PR Newswire
YOKNEAM, Israel, Feb. 10, 2021 /PRNewswire/ — InMode Ltd. (Nasdaq: INMD) (“InMode”), a leading global provider of innovative medical technologies, today announced consolidated financial results for its fourth quarter and full year ended December 31, 2020.
Fourth Quarter 2020 Highlights:
- Record quarterly revenues of $75.2 million, an increase of 60% compared to the fourth quarter of 2019; 65% of quarterly revenues derived from our proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 28% from our recently introduced hands-free platforms and 7% from our traditional laser and non-invasive RF platforms
- Record GAAP net income of $36.1 million, compared to $19.0 million in the fourth quarter of 2019; *non-GAAP net income of $39.9 million, compared to $19.3 million in the fourth quarter of 2019
- Record GAAP diluted earnings per share of $0.85, compared to $0.46 in the fourth quarter of 2019; *non-GAAP diluted earnings per share of $0.94, compared to $0.46 in the fourth quarter of 2019
- Total cash position of $260.5 million as of December 31, 2020, including cash and cash equivalents, marketable securities and short-term bank deposits
Full Year 2020 Highlights:
- Record full year revenues of $206.1 million, an increase of 32% as compared to 2019; 62% of revenues derived from our proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 32% from our recently introduced hands-free platforms and 6% from our traditional laser and non-invasive RF platforms
- Record GAAP net income of $75.0 million, compared to $61.1 million in 2019; *non-GAAP net income of $89.1 million, compared to $62.4 million in 2019
- Record GAAP diluted earnings per share of $1.78, compared to $1.60 in 2019; *non-GAAP diluted earnings per share of $2.11, compared to $1.63 in 2019
- 76% increase in international (non-U.S.) revenues as compared to 2019
|
(U.S. dollars in thousands, except for per share data) |
||||
|
|
|
|
|
|
|
Revenues |
$75,187 |
$47,002 |
$206,107 |
$156,361 |
|
Gross Margins |
86% |
87% |
85% |
87% |
|
Net Income Attributable to InMode Ltd. |
$36,114 |
$19,038 |
$75,030 |
$61,145 |
|
Earnings per Diluted Share |
$0.85 |
$0.46 |
$1.78 |
$1.60 |
|
(U.S. dollars in thousands, except for per share data) |
||||
|
|
|
|
|
|
|
Gross Margins |
86% |
87% |
85% |
87% |
|
Net Income Attributable to InMode Ltd. |
$39,850 |
$19,311 |
$89,143 |
$62,390 |
|
Earnings per Diluted Share |
$0.94 |
$0.46 |
$2.11 |
$1.63 |
*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
“We reported outstanding 2020 results with record fourth quarter and full year financial performance, despite the disruptions caused by the COVID-19 pandemic. We took bold strategic steps this year to solidify our leading market position, expanding our sales & marketing efforts and increasing our headcount with the industry’s top professionals,” commented Moshe Mizrahy, InMode’s CEO.
“Our innovative hands-free and minimally invasive technology gained significant traction this year, driven by new product launches such as Evolve, Evoke and Morpheus8,” commented Dr. Michael Kreindel, InMode’s CTO and co-founder. “These unique platforms offer effective full-body and facial aesthetic solutions for patients who want to avoid hospitalization and invasive procedures, which are required for traditional plastic surgery. We are being recognized across the market as a true innovator and plan to introduce our electro-surgical technologies into new medical categories such as gynecology and ophthalmology in 2021.”
“We are extremely pleased with the progress achieved in 2020. The focus our sales and marketing team maintained throughout one of the most difficult times in history is a testament to the quality and dedication of our team,” commented Shakil Lakhani, President of North America. “Through the investments we made this year, we developed a successful formula to create demand for our new technologies, engage physicians, and convert growing interest into sales.”
Fourth Quarter 2020 Financial Results
“Total revenues for the fourth quarter of 2020 were $75.2 million, an increase of 60% as compared to the fourth quarter of 2019. The increase in revenues was primarily attributable to the expansion of our direct sales organization in the United States and the continued momentum of our hands-free technology, as well as the recently introduced Morpheus8 Body fractional technology. Moreover, we continued to gain traction in international markets, mainly in Asia-Pacific regions, with international revenues growing 102% year-over-year,” commented Yair Malca, CFO.
