InMode at 24th Needham Conference: Navigating Market Challenges

On Tuesday, April 8, 2025, InMode Ltd (NASDAQ: INMD) participated in the 24th Annual Needham Virtual Healthcare Conference. The company addressed ongoing market challenges, such as high interest rates and declining consumer confidence, while showcasing its commitment to innovation and strategic growth in the aesthetics market. Despite difficulties, InMode remains focused on expanding product capabilities and exploring new market opportunities.

Key Takeaways

• InMode continues to face market challenges, including high interest rates and reduced consumer confidence.
• The company is focused on expanding existing platforms and developing new products.
• A disciplined approach to mergers and acquisitions remains a priority.
• InMode has aggressively repurchased nearly 30% of its outstanding shares over the past year.
• The company expects its 2025 revenue to be similar to 2024, around $400 million.

Financial Results

• Revenue Expectations: InMode anticipates 2025 revenue to mirror 2024, approximately $400 million. Seasonal patterns are expected to normalize, with Q1 representing 20% of annual revenue and Q3 accounting for 25%.
• Share Repurchase Program: The company has repurchased nearly 30% of its outstanding shares over the past year, with a 10% annual buyback plan to mitigate Israeli tax implications.
• Pricing: Device and platform prices remain stable, despite market saturation in the laser industry.
• Gross Sales: Sales in 2024 were approximately $100 million less than in 2023.

Operational Updates

• Installed Base: InMode currently operates 28,000 to 29,000 systems worldwide, with a US base of around 12,000 systems. Annually, 4,000 to 5,000 systems are deployed.
• Product Updates: New platforms like Optimus Max and Ignite are replacing older systems. The Solaria CO2 laser has seen strong sales, leading to a backlog.
• Market Penetration: InMode believes the US market can accommodate 60,000 to 70,000 systems in the long term.
• New Indications: The company is pursuing FDA approvals for new indications, such as overactive bladder and dry eye treatment.

Future Outlook

• Guidance: 2025 performance is expected to be similar to 2024.
• Product Strategy: InMode is focused on expanding indications for existing platforms and launching new ones, contingent on market recovery.
• M&A: The company remains open to accretive acquisitions in several healthcare sectors.

Q&A Highlights

• Macro Environment: High interest rates and decreased consumer confidence continue to challenge the market, impacting physician customers.
• Regional Performance: Western Europe shows better signs than North America, while Latin America faces exchange rate issues.
• Replacement Cycle: InMode observes a trend of customers trading old systems for new ones at discounted prices.

InMode's detailed strategy and market insights are available in the full conference transcript.

Full transcript - 24th Annual Needham Virtual Healthcare Conference:

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Afternoon. Thanks for joining us again at the twenty fourth Annual Needham Healthcare Conference. I'm Mike Matson. I lead the MedTech and Diagnostics Equity Research Team at Needham and Company. I'm pleased to introduce InMode.

Presenting from InMode today, have CEO Moshe Mizrahi and CFO Yair Malca. Instead of a standard presentation, we are going to do a q and a session. If you do have questions that you would like to ask, you can submit them electronically through the Neon website conference website that is, or feel free to email them to me at mmatson@neonco.com, and I will do my best to fit them in. So with that, we're gonna go straight into the questions here. So, you know, I know that there's it's been a kind of a really tough environment for InMode and aesthetics more broadly.

So maybe we can just start out by getting your latest view of kind of the the macro environment with things like interest rates, financing availability for your customers. You know, I I know rates have kind of come down a little bit, but I don't know if that's filtered through to the the rates that your customers are seeing. Just trying to get a feel for kind of where things stand right now.

Moshe Mizrahi, CEO, InMode: Well, thank you, Matt, Mike. The first quarter of twenty twenty five is a continuation of what we experienced in 2024. We don't see yet improvement. And therefore, I mean, as we gave guidance for 2024 and we said it will be similar to 2024 '20 '20 '5 will be similar to 2024, We believe that that's that's what's happening. The fact that we see some kind of new inflation does not help reducing interest rate and and does not help reducing interest rate for capital equipment, which is a leasing vehicle.

