Le Lézard
Classified in: Health, Science and technology, Business, Covid-19 virus
Subjects: ERN, ERP

InMode Reports Second Quarter 2022 Financial Results; Record Quarterly Revenue of $113.5M, Represents 30% Year-Over-Year Growth


YOKNEAM, Israel, July 28, 2022 /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, 2022.

InMode Ltd. Logo

Second Quarter 2022 Highlights:

  • Record quarterly revenues of $113.5 million, an increase of 30% compared to the second quarter of 2021: InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 80% of quarterly revenues, while 11% came from InMode's hands-free platforms and 9% from InMode's traditional laser and non-invasive RF platforms.
  • GAAP net income of $44.0 million, compared to $40.9 million in the second quarter of 2021; *non-GAAP net income of $50.4 million, compared to $43.9 million in the second quarter of 2021.
  • GAAP diluted earnings per share(1) of $0.52, compared to $0.48 in the second quarter of 2021; *non-GAAP diluted earnings per share(1) of $0.59, compared to $0.51 in the second quarter of 2021.
  • Record quarterly revenues from consumables and service of $15.0 million, an increase of 59% compared to the second quarter of 2021.
  • Total cash position of $443.6 million as of June 30, 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)


Q2 2022

Q2 2021

Revenues

$113,547

$87,325

Gross Margins

83 %

85 %

Net Income

$44,048

$40,925

Earnings per Diluted Share(1)

$0.52

$0.48

*Non-GAAP Results

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


        Q2 2022

Q2 2021

Gross Margins

84 %

86 %

Net Income

$50,401

$43,873

Earnings per Diluted Share(1)

$0.59

$0.51

 

*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 financial 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

"We are pleased to report another record-setting quarter, with growth and solid profitability across all key metrics," said Moshe Mizrahy, Chairman and Chief Executive Officer of InMode. "The growing demand for InMode platforms in the U.S. and globally led us to increase our guidance for the full year of 2022 to an unprecedented range of $425 million to $435 million."

Shakil Lakhani, President of InMode North America, said, "Once again, we saw a robust demand for InMode's innovative platforms, resulting in another record revenue quarter as well as record sales from consumables and service."

"We recently received the endorsement of Health Canada for our EmpowerRF platform designed for women's health," added Dr. Spero Theodorou, Chief Medical Officer. "In addition to this certification, we continue to receive positive feedback from both patients and physicians in the U.S."

Second Quarter 2022 Financial Results

Total revenues for the second quarter of 2022 reached $113.5 million, an increase of 30% compared to the second quarter of 2021.

"We are proud to deliver record revenue in the second quarter," said Yair Malca, Chief Financial Officer. "Despite the global supply chain constraints, InMode was able to successfully manage and control expenses while improving our margins compared to the previous quarter."

GAAP gross margin for the second quarter of 2022 was 83%, compared to a gross margin of 85% in the second quarter of 2021. *Non-GAAP gross margin for the second quarter of 2022 was 84% and 86% for the second quarter of 2021. This decrease was primarily due to the inflationary pressure on our raw materials and increased level of consumable sales as part of the revenue mix.

GAAP operating margin for the second quarter of 2022 was 43%, compared to a gross operating margin of 48% in the second quarter of 2021. *Non-GAAP operating margin for the second quarter of 2022 was 49% compared to the operating margin of 51% in the second quarter of 2021. The decrease in GAAP operating margin is primarily attributable to change in share-based compensation expense, and the decrease in *non-GAAP operating margin is primarily attributable to change in gross margin.

InMode reported GAAP net income of $44.0 million, or $0.52 per diluted share, in the second quarter of 2022, compared to $40.9 million, or $0.48 per diluted share(1), in the second quarter of 2021. On a *non-GAAP basis, InMode reported net income of $50.4 million, or $0.59 per diluted share, in the second quarter of 2022, compared to $43.9 million, or $0.51 per diluted share(1), in the second quarter of 2021.

(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:

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 financial 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 28, 2022, at 8:30 a.m. Eastern Time to discuss the second quarter 2022 financial results.

