Intuitive Surgical (ISRG) Prelim. Q4 Revenue Tops Consensus

Intuitive (the “Company”) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced certain unaudited preliminary fourth quarter and full year 2019 financial results ahead of its participation at the 38th Annual JP Morgan Healthcare Conference on January 14-15, 2020, in San Francisco, California.

Financial and Operational Highlights

• Fourth quarter 2019 worldwide da Vinci procedures increased approximately 19% compared with the fourth quarter of 2018. Full year 2019 worldwide da Vinci procedures increased approximately 18% compared with 2018.
• Preliminary fourth quarter 2019 revenue of $1.278 billion grew 22% compared with $1.047 billion for the fourth quarter of 2018. Preliminary 2019 revenue of $4.479 billion grew 20% compared with $3.724 billion for 2018.
• The Company shipped 336 da Vinci Surgical Systems in the fourth quarter of 2019 compared with 290 in the fourth quarter of 2018. The Company shipped 1,119 da Vinci Surgical Systems in 2019, compared with 926 systems in 2018.
• In November 2019, the Company received U.S. Food and Drug Administration clearance for the SynchroSeal instrument and E-100 generator. SynchroSeal is a single-use, bipolar, electrosurgical instrument intended for grasping, dissection, sealing, and transection of tissue that offers enhanced versatility to our da Vinci Energy portfolio. The E-100 generator is an electrosurgical generator developed to power two key instruments - Vessel Sealer Extend and SynchroSeal - on the da Vinci X and Xi Surgical Systems.

Preliminary Results

The Company expects fourth quarter 2019 revenue of approximately $1.278 billion, an increase of 22% compared with $1.047 billion in the fourth quarter of 2018. The Company expects 2019 revenue of approximately $4.479 billion, an increase of 20% compared with $3.724 billion in 2018. The unaudited results in this press release are preliminary and subject to the completion of the Company’s annual independent audit and, therefore, are subject to adjustment.

(*Consensus sees Q4 revenue of $1.22 billion)

Preliminary fourth quarter 2019 instrument and accessory revenue increased 24% to approximately $671 million, compared with $539 million in the fourth quarter of 2018. Preliminary full year 2019 instrument and accessory revenue increased 23% to approximately $2.408 billion, compared with $1.962 billion for 2018. Fourth quarter and full year 2019 instrument and accessory revenue growth was primarily driven by growth in da Vinci procedure volume.

Fourth quarter 2019 da Vinci procedures increased approximately 19% compared with the fourth quarter of 2018. In 2019, approximately 1,229,000 surgical procedures were performed with da Vinci Surgical Systems, an increase of approximately 18% compared with approximately 1,038,000 surgical procedures performed with da Vinci Surgical Systems in 2018. The growth in our overall procedure volume in 2019 was primarily driven by growth in U.S. general surgery procedures and worldwide urologic procedures. The Company expects worldwide da Vinci procedures to increase approximately 13% to 16% in 2020.

Preliminary fourth quarter 2019 systems revenue increased 22% to approximately $416 million, compared with $341 million in the fourth quarter of 2018. Preliminary full year 2019 systems revenue increased 19% to approximately $1.346 billion, compared with $1.127 billion in 2018. The Company shipped 336 da Vinci Surgical Systems in the fourth quarter of 2019, compared with 290 systems in the fourth quarter of 2018. The fourth quarter 2019 system shipments included 126 shipped under operating lease and usage-based arrangements, compared with 84 in the fourth quarter of 2018. The Company shipped 1,119 da Vinci Surgical Systems in 2019, compared with 926 systems in 2018. The 2019 system shipments included 384 systems shipped under operating lease and usage-based arrangements, compared with 229 systems in 2018.

Commenting on the announcement, Intuitive CEO Gary Guthart said, “We are pleased with our fourth quarter procedure growth, system placements, and the financial results that follow. As we enter 2020, we remain focused on innovation across our ecosystem of products and working collaboratively with our customers to support best in class robotics programs.”

Additional unaudited preliminary revenue and procedure information has been posted to the Investor Relations section of the Intuitive website at: https://isrg.gcs-web.com/.

The Company is scheduled to present at the 2020 JP Morgan Healthcare Conference on January 14, 2020, at 10:30 a.m. Pacific Time. The Company is scheduled to report its fourth quarter 2019 results during a conference call on January 23, 2020, at which point the Company will discuss the 2019 financial results in more detail. Dial-in and webcast access information for both of these events are also available in the Investor Relations section of the Intuitive website.

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