We did not repurchase any shares in the quarter. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. Yes. In the United States, procedure growth was strong in the quarter, driven by growth in bariatric surgery, hernia repair, and cholecystectomy. All Rights Reserved. First, we are broadening access to our advanced instruments for our da Vinci Fourth Generation Multiport Systems through pursuit of additional clearances and launches outside the U.S. Second, we are expanding our da Vinci SP offering by broadening its regional and clinical indications and by adding it to its suite of instruments and accessories. SUNNYVALE, Calif., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Intuitive (the "Company") (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended December 31, 2021.Reported revenue and procedure results are consistent with the Company's press release issued on January 12, 2022. Having said all of that, it's been a short period since they've had extended use instruments. Doctors talking to us about further expansion of utilization. Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., net income per diluted share attributable to Intuitive Surgical, Inc., and diluted shares are reported on a GAAP and non-GAAP* basis. I guess first question on guidance. 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. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery. Building a great robot is a hard first step. Here's Why You Should Invest in Intuitive Surgical (ISRG) Now So it's hard to time it out, and it doesn't time out over one or two quarters, it times out over years. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. It last split in October of 2017. I think the thing that we'd call out is it's not the case rates per se to monitor. To choose Jamie Samath Senior Vice President of Finance That said, other teams are out. I think our customers will take their time to evaluate new things as they go. The adjustments between pro forma and GAAP net income are outlined and quantified on our website. The Company defines non-GAAP gross profit as gross profit, excluding amortization of intangible assets and SBC and long-term incentive plan expenses. Presentation: Operator. It's a short period, but we believe that there is elasticity, and we've seen elasticity in markets where reimbursements are very low. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems . 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. Calvin Darling -- Senior Director of Finance, Investor Relations. Without excluding these tax effects, investors would only see the gross effect that these non-GAAP adjustments had on the Companys operating results. Mark the "Pitching to Investors Programme" on the 7th December 2022 in your calendar! We could see one large competitor approved in the second half of this year. And -- but right now, I think that remains to be seen how strong those other systems are. During the second half of 2022, the Company saw COVID-19 resurgences impact da Vinci procedure volumes in China. INTUITIVE SURGICAL, INC.UNAUDITED QUARTERLY CONDENSED CONSOLIDATED STATEMENTS OF INCOME(IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED TWELVE MONTHS ENDED CONDENSED CONSOLIDATED STATEMENTS OF INCOME(IN MILLIONS, EXCEPT PER SHARE DATA), INTUITIVE SURGICAL, INC.UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS(IN MILLIONS), INTUITIVE SURGICAL, INC.UNAUDITED RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES(IN MILLIONS, EXCEPT PER SHARE DATA), Contact: Investor Relations(408) 523-2161. And U.S. general surgery, in particular, performed well. Listen to Webcast. I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. Intuitive Surgical Dives To 8-Month Low; Why It Could Still Outperform So I think those are the key kind of procedure highlights. The supply issues we called out in the first quarter did not impact Ion placements and procedures in this quarter. It flows from respect for and understanding of patients and care teams, their needs, and their environment. [Operator instructions] And for our first question, we will go to Tycho Peterson. 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. 3.5 Leading Players of Laparoscopy Surgical Robotic System and Consumables by Type in 2021 3.6 Conclusion of Segment by . These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. 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. Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). Thoracic Surgery Market was valued at USD 3.1 Billion in 2021, and it is expected to reach a CAGR of 7.18 % . OK, great. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. 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. 20, 2021Corporate Participants: Philip Kim Head of Investor Relations. And that is both painful and an opportunity. Is Intuitive Surgical Stock Still Worth Buying Hand Over Fist in 2023? 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. 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. Intuitive | ISRG for Investors And we've seen both good clinical outcomes, but also high surgeon satisfaction and better ergonomics. Fourth quarter 2021 revenue was$1.55 billion, an increase of 17%compared with$1.33 billion in thefourth quarter of 2020. So energy and stapling and other things, we think that is possible. 