To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (GAAP), the Company uses the following non-GAAP financial measures: non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., non-GAAP net income per diluted share attributable to Intuitive Surgical, Inc. (EPS), and non-GAAP diluted shares outstanding. And we've received feedback -- positive feedback from surgeons who have indicated that system access has been a key driver for increased procedures. I would just add, Bob, as you saw the COVID hospitalization rates in the U.S. come down in March and into Q2, that frees hospital resources to increase the level of surgery that we do. Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Q2 2021 earnings conference call. Turning to gross profit. And then has the elasticity relative to the extended use program and the pricing adjustments played out relative to your expectations? Non-GAAP income from operations. Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. Ladies and . Bringing it all together. Unrealized gain (loss) - net of tax expense (recovery) effect of $347 and $37 for the three months ended December 31, 2022 and 2021, respectively; ($859) and $(354) for the six months ended . 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. J.P. Morgan Healthcare Conference 2023 Presentation 4.2 MB. While there continues to be COVID hotspots within some of our Asia Pacific markets, overall procedures in the region performed well. Gary will present the quarter's business and operational highlights. Our SEC filings can be found through our website or at the SEC's website. So we're excited about that because it gives them fast and easy access. Next, we go over to Larry Beigelsen with Wells Fargo. INTUITIVE at 2022 Wells Fargo Healthcare Conference. Over 5 years of experience in working with experienced consultants in the banking and high-tech sectors to drive projects and initiatives in a cross-cultural environment. Feb 2021 - Jun 2021 5 months Advised and supported life science entrepreneurs through market validation, regulatory, reimbursement, intellectual property, investor narrative, and talent . Jamie, in his commentary, said that a lot of those procedures are benign procedures, many of them are shorter duration than longer or more complex disease states. For nearly three decades we've created products and services born of inspiration and intelligencefrom robotic-assisted surgical systems to data generation that unlocks the potential to benefit care systems worldwide. And then on SG&A, kind of same kind of question. Thanks for taking the question. Making the world smarter, happier, and richer. How are you thinking about competition? Last quarter, we forecast 2021 procedure growth of 22% to 26%. And with that, I'd like to turn it over to Jamie. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. your options for e-mail notification, please enter your e-mail address below and click Good afternoon. 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. In the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. Yeah. I don't know how much of an update you can give us, but just something on what's happening at that level in terms of software tools and services? During the first half of 2022, the Company saw COVID-19 resurgences impact da Vinci procedure volumes in the U.S. and Europe followed by recoveries. We ended the quarter with cash and investments of $7.7 billion, compared with $7.2 billion last quarter. So I think all of you on the call, you should expect increased alternatives for the customer base. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. Now, I'd turn the conference over to our host, Brian King, Head of Investor Relations for Intuitive Surgical. Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. The Motley Fool owns shares of and recommends Intuitive Surgical. Jamie will take you through procedure dynamics in more detail later in the call. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. The call will be webcast by Nasdaq OMX and can be accessed on Intuitives website at www.intuitive.com or by dialing (877) 692-8955 using the access code 5830756. - building a financial model and investor presentation for fundraising . The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 12%. The year-over-year increase in I&A revenue per procedure reflects increased usage of our advanced instruments, partially offset by the impact of extended use instruments. During the second half of 2022, the Company saw COVID-19 resurgences impact da Vinci procedure volumes in China. These forward-looking statements are necessarily estimates reflecting the judgment of the Companys management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. My Intuitive allows surgeons and care team members to access their data, to manage their profile, their learning, and otherwise interact with Intuitive through an easy-to-use mobile app in the palm of their hand. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. Building a great robot is a hard first step. [Operator Instructions] As a reminder, today's call is being recorded. The Company defines non-GAAP gross profit as gross profit, excluding intangible asset charges and SBC and long-term incentive plan expenses. To choose It's physically demanding. We are developing and deploying technology-enabled ecosystems to support our customers' pursuit of the Quadruple Aim, better outcomes, better patient experiences, better care team experiences, and lower total cost to treat per patient episode. 