Quarterly Revenue of $85.9M, GAAP Net Income of $31M Represent 31% and 16% Year-Over-Year Growth,
Respectively
YOKNEAM, Israel,
May 2, 2022 /PRNewswire/ -- InMode
Ltd. (NASDAQ: INMD) ("InMode"), a leading global
provider of innovative medical technologies, today announced its
consolidated financial results for the first quarter ended
March 31, 2022.
First Quarter 2022 Highlights:
- Record first quarter revenues of $85.9
million, an increase of 31% compared to the first quarter of
2021: InMode's proprietary surgical technology platforms engaged in
minimally invasive and subdermal ablative treatments represented
80% of quarterly revenues, while 10% came from InMode's hands-free
platforms and 10% from InMode's traditional laser and non-invasive
RF platforms
- GAAP net income of $31 million,
compared to $26.6 million in the
first quarter of 2021; *non-GAAP net income of $34.1 million, compared to $29.3 million in the first quarter of 2021
- GAAP diluted earnings per share(1) of $0.36, compared to $0.31 in the first quarter of 2021; *non-GAAP
diluted earnings per share(1) of $0.40, compared to $0.34 in the first quarter of 2021
- Record quarterly revenues from consumables and service of
$14.0 million, an increase of 79%
compared to the first quarter of 2021
- Total cash position of $399.5
million as of March 31, 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)
|
|
Q1
2022
|
Q1
2021
|
Revenues
|
$85,921
|
$65,524
|
Gross
Margins
|
83%
|
85%
|
Net Income Attributable
to InMode Ltd.
|
$30,975
|
$26,643
|
Earnings per Diluted
Share(1)
|
$0.36
|
$0.31
|
*Non-GAAP
Results
(U.S. dollars in
thousands, except for per share data)
|
|
Q1
2022
|
Q1
2021
|
Gross
Margins
|
83%
|
85%
|
Net Income Attributable
to InMode Ltd.
|
$34,069
|
$29,341
|
Earnings per Diluted
Share(1)
|
$0.40
|
$0.34
|
*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 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
"2022 started off strongly despite the uncertainty in the global
markets," said Moshe Mizrahy,
Chairman and Chief Executive Officer of InMode. "Operational
challenges due to global supply chain issues and shipment price
increases had an impact on our gross margins. However, we were
successful in mitigating the impact of these challenges and were
able to meet the growing demand and ensure each platform was
delivered within 10 days. We estimate that supply chain challenges
will continue, but we are monitoring it closely and proactively
managing the process. We are reiterating our 2022 guidance and will
continue to update as the year progresses."
"Despite all of the challenges that we faced in Q1, we continued
to develop new features for our existing aesthetic platforms,
create new ones and continue to allocate R&D resources in all
of our new categories such as women's health, ENT and ED,"
commented Dr. Michael Kreindel,
InMode's Chief Technology Officer, and Co-Founder.
Shakil Lakhani, President
of InMode North America, said, "We reported record
numbers for consumable sales, a strong indication of the growing
utilization rate and demand for our platforms. Additionally, we've
seen increased interest from medical professionals, as
in-person events returned to pre-Covid levels, and we managed to
attract larger audiences. We are optimistic about
the overall demand for our products and anticipate that
the North American business will continue to grow and be the main
revenue contributor for InMode. We have and will continue to
strategically hire sales representatives in different geographies
to help us achieve our goals."
"As we expand our presence into the women's health market with
our innovative EmpowerRF platform, we continue to receive positive
feedback that drives InMode's credibility and supports our
expansion as we hope to become the leader in this market," added
Dr. Spero Theodorou, Chief Medical
Officer of InMode.
First Quarter 2022 Financial Results
Total revenues for the first quarter of 2022 reached
$85.9 million, an increase of 31%
compared to the first quarter of 2021.
"We continued to see increased demand for our consumables in the
first quarter, with particular strength in the U.S.," said
Yair Malca, Chief Financial Officer.
"Additionally, we expanded in international markets, where revenues
outside the U.S. grew 51% year-over-year."
