• Q4 2024 Revenue: $97.9 million
• Full Year 2024 Revenue: $394.8 million, a 20% decrease compared to 2023
• Q4 2024 Gross Margin (GAAP): 79%
• Full Year 2024 Gross Margin (Non-GAAP): 81%
• Minimally Invasive Technology Platforms Revenue: 86% of Q4 and 87% of full year 2024 total revenues
• Consumables and Service Revenue: 20% of full year 2024 revenue, up from 16% in 2023
• International Sales Q4 2024: $35.2 million, 36% of sales, a 23% decrease year-over-year
• Full Year 2024 International Sales: $150 million, 38% of sales, a 19% decrease compared to 2023
• Q4 2024 GAAP Operating Expenses: $49.8 million
• Full Year 2024 GAAP Operating Expenses: $204.5 million, a 5% decrease year-over-year
• Q4 2024 GAAP Operating Margin: 28%
• Full Year 2024 GAAP Operating Margin: 28%
• Q4 2024 Non-GAAP Operating Margin: 32%
• Full Year 2024 Non-GAAP Operating Margin: 33%
• Q4 2024 GAAP Diluted EPS: $1.14
• Full Year 2024 GAAP Diluted EPS: $2.25
• Q4 2024 Non-GAAP Diluted EPS: $0.42
• Full Year 2024 Non-GAAP Diluted EPS: $1.76
• Cash and Cash Equivalents (as of Dec 31, 2024): $596.5 million
• Q4 2024 Cash from Operating Activities: $32.4 million
• 2024 Share Repurchase: $285 million, 16 million ordinary shares
• 2025 Revenue Guidance: $395 million to $405 million
• 2025 Non-GAAP Gross Margin Guidance: 80% to 82%
• 2025 Non-GAAP Income from Operations Guidance: $130 million to $135 million
• 2025 Non-GAAP EPS Guidance: $1.95 to $1.99

• Warning! GuruFocus has detected 3 Warning Signs with INMD.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• InMode Ltd (NASDAQ:INMD) launched two new platforms, IgniteRF and OptimasMax, which are expected to see better adoption in 2025.
• The company maintained a strong emphasis on R&D, driving innovation despite challenging market conditions.
• InMode Ltd (NASDAQ:INMD) returned more than $285 million to shareholders through share repurchases, representing approximately 19% of its share capital.
• The company plans to launch two new platforms in 2025, including a fractional laser CO2 platform, which is expected to gain traction.
• InMode Ltd (NASDAQ:INMD) ended the year with a strong balance sheet, holding cash and cash equivalents, marketable securities, and deposits totaling $596.5 million.

Negative Points

• InMode Ltd (NASDAQ:INMD) faced a 20% decrease in total revenue for 2024 compared to 2023, attributed to decreased demand and high interest rates.
• International sales outside the US decreased by 19% for the full year of 2024 compared to 2023.
• The company experienced a decline in minimally invasive procedures, impacting consumables and service revenue.
• Gross margin decreased slightly due to increased component costs and lower sales volumes.
• InMode Ltd (NASDAQ:INMD) does not foresee an immediate economic turnaround, with no signs of improvement in the macroeconomic environment at the start of 2025.

Q & A Highlights

Q: Can you provide more details on capital deployment and share repurchase plans? Are you still considering M&A opportunities? A: Moshe Mizrahy, CEO: We are always exploring M&A opportunities, but currently, we haven't found anything synergetic. Therefore, we expanded our buyback program, repurchasing $285 million in 2024 and announcing another 10% buyback. If a suitable opportunity arises, we will explore it.

Q: Are you seeing any signs of economic recovery that could impact your business positively in 2025? A: Moshe Mizrahy, CEO: Unfortunately, we don't see signs of economic recovery yet. We previously estimated improvement in the second quarter of 2024, but that was incorrect. We remain cautious and will report any positive changes when they occur.

Q: Can you update us on the management changes and their impact on operations? A: Moshe Mizrahy, CEO: We made significant management changes in 2024, including new leadership in Europe and the US. We are focusing on direct sales to enhance market presence. In Asia, we appointed a new VP to drive growth. These changes aim to improve efficiency and market reach.

Q: How do you expect the business to recover once economic conditions improve? A: Moshe Mizrahy, CEO: Recovery will depend on interest rates decreasing and patients returning for minimally invasive procedures. We monitor disposable sales as an indicator. Once conditions improve, we expect demand for our systems to increase.

Q: What are your expectations for seasonality in 2025 compared to 2024? A: Yair Malca, CFO: We anticipate returning to traditional seasonality in 2025, with Q1 being the slowest and Q4 the strongest. This contrasts with 2024, where seasonality was atypical.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.