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. By uniting advanced systems, progressive learning, and value-enhancing services, we help physicians and their teams optimize care delivery to support the best outcomes possible. It is in fact a physically taxing procedure, as Gary described. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. So bariatric obviously has been highly laparoscopically penetrated historically. SP procedures grew 133% year over year, with much of that growth coming from the United States. And we're building into the broader digital ecosystem for SP. Intuitive will hold a teleconference at 1:30 p.m. PST today to discuss the fourth quarter 2021 financial results. Just to be clear on your answer to Tycho's question. And then on a two-year compounded basis, you're kind of where you thought you might be pre pandemic. Jan 2023 - Present3 months. Copyright 2023 Intuitive Surgical. I know last quarter, you kind of brought up the concept of going after thoracic and some additional other areas. So I wouldn't start building lots of leverage into your models. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. To the extent that COVID impacts procedures, it will also impact capital purchases. First, we are broadening access to our advanced instruments for our da Vinci Fourth Generation Multiport Systems through pursuit of additional clearances and launches outside the U.S. Second, we are expanding our da Vinci SP offering by broadening its regional and clinical indications and by adding it to its suite of instruments and accessories. Intuitive Surgical's adjusted net . Google's Women Techmakers program provides visibility, community, and resources for women in technology. Submit. INTUITIVE SURGICAL, INC.-14.33%: 79 654: BOSTON . These awards were modified in the fourth quarter of 2021 and are now valued based on certain key performance metrics. We think we can bring some outstanding imaging capabilities, including florescence imaging into that space. ISRG stock has split before. We continue to operate in a challenging supply chain environment and have experienced longer lead times and delayed deliveries from our suppliers. And we're pleased. PROCEPT BioRobotics is a surgical robotics company enabling better patient care by developing transformative solutions in urology. And regarding the backlog, how do you know there was catch-up and why won't that continue for the next few quarters? It's not just the robot. OK. That's helpful. An investor who invested $10,000 in Warren Buffett's hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made . What's left to do from maybe a product or procedure or instrument point of view? From a U.S. perspective, I think it's early, and I think we're simply acknowledging the risk. And I think you've alluded to adding additional instruments and accessories, so can you talk on the hardware side as well? . All Rights Reserved. Email: investor.relations@intusurg.com. Our focus is in clinical capability and productivity of the installed base we have. Submit. The authors concluded in part, "When compared to open, the robotic-assisted surgery group is associated with a comparable operative time, shorter length of stay and lower reoperation rate through 30 days. In short, our commercial business has recovered more quickly than our spending due to the different ways that pandemic impacts our customers, our supply chains, and our hiring. So we don't really call them out as individual revenue lines. 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. Keep up-to-date with changes . That's right -- theythink these 10stocks are even better buys. Trade-in activity can fluctuate and be difficult to predict. Da Vinci systems offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. Product and customer mix fluctuate quarter to quarter, which can cause fluctuations in gross margins. your options for e-mail notification, please enter your e-mail address below and click You may automatically receive Intuitive Surgical financial information by e-mail. However, our expense growth rate was modestly lower than our plan, driven by pandemic-related factors. The study contains 371 patients that underwent an incisional hernia repair procedure across 17 institutions within the United States between May 2016 and September 2019. System placements in the quarter reflected procedure growth and hospitals upgrading to -- in order to access or standardize on fourth-generation capabilities. The Company defines non-GAAP EPS as non-GAAP net income attributable to Intuitive Surgical, Inc. divided by non-GAAP diluted shares, which are calculated as GAAP weighted-average outstanding shares plus dilutive potential shares outstanding during the period. All of that, to me, indicates that the business feels in balance. Yeah, sure. They're giving their PowerPoints about what they think is going to happen next and some other things. OK. And then just one quick follow-up. In