INTUITIVE SURGICAL, INC. 
By 
Already revolutionary when it was launched in the early 2000s, the Da Vinci system managed to convince a skeptical community of doctors in a series of demonstrations that became famous for proving the effectiveness of their system. One of these took place at Stanford University Hospital, where a surgeon performed a live operation, using the robot to remove a tumor. The results were impressive, showing not only greater precision, but also faster recovery for patients. The robot features articulated arms that mimic the surgeon's movements, but with a greater range of motion and increased stability. This also reduces natural hand tremor. Since then, Intuitive Surgical has gone from strength to strength, with impressive regularity and growing acceptance in the global scientific community.
The latest results bear witness to this sustained growth. In the third quarter of 2024, the number of procedures performed with the da Vinci system increased by 18% compared with the same period in 2023. Intuitive Surgical installed 379 da Vinci surgical systems, compared with 312 in the third quarter of 2023. Of these installations, 110 were da Vinci 5 systems, underlining the growing adoption of this new generation of systems. The installed base of da Vinci systems reached 9,539 units (5,582 in the US and 3,957 outside the US), an increase of 15% year-on-year.
The majority of sales (83% in 2023) are recurrent, thanks to renewed instruments and accessories ($800 to $3600 per procedure), services ($100K to $225K per year) and various rentals.
Revenues for the last quarter amounted to $2.04 billion, up 17% on the $1.74 billion recorded in the third quarter of 2023. This increase was mainly due to growth in the volume of da Vinci procedures and expansion of the installed base of systems. Revenue from instruments and accessories rose by 18% to $1.26 billion, while systems revenue reached $445 million, compared with $379 million the previous year.
GAAP net income for the third quarter of 2024 was $565 million, or $1.56 per diluted share, compared with $416 million, or $1.16 per diluted share, in the third quarter of 2023. In non-GAAP terms, net income was $669 million, or $1.84 per diluted share, compared with $524 million, or $1.46 per diluted share, the previous year.
In October 2024, the American company obtained regulatory approval in South Korea for the use of the da Vinci 5 Surgical System in a variety of procedures, including urological, general, gynecological, thoracoscopic, and transoral otolaryngological. This authorization opens up new market opportunities for the company in Asia.
Intuitive Surgical continues to innovate with its AI-based digital tool, Case Insights, which helps surgeons analyze their operative data to improve patient outcomes. This technology, in conjunction with da Vinci and Ion systems, optimizes surgical performance and reduces costs.
CEO Gary Guthart expressed his satisfaction with the adoption of the da Vinci 5 system and underlined the company's commitment to improving patient outcomes. However, challenges remain, including pressure on healthcare budgets in Europe and growing competition from domestic surgical robots in China.
Thanks to this good news, the stock hit a new all-time high of $521.15 last Friday. Intuitive Surgical continues to strengthen its leadership position in robotic surgery through sustained growth in facilities and procedures, technological innovation and strategic geographic expansion. The company is well positioned to capitalize on the growing adoption of robotic surgery worldwide, while navigating a complex regulatory and competitive environment.
