intuitive surgical investor presentation 2021 intuitive surgical investor presentation 2021

And so we'll see over time, we'll be able to measure a little bit better over time, and we'll monitor it. So our customers are asking us for advanced instrumentation. Having said all of that, it's been a short period since they've had extended use instruments. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. Jamie, anything? I think they are ecosystem enablers and can result in very high customer satisfaction when done well. Growth in the U.K. was strong, with a slower recovery in France, Italy, and Germany. Those things are ongoing now. Submit. Product and customer mix fluctuate quarter to quarter, which can cause fluctuations in gross margins. General surgery growth in the U.S. was strong, and in addition to the positive impact from patient backlogs, reflected increasing access for surgeons to our fourth-generation technology. A reconciliation between our pro forma and GAAP results is posted on our website. There were nearly 1,500 Ion procedures completed in the second quarter. How are you thinking about competition? To the extent that COVID impacts procedures, it will also impact capital purchases. We expect spending on activities restricted by COVID to increase as the impacts of the pandemic decline. And then on SG&A, kind of same kind of question. In the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. Invest better with The Motley Fool. Intuitive Surgical's adjusted net . You've been spending a lot there. Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., and non-GAAP EPS exclude items such as intangible asset charges, re-measurement of contingent consideration, SBC and long-term incentive plan expenses, excess tax benefits or deficiencies associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfer of non-inventory assets, which are primarily recurring items. Presentation: Operator. The next page will display a menu of options. The Company excludes the excess tax benefits or deficiencies associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the on-going results of its core operations. So from a core demand point of view or disease state, that's clearly out there and accumulating, and it has to get processed through. Please note that this conference call will be available for audio replay on our website at intuitive.com on the latest Events section under our Investor Relations page. Finally, we are strengthening our digital capabilities across our ecosystem. J.P. Morgan Healthcare Conference 2023 Presentation 4.2 MB. You have to do it. Each quarter on these calls, we highlight certain recently published studies that we deem to be notable. Intuitive will hold a teleconference at 1:30 p.m. PST today to discuss the fourth quarter 2021 financial results. So it's hard to time it out, and it doesn't time out over one or two quarters, it times out over years. See www.intuitive.com/trademarks. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. Last quarter, we forecast 2021 procedure growth of 22% to 26%. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. In the U.S., Q2 procedure results were positively impacted by a continuing recovery from COVID-19, including, we believe, a number of procedures that had been previously deferred. Jamie Samath -- Senior Vice President of Finance. We believe that globally, customers have had not completely adjusted their instrument buying patterns to reflect the additional uses per instrument. It's a short period, but we believe that there is elasticity, and we've seen elasticity in markets where reimbursements are very low. Additionally, constant currency revenue growth is reported on a non-GAAP* basis. You go from an issue to identification to closure more quickly. Good afternoon, everybody. It's physically demanding. Product and research reports and data presentation to medical specialists, sales force, new channels, investors. The Company defines non-GAAP income from operations as income from operations, excluding intangible asset charges, certain acquisition-related items for the re-measurement of contingent consideration, SBC and long-term incentive plan expenses, and litigation charges and recoveries. And so we'll spend there. We heard your comments, but just kind of thinking a little bit longer-term than just the next couple of quarters. Fourth quarter 2021 systems revenue increased by 28% to $470million, compared with $367million in the fourth quarter of 2020. Presenter SpeechKari Krogstad Okay. . It's not just the robot. First quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $413 million, or $1.13 per diluted share, compared with $427 million, or $1.17 per diluted share, in the first quarter of 2021. Fourth quarter 2022 GAAP income from operations decreased to $373 million, compared with $450 million in the fourth quarter of 2021. The instrumentation updates, there are other things, imaging updates and software updates that are really all focused around right instruments, right features for the right extension or right expansion. And sequential growth in what they can do with the system remains our focus on SP for now. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. It doesn't seem like the backlog would be exhausted just after one quarter. That's helpful, Gary. All Rights Reserved. Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. The higherfourth quarter revenue was driven by growth in da Vinci procedure volume, partially offset by a decline in system placements and foreign currency impacts. Given the stronger recovery of procedures we have experienced so far, particularly in the U.S., and strength in U.S. general surgery, we are now increasing our forecast and expect full-year 2021 procedure growth of 27% to 30%. My name is Kari Krogstad. Is Intuitive Surgical Stock Still Worth Buying Hand Over Fist in 2023? (2021) Dropped off in 2022. Extended use instruments were introduced into the U.S. and Europe in the fourth quarter, in most other markets in the first six months of this year, except China due to regulatory timelines. For important safety information, indications for use, risks, full cautions, and warnings, please refer to www.intuitive.com/safety. These forward-looking statements include, but are not limited to, statements related to the expected impacts of the COVID-19 pandemic on our business, financial condition, and results of operations, the potential impact on our procedure volume, our expected business, procedures, and procedure adoption, future results of operations, future financial position, our ability to increase our revenues, the anticipated mix of our revenues between product and service revenues, our financing plans and future capital requirements, anticipated costs of revenue, anticipated expenses, our potential tax assets or liabilities, our investments, anticipated cash flows, our ability to finance operations from cash flows and similar matters, and statements based on current expectations, estimates, forecasts, and projections about the economies and markets in which we operate and our beliefs and assumptions regarding those economies and markets. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Companys business. These programs together trained over 2,200 care team members in the quarter, showing organizational strength and localizing programs, and responding with agility to pandemic-influenced demand. So it's not a scientific study, just my view. Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. While this did not have a material impact to our operating results in Q2, the outlook we are providing does not reflect any potential significant disruption or additional costs related to supply constraints. Bob Hopkins -- Bank of America Merrill Lynch -- Analyst. Turning to our innovation and commercialization efforts. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. To change your e-mail options at You may automatically receive Intuitive Surgical financial information by e-mail. However, that charge generated -- that change generated a long-term benefit of $66 million that is recognized currently in GAAP income and will be recognized ratably over approximately 10 years in pro forma income. The Company grew its da Vinci Surgical System installed base to 7,544 systems as of, Fourth quarter 2022 GAAP net income attributable to Intuitive was, Fourth quarter 2022 non-GAAP* net income attributable to Intuitive was. Frankly, the lack of precision in that estimate is such that it's probably not useful for us to share. We look forward to talking with you again in three months. Forward-looking statements relate to expectations concerning matters that are not historical facts. Full Time Faculty & Clinical Coordinator, Surgical Technologist Program Ask us about our $5,000 Sign on Bonus Rasmussen University Rasmussen University is seeking an experienced Surgical Technologist passionate about taking their own experience and translating that into helping students succeed in meeting their educational and professional goals. We placed 20 Ion systems in the quarter, bringing the installed base to 70 systems. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Companys business. Thoracic Surgery Market was valued at USD 3.1 Billion in 2021, and it is expected to reach a CAGR of 7.18 % . We work closely and collaboratively . That will play out over the next several quarters as we accrue patients. And I have one follow-up. Intuitive Surgical's adjusted net income of $435 million in Q3 2021 reflected a good 30% rise from its $334 million figure in the prior-year quarter. To choose Calvin Darling -- Senior Director of Finance, Investor Relations. Moving on to gross margin and operating expenses. The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. In terms of procedure categories, bariatrics continued the strength that we've seen for some time. And finally, expanding our clinical, economic, and analytical evidence base for key procedures and countries. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery. As part of our mission, we believe that minimally invasive care is life-enhancing care. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. We continue to see significant utilization variance by region due to pandemic differences. OK. And last one on SP. So good morning, everyone, and welcome to Medistim's Fourth Quarter Presentation for 2022. But at this point, it's just too difficult to estimate and, therefore, kind of give you any additional color on. The high end of the range assumes strength in U.S. general surgery, a return to normalized diagnostic pipelines, the vaccines are effective against any new COVID-19 variants and the vaccine rollouts in OUS markets continue as currently expected by governments around the world. Just so really speaking backward-looking, so far, so good. This press release contains forward-looking statements. The company strives to make surgery more effective, less invasive and easier on surgeons, patients and their families. