Intuitive Surgical (ISRG) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $2.2 billion, up 14% year-over-year, driven by 17% global procedure growth and a 14% increase in the installed base, with strong capital placements for da Vinci 5, Ion, and SP platforms.

• 341 da Vinci systems were placed in Q2, including 70 da Vinci 5 systems, bringing the global installed base to 9,203 as of June 30, 2024.

• Early feedback on da Vinci 5 highlights improvements in precision, imaging, ergonomics, and integration, with efficiency gains noted by customers.

• Ion supply constraints have eased, supporting customer expansion, and SP received FDA clearance for 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.

Financial highlights

• Q2 revenue was $2.2 billion, up 14% year-over-year; constant currency growth was 15%.

• Pro forma gross margin reached 70%, up from 68.5% last year, aided by one-time benefits; GAAP gross margin was 68.3%.

• Pro forma net income was $641 million ($1.78/share), up from $507 million ($1.42/share) last year; GAAP net income was $527 million ($1.46/share).

• Cash and investments ended at $7.68 billion, up from $7.3 billion last quarter.

• Product revenue grew 15% to $1.69 billion; service revenue rose 10% to $317 million.

Outlook and guidance

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

• Pro forma gross margin guidance raised to 68.5%-69% of net revenue.

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

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

• Management expects continued growth in procedure volumes, with U.S. and OUS general surgery, urology, and gynecology as key drivers.