InMode reports revenue dip, plans share repurchase

YOKNEAM, Israel - InMode Ltd . (NASDAQ:INMD), a global provider of medical technology currently trading significantly below InvestingPro’s Fair Value estimate, disclosed its financial results for the fourth quarter and the entire year of 2024, revealing a decrease in revenue but a strong return of capital to shareholders. The company announced that it had returned $285.4 million to shareholders through share repurchases in 2024, demonstrating management’s aggressive share buyback strategy highlighted as one of several key insights available on InvestingPro.

For the fourth quarter of 2024, InMode reported GAAP revenues of $97.9 million, a 23% decline from the $126.8 million recorded in the same period of 2023. The full year revenue for 2024 stood at $394.8 million, marking a 20% decrease from the previous year. Despite the revenue dip, the company’s gross margins remained robust at 79% for the quarter and 80% for the year, maintaining its impressive historical gross profit margin of 81.6% over the last twelve months.

InMode’s net income for the fourth quarter was $82.8 million, or $1.14 per diluted share, compared to $55.2 million, or $0.64 per diluted share, in the fourth quarter of 2023. For the full year of 2024, GAAP net income was $181.3 million, or $2.25 per diluted share, a slight decrease from the $197.9 million, or $2.30 per diluted share, reported in 2023.

The company’s balance sheet remains strong, with a total cash position of $596.5 million as of December 31, 2024. According to InvestingPro data, InMode maintains excellent financial health with minimal debt, a current ratio of 10.7, and liquid assets significantly exceeding short-term obligations. InMode also reported a substantial tax benefit, recording a deferred tax asset of $55.1 million due to the release of a valuation allowance on its U.S. net deferred tax assets.

Looking ahead, management provided a financial outlook for 2025, expecting revenues between $395 to $405 million, non-GAAP gross margin between 80% and 82%, and non-GAAP earnings per diluted share between $1.95 to $1.99. This guidance comes as InvestingPro analysis shows the company maintaining strong profitability metrics, including a return on equity of 21% and an attractive free cash flow yield. Subscribers can access 8 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

InMode’s Board of Directors has approved a new tax-efficient share repurchase program of up to 10% of the company’s total shares outstanding, expected to be executed within the next three to six months. This program, combined with the 2024 repurchases, represents approximately 27% of the company’s share capital to be bought back within a 15-month timeframe.

CEO Moshe Mizrahy acknowledged the impact of industry headwinds and broader macroeconomic challenges on the fourth quarter results but expressed confidence in the company’s market position and innovation pipeline, including the launch of two new platforms in 2025 targeting medical aesthetic and wellness markets. CFO Yair Malca emphasized the strength of InMode’s balance sheet and the company’s commitment to enhancing shareholder value through careful capital allocation.

The information in this article is based on a press release statement from InMode Ltd.

In other recent news, InMode Ltd. faced significant developments in its financial performance. The company’s revenue declined by 15% over the last twelve months, with analysts projecting a further 20% decrease for the current year. Despite this, InMode maintains a strong cash position of approximately $640 million, with no debt, and an impressive profitability with an 81.6% gross margin. The company’s preliminary full-year 2024 revenues were reported between $394.0 million and $394.5 million, falling short of its previously issued guidance range.

The company also provided a fiscal year 2025 revenue outlook, projecting a range of $395 million to $405 million, suggesting a modest growth of 0.1% to 2.8%. InMode announced management changes to align with market conditions and ensure employee safety in Israel. Amid these developments, Canaccord Genuity and Needham maintained a Hold rating on InMode due to the revenue shortfall.

DOMA Perpetual Capital Management LLC, a major shareholder of InMode, issued a letter to InMode’s Board of Directors, advocating for an immediate tender offer for 30% of the company’s shares and an additional 10% share buyback in 2025. The firm’s recommendations aim to restore investor confidence in light of recent challenges. These are the latest developments in the company’s financial performance.

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