InMode (INMD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $86.4M, down 36.5% year-over-year, with pro forma revenue including pre-orders at $102.6M; new platforms IgniteRF and OptimasMAX launched, and FDA cleared Morpheus8 for soft tissue contraction.

• The company serves over 24,830 installed units in 97 countries, focusing on minimally-invasive RF-based solutions and addressing the treatment gap between non-invasive procedures and surgery.

• Macroeconomic headwinds, decreased U.S. demand, and longer production times for new platforms challenged Q2 performance.

• Leadership transition with Dr. Eran Krieger appointed as Medical Director and VP of Medical Affairs.

• Completed a share repurchase program, acquiring 8.37M shares for $150M.

Financial highlights

• Q2 2024 GAAP revenue: $86.4M; pro forma revenue: $102.6M; non-GAAP net income: $29M; GAAP net income: $23.8M.

• GAAP gross margin: 80%; non-GAAP: 81%; pro forma: 82%; non-GAAP gross margin for Q2 2024: 80.75%.

• GAAP operating margin: 21%; non-GAAP: 27%; pro forma: 34%.

• GAAP diluted EPS: $0.28; non-GAAP: $0.34; pro forma: $0.46.

• Ended Q2 with $729.2M in cash, marketable securities, and deposits; operating cash flow was $42.1M.

Outlook and guidance

• 2024 revenue guidance lowered to $430M–$440M from $485M–$495M; non-GAAP gross margin guidance unchanged at 82%–84%.

• Non-GAAP operating income guidance reduced to $150M–$155M (from $169M–$174M); non-GAAP EPS guidance now $1.92–$1.96 (from $2.01–$2.05).

• Management remains conservative on guidance due to Q2 shortfall and uncertain demand recovery.

• Pipeline focused on expanding minimally-invasive solutions and adapting RF technologies for new medical specialties.