Yes. These forward-looking statements include, but are not limited to, statements related to the expected impacts of the COVID-19 pandemic on the Companys business, financial condition, and results of operations, future results of operations, future financial position, the Companys financing plans and future capital requirements, the Companys potential tax assets or liabilities, and statements based on current expectations, estimates, forecasts, and projections about the economies and markets in which the Company operates and the Companys beliefs and assumptions regarding these economies and markets. It affirms that "RAS devices have been cleared for use in certain types of surgical procedures commonly performed in patients with cancer, such as hysterectomy, prostatectomy and colectomy. And so we'll see over time, we'll be able to measure a little bit better over time, and we'll monitor it. The Company defines non-GAAP EPS as non-GAAP net income attributable to Intuitive Surgical, Inc. divided by non-GAAP diluted shares, which are calculated as GAAP weighted-average outstanding shares plus dilutive potential shares outstanding during the period. Can you maybe just talk a little bit about the road map? Intuitive Surgical (ISRG-0.90%) investors who weren't expecting it to perform a three-for-one stock split recently woke up to what looked like an overnight loss of more than 60%. Forward-looking statements relate to expectations concerning matters that are not historical facts. And so we have some catch-up to do in terms of infrastructure and support necessary to support the overall business. Listen to Webcast. I think that would be a mistake. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release and which are based on current expectations and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors identified under the heading Risk Factors in the Companys Annual Report on Form 10-K for the year ended December31, 2021, and the Companys Quarterly report on Form 10-Q for the quarter ended September 30, 2022, as updated by the Companys other filings with the Securities and Exchange Commission. To change your e-mail options at The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Companys business. Even though we've seen growth in the procedures that were specifically targeted by extended use instruments, it's hard to discern what is COVID-related versus what is not. 5001-10,000 Employees. Medistim ASA schlgt ordentliche Dividende fr 2021 vor, zahlbar am 9. Non-GAAP gross profit. Having said that, it's a difficult procedure for surgeons to perform. These forward-looking statements should be considered in light of various important factors, including, but not limited to, the following: the overall macroeconomic environment, which impacts customer spending and the Companys costs, including increased inflation and interest rates, the conflict in Ukraine, disruption to the Companys supply chain, including increased difficulties in obtaining a sufficient supply of materials in the semiconductor and other markets, the risk that the COVID-19 pandemic could lead to material delays and cancellations of, or reduced demand for, procedures; curtailed or delayed capital spending by hospitals; closures of the Companys facilities; delays in surgeon training; delays in gathering clinical evidence; delays in obtaining new product approvals, clearances, or certifications from the U.S. Food and Drug Administration (FDA), comparable regulatory authorities, or notified bodies; diversion of resources to respond to COVID-19 outbreaks; the impact of global and regional economic and credit market conditions on healthcare spending; the risk of the Companys inability to comply with complex FDA and other regulations, which may result in significant enforcement actions; regulatory approvals, clearances, certifications, and restrictions or any dispute that may occur with any regulatory body; guidelines and recommendations in the healthcare and patient communities; healthcare reform legislation in the U.S. and its impact on hospital spending, reimbursement, and fees levied on certain medical device revenues; changes in hospital admissions and actions by payers to limit or manage surgical procedures; the timing and success of product development and market acceptance of developed products; the results of any collaborations, in-licensing arrangements, joint ventures, strategic alliances, or partnerships, including the joint venture with Shanghai Fosun Pharmaceutical (Group) Co., Ltd.; the Companys completion of and ability to successfully integrate acquisitions, including Opheus Medical; procedure counts; intellectual property positions and litigation; competition in the medical device industry and in the specific markets of surgery in which the Company operates; risks associated with the Companys operations and any expansion outside of the United States; unanticipated manufacturing disruptions or the inability to meet demand for products; the Companys reliance on sole and single source suppliers; the results of legal proceedings to which we are or may become a party, including but not limited to product liability claims; adverse publicity regarding us and the safety of the Companys products and adequacy of training; the impact of changes to tax legislation, guidance, and interpretations; changes in tariffs, trade barriers, and regulatory requirements; and other risks and uncertainties. It last split in October of 2017. Please go ahead, sir. