#Israel #financial results #share repurchase #Yokneam #InMode Ltd

InMode Reports Financial Results for Q4 and Full Year 2024

InMode Ltd. recently published its consolidated financial results for the fourth quarter and the entire 2024 fiscal year. Known for its innovative medical technologies, InMode's latest results indicate substantial shifts in revenue and strategic financial maneuvers, particularly in light of economic challenges.

Financial Performance Overview

In the fourth quarter of 2024, InMode recorded a GAAP revenue of $97.9 million, a notable decrease from $126.8 million in Q4 of 2023. For the full year, the total revenue was $394.8 million, marking a 20% decline compared to $492.0 million in 2023.
Additionally, revenues from consumables and services decreased slightly by 3% to $19.9 million in the last quarter of 2024, compared to the same period in 2023.

Despite the drop in revenue, InMode reported a GAAP operating income of $27.9 million for Q4 and $112.5 million for the entire year. In terms of earnings per diluted share, the company achieved $1.14 for Q4, up from $0.64 in Q4 2023, while full-year earnings per diluted share stood at $2.25 compared to $2.30 the previous year.

Capital Return Strategies

In2024, InMode returned $285.4 million to shareholders primarily through share repurchases. In the fourth quarter alone, the company repurchased $119.8 million worth of its ordinary shares. This ongoing strategy has been buoyed by a strong balance sheet, allowing management to sustain shareholder value during challenging economic periods.

On February 3, 2025, InMode's Board approved a new share repurchase program of up to 10% of its outstanding shares, anticipated to be executed in the coming months. This program, alongside previous repurchases, represents approximately 27% of the company's shares over a 15-month timeframe, showcasing a proactive approach towards capital allocation.

Challenges and Responses

According to CEO Moshe Mizrahy, while InMode maintains a robust market position, the aesthetics industry faced unexpectedly strong headwinds which were exacerbated by broader economic challenges. In response, the company is adapting through innovation and has introduced new products such as the Ignite and OptimasMAX platforms, expected to gain traction as market conditions improve.

InMode is also set to launch two additional platforms targeting medical aesthetics and wellness in 2025, an area viewed as ripe for opportunity.

Financial Outlook for 2025

Management has cautiously outlined expectations for 2025, forecasting revenues between $395 to $405 million. The anticipated non-GAAP gross margins are projected to range from 80% to 82%, with non-GAAP operating income projected between $130 million and $135 million.

Current Situation and Future Strategy

In the wake of a recently established ceasefire in Israel, InMode expresses confidence in continuing its research and development activities while ensuring employee safety amidst ongoing geopolitical challenges. The management's ongoing commitment to evaluating capital allocation strategies will involve careful consideration of the most effective pathways for enhancing shareholder value.

In summary, InMode remains a key player in the medical technology sector, emphasizing financial prudence and innovative product development as it navigates through a challenging market landscape. As 2025 unfolds, its strategies may prove pivotal in reclaiming growth and restoring revenue momentum.