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. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. Fourth quarter 2022 revenue was$1.66 billion, an increase of 7%compared with$1.55 billion in thefourth quarter of 2021. So I'd encourage those folks on the call, it's likely to be a comparison of ecosystems in delivering the Quad Aim over time. Investors interested in listening to the conference call may do so by accessing a live and archived webcast of the event at www.neuropace.com, on the Investors page in the News & Events section. Investors have assigned a high trading . We anticipate iterating our approach as we learn and the year progresses. From a market perspective, about 60%-ish or so are sleeves, about 15% are revisions. (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. That said, other teams are out. So I wouldn't start building lots of leverage into your models. 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. Yeah, sure. The meta-analysis combined 18 studies across different countries containing over 11,000 patients, of which just over 5,000 received da Vinci robotic-assisted thoracic surgery and just over 6,000 received VATs. The increase in cash in the second quarter primarily reflected cash from operations and stock exercises. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. We placed 20 Ion systems in the quarter, bringing the installed base to 70 systems. Clinical trial sites completed enrollment for our PRECIsE clinical trial. With regard to income tax, we expect the range of our second-half 2021 pro forma tax rate to be between 21% and 22% of pre-tax income, slightly higher than the range we provided on the last call, reflecting a higher mix of U.S. income. The next page will display a menu of options. The fourth quarter 2021 system shipments included 143systems shipped under operating lease and usage-based arrangements, compared with 120 systems in thefourth quarter of 2020. Calvin Darling -- Senior Director of Finance, Investor Relations. We ended the quarter with cash and investments of $7.7 billion, compared with $7.2 billion last quarter. Our actual tax rate will fluctuate with changes in the geographic mix of income, changes in taxation made by local authorities, and with the impact of one-time items. Intuitive Announces Fourth Quarter Earnings, Intuitive Announces Preliminary Fourth Quarter and Full Year 2022 Results, Intuitive becomes largest robotic-assisted surgery provider to be accredited by the Royal College of Surgeons of England, Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, J.P. Morgan Healthcare Conference 2023 Presentation, Q3 2022 INTUITIVE Earnings Conference Call. We kind of outlined what was assumed in the high end of the procedure guidance. Senior Director-Finance & Investor Relations: Julian N. Nikolchev: Senior VP-Corporate Development & Strategy: Last quarter, we forecast 2021 procedure growth of 22% to 26%. Ion system placements and procedures are excluded from our overall system and procedure counts. Later we will have a question-and-answer session. Submit. The Company defines non-GAAP income from operations as income from operations, excluding intangible asset charges, certain acquisition-related items for the re-measurement of contingent consideration, SBC and long-term incentive plan expenses, and litigation charges and recoveries. We placed an additional 20 Ion systems in the quarter, bringing the installed base to 70. Investor's Business Daily . And we also see, I think, increased patient confidence is a function of the improving vaccination rates. Pagination. Jamie Samath Senior Vice President Finance. Intuitive Surgical (ticker: ISRG ) reported an adjusted fourth-quarter profit of $1.30 a share, beating forecasts for $1.28 a share, on sales of $1.55 billion, which topped expectations for $1.52 . Now that the dust . What we've seen, though, is that what happens in the PowerPoints and what happens a year later is different. Our technologies include the da Vinci surgical system and the Ion endoluminal system. To the extent that hospitalizations expand significantly due to COVID and its variants, like currently being experienced in parts of the world, it could negatively impact da Vinci procedures. - building a financial model and investor presentation for fundraising . Or any color you can provide on that? At the time you receive a -- by the time you're at -- that market penetration rates that are significant. 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. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Companys business. Intuitive Surgical, and Verb Surgical, among other countless innovations. The system features an ultra-thin, ultra-maneuverable catheter that allows navigation far into the peripheral lung and provides the unprecedented stability necessary for precision in biopsy. your options for e-mail notification, please enter your e-mail address below and click The decrease relative to these prior periods reflects geographic mix and volume discounts provided to customers purchasing multiple systems. Fourth quarter 2022 non-GAAP* income from operations decreased to $530 million, compared with $583 million in the fourth quarter of 2021. 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. 