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. Ladies and . Submit. Long-term incentive plan expense relates to phantom share awards granted in China by the Companys Intuitive-Fosun joint venture to its employees that vest over four years and can remain outstanding for seven to ten years. 07/21/22 - 1:30 PM PDT. Phone: 408-523-2161 The number we're watching closely is hospitalization. We've seen that in some OUS markets. Over 5 years of experience in working with experienced consultants in the banking and high-tech sectors to drive projects and initiatives in a cross-cultural environment. The Companys calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. Thank you. Thanks. Good afternoon. Second-quarter OUS procedure volume grew approximately 51%, compared with a 7% decline for the second quarter of 2020 and 23% growth last quarter. Second-quarter system placements of 328 systems increased 84%, compared with 178 systems for the second quarter of 2020, and increased 10%, compared with 298 systems last quarter. The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. Thanks. Intuitive Surgical's adjusted net . We are developing and deploying technology-enabled ecosystems to support our customers' pursuit of the Quadruple Aim, better outcomes, better patient experiences, better care team experiences, and lower total cost to treat per patient episode. And so I think you're going to see this quarter was extraordinary in terms of the operating profit margin and that we'll -- it will be lower in future quarters, given what I just described. So right now, we talked in the script about adding our work or IDE around colorectal, we're excited about that. There are a number of limitations related to the use of non-GAAP measures versus measures calculated in accordance with GAAP. Management addresses these limitations by providing specific information regarding the GAAP amounts excluded from non-GAAP net income attributable to Intuitive Surgical, Inc. and non-GAAP EPS and evaluating non-GAAP net income attributable to Intuitive Surgical, Inc. and non-GAAP EPS together with net income attributable to Intuitive Surgical, Inc. and net income per share attributable to Intuitive Surgical, Inc. calculated in accordance with GAAP. any time, re-enter your e-mail address and click Submit, then adjust your form entries. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. Constant currency revenue growth. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. It's not just the robot. The next page will display a menu of options. The second quarter of 2020 included $59 million of service credits issued in conjunction with our Customer Relief Program, higher period costs associated with lower production, and higher excess and obsolete inventory charges. In addition to that, we still think this is a great opportunity to continue to invest in the ecosystem of products and capabilities at this point in time before competition really gets any kind of toehold. In the quarter, strong trade-ins of older-generation systems for our fourth-generation products and strength in multi-system deals continue to support our thesis that customers that know us best continue to invest with us going forward. During 2022, the impact of the COVID-19 pandemic on the Companys business has differed by geography and region. The Company ended the fourth quarter of 2021 with $8.6 billion in cash, cash equivalents, and investments, an increase of $400million during the quarter, primarily driven by cash generated from operations. The charge associated with the deferred-tax asset and a higher mix of U.S. income drove the 25% current quarter pro forma rate. The Company grew its da Vinci Surgical System installed base to 7,544 systems as of, Fourth quarter 2022 GAAP net income attributable to Intuitive was, Fourth quarter 2022 non-GAAP* net income attributable to Intuitive was. Cardio medical GmbH 10.4. So it's hard to time it out, and it doesn't time out over one or two quarters, it times out over years. And we're building into the broader digital ecosystem for SP. Second-quarter revenue reflected growth in both procedures and system placements. So we're excited about that because it gives them fast and easy access. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. I will now turn to our financial outlook for 2021. Second-quarter 2021 procedures increased approximately 68% compared with the second quarter of 2020 and increased approximately 13% compared with last quarter. Marshall will take you through our financial picture later in the call. Conversion rates to open surgery were lower in the robotic group compared to the laparoscopic group, 0.6% as compared to 4.9%, and reoperation rates in the 30 days post procedure were comparable between robotic and laparoscopic and lower for robotic as compared to open, 0.6% as compared to 3.1%. 