10-QPeriod: Q1 FY2024

INTUITIVE SURGICAL INC Quarterly Report for Q1 Ended Mar 31, 2024

Filed April 19, 2024For Securities:ISRG

Summary

Intuitive Surgical Inc. (ISRG) reported strong financial results for the first quarter of 2024, demonstrating robust growth across key operational and financial metrics. Total revenue increased by 11% year-over-year to $1.89 billion, driven by a significant 18% rise in instruments and accessories revenue and an 11% increase in service revenue. The company also saw substantial procedure growth, with da Vinci procedures up 16% and Ion procedures nearly doubling at a 90% increase. This growth is supported by an expanding installed base of da Vinci systems, up 14% year-over-year, and a 61% increase in Ion systems. Despite a slight 2% decrease in systems revenue, attributed to a higher proportion of systems placed under operating leases, the company's operational performance remains strong. Profitability also improved, with operating income increasing by 21% and gross profit margin holding steady at 65.9%. The company ended the quarter with a healthy cash position of $7.32 billion.

Financial Highlights

44 data points
Beta

Revenue

$1.89B

65.9% Gross Margin

Net Income

$544.90M

28.8% Net Margin

EPS (Diluted)

$1.51

Total Assets

$15.83B

Cash & Equivalents

$2.84B

Free Cash Flow

$265.40M

Financial Statements
Beta
Revenue$1.89B
Cost of Revenue$645.20M
Gross Profit$1.25B
R&D Expenses$284.50M
SG&A Expenses$491.50M
Operating Expenses$776.00M
Operating Income$469.40M
Net Income$544.90M
EPS (Basic)$1.54
EPS (Diluted)$1.51
Shares Outstanding (Basic)353.50M
Shares Outstanding (Diluted)360.50M

Key Highlights

  • 1Total revenue grew 11% to $1.89 billion, driven by strong performance in instruments, accessories, and services.
  • 2Da Vinci procedures increased by 16% year-over-year, indicating continued adoption and utilization of the company's core robotic surgical systems.
  • 3Ion endoluminal system procedures nearly doubled, showing significant traction for the company's newer diagnostic platform.
  • 4The installed base of da Vinci systems expanded by 14% to 8,887, with Ion systems growing by 61% to 604, reflecting continued market penetration.
  • 5Operating income rose 21% to $469 million, showcasing improved profitability.
  • 6Gross profit margin remained strong at 65.9%, demonstrating efficient cost management.
  • 7The company ended the quarter with $7.32 billion in cash, cash equivalents, and investments, providing substantial financial flexibility.

Frequently Asked Questions

The primary drivers of revenue growth were an 18% increase in instruments and accessories revenue and an 11% increase in service revenue. This was partially offset by a 2% decrease in systems revenue, largely due to a higher proportion of systems being placed under operating leases rather than direct sales.

The Ion endoluminal system is showing significant growth. Procedures performed with the Ion system increased by 90% year-over-year, and the installed base grew by 61%. This indicates strong market acceptance and adoption of this diagnostic tool.

Intuitive Surgical anticipates capital expenditures ranging between $1 billion and $1.2 billion in 2024, with a majority allocated to facilities to expand manufacturing and commercial capabilities. The company plans to fund these investments through cash generated from operations.

The company is involved in various legal proceedings, including product liability litigation and patent litigation. While the company is actively defending these claims, the outcomes are uncertain and could potentially have a material adverse effect on its business, financial condition, or future results of operations. The company is unable to estimate the range of losses for several of these matters.