"Revenue growth from consumables and services grew 79%
year-over-year, as a higher number of patients sought minimally
invasive treatments along with our expanding install base. This is
a strong indication that our platforms are used more frequently. We
continue to demonstrate healthy gross margins, as we have
successfully delivered an 83% rate, despite significant global
supply chain challenges. As we've previously mentioned, we believe
that our innovative platforms will allow us to support our
long-term gross margin target model of 84%-86%," concluded
Yair Malca.
Revenues outside the U.S. represented 38%, with Canada, Europe and Latin
America being major contributors to the Company's
growth.
GAAP gross margin for the first quarter of 2022 was 83%,
compared to a gross margin of 85% in the first quarter of 2021.
*Non-GAAP gross margin for the first quarter of 2022 was 83% and
85% for the first quarter of 2021. This decrease was primarily
attributable to the increase of sales in international markets,
mainly in countries where InMode operates through distributors, the
increased level of consumable sales as part of the revenue mix and
higher freight costs and supply chain issues.
GAAP operating margin for the first quarter of 2022 and 2021 was
41% as well. *Non-GAAP operating margin for the first quarter of
2022 was 44% compared to the operating margin of 45% in the first
quarter of 2021.The decrease in non-GAAP operating margin is
primarily attributable to change in gross margin.
InMode reported GAAP net income attributable to InMode Ltd. of
$31 million, or $0.36 per diluted share, in the first quarter of
2022, compared to $26.6 million, or
$0.31 per diluted share(1), in the
first quarter of 2021. On a *non-GAAP basis, InMode reported net
income attributable to InMode Ltd. of $34.1
million, or $0.40 per diluted
share, in the first quarter of 2022, compared to $29.3 million, or $0.34 per diluted share(1), in the first 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:
- Revenues between $415 million and $425 million
- *Non-GAAP gross margin between 84% and 86%
- *Non-GAAP income from operations between $199 million and $204
million
- *Non-GAAP earnings per diluted share between $2.06 and $2.11
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 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, May 2, 2022, at 8:30 a.m. Eastern Time to
discuss the first quarter 2022 financial results.
The Company encourages participants to pre-register for the
conference call using the following
link: https://dpregister.com/sreg/10164856/f208c6bfa8
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://services.choruscall.com/mediaframe/webcast.html?webcastid=f0uVBy8O
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 May 2,
2022, at 12 p.m. Eastern Time to May 16,
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: 4639678
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:
Yair.Malca@inmodemd.com
|
Investor Relations
Contact:
Miri Segal
MS-IR LLC
Phone: (917)
607-8654
Email:
ir@inmodemd.com
|
INMODE
LTD.
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
(U.S. dollars in
thousands, except for per share data)
|
(Unaudited)
|
|
|
Three months
ended
March 31,
|
|
2022
|
2021
|
REVENUES
|
85,921
|
65,524
|
COST OF
REVENUES
|
14,772
|
10,079
|
GROSS
PROFIT
|
71,149
|
55,445
|
OPERATING
EXPENSES:
|
|
|
Research and
development
|
2,815
|
2,301
|
Sales and
marketing
|
30,849
|
24,562
|
General and
administrative
|
2,477
|
1,811
|
TOTAL OPERATING
EXPENSES
|
36,141
|
28,674
|
INCOME FROM
OPERATIONS
|
35,008
|
26,771
|
Finance income,
net
|
379
|
44
|
INCOME BEFORE
TAXES
|
35,387
|
26,815
|
INCOME
TAXES
|
4,412
|
69
|
NET
INCOME
|
30,975
|
26,746
|
Add: Net income
attributable to non-controlling interests
|
-
|
(103)
|
NET INCOME
ATTRIBUTABLE TO INMODE LTD.
