intuitive surgical investor presentation 2021
I'll speak to my impression, but I caveat it, it's one person's impression. Instrument and accessory revenue per procedure of $1,940 increased, compared with $1,900 per procedure for the second quarter of last year, and decreased, compared with $1,950 per procedure in the first quarter. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. Statements using words such as estimates, projects, believes, anticipates, plans, expects, intends, may, will, could, should, would, targeted, and similar words and expressions are intended to identify forward-looking statements. Please note that this conference call will be available for audio replay on our website at intuitive.com on the latest Events section under our Investor Relations page. The meta-analysis combined 18 studies across different countries containing over 11,000 patients, of which just over 5,000 received da Vinci robotic-assisted thoracic surgery and just over 6,000 received VATs. SP procedures grew 133% year over year, with much of that growth coming from the United States. From a market perspective, about 60%-ish or so are sleeves, about 15% are revisions. Additionally, constant currency revenue growth is reported on a non-GAAP* basis. It's a short period, but we believe that there is elasticity, and we've seen elasticity in markets where reimbursements are very low. We have continued the launch of our My Intuitive app, including launching to first users in Europe. (USD millions), considering 2021 as the base year . Marshall L. Mohr Executive Vice President and Chief Financial Officer. Intuitive develops, manufactures and markets the da Vinci surgical system. The next page will display a menu of options. It affirms that "RAS devices have been cleared for use in certain types of surgical procedures commonly performed in patients with cancer, such as hysterectomy, prostatectomy and colectomy. But once you develop a really capable ecosystem, then it has a lot of platform use, and that investment can be recovered over time. We know that new system placements are closely tied to anticipated procedure volumes and system utilization in mature markets. Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. Listen to Webcast. Gosh, that's awfully encouraging sounding. You may automatically receive Intuitive Surgical financial information by e-mail. 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. I will describe the highlights of our performance on a non-GAAP or pro forma basis. But can you maybe just talk through the thought process there and how you're thinking about any potential risks in the back half of the year from the variant cases? 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. . The Company ended the fourth quarter of 2021 with $8.6 billion in cash, cash equivalents, and investments, an increase of $400million during the quarter, primarily driven by cash generated from operations. Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). Larry Biegelsen -- Wells Fargo Securities -- Analyst. The Company grew its da Vinci Surgical System installed base to 6,730 systems as of, Fourth quarter 2021 GAAP net income attributable to Intuitive was $381million, or, Fourth quarter 2021 non-GAAP* net income attributable to Intuitive was. Or is this simply and primarily just something about the pandemic accelerating the use of da Vinci and robotics surgery broadly? any time, re-enter your e-mail address and click Submit, then adjust your form entries. Intuitive Surgical Inc (NASDAQ: ISRG) Q2 2021 earnings call dated Jul. For more information, please visit the Companys website at www.intuitive.com. The trade-in cycle has been a tailwind to system placements. Our rollout of Ion will continue to be measured while we optimize training pathways in our supply chain. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. The Company ended the first quarter of 2022 with $8 .40 billion in cash, cash equivalents, and investments, a decrease of $218 . On the capital side, new system placements continue to be healthy, with the United States, China, Germany, France, and Japan, notable in the quarter. Intuitive Announces Preliminary Fourth Quarter and Full Year 2021 Results. Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. 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. It links into some of the other things you're talking about. Next, we'll go to Bob Hopkins with Bank of America. Turning to our single-port system. 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. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. We are refining our estimate and expect our full-year pro forma operating expense growth to be between 17% and 21%. The pandemic is not behind us, and additional infection growth may again strain hospital resources and impact our results in the future. One on procedures, one on competition. 2021 Intuitive Sustainability Report 7.8 MB. I think what we're seeing is that the longer diagnostic pipelines have had this kind of double effect from the pandemic. 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. Is Intuitive Surgical Stock Still Worth Buying Hand Over Fist in 2023? You have to do it. I'll now turn the time over to Marshall to take you through our financial performance in greater detail. 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. I'm here together with my CFO, Thomas Jakobsen.. | 2 Mrz 2023 . Last quarter, we forecast 2021 procedure growth of 22% to 26%. Supporting investors, corporations, start-ups, and academic research labs. Yes, Tycho. It also reflects lower diagnostic pipelines and perhaps some reluctance for patients to visit hospitals. I think that would be a mistake. In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. At this time, all participants are in listen-only mode. You may automatically receive Intuitive Surgical financial information by e-mail. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. 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. 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. This MMR report includes investor recommendations based on a thorough examination of the Thoracic Surgery Market's contemporary competitive scenario. (6) Diluted net income per share includes the effect of the following items: Gains (losses) on strategic investments, net of tax, Less: net income attributable to noncontrolling interest in joint venture. I think all of us know, and we, as consumers know that customers like choice, perfectly fair. Second-quarter OUS procedure volume grew approximately 51%, compared with a 7% decline for the second quarter of 2020 and 23% growth last quarter. Obviously, you made some comments about variance and not factoring in kind of an increase. What we've seen, though, is that what happens in the PowerPoints and what happens a year later is different. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent Form 10-K filed on February 10, 2021; and Form 10-Q filed on April 21, 2021. Jamie, anything? Procedure growth in the U.S. was led by bariatric cholecystectomy and hernia procedures. What was the second part of your question again, Larry? Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. And so we'll see over time, we'll be able to measure a little bit better over time, and we'll monitor it. 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. Just so really speaking backward-looking, so far, so good. So here's kind of where we stand with the backlog. Leasing represented 33% of current quarter placements, compared with 29% last year and 43% last quarter. Readers are cautioned not to place undue reliance on these forward-looking statements, 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 December 31, 2020, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, as updated by the Companys other filings with the Securities and Exchange Commission. Third, driving depth and excellence in regional performance, particularly in Europe and Asia. So energy and stapling and other things, we think that is possible. We anticipate iterating our approach as we learn and the year progresses. So I think all of you on the call, you should expect increased alternatives for the customer base. Or is it too early, and you're just saying that might happen in the future? 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. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. 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. So be curious to hear from you on any procedure trends through the quarter in the U.S. and international. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. These forward-looking statements should, therefore, be considered in light of various important factors, including, but not limited to, the following: the risk that the COVID-19 pandemic could lead to further material delays and cancellations of, or reduced demand for, procedures; curtailed or delayed capital spending by hospitals; disruption to our supply chain, including increased difficulties in obtaining a sufficient amount of materials in the semiconductor and other markets; closures of our facilities; delays in surgeon training; delays in gathering clinical evidence; delays in obtaining new product approvals or clearances from the U.S. Food and Drug Administration (FDA) due to the effects of the COVID-19 pandemic; the evaluation of the risks of robotic-assisted surgery in the presence of infectious diseases; diversion of management and other resources to respond to the COVID-19 outbreaks; the impact of global and regional economic and credit market conditions on healthcare spending; the risk that the COVID-19 pandemic continues to disrupt local economies and causes economies in our key markets to enter prolonged recessions; the risk of our inability to comply with complex FDA and other regulations, which may result in significant enforcement actions; 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 our joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; our completion of and ability to successfully integrate acquisitions, including Orpheus Medical; procedures counts; regulatory approvals, clearances, and restrictions or any dispute that may occur with any regulatory body; guidelines and recommendations in the healthcare and patient communities; intellectual property positions and litigation; competition in the medical device industry and in the specific markets in which we operate; risks associated with our operations outside of the U.S.; unanticipated manufacturing disruptions or the inability to meet demand for products; our reliance on sole and single source suppliers; the results of legal proceedings to which we are or may become a party; product liability and other litigation claims; adverse publicity regarding us and the safety of our products and adequacy of training; our ability to expand into foreign markets; the impact of changes to tax legislation, guidance, and interpretations; changes in tariffs, trade barriers, and regulatory requirements; and other risk factors. So from a core demand point of view or disease state, that's clearly out there and accumulating, and it has to get processed through. Management addresses these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income attributable to Intuitive Surgical, Inc. and non-GAAP EPS and evaluating non-GAAP net income attributable to Intuitive Surgical, Inc. and non-GAAP EPS together with net income attributable to Intuitive Surgical, Inc. and net income per share attributable to Intuitive Surgical, Inc. calculated in accordance with GAAP. 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. It flows from respect for and understanding of patients and care teams, their needs, and their environment. That low end also reflects some impact of a resurgence in the U.S. The Board of Directors of Intuitive Surgical approved a 3:1 stock split on August 5th, 2021. How are you thinking about competition? This article is a transcript of this conference call produced for The Motley Fool. You may automatically receive Intuitive Surgical financial information by e-mail. Compound annual growth between the second quarters of 2019 and 2021 was 16.5%. GAAP net income was $517 million or $4.25 per share for the second quarter of 2021, compared with GAAP net income of $68 million or $0.57 per share for the second quarter of 2020 and GAAP net income of $426 million or $3.51 per share for the last quarter. Thanks. Intuitive Surgical has been witnessing an upward estimate revision trend for 2021. I know last quarter, you kind of brought up the concept of going after thoracic and some additional other areas. So good morning, everyone, and welcome to Medistim's Fourth Quarter Presentation for 2022. Affiliated with the world's largest international neurotechnology community, NeurotechX, with 18,000+ members . 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. See www.intuitive.com/trademarks. Now turning to the clinical side of our business. I will now summarize our GAAP results. (2) Selling, general and administrative 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, Gains on strategic investments, net of tax, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive . 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. Calvin Darling -- Senior Director of Finance, Investor Relations. Jan 2023 - Present3 months. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results.