InMode Reports First Quarter 2022 Financial Results:
InMode Ltd. (NASDAQ: INMD) reported Q1 2022 revenues of $85.9 million, a 31% year-over-year increase. GAAP net income was $31 million, reflecting a 16% rise from the prior year, achieving GAAP diluted EPS of $0.36. The company noted record consumable revenues of $14 million, up 79% year-over-year. Despite facing global supply chain challenges affecting gross margins, management reiterated a full-year revenue guidance of $415-$425 million and robust long-term gross margin targets of 84%-86%.
- Q1 2022 revenue of $85.9 million, a 31% increase year-over-year.
- Record consumables revenue of $14 million, up 79% year-over-year.
- GAAP diluted earnings per share of $0.36, an increase from $0.31 in Q1 2021.
- Reiterated full-year revenue guidance of $415-$425 million.
- Gross margin decreased to 83% from 85% year-over-year due to supply chain issues.
- Operating margin decreased from 45% (non-GAAP) in Q1 2021 to 44% in Q1 2022.
Quarterly Revenue of
YOKNEAM, Israel, May 2, 2022 /PRNewswire/ -- InMode Ltd. (NASDAQ: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the first quarter ended March 31, 2022.
First Quarter 2022 Highlights:
- Record first quarter revenues of
$85.9 million , an increase of31% compared to the first quarter of 2021: InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented80% of quarterly revenues, while10% came from InMode's hands-free platforms and10% from InMode's traditional laser and non-invasive RF platforms - GAAP net income of
$31 million , compared to$26.6 million in the first quarter of 2021; *non-GAAP net income of$34.1 million , compared to$29.3 million in the first quarter of 2021 - GAAP diluted earnings per share(1) of
$0.36 , compared to$0.31 in the first quarter of 2021; *non-GAAP diluted earnings per share(1) of$0.40 , compared to$0.34 in the first quarter of 2021 - Record quarterly revenues from consumables and service of
$14.0 million , an increase of79% compared to the first quarter of 2021 - Total cash position of
$399.5 million as of March 31, 2022, 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) | ||
Q1 2022 | Q1 2021 | |
Revenues | ||
Gross Margins | ||
Net Income Attributable to InMode Ltd. | ||
Earnings per Diluted Share(1) | ||
*Non-GAAP Results (U.S. dollars in thousands, except for per share data) | ||
Q1 2022 | Q1 2021 | |
Gross Margins | ||
Net Income Attributable to InMode Ltd. | ||
Earnings per Diluted Share(1) | ||
*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.
(1) The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.
Management Comments
"2022 started off strongly despite the uncertainty in the global markets," said Moshe Mizrahy, Chairman and Chief Executive Officer of InMode. "Operational challenges due to global supply chain issues and shipment price increases had an impact on our gross margins. However, we were successful in mitigating the impact of these challenges and were able to meet the growing demand and ensure each platform was delivered within 10 days. We estimate that supply chain challenges will continue, but we are monitoring it closely and proactively managing the process. We are reiterating our 2022 guidance and will continue to update as the year progresses."
"Despite all of the challenges that we faced in Q1, we continued to develop new features for our existing aesthetic platforms, create new ones and continue to allocate R&D resources in all of our new categories such as women's health, ENT and ED," commented Dr. Michael Kreindel, InMode's Chief Technology Officer, and Co-Founder.
Shakil Lakhani, President of InMode North America, said, "We reported record numbers for consumable sales, a strong indication of the growing utilization rate and demand for our platforms. Additionally, we've seen increased interest from medical professionals, as in-person events returned to pre-Covid levels, and we managed to attract larger audiences. We are optimistic about the overall demand for our products and anticipate that the North American business will continue to grow and be the main revenue contributor for InMode. We have and will continue to strategically hire sales representatives in different geographies to help us achieve our goals."
"As we expand our presence into the women's health market with our innovative EmpowerRF platform, we continue to receive positive feedback that drives InMode's credibility and supports our expansion as we hope to become the leader in this market," added Dr. Spero Theodorou, Chief Medical Officer of InMode.
First Quarter 2022 Financial Results
Total revenues for the first quarter of 2022 reached
"We continued to see increased demand for our consumables in the first quarter, with particular strength in the U.S.," said Yair Malca, Chief Financial Officer. "Additionally, we expanded in international markets, where revenues outside the U.S. grew
"Revenue growth from consumables and services grew
Revenues outside the U.S. represented
GAAP gross margin for the first quarter of 2022 was
GAAP operating margin for the first quarter of 2022 and 2021 was
InMode reported GAAP net income attributable to InMode Ltd. of
(1) The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September. 14, 2021.