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

https://dpregister.com/sreg/10167933/f33d3a2e75

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://event.choruscall.com/mediaframe/webcast.html?webcastid=CU9qrvpT

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 28, 2022, at 12 p.m. Eastern Time to August 11, 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: 7761650

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: [email protected]

Investor Relations Contact:

Miri Segal

MS-IR LLC

Phone: (917) 607-8654

Email: [email protected]

 

 

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,


2022

2021

2022

2021


REVENUES

113,547

87,325

199,468

152,849


COST OF REVENUES

18,946

12,723

33,718

22,802


GROSS PROFIT

94,601

74,602

165,750

130,047


OPERATING EXPENSES:






Research and development

3,183

2,455

5,998

4,756


Sales and marketing

39,653

28,670

70,502

53,232


General and administrative

2,562

1,941

5,039

3,752


TOTAL OPERATING EXPENSES

45,398

33,066

81,539

61,740


INCOME FROM OPERATIONS

49,203

41,536

84,211

68,307


Finance income (expense), net

(918)

428

(539)

472


INCOME BEFORE TAXES

48,285

41,964

83,672

68,779


INCOME TAXES

4,237

1,039

8,649

1,108


NET INCOME

44,048

40,925

75,023

67,671


Add: Net income attributable to non-controlling interests

-

-

-

(103)


NET INCOME ATTRIBUTABLE TO INMODE LTD.

44,048

40,925

75,023

67,568








NET INCOME PER SHARE (1):






Basic

0.54

0.50

0.91

0.85


Diluted

0.52

0.48

0.88

0.79


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
USED IN COMPUTATION OF NET INCOME PER SHARE
(in thousands)
(1)






Basic

82,216

81,700

82,590

79,894


Diluted

84,663

85,762

85,236

85,451


 

(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)



June 30,

2022

December 31,

2021

Assets



CURRENT ASSETS:



Cash and cash equivalents

88,404

68,136

Marketable securities

299,322

294,530

Short-term bank deposits

55,913

53,248

Accounts receivable, net of allowance for doubtful accounts

21,261

20,236

Other receivables

14,548

12,938

Inventories

29,760

21,026

TOTAL CURRENT ASSETS

509,208

470,114

NON-CURRENT ASSETS:



Accounts receivable

3,685

768

Deferred income taxes, net

2,737

1,334

Operating lease right-of-use assets

5,004

4,321

Property and equipment, net

1,971

1,404

Other investments

600

600

TOTAL NON-CURRENT ASSETS

13,997

8,427

TOTAL ASSETS

523,205

478,541




Liabilities and shareholders' equity



CURRENT LIABILITIES:



Accounts payable

11,833

8,779

Contract liabilities

18,102

13,805

Other liabilities

28,054

29,266

TOTAL CURRENT LIABILITIES

57,989

51,850

NON-CURRENT LIABILITIES:



Contract liabilities

3,385

2,751

Other liabilities

5,339

4,831

Operating lease liabilities

3,678

3,307

TOTAL NON-CURRENT LIABILITIES

12,402

10,889

TOTAL LIABILITIES

70,391

62,739




TOTAL SHAREHOLDERS' EQUITY

452,814

415,802

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

523,205

478,541

 

 

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

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

(Unaudited)




Three months ended
J
une 30,

Six months ended
J
une 30,


2022

2021

2022

2021


CASH FLOWS FROM OPERATING ACTIVITIES:






Net income

44,048

40,925

75,023

67,671


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






Depreciation and amortization

155

128

293

242


Share-based compensation expenses

6,353

2,948

9,447

5,646


Allowance for doubtful accounts

142

287

352

327


Loss on marketable securities, net

23

3

37

7


Finance expenses, net

851

404

941

809


Deferred income taxes, net

169

(101)

147

(202)


Changes in operating assets and liabilities:






Increase in accounts receivable

(8,247)

(3,506)

(4,294)

(8,075)


Decrease (increase) in other receivables

(398)

1,063

(1,593)

(317)


Increase in inventories

(4,660)

(1,694)

(8,734)

(2,411)


Increase in accounts payable

2,292

313

3,054

1,313


Increase (decrease) in other liabilities

4,105

5,832

(770)

5,037


Increase in contract liabilities

2,148

151

4,931

1,472


Net cash provided by operating activities

46,981

46,753

78,834

71,519


CASH FLOWS FROM INVESTING ACTIVITIES:






Investment in short-term deposits

(22,500)

(20,000)

(45,611)

(41,000)


Proceeds from short-term deposits

23,000

19,090

43,000

38,090


Purchase of fixed assets

(561)

(338)

(860)

(503)


Purchase of marketable securities

(17,545)

(63,482)

(38,754)

(125,727)


Proceeds from sale of marketable securities

15,232

21,180

27,159

47,982


Net cash used in investing activities

(2,374)

(43,550)

(15,066)

(81,158)


CASH FLOWS FROM FINANCING ACTIVITIES:






Repurchase of ordinary shares

-

(11,057)

(42,637)

(11,921)


Exercise of options

204

4,711

365

14,603


Net cash provided by (used in) financing activities

204

(6,346)

(42,272)

2,682


EFFECT OF EXCHANGE RATE CHANGES ON CASH

(1,077)

