INMD - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to Inmode's Second Quarter 2024 Earnings Results Conference Call. [Operator Instructions] I would now like to turn the conference over to Miri Segal, CEO of MS-IR. Please go ahead.

Miri Segal-Scharia

Thank you, operator, and everyone, for joining us today. Welcome to InMode's conference call.

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

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

indicative Our are not historical results of necessarily future performance.

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

Moshe Mizrahy

Thank me and of America, and our [Dr. With Krieger in our and for today our ]; Medical Eran joining Technology President ], are CFO; Officer; you, us. Co-Founder to Lickerman and VP Kreindel, of Malca, Medical Director Finance. Rafael VP Yair Lakhani, Chief Michael Miri, our Affairs, everyone Shakil our [ Dr. North

question prepared all our will be available answer. Following we for remarks, and

of the I would to quarter. highlight the like second development

As X IgniteRF and we we Optimus launched mentioned QX, new previously Max. in our advanced platforms,

the we to the that of believe to happy on are of preorders end we we report And track before are deliveries both We have begun year. platforms. deliveries complete of

new and new hand FDA. piece a invasive handpiece burst the QuantumRF, static coming again, in that minimal is innovative technologies hand a of has a and We generation in technology, solid with be invasive are QuantumRF strong several platforms year. the offer legacy IgniteRF minimally happy platforms pieces new recently been by The procedure that surgical we Once RFL to cleared a box. next MorpheusX and the these see the version a our demand, will believe contributor all

that it have the of doctors multi-application features while effective good most ever impacted well as on MorpheusX device adjust time. noninvasive treatment with and With hand macroeconomic as trend as IPL are in we the less features Ignite, It our power, to discussed call time a depth These results. financial Max manufactured, treatment at physicians Such depth, is different more our treatment. time many allowing allowing physician last laser-based complicated patients discomfort. to less pieces, is desire. and and platform for energy may aspire by shorten demand for Optimus valued results that and The we RF deliver achieving stronger has various and results. market ability with levels less that the The highly

and The was us second the aesthetic a for quarter for challenging doctors. one

in for mainly We the a -- demand in major have seen demand of treatment, treatment U.S. decrease

we to Israeli first crucial Earlier working -- MorpheusX we and ensure market. while contraction are soft update only the had shift that work Our Their hard team to this we maintaining were the commitment maintain to to success the month, leadership position our its timely FDA cleared our and in happy FDA deliveries. longer tissue, that dedication have for kind. of -- our our

aesthetic gold has most and technology. in the Our treatment MorpheusX become treatment popular our standard

expand Additionally, their enable new indication to the petitioner patient base.

quality to need of they provide continue results. deliver to the to to We in advancement best invest with professional achieve medical R&D care highest the

the Theodorou best luck I to wish his joined Eran level, years joined He InMode, and Dr. the I to am Director company, of ago. Affair. Medical corporate our pleased Krieger the Dr. introduce has X Medical XX of field. years time experience for thank On VP in Krieger him in Israeli medical of and aesthetics Spero like and Dr. and with has Italian several his future. in for worked InMode would companies as

--to our Michael to over CFO. call the Yair? turn to Yair like Malca, would I Now

Yair Malca

and Thank you, Thank joining Moshe, you for everyone. us. hello,

As to preorder recognized says not Once selling a them Moshe in We we on adds been back and platforms during to preorder forma sales continue which delivered, as started this revenue. our results, provide business better two could launched the forma that non-GAAP again, be pro new that and related it's believe basis. QX we the the reflect results results, Therefore, quarter. mentioned, the not yet pro activity expenses.

