YOKNEAM, Israel, Feb. 13, 2024 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2023.

InMode Ltd Logo

Fourth Quarter 2023 Highlights:

  • Quarterly revenue of $126.8 million, compared to $133.6 in the fourth quarter of 2022.
  • Quarterly revenues from consumables and service of $20.5 million, an increase of 20% compared to the fourth quarter of 2022.
  • Total cash position of $741.6 million as of December 31, 2023, including cash and cash equivalents, marketable securities, and short-term bank deposits.

Full Year 2023 Highlights:

  • Record full year revenue of $492 million, a year-over-year increase of 8%.
  • Record GAAP net income of $197.9 million, compared to $161.5 million in 2022; record *non-GAAP net income of $221.5 million, compared to $207.5 million in 2022.
  • 18% increase in international (non-U.S.) revenues as compared to 2022.

 

U.S. GAAP Results

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


Q4 2023

Q4 2022

FY 2023

FY 2022

Revenues

$126,781

$133,571

$492,048

$454,271

Gross Margins

84 %

84 %

84 %

84 %

Net Income

$55,165

$37,708

$197,919

$161,520

Earnings per Diluted Share

$0.64

$0.44

$2.30

$1.89

*Non-GAAP Results

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


         Q4 2023

Q4 2022

FY 2023

FY 2022

Gross Margins

84 %

85 %

84 %

84 %

Net Income

$61,487

$66,370

$221,519

$207,486

Earnings per Diluted Share

$0.71

$0.78

$2.57

$2.42


*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.in 2022
The Company applied the
provisions of the amendment to the Investment Law to its exempt profits accrued prior to 2020 and made a one-time payment of
$12.0 million to the Israeli Tax Authority. In addition, the Company reached agreement with the Israeli Tax Authority under which
the Company paid during January 2023 approximately $14.3 million on its undistributed exempt income for the year ended
December 31, 2021. As a result, approximately $313.2 million of the Company's undistributed exempt income for years 2012
through 2021 may be distributed or used by the Company without being subject to additional corporate tax.

 

Management Comments

"In 2023, particularly the latter half, we saw challenges both for InMode and the aesthetics industry, including the surgical aesthetic sector," said Moshe Mizrahy, Chairman and Chief Executive Officer. "However, we successfully introduced two exciting platforms, Define and Envision, which gained substantial market traction.

"Looking ahead, we plan to launch 2 new platforms this year and believe that our market share will continue to grow as we introduce new and innovative technologies for minimally invasive aesthetics treatments. Our unique technology and continued commitment to bringing new platforms to market are pivotal in establishing InMode as a global leader in the aesthetics medical device industry worldwide," Moshe Mizrahy concluded.

Fourth Quarter and Full Year 2023 Financial Results

Total revenues for the fourth quarter of 2023 reached $126.8 million, compared to $133.6 in the fourth quarter of 2022. Total revenues for 2023 were $492 million, an increase of 8% as compared to 2022. This increase was primarily attributable to the growth in our consumables sales and our expansion in international markets, with international revenues growing 18% year over year.

GAAP gross margin for the fourth quarter of 2023 and 2022 was 84%. *Non-GAAP gross margin for the fourth quarter of 2023 was 84% compared to a gross margin of 85% for the fourth quarter 2022. GAAP and *Non-GAAP gross margin for 2023 and 2022 was 84%.

