InMode Ltd. Q2 FY2024 earnings call

• Launched two new advanced platforms, IgniteRF and Optimus Max, with deliveries beginning and on track to complete pre-orders by year-end.
• FDA cleared Morpheus8 for contraction soft tissue, making it the gold standard in aesthetic treatment.
• Introduced Dr. Eran Krieger as Medical Director and VP of Medical Affairs, thanking Dr. Spero Theodorou.
• Discussed macroeconomic challenges impacting market demand and financial results, with Israeli team working long shifts for timely delivery.

InMode generated $86.4 million in total revenue for the second quarter of 2024. The minimally invasive technology platforms accounted for 87% of total revenues. International operations had second quarter sales outside the US of $40.9 million, representing 47% of total sales. GAAP gross margin in Q2 was 80%, non-GAAP gross margin was 81%, and pro forma gross margin was 82%. GAAP operating expenses were $51 million, an 11% decrease year-over-year. GAAP diluted earnings per share were $0.28, while non-GAAP and pro forma diluted earnings per share were $0.34 and $0.46 respectively.

• Full year 2024 revenue guidance revised to $430 million to $440 million from previous $485 million to $495 million.
• Non-GAAP gross margin expected between 82% and 84% (same as previous guidance).
• Non-GAAP income from operations expected between $150 million to $155 million, down from previous $169 million to $174 million.
• Non-GAAP earnings per dilutive share expected between $1.92 to $1.96, down from previous $2.01 to $2.05.

• Macroeconomic trends impacting market demand and financial results.
• Interest rates on lease packages not low enough to spur doctor purchases of systems.
• Competition from Chinese copies of InMode's products confusing doctors.
• Impact of the war in Israel on supplies and operations.

Q: Danielle Antalffy asks about 2025 growth prospects and margin drivers.

A: Moshe Mizrahy discusses early 2025 uncertainty, need for third and fourth quarter performance, and product launches in new territories.

Q: Caitlin Cronin inquires about worse environment and margin recovery.

A: Moshe mentions interest rates on lease packages and reduced procedure numbers due to patient savings.

Q: Jeff Johnson asks about system upgrades and trade-in programs.

A: Moshe states focus on new system sales now, but Ignite and Optimus Max offer different features for existing users.

Q: Joseph Conway asks about consumables, handpieces, and share repurchase.

A: Moshe explains handpieces are capital equipment, not disposable, and share repurchase was completed with plans for future updates if approved.