InMode Ltd. (NASDAQ: INMD) reported Q1 EPS of $0.30, $0.02 worse than the analyst estimate of $0.32. Revenue for the quarter came in at $40.44 million versus the consensus estimate of $37.88 million.

First Quarter 2020 Highlights:

• Quarterly revenue of $40.4 million, an increase of 32% compared to the first quarter in 2019. In the first quarter of 2020, we derived approximately 61% of our U.S. revenues from our proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 37% of our U.S. revenues from our recently introduced Hands-Free platforms and only 2% of our U.S. revenues from traditional laser and non-invasive RF platforms.
• GAAP net income of $6.4 million, compared to $10.1 million in the first quarter in 2019; *non-GAAP net income of $12.6 million, compared to $10.5 million in the first quarter in 2019
• GAAP diluted earnings per share of $0.15 and *non-GAAP diluted earnings per share of $0.30
• Total cash position of $201.7 million as of March 31, 2020, including cash and cash equivalents, marketable securities and short-term bank deposits

Management Comments

"The first quarter of 2020 started on a positive note as we gained momentum following the launches of our unique hands-free devices, Evolve and Evoke, along with continued demand across our product portfolio," commented Moshe Mizrahy, CEO of InMode. "However, in the beginning of March, global restrictions caused by the COVID-19 pandemic led to a standstill in sales in our industry. Despite this global economic lull, we continued to strengthen our infrastructure and product portfolio through research and development investments, furthering of regulatory processes for devices and indications worldwide, and the establishment of a wholly owned subsidiary for sales and marketing in France. Additionally, we have strengthened our supply chain in an effort to ensure stability in manufacturing capacity and inventory."

"We continued to hire experienced talent and established a virtual training and demonstration center for our customers and staff through the InMode University platform," said Mr. Shakil Lakhani, President of InMode North America.

"We remain confident in InMode's current market position and ability to further our technological innovation. We believe that our breakthrough devices, Evolve and Evoke, are well-positioned to attract both physicians and patients post-crisis, as the demand for minimally invasive and hands-free alternatives will grow, opposed to historic post-crisis declines seen with invasive surgical procedures. Therefore, we believe that these technologies will be significant growth drivers in the future and will become the standard of care for facial and body reshaping in the future," added Mr. Lakhani.

"In addition, we remain confident in InMode's current and future financial position given our market leadership, innovative approach and strong balance sheet," said Mr. Yair Malca, CFO of InMode.

Outlook

Since visibility of the future is low, InMode management decided not to give an updated detailed guidance for 2020. Currently, based on the assumptions above - our revenue outlook for the full year of 2020 will not be significantly lower than our revenue in 2019, and we will maintain a gross margin of 84%-86%.

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