GAAP gross margin for the fourth quarter of 2020 was 86%, compared to a gross margin of 87% in the fourth quarter of 2019. *Non-GAAP gross margin for the fourth quarter of 2020 was 86%, compared to a gross margin of 87% in the fourth quarter of 2019. This decrease was primarily attributable to the increase of sales in international markets, mainly in countries where we operate through distributors.
GAAP operating margin for the fourth quarter of 2020 was 47%, compared to 38% in the fourth quarter of 2019. *Non-GAAP operating margin for the fourth quarter of 2020 was 51%, compared to 39% in the fourth quarter of 2019. This increase in operating margin was primarily attributable to economies of scale derived from the Company’s accelerated growth, as well as a decrease in marketing activities in the United States such as event and conference participation, due to restrictions caused by the COVID-19 pandemic.
InMode reported GAAP net income attributable to InMode Ltd of $36.1 million, or $0.85 per diluted share, in the fourth quarter of 2020 compared to $19.0 million, or $0.46 per diluted share, in the fourth quarter of 2019. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd of $39.9 million, or $0.94 per diluted share, in the fourth quarter of 2020, compared to $19.3 million, or $0.46 per diluted share, in the fourth quarter of 2019.
Full Year 2020 Financial Results
Total revenues for 2020 were $206.1 million, an increase of 32% as compared to 2019. This increase was primarily attributable to strong demand for our hands-free platforms, which contributed $65.3 million to total 2020 revenues. In addition, InMode gained traction in international markets, with international revenues growing 76% year-over-year.
GAAP gross margin for 2020 was 85%, compared to a gross margin of 87% in 2019. *Non-GAAP gross margin for 2020 was 85%, compared to a gross margin of 87% in 2019. This decrease was primarily attributable to the increase of sales in international markets, mainly in countries where we operate through distributors.
GAAP operating margin for 2020 was 35%, compared to the operating margin of 38% in 2019. *Non-GAAP operating margin for 2020 was 42%, compared to the operating margin of 39% in the full year of 2019. This increasein *non-GAAP operating margin was primarily attributable to decreased marketing activities in the United States such as event and conference participation, due to restrictions caused by the COVID-19 pandemic.
InMode reported GAAP net income attributable to InMode Ltd. of $75.0 million, or $1.78 per diluted share, in 2020. This is compared with GAAP net income attributable to InMode Ltd of $61.1 million, or $1.60 per diluted share, in 2019. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd. of $89.1 million, or $2.11 per diluted share, in the full year of 2020, compared to net income attributable to InMode Ltd. of $62.4 million, or $1.63 per diluted share, in the full year of 2019.
As of December 31, 2020, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $260.5 million.
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 $250 million to $260 million
- *Non-GAAP gross margin between 84% to 86%
- *Non-GAAP income from operations between $100 million to $104 million
- *Non-GAAP earnings per diluted share between $2.34 to $2.45
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, February 10, 2021, at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2020 financial results.
