Intuitive Surgical, Inc.
CEO : Dr. Gary S. Guthart Ph.D.
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | 6.7% YoY | -17.3% | -12.3% | 2023-01-24 |
Jamie Samath says,
Revenue and Procedures
- 2022 procedures grew by 18% as compared to 2021 or 15% on a three-year compound annual growth rate basis.
- Recurring revenue represented 79% of total revenue and grew 15% over the prior year.
- Total revenue of $6.2 billion increased 9% year-over-year and grew approximately 12% on a constant currency basis.
- Q4 revenue was $1.66 billion, an increase of 7% from last year. On a constant currency basis, fourth quarter revenue grew approximately 10%.
Capital Performance
- 369 systems were placed, 4% lower than the 385 systems placed in the fourth quarter of last year.
- 110 trading transactions in the quarter, as compared to 117 last year.
- Leasing represented 42% of Q4 placements compared with 37% last quarter and last year.
- Q4 system average selling prices were $1.43 million as compared to $1.45 million last year.
Ion Platform
- During the year, we tripled procedures to just over 23,000 and doubled system placements to 192 as compared to 2021.
- In Q4, we placed 67 Ion systems as compared to 31 in Q4 of 2021.
- Fourth-quarter Ion procedures of approximately 7,900 increased 169% as compared to last year.
Operating Expenses and Capital Expenditures
- Fourth-quarter pro forma operating expenses increased 19% compared with last year.
- We expect 2023 capital expenditures in a range of $800 million to $1 billion, of which approximately two-thirds will be for facilities to expand our manufacturing capacity.
- We will be expanding the footprint of our high-volume, low-cost instrument site in Mexico to support procedure growth across all of our platforms.
GAAP Results
- GAAP net income was $325 million or $0.91 per share for the fourth quarter of 2022 compared with GAAP net income of $381 million or $1.04 per share for the fourth quarter of 2021.
- The adjustments between pro forma and GAAP net income are outlined and quantified on our website and include excess tax benefits associated with employee stock awards, employee stock-based compensation, amortization of intangibles, litigation charges and gains and losses on strategic investments.
Gary Guthart says,
Procedure Growth
- 18% procedure growth for Q4 and full year 2022, approaching pre-pandemic levels
- Areas of strength included general surgery in the United States, particularly benign procedures, colon and rectal procedure growth, and strong growth beyond urology outside the US
- Ion procedures showed continued strength with 218% growth in 2022 compared with 2021, and SP procedures grew 38% over the same period, with the majority of its growth coming from Korea
Capital Placement and Utilization
- Placed 369 systems in Q4 compared with 385 in Q4 2021
- Installed base growth rate was 12% for multiport, 149% for Ion, and 22% for SP in 2022
- Utilization grew 5% for multiport and 10% for Ion, but was roughly flat for SP over the year
Revenue and Expenses
- Revenue grew 9% in 2022, impacted by the strength of the dollar and the decline of the trade-in population of third-generation multiport systems
- Expenses landed at the higher end of spend guidance reflecting continued R&D investments that support the growth of platforms and digital products, expansion of manufacturing and commercial capabilities, and capital amortization driven by the expansion of the global footprint
Platform Investments
- Investments in multiport platform enabled the addition of new regulatory clearances, a new model with the da Vinci X, new instruments and accessories, new imaging capabilities, and new software products
- 65 representative clinical procedure indications in the United States to our fourth-generation multiport platform since its launch
- Investing in new generations of the multiport platform that bring new and significantly enhanced capabilities, with the highest priority on core surgical capability targeting improved patient outcomes
Ion and SP Platforms
- Ion adoption has been healthy based on its ability to meet an unmet clinical need in lung biopsy, and we are focused on improving the manufacturability, cost and robustness of ion products to support its rapid growth in the US
- SP has supported strong adoption in Korea and has recently obtained PMDA clearance with broad indications in Japan
- Pursuing additional indications for SP beyond colorectal surgery and thoracic surgery, and plan to submit our dossier to our notified body in Europe mid-year 2023
2023 Priorities
- Increased adoption and focused procedures defined by country through outstanding training, commercial and market access execution
- Pursuit of expanded indications and launches for new platforms
- Excellent performance in the continuity of supply, product quality and services provision as we emerge from pandemic stresses
- Pursuit of increased productivity and our functions that benefit from scale
Q & A sessions,
Integration of Surgical Practices in Multiple Countries
- Vertically integrating the supply chain for stability and robustness
- Investing in core technologies and instruments to lower costs and provide higher quality
- Global opportunity to support the standard of care in multiple countries
Digital Products Architecture and Business Architecture
- Seamless integration of digital products to support multiple platforms in multiple countries
- Gives the company a quality advantage, leverage capability, and lowers costs for customers
- Requires planning and forward investment in core technology, facilities, and manufacturing base
Competition in China
- Entry of competitors in China is natural and expected
- Early entry tends to be placements, clinical trials, and setting up capacity
- Core competitive dynamics will show in the middle and late innings
Product Opportunities Across Platforms
- Expanding indication and procedure markets for SP in 2023
- Positive feedback on Ion’s PRECIsE tier data and adoption
- Opportunities in ablation in the long and other indications, but current focus is on finishing the job in the lung
Pricing and Cost Increases
- Core costs in the supply chain and wage costs have gone up and are sticky
- Monitoring pricing through routine processes
Change in BMI Guidelines in Bariatrics
- It’s early to determine the effect on the total surgical term for bariatrics
- No reflection in the 12% to 16% guidance provided
- Real protocols patients have to go through before becoming eligible for surgery, even with the change in guidelines
No bad stock 