2021 Proxy Statement - Special Meeting 224.6 KB. As a result, we expect lower trade-in transactions over time. Last page last E-mail Alerts. The fourth quarter 2022 system placements included 154systems placed under operating lease and usage-based arrangements, compared with 143 systems in thefourth quarter of 2021. Jamie, in his commentary, said that a lot of those procedures are benign procedures, many of them are shorter duration than longer or more complex disease states. Procedure growth drives capital purchases in many of our markets. That will play out over the next several quarters as we accrue patients. Full Time Faculty & Clinical Coordinator, Surgical Technologist Program Ask us about our $5,000 Sign on Bonus Rasmussen University Rasmussen University is seeking an experienced Surgical Technologist passionate about taking their own experience and translating that into helping students succeed in meeting their educational and professional goals. We also believe that growth benefited from some procedures that were previously deferred due to delays in testing and patient concern over COVID. Thank you for joining us today. And sequential growth in what they can do with the system remains our focus on SP for now. Research consulting in a firm with a clear vision to commercialize the neurotechnology industry at scale. Intuitive Surgical Inc (NASDAQ: ISRG) Q2 2021 earnings call dated Jul. The increase in cash in the second quarter primarily reflected cash from operations and stock exercises. What we've seen, though, is that what happens in the PowerPoints and what happens a year later is different. Current quarter system placements included 63 into Europe, 16 into Japan, and 19 into China, compared with 18 into Europe, 18 into Japan, and 21 into China in the second quarter of 2020. Intuitive Surgical Asensus Surgical . Field and marketing costs will tick up if the pandemic wanes. Recovery in the U.K. was healthy in the quarter as NHS increased access to surgeries broadly. 07/21/22 - 1:30 PM PDT. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 6%. Good afternoon, and welcome to Intuitive's second-quarter earnings conference call. This article is a transcript of this conference call produced for The Motley Fool. To choose Annualized U.S. procedure growth rates are returning to historical levels for procedures with longer diagnostic pipelines as patients have started returning to screening and diagnostic testing. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. That means that utilization will go up kind of naturally, that that mix moves toward a higher utilization mix. These forward-looking statements include, but are not limited to, statements related to the expected impacts of the COVID-19 pandemic on our business, financial condition, and results of operations, the potential impact on our procedure volume, our expected business, procedures, and procedure adoption, future results of operations, future financial position, our ability to increase our revenues, the anticipated mix of our revenues between product and service revenues, our financing plans and future capital requirements, anticipated costs of revenue, anticipated expenses, our potential tax assets or liabilities, our investments, anticipated cash flows, our ability to finance operations from cash flows and similar matters, and statements based on current expectations, estimates, forecasts, and projections about the economies and markets in which we operate and our beliefs and assumptions regarding those economies and markets. May 2021 - Present 1 year 10 months. Yeah, sure. So I think all of you on the call, you should expect increased alternatives for the customer base. An investor who was able to pick up $1,000 worth of Intuitive Surgical shares at its IPO price and held on has seen that investment grow to a whopping . SP procedures grew 133% year over year, with much of that growth coming from the United States. (2021) Dropped off in 2022. Instruments and accessories, training programs, support staff, analytics capability, publication, scientific publications demonstrating what you've done, the analytics, and evidence-based build are all, I think, important. The authors concluded in part, "When compared to open, the robotic-assisted surgery group is associated with a comparable operative time, shorter length of stay and lower reoperation rate through 30 days. On the benign side, often the diagnostic pipelines are shorter. Intuitive Surgical Investor Presentation. Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. It's a short period, but we believe that there is elasticity, and we've seen elasticity in markets where reimbursements are very low. Making the world smarter, happier, and richer. And so we see that as a benefit also with respect to feedback from surgeons. Just in terms of intra-quarter procedure trends, if you're asking, Larry, month by month, there was nothing notable actually that we would call out. There are no upcoming events available at this time. Through ingenuity and intelligent technology, we expand the potential of physicians to heal without constraints. Fourth quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $439 million, or $1.23 per diluted share, compared with $473 million, or $1.29 per diluted share, in the fourth quarter of 2021. Richard Wolf GmbH 10.6 . We think there is an opportunity to accelerate learning and to drive increased insight for a surgeon into their own progress. All Rights Reserved. I think that's anecdotal. Intuitive Surgical, Inc. (Nasdaq:ISRG), headquartered in Sunnyvale, Calif., is the pioneer and a global technology leader in robotic-assisted, minimally invasive surgery. The webcast replay of the call will be made available on our website at www.intuitive.com within 24 hours after the end of the live teleconference and will be