Good afternoon. Leasing and alternative financing arrangements enable customer access to capital. Full Time Faculty & Clinical Coordinator, Surgical Technologist Program Ask us about our $5,000 Sign on Bonus Rasmussen University Rasmussen University is seeking an experienced Surgical Technologist passionate about taking their own experience and translating that into helping students succeed in meeting their educational and professional goals. But as you heard in our prepared comments, a significant increase in hospitalization is not reflected in the guidance range. Investors are cautioned not to place undue reliance on such forward-looking statements. With respect to operating expenses, on our last call, we forecast to grow full-year pro forma 2021 operating expenses between 18% and 22% above 2020 levels. With regard to income tax, we expect the range of our second-half 2021 pro forma tax rate to be between 21% and 22% of pre-tax income, slightly higher than the range we provided on the last call, reflecting a higher mix of U.S. income. Intuitive Surgical Inc. (ISRG) Q4 2021 Earnings Call Transcript Submit. Marshall L. Mohr Executive Vice President and Chief Financial Officer. (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. Hi, Gary. 06/14/22 - 1:20 PM PDT. For the first three quarters of 2021, it reported $1.4 billion in operating income on $4.2 billion in revenues. any time, re-enter your e-mail address and click Submit, then adjust your form entries. 06/14/22 - 1:20 PM PDT. Listen to Webcast. Intuitive Surgical Inc. (ISRG) Q1 2021 Earnings Call Transcript Our second-quarter 2021 performance was encouraging, with use of our systems for procedures growing beyond pre-pandemic levels and healthy capital placements. . The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. Our rollout of Ion will continue to be measured while we optimize training pathways in our supply chain. [Operator Instructions] As a reminder, today's call is being recorded. Recovery in the U.K. was healthy in the quarter as NHS increased access to surgeries broadly. Last page last E-mail Alerts. So I wouldn't start building lots of leverage into your models. your options for e-mail notification, please enter your e-mail address below and click Fourth quarter 2021 systems revenue increased by 28% to $470million, compared with $367million in the fourth quarter of 2020. INTUITIVE at 2022 Wells Fargo Healthcare Conference. I hear your question is asking us how much is left, how much of the catch-up is left. All Rights Reserved. User Experience for digital health innovations:<br>I work with startups and corporations and design user-centered products, services, and digital business models. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body. Yes. Lastly, we continue to digitally enhance our ecosystem. 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. 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. I'll caution that what the next couple of quarters or next four quarters looks like in terms of hospital access to capital and their decision-making, capital is always lumpy. Copyright 2023 Intuitive Surgical. Listen to Webcast. Amy C. - Director of Clinical and Commercial Operations - Bertis Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, Q3 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 2022 Wells Fargo Healthcare Conference, Q2 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference, INTUITIVE at BofA Securities 2022 Healthcare Conference, Q1 2022 INTUITIVE Earnings Conference Call. Now, I'd turn the conference over to our host, Brian King, Head of Investor Relations for Intuitive Surgical. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. We expanded our installed base of da Vinci Systems over the last year by 10% to approximately 6,335 systems. Good afternoon, and welcome to Intuitive's second-quarter earnings conference call. Intuitive has managed multiple ways of working for many years. Fourth quarter 2021 GAAP income from operations increased to $450million, compared with $416million in the fourth quarter of 2020. 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. An investor who was able to pick up $1,000 worth of Intuitive Surgical shares at its IPO price and held on has seen that investment grow to a whopping . 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. 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. INTUITIVE SURGICAL, INC.-13.55%: 80 376: BOSTON SCIENTIFIC CORPORATION: 1.19%: 67 033: SIEMENS . Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. It's hard to have a precise measure on it. We've seen that in some OUS markets. Calvin Darling -- Senior Director of Finance, Investor Relations. I think the noise levels will go up. 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. EMCOR Group, Inc. (NYSE:EME) Q4 2022 Earnings Call Transcript The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 6%. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Senior Director-Finance & Investor Relations: Julian N. Nikolchev: Senior VP-Corporate Development & Strategy: The Company presents constant currency revenue to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency fluctuations. The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. Marshall will provide a review of our financial results. Product and research reports and data presentation to medical specialists, sales force, new channels, investors. Cost basis and return based on previous market day close. Thanks. Moving on to gross margin and operating expenses. any time, re-enter your e-mail address and click Submit, then adjust your form entries. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company undertakes no obligation to publicly update or release any revisions to these forward-looking statements, except as required by law. Q2 2022 INTUITIVE Earnings Conference Call. Higherfourthquarter revenue was driven by growth in da Vinci procedure volume and system placements. The Company calculates constant currency revenue by translating current period revenue using prior period exchange rates. Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). For more information, please visit the Companys website at www.intuitive.com. How are you thinking about competition? Data Provided by Refinitiv. Intuitive | ISRG Investor events & presentations - Intuitive Surgical . Women Techmakers Ambassador is responsible for driving diversity and inclusion through organizing local events within the tech community. During 2021, COVID-19 resurgences continued to impact da Vinci procedure volumes. Those things are ongoing now. Intuitive Surgical, Inc. engages in the development, manufacture, and marketing of da Vinci Surgical Systems, and related instruments and accessories for . 