InMode Reports Fourth Quarter and Full Year 2024 Financial Results; Board of Directors Has Approved a New Share Repurchase Program
Rhea-AI Summary
InMode (NASDAQ: INMD) reported Q4 2024 revenues of $97.9 million, down 23% from Q4 2023, and full-year 2024 revenues of $394.8 million, representing a 20% year-over-year decrease. The company's Q4 GAAP net income was $82.8 million ($1.14 per share), while non-GAAP net income was $31.1 million ($0.42 per share).
The company returned $285.4 million to shareholders through share repurchases in 2024, representing approximately 19% of share capital. The Board approved a new 10% share repurchase program, which combined with 2024 buybacks, represents about 27% of shares outstanding within a 15-month timeframe.
For 2025, InMode projects revenues between $395-405 million, with non-GAAP earnings per diluted share expected between $1.95-1.99. The company maintains a strong cash position of $596.5 million as of December 31, 2024.
Positive
- Strong cash position of $596.5 million
- Significant capital return to shareholders through $285.4 million in share repurchases
- New 10% share repurchase program approved
- High gross margins maintained at 79-80%
Negative
- Q4 2024 revenue declined 23% to $97.9 million
- Full-year 2024 revenue decreased 20% to $394.8 million
- Q4 non-GAAP operating margin dropped to 32% from 45% in Q4 2023
- Consumables and service revenue decreased 3% in Q4 2024
- Non-GAAP EPS declined to $1.76 in 2024 from $2.57 in 2023
News Market Reaction
On the day this news was published, INMD gained 4.98%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Quarterly GAAP revenues of $97.9 million and full year revenue of
Returned
Together with new
YOKNEAM,
Fourth Quarter 2024 Highlights:
- Quarterly GAAP revenues of
$97.9 million $126.8 million - Quarterly revenues from consumables and service of
$19.9 million 3% compared to the fourth quarter of 2023. - GAAP operation income of
$27.9 million $31.3 million - Returned
$119.8 million - Total cash position of
$596.5 million
Full Year 2024 Highlights:
- Full year revenues of
$394.8 million 20% . - Full year revenues from consumables and service of
$79.3 million 1% compared to 2023. - GAAP operation income of
$112.5 million $195.7 million $129.1 million $219.3 million - Returned
$285.4 million
( | ||||
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Revenues | 394,818 | |||
Gross Margins | 79 % | 84 % | 80 % | 84 % |
Net Income | ||||
Earnings per Diluted Share | ||||
*Non-GAAP Results ( | ||||
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Gross Margins | 80 % | 84 % | 81 % | 84 % |
Net Income | ||||
Earnings per Diluted Share | ||||
*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between
Management Comments
"While we have a solid market position, our fourth quarter results were impacted by stronger than expected headwinds in the aesthetics industry that were intensified by broader macroeconomic challenges," said Moshe Mizrahy, Chief Executive Officer of InMode. "We have taken decisive actions to navigate this environment, and also ensure we're well positioned to benefit when market conditions recover. To that end, we remain committed to leading through innovation. Our recently launched Ignite and OptimasMAX platforms are in the early stages of generating revenue, and we expect to see greater traction from customers as the year progresses. In 2025, we also plan to launch two new platforms targeting the medical aesthetic and wellness markets, where we see opportunity. Thanks to the efforts of our global team, we remain steadfast in delivering excellent support and innovative technologies to our customers."
Yair Malca, Chief Financial Officer of InMode, added, "The strength of our balance sheet provides us the financial flexibility to evaluate the optimal path to allocate capital to drive enhanced shareholder value. We are pleased to report that during the fourth quarter of 2024, we completed our fourth share repurchase program that was originally announced in September 2024, repurchasing 7.68 million shares for
On February 3rd, our Board of Directors approved another tax-efficient share repurchase program of up to
Given the strength of our free cash flow and confidence in our business, we are also exploring, in consultation with financial, legal and tax advisors, returning significant additional capital by the end of the year to create further shareholder value. We will continue to carefully review and evaluate our approach to capital allocation, with a focus on ensuring we deliver enhanced value for all shareholders and will continue our dialogue with shareholders on this important process."
Fourth Quarter and Full Year 2024 Financial Results
Total GAAP revenues for the fourth quarter of 2024 were
GAAP gross margin for the fourth quarter of 2024 was
GAAP operating margin for the fourth quarter of 2024 was
InMode reported GAAP net income of
As of December 31, 2024, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of
As of December 31, 2024, the Company's
2025 Financial Outlook
Management provided an outlook for the full year of 2025 ending December 31, 2025. Based on our current estimates, management expects:
- Revenues between
$395 $405 million - *Non-GAAP gross margin between
80% and82% - *Non-GAAP income from operations to be between
$130 million $135 million - *Non-GAAP earnings per diluted share between
$1.95 $1.99
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
However, these estimates are based on management's current estimates, which may be updated.
