01—Abstract
Summary
Summary of the 10-Q filed April 19, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb.
02—Key points
Key Highlights
- Total revenue grew 11% to $1.89 billion, driven by strong performance in instruments, accessories, and services.
- Da Vinci procedures increased by 16% year-over-year, indicating continued adoption and utilization of the company's core robotic surgical systems.
- Ion endoluminal system procedures nearly doubled, showing significant traction for the company's newer diagnostic platform.
- The installed base of da Vinci systems expanded by 14% to 8,887, with Ion systems growing by 61% to 604, reflecting continued market penetration.
- Operating income rose 21% to $469 million, showcasing improved profitability.
- Gross profit margin remained strong at 65.9%, demonstrating efficient cost management.
- The company ended the quarter with $7.32 billion in cash, cash equivalents, and investments, providing substantial financial flexibility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Intuitive Surgical kept $0.29.
- Revenue$1.89B100.0%
- Cost of revenue−$645.2M34.1%
- Gross profit$1.25B65.9%
- Operating costs−$776.0M41.0%
- Operating income$469.4M24.8%
- Interest, other & tax$75.5M4.0%
- Net income$544.9M28.8%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 19, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $1.89B$1.70B | +11.5% |
| Cost of Revenue | $645.20M$583.20M | +10.6% |
| Gross Profit | $1.25B$1.11B | +11.9% |
| R&D Expenses | $284.50M$244.90M | +16.2% |
| SG&A Expenses | $491.50M$480.50M | +2.3% |
| Operating Expenses | $776.00M$725.40M | +7.0% |
| Operating Income | $469.40M$387.60M | +21.1% |
| Net Income | $544.90M$355.30M | +53.4% |
| EPS (Basic) | $1.54$1.01 | +52.5% |
| EPS (Diluted) | $1.51$1.00 | +51.0% |
| Shares Outstanding (Basic) | 353.50M350.20M | +0.9% |
| Shares Outstanding (Diluted) | 360.50M356.00M | +1.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of revenue growth in Q1 2024?
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.
How is the Ion endoluminal system performing?
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.
What is the company's outlook on capital spending and future investments?
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.
Are there any significant legal or regulatory matters impacting the company?
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.
06—Continue