Exhibit No.
|
Description of Exhibit
|
|
InMode Ltd.
|
|
|
|
|
By: /s/ Moshe Mizrahy
|
Moshe Mizrahy
|
|
|
Chief Executive Officer and Chairman of The Board of Directors
|
● |
Record quarterly revenue of $136.1 million, an increase of 20% compared to the second quarter of 2022. InMode’s proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments
represented 81% of quarterly revenues, while 9% came from InMode’s hands-free platforms and 10% from InMode’s traditional laser and non-invasive RF platforms.
|
● |
Record GAAP net income of $55.7 million, compared to $44.0 million in the second quarter of 2022; *non-GAAP net income of $62.2 million, compared to $50.4 million in the second quarter of 2022.
|
● |
Record GAAP diluted earnings per share of $0.65, compared to $0.52 in the second quarter of 2022; *non-GAAP diluted earnings per share of $0.72, compared to $0.59 in the second quarter of 2022.
|
● |
Record quarterly revenues from consumables and service of $21.6 million, an
increase of 44% compared to the second quarter of 2022.
|
● | Total cash position of $629.4 million as of June 30, 2023, 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)
|
||
Q2 2023
|
Q2 2022
|
|
Revenues
|
$136,081
|
$113,547
|
Gross Margins
|
84%
|
83%
|
Net Income
|
$55,729
|
$44,048
|
Earnings per Diluted Share
|
$0.65
|
$0.52
|
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
|
||
Q2 2023
|
Q2 2022
|
|
Gross Margins
|
84%
|
84%
|
Net Income
|
$62,234
|
$50,401
|
Earnings per Diluted Share
|
$0.72
|
$0.59
|
● |
Revenue between $530 million and $540 million
|
● |
*Non-GAAP gross margin between 83% and 85%
|
● |
*Non-GAAP income from operations between $238 million and $243 million
|
● |
*Non-GAAP earnings per diluted share between $2.62 and $2.66
|
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
June 30, |
Six months ended
June 30, |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
REVENUES
|
136,081
|
113,547
|
242,155
|
199,468
|
||||||||||||
COST OF REVENUES
|
22,054
|
18,946
|
40,308
|
33,718
|
||||||||||||
GROSS PROFIT
|
114,027
|
94,601
|
201,847
|
165,750
|
||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||
Research and development
|
3,567
|
3,183
|
6,669
|
5,998
|
||||||||||||
Sales and marketing
|
51,059
|
39,653
|
92,772
|
70,502
|
||||||||||||
General and administrative
|
2,392
|
2,562
|
4,400
|
5,039
|
||||||||||||
TOTAL OPERATING EXPENSES
|
57,018
|
45,398
|
103,841
|
81,539
|
||||||||||||
INCOME FROM OPERATIONS
|
57,009
|
49,203
|
98,006
|
84,211
|
||||||||||||
Finance income (expense), net
|
4,445
|
(918
|
)
|
7,734
|
(539
|
)
|
||||||||||
INCOME BEFORE TAXES
|
61,454
|
48,285
|
105,740
|
83,672
|
||||||||||||
INCOME TAXES
|
5,725
|
4,237
|
9,506
|
8,649
|
||||||||||||
NET INCOME
|
55,729
|
44,048
|
96,234
|
75,023
|
||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||
Basic
|
0.67
|
0.54
|
1.16
|
0.91
|
||||||||||||
Diluted
|
0.65
|
0.52
|
1.12
|
0.88
|
||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||
Basic
|
83,405
|
82,216
|
83,280
|
82,590
|
||||||||||||
Diluted
|
85,650
|
84,663
|
85,579
|
85,236
|
June 30,
2023
|
December 31,
2022
|
|||||||
Assets
|
||||||||
CURRENT ASSETS:
|
||||||||
Cash and cash equivalents
|
159,855
|
97,540
|
||||||
Marketable securities
|
400,464
|
374,589
|
||||||
Short-term bank deposits
|
69,094
|
75,254
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
32,568
|
26,997
|
||||||
Other receivables
|
18,656
|
15,094
|
||||||
Inventories
|
38,568
|
39,897
|
||||||
TOTAL CURRENT ASSETS
|
719,205
|
629,371
|
||||||
NON-CURRENT ASSETS:
|
||||||||
Accounts receivable, net of allowance for doubtful accounts
|
3,871
|
3,973
|
||||||
Deferred income tax asset, net
|
2,350
|
3,094
|
||||||
Operating lease right-of-use assets
|
5,595
|
5,073
|
||||||
Property and equipment, net
|
2,463
|
2,298
|
||||||
Other investments
|
600
|
600
|
||||||
TOTAL NON-CURRENT ASSETS
|
14,879
|
15,038
|
||||||
TOTAL ASSETS
|
734,084
|
644,409
|
||||||
Liabilities and shareholders’ equity
|
||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
