InMode (INMD) Jefferies London Healthcare Conference 2024 summary

Company evolution and technology

• Developed minimally invasive body and face reshaping using bipolar radiofrequency, moving procedures from hospitals to clinics.

• First FDA approval for BodyTite and FaceTite in 2016, enabling fat removal and skin tightening with minimal incisions.

• Expanded technology to include fractional and non-invasive RF, as well as laser and IPL devices for a comprehensive aesthetic offering.

• Entered women's health with Empower platform, targeting wellness gynecology such as urinary incontinence and overactive bladder.

• Exploring further applications in ophthalmology and ENT, with global sales in 90 countries and 10 subsidiaries.

Macroeconomic and geopolitical impacts

• Faced significant challenges in late 2023 and 2024 due to U.S. market slowdown, high interest rates, and the Israel conflict.

• 2024 revenue expected to be about 20% lower than 2023, but profitability and R&D investment maintained.

• Interest rate hikes led to reduced capital equipment purchases, especially in the U.S., with similar trends in Europe, Latin America, and Asia.

• No recovery seen in Q4 2024; stabilization expected, with hopes for improvement in 2025 as interest rates trend lower.

Operational resilience and supply chain

• Early 2024 saw severe supply chain disruptions due to war, with factories shut and staff conscripted, but production stabilized by Q3.

• Agreement with Israeli government limits reserve duty to 20% of staff, enabling fulfillment of $30 million in back orders.

• Maintains high inventory of key components to safeguard against further disruptions.

• Travel and logistics remain challenging due to regional conflict, but operations continue globally.