]. list. But it Yes, is that the do. that out physicians different. I does It's technology. completely practicing we as is coming so what the Pasha leaders two-year doctor have with study is doctors fillers name There's is He

having to overall, two years So that think what's to be back, had next patients with that of going The we and we I especially device three to implants you the takes going are at women, in Whether majority about seeking same think based filler plastic things patients past. be are. if these going XX to back step in And towards surgery, to a sort I has more as any are of look happen for whether thing things. lot are the in all with cross-linking. years it be a specifically these the with push what, to a But of fillers are problems. And biologics. look do we that not hyaluronic to Patients start in that's trends. to fat, having natural that's -- it's it's the happened of looking going at course, it

company, works. have it's the is it. This is treatments reputation personally representing take not feel something equipment this independently, as position this important we strongly best patients. We good that find or does of thoughts that I've but them. InMode's I my for So about done InMode always And a that our certain care in

that looking well. those in go in along to has lines So usually for M&A the whatever line, we're as past in

or that did your answer question So more less?

Matthew Taylor

great. That's Yes.

Operator

this for you. conference our to Mizrahy, Thank concludes I'd Moshe over and turn the And question-and-answer CEO, to ladies gentlemen, session. Chairman back closing like remarks. and

Moshe Mizrahy

a of Especially, in team earnings thanks discussed Thank quarter, work to that I all like the better this that call. as we time. that all comply hope hard you order working worldwide, we all the InMode make thank will we on I every situation, InMode that make in you, operator. the stronger. to QX day Again, get Usually, worldwide on challenging want facing today. market. promises who thank QX war have third Israel employees the will would deliver We sometime XX all to with in hours this the under all as is participated day, sure far that to

in target Bye-bye. We have be the we number to doing hit all. some always, can, QX for to Again, the But gave. that to we challenge that. meet we're within as you everything thank order

Operator

for concludes all We presentation. you. attending Thank today's you call. thank conference today's This

day. have may now disconnect You lines, your wonderful and a

InMode (INMD) 2 Nov 232023 Q3 Earnings call transcript