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, INC.UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME(IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED TWELVE MONTHS ENDED CONDENSED CONSOLIDATED STATEMENTS OF INCOME(IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(IN MILLIONS), INTUITIVE SURGICAL, INC.UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES(IN MILLIONS, EXCEPT PER SHARE DATA), Contact: Investor Relations(408) 523-2161. Juliet Chou - Governance Coordinator - Engineers Canada - LinkedIn The fourth quarter 2021 system shipments included 143systems shipped under operating lease and usage-based arrangements, compared with 120 systems in thefourth quarter of 2020. Tuesday, October 18, 2022 4:30 PM EDT . Intuitive Surgical Stock Nears $1,000 As The Covid Recovery Continues And we expect those to come back as COVID goes away and the restrictions on travel and the restrictions on other activities go away. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. 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: constant currency revenue, 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. Obviously, you made some comments about variance and not factoring in kind of an increase. I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. Or is it too early, and you're just saying that might happen in the future? This growth rate compares with 9% last year and 8% last quarter. The compound annual revenue growth rate between the second quarters of 2019 and 2021 was 15%. Jan 2023 - Present3 months. 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. How close we are to maybe seeing something that you can monetize? Intuitive | Robotic Surgery Conference | 360 Program - Intuitive Surgical Second, disciplined execution of our launches, including our advanced instruments, SP, Ion, and digital efforts. Marshall, the operating margin coming in at the 43%, I'm just wondering how much we can extrapolate here? And then given that it's cancer procedure, in some cases, it's a little bit longer follow-up. The Company believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding items such as intangible asset charges, share-based compensation (SBC) and long-term incentive plan expenses, and other special items. Intuitive Surgical has been witnessing an upward estimate revision trend for 2021. INTUITIVE at 2022 Wells Fargo Healthcare Conference. Visit www.intuitive.com/en-us/products-and-services/ion. As part of our mission, we believe that minimally invasive care is life-enhancing care. It links into some of the other things you're talking about. 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. Larry Biegelsen -- Wells Fargo Securities -- Analyst. Our pro forma effective tax rate for the second quarter was approximately 25%. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. 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. Fourth quarter 2022 instruments and accessories revenue increased by 12% to $941 million, compared with $843 million in the fourth quarter of 2021. Ladies and . Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. We work closely and collaboratively . So we're excited about that because it gives them fast and easy access. Surgical Technologist - Full Time Faculty & Clinical Coordinator 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. Of those patients, 43% were in the da Vinci robotic cohort, 35% in the laparoscopic cohort, and 22% in the open cohort. Or is this simply and primarily just something about the pandemic accelerating the use of da Vinci and robotics surgery broadly? INTUITIVE SURGICAL, INC.-14.33%: 79 654: BOSTON . We are in the execution and launch phase of four efforts. 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. The Companys calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. 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. The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. Next, we're going to the line of Rick Wise with Stifel. 3 Reasons to Buy Intuitive Surgical, and 1 Reason to Sell The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. The increase in cash in the second quarter primarily reflected cash from operations and stock exercises. Now turning to the clinical side of our business. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. In the United States, procedure growth was strong in the quarter, driven by growth in bariatric surgery, hernia repair, and cholecystectomy. In the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. As a result, we expect lower trade-in transactions over time. We continue to operate in a challenging supply chain environment and have experienced longer lead times and delayed deliveries from our suppliers. Phone: 408-523-2161 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. Annualized U.S. procedure growth rates are returning to historical levels for procedures with longer diagnostic pipelines as patients have started returning to screening and diagnostic testing. My name is Kari Krogstad. To choose We also find that our economic offerings with da Vinci X and EUP, we have choices that we ourselves can offer our customers. Jamie, anything? Please go ahead, sir. For full-year 2021, Intuitive Surgical revenues are estimated to be north of $5.7 billion, reflecting a 30% y-o-y growth, while the growth rate is expected to slow to low teens next year . It's the impact on hospitalizations. I mean, how do you know there was catch-up from the backlog in Q2? We are now slightly increasing our forecast and expect full-year gross profit margin to be between 70.5% and 71.5% of revenue. *Stock Advisor returns as of June 7, 2021. 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. What To Expect From Intuitive Surgical's Q1? - Forbes Fourth quarter 2022 constant currency revenue increased 10% compared to the fourth quarter of 2021. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.neuropace.com, on the Investors page in the News & Events section. The second quarter of 2020 included $59 million of service credits issued in conjunction with our Customer Relief Program, higher period costs associated with lower production, and higher excess and obsolete inventory charges. That's great. Intuitive Surgical's Q1 2021 adjusted earnings per share is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. I think that's anecdotal. These system-controlled staplers, vessel sealers, and energy instruments support a range of procedures from bariatrics to colorectal procedures, to thoracic and gynecologic applications. They're giving their PowerPoints about what they think is going to happen next and some other things. But I don't have scientific evidence. We placed an additional 20 Ion systems in the quarter, bringing the installed base to 70. The painful part is the investment troughs are deep in the early and middle years of those product cycles. Growth in the U.K. was strong, with a slower recovery in France, Italy, and Germany. Ladies and gentlemen, thank you for standing by and welcome to the Intuitive Q4 2021 Earnings Release Call. And then has the elasticity relative to the extended use program and the pricing adjustments played out relative to your expectations? 20, 2021Corporate Participants: Philip Kim Head of Investor Relations. Richard Wolf GmbH 10.6 . The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. . OpenText Collaborates with Bayer to Simplify Digital Operations These awards were modified in the fourth quarter of 2021 and are now valued based on certain key performance metrics. From a U.S. perspective, I think it's early, and I think we're simply acknowledging the risk. 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. Turning to our single-port system. Fourth quarter 2021 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $27 million, or $0.07 per share, compared with $21 million, or $0.06 per share, in the fourth quarter of 2020. All Rights Reserved. I've had the privilege of seeing Intuitive develop the use of robotics in multiple clinical indications over the years. Icey Jiang - Google Women Techmakers Scholar - LinkedIn You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Mehr Brsen-Nachrichten . So first question for me is just trying to dissect your procedure results a little bit more because some really interesting comments, that you saw strength in benign cases, some catch-up cases. OUS markets grew 51% year over year or 19% on a two-year compound annual growth rate basis. These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. There appears to be some. 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. System placements in the quarter reflected procedure growth and hospitals upgrading to -- in order to access or standardize on fourth-generation capabilities. Submit. . European procedure growth was generally healthy, though varied by country. 10/08/22 - 11:00 AM EDT. Second-quarter 2021 procedures increased approximately 68% compared with the second quarter of 2020 and increased approximately 13% compared with last quarter. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved north by 8.4% to $14.72. The rise in earnings was driven by higher . Intuitive Surgical (ISRG) Posts Robust Preliminary Q4 Results And our posture to that has been -- it may delay some sales as we may have some competitive conversations and tenders, and we'll lose some. 2021 : 2022 : 2021 : Revenue $ 12,789 $ 10,997 $ 45,520 $ 45,183 : Cost of goods sold : 3,986 . And we've received feedback -- positive feedback from surgeons who have indicated that system access has been a key driver for increased procedures. Travel and associated costs in support of our field have also not recovered to pre-pandemic levels. So right now, we talked in the script about adding our work or IDE around colorectal, we're excited about that. The decrease relative to these prior periods reflects geographic mix and volume discounts provided to customers purchasing multiple systems. Second-quarter OUS procedure volume grew approximately 51%, compared with a 7% decline for the second quarter of 2020 and 23% growth last quarter. The higherfourth quarter revenue was driven by growth in da Vinci procedure volume, partially offset by a decline in system placements and foreign currency impacts. Intuitive Announces Fourth Quarter Earnings | Intuitive Surgical Jamie will take you through procedure dynamics in more detail later in the call. Fourth quarter 2022 GAAP income from operations also included litigation charges of $21million. Sure. That will play out over the next several quarters as we accrue patients. We could see one large competitor approved in the second half of this year. Intuitive Surgical Dives To 8-Month Low; Why It Could Still Outperform 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. 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. 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. Clinical trial sites completed enrollment for our PRECIsE clinical trial. Key business metrics for the second quarter were as follows. The Motley Fool owns shares of and recommends Intuitive Surgical. And we're pleased. Doctors talking to us about further expansion of utilization. Thanks for taking the question. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Companys business. Our focus is in clinical capability and productivity of the installed base we have. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. Investor's Business Daily . So I think those are the key kind of procedure highlights. Intuitive Announces First Quarter Earnings | Intuitive Surgical 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. Intangible asset charges consist of non-cash charges, such as the amortization of intangible assets as well as in-process R&D charges. The stock movement pushed Intuitive . You may automatically receive Intuitive Surgical financial information by e-mail. But at this point, it's just too difficult to estimate and, therefore, kind of give you any additional color on. Fourth quarter 2022 GAAP income from operations decreased to $373 million, compared with $450 million in the fourth quarter of 2021. 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 Q2, U.S. procedures grew 77% year over year, which equates to 16% on a two-year compound annual growth rate basis. First quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $413 million, or $1.13 per diluted share, compared with $427 million, or $1.17 per diluted share, in the first quarter of 2021. The webcast replay of the call will be made available on our website at www.intuitive.com within 24 hours after the end of the live teleconference and will be accessible for at least 30 days. 10 stocks we like better thanIntuitive SurgicalWhen our award-winning analyst team hasa stock tip, it can pay to listen. 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. The stock split will take place after market close on October 5th, 2021. Presentation: Operator. 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.