The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10151158/e064a3345e. 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 February 10, 2021 at 12 p.m. Eastern Time to February 24, 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: 10151158
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 18, 2020, 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: [email protected] |
Investor Relations Contact: Miri Segal MS-IR LLC Phone: (917) 607-8654 Email: [email protected] |
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
|
75,187 |
47,002 |
206,107 |
156,361 |
|
|
10,575 |
6,045 |
30,849 |
20,238 |
|
|
64,612 |
40,957 |
175,258 |
136,123 |
|
|
||||
|
Research and development |
2,260 |
1,587 |
9,467 |
5,699 |
|
Sales and marketing |
25,239 |
20,127 |
86,532 |
66,848 |
|
General and administrative |
1,673 |
1,265 |
6,418 |
3,958 |
|
|
29,172 |
22,979 |
102,417 |
76,505 |
|
|
35,440 |
17,978 |
72,841 |
59,618 |
|
Finance income, net |
1,228 |
1,159 |
3,291 |
2,423 |
|
|
36,668 |
19,137 |
76,132 |
62,041 |
|
|
598 |
165 |
1,107 |
883 |
|
|
36,070 |
18,972 |
75,025 |
61,158 |
|
Add: Loss (net income) attributable to non-controlling interests |
44 |
66 |
5 |
(13) |
|
|
36,114 |
19,038 |
75,030 |
61,145 |
|
|
||||
|
Basic |
0.96 |
0.58 |
2.08 |
2.09 |
|
Diluted |
0.85 |
0.46 |
1.78 |
1.60 |
|
|
||||
|
Basic |
37,593 |
32,781 |
36,057 |
29,232 |
|
Diluted |
42,389 |
41,639 |
42,092 |
38,059 |
INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
|
|
|
|
|
||
|
|
||
|
Cash and cash equivalents |
68,938 |
44,727 |
|
Marketable securities) amortized cost of $141,544 and $119,983, respectively) |
142,007 |
120,144 |
|
Short-term bank deposits |
49,589 |
28,491 |
|
Accounts receivable, net of allowance for doubtful accounts of $672 and $432, respectively |
10,499 |
6,628 |
|
Other receivables |
3,575 |
3,810 |
|
Inventories |
14,983 |
9,408 |
|
|
289,591 |
213,208 |
|
|
||
|
Accounts receivable |
477 |
374 |
|
Other receivables |
2,894 |
– |
|
Deferred income taxes, net |
64 |
1,899 |
|
Operating lease right-of-use assets |
1,153 |
1,369 |
|
Property and equipment, net |
982 |
935 |
|
Other investments |
600 |
600 |
|
|
6,170 |
5,177 |
|
|
295,761 |
218,385 |
|
|
||
|
|
||
|
Accounts payable |
6,410 |
3,702 |
|
Contract liabilities |
11,900 |
15,587 |
|
Other liabilities |
16,720 |
13,205 |
|
|
35,030 |
32,494 |
|
|
||
|
Contract liabilities |
1,988 |
3,813 |
|
Other liabilities |
2,910 |
1,494 |
|
Operating lease liabilities |
358 |
744 |
|
Deferred income taxes, net |
– |
37 |
|
|
5,256 |
6,088 |
|
|
40,286 |
38,582 |
|
|
255,475 |
179,803 |
|
|
295,761 |
218,385 |
INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
|
|
||||
|
|
|
|
|
||
|
|
|||||
|
Net income |
36,070 |
18,972 |
75,025 |
61,158 |
|
|
Adjustments required to reconcile net income to net cash provided by operating activities: |
|||||
|
Depreciation and amortization |
109 |
88 |
416 |
302 |
|
|
Share-based compensation expenses |
3,231 |
358 |
12,845 |
1,557 |
|
|
Allowance for doubtful accounts |
(24) |
(55) |
442 |
78 |
|
|
Loss on marketable securities, net |
3 |
3 |
5 |
3 |
|
|
Finance income, net |
(614) |
(440) |
(625) |
(835) |
|
|
Deferred income taxes, net |
556 |
(383) |
1,729 |
(594) |
|
|
Changes in operating assets and liabilities: |
|||||
|
Decrease (increase) in accounts receivable |
5,667 |
1,046 |
(4,416) |
449 |
|
|
Increase in other receivables |
(1,687) |
(666) |
(2,647) |
(1,316) |
|
|
Increase in inventories |
(112) |
(913) |
(5,575) |
(2,445) |
|
|
Increase (decrease) in accounts payable |
2,127 |
(667) |
2,708 |
92 |
|
|
Increase in other liabilities |
113 |
1,676 |
4,830 |