|
13,295
|
16,242
|
||||||
Contract liabilities
|
11,098
|
13,798
|
||||||
Other liabilities
|
36,340
|
51,980
|
||||||
TOTAL CURRENT LIABILITIES
|
60,733
|
82,020
|
||||||
NON-CURRENT LIABILITIES:
|
||||||||
Contract liabilities
|
3,038
|
3,959
|
||||||
Other liabilities
|
533
|
303
|
||||||
Operating lease liabilities
|
3,622
|
3,509
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
7,193
|
7,771
|
||||||
TOTAL LIABILITIES
|
67,926
|
89,791
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
666,158
|
554,618
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
734,084
|
644,409
|
Three months ended
June 30, |
Six months ended
June 30, |
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||
Net income
|
55,729
|
44,048
|
96,234
|
75,023
|
||||||||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||
Depreciation and amortization
|
184
|
155
|
372
|
293
|
||||||||||||
Share-based compensation expenses
|
6,505
|
6,353
|
10,714
|
9,447
|
||||||||||||
Allowance for doubtful accounts
|
261
|
142
|
239
|
352
|
||||||||||||
Loss on marketable securities, net
|
-
|
23
|
-
|
37
|
||||||||||||
Finance expenses (income), net
|
(1,197
|
)
|
851
|
(2,709
|
)
|
941
|
||||||||||
Deferred income taxes, net
|
43
|
169
|
62
|
147
|
||||||||||||
Changes in operating assets and liabilities:
|
||||||||||||||||
Increase in accounts receivable
|
(7,949
|
)
|
(8,247
|
)
|
(5,708
|
)
|
(4,294
|
)
|
||||||||
Increase in other receivables
|
(3,791
|
)
|
(398
|
)
|
(4,020
|
)
|
(1,593
|
)
|
||||||||
Decrease (increase) in inventories
|
2,243
|
(4,660
|
)
|
1,329
|
(8,734
|
)
|
||||||||||
Increase (decrease) in accounts payable
|
1,308
|
2,292
|
(2,947
|
)
|
3,054
|
|||||||||||
Increase (decrease) in other liabilities
|
7,211
|
4,105
|
(15,832
|
)
|
(770
|
)
|
||||||||||
Increase (decrease) in contract liabilities
|
(7,547
|
)
|
2,148
|
(3,621
|
)
|
4,931
|
||||||||||
Net cash provided by operating activities
|
53,000
|
46,981
|
74,113
|
78,834
|
||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||||||
Investment in short-term deposits
|
(100,000
|
)
|
(22,500
|
)
|
(106,000
|
)
|
(45,611
|
)
|
||||||||
Proceeds from short-term deposits
|
106,500
|
23,000
|
112,500
|
43,000
|
||||||||||||
Purchase of fixed assets
|
(194
|
)
|
(561
|
)
|
(535
|
)
|
(860
|
)
|
||||||||
Purchase of marketable securities
|
(54,190
|
)
|
(17,545
|
)
|
(172,542
|
)
|
(38,754
|
)
|
||||||||
Proceeds from sale of marketable securities
|
-
|
1,008
|
-
|
2,002
|
||||||||||||
Proceeds from maturity of marketable securities
|
60,891
|
14,224
|
152,028
|
25,157
|
||||||||||||
Net cash provided by (used in) investing activities
|
13,007
|
(2,374
|
)
|
(14,549
|
)
|
(15,066
|
)
|
|||||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||||||
Repurchase of ordinary shares
|
-
|
-
|
-
|
(42,637
|
)
|
|||||||||||
Exercise of options
|
827
|
204
|
2,500
|
365
|
||||||||||||
Net cash provided by (used in) financing activities
|
827
|
204
|
2,500
|
(42,272
|
)
|
|||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
60
|
(1,077
|
)
|
251
|
(1,228
|
)
|
||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS
|
66,894
|
43,734
|
62,315
|
20,268
|
||||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
92,961
|
44,670
|
97,540
|
68,136
|
||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
159,855
|
88,404
|
159,855
|
88,404
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||
Revenues by Category:
|
||||||||||||||||||||||||||||||||
Capital Equipment revenues - United States
|
73,828
|
54
|
%
|
62,960
|
56
|
%
|
123,579
|
51
|
%
|
107,720
|
54
|
%
|
||||||||||||||||||||
Capital Equipment revenues - International
|
40,635
|
30
|
%
|
35,560
|
31
|
%
|
77,008
|
32
|
%
|
62,743
|
31
|
%
|
||||||||||||||||||||
Total Capital Equipment revenues
|
114,463
|
84
|
%
|
98,520
|
87
|
%
|
200,587
|
83
|
%
|
170,463
|
85
|
%
|
||||||||||||||||||||
Consumables and service revenues
|
21,618
|
16
|
%
|
15,027
|
13
|
%
|
41,568
|
17
|
%
|
29,005
|
15
|
%
|
||||||||||||||||||||
Total Net Revenue
|
136,081
|
100
|
%
