InMode Reports Second Quarter 2024 Financial Results; Quarterly Revenue of $86.4M Represents 36.5% Year-Over-Year Decrease; Pro Forma Revenue (including new platform pre-orders not yet delivered) of $102.6M

YOKNEAM, Israel, Aug. 1, 2024 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2024.

Second Quarter 2024 Highlights:

• Quarterly GAAP revenue of $86.4 million, a decrease of 36.5% compared to the second quarter of 2023. InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 87% of its quarterly revenues, while 6% were derived from InMode's traditional laser and non-invasive RF platforms and 7% were derived from InMode's hands-free platforms. Pro-forma revenue (including pre-orders of new platforms not yet delivered) of $102.6 million.
• GAAP net income of $23.8 million, compared to $55.7 million in the second quarter of 2023; *non-GAAP net income of $29.0 million, compared to $62.2 million in the second quarter of 2023.**Pro-Forma non-GAAP net income of $39.8 million.
• GAAP diluted earnings per share of $0.28, compared to $0.65 in the second quarter of 2023; *non-GAAP diluted earnings per share of $0.34, compared to $0.72 in the second quarter of 2023.**Pro-Forma non-GAAP diluted earnings per share of $0.46.
• Quarterly revenues from consumables and service of $21.0 million, a decrease of 3% compared to the second quarter of 2023.
• Total cash position of $729.2 million as of June 30, 2024, including cash and cash equivalents, marketable securities, and short-term bank deposits.

Management Comments

"The second quarter was challenging for InMode and for the aesthetics industry in general," said Moshe Mizrahy, Chief Executive Officer. "The quarter was impacted mainly by macroeconomic factors and longer production time of new and complex platforms. However, we are encouraged by the level of interest and orders of our new platforms, Ignite and Optimus Max, and we believe that these advanced platforms will be growth catalysts.

"In addition, as the leading company in the industry, we continue to invest in research and development, and our innovation pipeline is strong. As we offer unique platforms and technologies that require adjustments to the production lines, I would like to recognize the commitment and dedication of our employees who work tirelessly to expedite the production and fulfill orders during these times," Mizrahy concluded.

Second Quarter 2024 Financial Results

Total GAAP revenues for the second quarter of 2024 reached $86.4 million, a decrease of 36.5% compared to $136.1 million in second quarter of 2023. Pro-forma revenue reached $102.6 million.

"During the second quarter, we began delivering the new platforms and we are on track to complete all deliveries within the next several months," said Yair Malca, Chief Financial Officer. "Additionally, we are pleased to report that by the end of July 2024 we have successfully completed our third share repurchase program, acquiring 8.37 million shares for the amount of $150 million."

GAAP gross margin for the second quarter of 2024 was 80% compared to a gross margin of 84% for the Second quarter of 2023. *Non-GAAP gross margin for the second quarter of 2024 was 81% compared to a gross margin of 84% for the second quarter of 2023.
**Pro-forma non-GAAP gross margin for the second quarter of 2024 was 82%.

GAAP operating margin for the second quarter of 2024 was 21%, compared to an operating margin of 42% in the Second quarter of 2023. *Non-GAAP operating margin for the second quarter of 2024 was 27% compared to 47% for the Second quarter of 2023. **Pro-forma non-GAAP operating margin for the second quarter of 2024 was 34%. This decrease was primarily attributable to the decrease in systems sales in North America.

InMode reported GAAP net income of $23.8 million, or $0.28 per diluted share, in the second quarter of 2024, compared to $55.7 million, or $0.65 per diluted share, in the second quarter of 2023. On a *non-GAAP basis, InMode reported net income of $29.0 million, or $0.34 per diluted share, in the second quarter of 2024, compared to $62.2 million, or $0.72 per diluted share, in the second quarter of 2023. **Pro-forma non-GAAP net income of $39.8 million, or $0.46 per diluted share, in the second quarter of 2024.

2024 Financial Outlook

Management provided an outlook for the full year of 2024 ending December 31, 2024. Based on our current estimates, management expects:

• Full Year 2024 revenue to be $430 to $440 million compared to prior guidance of $485 million to $495 million
• *Non-GAAP gross margin between 82% and 84% consistent with prior guidance
• *Non-GAAP income from operations between $150 million and $155 million compared to prior guidance of $169 million to $174 million
• *Non-GAAP earnings per diluted share between $1.92 and $1.96 compared to previous guidance of $2.01 to $2.05

The Current Situation in Israel

Regarding the current situation in Israel, management would like to assure investors that the Company is prioritizing the safety and well-being of its employees, and all its team are safe. However, an inability to promptly receive needed supplies and materials due to the ongoing and unpredictable nature of the conflict in Israel and the surrounding region may adversely impact our ability to commercialize and manufacture our product candidates and products in a timely manner. This could cause several delays and/or issues for our operations, which in turn would have a material adverse impact on our ability to commercialize our product candidates and our financial condition.

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 as well as Pro-forma Non-GAAP revenue, pro-forma Non-GAAP net income, pro-forma non-GAAP earnings per diluted share and pro-forma 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, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, will host a conference call today, August 1, 2024, at 8:30 a.m. Eastern Time to discuss the second 2024 financial results.

The Company encourages participants to pre-register for the conference call using the following link: 

https://dpregister.com/sreg/10190152/fcd9be3160.

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.

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
Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=GpRhmBhV
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 August 1, 2024, at 12 p.m. Eastern Time to August 15, 2024, 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: 2791553

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 2024 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 13, 2024, 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.

Revision of prior period financial information

The Company revised certain items within the investing activities with no impact on the net cash used in investing activities. The items impacted were "Investment in short-term deposits" and "Proceeds from short-term deposits" which were decreased by $75,000 and $78,000 for the three months and six months ended June 30,2023 respectively and "Purchase of marketable securities" and "Proceeds from maturity of marketable securities" which were decreased by $0, and $40,423 for the three months and six months ended June 30, 2023.

These changes have no impact on our previously reported consolidated total cash flows from operating activities, financing activities and investing activities in the periods stated above as well as net income and net change in cash and cash equivalents.

The Company evaluated the materiality of the adjustments, individually and in the aggregate, considering both qualitative and quantitative factors, and concluded that it was immaterial to the Company's prior periods' consolidated financial information. Since the revision was not material to any prior interim period or annual consolidated financial statements, no amendments to previously filed interim or annual periodic financial information was required. Consequently, the Company has revised the historical consolidated financial information presented herein for the impact of the above.

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SOURCE InMode LTD