intuitive surgical investor presentation 2021 intuitive surgical investor presentation 2021

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. Submit. We will now open the call to your questions. 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. 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. Non-GAAP income from operations. In the U.S., procedures that are dependent on diagnostic pipelines also grew, albeit at lower rates as compared to benign procedures. Intuitive Announces Fourth Quarter Earnings, Intuitive Announces Preliminary Fourth Quarter and Full Year 2022 Results, Intuitive becomes largest robotic-assisted surgery provider to be accredited by the Royal College of Surgeons of England, Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, J.P. Morgan Healthcare Conference 2023 Presentation, Q3 2022 INTUITIVE Earnings Conference Call. Intuitive 360 is an annual conference for executive, clinical, and operational leadership focusing on robotic service line development and the surgical care team. 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. The results of the meta-analysis found that robotic-assisted thoracic surgery compared to VATs was associated with, among others, the following significant findings: 50.4 milliliters lower blood loss, a 50% lower chance of conversion to an open procedure, a 1.1 day shorter stay in the hospital and a 10% less chance of patient experience to postoperative complication. So I think all of you on the call, you should expect increased alternatives for the customer base. Listen to Webcast. Affiliated with the world's largest international neurotechnology community, NeurotechX, with 18,000+ members . The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. These awards were modified in the fourth quarter of 2021 and are now valued based on certain key performance metrics. Our digital learning programs continue to be an important part of our overall learning initiatives. So we're making those investments to move that forward. However, to gain a more complete understanding of the body of evidence, we encourage all stakeholders to thoroughly review the extensive detail of scientific studies that have been published over the years. It also reflects lower diagnostic pipelines and perhaps some reluctance for patients to visit hospitals. Fourth quarter 2022 GAAP net income attributable to Intuitive Surgical, Inc. was $325 million, or $0.91 per diluted share, compared with $381 million, or $1.04 per diluted share, in the fourth quarter of 2021. 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 . An accomplished communicator seeking opportunities in Ottawa, with a proven ability to multitask under high-pressure situations to meet deadlines. Marshall, the operating margin coming in at the 43%, I'm just wondering how much we can extrapolate here? Just to be clear on your answer to Tycho's question. We are refining our estimate and expect our full-year pro forma operating expense growth to be between 17% and 21%. Copyright 2023 Intuitive Surgical. For the first three quarters of 2021, it reported $1.4 billion in operating income on $4.2 billion in revenues. Contact Information. I've had the privilege of seeing Intuitive develop the use of robotics in multiple clinical indications over the years. We believe value creation in surgery and acute care is foundationally human. On the why side, it's -- bariatrics has been a little different than other procedure for us. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. Thirty-eight percent of systems placed in the second quarter involved trade-ins, which is lower than the 40% last year and the 44% last quarter. 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? We also find that our economic offerings with da Vinci X and EUP, we have choices that we ourselves can offer our customers. To change your e-mail options at Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). As part of our mission, we believe that minimally invasive care is life-enhancing care. So it's not a scientific study, just my view. I will also summarize our GAAP performance later in my prepared remarks. Just in terms of intra-quarter procedure trends, if you're asking, Larry, month by month, there was nothing notable actually that we would call out. Presentation: Operator. Fourth quarter 2021 GAAP income from operations increased to $450million, compared with $416million in the fourth quarter of 2020. 2022 Proxy Statement 36.4 MB. In Q2, U.S. procedures grew 77% year over year, which equates to 16% on a two-year compound annual growth rate basis. Copyright 2023 Intuitive Surgical. Hi, Gary. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. Intuitive(Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery. They're calling on customers. We're doing what we call the procedure development and the trial development around other indications, we think there'll be an opportunity in thoracic, as well as other ones beyond it. You go from an issue to identification to closure more quickly. You may automatically receive Intuitive Surgical financial information by e-mail. Yeah. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 10%. At the time you receive a -- by the time you're at -- that market penetration rates that are significant. *Stock Advisor returns as of June 7, 2021. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. With an initial focus on BPH, the company's AquaBeam Robotic System delivering Aquablation therapy, is the first FDA-cleared, automated surgical robot for the treatment of lower urinary tract symptoms (LUTS) due to benign prostatic hyperplasia (BPH). The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. Mai 2022: CI. 10/08/22 - 11:00 AM EDT. Customer appreciation and recurring use of our products has been growing nicely. How are you thinking about competition? The system features an ultra-thin, ultra-maneuverable catheter that allows navigation far into the peripheral lung and provides the unprecedented stability necessary for precision in biopsy. Thank you. We rolled out the extended use instruments in Europe and the U.S. back in the fourth quarter. That will play out over the next several quarters as we accrue patients. While the percentage of systems placed under operating leases fluctuates quarter to quarter, we believe leasing will increase as a percentage of sales over time, which will result in the deferral of otherwise current revenue into future periods. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Companys business. The Companys calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. So I'd encourage those folks on the call, it's likely to be a comparison of ecosystems in delivering the Quad Aim over time. I hear your question is asking us how much is left, how much of the catch-up is left. We're OK. We're not frightened of that. 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 I guess why won't that continue? To the extent that COVID impacts procedures, it will also impact capital purchases. any time, re-enter your e-mail address and click Submit, then adjust your form entries. In addition, COVID delayed some R&D work, resulting in underspend on prototypes. Yes, Tycho. Fourth quarter 2022 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $18 million, or $0.05 per diluted share, compared with $27 million, or $0.07 per diluted share, in the fourth quarter of 2021. Phone: 408-523-2161 And then now we have rolled it out to most other markets in the first six months of this year, except for China where there are longer regulatory timelines. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. Today's format will consist of providing you with highlights of our second-quarter results as described in our press release announced earlier today followed by a question-and-answer session. European procedure growth was generally healthy, though varied by country. Fourth quarter 2021 systems revenue increased by 28% to $470million, compared with $367million in the fourth quarter of 2020. We work closely and collaboratively . Of those patients, 43% were in the da Vinci robotic cohort, 35% in the laparoscopic cohort, and 22% in the open cohort. Turning to our innovation and commercialization efforts. Our SEC filings can be found through our website or at the SEC's website. 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. Intuitive advances minimally invasive care by innovating at the point of possibility. Investor's Business Daily . 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. We think there is an opportunity to accelerate learning and to drive increased insight for a surgeon into their own progress. Second-quarter system placements of 328 systems increased 84%, compared with 178 systems for the second quarter of 2020, and increased 10%, compared with 298 systems last quarter. Thanks. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. And I suspect that's most of what we're seeing, at least in the United States in terms of that. We continue to operate in a challenging supply chain environment and have experienced longer lead times and delayed deliveries from our suppliers. Intuitive Surgical Investor Relations. In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. And I'm actually curious more what's going on with service and software at the hospitalwide kind of department of surgery level. The decrease relative to these prior periods reflects geographic mix and volume discounts provided to customers purchasing multiple systems. 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? On the benign side, often the diagnostic pipelines are shorter. Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., net income per diluted share attributable to Intuitive Surgical, Inc., and diluted shares are reported on a GAAP and non-GAAP* basis. Please go ahead. Data Provided by Refinitiv. Jan 2023 - Present3 months. You're developing, trying to increase efficiency, decrease costs, that kind of thing. 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. . Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. So I think those are the key kind of procedure highlights. I think the product ecosystem with XI with a 60-millimeter stapler is in good shape, and we're getting good feedback from surgeons in that regard. The Company defines non-GAAP gross profit as gross profit, excluding intangible asset charges and SBC and long-term incentive plan expenses. Intuitive Surgical's adjusted net . I know last quarter, you kind of brought up the concept of going after thoracic and some additional other areas. Key business metrics for the second quarter were as follows. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. Yes. That said, other teams are out. Fourth quarter 2022 GAAP income from operations also included litigation charges of $21million. Building a great robot is a hard first step. We think there's an opportunity to look at correlations between surgeon performance and outcomes. However, our expense growth rate was modestly lower than our plan, driven by pandemic-related factors. And at this time, I would like to turn the conference over to our host, senior director of finance, investor relations for Intuitive, Mr. Calvin Darling. The Company defines non-GAAP gross profit as gross profit, excluding amortization of intangible assets and SBC and long-term incentive plan expenses. any time, re-enter your e-mail address and click Submit, then adjust your form entries. 