Exhibit No.
|
Description of Exhibit
|
|
InMode Ltd.
|
|
|
|
|
By: /s/ Moshe Mizrahy
|
Moshe Mizrahy
|
|
October 27, 2022
|
Chief Executive Officer and Chairman of The Board of Directors
|
• |
Record quarterly revenue of $121.2 million, an increase of 29% compared to the third quarter of 2021: InMode’s proprietary surgical technology platforms engaged in minimally invasive and
subdermal ablative treatments represented 82% of quarterly revenues, while 11% came from InMode’s hands-free platforms and 7% from InMode’s traditional laser and non-invasive RF platforms.
|
• |
GAAP net income of $48.8 million, compared to $44.7 million in the third quarter of 2021; Record *non-GAAP net income of $56.6 million, compared to $47.9 million in the third quarter of 2021.
|
• |
GAAP diluted earnings per share of $0.58, compared to $0.52 in the third quarter of 2021; Record *non-GAAP diluted earnings per share of $0.66, compared to $0.55 in the third quarter of 2021.
|
• |
Quarterly revenues from consumables and service of $13.9 million, an increase of 53% compared to the third quarter of 2021.
|
• |
Total cash position of $486.4 million as of September 30, 2022, 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)
|
||
Q3 2022
|
Q3 2021
|
|
Revenues
|
$121,232
|
$94,176
|
Gross Margins
|
85%
|
85%
|
Net Income
|
$48,789
|
$44,718
|
Earnings per Diluted Share
|
$0.58
|
$0.52
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
||
Q3 2022
|
Q3 2021
|
|
Gross Margins
|
85%
|
86%
|
Net Income
|
$56,646
|
$47,910
|
Earnings per Diluted Share
|
$0.66
|
$0.55
|
● |
Revenue between $445 million and $450 million
|
● |
*Non-GAAP gross margin between 83% and 85%
|
● |
*Non-GAAP income from operations between $214 million and $217 million
|
● |
*Non-GAAP earnings per diluted share between $2.28 and $2.30
|
Company Contact:
Yair Malca
Chief Financial Officer
Phone: (949) 305-0108
Email: Yair.Malca@inmodemd.com
|
Investor Relations Contact:
Miri Segal
MS-IR LLC
Phone: (917) 607-8654
Email: ir@inmodemd.com
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
REVENUES
|
121,232
|
94,176
|
320,700
|
247,025
|
||||||||||||
COST OF REVENUES
|
18,765
|
13,943
|
52,483
|
36,745
|
||||||||||||
GROSS PROFIT
|
102,467
|
80,233
|
268,217
|
210,280
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Research and development
|
3,166
|
2,248
|
9,164
|
7,004
|
||||||||||||
Sales and marketing
|
43,062
|
30,835
|
113,564
|
84,067
|
||||||||||||
General and administrative
|
2,494
|
2,132
|
7,533
|
5,884
|
||||||||||||
TOTAL OPERATING EXPENSES
|
48,722
|
35,215
|
130,261
|
96,955
|
||||||||||||
INCOME FROM OPERATIONS
|
53,745
|
45,018
|
137,956
|
113,325
|
||||||||||||
Finance income (expenses), net
|
189
|
(65
|
)
|
(350
|
)
|
407
|
||||||||||
INCOME BEFORE TAXES
|
53,934
|
44,953
|
137,606
|
113,732
|
||||||||||||
INCOME TAXES
|
5,145
|
235
|
13,794
|
1,343
|
||||||||||||
NET INCOME
|
48,789
|
44,718
|
123,812
|
112,389
|
||||||||||||
Add: Net income attributable to non-controlling interests
|
-
|
-
|
-
|
(103
|
)
|
|||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
48,789
|
44,718
|
123,812
|
112,286
|
||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||
Basic
|
0.59
|
0.54
|
1.50
|
1.39
|
||||||||||||
Diluted
|
0.58
|
0.52
|
1.45
|
1.31
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||
Basic
|
82,306
|
82,705
|
82,494
|
80,843
|
||||||||||||
Diluted
|
84,823
|
86,264
|
85,120
|
85,802
|
September 30,
2022
|
December 31,
2021
|
|||||||
Assets
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
77,048
|
68,136
|
||||||
Marketable securities
|
334,934
|
294,530
|
||||||
Short-term bank deposits
|
74,405
|
53,248
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
28,056
|
20,236
|
||||||
Other receivables
|
13,730
|
12,938
|
||||||
Inventories
|
35,810
|
21,026
|
||||||
TOTAL CURRENT ASSETS
|
563,983
|
470,114
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Accounts receivable
|
3,766
|
768
|
||||||
Deferred income taxes, net
|
3,255
|
1,334
|
||||||
Operating lease right-of-use assets
|
5,191
|
4,321
|
||||||
Property and equipment, net
|
2,189
|
1,404
|
