InMode Ltd. (NASDAQ: INMD) reported Q4 EPS of $0.46, $0.08 better than the analyst estimate of $0.38. Revenue for the quarter came in at $47 million versus the consensus estimate of $42.28 million.

Fourth Quarter 2019 Highlights:

• Record quarterly revenue of $47 million, an increase of 63% compared to the fourth quarter in 2018
• GAAP net income attributable to InMode Ltd. of $19.0 million, compared to a $0.2 million loss attributable to InMode Ltd. in the fourth quarter in 2018; *non-GAAP net income attributable to InMode Ltd. of $19.3 million
• GAAP and *non-GAAP fully diluted earnings per share of $0.46
• Total cash position of $193.4 million as of December 31, 2019, including cash and cash equivalents, marketable securities and short-term bank deposits

Management Comments

In 2015, the U.S. Food and Drug Administration ("FDA") cleared InMode's new and proprietary Bipolar Radio Frequency technology, which enabled further development and marketing of Subdermal Adipose Remodeling Devices (SARD – BodyTite, FaceTite, AccuTite and Morpheus8). With this new technology, InMode introduced a new category: "Minimally Invasive and Subdermal Ablative Aesthetic Surgery", that enables physicians to provide solutions to patients that do not want to suffer from the shortcomings of full plastic surgery yet would like to obtain comparable results ("Treatment Gap patients").

The success of InMode's Subdermal Adipose Remodeling Devices (SARD) in the minimally invasive and subdermal ablative space inspired InMode to apply the same principles of facial and body reshaping to the non-invasive market in a hands-free application. As such, InMode developed two FDA-cleared distinct hands-free platforms: the Evolve for body and the Evoke for face.

The introduction of Evolve and Evoke to the market created yet another new category within the aesthetic market: "Hands-Free Aesthetic Procedures." Currently, these two proprietary and protected categories (aesthetic surgery and hands-free aesthetic procedures) are expected to be the primary growth engines for InMode in the coming years.

As for global reach - InMode continues to develop the U.S. and international markets through its network of subsidiaries and distributors. In addition, InMode continues to work on clinical and obtaining regulation approval in various countries, recently receiving ANVISA clearance from Brazil, and additional approvals in the U.S. (FDA), Canada, Taiwan and other countries in Eastern Europe.

GUIDANCE:

InMode Ltd. sees FY2020 EPS of $1.85-$1.93, versus the consensus of $1.70. InMode Ltd. sees FY2020 revenue of $190-198 million, versus the consensus of $190.58 million.

Management provided an outlook for the full year of 2020, the period ending December 31, 2020. Based on current estimates, management expects:

• $190 million to $198 million in revenue
• 85%-87% in Gross Margins
• *Non-GAAP Income from Operations - $76 million to $80 million
• *Non-GAAP Earnings per Diluted Share - $1.85 - $1.93

For earnings history and earnings-related data on InMode Ltd. (INMD) click here.