XXXX. Inmode revenue. quarter total in of with Starting million second $XX.X the generated

yet not invasive margin non-GAAP gross technology revenue QX gross QX for XX% However, of was total In to platforms accounted in which XX% gross was pro XX% of margin new includes was was margin XX%, QX, forma preorder $XXX.X revenues. delivered. compared million, XX% of pro in XXXX. forma platforms, and GAAP minimally while our

operations. our to international Moving

future sales system of XX outside shortfall XXXX. and in GAAP quarter the quarter decrease have to sales, distributors growth, representing year. decrease $XX.X U.S. decreased due compared million, million the from year. ensure in $XX.X more marketing XX% a In QX Sales million compared total XX% was period were and to the second our reps direct is to second in last for quarter outside the decrease operating same a year-over-year. XX% of expenses currently the to our QX worldwide. operations million, $XX.X This Europe an expenses of $XX revenue U.S. largest in the and support contributor the than we Second to last accounted XXX revenue To QX,

earnings Next, of and operating non-GAAP per compared operating of GAAP the the quarter XX% a second per diluted $X.X per GAAP XX% XXXX. XX% second quarter $X.XX, basis. margin share for was non-GAAP in compared were QX -- were of second the operating we this share-based to in compared QX looked compensation, and of in was XX%, forma XX% margin $X.XX XXXX. operating diluted margin the XXXX an quarter second margin diluted per non-GAAP earnings second The for share compared this XXXX. million of the pro on diluted quarter which diluted for per a was for in operating quarter quarter $X.XX margin of $X.XX Non-GAAP forma to XXXX. $X.XX share earnings at were to of for to pro share the share in quarter decreased second to quarter

a again, Once ended the quarter with sheet. strong balance we

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

from generated This million $XX.X operating quarter, activities. Inmode

share latest as repurchase we acquiring our of price today, shares Regarding program, million $XX.XX average successfully share. completed an at per X.XX all of

have allocation provide report. capital future will continue all for to as evaluate used options, we As plans, as to carefully we updates we soon and

compared I call guidance to of Before same $XXX to which million; $X.XX million the is million Moshe. $XXX to previous to to of like previous guidance; operations to to to $X.XX I'd our from $X.XX compared $XXX will back $XXX income Full be guidance over to earnings XXXX million the and compared per Non-GAAP gross between with now $XXX non-GAAP million to between $XXX of previous guidance XX% between year $XXX $X.XX. you turn Moshe, to revenue the share XXXX. of previous guidance I non-GAAP for margin to back diluted million. million as turn XX%, to $XXX million share call

Moshe Mizrahy

you, session. Operator, the Q&A ready for Thank we are I Yair. believe

Operator

[Operator from question Danielle We begin comes Instructions] answer with question first session. UBS. Antalffy and will the The now

Danielle Antalffy

launches, the comps. for but back you guess I giving and Obviously, we the my will be off delivered Congrats product how to XXXX you're have ahead I the thinking will looking product the launches. question start easier should mean, -- in I XXXX, on about guidance appreciate is of this evolution market here? which new year. of half these it getting the be

really thing a double-digit double-digit turn in to in feasible to in XXXX, to is need market your mind order growth, earn do that there? So the we market turn get doesn't Or back see to growth, even if the around around?

Moshe Mizrahy

very it's early what This will happen judge year. Moshe. to is -- believe next will I it very now be

us. have We of X ahead quarters

probably The you know, will We're not the buy not will quarter, doctor lease that on rate systems one. the openly it's waiting enable Right third strong the down to more we on aesthetics now, States. following still happening the to one fourth in election medical that yet. be see in is wait. United interest and a And believe -- as the usually softest quarter packages go

and platforms them that's all that, market. In now, daily half the in in Usually, the still discontinued also that tell do. up in you, to most pick I will right now everything Japan all United We in issue will We them Israel that X do that in well of this not States. territories. The addition how everything companies changes that go sudden see established what other we if everybody -- of XXXX in and we'll started Germany the all a and war We just hope We the continue. to yesterday, organization can a launched the a the launch have need plan, that the on in ready we fly territories, will we the will Europe U.S., the us, escalate X in we major be especially we XXXX. second track to succeed airline we the on knows. and the is for only as basis, and Israel. of have We launched and to

in supplies the of of the kind we or near be components few weeks. not hopefully, will near all of future So short in

XXXX. we see foresee, strongly quarter to several can cannot the there before happen and will are need So elements something in what we wait we about that and third say

Danielle Antalffy

do side margin I forward here Are Any helpful. And a platforms XXXX. continue that. we dilutive to going drivers potential margin been invest things, That's Okay. in appreciate these accretive how even then into forward mean, there? of environment. guys to just think line? margins your I in on guess transparent of margin have the just margin, pretty -- I to color willingness to about about improvement you tough the going new