2022 Financial Outlook
Management provided an outlook for the full year of 2022, ending Dec. 31, 2022. Based on current estimates, management expects:
- Revenues between
$415 million and$425 million - *Non-GAAP gross margin between
84% and86% - *Non-GAAP income from operations between
$199 million and$204 million - *Non-GAAP earnings per diluted share between
$2.06 and$2.11
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, May 2, 2022, at 8:30 a.m. Eastern Time to discuss the first quarter 2022 financial results.
The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10164856/f208c6bfa8
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 that 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://services.choruscall.com/mediaframe/webcast.html?webcastid=f0uVBy8O
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 May 2, 2022, at 12 p.m. Eastern Time to May 16, 2022, 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: 4639678
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 "2021 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 10, 2022, 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 | ||
2022 | 2021 | |
REVENUES | 85,921 | 65,524 |
COST OF REVENUES | 14,772 | 10,079 |
GROSS PROFIT | 71,149 | 55,445 |
OPERATING EXPENSES: | ||
Research and development | 2,815 | 2,301 |
Sales and marketing | 30,849 | 24,562 |
General and administrative | 2,477 | 1,811 |
TOTAL OPERATING EXPENSES | 36,141 | 28,674 |
INCOME FROM OPERATIONS | 35,008 | 26,771 |
Finance income, net | 379 | 44 |
INCOME BEFORE TAXES | 35,387 | 26,815 |
INCOME TAXES | 4,412 | 69 |
NET INCOME | 30,975 | 26,746 |
Add: Net income attributable to non-controlling interests | - | (103) |
NET INCOME ATTRIBUTABLE TO INMODE LTD. | 30,975 | 26,643 |
NET INCOME PER SHARE (1): | ||
Basic | 0.37 | 0.34 |
Diluted | 0.36 | 0.31 |
WEIGHTED AVERAGE NUMBER OF SHARES | ||
Basic | 82,973 | 78,058 |
Diluted | 85,696 | 85,034 |
(1) The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.
INMODE LTD. | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(U.S. dollars in thousands, except for per share data) | ||
(Unaudited) | ||
March 31, 2022 | December 31, 2021 | |
Assets | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 44,670 | 68,136 |
Marketable securities | 298,400 | 294,530 |
Short-term bank deposits | 56,392 | 53,248 |
Accounts receivable, net of allowance for doubtful accounts | 16,104 | 20,236 |
Other receivables | 14,182 | 12,938 |
Inventories | 25,100 | 21,026 |
TOTAL CURRENT ASSETS | 454,848 | 470,114 |
NON-CURRENT ASSETS: | ||
Accounts receivable | 737 | 768 |
Deferred income taxes, net | 2,586 | 1,334 |
Operating lease right-of-use assets | 4,130 | 4,321 |
Property and equipment, net | 1,565 | 1,404 |
Other investments | 600 | 600 |
TOTAL NON-CURRENT ASSETS | 9,618 | 8,427 |
TOTAL ASSETS | 464,466 | 478,541 |
Liabilities and shareholders' equity | ||
CURRENT LIABILITIES: | ||
Accounts payable | 9,541 | 8,779 |
Contract liabilities | 16,330 | 13,805 |
Other liabilities | 23,947 | 29,266 |
TOTAL CURRENT LIABILITIES | 49,818 | 51,850 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities | 3,009 | 2,751 |
Other liabilities | 5,242 | 4,831 |
Operating lease liabilities | 3,079 | 3,307 |
TOTAL NON-CURRENT LIABILITIES | 11,330 | 10,889 |
TOTAL LIABILITIES | 61,148 | 62,739 |
TOTAL SHAREHOLDERS' EQUITY | 403,318 | 415,802 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 464,466 | 478,541 |
INMODE LTD. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(U.S. dollars in thousands, except for per share data) | |||
(Unaudited) | |||
Three months ended | |||
2022 | 2021 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | 30,975 | 26,746 | |
Adjustments required to reconcile net income to net cash provided by | |||
Depreciation and amortization | 138 | 114 | |
Share-based compensation expenses | 3,094 | 2,698 | |
Allowance for doubtful accounts | 210 | 40 | |
Loss on marketable securities, net | 14 | 4 | |
Finance expenses, net | 90 | 405 | |
