InMode Reports Third Quarter 2019 Record Revenue of $40 Million; Reflects Growth of 57% Year-Over-Year; Net Income Increased 87% to $16.2 Million

YOKNEAM, Israel, Nov. 5, 2019 /PRNewswire/ -- InMode Ltd. INMD ("InMode"), a leading global provider of innovative medical technologies, today announced financial results for the third quarter ended September 30, 2019.

InMode logo (PRNewsfoto/InMode)

Third Quarter 2019 Highlights:

  • Record quarterly revenue of $40 million, an increase of 57% as compared to the third quarter in 2018
  • Net income of $16.2 million, 87% increase year-over-year
  • Fully diluted earnings per share of $0.42, an increase of 62% as compared to the third quarter in 2018
  • 88% increase in international revenue as compared to the third quarter in 2018, driven primarily by European and Asian sales
  • Total cash position of $166.3 million as of September 30, 2019, including cash and cash equivalents, marketable securities and deposits

 

GAAP Results

(U.S. dollars in thousands, except for per share data)



Q3 2019

Q3 2018

Revenues

$40,010

$25,418

Gross Margins

87%

86%

Net Income

$16,193

$8,638

Earnings per Diluted Share

$0.42

$0.26

Management Comments

"We went public during the third quarter and we are happy to report continuous solid growth in revenues and profitability," commented Moshe Mizrahy, Chief Executive Officer and Chairman of the Board. "The demand for our unique, minimally invasive technology in the United States and abroad is increasing and we plan to penetrate new international markets while maintaining profitable growth. InMode's proprietary bipolar RF technologies fill the treatment gap in face and body aesthetic surgery by offering outpatient alternatives that address the shortcomings of traditional surgery with less downtime, lower costs and comparable results. We believe our strong cash position will enable us to maintain our growth efforts and will support the ongoing launch of new and innovative platforms," Mizrahy added.

Third Quarter 2019 Financial Results

Total revenues for the third quarter of 2019 were $40.0 million, an increase of 57% as compared to the third quarter in 2018. This growth was driven primarily by the continued expansion of InMode's direct sales organization in the U.S. In addition, InMode is gaining traction in the international markets, with international revenue growing 88% year-over-year.

Gross margin for the third quarter of 2019 was 87% compared to a gross margin of 86% in the third quarter of 2018.

Operating margin for the third quarter of 2019 was 40%, compared to the operating margin of 33% in the third quarter of 2018.

InMode reported net income of $16.2 million, or $0.42 per diluted share in the third quarter of 2019. This is compared with net income of $8.6 million, or $0.26 per diluted share, in the third quarter of 2018.

As of September 30, 2019, InMode had cash and cash equivalents, marketable securities and deposits of $166.3 million, out of which, approximately $70 million in net proceeds were raised in our initial public offering.

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. 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, strategy 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. As a result, 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 contained in our prospectus (included in the Registration Statement on Form F-1, filed with the Securities and Exchange Commission (File No. 333-232615), as amended). 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 speak 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





Nine months ended



September 30

September 30





2019





2018





2019





2018



REVENUES





40,010







25,418







109,359







71,379





COST OF REVENUES





5,047







3,669







14,193







11,118





GROSS PROFIT





34,963







21,749







95,166







60,261





OPERATING EXPENSES:



































Research and development





1,329







1,005







4,112







2,826





Sales and marketing





16,726







11,106







46,721







32,101





General and administrative





927







1,244







2,693







3,158





TOTAL OPERATING EXPENSES





18,982







13,355







53,526







38,085





INCOME FROM OPERATIONS





15,981







8,394







41,640







22,176





Finance income, net





479







415







1,264







623





INCOME BEFORE TAXES





16,460







8,809







42,904







22,799





INCOME TAX





267







171







718







215





NET INCOME





16,193







8,638







42,186







22,584





Less: Net income attributable to non-controlling interests





7







-







79







-





NET INCOME ATTRIBUTABLE TO INMODE LTD. SHAREHOLDERS'





16,186







8,638







42,107







22,584









































NET INCOME PER SHARE (1):



































Basic





0.53







0.34







1.50







0.83





Diluted





0.42







0.26







1.15







0.63









































WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (1)



































Basic





30,297







26,647







28,031







26,591





Diluted





39,004







35,030







36,654







34,982









(1) The number of shares have been adjusted retroactively for a 1-for-1.789 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of InMode's board of directors dated July 24, 2019.

