InMode Reports First Quarter 2023 Financial Results; Quarterly Revenue of $106.1M Represents
23.5% Year-Over-Year Growth

YOKNEAM, Israel, May 2, 2023- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Highlights:
●
Quarterly revenue of $106.1 million, an increase of 23.5% compared to the first quarter of 2022. InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 83% of quarterly revenues, while 8% came from InMode's hands-free platforms and 9% from InMode's traditional laser and non-invasive RF platforms.

●
GAAP net income of $40.5 million, compared to $31 million in the first quarter of 2022; *non-GAAP net income of $44.7 million, compared to $34.1 million in the first quarter of 2022.

●
GAAP diluted earnings per share of $0.47, compared to $0.36 in the first quarter of 2022; *non-GAAP diluted earnings per share of $0.52, compared to $0.40 in the first quarter of 2022.
●
Record quarterly revenues from consumables and service of $20 million, an increase of 43% compared to the first quarter of 2022.

●
Total cash position of $574.5 million as of March 31, 2023, including cash and cash equivalents, marketable securities, and short-term bank deposits.

U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
Q1 2023
Q1 2022
Revenues
$106,074
$85,921
Gross Margins
83%
83%
Net Income
$40,505
$30,975
Earnings per Diluted Share
$0.47
$0.36
*Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
Q1 2023
Q1 2022
Gross Margins
83%
83%
Net Income
$44,714
$34,069
Earnings per Diluted Share
$0.52
$0.40

*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 adjustments.
Management Comments
"As we celebrate the 15th anniversary of the founding of our company, we are pleased to report a strong start to 2023, driven by growing demand for InMode's procedures. Our unique technology enables patients to achieve effective surgical results while benefiting of minimally invasive procedures," said Moshe Mizrahy, Chairman and Chief Executive Officer.

Shakil Lakhani, President of InMode North America, commented, "During the first quarter, we experienced significant growth in consumable sales. Revenue from consumables and service for the first quarter grew nearly 43% year-over-year. This is a strong indication that the platforms we sell are being used more frequently as the demand for our treatments continues to increase."

"We have seen an influx of patients seeking treatment following the use of popular weight loss drugs. InMode's technology can effectively assist patients in tightening the loose skin post the effects of these medications," said Dr. Spero Theodorou, Chief Medical Officer.

First Quarter 2023 Financial Results
Total revenues for the first quarter of 2023 reached $106.1 million, an increase of 23.5% compared to the first quarter of 2022.

"We are happy to report substantial growth in Q1, while maintaining strong gross margins in what is traditionally a slower quarter for the aesthetics space. International sales were once again robust in the first quarter, with sales from Europe hitting a new record," said Yair Malca, Chief Financial Officer.

GAAP gross margin for the first quarter of 2023 and 2022 was 83%. *Non-GAAP gross margin for the first quarter of 2023 and 2022 was 83%.

GAAP operating margin for the first quarter of 2023 was 39%, compared to an operating margin of 41% in the first quarter of 2022. *Non-GAAP operating margin for the first quarter of 2023 was 43% compared to 44% for the first quarter of 2022. This slight decrease was primarily attributable to higher sales and marketing expenses, mainly as a result of the addition of new sales representatives as well as investment in direct-to-consumer advertising campaigns and hosting in-person events to support the company's growth projections.
InMode reported GAAP net income of $40.5 million, or $0.47 per diluted share, in the first quarter of 2023, compared to $31 million, or $0.36 per diluted share, in the first quarter of 2022. On a *non-GAAP basis, InMode reported net income of $44.7 million, or $0.52 per diluted share, in the first quarter of 2023, compared to $34.1 million, or $0.40 per diluted share, in the first quarter of 2022.
2023 Financial Outlook
Management provided an outlook for the full year of 2023 ending December 31, 2023. Based on current estimates, management expects:
●
Revenue between $525 million and $530 million
●
*Non-GAAP gross margin between 83% and 85%
●
*Non-GAAP income from operations between $236 million and $238 million
●
*Non-GAAP earnings per diluted share between $2.58 and $2.60
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 adjustments.
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, and 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,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, May 2, 2023, at 8:30 a.m. Eastern Time to discuss the first quarter 2023 financial results.
The Company encourages participants to pre-register for the conference call using the following link:
https://dpregister.com/sreg/10177454/f8f5b01f02.
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=frYtrZ1j
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 May 2, 2023, at 12 p.m. Eastern Time to May 16, 2023, 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: 6947972

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 future performance described above under the heading titled "2023 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, 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, including with respect to the impact of the COVID-19 global outbreak. 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 14, 2023, as well as 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 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
Phone: (917) 607-8654
Email: ir@inmodemd.com


INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(U.S. dollars in thousands, except for per share data)
(Unaudited)

Three months ended
March 31,
2023
2022
REVENUES
106,074
85,921
COST OF REVENUES
18,254
14,772
GROSS PROFIT
87,820
71,149
OPERATING EXPENSES:
Research and development
3,102
2,815
Sales and marketing
41,713
30,849
General and administrative
2,008
2,477
TOTAL OPERATING EXPENSES
46,823
36,141
INCOME FROM OPERATIONS
40,997
35,008
Finance income, net
3,289
379
INCOME BEFORE TAXES
44,286
35,387
INCOME TAXES
3,781
4,412
NET INCOME
40,505
30,975
NET INCOME PER SHARE:
Basic
0.49
0.37
Diluted
0.47
0.36
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic
83,154
82,973
Diluted
85,387
85,696