GAAP operating margin for the fourth quarter of 2023 was 40%, compared to an operating margin of 45% in the fourth quarter of 2022. *Non-GAAP operating margin for the fourth quarter of 2023 was 45% compared to 50% for the fourth quarter of 2022. GAAP operating margin for 2023 was 40%, compared to the operating margin of 44% in 2022. *Non-GAAP operating margin for 2023 was 45%, compared to the operating margin of 49% in the full year of 2022. This 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 $55.2 million, or $0.64 per diluted share, in the fourth quarter of 2023, compared to $37.7 million, or $0.44 per diluted share, in the fourth quarter of 2022. On a *non-GAAP basis, InMode reported net income of $61.5 million, or $0.71 per diluted share, in the fourth quarter of 2023, compared to $66.4 million, or $0.78 per diluted share, in the fourth quarter of 2022. GAAP net income of $197.9 million, or $2.3 per diluted share, in 2023. This is compared with GAAP net income of $161.5 million, or $1.89 per diluted share, in 2022. On a *non-GAAP basis, InMode reported net income of $221.5 million, or $2.57 per diluted share, in the full year of 2023, compared to net income of $207.5 million, or $2.42 per diluted share, in the full year of 2022.

As of December 31, 2023, InMode had cash and cash equivalents, marketable securities, and short-term bank deposits of $741.6 million.

2024 Financial Outlook

Management provided an outlook for the full year of 2024 ending December 31, 2024. Based on current estimates, management expects:

  • Revenue between $495 million and $505 million
  • *Non-GAAP gross margin between 83% and 85%
  • *Non-GAAP income from operations between $217 million and $222 million
  • *Non-GAAP earnings per diluted share between $2.53 and $2.57

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. in 2022 The Company applied the provisions of the amendment to the Investment Law to its exempt profits accrued prior to 2020 and made a one-time payment of $12.0 million to the Israeli Tax Authority. In addition, the Company reached agreement with the Israeli Tax Authority under which the Company paid during January 2023 approximately $14.3 million on its undistributed exempt income for the year ended December 31, 2021. As a result, approximately $313.2 million of the Company's undistributed exempt income for years 2012 through 2021 may be distributed or used by the Company without being subject to additional corporate tax.

The Current Situation in Israel                                           

Regarding the current situation in Israel, management would like to assure investors that the Company is prioritizing the safety and well-being of its employees, and all its team are safe. InMode doesn't anticipate any significant interruption or delay in production or shipment. InMode's inventory levels globally and in Israel are adequate and include components and subassemblies for at least 6 months.

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, February 13, 2024, at 8:30 a.m. Eastern Time to discuss the fourth quarter 2023 financial results.

The Company encourages participants to pre-register for the conference call using the following link:  https://dpregister.com/sreg/10185217/fb446e05e4.

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=6h4ExUgZ
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific 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 February 13, 2024, at 12 p.m. Eastern Time to February 27, 2024, 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: 6723856
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://inmodeinvestors.com/.

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 2024 revenue projection described above. 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. 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, 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 

December 31,

Year Ended

December 31,


2023

2022

2023

2022


REVENUES

126,781

133,571

492,048

454,271


COST OF REVENUES

20,264

21,002

80,708

73,485


GROSS PROFIT

106,517

112,569

411,340

380,786


OPERATING EXPENSES:






Research and development

3,473

3,261

13,410

12,425


Sales and marketing

49,451

47,012

193,042

160,576


General and administrative

2,349

2,398

9,228

9,931


TOTAL OPERATING EXPENSES

55,273

52,671

215,680

182,932


INCOME FROM OPERATIONS

51,244

59,898

195,660

197,854


Finance income, net

8,920

3,962

21,607

3,612


INCOME BEFORE TAXES

60,164

63,860

217,267

201,466


INCOME TAXES

4,999

26,152

19,348

39,946


NET INCOME

55,165

37,708

197,919

161,520








NET INCOME PER SHARE:






Basic

0.66

0.46

2.37

1.96


Diluted

0.64

0.44

2.30

1.89


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






Basic

83,862

82,449

83,534

82,482


Diluted

85,835

85,288

85,954

85,404


 

 


INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(Unaudited)



December 31,

2023

December 31,

2022

Assets



CURRENT ASSETS:



Cash and cash equivalents

144,411

97,540

Marketable securities (amortized cost of $375,829 and $384,320, as of
 December 31, 2023 and 2022, respectively)

