The Motley Fool owns shares of and recommends Intuitive Surgical. Good afternoon. Let me start with why I think it's adopting, and I'm going to turn to Jamie as to where -- what inning of the baseball game are we in, I'll let Jamie take that. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. Of those patients, 43% were in the da Vinci robotic cohort, 35% in the laparoscopic cohort, and 22% in the open cohort. We anticipate iterating our approach as we learn and the year progresses. Intuitive has managed multiple ways of working for many years. Additionally, constant currency revenue growth is reported on a non-GAAP* basis. Leasing represented 33% of current quarter placements, compared with 29% last year and 43% last quarter. Hi, Gary. I will describe the highlights of our performance on a non-GAAP or pro forma basis. It's physically demanding. your options for e-mail notification, please enter your e-mail address below and click 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. Research consulting in a firm with a clear vision to commercialize the neurotechnology industry at scale. As I conclude, for the balance of the year, we're focused on the following: first, agile and flexible support for our customers globally as they need it, often addressing the return of surgical patients to treatment. I think the thing that we'd call out is it's not the case rates per se to monitor. We are now slightly increasing our forecast and expect full-year gross profit margin to be between 70.5% and 71.5% of revenue. One is we are focused on making sure that our ecosystem, our products, our systems, everything goes around it really delivers against the Quadruple Aim all the way through. Gary, just with you, just thinking through the My Intuitive and what you're doing at the surgeon level. We also note the increasing number of COVID-19 cases in certain geographies associated with the Delta variant. Looking to our finances in the quarter. European procedure growth was generally healthy, though varied by country. Good afternoon, and welcome to Intuitive's second-quarter earnings conference call. So bariatric obviously has been highly laparoscopically penetrated historically. To change your e-mail options at While there continues to be COVID hotspots within some of our Asia Pacific markets, overall procedures in the region performed well. But once you develop a really capable ecosystem, then it has a lot of platform use, and that investment can be recovered over time. And I guess why won't that continue? Even then, it's not enough. Medistim ASA schlgt ordentliche Dividende fr 2021 vor, zahlbar am 9. And -- but right now, I think that remains to be seen how strong those other systems are. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding items such as amortization of intangible assets, share-based compensation (SBC) and long-term incentive plan expenses, and other special items. Jamie, I'll let you take it from there. We also expect spending to increase as a percentage of revenue as investments in headcount, infrastructure, and other support areas catch up to the growth in the business. The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. Where are we going with this one? The next page will display a menu of options. Fourth quarter 2022 revenue was$1.66 billion, an increase of 7%compared with$1.55 billion in thefourth quarter of 2021. The Safety Communication issued on August 20, 2021 by the FDA, is specific to the use and study of robotic-assisted surgery in mastectomy. Investors are cautioned not to place undue reliance on such forward-looking statements. Additional revenue statistics and trends are as follows. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. OK. And last one on SP. I think we're going to have to let it play for another few quarters to see. Starting with procedures. 2021 Intuitive Sustainability Report 7.8 MB. In fact, our commentary is a little bit the opposite that these are being highly utilized. As the phases of the pandemic evolve, we're supporting our team in addressing the opportunities and challenges posed by the pandemic and the ways we work. That means that utilization will go up kind of naturally, that that mix moves toward a higher utilization mix. Revenues are anticipated to be about $1.55 . And we expect those to come back as COVID goes away and the restrictions on travel and the restrictions on other activities go away. For important safety information, indications for use, risks, full cautions, and warnings, please refer to www.intuitive.com/safety. Intuitive Surgical Stock - TipRanks.com Having said that, it's a difficult procedure for surgeons to perform. That's great. In addition, the components of the costs that the Company excludes in its calculation of non-GAAP net income attributable to Intuitive Surgical, Inc. and non-GAAP EPS may differ from the components that its peer companies exclude when they report their results of operations. Da Vinci systems offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. [Operator instructions] And for our first question, we will go to Tycho Peterson. The Company defines non-GAAP net income as net income attributable to Intuitive Surgical, Inc., excluding intangible asset charges, non-cash impairment charges and recoveries, certain acquisition-related items for the re-measurement of contingent consideration, SBC and long-term incentive plan expenses, litigation charges and recoveries, 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, a one-time tax benefit from re-measurement of certain deferred tax assets, and the net tax effects related to intra-entity transfers of non-inventory assets. Lusi Chien - Chief Commercial Officer - Nanome Inc. | LinkedIn On the benign side, often the diagnostic pipelines are shorter. 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. 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. Or is it too early, and you're just saying that might happen in the future? Yes. From the low-end perspective, the 27% reflected there is greater summer seasonality that reflects the possibility of an impact due to pent-up demand for vacation, especially for healthcare workers that have worked extensively during this period with COVID. