InMode to Report Third Quarter 2024 Financial Results and Hold Conference Call on October 30, 2024

Rhea-AI Summary

InMode (Nasdaq: INMD) anticipates releasing its Q3 2024 financial results on October 30, 2024. Preliminary expectations include:

- Q3 revenue between $130.0-$130.1 million, including $31.9 million from H1 2024 pre-orders
- Non-GAAP gross margin of 81-82%
- Revised full-year 2024 revenue guidance to $410-$420 million, down from $430-$440 million

The company fulfilled all pre-orders for two new platforms introduced earlier this year. However, macro-economic factors continue to impact the aesthetics industry. InMode is prioritizing employee safety amid the current situation in Israel and considering relocating some production activities.

A conference call to discuss Q3 results is scheduled for October 30, 2024, at 8:30 a.m. Eastern Time.

Positive

• Q3 revenue expected to be $130.0-$130.1 million
• Non-GAAP gross margin anticipated between 81-82%
• Fulfillment of all pre-orders for new platforms introduced earlier in the year

Negative

• Decreased full-year 2024 revenue guidance from $430-$440 million to $410-$420 million
• Macro-economic factors impacting the aesthetics industry
• Potential relocation of production activities due to the situation in Israel

Insights

Financial Analyst

InMode's preliminary Q3 2024 results reveal a mixed picture. The expected revenue of $130.0-$130.1 million includes $31.9 million from deferred pre-orders, indicating potential underlying weakness in current demand. The revised full-year guidance reduction to $410-$420 million from $430-$440 million suggests ongoing challenges.

The non-GAAP gross margin of 81-82% remains strong, reflecting efficient operations. However, macro-economic factors impacting the aesthetics industry are a concern. The fulfillment of pre-orders is positive for cash flow but masks potential softness in new orders.

Investors should closely monitor Q4 performance and 2025 outlook for a clearer picture of InMode's growth trajectory. The company's proactive approach to potentially relocating production amid the situation in Israel demonstrates adaptability but may incur short-term costs.

Medical Device Industry Expert

InMode's situation reflects broader trends in the medical aesthetics market. The introduction of two new platforms earlier this year shows continued innovation, but the transition phase and pre-order fulfillment have created revenue recognition complexities.

The $31.9 million revenue recognition from pre-orders in Q3 is a one-time event that inflates the quarter's results. Stripping this out, the underlying revenue would be significantly lower, aligning with the reduced full-year guidance.

The aesthetics industry's sensitivity to economic conditions is evident in InMode's performance. As discretionary spending tightens, we may see a shift towards more essential medical devices. InMode's ability to adapt its product mix and marketing strategies will be important in navigating this changing landscape.

Expects Q3 Revenue Between $130.0 Million -$130.1 Million (including $31.9 Million in Revenue from First Half of 2024 Pre-orders), Decreases Full Year 2024 Guidance to $410 Million-$420 Million

Conference call to be held on Wednesday, October 30, 2024, at 8:30 a.m. Eastern Time

YOKNEAM, Israel, Oct. 10, 2024 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD), a leading global provider of innovative medical technologies, announced today that it expects to release its financial results for the third quarter of 2024 before the Nasdaq market opens on Wednesday, October 30, 2024.

InMode is currently finalizing its financial results for the third quarter of 2024. While complete financial information and operating data are not yet available, set forth below are certain preliminary financial results for the period, subject to final adjustments and other developments that may arise between now and the time such financial results are published.

Regarding the current situation in Israel, InMode is prioritizing the safety and well-being of its employees, sub-contractors, and all its team members, who are safe. InMode is proactively assessing the relocation of certain production activities outside of Israel.

As previously discussed at the beginning of this year, InMode introduced two new platforms to the market, resulting in a transition phase with pre-orders received during the first half of this year. Management is happy to report that, by the end of the third quarter, InMode was able to fulfil all pre-orders and become current with all deliveries of incoming orders. This resulted in recognition during the third quarter of approximately $31.9 million of revenues that were previously deferred. Additionally, management continues to see macro-economic factors impacting the aesthetics industry. Management preliminarily expects the following financial results for the third quarter of 2024:

• Revenue to be in the range of $130.0 million to $130.1 million (including $31.9 million in revenue from new platform pre-orders received in the first half of this year that were delivered and recognized as revenue in the third quarter of 2024)
• Non-GAAP¹ gross margin to be in the range of 81% to 82%
• Full year 2024 revenue to be $410 million to $420 million as compared to prior guidance of $430 million to $440 million

¹Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. Non-GAAP results exclude share-based compensation.

InMode will host a conference call to discuss the third quarter 2024 financial results on Wednesday, October 30 at 8:30 a.m. Eastern Time. Speakers from the management team include Moshe Mizrahy, Chief Executive Officer; Yair Malca, Chief Financial Officer, and Dr. Michael Kreindel, Chief Technology Officer.

InMode encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10193479/fdae439271.

Callers will receive a unique dial-in upon registration, which enables immediate access on the day of 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: 1-833-316-0562
Israel Toll-Free: 1-80-921-2373
International: 1-412-317-5736                                                                                      

Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=X3HVujVC

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://inmodeinvestors.com/events-presentations/. A replay of the conference call will be available from Oct. 30, 2024, at 12:00 p.m. Eastern Time to Nov. 13, 2024, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

Replay U.S. TOLL-FREE: 1-877-344-7529
Replay TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 5305602

A replay will also be available for 90 days on InMode's website at: https://inmodeinvestors.com/events-presentations/.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radiofrequency ("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 and its wide array of medical technologies, 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, but not limited to, the revenue projections 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 13, 2024, 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.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release includes 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 that they provide greater transparency to investors of management's 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 evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measures may not be comparable to other similarly titled measures of other companies more effectively.

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

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SOURCE InMode LTD

FAQ

What is InMode's expected Q3 2024 revenue?

InMode expects Q3 2024 revenue to be between $130.0 million and $130.1 million, including $31.9 million from first half 2024 pre-orders.

Has InMode (INMD) revised its full-year 2024 revenue guidance?

Yes, InMode has decreased its full-year 2024 revenue guidance to $410-$420 million, down from the previous guidance of $430-$440 million.

When will InMode (INMD) report its Q3 2024 financial results?

InMode plans to release its Q3 2024 financial results on Wednesday, October 30, 2024, before the Nasdaq market opens.

What is InMode's expected Non-GAAP gross margin for Q3 2024?

InMode anticipates its Non-GAAP gross margin for Q3 2024 to be in the range of 81% to 82%.