InMode (INMD) Q3 2024 earnings summary

Executive summary

• Q3 2024 performance was impacted by macroeconomic headwinds, leading to decreased minimally invasive treatments and a slowdown in platform and consumables sales, prompting a 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.

• Corporate restructuring included management changes in the U.S., U.K., Spain, and France, and segmentation of North American operations to better address regional needs.

• Production challenges due to the war in Israel were managed by employee dedication and overtime, ensuring continued customer service.

• 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 received in Q1; net sales for Q3 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.

• GAAP operating expenses were $57.9 million, up 2% year-over-year; sales and marketing expenses rose to $51.9 million.

• 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.