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 12%. Presentation: Operator. You're developing, trying to increase efficiency, decrease costs, that kind of thing. Follow Allison Gatlin on Twitter at @IBD_AGatlin . Ladies and . Customer appreciation and recurring use of our products has been growing nicely. And regarding the backlog, how do you know there was catch-up and why won't that continue for the next few quarters? SUNNYVALE, Calif., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Intuitive (the "Company") (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended December 31, 2021.Reported revenue and procedure results are consistent with the Company's press release issued on January 12, 2022. Submit. Leasing as a percentage of total sales lag has and will continue to fluctuate with customer and geographic mix. China continued the strength that we've seen over the last couple of quarters. 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. Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Third, driving depth and excellence in regional performance, particularly in Europe and Asia. We kind of outlined what was assumed in the high end of the procedure guidance. Our actual gross profit margin will vary quarter to quarter depending largely on product, regional, and trade-in mix, the impact of product cost reductions, and manufacturing efficiencies and pricing pressure. Second-quarter spending was below our expectations due to activities restricted by COVID, including clinical development, marketing events, and travel costs. I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. So it's hard to time it out, and it doesn't time out over one or two quarters, it times out over years. Hospitalizations of patients due to COVID have negatively impacted da Vinci procedures. We're doing that as a combination of My Intuitive plus some of the simulation work that we do, plus some of the machine learning and video analysis work that we do. Maybe just at the beginning of your comments, I was struck that you emphasized that da Vinci utilization rates are, if I understood you correctly, at the high end of historical averages. Just a couple of comments. Obviously, you made some comments about variance and not factoring in kind of an increase. It has been. All Rights Reserved. What to Watch in Intuitive Surgical's Upcoming Earnings Report Surgical Technologist - Full Time Faculty & Clinical Coordinator To choose Macroeconomic conditions created by COVID could regionally impact hospital capital spending. We placed an additional 20 Ion systems in the quarter, bringing the installed base to 70. Intuitive | Robotic Surgery Conference | 360 Program - Intuitive Surgical These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. Through ingenuity and intelligent technology, we expand the potential of physicians to heal without constraints. Next, we go over to Larry Beigelsen with Wells Fargo. Intuitive Surgical 10.5. The impact of the COVID-19 pandemic on the Companys business has, and continues to, differ by geography and region. Intuitive Surgical, Inc. (ISRG) - Yahoo Finance The second reason to invest in Intuitive Surgical is its incredible profitability. In Europe, the impact of COVID in the second quarter of 2021 varied regionally with slower recovery in Italy and France, while we saw early stages of a recovery in the U.K. Thanks, Tycho. There were nearly 1,500 Ion procedures completed in the second quarter. China procedure growth remains strong and broad-based as a result of continued expansion of the installed base under the current quota. So right now, we talked in the script about adding our work or IDE around colorectal, we're excited about that. Long-term incentive plan expense relates to phantom share awards granted in China by the Companys Intuitive-Fosun joint venture to its employees that vest over four years and can remain outstanding for seven to ten years. Congrats on the quarter. Intangible asset charges consist of non-cash charges, such as the amortization of intangible assets as well as in-process R&D charges. 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. 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. On our last call, we forecast our 2021 full-year pro forma gross profit margin to be within 70% and 71% of revenue. An accomplished communicator seeking opportunities in Ottawa, with a proven ability to multitask under high-pressure situations to meet deadlines. The Company ended the fourth quarter of 2022 with $6.74 billion in cash, cash equivalents, and investments, a decrease of $651 million during the quarter, primarily driven by share repurchases of $1 billion and capital expenditures, partially offset by cash generated from operations. For the first three quarters of 2021, it reported $1.4 billion in operating income on $4.2 billion in revenues. 3.5 Leading Players of Laparoscopy Surgical Robotic System and Consumables by Type in 2021 3.6 Conclusion of Segment by . And we think that the extended use instruments lowers barriers for purchases of systems. Foreign currency fluctuations had a 3% unfavorable impact on fourth quarter 2022 revenue. And then on SG&A, kind of same kind of question. In Q2, U.S. procedures grew 77% year over year, which equates to 16% on a two-year compound annual growth rate basis. And so we're going to continue to invest. Anna Stefani - HES Project Manager - Alira Health | LinkedIn Both gynecology and urology procedure annualized growth strengthened in the quarter, as pandemic pressures eased in the U.S. [Operator instructions] As a reminder, this conference is being recorded. And finally, we will host a question-and-answer session. Intuitive Surgical (ISRG 0.58%) Q3 2021 Earnings Call Oct 19, 2021, 4:30 p.m. So when we talk about My Intuitive, that really is putting the power of interaction and data at the surgeon level in their hands or at the robotics coordinator level in their hands. So several of those things are in the markets, the very first kind of Gen 