InMode Ltd. (INMD, Financial) announced its first-quarter results for 2025, reporting a revenue of $77.9 million, slightly surpassing expectations of $77.57 million. Despite navigating a challenging macroeconomic landscape and decreased consumer demand, the company's international operations—especially in Europe—demonstrated resilience and set new revenue records.
The company continues to focus on innovation, recently launching its OptimasMAX and Ignite platforms, which are expected to strengthen its position within the aesthetics technology market. While the U.S. market has been less favorable, contributing to a 4%-5% decline in operating margins, international sales have grown to account for a larger portion of the company's revenue.
Chief Financial Officer Yair Malca highlighted the company's robust balance sheet, which aids in addressing immediate challenges while supporting long-term growth strategies, including talent acquisition. Additionally, InMode completed its fifth share repurchase program, buying back 6.95 million shares for $127 million. However, ongoing U.S. tariffs, currently at 10%, are projected to adversely impact gross margins by 2%-3% throughout the year.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for InMode Ltd (INMD, Financial) is $21.17 with a high estimate of $29.00 and a low estimate of $15.00. The average target implies an upside of 30.50% from the current price of $16.22. More detailed estimate data can be found on the InMode Ltd (INMD) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, InMode Ltd's (INMD, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for InMode Ltd (INMD, Financial) in one year is $30.31, suggesting a upside of 86.87% from the current price of $16.22. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the InMode Ltd (INMD) Summary page.
INMD Key Business Developments
Release Date: February 04, 2025
- Q4 2024 Revenue: $97.9 million
- Full Year 2024 Revenue: $394.8 million, a 20% decrease compared to 2023
- Q4 2024 Gross Margin (GAAP): 79%
- Full Year 2024 Gross Margin (Non-GAAP): 81%
- Minimally Invasive Technology Platforms Revenue: 86% of Q4 and 87% of full year 2024 total revenues
- Consumables and Service Revenue: 20% of full year 2024 revenue, up from 16% in 2023
- International Sales Q4 2024: $35.2 million, 36% of sales, a 23% decrease year-over-year
- Full Year 2024 International Sales: $150 million, 38% of sales, a 19% decrease compared to 2023
- Q4 2024 GAAP Operating Expenses: $49.8 million
- Full Year 2024 GAAP Operating Expenses: $204.5 million, a 5% decrease year-over-year
- Q4 2024 GAAP Operating Margin: 28%
- Full Year 2024 GAAP Operating Margin: 28%
- Q4 2024 Non-GAAP Operating Margin: 32%
- Full Year 2024 Non-GAAP Operating Margin: 33%
- Q4 2024 GAAP Diluted EPS: $1.14
- Full Year 2024 GAAP Diluted EPS: $2.25
- Q4 2024 Non-GAAP Diluted EPS: $0.42
- Full Year 2024 Non-GAAP Diluted EPS: $1.76
- Cash and Cash Equivalents (as of Dec 31, 2024): $596.5 million
- Q4 2024 Cash from Operating Activities: $32.4 million
- 2024 Share Repurchase: $285 million, 16 million ordinary shares
- 2025 Revenue Guidance: $395 million to $405 million
- 2025 Non-GAAP Gross Margin Guidance: 80% to 82%
- 2025 Non-GAAP Income from Operations Guidance: $130 million to $135 million
- 2025 Non-GAAP EPS Guidance: $1.95 to $1.99
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- InMode Ltd (INMD, Financial) launched two new platforms, IgniteRF and OptimasMax, which are expected to see better adoption in 2025.
- The company maintained a strong emphasis on R&D, driving innovation despite challenging market conditions.
- InMode Ltd (INMD) returned more than $285 million to shareholders through share repurchases, representing approximately 19% of its share capital.
- The company plans to launch two new platforms in 2025, including a fractional laser CO2 platform, which is expected to gain traction.
- InMode Ltd (INMD) ended the year with a strong balance sheet, holding cash and cash equivalents, marketable securities, and deposits totaling $596.5 million.
Negative Points
- InMode Ltd (INMD) faced a 20% decrease in total revenue for 2024 compared to 2023, attributed to decreased demand and high interest rates.
- International sales outside the US decreased by 19% for the full year of 2024 compared to 2023.
- The company experienced a decline in minimally invasive procedures, impacting consumables and service revenue.
- Gross margin decreased slightly due to increased component costs and lower sales volumes.
- InMode Ltd (INMD) does not foresee an immediate economic turnaround, with no signs of improvement in the macroeconomic environment at the start of 2025.
