10-KPeriod: FY2021

INTUITIVE SURGICAL INC Annual Report, Year Ended Dec 31, 2021

Filed February 3, 2022For Securities:ISRG

Summary

Intuitive Surgical Inc. (ISRG) filed its 2021 10-K on February 3, 2022, reporting on its business operations and financial performance. The company, a leader in robotic-assisted minimally invasive surgery, saw a significant rebound in its business in 2021 following the disruptions of the COVID-19 pandemic in 2020. Total revenue grew 31% year-over-year, driven by strong performance across all segments, including systems, instruments, and accessories, and services. The company's core business continues to be driven by the adoption and utilization of its da Vinci Surgical Systems, which saw a 28% increase in procedures performed globally in 2021. This procedural growth fueled increased demand for instruments and accessories, as well as service revenue. Management highlighted strong system demand, with a 44% increase in da Vinci Surgical System placements compared to the prior year, indicating a recovery and expansion of its installed base. The company ended the year with a robust cash position and continues to invest in research and development to expand its product offerings and address new clinical applications.

Financial Highlights

47 data points
Beta

Revenue

$5.71B

69.3% Gross Margin

Net Income

$1.70B

29.9% Net Margin

EPS (Diluted)

$4.66

Total Assets

$13.55B

Cash & Equivalents

$1.31B

Free Cash Flow

$2.09B

Financial Statements
Beta
Revenue$5.71B
Cost of Revenue$1.75B
Gross Profit$3.96B
R&D Expenses$671.00M
SG&A Expenses$1.47B
Operating Expenses$2.14B
Operating Income$1.82B
Net Income$1.70B
EPS (Basic)$4.79
EPS (Diluted)$4.66
Shares Outstanding (Basic)356.10M
Shares Outstanding (Diluted)365.80M

Key Highlights

  • 1Total revenue increased 31% to $5.7 billion in 2021, recovering from a pandemic-impacted 2020.
  • 2Approximately 1.59 million da Vinci procedures were performed globally in 2021, a 28% increase year-over-year.
  • 3Systems revenue grew 44% to $1.69 billion in 2021, with a 44% increase in system placements to 1,347 units.
  • 4Instruments and accessories revenue increased 26% to $3.10 billion, driven by higher procedure volumes.
  • 5Service revenue grew 27% to $916 million, supported by an expanding installed base.
  • 6The company ended 2021 with a strong cash, cash equivalents, and investments balance of $8.62 billion.
  • 7Ongoing investments in R&D continue to support new product development, including advancements in the Ion endoluminal system and next-generation robotics.

Frequently Asked Questions

In 2021, Intuitive Surgical experienced significant growth, with total revenue increasing by 31% to $5.7 billion, a strong recovery from the 3% decrease seen in 2020. This growth was driven by a rebound in procedure volumes, increased system placements, and higher sales of instruments, accessories, and services.

While COVID-19 continued to cause regional impacts and procedure deferrals in 2021, the company saw a strong recovery in procedure volumes and system demand. Management notes that the extent of future impacts remains uncertain and will depend on vaccination rates, hospital resource availability, and the emergence of new variants. However, the company remains focused on supporting its customers and ensuring supply continuity.

Revenue growth is primarily driven by an increase in the number of da Vinci procedures performed globally, which fuels demand for instruments and accessories. The expansion of the da Vinci system installed base also drives recurring revenue through service contracts. The company also continues to invest in and commercialize new systems and technologies, such as the Ion endoluminal system.

Intuitive Surgical's strategy focuses on advancing minimally invasive care through its comprehensive ecosystem of robotic systems, instruments, learning programs, and digital solutions. This includes continued investment in research and development to introduce innovative products, expanding the installed base of da Vinci systems, increasing procedure adoption across various surgical specialties, and enhancing its digital capabilities to provide greater insights and support to customers.