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. There are a number of limitations related to the use of non-GAAP measures versus measures calculated in accordance with GAAP. It's physically demanding. Hong Kong. It's hard to have a precise measure on it. And we've received feedback -- positive feedback from surgeons who have indicated that system access has been a key driver for increased procedures. And with that, I'd like to turn it over to Jamie. The supply issues we called out in the first quarter did not impact Ion placements and procedures in this quarter. Investors are cautioned not to place undue reliance on such forward-looking statements. Listen to Webcast. For important safety information, indications for use, risks, full cautions, and warnings, please refer to www.intuitive.com/safety. Hospitalizations of patients due to COVID have negatively impacted da Vinci procedures. (6) Diluted net income per share includes the effect of the following items: Gains (losses) on strategic investments, net of tax, Less: net income attributable to noncontrolling interest in joint venture. But I don't have scientific evidence. First quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $413 million, or $1.13 per diluted share, compared with $427 million, or $1.17 per diluted share, in the first quarter of 2021. 20, 2021Corporate Participants: Philip Kim Head of Investor Relations. In this Backstage Pass video, which aired Sept. 29, Motley Fool contributor Brian Withers shares his thoughts on Intuitive Surgical, highlighting the metrics investors need to watch when the . Maybe just at the beginning of your comments, I was struck that you emphasized that da Vinci utilization rates are, if I understood you correctly, at the high end of historical averages. Based on market data, we believe that diagnostic pipelines in the U.S. began to recover from the impact of the pandemic in March, with a lag in the recovery of associated procedures. We believe value creation in surgery and acute care is foundationally human. Mai 2022: CI. To make the world smarter, happier, and richer. any time, re-enter your e-mail address and click Submit, then adjust your form entries. And I guess why won't that continue? We look forward to talking with you again in three months. Fourth quarter 2021 instruments and accessories revenue increased by 13% to $843million, compared with $747million in the fourth quarter of 2020, primarily driven by approximately 19% growth in da Vinci procedure volume, partially offset by stocking orders in the prior year associated with the Companys launch of Extended Use Instruments. All Rights Reserved. It's a highly penetrated laparoscopic indication in the United States. Q2 growth was driven by particular strength in benign procedures, including bariatrics, hernia repair, cholecystectomy, and benign hysterectomy, reflecting in part, we believe, a partial catch-up in these procedures related to the previous deferral of elective surgeries. The Motley Fool owns shares of and recommends Intuitive Surgical. We think we stand up pretty well to those comparisons, and we're ready to help them pursue their aims as the year proceeds. INTUITIVE SURGICAL, INC.-14.33%: 79 654: BOSTON . The Motley Fool recommends the following options: long January 2022 $580 calls on Intuitive Surgical and short January 2022 $600 calls on Intuitive Surgical. All Rights Reserved. You may automatically receive Intuitive Surgical financial information by e-mail. 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. Or is it too early, and you're just saying that might happen in the future? And Jamie, as to kind of where we are. So bariatric obviously has been highly laparoscopically penetrated historically. We expect pro forma other income, which is comprised mostly of interest income, to total between $50 million and $55 million in 2021. The impact of the COVID-19 pandemic on the Companys business has, and continues to, differ by geography and region. While there is likely some amount of backlog that has not yet been addressed, it is difficult to estimate the extent of the remaining backlog and when it will affect future procedure growth. Those things are ongoing now. On the capital side, new system placements continue to be healthy, with the United States, China, Germany, France, and Japan, notable in the quarter. In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. Procedure growth in the U.S. was led by bariatric cholecystectomy and hernia procedures. The call will be webcast by Nasdaq OMX and can be accessed on Intuitives website at www.intuitive.com or by dialing (877) 692-8955 using the access code 5830756. Fourth quarter 2022 GAAP income from operations also included litigation charges of $21million. We know that new system placements are closely tied to anticipated procedure volumes and system utilization in mature markets. Good afternoon. I've had the privilege of seeing Intuitive develop the use of robotics in multiple clinical indications over the years. The Company defines non-GAAP gross profit as gross profit, excluding intangible asset charges and SBC and long-term incentive plan expenses. Let me start with why I think it's adopting, and I'm going to turn to Jamie as to where -- what inning of the baseball game are we in, I'll let Jamie take that. In Q2, we launched our SureForm stapling line in India. Email: [email protected]. 