Moshe Mizrahy

we will that the product and and we the from what every that develop margin. handpiece every we Every designed beginning, develop, we calculate platform and develop we it that be

drawing develop will that or margin. product never it a on XX% show will the base, gross XX% We

in as the planned in is to Israel, R&D, to States, we everything that see the in the down product, in for see, so relate everything high. as microeconomics, relate be philosophy the -- phase, the everything we demand I when many United the treatment, said, margin, can margin, go we everything be invest will of do high design the sales So on we company. you now that's and even reasons, war less of and which continue the And designed to margin because the

Operator

Genuity. The with comes from next Cronin question Caitlin Canaccord

Caitlin Cronin

environment think maybe deterioration you the you would demand some versus on I can Was quarters. still if more really this it it Do if point, interest be would worse noted sense go if on recover color come patient then just in provide both guess that -- demand. And why demand you in have those not earlier, remains was so that really to much rates -- the of would make just prior down, for to the providers lower, buying hesitant but patient back? still systems. the

Moshe Mizrahy

will order it in rate regular But years, know believe that some down. are it that rate, enough the come. to not will the to finance interest on enable for back. companies using system. yes, the lease it -- know come purchase, interest sell you're especially I lease will doctors down packages, eventually, take us the I enable I to right, did But don't X Eventually, time. And come went more when.

demand. is crucial to half happen will see on The year the this second what of

in and are continue go States, disposable Regarding we That's the saving money to less will to it up because sell Hopefully, -- treatment that. and the nice down procedures, again like And esthetic investigating time that the reason technology, we we a the back is numbers less doing technology, United because way on for are will believe aesthetic QX demand. people main are procedures be XXXX. crucial. we're eventually coming the special the less to In that disposable. go I sold will people selling compared XX% we the look wants that. and know

positive by cash judge we're making is public still we're still to our We [indiscernible], a us still to Cutera, like flow. want selling, have you comparing or competitors, money. which company, If a some of

we or all we we fire this company. right people keep Hopefully, Although momentum. now better, assets the everything the and tough it's the continue that the will a down will is of don't because lay time, get employees,

Caitlin Cronin

lowered the miss. sense. to just conservatism further reflect further, guidance that Got it. of just Is you That back half little the the pushing makes into And than then really QX year? a the

Moshe Mizrahy

I what? the on Conservatism didn't question. understand

Caitlin Cronin

the than further appeared which guidance the lowered You miss. QX

So just just your just more you expect being back half if into conservative guidance with wondering -- of the you're year?

Moshe Mizrahy

revenue from show. mean, the not the like we good question. -- we it. quarter million. meet in understand quarter because usually forma that entire Always. for you the just for $XXX the quarters. over we X I in a Inmode enough. on the strong last million -- $XXX conservative pro the the a not to I to strong guidance million guidance. next Thank few And was the was the repeating years, which the which we QX, the million, not we usually numbers on We're for industry, changed always satisfied $XXX are And did X $XXX quarters In base, in make something or have still million $XXX order is

-- third a third sure, all if to I said summer million the treatment will we hope numbers we And fourth that compared are quarter and want million then summer. we we slow in the less would before, to that do that I And during it's usually don't meet one people but As the to to $XXX of the because are quarter the We will do be see quarter third -- we the is will $XXX be well absolutely regular be say this strong. quarter. case, the will the encouraged guidance. do

Operator

with The Jeff Baird. from is next question Johnson

Jeffrey Johnson

Is the focus? upgrade to IgniteRF in Max upgraded at Moshe, Or A system Remind systems addition on new new got are demand Will than systems field? over are globally. is of And XX,XXX couple technology sets been the you sales those kind should XX,XXX those in in of trade-in years? is placed that about feature demand? almost the of Optimus that? Or enough really no answer XX,XXX any point? the have -- -- in you've kind it Are I here. those that. U.S., of that I guess, me new systems, system offering older the systems be the almost this different on just a think of systems and programs now and focused questions the

Moshe Mizrahy

focusing But invasive second are RF. working minimally is type, we our once point, a stated, this a bit It it's we system than more At replacing type, body -- the different them not the it's as for face is with neck than sales. type. different on that the technology. Ignite exactly It's new technology little because

buy happy to have opportunity believe the I which body type, as the indications. system, doctors the in type, has Ignite different So who platforms, with the well comprehensive we're for face neck order will type a