 

INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)



























September 30,





December 31,









2019





2018



Assets



















CURRENT ASSETS:



















Cash and cash equivalents







48,705







24,721



Marketable securities







91,613







26,532



Short-term bank deposits







25,935







10,045



Accounts receivable, net of allowance for doubtful accounts







7,615







7,008



Other receivables







3,142







2,495



Inventories







8,495







6,963



TOTAL CURRENT ASSETS







185,505







77,764



NON-CURRENT ASSETS:



















Accounts receivable







378







544



Deferred offering costs







-







895



Deferred income taxes, net







1,516







1,309



Property and equipment, net







848







544



Operating lease right-of-use assets







1,518







-



TOTAL NON-CURRENT ASSETS







4,260







3,292



TOTAL ASSETS







189,765







81,056























Liabilities and shareholders' equity



















CURRENT LIABILITIES:



















Accounts payable







5,660







4,509



Contract liabilities







7,260







5,755



Other liabilities







10,783







9,165



Accrued contingencies







-







10,000



TOTAL CURRENT LIABILITIES







23,703







29,429



NON-CURRENT LIABILITIES:



















Contract liabilities







3,740







3,982



Other liabilities







918







771



Operating lease liabilities







922







-



Deferred income taxes







47







11



TOTAL NON-CURRENT LIABILITIES







5,627







4,764



TOTAL LIABILITIES







29,330







34,193























REDEEMABLE NON-CONTROLLING INTEREST







-







2,187























TOTAL SHAREHOLDERS' EQUITY







160,435







44,676



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY







189,765







81,056



 

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)







Three months ended





Nine months ended





September 30





September 30





2019





2018





2019





2018

CASH FLOWS FROM OPERATING ACTIVITIES:































Net income





16,193







8,638







42,186







22,584

Adjustments required to reconcile net income to net cash provided by operating activities:































Depreciation and amortization





77







53







214







131

Stock-based compensation expense





385







42







1,199







1,766

Allowance for doubtful accounts





55







(14)







133







(43)

Gains on marketable securities, net





-







(68)







-







(122)

Changes in fair value of marketable securities, net





-







(177)







-







(213)

Finance income, net





(86)







-







(395)







-

Provision for deferred income taxes, net





(68)







(41)







(211)







(168)

Changes in operating assets and liabilities:































Increase in accounts receivable





(2,324)







(2,124)







(597)







(380)

Increase in other receivables





(1,814)







(526)







(650)







(71)

Decrease (increase) in inventories





(879)







213







(1,532)







(539)

Increase in accounts payable





689







755







759







520

Increase (decrease) in other liabilities





2,402







1,390







2,418







(267)

Increase (decrease) in contract liabilities





(1,115)







(915)







1,263







4,227

Decrease in accrued contingencies





-







-







(10,000)







-

Net cash provided by operating activities





13,515







7,226







34,787







27,425

CASH FLOWS FROM INVESTING ACTIVITIES:































Investment in short-term deposits





(17,220)







(5,000)







(34,310)







(5,000)

Proceeds from short-term deposits





8,500







-







18,500







-

Purchase of fixed assets





(54)







(82)







(518)







(293)

Purchase of marketable securities





(68,282)







(15,369)







(82,621)







(22,546)

Proceeds from sale of marketable securities





13,500







857







18,103







3,412

Net cash (used in) investing activities





(63,556)







(19,594)







(80,846)







(24,427)

CASH FLOWS FROM FINANCING ACTIVITIES:































Proceeds from initial public offering of ordinary shares, net of issuance costs





69,784







-







69,784







-

Exercise of options





178







19







315







176

Net cash provided by financing activities





69,962







19







70,099







176

EFFECT OF EXCHANGE RATE CHANGES ON CASH





(93)







(23)







(56)







(141)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS





19,828







(12,372)







23,984







3,033

































CASH AND CASH EQUIVALENTS AT





28,877







32,998







24,721







17,593

BEGINNING OF PERIOD































CASH AND CASH EQUIVALENTS AT END OF PERIOD





48,705







20,626







48,705







20,626

 

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)







Three months ended





Nine months ended

September 30

September 30





2019





2018





2019





2018

Revenues by Geography:































United States





31,007







20,633







87,813







58,498

International (OUS)





9,003







4,785







21,546







12,881

Total Net Revenue





40,010







25,418







109,359







71,379

United States as percentage of total revenue





77%







81%







80%







82%

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/inmode-reports-third-quarter-2019-record-revenue-of-40-million-reflects-growth-of-57-year-over-year-net-income-increased-87-to-16-2-million-300951184.html

SOURCE InMode

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