INMODE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands, except for per share data)
(Unaudited)

March 31,
2023
December 31,
2022
Assets
CURRENT ASSETS:
Cash and cash equivalents
92,961
97,540
Marketable securities
405,674
374,589
Short-term bank deposits
75,817
75,254
Accounts receivable, net of allowance for doubtful accounts
24,868
26,997
Other receivables
14,802
15,094
Inventories
40,811
39,897
TOTAL CURRENT ASSETS
654,933
629,371
NON-CURRENT ASSETS:
Accounts receivable
3,883
3,973
Deferred income tax asset, net
2,457
3,094
Operating lease right-of-use assets
5,288
5,073
Property and equipment, net
2,451
2,298
Other investments
600
600
TOTAL NON-CURRENT ASSETS
14,679
15,038
TOTAL ASSETS
669,612
644,409
Liabilities and shareholders' equity
CURRENT LIABILITIES:
Accounts payable
11,987
16,242
Contract liabilities
17,293
13,798
Other liabilities
30,391
51,980
TOTAL CURRENT LIABILITIES
59,671
82,020
NON-CURRENT LIABILITIES:
Contract liabilities
3,042
3,959
Other liabilities
391
303
Operating lease liabilities
3,529
3,509
TOTAL NON-CURRENT LIABILITIES
6,962
7,771
TOTAL LIABILITIES
66,633
89,791
TOTAL SHAREHOLDERS' EQUITY
602,979
554,618
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
669,612
644,409


INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands, except for per share data)
(Unaudited)

Three months ended
March 31,
2023
2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income
40,505
30,975
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
188
138
Share-based compensation expenses
4,209
3,094
Change in allowance for credit losses of trade receivable
(22
)
210
Loss on marketable securities, net
-
14
Finance expenses (income), net
(1,512
)
90
Deferred income taxes, net
19
(22
)
Changes in operating assets and liabilities:
Decrease in accounts receivable
2,241
3,953
Increase in other receivables
(229
)
(1,195
)
Increase in inventories
(914
)
(4,074
)
Increase (decrease) in accounts payable
(4,255
)
762
Decrease in other liabilities
(23,043
)
(4,875
)
Increase in contract liabilities
3,926
2,783
Net cash provided by operating activities
21,113
31,853
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits
(6,000
)
(23,111
)
Proceeds from short-term deposits
6,000
20,000
Purchase of fixed assets
(341
)
(299
)
Purchase of marketable securities
(118,352
)
(21,209
)
Proceeds from sale of marketable securities
-
994
Proceeds from maturity of marketable securities
91,137
10,933
Net cash used in investing activities
(27,556
)
(12,692
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares
-
(42,637
)
Exercise of options
1,673
161
Net cash provided by (used in) financing activities
1,673
(42,476
)
EFFECT OF EXCHANGE RATE CHANGES ON CASH
191
(151
)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(4,579
)
(23,466
)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
97,540
68,136
CASH AND CASH EQUIVALENTS AT END OF PERIOD
92,961
44,670


INMODE LTD.
CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS
(U.S. dollars in thousands, except for per share data)
(Unaudited)

Three months ended
March 31,
2023
2022
Revenues by Category:
Capital Equipment revenues - United States
49,751
47
%
44,760
52
%
Capital Equipment revenues - International
36,373
34
%
27,183
32
%
Total Capital Equipment revenues
86,124
81
%
71,943
84
%
Consumables and service revenues
19,950
19
%
13,978
16
%
Total Net Revenue
106,074
100
%
85,921
100
%

Three months ended
March 31,
2023
2022
%
%
United States
International
Total
United States
International
Total
Revenues by Technology:
Minimally Invasive
90
75
83
84
71
80
Hands-Free
8
6
8
13
6
10
Non-Invasive
2
19
9
3
23
10
100
100
100
100
100
100

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)

Three months ended March 31, 2023
Three months ended March 31, 2022
GAAP
Share Based
Compensation
Non-GAAP
GAAP
Share Based
Compensation
Non-GAAP
REVENUES
106,074
-
106,074
85,921
-
85,921
COST OF REVENUES
18,254
(354
)
17,900
14,772
(314
)
14,458
GROSS PROFIT
87,820
354
88,174
71,149
314
71,463
OPERATING EXPENSES:
Research and development
3,102
(501
)
2,601
2,815
(525
)
2,290
Sales and marketing
41,713
(3,038
)
38,675
30,849
(1,895
)
28,954
General and administrative
2,008
(316
)
1,692
2,477
(360
)
2,117
TOTAL OPERATING EXPENSES
46,823
(3,855
)
42,968
36,141
(2,780
)
33,361
INCOME FROM OPERATIONS
40,997
4,209
45,206
35,008
3,094
38,102
Finance income, net
3,289
-
3,289
379
-
379
INCOME BEFORE TAXES
44,286
4,209
48,495
35,387
3,094
38,481
INCOME TAXES
3,781
-
3,781
4,412
-
4,412
NET INCOME
40,505
4,209
44,714
30,975
3,094
34,069
NET INCOME PER SHARE:
Basic
0.49
0.54
0.37
0.41
Diluted
0.47
0.52
0.36
0.40
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic
83,154
83,154
82,973
82,973
Diluted
85,387
85,878
85,696
86,132


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InMode Ltd. published this content on 02 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2023 11:02:09 UTC.