| |
YOKNEAM, Israel, May 5, 2021 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced consolidated financial results for its first quarter ended March 31, 2021.
First Quarter 2021 Highlights:
- Quarterly revenues of $65.5 million, an increase of 62% compared to the first quarter of 2020: 69% of quarterly revenues derived from InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 24% from InMode's hands-free platforms and 7% from InMode's traditional laser and non-invasive RF platforms
- GAAP net income of $26.6 million, compared to $6.4 million in the first quarter of 2020; *non-GAAP net income of $29.3 million, compared to $12.6 million in the first quarter of 2020
- GAAP diluted earnings per share of $0.63, compared to $0.15 in the first quarter of 2020; *non-GAAP diluted earnings per share of $0.69, compared to $0.30 in the first quarter of 2020
- Total cash position of $293.4 million as of March 31, 2021, including cash and cash equivalents, marketable securities and short-term bank deposits
|
|
U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
|
| |
Q1 2021
|
Q1 2020
|
|
Revenues
|
$65,524
|
$40,441
|
|
Gross Margins
|
85%
|
85%
|
|
Net Income Attributable to InMode Ltd.
|
$26,643
|
$6,433
|
|
Earnings per Diluted Share
|
$0.63
|
$0.15
|
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
| |
Q1 2021
|
Q1 2020
|
|
Gross Margins
|
85%
|
85%
|
|
Net Income Attributable to InMode Ltd.
|
$29,341
|
$12,559
|
|
Earnings per Diluted Share
|
$0.69
|
$0.30
|
*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.
Management Comments
"Our strong first quarter performance marks another impressive period of growth. Increases in revenues were driven by continued demand for our minimally invasive and hands-free devices in clinics around the world," commented Moshe Mizrahy, InMode's CEO. "In particular we've seen immense growth of our consumables sales, which have tripled over the last four quarters. This is a testament of our pervasive market penetration and the popularity of our solutions with both doctors and patients alike."
"Our pipeline continues to grow and includes many new projects as we plan on penetrating new medical categories in 2021 and beyond. In addition to gynecology and ophthalmology, we are also exploring urology and other verticals where our advanced capabilities and experience with bio polar RF technology will improve the quality of life for patients," stated Dr. Michael Kreindel, InMode's CTO and co-founder.
Shakil Lakhani, President of InMode North America, added, "The underlying demand for our non-invasive and effective aesthetic procedures continued to be strong in the first quarter with sales reaching an all-time high for the month of March. Our sales team and post-sales support were vital in generating interest across our portfolio of platforms and driving record consumables orders, as our virtual training platform successfully integrated new hires into our organization. We are pleased to see in-person events slowly returning back to normal and we are encouraged by the high levels of activity and engagement at these events."
"More practitioners are using our systems than ever before," added Dr. Spero Theodorou, InMode Chief Medical Officer. "We continue to engage with luminary doctors worldwide as they endorse InMode's innovative approach to aesthetics and wellness."
First Quarter 2021 Financial Results
Total revenues for the first quarter of 2021 were $65.5 million, an increase of 62% as compared to the first quarter of 2020. "The increase in revenues was primarily attributable to continued strong demand for our platforms in the beginning of the new year. Notably, international sales have grown dramatically year-over-year, as we successfully duplicate our U.S. growth strategy on a global scale," commented Yair Malca, InMode's Chief Financial Officer.
GAAP gross margin for the first quarter of 2021 and 2020 was 85%. *Non-GAAP gross margin for the first quarter of 2021 and 2020 was 85% as well.
GAAP operating margin for the first quarter of 2021 was 41%, compared to 15% in the first quarter of 2020. *Non-GAAP operating margin for the first quarter of 2021 was 45%, compared to 30% in the first quarter of 2020. This increase stemmed primarily from the fact that the sales cycle in March of 2020 was interrupted by the COVID-19 outbreak, and consequently, the marketing expenditure did not result in sales at the end of the first quarter of 2020. Also, in first quarter of 2021, marketing activities in the United States such as event and conference participation, remained minimal due to restrictions caused by the COVID-19 pandemic.
