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01/11 16:18
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Revenue $95.6 million, compared to $86.4 million in Q2 2024. This represents an increase, but last year's figure excluded $16.2 million in preorders for new platforms, which had not yet been delivered by the end of Q2 2024.
Revenue from minimally invasive platforms 84% of total revenues this quarter. No year-over-year change mentioned.
Sales outside of the U.S. $45 million or 48% of overall sales, an 11% increase year-over-year. Europe was the largest geographical revenue contributor, reaching a record of $23 million.
Gross margin (GAAP) 80%, consistent with Q2 2024.
Gross margin (Non-GAAP) 80% in Q2 2025 compared to 81% in Q2 2024.
Sales and marketing expenses $47.5 million, up from $45.1 million in Q2 2024. The increase reflects higher salaries, travel and entertainment costs, and increased spending on trade shows and marketing activities, partially offset by lower share-based compensation.
Share-based compensation $3.4 million, down from $5.2 million in Q2 2024.
GAAP operating expenses $53.6 million, a 5% year-over-year increase.
Non-GAAP operating expenses $50.5 million, up from $46.3 million in Q2 2024, a 9% increase year-over-year.
GAAP operating margin 24%, up from 21% in Q2 2024.
Non-GAAP operating margin 28%, up from 27% in Q2 2024.
GAAP net income $26.7 million, up 12% from $23.8 million in Q2 2024.
Non-GAAP net income $30.1 million, up from $29 million in Q2 2024.
GAAP diluted earnings per share $0.42, up from $0.28 in Q2 2024.
Non-GAAP diluted earnings per share $0.47, up from $0.34 in Q2 2024.
Cash and cash equivalents, marketable securities, and deposits $510.7 million as of June 30, 2025.
Cash generated from operating activities $24 million in Q2 2025.
New Platforms in Wellness Space: Soft launch conducted in Q2 for platforms focused on increased blood circulation and pain relief for the urology community. Full commercial rollout planned for late August, with initial revenue contribution expected in Q4.
Global Expansion: New direct operations established in Thailand and Argentina to enhance local presence, improve customer support, and streamline operations.
Sales Team Restructuring: Restructured sales team with a specialized manager and dedicated team for Envision platforms targeting the ophthalmology market.
Revenue Performance: Generated $95.6 million in Q2 2025 revenue, with 48% from international sales. Europe contributed $23 million, marking an 11% year-over-year increase in international sales.
Guidance Adjustment: Revised 2025 revenue guidance to $365-$375 million, down from $395-$405 million, due to industry slowdown and high interest rates.
Challenging medical aesthetic market in North America: Reduced personnel spending has led to fewer treatments and less capital investment from physicians, reflecting broader macroeconomic trends.
Restructuring sales team: Efforts to restructure the sales team to penetrate markets more deeply may face execution risks and potential disruptions during the transition.
Global expansion challenges: Expanding operations in Thailand and Argentina involves risks such as regulatory hurdles, cultural differences, and operational inefficiencies.
Soft launch of new platforms: The success of the new wellness platforms is uncertain, and early feedback may not fully predict market acceptance or revenue generation.
Increased sales and marketing expenses: Higher costs in sales and marketing, including salaries, travel, and trade shows, could pressure operating margins if revenue growth does not offset these expenses.
Impact of U.S. tariffs: If current U.S. tariffs remain at 10%, gross margins could be negatively impacted by approximately 2% to 3%.
Macroeconomic environment: Global headwinds and economic uncertainties could continue to affect revenue growth and operational performance.
Revenue Guidance for 2025: Revenues are expected to be between $365 million to $375 million, revised down from the previous guidance of $395 million to $405 million.
Non-GAAP Gross Margins: Expected to remain between 78% and 80%, consistent with previous guidance.
Non-GAAP Income from Operations: Projected to be between $93 million and $98 million, revised down from the previous guidance of $101 million to $106 million.
Non-GAAP Earnings Per Diluted Share: Expected to range between $1.55 to $1.59, revised down from the previous guidance of $1.64 to $1.68.
Impact of U.S. Tariffs: If current U.S. tariffs remain at 10%, gross margins are expected to be impacted by approximately 2% to 3%.
New Product Launch in Wellness Space: A full commercial rollout of new platforms focused on increased blood circulation and pain relief for the urology community is planned for late August, with initial revenue contribution anticipated in Q4 2025.
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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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