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01/11 16:22
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals several negative factors: revenue and earnings guidance have been revised downward, gross margins and operating margins are declining, and macroeconomic uncertainties are affecting consumer demand. Although there are positives like a strong cash position and continued shareholder returns, the negative financial trends and lack of clarity on new product launches outweigh these. The market cap suggests a moderate reaction, but given the negative guidance and margin pressures, a stock price decline is likely in the range of -2% to -8%.
Total Revenue $77.9 million, a decrease of 3% year-over-year due to ongoing macroeconomic uncertainty and soft consumer demand.
Gross Margin (GAAP) 78%, down from 80% in Q1 2024, attributed to pressures in the market.
Non-GAAP Gross Margin 79%, down from 80% in Q1 2024, reflecting similar market pressures.
International Sales $38 million, accounting for 49% of total sales, a 1% increase year-over-year, with Europe being the largest contributor.
GAAP Operating Expenses $45.3 million, a 1% decrease year-over-year, indicating cost management efforts.
Sales and Marketing Expenses $39.7 million, slightly down from $39.8 million in Q1 2024, showing a focus on efficiency.
Non-GAAP Operating Expenses $43.1 million, a 2% increase year-over-year, reflecting investments in growth.
GAAP Operating Margin 20%, down from 23% in Q1 2024, impacted by revenue decline.
Non-GAAP Operating Margin 23%, down from 27% in Q1 2024, also affected by revenue pressures.
GAAP Diluted Earnings Per Share $0.26, compared to $0.28 in Q1 2024, reflecting lower revenue and margins.
Non-GAAP Diluted Earnings Per Share $0.31, down from $0.32 in Q1 2024, due to similar factors.
Cash and Cash Equivalents $512.9 million as of March 31, 2025, indicating a strong balance sheet.
Operating Cash Flow $14 million generated from operating activities, showing continued operational efficiency.
New Product Launch: Later this year, we plan to unveil a new platform designed for the wellness market, further expanding our product portfolio.
International Sales Growth: First quarter sales outside of the U.S. accounted for $38 million or 49% of sales, a 1% increase compared to Q1 last year.
European Market Performance: In Q1, Europe was the largest revenue contributor from outside the U.S. and reached a record sales number.
Operating Expenses: GAAP operating expenses in the first quarter were $45.3 million, a 1% decrease year-over-year.
Sales Team Expansion: We currently have a sales team of more than 281 direct reps and 76 countries through distributors worldwide.
Share Repurchase Program: Earlier this month, we purchased 6.95 million shares totaling $127 million, returning more than $412 million to shareholders over the past 12 months.
Guidance Revision: We expect revenues between $395 million to $405 million, with non-GAAP gross margins revised to 78% to 80%.
Macroeconomic Uncertainty: The medical aesthetic market is facing headwinds due to ongoing macroeconomic uncertainty and soft consumer demand, leading to a decrease in elective procedures.
Consumer Behavior: Patients are deferring treatments, and providers are adopting a cautious approach to capital investment, impacting revenue.
Operating Margin Pressure: Expected reduction in operating margins by around 4% to 5% due to market conditions.
Tariff Impact: Current U.S. tariffs at 10% are anticipated to impact gross margins by approximately 2% to 3%.
Revenue Guidance Revision: Revised revenue guidance for 2025 is between $395 million to $405 million, down from previous expectations.
Earnings Guidance Revision: Non-GAAP earnings per diluted share guidance has been revised down to between $1.64 to $1.68 from $1.95 to $1.99.
New Product Launch: Later this year, we plan to unveil a new platform designed for the wellness market, further expanding our product portfolio.
Share Repurchase Program: We completed our fifth share purchase program this month, purchasing 6.95 million shares totaling $127 million.
Shareholder Returns: Over the past 12 months, we have returned more than $412 million to shareholders through share purchases, representing approximately 27% of our total capital.
Revenue Guidance: We expect revenues between $395 million to $405 million for 2025.
Gross Margin Guidance: Non-GAAP gross margins are expected to be between 78% to 80%, revised from previous guidance of 80% to 82%.
Operating Income Guidance: Non-GAAP income from operations is projected to be between $101 million to $106 million, down from previous guidance of $130 million to $135 million.
Earnings Per Share Guidance: Non-GAAP earnings per diluted share are expected to be between $1.64 to $1.68, revised from previous guidance of $1.95 to $1.99.
Operating Margin Outlook: We expect operating margins to reduce by around 4% to 5% due to market pressures.
Impact of Tariffs: U.S. tariffs at current levels of 10% are anticipated to impact gross margins by approximately 2% to 3%.
Share Purchase Program: Completed fifth share purchase program, purchasing 6.95 million shares totaling $127 million.
Total Shareholder Return: Returned more than $412 million to shareholders through share purchases over the past 12 months, representing approximately 27% of total capital.
Future Capital Allocation: Evaluating additional share repurchases, potential dividends, and strategic M&A.
The earnings call reveals a decline in financial performance, with reduced revenue and EPS guidance, and lower operating margins. Despite new product launches, management's conservative stance on future sales and lack of detailed guidance for 2026 indicate uncertainties. The Q&A session highlights concerns about interest rates and noninvasive growth, with management providing limited clarity. The market cap indicates a small-cap stock, which may react strongly to these negative factors. Overall, the sentiment leans negative, with potential stock price decline in the range of -2% to -8%.
The earnings call reveals several challenges: reduced guidance, market slowdown, and margin pressures. Although there are positive aspects like share buybacks and product launches, the overall sentiment is negative due to lowered guidance, challenges in key markets, and unclear timelines for regulatory approvals. The market cap suggests a moderate reaction, aligning with a 'Negative' sentiment prediction.
The earnings call reveals several negative factors: revenue and earnings guidance have been revised downward, gross margins and operating margins are declining, and macroeconomic uncertainties are affecting consumer demand. Although there are positives like a strong cash position and continued shareholder returns, the negative financial trends and lack of clarity on new product launches outweigh these. The market cap suggests a moderate reaction, but given the negative guidance and margin pressures, a stock price decline is likely in the range of -2% to -8%.
The earnings call reveals a challenging environment for InMode with declining financial metrics, including reduced revenue and EPS guidance, and pressure on margins due to tariffs and macroeconomic factors. Despite a strong shareholder return program, the negative sentiment is compounded by management's unclear responses in the Q&A, especially regarding new product launches and economic impacts. Given the small-cap nature of the company, these factors are likely to result in a negative stock price movement of -2% to -8% over the next two weeks.
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