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. We think we stand up pretty well to those comparisons, and we're ready to help them pursue their aims as the year proceeds. The Safety Communication issued on August 20, 2021 by the FDA, is specific to the use and study of robotic-assisted surgery in mastectomy. At the "Pitching to Investors Programme" you will have an exclusive 10-minute pitching slot on stage for you to showcase your company to our entire audience and the biggest community of investors. Are you seeing any impact thus far? So first question for me is just trying to dissect your procedure results a little bit more because some really interesting comments, that you saw strength in benign cases, some catch-up cases. Intuitive Surgical Inc. (NASDAQ: ISRG) Q1 2021 earnings call dated Apr. Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. Fourth quarter 2021 instruments and accessories revenue increased by 13% to $843million, compared with $747million in the fourth quarter of 2020, primarily driven by approximately 19% growth in da Vinci procedure volume, partially offset by stocking orders in the prior year associated with the Companys launch of Extended Use Instruments. From the top, I think you said the right thing, which is there's a little bit of a decoupling thus far of infection from hospitalization. ISRG stock has split before. Submit. Excellent communication and presentation skills. Intuitive Announces Preliminary Fourth Quarter and Full Year 2021 Results. On our last call, we forecast our 2021 full-year pro forma gross profit margin to be within 70% and 71% of revenue. Thanks. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. We've seen a few teams come out and field systems that are alternatives to ours. Consistent with the last quarter's forecast, we expect our noncash stock compensation expense to range between $450 million and $470 million in 2021. Second-quarter spending was below our expectations due to activities restricted by COVID, including clinical development, marketing events, and travel costs. Now, I'd turn the conference over to our host, Brian King, Head of Investor Relations for Intuitive Surgical. . Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. Third, we are launching and refining our flexible diagnostic platform, Ion, by working with early customers to help establish high-performing sites and by improving our technology and supply chain capabilities. To change your e-mail options at Second-quarter 2021 procedures increased approximately 68% compared with the second quarter of 2020 and increased approximately 13% compared with last quarter. The Company excludes a one-time tax benefit from re-measurement of certain deferred tax assets, because it is discrete in nature, and excludes the excess tax benefits or deficiencies associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the on-going results of its core operations. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. Yes. In the U.S., as COVID continued to subside in the second quarter of 2021, we saw a lower impact on da Vinci procedures. Lease buyout revenue has varied significantly quarter to quarter and will likely continue to do so. It also reflects lower diagnostic pipelines and perhaps some reluctance for patients to visit hospitals. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. The difference in the number of subjects reporting the need for prescription pain medication favored the robotic-assisted group in both comparisons." With respect to operating expenses, on our last call, we forecast to grow full-year pro forma 2021 operating expenses between 18% and 22% above 2020 levels. We are now slightly increasing our forecast and expect full-year gross profit margin to be between 70.5% and 71.5% of revenue. Yeah, sure. For more information, please visit the Companys website at www.intuitive.com. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. Thanks. I'll caution that what the next couple of quarters or next four quarters looks like in terms of hospital access to capital and their decision-making, capital is always lumpy. The fourth quarter 2021 system shipments included 143systems shipped under operating lease and usage-based arrangements, compared with 120 systems in thefourth quarter of 2020. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.neuropace.com, on the Investors page in the News & Events section. The supply issues we called out in the first quarter did not impact Ion placements and procedures in this quarter. your options for e-mail notification, please enter your e-mail address below and click And I'm actually curious more what's going on with service and software at the hospitalwide kind of department of surgery level. The compounded annual utilization growth rate between the second quarters of 2019 and 2021 was 6%. Pagination. Bringing it all together. We think there is an opportunity to accelerate learning and to drive increased insight for a surgeon into their own progress. Again, if you look across that two-year period, try to look through the pandemic kind of ups and downs, what we're seeing is that procedure demand is there. To choose Roughly a third of our team works in the manufacturer test and distribution of our products. The compound annual revenue growth rate between the second quarters of 2019 and 2021 was 15%. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and which are based on current expectations and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors identified under the heading Risk Factors in the Companys Annual Report on Form 10-K for the year ended December31, 2021, and the Companys Quarterly report on Form 10-Q for the quarter ended September 30, 2022, as updated by the Companys other filings with the Securities and Exchange Commission.