||||||
Other investments
|
600
|
600
|
||||||
TOTAL NON-CURRENT ASSETS
|
15,001
|
8,427
|
||||||
TOTAL ASSETS
|
578,984
|
478,541
|
||||||
Liabilities and shareholders’ equity
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
13,296
|
8,779
|
||||||
Contract liabilities
|
12,450
|
13,805
|
||||||
Other liabilities
|
32,181
|
29,266
|
||||||
TOTAL CURRENT LIABILITIES
|
57,927
|
51,850
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Contract liabilities
|
3,647
|
2,751
|
||||||
Other liabilities
|
5,450
|
4,831
|
||||||
Operating lease liabilities
|
3,657
|
3,307
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
12,754
|
10,889
|
||||||
TOTAL LIABILITIES
|
70,681
|
62,739
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
508,303
|
415,802
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
578,984
|
478,541
|
Three months ended
September 30, |
Nine months ended
September 30, |
|||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income
|
48,789
|
44,718
|
123,812
|
112,389
|
||||||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
169
|
136
|
462
|
378
|
||||||||||||
Share-based compensation expenses
|
7,857
|
3,192
|
17,304
|
8,838
|
||||||||||||
Allowance for doubtful accounts
|
50
|
48
|
402
|
375
|
||||||||||||
Loss on marketable securities, net
|
12
|
26
|
49
|
33
|
||||||||||||
Finance expenses, net
|
586
|
789
|
1,527
|
1,598
|
||||||||||||
Deferred income taxes, net
|
9
|
(189
|
)
|
156
|
(391
|
)
|
||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Increase in accounts receivable
|
(6,926
|
)
|
(4,403
|
)
|
(11,220
|
)
|
(12,478
|
)
|
||||||||
Decrease (increase) in other receivables
|
887
|
(4,101
|
)
|
(706
|
)
|
(4,418
|
)
|
|||||||||
Increase in inventories
|
(6,050
|
)
|
(1,784
|
)
|
(14,784
|
)
|
(4,195
|
)
|
||||||||
Increase in accounts payable
|
1,463
|
1,161
|
4,517
|
2,474
|
||||||||||||
Increase in other liabilities
|
4,136
|
11,157
|
3,366
|
16,194
|
||||||||||||
Increase (decrease) in contract liabilities
|
(5,390
|
)
|
(277
|
)
|
(459
|
)
|
1,195
|
|||||||||
Net cash provided by operating activities
|
45,592
|
50,473
|
124,426
|
121,992
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Investment in short-term deposits
|
(48,090
|
)
|
(25,090
|
)
|
(93,701
|
)
|
(66,090
|
)
|
||||||||
Proceeds from short-term deposits
|
30,090
|
24,090
|
73,090
|
62,180
|
||||||||||||
Purchase of fixed assets
|
(387
|
)
|
(254
|
)
|
(1,247
|
)
|
(757
|
)
|
||||||||
Purchase of marketable securities
|
(58,982
|
)
|
(77,547
|
)
|
(97,736
|
)
|
(203,274
|
)
|
||||||||
Proceeds from sale of marketable securities
|
21,236
|
30,660
|
48,395
|
78,642
|
||||||||||||
Net cash (used in) investing activities
|
(56,133
|
)
|
(48,141
|
)
|
(71,199
|
)
|
(129,299
|
)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repurchase of ordinary shares
|
-
|
-
|
(42,637
|
)
|
(11,921
|
)
|
||||||||||
Exercise of options
|
550
|
5,200
|
915
|
19,803
|
||||||||||||
Net cash provided by (used in) financing activities
|
550
|
5,200
|
(41,722
|
)
|
7,882
|
|||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(1,365
|
)
|
(376
|
)
|
(2,593
|
)
|
(585
|
)
|
||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(11,356
|
)
|
7,156
|
8,912
|
(10
|
)
|
||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
88,404
|
61,772
|
68,136
|
68,938
|
||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
77,048
|
68,928
|
77,048
|
68,928
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||||||||||||||||||
2022
|
2021
|
2022 |
2021
|
|||||||||||||||||||||||||||||
Revenues by Category:
|
||||||||||||||||||||||||||||||||
Capital Equipment revenues - United States
|
72,920
|
60
|
%
|
56,284
|
60
|
%
|
180,640
|
57
|
%
|
144,614
|
58
|
%
|
||||||||||||||||||||
Capital Equipment revenues - International
|
34,383
|
28
|
%
|
28,783
|
30
|
%
|
97,126
|
30
|
%
|
76,030
|
31
|
%
|
||||||||||||||||||||
Total Capital Equipment revenues
|
107,303
|
88
|
%
|
85,067
|
90
|
%
|
277,766
|
87
|
%
|
220,644
|
89
|
%
|
||||||||||||||||||||
Consumables and service revenues
|
13,929
|
12
|
%
|
9,109
|
10
|
%
|
42,934
|
13
|
%
|
26,381
|
11
|
%
|