accessible for at least 30 days. Intuitive Surgical's adjusted net income of $435 million in Q3 2021 reflected a good 30% rise from its $334 million figure in the prior-year quarter. It's the impact on hospitalizations. This MMR report includes investor recommendations based on a thorough examination of the Thoracic Surgery Market's contemporary competitive scenario. Intuitive brings more than two decades of leadership in robotic-assisted surgical technology and solutions to its offerings and develops, manufactures, and markets the da Vinci Surgical System and the Ion endoluminal system. Additional revenue statistics and trends are as follows. We're doing what we call the procedure development and the trial development around other indications, we think there'll be an opportunity in thoracic, as well as other ones beyond it. Email: investor.relations@intusurg.com. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. And I think you've alluded to adding additional instruments and accessories, so can you talk on the hardware side as well? Tuesday, October 18, 2022 4:30 PM EDT . And just, you know, on competition, it does seem like the noise is increasing. The Company ended the fourth quarter of 2022 with $6.74 billion in cash, cash equivalents, and investments, a decrease of $651 . your options for e-mail notification, please enter your e-mail address below and click We think about digital as enabling and accelerating a lot of different parts of the ecosystem. Jan 2023 - Present3 months. And I think for a subset of the benign procedures that have been kind of deferred elective procedures, hospitals can recover those pretty quickly. Corporate Governance Guidelines 384.4 KB. The Company presents constant currency revenue to provide a framework for assessing how our underlying business performed excluding the effect of foreign currency fluctuations. And I'm actually curious more what's going on with service and software at the hospitalwide kind of department of surgery level. And as competition progresses in various markets, we will likely experience longer selling cycles and price pressures. I've had the privilege of seeing Intuitive develop the use of robotics in multiple clinical indications over the years. I'll maybe start with Marshall on the first one and then go to Gary for the second one. During the first half of 2022, the Company saw COVID-19 resurgences impact da Vinci procedure volumes in the U.S. and Europe followed by recoveries. Compound annual growth between the second quarters of 2019 and 2021 was 16.5%. In there is OUS markets continue to be choppy given that, in many cases, those markets are behind the U.S., for example, in their vaccination rollouts, and that leaves the possibility of continued resurgences and localized lockdowns. (4) Income tax expense includes the effect of the following items: One-time tax benefit from re-measurement of certain deferred tax assets, Discrete tax expense arising from the conclusion of a tax matter, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. And as we've said in the past, if we can bring the right system with the right instruments, the right imaging, and the right usability, the right ease of use, we think that surgeons will care. And I'd just be curious to -- since you all are calling it out repeatedly as an important incremental growth driver, where are we now, in your view, in that, I'm sure, multiyear, long-term adoption process? (1) Selling, general and administrative includes the effect of the following item: (2) Income from operations includes the effect of the following items: (3) Interest and other income, net includes the effect of the following item: (4) Income tax expense includes the effect of the following item: Excess tax benefits related to share-based compensation arrangements, (5) Diluted net income per share attributable to, Amortization of intangible assets, net of tax, Gains (losses) on strategic investments, net of tax. It's a highly penetrated laparoscopic indication in the United States. Intuitive Surgical 10.5. OK. That's helpful. Today's format will consist of providing you with highlights of our second-quarter results as described in our press release announced earlier today followed by a question-and-answer session. And we think that the extended use instruments lowers barriers for purchases of systems. All Rights Reserved. The pandemic is not behind us, and additional infection growth may again strain hospital resources and impact our results in the future. There were nearly 1,500 Ion procedures completed in the second quarter. Fourth quarter 2021 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $27 million, or $0.07 per share, compared with $21 million, or $0.06 per share, in the fourth quarter of 2020. We expanded our installed base of da Vinci Systems over the last year by 10% to approximately 6,335 systems. Reported revenue and procedure results are consistent with the Companys press release issued on January 12, 2022. Long-term incentive plan expense relates to phantom share awards granted in China by the Companys joint venture, Shanghai Fosun Pharmaceutical (Group) Co., Ltd., to its employees that vest over four years and can remain outstanding for seven to ten years. One on procedures, one on competition. So that's a multi-quarter conversation. Now, I'd turn the conference over to our host, Brian King, Head of Investor Relations for Intuitive Surgical. Growth in our second largest market, China, continued to be strong with multiple specialties contributing. And so we watch that number because we know it's highly sensitive. Leasing and alternative financing arrangements enable customer access to capital. Next, we'll go to Bob Hopkins with Bank of America. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. Or any color you can provide on that? Are you seeing any impact thus far? Our SEC filings can be found through our website or at the SEC's website. I think they are ecosystem enablers and can result in very high customer satisfaction when done well. We also expect spending to increase as a percentage of revenue as investments in headcount, infrastructure, and other support areas catch up to the growth in the business. Congrats on the quarter. The authors concluded, "The results revealed that robotic-assisted thoracic surgery is a feasible and safe technique compared with VATs in terms of short-term and long-term outcomes." The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery. Second-quarter 2021 OUS procedure growth was driven by growth in prostatectomy procedures and earlier-stage growth in kidney cancer procedures, general surgery, gynecology, and thoracic. My name is Kari Krogstad. General surgery growth in the U.S. was strong, and in addition to the positive impact from patient backlogs, reflected increasing access for surgeons to our fourth-generation technology. Google's Women Techmakers program provides visibility, community, and resources for women in technology. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. Shares of Intuitive Surgical jumped as much as 9.8% on Wednesday to a record high of $891.15 after the robotic surgery company crushed first quarter earnings. Submit. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. (USD millions), considering 2021 as the base year . An investor who invested $10,000 in Warren Buffett's hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made . Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. From the low-end perspective, the 27% reflected there is greater summer seasonality that reflects the possibility of an impact due to pent-up demand for vacation, especially for healthcare workers that have worked extensively during this period with COVID. As customers continue to upgrade to fourth-generation capabilities, the population of installed SIs is decreasing, particularly in the U.S. were 110 trade-ins were completed in the second quarter, leaving an installed base of SIs of approximately 500 systems. China continued the strength that we've seen over the last couple of quarters. And U.S. general surgery, in particular, performed well. . To change your e-mail options at Copyright 2023 Intuitive Surgical. Da Vinci systems offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. In Q2, U.S. procedures grew 77% year over year, which equates to 16% on a two-year . Intuitive Surgical, Inc. ISRG recently announced preliminary results for fourth-quarter and full-year 2021. In the second quarter, we modified the useful life of a deferred-tax asset, which resulted in a current charge to pro forma income. We continue to see significant utilization variance by region due to pandemic differences. I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. Intuitive Surgical, and Verb Surgical, among other countless innovations. We think we can bring some outstanding imaging capabilities, including florescence imaging into that space. The compound annual revenue growth rate between the second quarters of 2019 and 2021 was 15%. Yeah. [Operator Instructions] As a reminder, today's call is being recorded. I'm just curious from what you see out there, is this broadly reflective of what you think is going on in the marketplace for surgical procedures? Again, if you look across that two-year period, try to look through the pandemic kind of ups and downs, what we're seeing is that procedure demand is there. 3 min read. Our flexible robotics program, first targeted toward diagnostic bronchoscopy, has had a strong quarter. It has been. We're taking a first-principles approach to return-to-office environments with our team, bringing back face-to-face interactions for those tasks best completed in person while enabling hybrid work environments for tasks that are well accomplished by distributed teams. your options for e-mail notification, please enter your e-mail address below and click Just a couple of comments. The Motley Fool recommends Johnson & Johnson and recommends the following options: long January 2022 $580 calls on Intuitive . Q2 2022 INTUITIVE Earnings Conference Call. Leasing as a percentage of total sales lag has and will continue to fluctuate with customer and geographic mix. This press release contains forward-looking statements. And our posture to that has been -- it may delay some sales as we may have some competitive conversations and tenders, and we'll lose some. And so we'll spend there. Where are we going with this one? Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., and non-GAAP EPS exclude items such as intangible asset charges, re-measurement of contingent consideration, SBC and long-term incentive plan expenses, excess tax benefits or deficiencies associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfer of non-inventory assets, which are primarily recurring items.