Intuitive Surgical (ISRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $2.01 billion, up 14% year-over-year, driven by 17% growth in da Vinci procedures and a 14% increase in the installed base to 9,203 systems.

• 341 da Vinci systems were placed in Q2, including 70 da Vinci 5 systems, with positive customer feedback on precision, imaging, and efficiency.

• Ion and SP platforms experienced significant growth, with Ion procedures up 82% and new FDA clearance for SP thoracic procedures.

• Net income attributable to the company was $527 million (GAAP), up from $421 million last year; non-GAAP net income was $641 million.

• Global procedure growth was led by general surgery in the US and non-urology procedures internationally, with notable strength in Europe and India.

Financial highlights

• Q2 product revenue grew 15% to $1.69 billion; service revenue rose 10% to $317 million; instruments and accessories revenue increased 16% to $1.24 billion.

• Systems revenue was $448 million, up from $393 million year-over-year, supported by higher lease and buyout activity.

• Pro forma gross margin was 70% (69.5% excluding one-time items); GAAP gross margin was approximately 68%.

• Pro forma net income was $641 million ($1.78/share); GAAP net income was $527 million ($1.46/share).

• Cash and investments ended at $7.68 billion, up $360 million sequentially.

Outlook and guidance

• Full-year 2024 procedure growth forecast narrowed to 15.5%-17%.

• Pro forma gross profit margin guidance raised to 68.5%-69%.

• Pro forma operating expense growth guidance lowered to 10%-13%.

• Capital expenditures for 2024 projected at $1–1.2 billion, mainly for facilities and manufacturing expansion.

• Pro forma income tax rate guidance unchanged at 22%-24%.