InMode reported GAAP net income attributable to InMode Ltd of $26.6 million, or $0.63 per diluted share, in the first quarter of 2021 compared to $6.4 million, or $0.15 per diluted share, in the first quarter of 2020. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd of $29.3 million, or $0.69 per diluted share, in the first quarter of 2021, compared to $12.6 million, or $0.30 per diluted share, in the first quarter of 2020.
2021 Financial Outlook
Management provided an outlook for the full year of 2021, the period ending December 31, 2021. Based on current estimates, management expects:
- Revenues between $270 million to $280 million
- *Non-GAAP gross margin between 84% to 86%
- *Non-GAAP income from operations between $113 million to $118 million
- *Non-GAAP earnings per diluted share between $2.60 to $2.75
This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.
*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.
Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release includes certain non-GAAP financial measures including non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes that they provide greater transparency to investors of management's view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measures may not be comparable to other similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.
Conference Call Information
Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, co-founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, May 5, 2021, at 8:30 a.m. Eastern Time to discuss the first quarter 2021 financial results.
The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10153792/e5af7c2dc0
Callers will receive a unique dial-in upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
For callers that opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.
U.S. Toll-Free Dial-in Number: 1-833-316-0562
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time
The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from May 5, 2021 at 12 p.m. Eastern Time to May 19, 2021 at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in U.S TOLL-FREE: 1-877-344-7529
Replay Dial-in Canada TOLL-FREE: 855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 10153792
A replay will also be available for 90 days on InMode's website at https://inmodemd.com/investors.
About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically-accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2021 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategy plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2021, risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
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Company Contact:
Yair Malca
Chief Financial Officer
Phone: (949) 305-0108
Email: Yair.Malca@inmodemd.com
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Investor Relations Contact:
Miri Segal
MS-IR LLC
Phone: (917) 607-8654
Email: ir@inmodemd.com
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INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
| |
|
| |
Three months ended
March 31,
|
| |
2021
|
2020
|
|
REVENUES
|
65,524
|
40,441
|
|
COST OF REVENUES
|
10,079
|
6,184
|
|
GROSS PROFIT
|
55,445
|
34,257
|
|
OPERATING EXPENSES:
|
|
|
|
Research and development
|
2,301
|
3,432
|
|
Sales and marketing
|
24,562
|
22,999
|
|
General and administrative
|
1,811
|
1,823
|
|
TOTAL OPERATING EXPENSES
|
28,674
|
28,254
|
|
INCOME FROM OPERATIONS
|
26,771
|
6,003
|
|
Finance income, net
|
44
|
629
|
|
INCOME BEFORE TAXES
|
26,815
|
6,632
|
|
INCOME TAXES
|
69
|
141
|
|
NET INCOME
|
26,746
|
6,491
|
|
Add: Net income attributable to non-controlling interests
|
(103)
|
(58)
|
|
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
26,643
|
6,433
|
| |
|
|
|
NET INCOME PER SHARE:
|
|
|
|
Basic
|
0.68
|
0.19
|
|
Diluted
|
0.63
|
0.15
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
|
|
|
Basic
|
39,029
|
33,963
|
|
Diluted
|
42,517
|
41,688
|
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INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
| |
|
|
| |
March 31,
2021
|
December 31,
2020
|
|
Assets
|
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash equivalents
|
64,901
|
68,938
|
|
Marketable securities
|
177,081
|
142,007
