Inmode (INMD) 1 Aug 24 2024 Q2 Earnings call transcript
InMode, a leading developer and manufacturer of minimally invasive aesthetic systems, recently unveiled its financial results for the second quarter of 2024. The earnings call, led by CEO Moshe Mizrahy and CFO Yair Malca, provided insights into the company's strategic direction, financial performance, and outlook for the future.
Innovation at the Forefront
InMode's second quarter was marked by the launch of two advanced platforms, IgniteRF and Optimus Max, which have already started deliveries. These platforms, equipped with advanced technologies and handpieces, are expected to contribute significantly to the company's growth in the coming year. IgniteRF, the next generation of minimally invasive RF technology, boasts a new Morpheus8 burst handpiece and the all-new QuantumRF, a static surgical procedure in a box. The QuantumRF handpiece, recently cleared by the FDA, is a game-changer in aesthetic treatment, offering physicians the ability to adjust depth and power for more effective treatment in less time.
Navigating Challenges
Despite the challenges posed by the macroeconomic trend, InMode maintained its commitment to timely deliveries and customer satisfaction. The company's Israeli team worked longer shifts to ensure this, demonstrating their dedication and hard work in maintaining the company's market leadership. The FDA's recent clearance of Morpheus8 for contraction soft tissue has expanded the company's patient base and solidified its position as a market leader.
Financial Performance and Outlook
InMode reported $86.4 million in total revenue for the second quarter of 2024, with pro forma revenue standing at $102.6 million. GAAP gross margin was 80%, while non-GAAP gross margin was 81%. The company's minimally invasive technology platforms accounted for 87% of total revenues. International sales outside the U.S. accounted for 47% of total sales, with Europe being the largest contributor. However, there was a 17% decrease in Q2 sales compared to the same period last year.
Looking Ahead
The future looks promising for InMode, with plans to expand into telemedicine services and continue investing in R&D to provide medical professionals with the latest advancements. The company's financial guidance for 2024 is set at $430 million to $440 million in revenue, with non-GAAP gross margin between 82% and 84%.
Investor Insights
During the earnings call, analysts Danielle Antalffy and Caitlin Cronin asked insightful questions about the company's growth prospects and product strategy. Moshe Mizrahy provided a candid response, addressing concerns about market trends and the company's ability to navigate challenges.
Conclusion
InMode's second quarter earnings call underscores the company's resilience and innovative spirit, even amidst market challenges. With a strong balance sheet, a robust product pipeline, and a commitment to customer satisfaction, InMode is poised for continued success in the aesthetic technology industry.