InMode (INMD) Q3 2024 earnings summary

Executive summary

• Q3 2024 results were impacted by macroeconomic headwinds, leading to decreased minimally invasive treatments and a slowdown in platform and consumables sales, prompting a downward revision of full-year guidance.

• Early adoption of new platforms IgniteRF and Optimas Max is promising, with optimism for improved sales as macroeconomic conditions ease.

• Management restructuring occurred in the U.S., U.K., Spain, and France to better align with market needs, and North America was segmented into U.S. and Canada roles.

• Production challenges due to the war in Israel were managed by employee dedication and longer shifts.

• The company serves over 26,000 installed units in 97 countries, with a broad RF-based portfolio and a history of profitable growth.

Financial highlights

• Q3 2024 total revenue was $130.2 million, including $31.9 million from pre-orders; net sales for the quarter were $98.3 million.

• Non-GAAP net income was $55 million and non-GAAP diluted EPS was $0.70.

• GAAP and non-GAAP gross margins were 82% and 81.9% respectively in Q3.

• International sales were $36.4 million, 28% of total, down 19% year-over-year.

• Installed base includes 11,480 units in the US and 26,070 units worldwide.

Outlook and guidance

• Full-year 2024 revenue guidance revised to $410–420 million from $430–440 million.

• Non-GAAP gross margin guidance lowered to 81%–82% from 82%–84%.

• Non-GAAP income from operations expected at $140–145 million, down from $150–155 million.

• Non-GAAP EPS guidance unchanged at $1.92–1.96.