INTUITIVE SURGICAL INC Quarterly Report for Q2 Ended Jun 30, 2020

Summary

Intuitive Surgical Inc. (ISRG) reported its second quarter 2020 financial results, significantly impacted by the COVID-19 pandemic. Total revenue for the quarter decreased by 22% year-over-year to $852.1 million. This decline was primarily driven by a 19% reduction in da Vinci procedures performed, leading to lower revenue from instruments, accessories, systems, and services. The company implemented a Customer Relief Program, which included service fee credits, payment deferrals, and extended payment terms, impacting service revenue by $59 million in the second quarter. Despite the challenges, the installed base of da Vinci Surgical Systems grew by 9% year-over-year to approximately 5,764 systems. The company maintained a strong liquidity position with $6.1 billion in cash, cash equivalents, and investments as of June 30, 2020.

Key Highlights

• 1Total revenue for Q2 2020 decreased 22% to $852.1 million, primarily due to the impact of COVID-19 on surgical procedures.
• 2da Vinci procedures declined 19% to approximately 243,000 in Q2 2020 compared to the prior year.
• 3Systems revenue saw a 24% decrease to $261 million, with total system shipments down 35% year-over-year to 178 units.
• 4Service revenue decreased 26% to $130 million, significantly impacted by $59 million in service fee credits provided under the Customer Relief Program.
• 5Gross profit margin decreased to 59.0% from 69.1% in the prior year's quarter, influenced by lower volumes and increased costs.
• 6The da Vinci Surgical System installed base increased by 9% to approximately 5,764 systems as of June 30, 2020.
• 7The company ended the quarter with $6.1 billion in cash, cash equivalents, and investments, demonstrating a strong liquidity position.

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