this Backstage Pass video, which aired Sept. 29, Motley Fool contributor Brian Withers shares his thoughts on Intuitive Surgical, highlighting the metrics investors need to watch when the . To the extent that hospitalizations expand significantly due to COVID and its variants, like currently being experienced in parts of the world, it could negatively impact da Vinci procedures. Intuitive Surgical's Q1 2021 adjusted earnings per share is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. Intuitive Surgical, Inc. ISRG recently announced preliminary results for fourth-quarter and full-year 2021. The constant currency revenue percentage change is calculated by determining the increase in the current period constant currency revenue over the prior period revenue. The Company shipped 385 da Vinci Surgical Systems, an increase of 18% compared with 326 in the fourth quarter of 2020. We also note the increasing number of COVID-19 cases in certain geographies associated with the Delta variant. I will now summarize our GAAP results. Good afternoon. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. Field and marketing costs will tick up if the pandemic wanes. What was the second part of your question again, Larry? Medistim ASA schlgt ordentliche Dividende fr 2021 vor, zahlbar am 9. With regard to income tax, we expect the range of our second-half 2021 pro forma tax rate to be between 21% and 22% of pre-tax income, slightly higher than the range we provided on the last call, reflecting a higher mix of U.S. income. Intuitive Surgical, and Verb Surgical, among other countless innovations. Just on the recent spread of COVID and variants and the potential impact on demand and hospitals' ability to do procedures, are you starting to see that impact now? I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. In the U.S. and Europe, extended use instruments were nearly fully adopted in the second quarter. A contribution to the Intuitive Foundation reduced fourth quarter 2021 GAAP and non-GAAP* income from operations by $30 million. The Company defines non-GAAP net income as net income attributable to Intuitive Surgical, Inc., excluding amortization of intangible assets, SBC and long-term incentive plan expenses, litigation charges and recoveries, a gain on the sale of a business, gains (losses) on strategic investments, adjustments attributable to noncontrolling interest in joint venture, net of the related tax effects, and tax adjustments, including the excess tax benefits or deficiencies associated with SBC arrangements and the net tax effects related to intra-entity transfers of non-inventory assets. The impact of the COVID-19 pandemic on the Companys business has, and continues to, differ by geography and region. Rick Wise -- Stifel Financial Corp. -- Analyst. Fourth quarter 2021 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $477 million, or $1.30 per diluted share, compared with $434 million, or $1.19 per diluted share, in the fourth quarter of 2020. That concludes our prepared comments. Affiliated with the world's largest international neurotechnology community, NeurotechX, with 18,000+ members . To supplement its consolidated financial statements, which are prepared and presented in accordance with accounting principles generally accepted in the United States (GAAP), the Company uses the following non-GAAP financial measures: constant currency revenue, non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., non-GAAP net income per diluted share attributable to Intuitive Surgical, Inc. (EPS), and non-GAAP diluted shares outstanding. You may automatically receive Intuitive Surgical financial information by e-mail. I'm here together with my CFO, Thomas Jakobsen.. | 2 Mrz 2023 . Reported revenue and procedure results are consistent with the Companys press release issued on January 12, 2022. The number we're watching closely is hospitalization. We've seen a few teams come out and field systems that are alternatives to ours. The Company ended the first quarter of 2022 with $8 .40 billion in cash, cash equivalents, and investments, a decrease of $218 . 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. You've been spending a lot there. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. . The authors concluded, "The results revealed that robotic-assisted thoracic surgery is a feasible and safe technique compared with VATs in terms of short-term and long-term outcomes." We're clearly seeing that in markets like India, Taiwan, there's been an impact in terms of how they've handled that from a healthcare system perspective and the resulting impact on our procedures. In the United States, procedure growth was strong in the quarter, driven by growth in bariatric surgery, hernia repair, and cholecystectomy. Find the latest Intuitive Surgical, Inc. (ISRG) stock quote, history, news and other vital information to help you with your stock trading and investing. It flows from respect for and understanding of patients and care teams, their needs, and their environment. Incredible returns through ups and downs. Doctors talking to us about further expansion of utilization. Yes. Corporate Governance Guidelines 384.4 KB. The Company placed 369 da Vinci Surgical Systems in the fourth quarter of 2022, compared with 385 systems in the fourth quarter of 2021. Statements using words such as estimates, projects, believes, anticipates, plans, expects, intends, may, will, could, should, would, targeted, and similar words and expressions are intended to identify forward-looking statements. 