14

(1,228)

(209)


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

43,734

(3,129)

20,268

(7,166)








CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD

44,670

64,901

68,136

68,938


CASH AND CASH EQUIVALENTS AT END OF PERIOD

88,404

61,772

88,404

61,772


 

 

 

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,



2022

2021

2022

2021


Revenues by Category:




















Capital Equipment revenues - United States

62,960

56 %

49,812

57 %

107,720

54 %

88,330

58 %


Capital Equipment revenues - International

35,560

31 %

28,034

32 %

62,743

31 %

47,247

31 %


Total Capital Equipment revenues

98,520

87 %

77,846

89 %

170,463

85 %

135,577

89 %


Consumables and service revenues

15,027

13 %

9,479

11 %

29,005

15 %

17,272

11 %


Total Net Revenue

113,547

100 %

87,325

100 %

199,468

100 %

152,849

100 %















 

 


Three months ended June 30,

Six months ended June 30,

2022

2021

2022

2021


%

%

%

%


United States

International

Total

United States

International

Total

United States

International

Total

United States

International

Total

Revenues by Technology:













Minimal-Invasive

84

74

80

69

73

71

84

72

79

67

75

70

Hands-Free

14

5

11

29

10

22

13

6

11

31

8

23

Non-Invasive

2

21

9

2

17

7

3

22

10

2

17

7


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, 2022

Three months ended June 30, 2021

GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Non-GAAP


REVENUES

113,547

-

113,547

87,325

-

87,325


COST OF REVENUES

18,946

(496)

18,450

12,723

 

(274)

 

12,449


GROSS PROFIT

94,601

496

95,097

74,602

274

74,876


OPERATING EXPENSES:








Research and development

3,183

(866)

2,317

2,455

(386)

2,069


Sales and marketing

39,653

(4,459)

35,194

28,670

(2,014)

26,656


General and administrative

2,562

(532)

2,030

1,941

 

(274)

 

1,667


TOTAL OPERATING
EXPENSES

45,398

 

(5,857)

39,541

 

33,066

 

(2,674)

 

30,392


INCOME FROM OPERATIONS

49,203

6,353

55,556

41,536

2,948

44,484


Finance income (expense), net

(918)

 

-

(918)

428

-

428


INCOME BEFORE TAXES

48,285

6,353

54,638

41,964

2,948

44,912


INCOME TAXES

4,237

-

4,237

1,039

 

-

 

1,039


NET INCOME

44,048

6,353

50,401

40,925

2,948

43,873










NET INCOME PER
SHARE
(1):








Basic

0.54


0.61

0.50


0.54


Diluted

0.52


0.59

0.48


0.51


WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN
COMPUTATION OF NET INCOME PER SHARE (in thousands)
(1)








Basic

82,216


82,216

81,700


81,700


Diluted

84,663


85,366

85,762


 

86,160


 

 

(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.

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, 2022

Six months ended June 30, 2021

GAAP

Share Based
Compensation

Non-GAAP

GAAP

Share Based
Compensation

Non-GAAP

REVENUES

199,468

-

199,468

152,849

-

152,849

COST OF REVENUES

33,718

(810)

32,908

 

22,802

 

(503)

 

22,299

GROSS PROFIT

165,750

810

166,560

130,047

503

130,550

OPERATING EXPENSES:







Research and development

5,998

(1,391)

4,607

4,756

(687)

4,069

Sales and marketing

70,502

(6,354)

64,148

53,232

(3,946)

49,286

General and administrative

5,039

(892)

4,147

3,752

(510)

3,242

TOTAL OPERATING EXPENSES

81,539

(8,637)

 

72,902

 

61,740

 

(5,143)

 

56,597

INCOME FROM OPERATIONS

84,211

9,447

 

93,658

68,307

5,646

73,953

Finance income (expense), net

(539)

-

(539)

472

-

472

INCOME BEFORE TAXES

83,672

9,447

93,119

68,779

5,646

74,425

INCOME TAXES

8,649

-

8,649

 

1,108

 

-

 

1,108

NET INCOME

75,023

9,447

84,470

67,671

5,646

73,317

Add: Net Income attributable to non-controlling interests

-

-

-

 

(103)

 

-

 

(103)

NET INCOME ATTRIBUTABLE TO INMODE LTD.

75,023

9,447

84,470

67,568

5,646

73,214








NET INCOME PER SHARE:







Basic

0.91


1.02

0.85


0.92

Diluted

0.88


0.98

0.79


0.85

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







Basic

82,590


82,590

79,894


79,894

Diluted

85,236


85,786

85,451


85,803

 

 

(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.

 

 

SOURCE InMode Ltd.


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