InMode Ltd. Q4 FY2024 earnings call

• Launched 2 new platforms in 2024: IgniteRF and OptimasMAX, with positive early feedback. - Plan to launch 2 new platforms in 2025: fractional laser CO2 and another medical platform. - Maintained innovation leadership in the aesthetic market. - Repurchased over $285 million of shares in 2024, representing ~19% of share capital. - Made management changes in sales and subsidiaries, including refreshing management in Europe, U.S., and Asia. - Strong balance sheet with cash and equivalents of $596.5 million as of December 31, 2024.

In the fourth quarter of 2024, total revenue was $97.9 million with a GAAP gross margin of 79%. For the full year 2024, total revenue was $394.8 million, a 20% decrease from 2023. Minimally invasive technology platforms accounted for 86% of Q4 revenue and 87% of full-year 2024 revenue. Consumables and service accounted for 20% of 2024 revenue, up from 16% in 2023. Fourth quarter sales outside the U.S. were $35.2 million (36% of sales), a 23% decrease year-over-year. Full-year 2024 sales outside the U.S. were $150 million (38% of sales), a 19% decrease year-over-year.

• 2025 revenue guidance: $395 million to $405 million. - Non-GAAP gross margin guidance: 80% to 82%. - Non-GAAP income from operations guidance: $130 million to $135 million. - Non-GAAP earnings per diluted share guidance: $1.95 to $1.99.

• Macro-economic factors affecting the aesthetic industry. - Potential M&A opportunities not currently in the pipeline. - Supply chain risks related to tariffs and import taxes. - Uncertainty in economic recovery affecting demand for aesthetic procedures.

Q: Danielle Antalffy asked about capital deployment and M&A.

A: Moshe Mizrahy said they are always exploring M&A but haven't found synergetic opportunities yet, so focusing on share buybacks.

Q: Matt Miksic asked about management structure changes.

A: Moshe Mizrahy discussed refreshes in management in Europe, U.S., and Asia, including new roles and changes in sales territories.

Q: Michael Sarcone asked about seasonality in 2025.

A: Yair Malca said they expect more traditional seasonality in 2025 with Q1 being slowest, Q2 strong, Q3 soft, and Q4 strongest.

Q: Caitlin Cronin asked about consumables and capital return.

A: Moshe Mizrahy said consumables were down ~20% globally, and Yair Malca discussed tax-efficient share repurchases.

Q: Mike Matson asked about EPS guidance and supply chain.

A: Yair Malca said EPS guidance doesn't account for future buybacks, and Moshe Mizrahy said revenue decrease was due to demand, not supply chain issues.

Q: Jeff Johnson asked about gross margin.

A: Moshe Mizrahy said gross margin slipped due to revenue decline and component cost increases, but expects recovery in 2025.

Q: Sam Eiber asked about CO2 laser timing and adjacent products.

A: Moshe Mizrahy said CO2 laser expected to see traction by end of Q1/start of Q2 2025, and adjacent products like Empower and Envision were down ~20% in 2024.