10-QPeriod: Q2 FY2023

INTUITIVE SURGICAL INC Quarterly Report for Q2 Ended Jun 30, 2023

Filed July 24, 2023For Securities:ISRG

Summary

Intuitive Surgical, Inc. (ISRG) reported robust performance in its second quarter and first half of 2023, demonstrating continued growth in revenue and procedures. Total revenue increased by 15% year-over-year for the quarter, reaching $1.76 billion, driven by strong performance in instruments and accessories, services, and systems. This growth was fueled by a significant 22% increase in da Vinci procedures globally, alongside a substantial 145% rise in Ion procedures. The company continues to expand its installed base, with da Vinci surgical systems increasing by 13% year-over-year to 8,042, and the Ion system seeing over a 100% increase in its installed base. Profitability remains strong, with operating income up 16% year-over-year for the quarter. Despite ongoing macroeconomic challenges such as inflation and supply chain pressures, ISRG has managed to mitigate these impacts, reporting that supply chain disruptions have not materially affected results to date. The company maintains a strong liquidity position with $7.13 billion in cash, cash equivalents, and investments as of June 30, 2023.

Financial Highlights

46 data points
Beta

Revenue

$1.76B

66.7% Gross Margin

Net Income

$420.80M

24.0% Net Margin

EPS (Diluted)

$1.18

Total Assets

$13.90B

Cash & Equivalents

$3.46B

Free Cash Flow

$665.70M

Financial Statements
Beta
Revenue$1.76B
Cost of Revenue$584.00M
Gross Profit$1.17B
R&D Expenses$244.40M
SG&A Expenses$464.30M
Operating Expenses$708.70M
Operating Income$463.20M
Net Income$420.80M
EPS (Basic)$1.20
EPS (Diluted)$1.18
Shares Outstanding (Basic)350.90M
Shares Outstanding (Diluted)357.30M

Key Highlights

  • 1Total revenue grew 15% year-over-year to $1.76 billion in Q2 2023.
  • 2Global da Vinci procedures increased by 22% year-over-year in Q2 2023, reaching approximately 567,000.
  • 3Instruments and accessories revenue saw a 20% increase year-over-year in Q2 2023, reaching $1.08 billion.
  • 4The da Vinci system installed base grew 13% year-over-year to 8,042 as of June 30, 2023.
  • 5Operating income increased by 16% year-over-year in Q2 2023, reaching $463 million.
  • 6The company generated strong operating cash flow, with $1.04 billion for the first six months of 2023.
  • 7Cash, cash equivalents, and investments totaled $7.13 billion as of June 30, 2023, indicating a healthy liquidity position.

Frequently Asked Questions

Intuitive Surgical demonstrated strong financial performance in Q2 2023. Total revenue increased by 15% year-over-year to $1.76 billion. This growth was driven by a robust increase in da Vinci procedures (up 22%), leading to higher revenue from instruments and accessories. Operating income also saw a healthy increase of 16% year-over-year.

The company acknowledges ongoing supply chain constraints and macroeconomic pressures like inflation and higher interest rates. However, it reports that these challenges have not materially impacted its results or ability to deliver products to date. Signs of improvement in the supply chain situation were noted in the first half of 2023 compared to 2022. The company is actively engaged in mitigation efforts.

In Q2 2023, Intuitive Surgical placed 331 da Vinci surgical systems, an increase from 279 in the prior year's quarter. The da Vinci system installed base grew by 13% year-over-year to approximately 8,042 systems as of June 30, 2023. This expansion indicates continued adoption and market penetration.

The company expects future growth to be influenced by procedure growth, continued adoption of robotic-assisted surgery, international expansion, and the success of new product introductions like the da Vinci SP and Ion systems. While acknowledging macroeconomic challenges that may impact customer capital spending, the company remains optimistic due to strong procedure growth and a solid installed base.