Summary
Intuitive Surgical, Inc. (ISRG) reported strong performance for the third quarter and first nine months of 2017, demonstrating robust revenue growth and increasing procedure volumes. Total revenue for the third quarter rose 18% year-over-year to $806.1 million, driven by a 26% increase in systems revenue and a 15% rise in instrument and accessory revenue. This growth was fueled by a 15% increase in da Vinci procedures performed globally, reaching approximately 214,000 in the quarter. The company also saw a significant increase in system shipments, with 169 da Vinci Surgical Systems shipped in Q3 2017, up 26% from the prior year's third quarter. For the first nine months of 2017, total revenue grew 15% to $2.24 billion. Net income for the nine-month period was $698.8 million, a substantial increase from $531.9 million in the same period of 2016, reflecting strong operational execution and favorable tax impacts from adopting new accounting standards related to share-based payments. The company maintains a strong liquidity position with $3.8 billion in cash, cash equivalents, and investments as of September 30, 2017, though this was impacted by a significant accelerated share repurchase program. Investments in research and development continue, signaling a commitment to innovation and future growth.
Financial Highlights
47 data points| Revenue | $806.10M |
| Cost of Revenue | $239.30M |
| Gross Profit | $568.10M |
| R&D Expenses | $83.40M |
| SG&A Expenses | $204.10M |
| Operating Expenses | $287.50M |
| Operating Income | $280.60M |
| Net Income | $298.60M |
| EPS (Basic) | $0.89 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 335.40M |
| Shares Outstanding (Diluted) | 350.40M |
Key Highlights
- 1Total revenue for Q3 2017 increased by 18% to $806.1 million, driven by strong performance in both systems and recurring revenue (instruments and accessories, service).
- 2da Vinci procedures performed globally increased by 15% to approximately 214,000 in Q3 2017, indicating continued adoption and utilization of the company's surgical systems.
- 3Systems revenue saw a significant jump of 26% to $258.1 million in Q3 2017, supported by a 26% increase in system shipments (169 units).
- 4Instrument and accessory revenue, a key component of recurring revenue, grew by 15% to $401.2 million, reflecting higher procedure volumes.
- 5Net income for the nine months ended September 30, 2017, increased to $698.8 million from $531.9 million in the prior year, demonstrating improved profitability.
- 6The company's cash, cash equivalents, and investments stood at $3.8 billion as of September 30, 2017, providing a strong liquidity position.
- 7Research and development expenses increased by 33% in Q3 and 42% year-to-date, reflecting significant investment in new product development and future technologies.