1, some of them are on Gen 2. OK. And then just one quick follow-up. So energy and stapling and other things, we think that is possible. Jamie Samath Senior Vice President Finance. This article is a transcript of this conference call produced for The Motley Fool. Intuitive Announces First Quarter Earnings | Intuitive Surgical In the quarter, strong trade-ins of older-generation systems for our fourth-generation products and strength in multi-system deals continue to support our thesis that customers that know us best continue to invest with us going forward. But as you heard in our prepared comments, a significant increase in hospitalization is not reflected in the guidance range. In addition, COVID delayed some R&D work, resulting in underspend on prototypes. Incredible returns through ups and downs. Current quarter system placements included 63 into Europe, 16 into Japan, and 19 into China, compared with 18 into Europe, 18 into Japan, and 21 into China in the second quarter of 2020. These forward-looking statements should be considered in light of various important factors, including, but not limited to, the following: the overall macroeconomic environment, which impacts customer spending and the Companys costs, including increased inflation and interest rates, the conflict in Ukraine, disruption to the Companys supply chain, including increased difficulties in obtaining a sufficient supply of materials in the semiconductor and other markets, the risk that the COVID-19 pandemic could lead to material delays and cancellations of, or reduced demand for, procedures; curtailed or delayed capital spending by hospitals; closures of the Companys facilities; delays in surgeon training; delays in gathering clinical evidence; delays in obtaining new product approvals, clearances, or certifications from the U.S. Food and Drug Administration (FDA), comparable regulatory authorities, or notified bodies; diversion of resources to respond to COVID-19 outbreaks; the impact of global and regional economic and credit market conditions on healthcare spending; the risk of the Companys inability to comply with complex FDA and other regulations, which may result in significant enforcement actions; regulatory approvals, clearances, certifications, and restrictions or any dispute that may occur with any regulatory body; guidelines and recommendations in the healthcare and patient communities; healthcare reform legislation in the U.S. and its impact on hospital spending, reimbursement, and fees levied on certain medical device revenues; changes in hospital admissions and actions by payers to limit or manage surgical procedures; the timing and success of product development and market acceptance of developed products; the results of any collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships, including the joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; the Companys completion of and ability to successfully integrate acquisitions, including Opheus Medical; procedure counts; intellectual property positions and litigation; competition in the medical device industry and in the specific markets of surgery in which the Company operates; risks associated with the Companys operations and any expansion outside of the United States; unanticipated manufacturing disruptions or the inability to meet demand for products; the Companys reliance on sole and single source suppliers; the results of legal proceedings to which we are or may become a party, including but not limited to product liability claims; adverse publicity regarding us and the safety of the Companys products and adequacy of training; the impact of changes to tax legislation, guidance, and interpretations; changes in tariffs, trade barriers, and regulatory requirements; and other risks and uncertainties. Jamie, anything? Even though we've seen growth in the procedures that were specifically targeted by extended use instruments, it's hard to discern what is COVID-related versus what is not. 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? And we're pleased. Submit. 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? 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. Intuitive Surgical, and Verb Surgical, among other countless innovations. 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. Tycho Peterson -- JPMorgan Chase & Co. -- Analyst. Frankly, the lack of precision in that estimate is such that it's probably not useful for us to share. 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. Higherfourthquarter revenue was driven by growth in da Vinci procedure volume and system placements. Can you maybe just talk a little bit about the road map? In the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. 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. 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 amortization of intangible assets, 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. Pitching to investors 2023 | GIANT Health London 6th-7th December 2022 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. Intuitive Surgical Stock Is Getting Close To Fair Value Listen to Webcast. Our installed base of SP Systems is now 79: eight in Korea and 71 in the U.S. We completed first cases associated with a U.S. colorectal clinical trial in the second quarter. Intuitive Surgical didn't offer an outlook for 2021. Intuitive | ISRG Investor events & presentations - Intuitive Surgical 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. We expect these programs to continue their ramp as our labs and development programs recover efficiency. I'll maybe start with Marshall on the first one and then go to Gary for the second one. your options for e-mail notification, please enter your e-mail address below and click Attendees can engage with peers, connect with Intuitive resource teams, and explore innovative robotic-assisted technology spanning the care continuum. . That said, other teams are out. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. J.P. Morgan Healthcare Conference 2023 Presentation 4.2 MB. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more.