The Current Situation in
Regarding the current situation in
Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its 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 InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the 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, Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer and Mr. Yair Malca, Chief Financial Officer, will host a conference call today, February 4, 2025, at 8:30 a.m. Eastern Time to discuss the fourth quarter and full year 2024 financial results.
The Company encourages participants to pre-register for the conference call using the following link:
https://dpregister.com/sreg/10195703/fe3de01ec4.
Callers will receive a unique dial-in number 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 who 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.
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=4AkhyaPz
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific 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 4, 2025, at 12 p.m. Eastern Time to February 13, 2025, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:
Replay Dial-in
Replay Dial-in Canada TOLL-FREE: 855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 4023671
To access the replay using an international dial-in number, please select the link below:
https://services.choruscall.com/ccforms/replay.html
A replay of the conference call 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 2025 revenue projection described above. 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, strategic 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. Consequently, 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 04, 2025, 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 pertain only as of the date of this press release.
Company Contact: Yair Malca Chief Financial Officer Phone: (949) 305-0108 Email: Yair.Malca@inmodemd.com | Investor Relations Contact: Miri Segal MS-IR LLC Email: ir@inmodemd.com
|
INMODE LTD. | |||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||
( | |||||
(Unaudited) | |||||
Three months ended | Year Ended December 31, | ||||
2024 | 2023 | 2024 | 2023 | ||
REVENUES | 97,853 | 126,781 | 394,818 | 492,048 | |
COST OF REVENUES | 20,216 | 20,264 | 77,752 | 80,708 | |
GROSS PROFIT | 77,637 | 106,517 | 317,066 | 411,340 | |
OPERATING EXPENSES: | |||||
Research and development | 2,667 | 3,473 | 13,137 | 13,410 | |
Sales and marketing | 44,653 | 49,451 | 181,366 | 193,042 | |
General and administrative | 2,453 | 2,349 | 10,032 | 9,228 | |
TOTAL OPERATING EXPENSES | 49,773 | 55,273 | 204,535 | 215,680 | |
OPERATIONS INCOME | 27,864 | 51,244 | 112,531 | 195,660 | |
Finance income, net | 4,346 | 8,920 | 30,938 | 21,607 | |
INCOME BEFORE INCOME TAXES | 32,210 | 60,164 | 143,469 | 217,267 | |
INCOME TAXES BENEFIT (EXPENSES) | 50,561 | (4,999) | 37,806 | (19,348) | |
NET INCOME | 82,771 | 55,165 | 181,275 | 197,919 | |
EARNINGS PER SHARE: | |||||
Basic | 1.15 | 0.66 | 2.29 | 2.37 | |
Diluted | 1.14 | 0.64 | 2.25 | 2.30 | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) | |||||
Basic | 71,874 | 83,862 | 79,306 | 83,534 | |
Diluted | 72,787 | 85,835 | 80,597 | 85,954 | |
INMODE LTD. | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
( | ||
(Unaudited) | ||
December 31, 2024 | December 31, 2023 | |
Assets | ||
CURRENT ASSETS: | ||
Cash and cash equivalents | 155,329 | 144,411 |
Marketable securities (amortized cost of | 267,688 | 373,647 |
Short-term bank deposits | 173,455 | 223,547 |
Accounts receivable, net of allowance for credit losses of | 36,335 | 42,362 |
Prepaid expense and other receivables | 22,097 | 16,268 |
Inventories | 59,548 | 45,095 |
TOTAL CURRENT ASSETS | 714,452 | 845,330 |
NON-CURRENT ASSETS: | ||
Accounts receivable, net of allowance for credit losses of | 3,176 | 3,670 |
Deferred income tax asset | 56,285 | 1,506 |
Operating lease right-of-use assets | 8,732 | 9,698 |
Property and equipment, net | 2,322 | 2,382 |
Other investments | 700 | 700 |
TOTAL NON-CURRENT ASSETS | 71,215 | 17,956 |