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. Intuitive develops, manufactures and markets the da Vinci surgical system. - Received full travel grant to attend Google I/O 2019. The charge associated with the deferred-tax asset and a higher mix of U.S. income drove the 25% current quarter pro forma rate. Good afternoon. Intuitive Surgical's Q3 2021 adjusted earnings per share (EPS) is expected to be $1.22 per Trefis analysis, slightly above the consensus estimate of $1.17. There are several models of the da Vinci Surgical System. Intuitive Surgical Stock Looks Attractive After Its Recent Fall - Forbes So I wouldn't start building lots of leverage into your models. In other words, happy, very satisfied customers. I think what we're seeing is that the longer diagnostic pipelines have had this kind of double effect from the pandemic. Buy These 2 Stocks in 2023 and Hold for the Next Decade, 2 Growth Stocks to Buy Before the Big Bull Rally, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. 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 . In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. We also saw an increase in our IDN customers opening new da Vinci and Ion programs in hospitals within their network that did not previously have an Intuitive robotics program, indicating their interest in diversifying access to Intuitive programs across their networks. Leasing and alternative financing arrangements enable customer access to capital. 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. It's the impact on hospitalizations. ET. 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. Marshall, the operating margin coming in at the 43%, I'm just wondering how much we can extrapolate here? Or any color you can provide on that? The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. ISRG stock analysts called for adjusted profit of $13.40 per share and $5.33 billion in sales. 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. 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. We anticipate iterating our approach as we learn and the year progresses. We ended the quarter with cash and investments of $7.7 billion, compared with $7.2 billion last quarter. Fourth quarter 2021 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $477 million, or $1.30 per diluted share, compared with $434 million, or $1.19 per diluted share, in the fourth quarter of 2020. I think the noise levels will go up. Finally, our team is making good progress in scaling our operations. The increase in cash in the second quarter primarily reflected cash from operations and stock exercises. Intuitive Surgical Stock - TipRanks.com During 2022, the impact of the COVID-19 pandemic on the Companys business has differed by geography and region. 2021 Intuitive Sustainability Report 7.8 MB. And as competition progresses in various markets, we will likely experience longer selling cycles and price pressures. Some of them are included in our service contracts, some of them are on a per-use basis. I think that's anecdotal. Jamie will discuss procedure and clinical highlights and provide an update of our financial outlook. Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. Our overall second-quarter procedure growth was 68%, compared to a decline of 19% during the second quarter of 2020, which reflected a significant adverse impact from the COVID-19 pandemic. I'll speak to my impression, but I caveat it, it's one person's impression. A reconciliation between our pro forma and GAAP results is posted on our website. Intuitive | Robotic Surgery Conference | 360 Program - Intuitive Surgical Copyright 2023 Intuitive Surgical. INTUITIVE at 2022 Wells Fargo Healthcare Conference. Procedure growth drives capital purchases in many of our markets. Intuitive has managed multiple ways of working for many years. And so we'll spend there. The Company uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. any time, re-enter your e-mail address and click Submit, then adjust your form entries. (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. We expect these programs to continue their ramp as our labs and development programs recover efficiency. Customer appreciation and recurring use of our products has been growing nicely. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. The Companys calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. So bariatric obviously has been highly laparoscopically penetrated historically. 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 (ISRG) Q2 2021 Earnings Call Transcript Procedure growth in the U.S. was led by bariatric cholecystectomy and hernia procedures. The Safety Communication issued on August 20, 2021 by the FDA, is specific to the use and study of robotic-assisted surgery in mastectomy. 3 Reasons to Buy Intuitive Surgical, and 1 Reason to Sell Investors are cautioned not to place undue reliance on such forward-looking statements. 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. (ISRG) Q1 Earnings and Revenues Beat Estimates Jamie Samath Senior Vice President Finance. SUNNYVALE, Calif., Jan. 24, 2023 (GLOBE NEWSWIRE) -- Intuitive (the Company) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended December31, 2022. Intuitive Surgical's Q1 2021 adjusted earnings per share is expected to be $2.72 per Trefis analysis, over 3% above the consensus estimate of $2.63. Intuitive Surgical (ISRG) Posts Robust Preliminary Q4 Results Intuitive Surgical Investor Presentation. My name is Kari Krogstad. Fourth quarter 2021 non-GAAP* income from operations increased to $588 million, compared with $535 million in the fourth quarter of 2020. Today's press release and supplementary financial data tables have been posted to our website. In Europe, procedure growth varied by country based on the relative impact of and recovery from the pandemic. COVID-19 has had, and may continue to have, an adverse impact on the Companys procedure volumes.