01—Abstract
Summary
Summary of the 10-K filed February 3, 2022. Cited figures are marked; the original filing is the authoritative source.
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%a 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%b 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.
02—Key points
Key Highlights
- Total revenue increased 31% to $5.7 billion in 2021, recovering from a pandemic-impacted 2020.
- Approximately 1.59 million da Vinci procedures were performed globally in 2021, a 28% increase year-over-year.
- Systems revenue grew 44% to $1.69 billion in 2021, with a 44% increase in system placements to 1,347 units.
- Instruments and accessories revenue increased 26% to $3.10 billion, driven by higher procedure volumes.
- Service revenue grew 27% to $916 million, supported by an expanding installed base.
- The company ended 2021 with a strong cash, cash equivalents, and investments balance of $8.62 billion.
- Ongoing investments in R&D continue to support new product development, including advancements in the Ion endoluminal system and next-generation robotics.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Intuitive Surgical kept $0.30.
- Revenue$5.71B100.0%
- Cost of revenue−$1.75B30.7%
- Gross profit$3.96B69.3%
- Operating costs−$2.14B37.4%
- Operating income$1.82B31.9%
- Interest, other & tax−$116.4M2.0%
- Net income$1.70B29.9%
Where FY2021 revenue went
$5.71B- Cost of revenue: $1.75B, 31% of revenue
- Net income: $1.70B, 30% of revenue
- SG&A: $1.47B, 26% of revenue
- R&D: $671.0M, 12% of revenue
- Interest, other & tax: $116.4M, 2.0% of revenue
Kept 30% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 3, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $5.71B$4.36B | +31.0% |
| Cost of Revenue | $1.75B$1.50B | +17.0% |
| Gross Profit | $3.96B$2.86B | +38.4% |
| R&D Expenses | $671.00M$595.10M | +12.8% |
| SG&A Expenses | $1.47B$1.22B | +20.6% |
| Operating Expenses | $2.14B$1.81B | +18.0% |
| Operating Income | $1.82B$1.05B | +73.5% |
| Net Income | $1.70B$1.06B | +60.7% |
| EPS (Basic) | $4.79$3.02 | +58.6% |
| EPS (Diluted) | $4.66$2.94 | +58.5% |
| Shares Outstanding (Basic) | 356.10M351.10M | +1.4% |
| Shares Outstanding (Diluted) | 365.80M361.00M | +1.3% |
05—Questions
Frequently Asked Questions
How did Intuitive Surgical's financial performance in 2021 compare to 2020?
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.
What is the company's outlook regarding COVID-19's impact on its business?
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.
What are the key drivers of revenue growth for Intuitive Surgical?
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.
What is the company's strategy for future growth?
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.
06—Continue