373,647

374,589

Short-term bank deposits

223,547

75,254

Accounts receivable, net of allowance for credit losses of $1,538 and $836,
 as of December 31, 2023 and 2022, respectively

42,362

26,997

Other receivables

16,268

15,094

Inventories

45,095

39,897

         TOTAL CURRENT ASSETS

845,330

629,371

    NON-CURRENT ASSETS:



Accounts receivable, net of allowance for credit losses of $716 and $482
 as of December 31, 2023 and 2022, respectively

3,670

3,973

Deferred income tax asset, net

1,506

3,094

Operating lease right-of-use assets

9,698

5,073

Property and equipment, net

2,382

2,298

Other investments

700

600

TOTAL NON-CURRENT ASSETS

17,956

15,038

TOTAL ASSETS

863,286

644,409

Liabilities and shareholders' equity



CURRENT LIABILITIES:



Accounts payable

13,966

16,242

Contract liabilities

10,923

13,798

Other liabilities

39,247

51,980

TOTAL CURRENT LIABILITIES

64,136

82,020

    NON-CURRENT LIABILITIES:



Contract liabilities

3,766

3,959

Other liabilities

1,399

303

Operating lease liabilities

6,613

3,509

TOTAL NON-CURRENT LIABILITIES

11,778

7,771

TOTAL LIABILITIES

75,914

89,791




TOTAL SHAREHOLDERS' EQUITY

787,372

554,618

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

863,286

644,409

 

 

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

(Unaudited)




Three months ended

December 31,

Year Ended

December 31,


2023

2022

2023

2022


CASH FLOWS FROM OPERATING ACTIVITIES:






Net income

55,165

37,708

197,919

161,520


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






Depreciation and amortization

122

218

623

680


Share-based compensation expenses

6,322

7,148

23,600

24,452


Allowance for doubtful accounts

355

47

1,020

449


Loss on marketable securities, net

-

22

-

71


Finance expenses (income), net

(1,581)

(2,737)

(4,714)

(1,210)


Deferred income taxes, net

(30)

(72)

(184)

84


Changes in operating assets and liabilities:






Decrease (increase) in accounts receivable

377

805

(16,084)

(10,415)


Decrease (increase) in other receivables

3,143

(1,081)

(2,224)

(1,787)


Increase in inventories

(5,106)

(4,087)

(5,198)

(18,871)


Increase (decrease) in accounts payable

1,633

2,946

(2,276)

7,463


Increase (decrease) in other liabilities

204

14,575

(12,588)

17,941


Increase (decrease) in contract liabilities

562

1,660

(3,068)

1,201


Net cash provided by operating activities

61,166

57,152

176,826

181,578


CASH FLOWS FROM INVESTING ACTIVITIES:






Investment in short-term deposits

(67,101)

-

(233,241)

(93,701)


Proceeds from short-term deposits

-

-

85,090

73,090


Purchase of fixed assets

(21)

(328)

(705)

(1,575)


Other investments

(100)

-

(100)

-


Purchase of marketable securities

(52,527)

(70,944)

(245,337)

(168,680)


Proceeds from sale of marketable securities

5,000

-

5,000

2,303


Proceeds from maturity of marketable securities

63,159

32,997

253,229

79,089


Net cash used in investing activities

(51,590)

(38,275)

(136,064)

(109,474)


CASH FLOWS FROM FINANCING ACTIVITIES:






Repurchase of ordinary shares

-

-

-

(42,637)


     Exercise of options

275

637

5,504

1,552


Net cash provided by (used in) financing activities

275

637

5,504

(41,085)


EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS

827

978

605

(1,615)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

10,678

20,492

46,871

29,404


CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

133,733

77,048

97,540

68,136


CASH AND CASH EQUIVALENTS AT END OF PERIOD

144,411

97,540

144,411

97,540


 

 

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

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

(Unaudited)



Three months ended

December 31,

Year ended

December 31,

2023

2022

2023

2022

Revenues by Category:


