Deferred income taxes, net | (22) | (101) | |
Changes in operating assets and liabilities: | |||
Decrease (increase) in accounts receivable | 3,953 | (4,569) | |
Increase in other receivables | (1,195) | (1,380) | |
Increase in inventories | (4,074) | (717) | |
Increase in accounts payable | 762 | 1,000 | |
Decrease in other liabilities | (4,875) | (795) | |
Increase in contract liabilities | 2,783 | 1,321 | |
Net cash provided by operating activities | 31,853 | 24,766 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Investment in short-term deposits | (23,111) | (21,000) | |
Proceeds from short-term deposits | 20,000 | 19,000 | |
Purchase of fixed assets | (299) | (165) | |
Purchase of marketable securities | (21,209) | (62,245) | |
Proceeds from sale of marketable securities | 11,927 | 26,802 | |
Net cash (used in) investing activities | (12,692) | (37,608) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repurchase of ordinary shares | (42,637) | (864) | |
Exercise of options | 161 | 9,892 | |
Net cash provided by (used in) financing activities | (42,476) | 9,028 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (151) | (223) | |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (23,466) | (4,037) | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 68,136 | 68,938 | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 44,670 | 64,901 | |
INMODE LTD. | ||||
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||
(U.S. dollars in thousands, except for per share data) | ||||
(Unaudited) | ||||
Three months ended March 31, | ||||
2022 | 2021 | |||
Revenues by Geography: | ||||
United States | 53,606 | 44,065 | ||
International | 32,315 | 21,459 | ||
Total Net Revenue | 85,921 | 65,524 | ||
Three months ended March 31, | ||||
2022 | 2021 | |||
Revenues by Category: | ||||
Capital equipment revenues | 71,943 | 57,731 | ||
Consumables and service revenues | 13,978 | 7,793 | ||
Total Net Revenue | 85,921 | 65,524 | ||
Three months ended March 31, | ||||||
2022 | 2021 | |||||
% | % | |||||
United States | International | Total | United States | International | Total | |
Revenues by Technology: | ||||||
Minimally Invasive | 84 | 71 | 80 | 65 | 77 | 69 |
Hands-Free | 13 | 6 | 10 | 33 | 6 | 24 |
Non-Invasive | 3 | 23 | 10 | 2 | 17 | 7 |
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 March 31, 2022 | Three months ended March 31, 2021 | ||||||
GAAP | Share Based | Non-GAAP | GAAP | Share Based | Non-GAAP | ||
REVENUES | 85,921 | - | 85,921 | 65,524 | - | 65,524 | |
COST OF REVENUES | 14,772 | (314) | 14,458 | 10,079 | (229) | 9,850 | |
GROSS PROFIT | 71,149 | 314 | 71,463 | 55,445 | 229 | 55,674 | |
OPERATING EXPENSES: | |||||||
Research and development | 2,815 | (525) | 2,290 | 2,301 | (301) | 2,000 | |
Sales and marketing | 30,849 | (1,895) | 28,954 | 24,562 | (1,932) | 22,630 | |
General and administrative | 2,477 | (360) | 2,117 | 1,811 | (236) | 1,575 | |
TOTAL OPERATING EXPENSES | 36,141 | (2,780) | 33,361 | 28,674 | (2,469) | 26,205 | |
INCOME FROM OPERATIONS | 35,008 | 3,094 | 38,102 | 26,771 | 2,698 | 29,469 | |
Finance income, net | 379 | - | 379 | 44 | - | 44 | |
INCOME BEFORE TAXES | 35,387 | 3,094 | 38,481 | 26,815 | 2,698 | 29,513 | |
INCOME TAXES | 4,412 | - | 4,412 | 69 | - | 69 | |
NET INCOME | 30,975 | 3,094 | 34,069 | 26,746 | 2,698 | 29,444 | |
Add: Net income attributable to non-controlling interests | - | - | - | (103) | - | (103) | |
NET INCOME ATTRIBUTABLE TO INMODE LTD. | 30,975 | 3,094 | 34,069 | 26,643 | 2,698 | 29,341 | |
NET INCOME PER SHARE (1): | |||||||
Basic | 0.37 | 0.41 | 0.34 | 0.38 | |||
Diluted | 0.36 | 0.40 | 0.31 | 0.34 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | |||||||
Basic | 82,973 | 82,973 | 78,058 | 78,058 | |||
Diluted | 85,696 | 86,132 | 85,034 | 85,415 | |||
(1) The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.
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SOURCE InMode
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