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. Listen to Webcast. On our last call, we forecast our 2021 full-year pro forma gross profit margin to be within 70% and 71% of revenue. And I'd just be curious to -- since you all are calling it out repeatedly as an important incremental growth driver, where are we now, in your view, in that, I'm sure, multiyear, long-term adoption process? To choose Intuitive Surgical, Inc. ISRG recently announced preliminary results for fourth-quarter and full-year 2021. your options for e-mail notification, please enter your e-mail address below and click At the "Pitching to Investors Programme" you will have an exclusive 10-minute pitching slot on stage for you to showcase your company to our entire audience and the biggest community of investors. That impact was most pronounced in the U.S. and Europe, varied market to market, complicating year-over-year comparisons. Intuitive Surgical Asensus Surgical . 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. Pro forma operating expenses increased 24% compared with the second quarter of 2020 and increased 5% compared with last quarter. It doesn't seem like the backlog would be exhausted just after one quarter. The number we're watching closely is hospitalization. To make the world smarter, happier, and richer. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. So be curious to hear from you on any procedure trends through the quarter in the U.S. and international. (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 flows from respect for and understanding of patients and care teams, their needs, and their environment. I think they are ecosystem enablers and can result in very high customer satisfaction when done well. These forward-looking statements are necessarily estimates reflecting the best judgment of the our 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. You've got COVID. What was the second part of your question again, Larry? In fact, our commentary is a little bit the opposite that these are being highly utilized. Higherfourthquarter revenue was driven by growth in da Vinci procedure volume and system placements. 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 the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. 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. Just a couple of comments. These system-controlled staplers, vessel sealers, and energy instruments support a range of procedures from bariatrics to colorectal procedures, to thoracic and gynecologic applications. All Rights Reserved. This growth rate compares with 9% last year and 8% last quarter. Moving on to capital placements. Intuitive will hold a teleconference at 1:30 p.m. PST today to discuss the fourth quarter 2021 financial results. Good afternoon, and welcome to Intuitive's second-quarter earnings conference call. 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. The Zacks . Constant currency revenue growth. Utilization of clinical systems in the field, measured by procedures per system, increased approximately 55% compared with last year and increased 11% compared with last quarter. Given the stronger recovery of procedures we have experienced so far, particularly in the U.S., and strength in U.S. general surgery, we are now increasing our forecast and expect full-year 2021 procedure growth of 27% to 30%. 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. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 6%. 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. Most of our offices globally are reopening with this hybrid approach. 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. Or any color you can provide on that? We are building tools and capabilities that allow hospital departments and departments of surgery to manage their program and look across programmatics for efficiency, for learning, for outcomes, and these things interlink. Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. And the capital to support that demand has not run ahead of the procedure demand. . Fourth quarter 2021 revenue was$1.55 billion, an increase of 17%compared with$1.33 billion in thefourth quarter of 2020. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. That means that utilization will go up kind of naturally, that that mix moves toward a higher utilization mix. We did not repurchase any shares in the quarter. I will now turn to our financial outlook for 2021. OK. Well, thank you, and our moderator, that was our last question. The increase in cash in the second quarter primarily reflected cash from operations and stock exercises. The Motley Fool owns shares of and recommends Intuitive Surgical. Richard Wolf GmbH 10.6 . OK. And then just one quick follow-up. Looking forward, we see the following capital revenue dynamics. Growth in our second largest market, China, continued to be strong with multiple specialties contributing. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. I'll speak to my impression, but I caveat it, it's one person's impression. any time, re-enter your e-mail address and click Submit, then adjust your form entries. And so we have some catch-up to do in terms of infrastructure and support necessary to support the overall business. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. 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?