Regarding the Optimus Max.

the little As some before different hand Optimus you we had Optimus the friendly. Optimus user but more MAX, the bit levels remember, Max different has pieces a and with energy

know, off the to already doctors is future, So years. lease, we to a but and to yes, who previously do the in X will some for the plan and trade full in trade paid everybody. the -- the program all has paid as in in, will they not original we which, you Optimus Optimus X Max do to between eventually sell But do not --

be trading, it system. will it Mostly, new partially, So, will be

Jeffrey Johnson

just placements It press number some year-over-year And we the sales That's questions. down fairly I XQ U.S. you said your the other sounds Is driven? there? do this believe know one the question. almost that's be indications sequentially. go macro XQ increase to too the there? it? just optimistic anything release. margin, conversion field, XQ quarter anything in you're kind loss, through Any on be. did than doctors share -- XQ, And obviously, of Which might any you're Or So the was other that all worst seasonally sequential read talking being quarter you technologies, from to, consumable there the of of that like normal two up two, past seen one, procedural Okay. in I Obviously, to follow-up we've guess, I I then stronger increase to like XX%. on the tends the Is the but saw that's a about a years. then there global helpful. in And to from

Moshe Mizrahy

Okay.

that disposable the some the we Let's start in countries. we with in I U.S. a have but increase the other in disposables. said see drop

the So of totally but U.S. decline on we quarter main total, or the drop numbers the came the market. the than have XXXX, some less from second were which offsetting main

be minimal I on the drive believe macroeconomics, people like treatment. doctors would charging $XXX per And for our people. regular can reason in invasive money cetera, the are because -- et saving They hair treatment, therefore, or $XXX treatment Now that between, charge not I believe downtrend. expensive lesion, are it's treatment. are it removal, say, $X,XXX/$X,XXX And some we cosmetic to therefore, $X,XXX relatively that's to seems vascular

United from they this and instead and a realize is system finally, buying the as believing But doctor doing the to well fake. that is buy that We States same. make gets $XX,XXX in try some confused success. of this for the number. become mistakes system several bringing legal or fight because, into InMode We example, is market and Europe the this how with very, standard. the In America. see the gold same Asia. and made same that popular with even the on addition name that, on some Chinese the the label for the sure $XXX,XXX product. with and stop activity sometimes And start We of is Therefore, same some Morpheus because I'm them Chinese good the a back. a okay, the to especially a with just And same to know that it just But are it's got we was the by in They companies, the Inmode, very against to into seeing try territories. Latin copies said, do lot we claim now don't part those they them there some of in market, they logo

fake it. Let's

develop to similar. Let's try something

a answer one? question, you your I looks It's Did just the copy. pure it or same. had Sometimes another Chinese

Jeffrey Johnson

handle asked, other that But the on raises was XQ call that. XQ. in seasonally stronger five question than mean we'll offline . the I again, questions, the to in tends be increase maybe and . Yes. I increase. placements, that know which back. sequential pattern, about But the the get I I

Moshe Mizrahy

didn't [indiscernible] Jeff, [indiscernible] What? -- I

Jeffrey Johnson

the increase placed say, is that in a tell the maybe up. of that in that the overread units go quarter of The sequential but is market want we're don't a of to units did place sequential read? that Or number better, means oh, just, higher does increase than I kind in were second the and you of placed My was getting quarter. than better somewhat question did we It follow too us at a quarter ago? normal XQ that is pattern. little bit a that first optimistic

Moshe Mizrahy

system, regular. understand once not And I be MAX of I I and and the to but will U.S. -- you Max. It's Optimus the Optimus. And that. sometime total system recognition is on dollars system deal regular numbers will is confusion the closed everything difference the the we and Optimus on creates the pro an relates and of start By look delivered. and send don't available, have financed the end can we answer a therefore, year, on we to Max forma not suggest working the the the with that. doctor the it an mean, the the order replace some Optimus, between same total. balanced. sometime And them when Optimus

Operator

[Operator next & Instructions] from Conway Company. with question comes Needham Joseph The

Joseph Conway

Optimus. question one the just on Maybe

thoughts maybe of you had portion device just color, that I you of guys than is laser, business, if just stage. of more. after this that this market the if this more to what business And kind curious technology? a invasive, manufactured mentioned general, total kind your on complicated growing had laser going the ITL an of most is more could was minimally your if it's bit the IPO you in You little is at kind are area describe

Moshe Mizrahy

Optimus, you're -- the I Optimus about I. assume MAX talking is am . the and not that .