TOTAL ASSETS | 785,667 | 863,286 |
Liabilities and shareholders' equity | ||
CURRENT LIABILITIES: | ||
Accounts payable | 13,782 | 13,966 |
Contract liabilities | 16,755 | 10,923 |
Other liabilities | 39,314 | 39,247 |
TOTAL CURRENT LIABILITIES | 69,851 | 64,136 |
NON-CURRENT LIABILITIES: | ||
Contract liabilities | 3,336 | 3,766 |
Other liabilities | 3,356 | 1,399 |
Operating lease liabilities | 5,311 | 6,613 |
TOTAL NON-CURRENT LIABILITIES | 12,003 | 11,778 |
TOTAL LIABILITIES | 81,854 | 75,914 |
TOTAL SHAREHOLDERS' EQUITY | 703,813 | 787,372 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 785,667 | 863,286 |
INMODE LTD. | ||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
( | ||||||
(Unaudited) | ||||||
Three months ended | Year Ended | |||||
2024 | 2023 | 2024 | 2023 | |||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net income | 82,771 | 55,165 | 181,275 | 197,919 | ||
Adjustments required to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization | 248 | 122 | 728 | 623 | ||
Share-based compensation expenses | 3,447 | 6,322 | 16,569 | 23,600 | ||
Change in allowance for credit losses of trade receivable | 158 | 355 | 572 | 1,020 | ||
Loss (Gain) on marketable securities, net | (3) | - | 167 | - | ||
Finance expenses (income), net | 1,533 | (1,581) | (4,401) | (4,714) | ||
Deferred income tax assets, net | (55,121) | (30) | (55,179) | (184) | ||
Changes in operating assets and liabilities: | ||||||
Decrease (increase) in accounts receivable (current and non-current) | 4,025 | 377 | 5,949 | (16,084) | ||
Decrease (increase) in other receivables | 1,879 | 3,143 | (5,698) | (2,224) | ||
Increase in inventories | (1,264) | (5,106) | (14,453) | (5,198) | ||
Increase (decrease) in accounts payable | (531) | 1,633 | (184) | (2,276) | ||
Increase (decrease) in other liabilities | (4,243) | 204 | 1,917 | (12,588) | ||
Increase (decrease) in contract liabilities (current and non-current) | (457) | 562 | 5,402 | (3,068) | ||
Net cash provided by operating activities | 32,442 | 61,166 | 132,664 | 176,826 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Investment in short-term deposits | (3,500) | (67,101) | (168,187) | (233,241) | ||
Proceeds from short-term deposits | 67,100 | - | 218,740 | 85,090 | ||
Purchase of fixed assets | (234) | (21) | (669) | (705) | ||
Other investments | - | (100) | - | (100) | ||
Purchase of marketable securities | (59,708) | (52,527) | (336,221) | (245,337) | ||
Proceeds from sale of marketable securities | 21,146 | 5,000 | 90,754 | 5,000 | ||
Proceeds from maturity of marketable securities | 53,012 | 63,159 | 357,789 | 253,229 | ||
Net cash provided by (used in) investing activities | 77,816 | (51,590) | 162,206 | (136,064) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Repurchase of ordinary shares | (119,849) | - | (285,385) | - | ||
Exercise of options | 1,420 | 275 | 2,614 | 5,504 | ||
Net cash provided by (used in) financing activities | (118,429) | 275 | (282,771) | 5,504 | ||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,338) | 827 | (1,181) | 605 | ||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (9,509) | 10,678 | 10,918 | 46,871 | ||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 164,838 | 133,733 | 144,411 | 97,540 | ||
CASH AND CASH EQUIVALENTS AT END OF YEAR | 155,329 | 144,411 | 155,329 | 144,411 | ||
INMODE LTD. | |||||||||||
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||
( | |||||||||||
(Unaudited) | |||||||||||
Three months ended December 31, | Year ended December 31, | ||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||
Revenues by Category: | |||||||||||
Capital Equipment revenues - | 53,128 | 55 % | 69,253 | 55 % | 204,520 | 52 % | 260,801 | 53 % | |||
Capital Equipment revenues - International | 24,836 | 25 % | 37,004 | 29 % | 111,027 | 28 % | 151,288 | 31 % | |||
Total Capital Equipment revenues | 77,964 | 80 % | 106,257 | 84 % | 315,547 | 80 % | 412,089 | 84 % | |||
Consumables and service revenues | 19,889 | 20 % | 20,524 | 16 % | 79,271 | 20 % | 79,959 | 16 % | |||
