Intuitive announces first quarter earnings

Intuitive announced financial results for the quarter ended March 31, 2024.

Q1 highlights

• Worldwide da Vinci procedures grew approximately 16% compared with the first quarter of 2023.
• The Company placed 313 da Vinci surgical systems, compared with 312 in the first quarter of 2023.
• The Company grew its da Vinci surgical system installed base to 8,887 systems as of March 31, 2024, an increase of 14% compared with 7,779 as of the end of the first quarter of 2023.
• First quarter 2024 revenue of $1.89 billion increased 11% compared with $1.70 billion in the first quarter of 2023.
• First quarter 2024 GAAP net income attributable to Intuitive was $545 million, or $1.51 per diluted share, compared with $355 million, or $1.00 per diluted share, in the first quarter of 2023.
• First quarter 2024 non-GAAP* net income attributable to Intuitive was $541 million, or $1.50 per diluted share, compared with $437 million, or $1.23 per diluted share, in the first quarter of 2023.
• In January 2024, the Company obtained CE mark certification for the da Vinci single-port (SP) surgical system for use in endoscopic abdominopelvic, thoracoscopic, transoral otolaryngology, transanal colorectal, and breast surgical procedures. The Company plans to commercialize the SP system in select major European countries throughout 2024 as part of a measured rollout strategy. During the first quarter of 2024, the Company placed 8 da Vinci SP systems in Europe.
• In March 2024, the Company obtained FDA clearance for da Vinci 5, its next-generation multi-port robotic system, for use in all surgical specialties and procedures indicated for da Vinci Xi, except for cardiac and pediatric indications as well as one contraindication related to the use of force feedback in hysterectomy and myomectomy procedures.
• During the first quarter of 2024, the Company placed 8 da Vinci 5 systems.
• In March 2024, the Company received National Medical Products Administration (“NMPA”) regulatory clearance in China for its Ion endoluminal system.

Q1 financial summary
Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release.

First quarter 2024 revenue was $1.89 billion, an increase of 11% compared with $1.70 billion in the first quarter of 2023. The higher first quarter revenue was driven by growth in da Vinci procedure volume and an increase in the installed base of systems.

First quarter 2024 instruments and accessories revenue increased by 18% to $1.16 billion, compared with $0.99 billion in the first quarter of 2023. The increase in instruments and accessories revenue was primarily driven by approximately 16% growth in da Vinci procedure volume and approximately 90% growth in Ion procedure volume as well as higher pricing, partially offset by customer buying patterns.

First quarter 2024 systems revenue was $418 million, compared with $427 million in the first quarter of 2023. The Company placed 313 da Vinci surgical systems in the first quarter of 2024, compared with 312 systems in the first quarter of 2023. The first quarter 2024 da Vinci surgical system placements included 159 systems placed under operating lease arrangements, of which 94 systems were placed under usage-based operating lease arrangements, compared with 131 systems placed under operating lease arrangements, of which 62 systems were placed under usage-based operating lease arrangements in the first quarter of 2023. Additionally, the first quarter 2024 da Vinci surgical system placements included 8 da Vinci 5 systems.

First quarter 2024 GAAP income from operations increased to $469 million, compared with $388 million in the first quarter of 2023. First quarter 2024 GAAP income from operations included share-based compensation expense of $156 million, compared with $141 million in the first quarter of 2023. First quarter 2024 non-GAAP* income from operations increased to $630 million, compared with $535 million in the first quarter of 2023.

First quarter 2024 GAAP net income attributable to Intuitive Surgical, Inc. was $545 million, or $1.51 per diluted share, compared with $355 million, or $1.00 per diluted share, in the first quarter of 2023. First quarter 2024 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $111 million, or $0.31 per diluted share, compared with $23 million, or $0.06 per diluted share, in the first quarter of 2023.

First quarter 2024 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $541 million, or $1.50 per diluted share, compared with $437 million, or $1.23 per diluted share, in the first quarter of 2023.

The Company ended the first quarter of 2024 with $7.32 billion in cash, cash equivalents, and investments, a decrease of $21 million during the quarter, primarily driven by capital expenditures, partially offset by cash generated from operations.

Impact of Covid-19 pandemic
The first quarter of 2024 did not reflect any procedure volume disruptions from Covid-19. During the first quarter of 2023, in January, the Company saw Covid-19 resurgences impact da Vinci procedure volumes in China, with a recovery during February and March. Additionally, we believe that the high patient treatment backlogs that developed during the Covid-19 pandemic contributed positively to the 2023 procedure volumes, as those patients returned for diagnosis and treatment. Covid-19 has had in the past, and could have in the future, an impact on the Company’s procedure volumes.

“The core measures of our business remained healthy this quarter, as we reached meaningful milestones across several parts of our business,” said Gary Guthart, Intuitive CEO. “We are pleased by feedback from our measured da Vinci 5 launch as well as the continued adoption of SP and Ion, and we remain focused on delivering the goals we share with our customers, including improving patient outcomes.”
MB Bureau