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Want $1 Million in Retirement? Yes, Tycho. For important safety information, indications for use, risks, full cautions, and warnings, please refer to www.intuitive.com/safety. 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. Please go ahead, sir. And sequential growth in what they can do with the system remains our focus on SP for now. Second-quarter OUS procedure volume grew approximately 51%, compared with a 7% decline for the second quarter of 2020 and 23% growth last quarter. There are several models of the da Vinci Surgical System. 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. So that's a multi-quarter conversation. Statements using words such as estimates, projects, believes, anticipates, plans, expects, intends, may, will, could, should, would, targeted, and similar words and expressions are intended to identify forward-looking statements. Intuitive Surgical, Inc.Which belongs to the Zacks Medical - Instruments industry, posted revenues of $1.29 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 16. . We think there is an opportunity to accelerate learning and to drive increased insight for a surgeon into their own progress. The next page will display a menu of options. We placed 20 Ion systems in the quarter, bringing the installed base to 70 systems. ET. Or is it too early, and you're just saying that might happen in the future? And the capital to support that demand has not run ahead of the procedure demand. Can you talk about kind of next steps to the program here, particular geographies you're targeting? Second-quarter revenue reflected growth in both procedures and system placements. Q2 2022 INTUITIVE Earnings Conference Call. We also believe that growth benefited from some procedures that were previously deferred due to delays in testing and patient concern over COVID. That's great. These forward-looking statements include, but are not limited to, statements related to the expected impacts of the COVID-19 pandemic on the Companys business, financial condition, and results of operations, future results of operations, future financial position, the Companys financing plans and future capital requirements, the Companys potential tax assets or liabilities, and statements based on current expectations, estimates, forecasts, and projections about the economies and markets in which the Company operates and the Companys beliefs and assumptions regarding these economies and markets. Third, driving depth and excellence in regional performance, particularly in Europe and Asia. 2021 Proxy Statement - Special Meeting 224.6 KB. Listen to Webcast. Procedures recovered nicely in Q2. Montreal, Quebec, Canada. any time, re-enter your e-mail address and click Submit, then adjust your form entries. Both gynecology and urology procedure annualized growth strengthened in the quarter, as pandemic pressures eased in the U.S. And I have one follow-up. The second quarter of 2020 included $59 million of service credits issued in conjunction with our Customer Relief Program, higher period costs associated with lower production, and higher excess and obsolete inventory charges. Yes. During the quarter, a group from the Shenzhen Hospital Naval Medical University in China, published a meta-analysis in BMC cancer comparing robotic-assisted thoracic surgery versus video-assisted thoracic surgery, or VATs, for lung lobectomy or segmentectomy in patients with nonsmall cell lung cancer. 20, 2021Corporate Participants: Calvin Darling Senior Director of Finance, Investor Relations. You may automatically receive Intuitive Surgical financial information by e-mail. 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. Leasing and alternative financing arrangements enable customer access to capital. . We also saw an increase in our IDN customers opening new da Vinci and Ion programs in hospitals within their network that did not previously have an Intuitive robotics program, indicating their interest in diversifying access to Intuitive programs across their networks. The Motley Fool has a disclosure policy. Intuitive advances minimally invasive care by innovating at the point of possibility. COVID had a significant impact on da Vinci procedure volumes in the second quarter of 2020. System placements came in above plan, and system ASP and I&A revenue per procedure tracked slightly above our expectations, together driving revenue of $1.46 billion in Q2. 07/21/22 - 1:30 PM PDT. We look forward to talking with you again in three months. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. INTUITIVE SURGICAL, INC.UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED TWELVE MONTHS ENDED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (IN MILLIONS), INTUITIVE SURGICAL, INC.UNAUDITED RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(IN MILLIONS, EXCEPT PER SHARE DATA), Contact: Investor Relations(408) 523-2161.