YOKNEAM, Israel, July 27, 2023 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2023.

INMODE Logo

Second Quarter 2023 Highlights:

  • Record quarterly revenue of $136.1 million, an increase of 20% compared to the second quarter of 2022. InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 81% of quarterly revenues, while 9% came from InMode's hands-free platforms and 10% from InMode's traditional laser and non-invasive RF platforms.
  • Record GAAP net income of $55.7 million, compared to $44.0 million in the second quarter of 2022; *non-GAAP net income of $62.2 million, compared to $50.4 million in the second quarter of 2022.
  • Record GAAP diluted earnings per share of $0.65, compared to $0.52 in the second quarter of 2022; *non-GAAP diluted earnings per share of $0.72, compared to $0.59 in the second quarter of 2022.
  • Record quarterly revenues from consumables and service of $21.6 million, an increase of 44% compared to the second quarter of 2022.
  • Total cash position of $629.4 million as of June 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)


Q2 2023

Q2 2022

Revenues

$136,081

$113,547

Gross Margins

84 %

83 %

Net Income

$55,729

$44,048

Earnings per Diluted Share

$0.65

$0.52

*Non-GAAP Results

(U.S. dollars in thousands, except for per share data)


Q2 2023

Q2 2022

Gross Margins

84 %

84 %

Net Income

$62,234

$50,401

Earnings per Diluted Share

$0.72

$0.59

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation adjustments.

Management Comments

"We are pleased to report a record quarter with revenue of $136.1 million, as sales from our platforms and disposables were the strongest they've ever been," said Moshe Mizrahy, Chairman and Chief Executive Officer. "Our commitment to innovation supports our growth and leads to a solid brand recognition within the aesthetics industry."

Shakil Lakhani, President of InMode North America, commented, "Once again, we saw an increase in consumable and platform sales in the second quarter. Revenue from consumables and service for the second quarter grew nearly 44% year-over-year and reached a record level."

"InMode's Envision platform, which offers a full periorbital treatment, continued to perform well in Q2, as we gained market traction stemming from the soft launch in Canada last year," said Dr. Spero Theodorou, Chief Medical Officer.

Second Quarter 2023 Financial Results

Total revenues for the second quarter of 2023 reached $136.1 million, an increase of 20% compared to the second quarter of 2022.

"We are happy to deliver another strong quarter, with record revenue and EPS in Q2," said Yair Malca, Chief Financial Officer. "Our significant international sales growth reached a record level of $49.5 million, and along with the expanded use of InMode's platforms, we were able to increase our full-year guidance."

GAAP gross margin for the second quarter of 2023 was 84% compared to a gross margin of 83% 2022. *Non-GAAP gross margin for the second quarter of 2023 and 2022 was 84%.

GAAP operating margin for the second quarter of 2023 was 42%, compared to an operating margin of 43% in the second quarter of 2022. *Non-GAAP operating margin for the second quarter of 2023 was 47% compared to 49% for the second quarter of 2022. This slight decrease was primarily attributable to higher sales and marketing expenses, mainly because of the addition of new sales representatives, higher travel expenses, as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company's growth projections.

InMode reported GAAP net income of $55.7 million, or $0.65 per diluted share, in the second quarter of 2023, compared to $44.0 million, or $0.52 per diluted share, in the second quarter of 2022. On a *non-GAAP basis, InMode reported net income of $62.2 million, or $0.72 per diluted share, in the second quarter of 2023, compared to $50.4 million, or $0.59 per diluted share, in the second quarter of 2022.

2023 Financial Outlook

Management provided an outlook for the full year of 2023 ending December 31, 2023. Based on current estimates, management expects:

  • Revenue between $530 million and $540 million
  • *Non-GAAP gross margin between 83% and 85%
  • *Non-GAAP income from operations between $238 million and $243 million
  • *Non-GAAP earnings per diluted share between $2.62 and $2.66

This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation adjustments.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, July 27, 2023, at 8:30 a.m. Eastern Time to discuss the second quarter 2023 financial results.

The Company encourages participants to pre-register for the conference call using the following link

https://dpregister.com/sreg/10180180/f9c680d37c.

Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S. Toll-Free Dial-in Number: 1-833-316-0562
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=hAHIxqyf
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from July 27, 2023, at 12 p.m. Eastern Time to Aug 10, 2023, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529
Replay Dial-in Canada TOLL-FREE: 855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 3384563

To access the replay using an international dial-in number, please select the link below:

https://services.choruscall.com/ccforms/replay.html

A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2023 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 14, 2023, as well as risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

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

 

 

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)



Three months ended
June 30,

Six months ended
June 30,


2023

2022

2023

2022


REVENUES

136,081

113,547

242,155

199,468


COST OF REVENUES

22,054

18,946

40,308

33,718


GROSS PROFIT

114,027

94,601

201,847

165,750


OPERATING EXPENSES:






Research and development

3,567

3,183

6,669

5,998


Sales and marketing

51,059

39,653

92,772

70,502


General and administrative

2,392

2,562

4,400

5,039


TOTAL OPERATING EXPENSES

57,018

45,398

103,841

81,539


INCOME FROM OPERATIONS

57,009

49,203

98,006

84,211


Finance income (expense), net

4,445

(918)

7,734

(539)


INCOME BEFORE TAXES

61,454

48,285

105,740

83,672


INCOME TAXES

5,725

4,237

9,506

8,649


NET INCOME

55,729

44,048

96,234

75,023








NET INCOME PER SHARE:






Basic

0.67

0.54

1.16

0.91


Diluted

0.65

0.52

1.12

0.88


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN
 COMPUTATION OF NET INCOME PER SHARE (in thousands)






Basic

83,405

82,216

83,280

82,590


Diluted

85,650

84,663

85,579

85,236


 

 

INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)



June 30,

2023

December 31,

2022

Assets



CURRENT ASSETS:



Cash and cash equivalents

159,855

97,540

Marketable securities

400,464

374,589

Short-term bank deposits

69,094

75,254

Accounts receivable, net of allowance for doubtful accounts

32,568

26,997

Other receivables

18,656

15,094

Inventories

38,568

39,897

TOTAL CURRENT ASSETS

719,205

629,371

NON-CURRENT ASSETS:



Accounts receivable, net of allowance for doubtful accounts

3,871

3,973

Deferred income tax asset, net

2,350

3,094

Operating lease right-of-use assets

5,595

5,073

Property and equipment, net

2,463

2,298

Other investments

600

600

TOTAL NON-CURRENT ASSETS

14,879

15,038

TOTAL ASSETS

734,084

644,409

Liabilities and shareholders' equity



CURRENT LIABILITIES:



Accounts payable

13,295

16,242

Contract liabilities

11,098

13,798

Other liabilities

36,340

51,980

TOTAL CURRENT LIABILITIES

60,733

82,020

NON-CURRENT LIABILITIES:



Contract liabilities

3,038

3,959

Other liabilities

533

303

Operating lease liabilities

3,622

3,509

TOTAL NON-CURRENT LIABILITIES

7,193

7,771

TOTAL LIABILITIES

67,926

89,791




TOTAL SHAREHOLDERS' EQUITY

666,158

554,618

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

734,084

644,409

 

 

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)




Three months ended
June 30,

Six months ended
June 30,


2023

2022

2023

2022


CASH FLOWS FROM OPERATING ACTIVITIES:






Net income

55,729

44,048

96,234

75,023


Adjustments required to reconcile net income to net cash provided by operating activities:






Depreciation and amortization

184

155

372

293


Share-based compensation expenses

6,505

6,353

10,714

9,447


Allowance for doubtful accounts

261

142

239

352


Loss on marketable securities, net

-

23

-

37


Finance expenses (income), net

(1,197)

851

(2,709)

941


Deferred income taxes, net

43

169

62

147


Changes in operating assets and liabilities:






Increase in accounts receivable

(7,949)

(8,247)

(5,708)

(4,294)


Increase in other receivables

(3,791)

(398)

(4,020)

(1,593)


Decrease (increase) in inventories

2,243

(4,660)

1,329

(8,734)


Increase (decrease) in accounts payable

1,308

2,292

(2,947)

3,054


Increase (decrease) in other liabilities

7,211

4,105

(15,832)

(770)


Increase (decrease) in contract liabilities

(7,547)

2,148

(3,621)

4,931


Net cash provided by operating activities

53,000

46,981

74,113

78,834


CASH FLOWS FROM INVESTING ACTIVITIES:






Investment in short-term deposits

(100,000)

(22,500)

(106,000)

(45,611)


Proceeds from short-term deposits

106,500

23,000

112,500

43,000


Purchase of fixed assets

(194)

(561)

(535)

(860)


Purchase of marketable securities

(54,190)

(17,545)

(172,542)

(38,754)


Proceeds from sale of marketable securities

-

1,008

-

2,002


Proceeds from maturity of marketable securities

60,891

14,224

152,028

25,157


Net cash provided by (used in) investing activities

13,007

(2,374)

(14,549)

(15,066)


CASH FLOWS FROM FINANCING ACTIVITIES:






Repurchase of ordinary shares

-

-

-

(42,637)