||||||||||||||||||||
Total Net Revenue
|
121,232
|
100
|
%
|
94,176
|
100
|
%
|
320,700
|
100
|
%
|
247,025
|
100
|
%
|
Three months ended September 30,
|
Nine months ended September 30,
|
|||||||||||||||||||||||||||||||||||||||||||||||
2022
|
2021
|
2022
|
2021
|
|||||||||||||||||||||||||||||||||||||||||||||
%
|
%
|
%
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|||||||||||||||||||||||||||||||||||||
Revenues by Technology:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Minimally Invasive
|
84
|
75
|
82
|
73
|
73
|
73
|
84
|
73
|
80
|
70
|
74
|
71
|
||||||||||||||||||||||||||||||||||||
Hands-Free
|
13
|
8
|
11
|
25
|
5
|
18
|
13
|
7
|
11
|
28
|
7
|
21
|
||||||||||||||||||||||||||||||||||||
Non-Invasive
|
3
|
17
|
7
|
2
|
22
|
9
|
3
|
20
|
9
|
2
|
19
|
8
|
||||||||||||||||||||||||||||||||||||
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
Three months ended September 30, 2022
|
Three months ended September 30, 2021
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
121,232
|
121,232
|
94,176
|
-
|
94,176
|
|||||||||||||||||||
COST OF REVENUES
|
18,765
|
(554
|
)
|
18,211
|
13,943
|
(301
|
)
|
13,642
|
||||||||||||||||
GROSS PROFIT
|
102,467
|
554
|
103,021
|
80,233
|
301
|
80,534
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
3,166
|
(857
|
)
|
2,309
|
2,248
|
(425
|
)
|
1,823
|
||||||||||||||||
Sales and marketing
|
43,062
|
(5,879
|
)
|
37,183
|
30,835
|
(2,208
|
)
|
28,627
|
||||||||||||||||
General and administrative
|
2,494
|
(567
|
)
|
1,927
|
2,132
|
(258
|
)
|
1,874
|
||||||||||||||||
TOTAL OPERATING
EXPENSES |
48,722
|
(7,303
|
)
|
41,419
|
35,215
|
(2,891
|
)
|
32,324
|
||||||||||||||||
INCOME FROM OPERATIONS
|
53,745
|
7,857
|
61,602
|
45,018
|
3,192
|
48,210
|
||||||||||||||||||
Finance income (expenses), net
|
189
|
-
|
189
|
(65
|
)
|
-
|
(65
|
)
|
||||||||||||||||
INCOME BEFORE TAXES
|
53,934
|
7,857
|
61,791
|
44,953
|
3,192
|
48,145
|
||||||||||||||||||
INCOME TAXES
|
5,145
|
-
|
5,145
|
235
|
-
|
235
|
||||||||||||||||||
NET INCOME
|
48,789
|
7,857
|
56,646
|
44,718
|
3,192
|
47,910
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
0.59
|
0.69
|
0.54
|
0.58
|
||||||||||||||||||||
Diluted
|
0.58
|
0.66
|
0.52
|
0.55
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
82,306
|
82,306
|
82,705
|
82,705
|
||||||||||||||||||||
Diluted
|
84,823
|
85,453
|
86,264
|
86,494
|
Nine months ended September 30, 2022
|
Nine months ended September 30, 2021
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
320,700
|
-
|
320,700
|
247,025
|
-
|
247,025
|
||||||||||||||||||
COST OF REVENUES
|
52,483
|
(1,364
|
)
|
51,119
|
36,745
|
(804
|
)
|
35,941
|
||||||||||||||||
GROSS PROFIT
|
268,217
|
1,364
|
269,581
|
210,280
|
804
|
211,084
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
9,164
|
(2,248
|
)
|
6,916
|
7,004
|
(1,112
|
)
|
5,892
|
||||||||||||||||
Sales and marketing
|
113,564
|
(12,233
|
)
|
101,331
|
84,067
|
(6,154
|
)
|
77,913
|
||||||||||||||||
General and administrative
|
7,533
|
(1,459
|
)
|
6,074
|
5,884
|
(768
|
)
|
5,116
|
||||||||||||||||
TOTAL OPERATING
EXPENSES |
130,261
|
(15,940
|
)
|
114,321
|
96,955
|
(8,034
|
)
|
88,921
|
||||||||||||||||
INCOME FROM OPERATIONS
|
137,956
|
17,304
|
155,260
|
113,325
|
8,838
|
122,163
|
||||||||||||||||||
Finance income (expenses), net
|
(350
|
)
|
-
|
(350
|
)
|
407
|
-
|
407
|
||||||||||||||||
INCOME BEFORE TAXES
|
137,606
|
17,304
|
154,910
|
113,732
|
8,838
|
122,570
|
||||||||||||||||||
INCOME TAXES
|
13,794
|
-
|
13,794
|
1,343
|
-
|
1,343
|
||||||||||||||||||
NET INCOME
|
123,812
|
17,304
|
141,116
|
112,389
|
8,838
|
121,227
|
||||||||||||||||||
Add: Net Income attributable to non-controlling interests
|
-
|
-
|
-
|
(103
|
)
|
-
|
(103
|
)
|
||||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
123,812
|
17,304
|
141,116
|
112,286
|
8,838
|
121,124
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
1.50
|
1.71
|
1.39
|
1.50
|
||||||||||||||||||||
Diluted
|
1.45
|
1.65
|
1.31
|
1.41
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
82,494
|
82,494
|
80,843
|
80,843
|
||||||||||||||||||||
Diluted
|
85,120
|
85,667
|
85,802
|
86,059
|