Capital Equipment revenues - United States

69,253

55 %

80,352

60 %

260,801

53 %

260,992

58 %

Capital Equipment revenues - International

37,004

29 %

36,094

27 %

151,288

31 %

133,220

29 %

Total Capital Equipment revenues

106,257

84 %

116,446

87 %

412,089

84 %

394,212

87 %

Consumables and service revenues

20,524

16 %

17,125

13 %

79,959

16 %

60,059

13 %

Total Net Revenue

126,781

100 %

133,571

100 %

492,048

100 %

454,271

100 %

 

 


Three months ended December 31,

Year ended December 31,

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

84

80

83

86

76

83

86

77

83

85

74

81

Hands-Free

12

4

9

11

4

9

11

5

8

12

6

10

Non-Invasive

4

16

8

3

20

8

3

18

9

3

20

9


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 December 31, 2023

Three months ended December 31, 2022

GAAP

Share Based Compensation

Non-GAAP

GAAP

Share Based Compensation

Undistributed Exempt Income

Non-GAAP

REVENUES

126,781

-

126,781

133,571

-

-

133,571

COST OF REVENUES

20,264

(573)

19,691

21,002

(553)

-

20,449

GROSS PROFIT

106,517

573

107,090

112,569

553


113,122

OPERATING EXPENSES:








Research and development

3,473

(665)

2,808

3,261

(918)

-

2,343

Sales and marketing

49,451

(4,611)

44,840

47,012

(5,069)

-

41,943

General and administrative

2,349

(473)

1,876

2,398

(608)

-

1,790

TOTAL OPERATING
EXPENSES

55,273

(5,749)

49,524

52,671

(6,595)

-

46,076

INCOME FROM OPERATIONS

51,244

6,322

57,566

59,898

7,148


67,046

Finance income, net

 

8,920

-

8,920

3,962

-

-

3,962

INCOME BEFORE TAXES

60,164

6,322

66,486

63,860

7,148


71,008

INCOME TAXES

4,999

-

4,999

26,152

-

(21,514)

4,638

NET INCOME

55,165

6,322

61,487

37,708

7,148

21,514

66,370









NET INCOME PER SHARE:








Basic

0.66


0.73

0.46



0.80

Diluted

0.64


0.71

0.44



0.78

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








Basic

83,862


83,862

82,449



82,449

Diluted

85,835


86,196

85,288



85,515

 

 

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)



Year Ended December 31, 2023

Year Ended December 31, 2022


GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Undistributed Exempt Income

Non-GAAP

REVENUES

492,048

-

492,048

454,271

-

-

454,271

COST OF REVENUES

80,708

(2,046)

78,662

73,485

(1,917)

-

71,568

GROSS PROFIT

411,340

2,046

413,386

380,786

1,917

-

382,703

OPERATING EXPENSES:








Research and development

13,410

(2,652)

10,758

12,425

(3,166)

-

9,259

Sales and marketing

193,042

(17,167)

175,875

160,576

(17,302)

-

143,274

General and administrative

9,228

(1,735)

7,493

9,931

(2,067)

-

7,864

TOTAL OPERATING
EXPENSES

215,680

(21,554)

194,126

182,932

(22,535)

-

160,397

INCOME FROM OPERATIONS

195,660

23,600

219,260

197,854

24,452

-

222,306

Finance income, net

21,607

-

21,607

3,612

-

-

3,612

INCOME BEFORE TAXES

217,267

23,600

240,867

201,466

24,452

-

225,918

INCOME TAXES (TAX BENEFIT)

19,348

-

19,348

39,946

-

(21,514)

18,432

NET INCOME

197,919

23,600

221,519

161,520

24,452

21,514

207,486









NET INCOME PER
SHARE:








Basic

2.37


2.65

1.96



2.52

Diluted

2.30


2.57

1.89



2.42

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








Basic

83,534


83,534

82,482



82,482

Diluted

85,954


86,177

85,404



85,628











 

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