4,094 |
|
|
Increase (decrease) in contract liabilities |
(3,852) |
8,400 |
(5,512) |
9,663 |
|
|
Decrease in accrued contingencies |
– |
– |
– |
(10,000) |
|
|
Net cash provided by operating activities |
41,587 |
27,419 |
79,225 |
62,206 |
|
|
|
|||||
|
Investment in short-term deposit |
(6,000) |
(13,500) |
(55,699) |
(47,810) |
|
|
Proceeds from short-term deposit |
– |
11,000 |
34,810 |
29,500 |
|
|
Purchase of fixed assets |
(35) |
(175) |
(463) |
(693) |
|
|
Other investments |
– |
(600) |
– |
(600) |
|
|
Purchase of marketable securities |
(50,295) |
(82,802) |
(169,689) |
(165,423) |
|
|
Proceeds from sale of marketable securities |
29,950 |
54,471 |
147,736 |
72,574 |
|
|
Net cash (used in) investing activities |
(26,380) |
(31,606) |
(43,305) |
(112,452) |
|
|
|
|||||
|
Proceeds from initial public offering of ordinary shares, net of offering costs |
– |
– |
– |
69,784 |
|
|
Repurchase of ordinary shares |
(17,218) |
– |
(17,218) |
– |
|
|
Exercise of options |
1,528 |
74 |
4,776 |
389 |
|
|
Net cash provided by (used in) financing activities |
(15,690) |
74 |
(12,442) |
70,173 |
|
|
|
586 |
135 |
733 |
79 |
|
|
|
103 |
(3,978) |
24,211 |
20,006 |
|
|
|
68,835 |
48,705 |
44,727 |
24,721 |
|
|
|
68,938 |
44,727 |
68,938 |
44,727 |
|
INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data)
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
|
||||
|
United States |
53,725 |
36,386 |
149,488 |
124,199 |
|
International |
21,462 |
10,616 |
56,619 |
32,162 |
|
|
75,187 |
47,002 |
206,107 |
156,361 |
|
U.S. as percentage of total revenue |
71% |
77% |
73% |
79% |
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)
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
75,187 |
– |
75,187 |
47,002 |
– |
47,002 |
|
|
10,575 |
(140) |
10,435 |
6,045 |
(32) |
6,013 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Research and development |
2,260 |
(132) |
2,128 |
1,587 |
(13) |
1,574 |
|
Sales and marketing |
25,239 |
(2,829) |
22,410 |
20,127 |
(271) |
19,856 |
|
General and administrative |
1,673 |
(130) |
1,543 |
1,265 |
(42) |
1,223 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income, net |
1,228 |
– |
1,228 |
1,159 |
– |
1,159 |
|
|
|
|
|
|
|
|
|
|
598 |
(505) |
93 |
165 |
85 |
250 |
|
|
|
|
|
|
|
|
|
Add: Loss attributable to non-controlling interests |
44 |
– |
44 |
66 |
– |
66 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
0.96 |
1.06 |
0.58 |
0.59 |
||
|
Diluted |
0.85 |
0.94 |
0.46 |
0.46 |
||
|
|
||||||
|
Basic |
37,593 |
37,593 |
32,781 |
32,781 |
||
|
Diluted |
42,389 |
42,490 |
41,639 |
41,657 |
||
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)
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
206,107 |
– |
206,107 |
156,361 |
– |
156,361 |
|
|
30,849 |
(520) |
30,329 |
20,238 |
(94) |
20,144 |
|
|
|
|
|
|
|
|
|
|
||||||
|
Research and development |
9,467 |
(2,264) |
7,203 |
5,699 |
(179) |
5,520 |
|
Sales and marketing |
86,532 |
(9,398) |
77,134 |
66,848 |
(1,158) |
65,690 |
|
General and administrative |
6,418 |
(663) |
5,755 |
3,958 |
(126) |
3,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance income, net |
3,291 |
– |
3,291 |
2,423 |
– |
2,423 |
|
|
|
|
|
|
|
|
|
|
1,107 |
(1,268) |
(161) |
883 |
312 |
1,195 |
|
|
|
|
|
|
|
|
|
Add: Loss (net income) attributable to non-controlling interests |
5 |
– |
5 |
(13) |
– |
(13) |
|
|
|
|
|
|
|
|
|
|
||||||
|
Basic |
2.08 |
2.47 |
2.09 |
2.13 |
||
|
Diluted |
1.78 |
2.11 |
1.60 |
1.63 |
||
|
|
||||||
|
Basic |
36,057 |
36,057 |
29,232 |
29,232 |
||
|
Diluted |
42,092 |
42,201 |
38,059 |
38,085 |
||
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SOURCE InMode Ltd.
