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Intuitive Surgical 8-K Report, Financial Results (Jul 18, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed July 18, 2024
Period End
July 18, 2024
Security
ISRG
In the record · 2016–202610-K1110-Q338-K100

ISRG filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 100 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Jan ’17Jan ’17
  2. Leadership change8-K · May ’22May ’22
  3. Leadership change8-K · Nov ’26Nov ’26

01—Abstract

Summary

Summary of the 8-K filed July 18, 2024. Cited figures are marked; the original filing is the authoritative source.

Intuitive Surgical reported strong second-quarter 2024 results, with revenue of $2.01 billiona, up 14% from $1.76 billion a year earlier.

Worldwide da Vinci procedures grew about 17%, and Ion procedures grew about 82%. Instruments and accessories revenue rose 16% to $1.24 billionb, the main driver of the top-line growth. Systems revenue increased to $448 million from $393 million on 341 da Vinci placements, including 70 da Vinci 5 units.

The installed base reached 9,203 systems, up 14% year over year. Gross margin improved to about 68.3% on a GAAP basis from about 66.7% a year earlier, and GAAP income from operations rose 22% to $567 millionc. Management described the business as healthy and highlighted feedback on da Vinci 5 and continued adoption of SP and Ion.

Profitability was also strong. GAAP net income attributable to Intuitive was $527 milliond, or $1.46 per diluted share, compared with $1.18 a year earlier. Non-GAAP net income was $641 million, or $1.78 per diluted share, versus $1.42.

The GAAP and non-GAAP gap is driven mainly by share-based compensation and excess tax benefits of $36 million, or $0.10 per share. A $7.2 million litigation charge was excluded from non-GAAP results. Cash, cash equivalents, and investments ended the quarter at $7.68 billion, up $360 million in the quarter, supported by operating cash flow and partially offset by capital expenditures.

The 8-K is a routine earnings disclosure furnished under Item 2.02, so it is not deemed filed for Section 18 purposes. It contains no forward guidance; the full outlook would be found on the earnings call and in the press release's forward-looking statements. Investors should note that a higher share of placements was under operating leases (175 of 341, including 92 usage-based), which shifts revenue recognition toward recurring usage and makes system revenue less immediate.

02—Key points

Key Highlights

  1. Revenue rose 14% year over year to $2.01 billion, with instruments and accessories up 16% to $1.24 billion.
  2. Worldwide da Vinci procedures grew about 17%, and Ion procedures grew about 82%.
  3. 341 da Vinci systems were placed, including 70 da Vinci 5 units, versus 331 a year earlier; the installed base reached 9,203 (+14%).
  4. GAAP net income was $527 million ($1.46 per diluted share), and non-GAAP net income was $641 million ($1.78 per diluted share), up from $1.42 a year earlier.
  5. GAAP gross margin improved to about 68.3% from about 66.7%, and GAAP operating income rose 22% to $567 million.
  6. Cash, cash equivalents, and investments reached $7.68 billion, up $360 million in the quarter.
  7. Of the 175 systems placed under operating leases, 92 were usage-based, indicating a growing recurring-revenue mix.

03—Questions

Frequently Asked Questions

  1. What drove revenue growth in the quarter?

    Growth was driven primarily by about 17% growth in da Vinci procedure volume, about 82% growth in Ion procedure volume, and a larger installed base. Instruments and accessories, which are tied to procedure volume, grew 16%, and systems revenue rose 14% to $448 million.

  2. How did profitability compare with the prior year?

    GAAP income from operations increased to $567 million from $463 million, and non-GAAP income from operations rose to $754 million from $618 million. GAAP net income per diluted share was $1.46, up from $1.18, and non-GAAP EPS was $1.78, up from $1.42.

  3. Why is there a difference between GAAP and non-GAAP earnings?

    Non-GAAP results exclude share-based compensation of $174 million, amortization of intangibles, long-term incentive plan expense, a $7.2 million litigation charge, gains on strategic investments, and tax adjustments. The largest tax adjustment is excess tax benefits from share-based compensation of $36 million, or $0.10 per share.

  4. Does the filing provide forward guidance?

    No. The 8-K furnishes the Q2 2024 earnings press release, which contains no forward-looking financial guidance. Outlook commentary would be found in the earnings call and related materials.

  5. How strong is the company's financial position?

    Cash, cash equivalents, and investments were $7.68 billion at June 30, 2024, up from $7.34 billion at year-end 2023. Total liabilities were $1.85 billion against stockholders' equity of $14.80 billion, indicating a conservative balance sheet.

04—Continue

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