InMode (INMD) Canaccord Genuity 44th Annual Growth Conference & Private Company Showcase 2024 summary

Business overview and strategy

• Focuses on energy-based, minimally invasive aesthetic devices, with expansion into wellness markets such as OBGYN, ophthalmology, ENT, and urology.

• Holds strong regulatory protections and patents, especially in radiofrequency technology.

• Global presence with headquarters and manufacturing in Israel; international expansion accelerating post-COVID.

• Differentiates by offering deeper, more substantial treatments than lasers, filling a gap between non-invasive and surgical procedures.

• Robust product portfolio covers a wide range of doctor and patient needs, outpacing single-product competitors.

Financial performance and guidance

• Q2 GAAP revenue was $86.4 million, with pro forma revenue significantly higher due to delayed recognition.

• Expects 2023 revenue of $430–$440 million and a 35% operating margin, down from 45% last year.

• Saw a 24% drop in US disposable sales, attributed to lower patient spending and preference for lower-cost procedures.

• International markets are growing, though from a smaller base, and are less affected by macro headwinds than the US.

• Guidance for the year is considered realistic, with expectations for a stronger second half, especially Q4.

Product innovation and operational updates

• Launched next-generation devices like OptimasMAX, combining radiofrequency, IPL, and laser; faced supply chain delays but expect full delivery by early Q4.

• Expanded non-invasive offerings to capture additional market share.

• Invests heavily in clinical studies and scientific marketing to build credibility and drive demand.

• Product portfolio includes both invasive and non-invasive solutions, with flagship brands like Morpheus8.