InMode (INMD) Baird's 2024 Global Healthcare Conference summary

Share repurchase and capital allocation

• Announced a new $100 million share repurchase program for 2024, following a prior buyback technically classified as a 2023 plan.

• Israeli tax law allows up to 10% share repurchase annually without dividend tax implications; exceeding this may trigger a 15% tax for shareholders.

• Considering acquisitions and dividends as alternative uses of cash, with M&A prioritized for shareholder value.

• Some investors suggest a dividend could improve valuation multiples.

Market trends and demand outlook

• Q2 saw the first overall decline in disposable sales, indicating softer demand for aesthetic procedures, especially in North America.

• Economic uncertainty and lower consumer confidence are causing patients and doctors to be more cautious with spending and capital equipment purchases.

• International markets show growth potential due to lower penetration and expansion into new countries, with direct sales strategies in Germany and Japan.

• Only half the product portfolio is approved in China, with ongoing efforts to expand approvals and direct presence.

Product portfolio, upgrades, and innovation

• Recent launches of next-generation platforms (OptimasMAX, IgniteRF) mark the first major upgrade cycle since 2017.

• Limited inventory in 2024 prioritized for new customers; upgrade promotions expected in 2025 as supply normalizes.

• Older systems may be repurposed for markets lacking regulatory approval for new devices.

• Newer devices feature higher-priced consumables, supporting both volume and price-driven growth in recurring revenue.