01—Abstract
Summary
Summary of the 8-K filed January 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Intuitive Surgical (ISRG) furnished an 8-K on January 9, 2024 disclosing unaudited preliminary fourth quarter and full year 2023 results ahead of its J.P.
Morgan Healthcare Conference presentation. Preliminary full-year 2023 revenue was approximately $7.12 billiona, up 14% from $6.22 billion in 2022, while Q4 2023 revenue was approximately $1.93 billion, up 17%. Growth was led by instruments and accessories (I&A), which rose 22% to about $4.28 billion for the year, driven by da Vinci procedure volume growth and higher I&A pricing, partially offset by customer buying patterns.
Systems revenue was flat for the full year at about $1.68 billionb, though Q4 systems revenue rose 6%. Services revenue grew 14% for the year to about $1.17 billion, and recurring revenue made up roughly 83% of total 2023 revenue. Procedure volume was the central story.
Worldwide da Vinci procedures grew approximately 22%c in 2023 to about 2.29 million, with U.S. general surgery procedures up 25% and outside-the-U.S. procedures up 27%, mainly from cancer procedures. Placements reached 1,370 systems for the year (up 8%) and 415 in Q4 (up 12%), with Asia and usage-based operating leases showing notable gains. Management guided to 13% to 16% worldwide procedure growth in 2024.
Investors should note that all figures are preliminary and unaudited, since the company had not yet filed its 2023 Form 10-K, and results remain subject to final closing procedures and audit adjustments. The company also said it would report full Q4 2023 results on January 23, 2024. The 2022 Q4 comparison was depressed by COVID-19 in China, which flatters year-over-year growth rates somewhat.
02—Key points
Key Highlights
- Full-year 2023 preliminary revenue of ~$7.12B, up 14% YoY; Q4 2023 revenue of ~$1.93B, up 17% YoY
- Instruments and accessories revenue grew 22% for the year to ~$4.28B, driven by procedure growth and higher pricing
- Worldwide da Vinci procedures grew ~22% to ~2.29M in 2023; U.S. general surgery up 25%, outside-U.S. up 27%
- Systems revenue flat for 2023 at ~$1.68B, while Q4 systems revenue rose 6% to ~$480M
- Placements of 1,370 systems in 2023 (+8%) and 415 in Q4 (+12%); Asia placements up 25% for the year
- Services revenue up 14% to ~$1.17B; recurring revenue ~83% of total revenue
- 2024 guidance: worldwide da Vinci procedures expected to grow approximately 13% to 16%; results are unaudited and subject to adjustment
03—Questions
Frequently Asked Questions
What were Intuitive Surgical's preliminary 2023 revenue and growth rates?
Preliminary full-year 2023 revenue was approximately $7.12 billion, up 14% from $6.22 billion in 2022. Fourth-quarter 2023 revenue was approximately $1.93 billion, up 17% from $1.66 billion a year earlier.
What drove the growth in instruments and accessories revenue?
I&A revenue rose 22% to about $4.28 billion for 2023, primarily due to growth in da Vinci procedure volume and higher pricing for instruments and accessories, partially offset by customer buying patterns.
What is the outlook for procedure growth in 2024?
Intuitive expects worldwide da Vinci procedures to increase approximately 13% to 16% in 2024 compared with 2023, following about 22% growth in 2023.
Are these results final, and when will the company report full details?
No. The figures are unaudited and preliminary because the company had not yet filed its 2023 Form 10-K, and they remain subject to final closing procedures and audit adjustments. Intuitive plans to report fourth-quarter 2023 results on a conference call on January 23, 2024.
Why did systems revenue stay flat despite strong procedure and placement growth?
Full-year systems revenue was about $1.68 billion, consistent with 2022, even though 2023 placements rose 8% to 1,370 units. The filing does not explicitly explain the mix or pricing drivers behind the flat systems revenue, so investors would need the full 10-K or earnings call for detail.
04—Continue