|
|
Short-term bank deposits
|
51,441
|
49,589
|
|
Accounts receivable, net of allowance for doubtful accounts
|
15,044
|
10,499
|
|
Other receivables
|
7,859
|
3,575
|
|
Inventories
|
15,700
|
14,983
|
|
TOTAL CURRENT ASSETS
|
332,026
|
289,591
|
|
NON-CURRENT ASSETS:
|
|
|
|
Accounts receivable
|
461
|
477
|
|
Other receivables
|
-
|
2,894
|
|
Deferred income taxes, net
|
223
|
64
|
|
Operating lease right-of-use assets
|
2,949
|
1,153
|
|
Property and equipment, net
|
1,033
|
982
|
|
Other investments
|
600
|
600
|
|
TOTAL NON-CURRENT ASSETS
|
5,266
|
6,170
|
|
TOTAL ASSETS
|
337,292
|
295,761
|
| |
|
|
|
Liabilities and shareholders' equity
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
Accounts payable
|
7,410
|
6,410
|
|
Contract liabilities
|
13,273
|
11,900
|
|
Other liabilities
|
15,993
|
16,720
|
|
TOTAL CURRENT LIABILITIES
|
36,676
|
35,030
|
|
NON-CURRENT LIABILITIES:
|
|
|
|
Contract liabilities
|
1,936
|
1,988
|
|
Other liabilities
|
2,957
|
2,910
|
|
Operating lease liabilities
|
1,976
|
358
|
|
TOTAL NON-CURRENT LIABILITIES
|
6,869
|
5,256
|
|
TOTAL LIABILITIES
|
43,545
|
40,286
|
| |
|
|
|
TOTAL SHAREHOLDERS' EQUITY
|
293,747
|
255,475
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
337,292
|
295,761
|
|
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
| |
| |
|
Three months ended
March 31,
|
| |
2021
|
2020
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
Net income
|
26,746
|
6,491
|
|
Adjustments required to reconcile net income to net cash provided by operating activities:
|
|
|
|
Depreciation and amortization
|
114
|
94
|
|
Share-based compensation expenses
|
2,698
|
6,050
|
|
Allowance for doubtful accounts
|
40
|
306
|
|
Loss (gains) on marketable securities, net
|
4
|
(6)
|
|
Finance expenses, net
|
405
|
189
|
|
Deferred income taxes, net
|
(101)
|
368
|
|
Changes in operating assets and liabilities:
|
|
|
|
Decrease (increase) in accounts receivable
|
(4,569)
|
590
|
|
Increase in other receivables
|
(1,380)
|
(1,560)
|
|
Increase in inventories
|
(717)
|
(2,678)
|
|
Increase in accounts payable
|
1,000
|
1,014
|
|
Decrease in other liabilities
|
(795)
|
(1,793)
|
|
Increase (decrease) in contract liabilities
|
1,321
|
(2,945)
|
|
Net cash provided by operating activities
|
24,766
|
6,120
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
Investment in short-term deposits
|
(21,000)
|
(16,519)
|
|
Proceeds from short-term deposits
|
19,000
|
14,500
|
|
Purchase of fixed assets
|
(165)
|
(99)
|
|
Purchase of marketable securities
|
(62,245)
|
(43,933)
|
|
Proceeds from sale of marketable securities
|
26,802
|
38,574
|
|
Net cash (used in) investing activities
|
(37,608)
|
(7,477)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
Repurchase of ordinary shares
|
(864)
|
-
|
|
Exercise of options
|
9,892
|
2,001
|
|
Net cash provided by financing activities
|
9,028
|
2,001
|
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(223)
|
(233)
|
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(4,037)
|
411
|
| |
|
|
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
68,938
|
44,727
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
64,901
|
45,138
|
|
INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
| |
|
|
| |
Three months ended March 31,
|
Year Ended December,
|
|
2021
|
2020
|
2020
|
|
Revenues by Geography:
|
|
|
|
|
|
|
|
United States
|
44,065
|
67%
|
30,823
|
76%
|
149,488
|
73%
|
|
International
|
21,459
|
33%
|
9,618
|
24%
|
56,619
|
27%
|
|
Total Net Revenue
|
65,524
|
100%
|
40,441
|
100%
|
206,107
|
100%
|
| |
Three months ended March 31,
|
Year Ended December,
|
|
2021
|
2020
|
2020
|
|
Revenues by Category:
|
|
|
|
|
|
|
|
Capital equipment revenues
|
57,731
|
88%
|
35,376
|
87%
|
185,320
|
90%
|
|
Consumables and service revenues
|
7,793
|
12%
|
5,065
|
13%
|
20,787
|
10%
|
|
Total Net Revenue
|
65,524
|
100%
|
40,441
|
100%
|
206,107
|
100%
|
| |
Three months ended March 31,
|
|
2021
|
2020
|
| |
%
|
%
|
| |
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|
Revenues by Technology:
|
|
|
|
|
|
|
|
Minimal-Invasive
|
65
|
77
|
69
|
61
|
75
|
65
|
|
Hands-Free
|
33
|
6
|
24
|
37
|
6
|
29
|
|
Non-Invasive
|
2
|
17
|
7
|
2
|
19
|
6
|
| |
100
|
100
|
100
|
100
|
100
|
100
|
|
INMODE LTD.