And therefore, the leasing interest rate is still high. The fact that the stock exchange crashed a little bit did not help because doctors looking on the stock exchange and they realize they lose money. And maybe they can delay buying equipment for $100,000 and more. Q1 was not something that we can say that we see the light at the end of the tunnel. We don't see it yet.

We work hard. Unlike other companies, we decided to keep the team, and we are not laying off anybody, not in the sales, not in marketing, not in R and D, continue to develop the the regular project. And and I believe that the only thing we can say is that we need to wait.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. And just as far as, you know, so that question was aimed kind of more at the the physician customer or, I guess, you know, clinician customer base. But, you know, the other thing that's happened is consumer confidence has gotten a bit worse. And so, you know, what about, like, the demand, the the the kind of patient demand for for these procedures?

I mean, are you seeing that getting worse, or is that, you know, kind of the same as it was early you know, late last year?

Moshe Mizrahi, CEO, InMode: Well, consumer confidence went down in the last two months, and and this is not helping the doctors and not helping us. We don't see reduction of, the the numbers of treatment are not coming down, but we don't see increase in the numbers of treatment taking into consideration that we added more capital to the market, more equipment, more machines. So the total volume of disposable in q one is quite similar to 24 as, like like platforms and and and the rest. It's doctors are still seeing patients, but we need to say, that the treatment of in mode are much more expensive than treatment of typical laser for skin rejuvenation hair removal. If a typical tray typical laser trade treatment is about 3 to 4 or maybe $500, We're dealing here with the Morpheus or body type, face type or the new Quantum.

We're talking about 3 to $5,000 per treatment. So so this is a little bit more difficult for people to decide, especially when the consumer confidence is down and the market is is in the slowdown. And that also does not help the doctor to make decision that they want to buy now. Once we start seeing reduction on the interest rate, and and that will lead to reduction of the interest rate for capital equipment on leasing packages. It doesn't have to be back to 7.5% as it used to, but it will come down from thirteen, thirteen point five or maybe 14 gradually, and we see a trend, I think that will be the the beginning of a new momentum.

But unfortunately, due to the fact that we see some sign of inflation again, I don't see the interest rate coming down fast enough to affect us in the next quarter or two.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. And then just how much of this is sort of a global phenomenon versus just in The US? I mean, is it are you seeing any better trends in any of the, you know, key, you know, foreign regions you're operating in?

Moshe Mizrahi, CEO, InMode: The situation in Asia is similar to The US and in some country even worse. Canada, for example, the slowdown is, I would say, even even worse than the one in The US. Europe is depend on the country. In the Western Europe, I believe it's we see a better sign than what we see in North America. Latin America is still suffering from exchange rate situation.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. And then maybe if you just talk about you know, one thing I've wondered with InMo is, you know, you've sold a lot of systems over the years. Right? Your installed base is very large now.

Some of those systems have got to be, you know, getting older. So, you know, how old do you think the average, you know, unit is out there and how close I mean, is there a potential to see some sort of replacement cycle here where these things just get to a point where, you know, the doctors are just looking to to upgrade or replace them, and then that'll drive, like, a a new leg of growth?

Moshe Mizrahi, CEO, InMode: We have currently less than 30,000 system worldwide. I would say 28 between 28 to 29,000. We are deploying around four to 5,000 system every every year worldwide. So if you if if we take into account that we started to sell and to commercialize the product in 2016 when we got the first FDA. That mean that we're eight years wheel on the market.

And that's so the average device, the average is about, I would say, between three to four years old. The least package is for five years. We start seeing some doctor replacing the BodyTite with Ignite, the regular Optimas with Optimas Max. But that happened when the first lease is fully paid. And we're doing it.

Well, we we're taking the old system back from them, and we well, they they buy a new stuff, and we give them a discount from the old system, which we collect. Two reason for that. We don't want to see the system in the second market. And second, we bring them to Israel, and we refurbish them and sell them in some countries that they cannot afford paying the full price of Optimus Max or Ignite. So unlike the laser industry where 100% of their business is replacement, because just in The US, probably there are, I don't know, in between 60,000 to 75 or 80,000 devices active, laser equipment, we are not here or there.