|
30,975
|
26,643
|
|
|
|
NET INCOME PER
SHARE (1):
|
|
|
Basic
|
0.37
|
0.34
|
Diluted
|
0.36
|
0.31
|
WEIGHTED AVERAGE
NUMBER OF SHARES
OUTSTANDING USED IN COMPUTATION OF
NET INCOME PER SHARE (in thousands) (1)
|
|
|
Basic
|
82,973
|
78,058
|
Diluted
|
85,696
|
85,034
|
(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)
|
|
|
March
31,
2022
|
December
31,
2021
|
Assets
|
|
|
CURRENT
ASSETS:
|
|
|
Cash and cash
equivalents
|
44,670
|
68,136
|
Marketable
securities
|
298,400
|
294,530
|
Short-term bank
deposits
|
56,392
|
53,248
|
Accounts receivable,
net of allowance for doubtful accounts
|
16,104
|
20,236
|
Other
receivables
|
14,182
|
12,938
|
Inventories
|
25,100
|
21,026
|
TOTAL CURRENT
ASSETS
|
454,848
|
470,114
|
NON-CURRENT
ASSETS:
|
|
|
Accounts
receivable
|
737
|
768
|
Deferred income taxes,
net
|
2,586
|
1,334
|
Operating lease
right-of-use assets
|
4,130
|
4,321
|
Property and equipment,
net
|
1,565
|
1,404
|
Other
investments
|
600
|
600
|
TOTAL NON-CURRENT
ASSETS
|
9,618
|
8,427
|
TOTAL
ASSETS
|
464,466
|
478,541
|
|
|
|
Liabilities and
shareholders' equity
|
|
|
CURRENT
LIABILITIES:
|
|
|
Accounts
payable
|
9,541
|
8,779
|
Contract
liabilities
|
16,330
|
13,805
|
Other
liabilities
|
23,947
|
29,266
|
TOTAL CURRENT
LIABILITIES
|
49,818
|
51,850
|
NON-CURRENT
LIABILITIES:
|
|
|
Contract
liabilities
|
3,009
|
2,751
|
Other
liabilities
|
5,242
|
4,831
|
Operating lease
liabilities
|
3,079
|
3,307
|
TOTAL NON-CURRENT
LIABILITIES
|
11,330
|
10,889
|
TOTAL
LIABILITIES
|
61,148
|
62,739
|
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
403,318
|
415,802
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
464,466
|
478,541
|
INMODE
LTD.
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(U.S. dollars in
thousands, except for per share data)
|
(Unaudited)
|
|
|
|
Three months
ended
March 31,
|
|
2022
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
Net income
|
30,975
|
26,746
|
Adjustments required to
reconcile net income to net cash provided by
operating activities:
|
|
|
Depreciation and
amortization
|
138
|
114
|
Share-based
compensation expenses
|
3,094
|
2,698
|
Allowance for doubtful
accounts
|
210
|
40
|
Loss on marketable
securities, net
|
14
|
4
|
Finance expenses,
net
|
90
|
405
|
Deferred income taxes,
net
|
(22)
|
(101)
|
Changes in operating
assets and liabilities:
|
|
|
Decrease (increase) in
accounts receivable
|
3,953
|
(4,569)
|
Increase in other
receivables
|
(1,195)
|
(1,380)
|
Increase in
inventories
|
(4,074)
|
(717)
|
Increase in accounts
payable
|
762
|
1,000
|
Decrease in other
liabilities
|
(4,875)
|
(795)
|
Increase in contract
liabilities
|
2,783
|
1,321
|
Net cash provided by
operating activities
|
31,853
|
24,766
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
Investment in
short-term deposits
|
(23,111)
|
(21,000)
|
Proceeds from
short-term deposits
|
20,000
|
19,000
|
Purchase of fixed
assets
|
(299)
|
(165)
|
Purchase of marketable
securities
|
(21,209)
|
(62,245)
|
Proceeds from sale of
marketable securities
|
11,927
|
26,802
|
Net cash (used in)
investing activities
|
(12,692)
|
(37,608)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
Repurchase of ordinary
shares
|
(42,637)
|
(864)
|
Exercise of
options
|
161
|
9,892
|
Net cash provided by
(used in) financing activities
|
(42,476)
|
9,028
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
(151)
|
(223)
|
NET DECREASE IN CASH
AND CASH EQUIVALENTS
|
(23,466)
|
(4,037)
|
|
|
|
CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
|
68,136
|
68,938
|
CASH AND CASH
EQUIVALENTS AT END OF PERIOD
|
44,670
|
64,901
|
INMODE
LTD.