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF
INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
| |
|
|
| |
Three months ended March 31, 2021
|
Three months ended March 31, 2020
|
|
GAAP
|
Share Based
Compensation
|
Non-GAAP
|
GAAP
|
Share Based
Compensation
|
Non-GAAP
|
|
REVENUES
|
65,524
|
-
|
65,524
|
40,441
|
-
|
40,441
|
|
COST OF REVENUES
|
10,079
|
(229)
|
9,850
|
6,184
|
(76)
|
6,108
|
|
GROSS PROFIT
|
55,445
|
229
|
55,674
|
34,257
|
76
|
34,333
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
Research and development
|
2,301
|
(301)
|
2,000
|
3,432
|
(1,886)
|
1,546
|
|
Sales and marketing
|
24,562
|
(1,932)
|
22,630
|
22,999
|
(3,838)
|
19,161
|
|
General and administrative
|
1,811
|
(236)
|
1,575
|
1,823
|
(250)
|
1,573
|
|
TOTAL OPERATING
EXPENSES
|
28,674
|
(2,469)
|
26,205
|
28,254
|
(5,974)
|
22,280
|
|
INCOME FROM OPERATIONS
|
26,771
|
2,698
|
29,469
|
6,003
|
6,050
|
12,053
|
|
Finance income, net
|
44
|
-
|
44
|
629
|
-
|
629
|
|
INCOME BEFORE TAXES
|
26,815
|
2,698
|
29,513
|
6,632
|
6,050
|
12,682
|
|
INCOME TAXES (TAX BENEFIT)
|
69
|
-
|
69
|
141
|
(76)
|
65
|
|
NET INCOME
|
26,746
|
2,698
|
29,444
|
6,491
|
6,126
|
12,617
|
|
Add: Net Income attributable to non-controlling interests
|
(103)
|
-
|
(103)
|
(58)
|
-
|
(58)
|
|
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
26,643
|
2,698
|
29,341
|
6,433
|
6,126
|
12,559
|
| |
|
|
|
|
|
|
|
NET INCOME PER
SHARE:
|
|
|
|
|
|
|
|
Basic
|
0.68
|
|
0.75
|
0.19
|
|
0.37
|
|
Diluted
|
0.63
|
|
0.69
|
0.15
|
|
0.30
|
|
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
|
|
|
|
|
|
|
Basic
|
39,029
|
|
39,029
|
33,963
|
|
33,963
|
|
Diluted
|
42,517
|
|
42,707
|
41,688
|
|
41,809
|
 View original content:http://www.prnewswire.com/news-releases/inmode-reports-first-quarter-2021-financial-results-quarterly-revenues-of-65-5-million-represent-62-year-over-year-growth-gaap-earnings-per-share-of-0-63--320-year-over-year-growth-301283937.html
SOURCE InMode Ltd.
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