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. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. INTUITIVE at 2022 Wells Fargo Healthcare Conference. 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. The pandemic has reordered the quarter in which procedures were performed, and we believe it has delayed some procedures that are likely to return in the future and may cause a small number of patients to permanently forgo surgery. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. And those two things come together, they also allow hospitals to start to address the backlog that's accumulated. I think that's what's been driving our success in the early market. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. It also reflects lower diagnostic pipelines and perhaps some reluctance for patients to visit hospitals. your options for e-mail notification, please enter your e-mail address below and click Ion is Intuitives robotic-assisted platform for minimally invasive biopsy in the lung. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. ET. These programs together trained over 2,200 care team members in the quarter, showing organizational strength and localizing programs, and responding with agility to pandemic-influenced demand. any time, re-enter your e-mail address and click Submit, then adjust your form entries. We also believe that growth benefited from some procedures that were previously deferred due to delays in testing and patient concern over COVID. Our focus right now is not rapid expansion of the installed base. 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. 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. Intuitive Surgical Investor Relations. We continue to see significant utilization variance by region due to pandemic differences. We're OK. We're not frightened of that. Listen to Webcast. In reporting the results, adjusted using a propensity weighted approach, the authors noted that during the two- to four-week standard of care visit period, fewer patients report the need to take prescription pain medication for the robotic cohort as compared to the laparoscopic and open cohorts: 65.2% for the robotic cohort as compared to 78.8% for the laparoscopic cohort, compared to 79.8% for the open cohort. We have a broad range of estimates. 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 amortization of intangible assets, 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. We don't actually know how much backlog was resolved in the quarter, how much backlog is left or the timing of the recovery of that might be. However, to gain a more complete understanding of the body of evidence, we encourage all stakeholders to thoroughly review the extensive detail of scientific studies that have been published over the years. Copyright 2023 Intuitive Surgical. In the U.S., procedures that are dependent on diagnostic pipelines also grew, albeit at lower rates as compared to benign procedures. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. Intuitive Surgical has been witnessing an upward estimate revision trend for 2021. Fourth quarter 2022 instruments and accessories revenue increased by 12% to $941 million, compared with $843 million in the fourth quarter of 2021. Copyright 2023 Intuitive Surgical. The Company excludes the excess tax benefits or deficiencies associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the on-going results of its core operations. And that is both painful and an opportunity. We could see one large competitor approved in the second half of this year. 2021 Proxy Statement - Special Meeting 224.6 KB. 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. So that's a multi-quarter conversation. Extended use instruments were introduced into the U.S. and Europe in the fourth quarter, in most other markets in the first six months of this year, except China due to regulatory timelines. 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%. First cases in our SP colorectal IDE trial were completed in the quarter as we seek to bring SP capability to additional procedures. And we're early in the Ion product cycle, and we're early in the SP or early mid in SP. That will play out over the next several quarters as we accrue patients. Rick Wise -- Stifel Financial Corp. -- Analyst. That's helpful, Gary. I think that's anecdotal. Intuitive Surgical Asensus Surgical . Second-quarter system average selling prices decreased to $1.55 million from $1.65 million for both the second quarter of 2020 and the first quarter of 2021. Congrats on the quarter. (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. The painful part is the investment troughs are deep in the early and middle years of those product cycles. We will now open the call to your questions. The tax effects of the non-GAAP items are determined by applying a calculated non-GAAP effective tax rate, which is commonly referred to as the with-and-without method. And so we're going to continue to invest. Utilization of clinical systems in the field, measured by procedures per system, increased approximately 55% compared with last year and increased 11% compared with last quarter. Fourth quarter 2022 GAAP income from operations included share-based compensation expense of $129 