|
CONDENSED CONSOLIDATED
FINANCIAL HIGHLIGHTS
|
(U.S. dollars in
thousands, except for per share data)
|
(Unaudited)
|
|
|
|
Three months ended
March 31,
|
2022
|
2021
|
Revenues by
Geography:
|
|
|
|
|
United
States
|
53,606
|
62%
|
44,065
|
67%
|
International
|
32,315
|
38%
|
21,459
|
33%
|
Total Net
Revenue
|
85,921
|
100%
|
65,524
|
100%
|
|
|
|
Three months ended
March 31,
|
2022
|
2021
|
Revenues by
Category:
|
|
|
|
|
Capital equipment
revenues
|
71,943
|
84%
|
57,731
|
88%
|
Consumables and service
revenues
|
13,978
|
16%
|
7,793
|
12%
|
Total Net
Revenue
|
85,921
|
100%
|
65,524
|
100%
|
|
Three months ended
March 31,
|
2022
|
2021
|
|
%
|
%
|
|
United
States
|
International
|
Total
|
United
States
|
International
|
Total
|
Revenues by
Technology:
|
|
|
|
|
|
|
Minimally
Invasive
|
84
|
71
|
80
|
65
|
77
|
69
|
Hands-Free
|
13
|
6
|
10
|
33
|
6
|
24
|
Non-Invasive
|
3
|
23
|
10
|
2
|
17
|
7
|
|
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
March 31, 2022
|
Three months ended
March 31, 2021
|
GAAP
|
Share Based
Compensation
|
Non-GAAP
|
GAAP
|
Share Based
Compensation
|
Non-GAAP
|
|
REVENUES
|
85,921
|
-
|
85,921
|
65,524
|
-
|
65,524
|
|
COST OF
REVENUES
|
14,772
|
(314)
|
14,458
|
10,079
|
(229)
|
9,850
|
|
GROSS
PROFIT
|
71,149
|
314
|
71,463
|
55,445
|
229
|
55,674
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
|
|
Research and
development
|
2,815
|
(525)
|
2,290
|
2,301
|
(301)
|
2,000
|
|
Sales and
marketing
|
30,849
|
(1,895)
|
28,954
|
24,562
|
(1,932)
|
22,630
|
|
General and
administrative
|
2,477
|
(360)
|
2,117
|
1,811
|
(236)
|
1,575
|
|
TOTAL OPERATING
EXPENSES
|
36,141
|
(2,780)
|
33,361
|
28,674
|
(2,469)
|
26,205
|
|
INCOME FROM
OPERATIONS
|
35,008
|
3,094
|
38,102
|
26,771
|
2,698
|
29,469
|
|
Finance income,
net
|
379
|
-
|
379
|
44
|
-
|
44
|
|
INCOME BEFORE
TAXES
|
35,387
|
3,094
|
38,481
|
26,815
|
2,698
|
29,513
|
|
INCOME
TAXES
|
4,412
|
-
|
4,412
|
69
|
-
|
69
|
|
NET
INCOME
|
30,975
|
3,094
|
34,069
|
26,746
|
2,698
|
29,444
|
|
Add: Net income
attributable to non-controlling interests
|
-
|
-
|
-
|
(103)
|
-
|
(103)
|
|
NET INCOME
ATTRIBUTABLE TO INMODE LTD.
|
30,975
|
3,094
|
34,069
|
26,643
|
2,698
|
29,341
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
SHARE (1):
|
|
|
|
|
|
|
|
Basic
|
0.37
|
|
0.41
|
0.34
|
|
0.38
|
|
Diluted
|
0.36
|
|
0.40
|
0.31
|
|
0.34
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES OUTSTANDING
USED IN COMPUTATION OF NET INCOME PER SHARE
(in thousands) (1)
|
|
|
|
|
|
|
|
Basic
|
82,973
|
|
82,973
|
78,058
|
|
78,058
|
|
Diluted
|
85,696
|
|
86,132
|
85,034
|
|
85,415
|
|
(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.
View original
content:https://www.prnewswire.com/news-releases/inmode-reports-first-quarter-2022-financial-results-301537084.html
SOURCE InMode