Total Revenue | 97,853 | 100 % | 126,781 | 100 % | 394,818 | 100 % | 492,048 | 100 % | |||
Three months ended December 31, | Year ended December 31, | |||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||
% | % | % | % | |||||||||
International | Total | International | Total | International | Total | International | Total | |||||
Revenues by Technology: | ||||||||||||
Minimal-Invasive | 93 | 76 | 86 | 84 | 80 | 83 | 92 | 80 | 87 | 86 | 77 | 83 |
Hands-Free | 5 | 3 | 5 | 12 | 4 | 9 | 6 | 3 | 5 | 11 | 5 | 8 |
Non-Invasive | 2 | 21 | 9 | 4 | 16 | 8 | 2 | 17 | 8 | 3 | 18 | 9 |
100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |
INMODE LTD. | |||||||
RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF | |||||||
INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
( | |||||||
(Unaudited) | |||||||
Three months ended December 31, 2024 |
Three months ended December 31, 2023 | ||||||
GAAP |
Share Based |
Tax benefit (1) |
Non-GAAP |
GAAP |
Share Based |
Non-GAAP | |
REVENUES | 97,853 | - | - | 97,853 | 126,781 | - | 126,781 |
COST OF REVENUES | 20,216 | (472) | - | 19,744 | 20,264 | (573) | 19,691 |
GROSS PROFIT | 77,637 | 472 | - | 78,109 | 106,517 | 573 | 107,090 |
OPERATING EXPENSES: | |||||||
Research and development | 2,667 | (300) | - | 2,367 | 3,473 | (665) | 2,808 |
Sales and marketing | 44,653 | (2,360) | - | 42,293 | 49,451 | (4,611) | 44,840 |
General and administrative | 2,453 | (315) | - | 2,138 | 2,349 | (473) | 1,876 |
TOTAL OPERATING |
49,773 |
(2,975) |
- |
46,798 |
55,273 | (5,749) | 49,524 |
OPERATIONS INCOME | 27,864 | 3,447 | - | 31,311 | 51,244 | 6,322 | 57,566 |
Finance income, net | 4,346 | - | - | 4,346 | 8,920 | - | 8,920 |
INCOME BEFORE INCOME TAXES | 32,210 | 3,447 | - | 35,657 | 60,164 | 6,322 | 66,486 |
INCOME TAXES BENEFIT (EXPENSES) |
50,561 |
- |
(55,137) |
(4,576) |
(4,999) | - | (4,999) |
NET INCOME | 82,771 | 3,447 | (55,137) | 31,081 | 55,165 | 6,322 | 61,487 |
EARNINGS PER SHARE: | |||||||
Basic |
1.15 |
0.43 |
0.66 | 0.73 | |||
Diluted | 1.14 | 0.42 | 0.64 | 0.71 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) | |||||||
Basic | 71,874 | 71,874 | 83,862 | 83,862 | |||
Diluted | 72,787 | 73,139 | 85,835 | 86,196 | |||
(1) Tax benefit recorded during the year ended December 31, 2024, as a result of a release of valuation allowance on our deferred tax assets in
Year Ended December 31, 2024 | Year Ended December 31, 2023 | ||||||
GAAP | Share Based |
Tax benefit (1) | Non-GAAP | GAAP | Share Based | Non-GAAP | |
REVENUES | 394,818 | - | - | 394,818 | 492,048 | - | 492,048 |
COST OF REVENUES | 77,752 | (1,833) | - | 75,919 | 80,708 | (2,046) | 78,662 |
GROSS PROFIT | 317,066 | 1,833 | - | 318,899 | 411,340 | 2,046 | 413,386 |
OPERATING EXPENSES: | |||||||
Research and development | 13,137 | (2,177) | - | 10,960 | 13,410 | (2,652) | 10,758 |
Sales and marketing | 181,366 | (11,367) | 169,999 | 193,042 | (17,167) | 175,875 | |
General and administrative | 10,032 | (1,192) | - | 8,840 | 9,228 | (1,735) | 7,493 |
TOTAL OPERATING | 204,535 | (14,736) |
- | 189,799 | 215,680 | (21,554) |
194,126 |
OPERATIONS INCOME | 112,531 | 16,569 | - | 129,100 | 195,660 | 23,600 |
219,260 |
Finance income, net | 30,938 | - | - | 30,938 | 21,607 | - | 21,607 |
INCOME BEFORE INCOME TAXES | 143,469 | 16,569 | - | 160,038 | 217,267 | 23,600 | 240,867 |
INCOME TAXES BENEFIT (EXPENSES) | 37,806 | - |
(55,137) | (17,331) | (19,348) | - | (19,348) |
NET INCOME | 181,275 | 16,569 | (55,137) | 142,707 | 197,919 | 23,600 | 221,519 |
EARNINGS PER | |||||||
Basic | 2.29 | 1.80 | 2.37 | 2.65 | |||
Diluted | 2.25 | 1.76 | 2.30 | 2.57 | |||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF EARNINGS PER SHARE (in thousands) | |||||||
Basic | 79,306 | 79,306 | 83,534 | 83,534 | |||
Diluted | 80,597 | 80,943 | 85,954 | 86,177 | |||
(1) Tax benefit recorded during the year ended December 31, 2024, as a result of a release of valuation allowance on our deferred tax assets in
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FAQ
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