million, compared with $120 million in the fourth quarter of 2021. ET. We think there is an opportunity to accelerate learning and to drive increased insight for a surgeon into their own progress. We think there's an opportunity to look at correlations between surgeon performance and outcomes. Transitory was out a few years ago and CMR has been out and now Medtronic. The higherfourth quarter revenue was driven by growth in da Vinci procedure volume, partially offset by a decline in system placements and foreign currency impacts. The high end of the range assumes strength in U.S. general surgery, a return to normalized diagnostic pipelines, the vaccines are effective against any new COVID-19 variants and the vaccine rollouts in OUS markets continue as currently expected by governments around the world. We are also working on our regulatory filings to bring SP to Europe under the European Union's new medical device regulation framework. Non-GAAP gross profit. Just to be clear on your answer to Tycho's question. To choose Now turning to the clinical side of our business. [Operator Instructions] As a reminder, today's call is being recorded. any time, re-enter your e-mail address and click Submit, then adjust your form entries. Marshall, the operating margin coming in at the 43%, I'm just wondering how much we can extrapolate here? We're doing that as a combination of My Intuitive plus some of the simulation work that we do, plus some of the machine learning and video analysis work that we do. And I think for a subset of the benign procedures that have been kind of deferred elective procedures, hospitals can recover those pretty quickly. 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. Starting with procedures. Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. Fourth quarter 2021 non-GAAP* income from operations increased to $588 million, compared with $535 million in the fourth quarter of 2020. 2021 Intuitive Sustainability Report 7.8 MB. Fourth quarter 2021 revenue was$1.55 billion, an increase of 17%compared with$1.33 billion in thefourth quarter of 2020. Intuitive Surgical -Export management Iqm selezione - 07.2021 . Finally, our team is making good progress in scaling our operations. Plan to attend GIANT 2022. 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. And as competition progresses in various markets, we will likely experience longer selling cycles and price pressures. The Motley Fool has a disclosure policy. Taken together, this combination of a recovery in procedures and healthy utilization supports our solid capital placement trends and rounds out a healthy commercial recovery year to date. There appears to be some. Bringing it all together. The Company defines non-GAAP income from operations as income from operations, excluding amortization of intangible assets, SBC and long-term incentive plan expenses, litigation charges and recoveries, and a gain on the sale of a business. I will also summarize our GAAP performance later in my prepared remarks. In the U.S., as COVID continued to subside in the second quarter of 2021, we saw a lower impact on da Vinci procedures. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. And that has implications for the kind of imaging we do, it has implications for task analysis and training, and we're doing those things, and those can be aggregated across a surgical platform. The compound annual revenue growth rate between the second quarters of 2019 and 2021 was 15%. The study contains 371 patients that underwent an incisional hernia repair procedure across 17 institutions within the United States between May 2016 and September 2019. Yeah. Fourth quarter 2022 GAAP income from operations decreased to $373 million, compared with $450 million in the fourth quarter of 2021. 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? Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. But as you heard in our prepared comments, a significant increase in hospitalization is not reflected in the guidance range. as can be seen with the more than 29,000 peer-reviewed scientific articles that reference Intuitive technologies. . Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, Q3 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 2022 Wells Fargo Healthcare Conference, Q2 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference, INTUITIVE at BofA Securities 2022 Healthcare Conference, Q1 2022 INTUITIVE Earnings Conference Call. We think about digital as enabling and accelerating a lot of different parts of the ecosystem. So it takes a while. Are you seeing any impact thus far? And finally, expanding our clinical, economic, and analytical evidence base for key procedures and countries. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 12%. The company strives to make surgery more effective, less invasive and easier on surgeons, patients and their families. It's taking getting the advanced instruments, put them together as a set, getting our workflows and our clinical pathways right, and I think that's been powerful to date. I'll now turn the time over to Marshall to take you through our financial performance in greater detail. Incredible returns through ups and downs. Trade-in activity can fluctuate and be difficult to predict.
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