|
113,547
|
100
|
%
|
242,155
|
100
|
%
|
199,468
|
100
|
%
|
Three months ended June 30,
|
Six months ended June 30,
|
|||||||||||||||||||||||||||||||||||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||||||||||||||||||||||||||||||||||
%
|
%
|
%
|
%
|
|||||||||||||||||||||||||||||||||||||||||||||
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
United States
|
International
|
Total
|
|||||||||||||||||||||||||||||||||||||
Revenues by Technology:
|
||||||||||||||||||||||||||||||||||||||||||||||||
Minimal-Invasive
|
86
|
73
|
81
|
84
|
74
|
80
|
88
|
74
|
83
|
84
|
72
|
79
|
||||||||||||||||||||||||||||||||||||
Hands-Free
|
11
|
6
|
9
|
14
|
5
|
11
|
10
|
6
|
8
|
13
|
6
|
11
|
||||||||||||||||||||||||||||||||||||
Non-Invasive
|
3
|
21
|
10
|
2
|
21
|
9
|
2
|
20
|
9
|
3
|
22
|
10
|
||||||||||||||||||||||||||||||||||||
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
100
|
Three months ended June 30, 2023
|
Three months ended June 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
136,081
|
-
|
136,081
|
113,547
|
-
|
113,547
|
||||||||||||||||||
COST OF REVENUES
|
22,054
|
(547
|
)
|
21,507
|
18,946
|
(496
|
)
|
18,450
|
||||||||||||||||
GROSS PROFIT
|
114,027
|
547
|
114,574
|
94,601
|
496
|
95,097
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
3,567
|
(757
|
)
|
2,810
|
3,183
|
(866
|
)
|
2,317
|
||||||||||||||||
Sales and marketing
|
51,059
|
(4,731
|
)
|
46,328
|
39,653
|
(4,459
|
)
|
35,194
|
||||||||||||||||
General and administrative
|
2,392
|
(470
|
)
|
1,922
|
2,562
|
(532
|
)
|
2,030
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
57,018
|
(5,958
|
)
|
51,060
|
45,398
|
(5,857
|
)
|
39,541
|
||||||||||||||||
INCOME FROM OPERATIONS
|
57,009
|
6,505
|
63,514
|
49,203
|
6,353
|
55,556
|
||||||||||||||||||
Finance income (expense), net
|
4,445
|
-
|
4,445
|
(918
|
)
|
-
|
(918
|
)
|
||||||||||||||||
INCOME BEFORE TAXES
|
61,454
|
6,505
|
67,959
|
48,285
|
6,353
|
54,638
|
||||||||||||||||||
INCOME TAXES
|
5,725
|
-
|
5,725
|
4,237
|
-
|
4,237
|
||||||||||||||||||
NET INCOME
|
55,729
|
6,505
|
62,234
|
44,048
|
6,353
|
50,401
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
0.67
|
0.75
|
0.54
|
0.61
|
||||||||||||||||||||
Diluted
|
0.65
|
0.72
|
0.52
|
0.59
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
83,405
|
83,405
|
82,216
|
82,216
|
||||||||||||||||||||
Diluted
|
85,650
|
86,243
|
84,663
|
85,366
|
Six months ended June 30, 2023
|
Six months ended June 30, 2022
|
|||||||||||||||||||||||
GAAP
|
Share Based
Compensation |
Non-GAAP
|
GAAP
|
Share Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
242,155
|
-
|
242,155
|
199,468
|
-
|
199,468
|
||||||||||||||||||
COST OF REVENUES
|
40,308
|
(901
|
)
|
39,407
|
33,718
|
(810
|
)
|
32,908
|
||||||||||||||||
GROSS PROFIT
|
201,847
|
901
|
202,748
|
165,750
|
810
|
166,560
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
6,669
|
(1,258
|
)
|
5,411
|
5,998
|
(1,391
|
)
|
4,607
|
||||||||||||||||
Sales and marketing
|
92,772
|
(7,769
|
)
|
85,003
|
70,502
|
(6,354
|
)
|
64,148
|
||||||||||||||||
General and administrative
|
4,400
|
(786
|
)
|
3,614
|
5,039
|
(892
|
)
|
4,147
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
103,841
|
(9,813
|
)
|
94,028
|
81,539
|
(8,637
|
)
|
72,902
|
||||||||||||||||
INCOME FROM OPERATIONS
|
98,006
|
10,714
|
108,720
|
84,211
|
9,447
|
93,658
|
||||||||||||||||||
Finance income (expense),net
|
7,734
|
-
|
7,734
|
(539
|
)
|
-
|
(539
|
)
|
||||||||||||||||
INCOME BEFORE TAXES
|
105,740
|
10,714
|
116,454
|
83,672
|
9,447
|
93,119
|
||||||||||||||||||
INCOME TAXES
|
9,506
|
-
|
9,506
|
8,649
|
-
|
8,649
|
||||||||||||||||||
NET INCOME
|
96,234
|
10,714
|
106,948
|
75,023
|
9,447
|
84,470
|
||||||||||||||||||
NET INCOME PER SHARE:
|
||||||||||||||||||||||||
Basic
|
1.16
|
1.28
|
0.91
|
1.02
|
||||||||||||||||||||
Diluted
|
1.12
|
1.24
|
0.88
|
0.98
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
|
||||||||||||||||||||||||
Basic
|
83,280
|
83,280
|
82,590
|
82,590
|
||||||||||||||||||||
Diluted
|
85,579
|
86,062
|
85,236
|
85,786
|