Quarterly GAAP revenues of $97.9 million and full year revenue of $394.8 million
Returned $285.4 million of capital to shareholders in full year 2024
Together with new 10% program, represents repurchase of approximately 27% of shares outstanding within 15 month timeframe, with the potential of substantial additional capital return in 2025
YOKNEAM, Israel, Feb. 4, 2025 -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the fourth quarter and full year 2024.
Fourth Quarter 2024 Highlights:
- Quarterly GAAP revenues of $97.9 million, compared to $126.8 million in the fourth quarter of 2023.
- Quarterly revenues from consumables and service of $19.9 million, a decrease of 3% compared to the fourth quarter of 2023.
- GAAP operation income of $27.9 million, *non-GAAP operation income of $31.3 million.
- Returned $119.8 million of capital to shareholders through repurchase of ordinary shares.
- Total cash position of $596.5 million as of December 31, 2024, including cash and cash equivalents, marketable securities and short-term bank deposits.
Full Year 2024 Highlights:
- Full year revenues of $394.8 million, a year-over-year decrease of 20%.
- Full year revenues from consumables and service of $79.3 million, a decrease of 1% compared to 2023.
- GAAP operation income of $112.5 million, compared to $195.7 million in 2023; record *non-GAAP operation income of $129.1 million, compared to $219.3 million in 2023.
- Returned $285.4 million of capital to shareholders through repurchase of ordinary shares.
U.S. GAAP Results (U.S. dollars in thousands, except for per share data) | ||||
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Revenues | $97,853 | $126,781 | 394,818 | $492,048 |
Gross Margins | 79 % | 84 % | 80 % | 84 % |
Net Income | $82,771 | $55,165 | $181,275 | $197,919 |
Earnings per Diluted Share | $1.14 | $0.64 | $2.25 | $2.30 |
*Non-GAAP Results (U.S. dollars in thousands, except for per share data) | ||||
Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | |
Gross Margins | 80 % | 84 % | 81 % | 84 % |
Net Income | $31,081 | $61,487 | $142,707 | $221,519 |
Earnings per Diluted Share | $0.42 | $0.71 | $1.76 | $2.57 |
*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 included in this release. Non-GAAP results exclude share-based compensation and tax benefit adjustments.
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 $135 million, out of which $120 million was repurchased during the fourth quarter of 2024. Our total capital return to shareholders for fiscal year 2024 was more than $285 million, executed via share repurchases representing approximately 19% of our share capital and more than double our fiscal year 2024 free cash flow.
On February 3rd, our Board of Directors approved another tax-efficient share repurchase program of up to 10% of our total shares outstanding, expected to be executed over the next three to six months. Together with our 2024 share repurchases, this represents approximately 27% of share capital to be bought within less than 15 months.
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 $97.9 million, a decrease of 23% compared to $126.8 million in the fourth quarter of 2023. Total revenues for 2024 were $394.8 million, a decrease of 20% compared to 2023.
GAAP gross margin for the fourth quarter of 2024 was 79%, compared to 84% for the fourth quarter of 2023. *Non-GAAP gross margin for the fourth quarter of 2024 was 80%, compared to 84% for the fourth quarter of 2023. GAAP gross margin for 2024 was 80%, compared to 84% for 2023. *Non-GAAP gross margin for 2024 was 81%, compared to 84% for 2023.
GAAP operating margin for the fourth quarter of 2024 was 28%, compared to 40% in the fourth quarter of 2023. *Non-GAAP operating margin for the fourth quarter of 2024 was 32%, compared to 45% for the fourth quarter of 2023. GAAP operating margin for 2024 was 29%, compared to 40% in 2023. *Non-GAAP operating margin for 2024 was 33%, compared to 45% in the full year of 2023. This decrease was primarily attributable to higher sales and marketing expenses, primarily a result of recent management changes, as well as additional investments in trade shows and workshop activities.
InMode reported GAAP net income of $82.8 million, or $1.14 per diluted share, in the fourth quarter of 2024, compared to $55.2 million, or $0.64 per diluted share, in the fourth quarter of 2023. On a *non-GAAP basis, InMode reported net income of $31.1 million, or $0.42 per diluted share, in the fourth quarter of 2024, compared to $61.5 million, or $0.71 per diluted share, in the fourth quarter of 2023. GAAP net income was $181.3 million, or $2.25 per diluted share, in 2024, compared to GAAP net income of $197.9 million, or $2.30 per diluted share, in 2023. On a *non-GAAP basis, InMode reported net income of $142.7 million, or $1.76 per diluted share, in the full year of 2024, compared to net income of $221.5 million, or $2.57 per diluted share, for the full year in 2023.
As of December 31, 2024, InMode had cash and cash equivalents, marketable securities and short-term bank deposits of $596.5 million.
As of December 31, 2024, the Company's U.S. subsidiary has an accumulated federal tax loss carryforward of approximately $203 million and a state tax loss carryforward of approximately $165.5 million, primarily arising from employee stock option exercises that generated tax deductions exceeding recognized compensation expenses. After assessing cumulative income in recent years and the realizability of deferred tax assets, the Company released a valuation allowance related to its U.S. net deferred tax assets, and as a result recorded a deferred tax asset of $55.1 million.
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 to $405 million
- *Non-GAAP gross margin between 80% and 82%
- *Non-GAAP income from operations to be between $130 million and $135 million
- *Non-GAAP earnings per diluted share between $1.95 to $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 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 tax benefit adjustments.
However, these estimates are based on management's current estimates, which may be updated.
The Current Situation in Israel
Regarding the current situation in Israel, Israel and Hamas recently agreed to a ceasefire agreement, the first phase of such ceasefire began on January 19, 2025. With the ceasefire agreement in place, we remain confident in our ability to continue our R&D and manufacturing activities while maintaining the safety and well-being of our employees.
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.
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=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 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: 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.
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