Presentation: Operator. (4) Income tax expense includes the effect of the following items: One-time tax benefit from re-measurement of certain deferred tax assets, Discrete tax expense arising from the conclusion of a tax matter, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. It last split in October of 2017. 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. . Second-quarter 2021 procedures increased approximately 68% compared with the second quarter of 2020 and increased approximately 13% compared with last quarter. We also find that our economic offerings with da Vinci X and EUP, we have choices that we ourselves can offer our customers. Mark the "Pitching to Investors Programme" on the 7th December 2022 in your calendar! 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 outlook we are providing on today's call does not reflect risks associated with a significant increase in COVID-related hospitalizations in relation to the Delta variant or other potential new variants. 3 min read. May 2021 - Present 1 year 10 months. 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. And as competition progresses in various markets, we will likely experience longer selling cycles and price pressures. 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. Jamie will provide additional procedure commentary later in this call. At the time you receive a -- by the time you're at -- that market penetration rates that are significant. 20, 2021Corporate Participants: Calvin Darling Senior Director of Finance, Investor Relations. Gosh, that's awfully encouraging sounding. In addition to that, we still think this is a great opportunity to continue to invest in the ecosystem of products and capabilities at this point in time before competition really gets any kind of toehold. In there is OUS markets continue to be choppy given that, in many cases, those markets are behind the U.S., for example, in their vaccination rollouts, and that leaves the possibility of continued resurgences and localized lockdowns. The Company calculates constant currency revenue by translating current period revenue using prior period exchange rates. 2021 Intuitive Surgical Inc - - USD 2020 Intuitive Surgical Inc . And just, you know, on competition, it does seem like the noise is increasing. 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. Our second-quarter pro forma net income was $477 million or $3.92 per share, compared with $132 million or $1.11 per share for the second quarter of 2020 and $427 million or $3.52 per share for the last quarter. It's hard to have a precise measure on it. Phone: 408-523-2161 Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. ISRG stock has split before. The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. I think they are ecosystem enablers and can result in very high customer satisfaction when done well. Next, we're going to the line of Rick Wise with Stifel. your options for e-mail notification, please enter your e-mail address below and click There are no upcoming events available at this time. To change your e-mail options at We also believe that growth benefited from some procedures that were previously deferred due to delays in testing and patient concern over COVID. Fourth quarter 2022 constant currency revenue increased 10% compared to the fourth quarter of 2021. Please go ahead. Learn More, Intuitive Surgical(ISRG 2.61%)Q22021 Earnings CallJul 20, 2021, 4:30 p.m. After all, the newsletter theyhave run for over a decade, Motley Fool Stock Advisor, has tripled the market.*. OUS markets grew 51% year over year or 19% on a two-year compound annual growth rate basis. The increase in instruments and accessories revenue was primarily driven by approximately 18% growth in da Vinci procedure volume, partially offset by customer buying patterns and foreign currency impacts. Supporting investors, corporations, start-ups, and academic research labs. Just a couple of comments. On the why side, it's -- bariatrics has been a little different than other procedure for us. To change your e-mail options at This article is a transcript of this conference call produced for The Motley Fool. All of that, to me, indicates that the business feels in balance. Email: investor.relations@intusurg.com. In terms of our underlying numbers, we're growing at a little faster rate in the revision section, sleeves and bypass grow about the same rate. 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. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. 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. Fourth quarter 2021 GAAP net income attributable to Intuitive Surgical, Inc. was $381million, or $1.04 per diluted share, compared with $365million, or $1.01 per diluted share, in the fourth quarter of 2020. To change your e-mail options at 2021 : 2022 : 2021 : Revenue $ 12,789 $ 10,997 $ 45,520 $ 45,183 : Cost of goods sold : 3,986 . Looking at the past eight quarters in context, our compound annual growth rate for procedures for the period Q2 2019 through Q2 2021 of 16.5% is approximately the growth we would have expected absent the pandemic. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. 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. Accordingly, they are subject to significant volatility based on the performance of these metrics and are not tied to performance of the Companys business within the period. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. In reporting the results, adjusted using a propensity weighted approach, the authors noted that during the two- to four-week standard of care visit period, fewer patients report the need to take prescription pain medication for the robotic cohort as compared to the laparoscopic and open cohorts: 65.2% for the robotic cohort as compared to 78.8% for the laparoscopic cohort, compared to 79.8% for the open cohort. 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. And we've seen both good clinical outcomes, but also high surgeon satisfaction and better ergonomics. Thanks, Tycho. And that has implications for the kind of imaging we do, it has implications for task analysis and training, and we're doing those things, and those can be aggregated across a surgical platform. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Growth in our second largest market, China, continued to be strong with multiple specialties contributing. Intuitive Surgical's adjusted net . The Zacks . Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. as can be seen with the more than 29,000 peer-reviewed scientific articles that reference Intuitive technologies. Philip Kim, our head of investor relations, will not be joining on today's call as he's currently on paternity leave following the birth of his daughter. Second-quarter spending was below our expectations due to activities restricted by COVID, including clinical development, marketing events, and travel costs. To choose Contact Information. During 2022, the impact of the COVID-19 pandemic on the Companys business has differed by geography and region. Second, disciplined execution of our launches, including our advanced instruments, SP, Ion, and digital efforts. We look forward to talking with you again in three months. Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. I think our customers will take their time to evaluate new things as they go. Fourth quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $439 million, or $1.23 per diluted share, compared with $473 million, or $1.29 per diluted share, in the fourth quarter of 2021. I guess first question on guidance. Pro forma operating expenses increased 24% compared with the second quarter of 2020 and increased 5% compared with last quarter. What we've seen, though, is that what happens in the PowerPoints and what happens a year later is different. And we've received feedback -- positive feedback from surgeons who have indicated that system access has been a key driver for increased procedures. J Global Clinical Engineering, Special Issue 4, 2021 - Proceedings IV ICEHTMC 2021 - ISSN 2578 2762 1 dicembre 2021 . Intangible asset charges consist of non-cash charges, such as the amortization of intangible assets as well as in-process R&D charges. 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. your options for e-mail notification, please enter your e-mail address below and click The next page will display a menu of options. Shifting to the extended use program, you know, you've been out for around six months, smaller rollout in Europe in the fourth quarter. OK. Well, thank you, and our moderator, that was our last question. I just wondered, are you suggesting or should we be thinking that we could be in the front of a new wave of capital acquisition, with again, capital released because of the need to add additional systems to accommodate the expanding number of procedures? Copyright 2023 Intuitive Surgical. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. And I think you've alluded to adding additional instruments and accessories, so can you talk on the hardware side as well? Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. I think the thing that we'd call out is it's not the case rates per se to monitor. Finally, we are strengthening our digital capabilities across our ecosystem. Fourth quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $439 million, or $1.23 per diluted share, compared with $473 million, or $1.29 per diluted share, in the fourth quarter of 2021. We are now slightly increasing our forecast and expect full-year gross profit margin to be between 70.5% and 71.5% of revenue. Most of our offices globally are reopening with this hybrid approach. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 12%. We will now open the call to your questions. Visit www.intuitive.com/en-us/products-and-services/ion. We placed 20 Ion systems in the quarter, bringing the installed base to 70 systems. Ion procedures grew sixfold over Q2 2020 to nearly 1,500 procedures in the quarter, reflecting recovery from the pandemic, the growth in new sites, and growth in utilization at existing sites. Corporate Governance Guidelines 384.4 KB. The stock split will take place after market close on October 5th, 2021. Yeah. Reported revenue and procedure results are consistent with the Companys press release issued on January 12, 2022. Growth in the U.K. was strong, with a slower recovery in France, Italy, and Germany. And that is both painful and an opportunity. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 10%. Cost basis and return based on previous market day close. 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. China procedure growth remains strong and broad-based as a result of continued expansion of the installed base under the current quota. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. And then on a two-year compounded basis, you're kind of where you thought you might be pre pandemic. Our digital learning programs continue to be an important part of our overall learning initiatives. 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." 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. Pagination. To make the world smarter, happier, and richer. It's physically demanding. These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. (USD millions), considering 2021 as the base year . Copyright 2023 Intuitive Surgical. Long-term incentive plan expense relates to phantom share awards granted in China by the Companys joint venture, Shanghai Fosun Pharmaceutical (Group) Co., Ltd., to its employees that vest over four years and can remain outstanding for seven to ten years. (1) Services revenue includes the effect of the following item: (2) Selling, general and administrative includes the effect of the following item: (3) Income from operations includes the effect of the following item: (4) Interest and other income, net includes the effect of the following item: (5) Income tax expense includes the effect of the following items: Excess tax benefits related to share-based compensation arrangements. And I think for a subset of the benign procedures that have been kind of deferred elective procedures, hospitals can recover those pretty quickly. European procedure growth was generally healthy, though varied by country. Obviously, you made some comments about variance and not factoring in kind of an increase. Outside the U.S., we placed 115 systems in the second quarter, compared with 72 in the second quarter of 2020 and 108 systems last quarter. The fourth quarter 2022 system placements included 154systems placed under operating lease and usage-based arrangements, compared with 143 systems in thefourth quarter of 2021. 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. *Average returns of all recommendations since inception. The Board of Directors of Intuitive Surgical approved a 3:1 stock split on August 5th, 2021. Non-GAAP income from operations. We believe value creation in surgery and acute care is foundationally human. The tax effects of the non-GAAP items are determined by applying a calculated non-GAAP effective tax rate, which is commonly referred to as the with-and-without method. There was the usual impact of seasonality from vacations like Easter, but nothing notable within the quarter. 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.