01—Abstract
Summary
Summary of the 10-K filed January 31, 2025. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical, Inc. (ISRG) filed its annual report for the period ending December 30, 2024, highlighting robust revenue growth and continued expansion of its da Vinci surgical system installed base.
Total revenue increased by 17% to $8.4 billiona, driven by a strong performance in instruments and accessories revenue (up 19%) and systems revenue (up 17%). The company also saw significant growth in its Ion endoluminal system procedures (up 78%). The da Vinci system installed base grew 15% to 9,902 units globally, with 1,526 new systems placed during the year.
This growth reflects increasing adoption across key surgical specialties, particularly in general surgery, gynecology, and urology, both domestically and internationally. The company is also investing in new product development, including the next-generation da Vinci 5 system and the E-200 generator, and expanding its manufacturing capabilities. Despite strong operational performance, the company faces ongoing risks including intense competition, potential disruptions to its supply chain, regulatory complexities, and macroeconomic headwinds such as inflation and interest rate volatility.
The company's significant international operations also expose it to currency fluctuations and varied regulatory environments. Management remains focused on innovation, expanding access to minimally invasive care, and optimizing its business strategy to navigate these challenges and capitalize on future growth opportunities.
02—Key points
Key Highlights
- Total revenue surged by 17% to $8.4 billion in 2024, driven by strong product and service revenue growth.
- Instruments and accessories revenue saw a significant 19% increase, indicating robust utilization of installed systems.
- The da Vinci surgical system installed base expanded by 15% to 9,902 units, with 1,526 new systems placed globally.
- Da Vinci procedure volume increased by 17% to approximately 2.68 million globally, with strong growth in U.S. general surgery and OUS urology and general surgery.
- The Ion endoluminal system demonstrated substantial growth with procedures up 78% to 95,500 and the installed base increasing by 51% to 805 units.
- Gross profit margin improved to 67.5% from 66.4% in the prior year, demonstrating improved operational leverage.
- Operating income saw a significant increase of 33% to $2.35 billion, reflecting revenue growth and improved cost management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Intuitive Surgical kept $0.28.
- Revenue$8.35B100.0%
- Cost of revenue−$2.72B32.5%
- Gross profit$5.63B67.5%
- Operating costs−$3.29B39.3%
- Operating income$2.35B28.1%
- Interest, other & tax−$26.3M0.3%
- Net income$2.32B27.8%
Where FY2024 revenue went
$8.35B- Cost of revenue: $2.72B, 33% of revenue
- Net income: $2.32B, 28% of revenue
- SG&A: $2.14B, 26% of revenue
- R&D: $1.15B, 14% of revenue
Kept 28% as net incomeR&D $1.15B · 14%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed January 31, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $8.35B$7.12B | +17.2% |
| Cost of Revenue | $2.72B$2.39B | +13.5% |
| Gross Profit | $5.63B$4.73B | +19.1% |
| R&D Expenses | $1.15B$998.80M | +14.7% |
| SG&A Expenses | $2.14B$1.96B | +9.0% |
| Operating Expenses | $3.29B$2.96B | +10.9% |
| Operating Income | $2.35B$1.77B | +32.9% |
| Net Income | $2.32B$1.80B | +29.2% |
| EPS (Basic) | $6.54$5.12 | +27.7% |
| EPS (Diluted) | $6.42$5.03 | +27.6% |
| Shares Outstanding (Basic) | 355.20M351.20M | +1.1% |
| Shares Outstanding (Diluted) | 362.00M357.40M | +1.3% |
05—Questions
Frequently Asked Questions
What was Intuitive Surgical's total revenue for the year ended December 31, 2024, and what drove this growth?
Intuitive Surgical's total revenue for the year ended December 31, 2024, increased by 17% to $8.4 billion. This growth was primarily driven by a 19% increase in instruments and accessories revenue, a 17% increase in systems revenue, and a 12% increase in service revenue. The strong performance in instruments and accessories was largely due to a 17% increase in da Vinci procedure volume and higher pricing for these items, while systems revenue was boosted by an 11% increase in da Vinci system placements and a higher average selling price.
How did the company's installed base of da Vinci surgical systems perform in 2024?
Intuitive Surgical experienced significant expansion of its da Vinci surgical system installed base, which grew by 15% to approximately 9,902 systems as of December 31, 2024. The company placed 1,526 new da Vinci surgical systems during the year, an 11% increase compared to the prior year, reflecting continued demand driven by procedure growth and customer validation of robotic-assisted surgery. The utilization of these systems, measured by procedures per system per year, also increased by 2% relative to 2023.
What is the company's outlook and what are the key risks for the upcoming year?
The company expects to continue investing in its business, including expanding manufacturing capabilities and launching new products like the da Vinci 5 system. However, it faces several risks including intense competition from existing and new players in the robotic surgery market, potential supply chain disruptions, evolving regulatory landscapes, and macroeconomic uncertainties such as inflation and high interest rates which could impact hospital capital spending. International operations also present risks related to currency fluctuations and varying regulatory requirements. Management is focused on navigating these challenges through innovation and strategic execution.
How is the Ion endoluminal system performing, and what are the growth drivers?
The Ion endoluminal system is showing strong growth, with procedures increasing by 78% to approximately 95,500 in 2024. The installed base for Ion systems also grew significantly, up 51% to 805 units. This growth is attributed to increased customer demand for diagnostic procedures, expansion into new markets, and the company's efforts to optimize training pathways and gather clinical data to support adoption and reimbursement strategies.
06—Continue