InMode Reports Record Third Quarter 2021 Financial Results: Quarterly Revenue of $94.2M, 58% Year-Over-Year Growth; GAAP Net Income of $44.7M, 87% increase compared to Q3 2020

YOKNEAM, Israel, Oct. 26, 2021 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the third quarter ended September 30, 2021.

Third Quarter 2021 Highlights:

• Record quarterly revenues of $94.2 million, an increase of 58% compared to the third quarter of 2020: InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 73% of quarterly revenues, while 18% came from InMode's hands-free platforms and 9% from InMode's traditional laser and non-invasive RF platforms
• Record GAAP net income of $44.7 million, compared to $23.9 million in the third quarter of 2020; *non-GAAP net income of $47.9 million, compared to $26.6 million in the third quarter of 2020
• Record GAAP diluted earnings per share⁽¹⁾ of $0.52, compared to $0.28 in the third quarter of 2020; *non-GAAP diluted earnings per share⁽¹⁾ of $0.55, compared to $0.31 in the third quarter of 2020
• Total cash position of $387.4 million as of September 30, 2021, including cash and cash equivalents, marketable securities, and short-term bank deposits

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.

⁽¹⁾ The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

Management Comments

"We are very pleased to announce another quarter of record results, solid growth and success with our latest product launches," said Moshe Mizrahy, CEO of InMode. "InMode is continuing its global expansion and is examining establishing a new subsidiary in another major European country. During what is normally a slower summer quarter, sales of hands-free devices very nearly matched the prior quarter. And our advancement into the women's health space was off to a promising start with its inaugural roll-out in the U.S."

"Early in the third quarter, we delivered two new platforms to the market, EmpowerRF and EvolveX. As we have done so far, we will continue to deliver two new platforms every year to maintain our position in the aesthetic market and expand our business by delivering innovative technologies in new medical applications," commented Dr. Michael Kreindel, CTO and co-founder of InMode. 

"Following the launch of EmpowerRF in the U.S. focused on early adopters, urogynecologists, we are encouraged by the positive feedback that we received so far, and we plan to progress gradually as more and more gynecologists will adopt our unique technology," said Dr. Spero Theodorou, InMode's Chief Medical Officer.

"This was another record revenue quarter in the U.S, supported by our renowned education initiatives and continued expansion. Our workshop attendance reached an all-time high, a solid indication of market demand, physicians' interest, and the trust in our technologies," stated Shakil Lakhani, President of InMode North America.

Third Quarter 2021 Financial Results

Total revenues for the third quarter of 2021 reached $94.2 million, an increase of 58% compared to the third quarter of 2020. "The increase in revenues was driven by the continued success of our core minimally invasive technology, as well as the gained traction in international markets, with international revenues growing 68% year over year. Patients seeking minimally invasive treatments at unprecedented levels allowed us to maintain the number of disposables sold in comparison to Q2 of 2021, despite seasonal fluctuations traditionally associated with the third quarter. Revenues outside the U.S. represented 34%, with Asia, Europe and Latin America being major contributors to the Company's growth," commented Yair Malca, InMode's Chief Financial Officer.

GAAP gross margin for the third quarter of 2021 was 85% compared to a gross margin of 84% in the third quarter of 2020. *Non-GAAP gross margin for the third quarter of 2021 was 86% and 85% for the third quarter of 2020.

GAAP operating margin for the third quarter of 2021 was 48%, compared to 39% in the third quarter of 2020. *Non-GAAP operating margin for the third quarter of 2021 was 51%, compared to 43% in the third quarter of 2020. This increase is primarily attributable to the company's accelerated growth.

InMode reported GAAP net income attributable to InMode Ltd. of $44.7 million, or $0.52 per diluted share⁽¹⁾, in the third quarter of 2021, compared to $23.9 million, or $0.28 per diluted share⁽¹⁾, in the third quarter of 2020. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd of $47.9 million, or $0.55 per diluted share⁽¹⁾, in the third quarter of 2021, compared to $26.6 million, or $0.31 per diluted share⁽¹⁾, in the third quarter of 2020.

2021 Financial Outlook

Management provided an outlook for the full year of 2021, the period ending December 31, 2021. Based on current estimates, management expects:

• Revenues between $343 million and $347 million
• *Non-GAAP gross margin between 84% and 86%
• *Non-GAAP income from operations between $165 million and $167 million
• *Non-GAAP earnings per diluted share⁽¹⁾ between $1.91 and $1.93

This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.

⁽¹⁾ The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release includes certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes that they provide greater transparency to investors of management's view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measures may not be comparable to other similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, co-founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, October 26, 2021, at 8:30 a.m. Eastern Time to discuss the third quarter 2021 financial results.

The Company encourages participants to pre-register for the conference call using the following link:  https://dpregister.com/sreg/10157922/ea04627326   
Callers will receive a unique dial-in upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers that opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S. Toll-Free Dial-in Number: 1-833-316-0562
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5736

At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from October 26, 2021, at 12 p.m. Eastern Time to November 9, 2021, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers: 

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529
Replay Dial-in Canada TOLL-FREE: 855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 10157922
To access the replay using an international dial-in number, please select the link below: https://services.choruscall.com/ccforms/replay.html

A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.

About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2021 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategy plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2021, risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

⁽¹⁾ The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

⁽¹⁾ The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

⁽¹⁾ The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

SOURCE InMode Ltd.