Joseph Conway

Yes.

Moshe Mizrahy

Okay.

more we regular Max has on can the the from energy. how the more enable the Optimus Max powerful scale system Optimus Optimus not the deliver a to can The The kind all more for MorpheusX IPL possible has itself, technologies, than get the the new so On which example, much level. learn in because procedures, on with the which handle Optimus Max, not is or burst, again is it available of and more the same different The energy power often burst one was to of type Optimus. software on Max the the not Optimus Optimus. two

On we other eventually, regular to able be be on which the will Optimus upgrade laser done Max, cannot to the system, Optimus.

the I a like fully cetera. more, upgraded to same energy, depth, way So the little powerful in would et outside with The Morpheus. is as better bit a noninvasive overall, as same although like say, former set said, pieces design it It -- up of it's Optimus, with pieces is new technology like better but the seems a I much RF hand hand name, of are a different. regular the the

system, that on system be most is system yourself. invasive complicated -- not the manufactured. eventually very, and that there But treatment, the one. system the this realize but nothing Internet it's say, I Look The will is like you comprehensive market see would for we said I most successful for system we the itself on medical regular and a aesthetic the very ever you and believe that

Joseph Conway

or model. for that more them those laid InMode, Consumable out a was a quarter; declined this it together. capital though, I first then guess handpieces more, constrained tough the our service and just the equipment? I ask And that. time just declined I'll of question. is supply it's revenue some you for the focused Yes. curious, And in and reasons two are Okay. comp if to then the of separate Obviously, kind

target terms higher or follow-on Or another the level? guys shares, lower that kind for would a program, you of you or share of that In are kind -- level? purchase share target a potential program, the similar potential thinking X.X a million level, is repurchase of

Moshe Mizrahy

type, a capital connect do hand do treatment question. to to what on first procedures. your the with the equipment. or piece body is system disposable. in you Disposable start you the order is and system Handpieces the the or not will part like quantum I put Handpieces so the can face of type, it's is the

forma, So Morpheus IPL handpieces disposable. not body part handpiece, It many it's Lumeca, effects, effects, refer capital equipment. to of handpiece, laser the handpieces, is

-- exactly we XX% a had. to us pay X.XX some shares, it's from which On to because decide If and your is XX%, hopefully, they according we'll to to did will we of outstanding allow dividend the will XX% more are XX% ask now. table us buyback total and IRS, the second mean, all allow options in X.XX pre-ruling shares, with we'll on is Why right of And, to million we us to of to for total Israeli the continue, they tax do They buyback, future allow pay the tax. of that question, but we I a shares do million IRS if about Israeli than have we is the the have which continue shares. issues. do the

some shares. be do million we will in again it more so can approved, hopefully, the We addition will and ask to X.XX

Operator

there further questions At are queue. this in time, no the question

our this Moshe session. like So of question-and-answer would InMode CEO closing for remarks. to the back conference I to Mizrahy, over turn concludes any

Moshe Mizrahy

I before, we'll every that Thank said side InMode Latin America, continue shareholders located, subsidiaries, the so the of America, many in Israel where you in work in war to operate Special now with needed, to with all Israel, especially supply next and that day, are us be all even team, we to work that of would you as Thanks our spite north is of them dedication. in thanks like shifts for very in working day are Thank Thank years. in of that to countries for the all distributors employees the much. two thank to especially. InMode thanks escalating, quarter. XX all -- come Israeli you And the I able operator. very Miri. Europe, very thank in order to we the North to the everything, the Asia if a of to much, you, see

Operator

presentation. for attending concluded. today's now has you conference The Thank

You disconnect. may now

InMode (INMD) 1 Aug 242024 Q2 Earnings call transcript