Exercise of options

827

204

2,500

365


Net cash provided by (used in) financing activities

827

204

2,500

(42,272)


EFFECT OF EXCHANGE RATE CHANGES ON CASH

60

(1,077)

251

(1,228)


NET INCREASE IN CASH AND CASH EQUIVALENTS

66,894

43,734

62,315

20,268








CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

92,961

44,670

97,540

68,136


CASH AND CASH EQUIVALENTS AT END OF PERIOD

159,855

88,404

159,855

88,404


 

 

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)



Three months ended June 30,

Six months ended June 30,

2023

2022

2023

2022

Revenues by Category:


















Capital Equipment revenues - United States

73,828

54 %

62,960

56 %

123,579

51 %

107,720

54 %

Capital Equipment revenues - International

40,635

30 %

35,560

31 %

77,008

32 %

62,743

31 %

Total Capital Equipment revenues

114,463

84 %

98,520

87 %

200,587

83 %

170,463

85 %

Consumables and service revenues

21,618

16 %

15,027

13 %

41,568

17 %

29,005

15 %

Total Net Revenue

136,081

100 %

113,547

100 %

242,155

100 %

199,468

100 %










 

 


Three months ended June 30,

Six months ended June 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

86

73

81

84

74

80

88

74

83

84

72

79

Hands-Free

11

6

9

14

5

11

10

6

8

13

6

11

Non-Invasive

3

21

10

2

21

9

2

20

9

3

22

10


100

100

100

100

100

100

100

100

100

100

100

100

 

 

INMODE LTD.











RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF











INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME 











(U.S. dollars in thousands, except for per share data)











(Unaudited)























Three months ended June 30, 2023

Three months ended June 30, 2022





GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Non-GAAP





REVENUES

136,081

-

136,081

113,547

-

113,547





COST OF REVENUES

22,054

(547)

21,507

18,946

(496)

18,450





GROSS PROFIT

114,027

547

114,574

94,601

496

95,097





OPERATING EXPENSES:











Research and development

3,567

(757)

2,810

3,183

(866)

2,317





Sales and marketing

51,059

(4,731)

46,328

39,653

(4,459)

35,194





General and administrative

2,392

(470)

1,922

2,562

(532)

2,030





TOTAL OPERATING
EXPENSES

57,018

(5,958)

51,060

45,398

(5,857)

39,541





INCOME FROM OPERATIONS

57,009

6,505

63,514

49,203

6,353

55,556





Finance income (expense), net

4,445

-

4,445

(918)

-

(918)





INCOME BEFORE TAXES

61,454

6,505

67,959

48,285

6,353

54,638





INCOME TAXES

5,725

-

5,725

4,237

-

4,237





NET INCOME

55,729

6,505

62,234

44,048

6,353

50,401
















NET INCOME PER SHARE:











Basic

0.67


0.75

0.54


0.61





Diluted

0.65


0.72

0.52


0.59





WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN
 COMPUTATION OF NET INCOME PER SHARE (in thousands)











Basic

83,405


83,405

82,216


82,216





Diluted

85,650


86,243

84,663


85,366





 

 

INMODE LTD.

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

 INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME 

(U.S. dollars in thousands, except for per share data)

(Unaudited)


Six months ended June 30, 2023

Six months ended June 30, 2022

GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Non-GAAP

REVENUES

242,155

-

242,155

199,468

-

199,468

COST OF REVENUES

40,308

(901)

39,407

33,718

(810)

32,908

GROSS PROFIT

201,847

901

202,748

165,750

810

166,560

OPERATING EXPENSES:







Research and development

6,669

(1,258)

5,411

5,998

(1,391)

4,607

Sales and marketing

92,772

(7,769)

85,003

70,502

(6,354)

64,148

General and administrative

4,400

(786)

3,614

5,039

(892)

4,147

TOTAL OPERATING
EXPENSES

103,841

(9,813)

94,028

81,539

(8,637)

72,902

INCOME FROM OPERATIONS

98,006

10,714

108,720

84,211

9,447

93,658

Finance income (expense),net

7,734

-

7,734

(539)

-

(539)

INCOME BEFORE TAXES

105,740

10,714

116,454

83,672

9,447

93,119

INCOME TAXES

9,506

-

9,506

8,649

-

8,649

NET INCOME

96,234

10,714

106,948

75,023

9,447

84,470








NET INCOME PER
SHARE:







Basic

1.16


1.28

0.91


1.02

Diluted

1.12


1.24

0.88


0.98

WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN
 COMPUTATION OF NET INCOME PER SHARE (in thousands)







Basic

83,280


83,280

82,590


82,590

Diluted

85,579


86,062

85,236


85,786

 

 

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