We're not there yet. In The US, we have 12,000, maybe maybe maybe a little bit more than that. And we're still I don't want to say we're in the embryonic stage, but we're just entering the growth stage.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. So that that number is you're saying 60 to 70,000 laser machines. That's which is a more mature market. But you think that's the right that's the potential install piece that you could eventually reach with your systems

Moshe Mizrahi, CEO, InMode: over the long run? Absolutely.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay.

Moshe Mizrahi, CEO, InMode: Because doctors want something which they can charge more than just $300 per hair removal treatment. They want to do body and face reshaping. And in order to do it, they need to penetrate deep into the subdermal fat. The only energy that can do that is is a bipolar RF, which you can adjust and determine what is the level of depth that you want to enter either morpheus up to seven millimeter or body type, face type up to two centimeter. And the new Quantum, it's ranging between half a centimeter to two, two and a half centimeter.

So you need something a little bit minimally invasive that you can perform minimally invasive surgical procedure in the clinic under local anesthesia. And that's what what is that that's what what we developed. And the new platforms that we launched to the market last year in 2024, they ignite with the Quantum and with the new Morpheus Morpheus Burst and Morpheus Scale, I will explain in a second what are these two technologies, are are very successful. And they are replacing BodyTite, and they are replacing Renuvian, and they are replacing some competitor competition that doctors are not happy with because these are very old technology. Now, basically, we came to the market in the middle of twenty twenty four.

And, you know, we might maybe we did a mistake, two new products very very, I would say, sophisticated to the market in the middle of the slowdown. But I don't know. I'm sure you remember that in the second quarter of twenty twenty four, everybody was under the impression that the second half of twenty twenty four will start seeing the momentum and the slowdown. I don't want to say will disappear, but we'll see some some kind of movement. But it it didn't happen.

Yeah. And therefore, although the expectation from these two platforms were platforms were very high, we are not yet materialized all the potential. It will take some time, or maybe we'll we need to wait for a little bit better time. But the Quantum is a is a is a very unique product for skin tightening. It's basically single cannula, bipolar on a single cannula, which work on pulses and not continuous energy.

And you can and and and they they don't measure temperature. They measure impedance, which is much faster to react. And and therefore, it's safer than body tight and face tight. And today, the potential is high because of all the GLP one drugs for fat reduction or fat killing. At the end of the day, you have loose skin, and and quantum is the right this is the reason why develop we developed it.

It's the right, I would say, modality to treat loose skin after all kind of, you know, liposuction or or just fat fat fat reduction injection. The Morpheus, we developed two new features on the Morpheus. You can determine on one pulse going into three different depth. For example, if you want to go to the seven millimeter pulse and then wait went up a little bit, five millimeter and then three millimeter. Instead of punching the the skin three times, you punch it once and you deliver energy in three levels.

So you basically treat the skin all the way from the subdermal depth up to the epidermis. Now there's another technology that we've developed which called scale. You basically determine how much energy you want in each depth. You can say, okay. I want 50% of the energy in seven millimeter.

I want 30% on five millimeter and only 20% on the two millimeter depth in order to eliminate any possibility of of adverse effect, and it's worked just beautifully. We have a patent on it. It was protected. Also, the Ignite and the Quantum is protected, and we believe that these are the right replacement for the the the two old new techno old technology that we have. One is the BodyTite, the regular regular frequency assisted lipolysis, and the second one is the regular Optimus with the Optimus Max.

But the potential is high, and we need to materialize it. We we we're still waiting for the best time in order to invest additional marketing money and bring it to the market in a very, I would say, full scale.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. Just just back to something I asked before. I just wanna be clear on this. So the you know, you're saying you think there's potential to have 60 to 70,000 or, you know, somewhere around that number in The US of your system. So because, you know, 12,000, I mean, I guess I've been wondering, you know, 17,000 plastic surgeons, dermatologists.

I mean, is it it doesn't sound like you're worried about market saturation, I guess. I mean, that number of, you know, your core customers. I know there's other people that use the products like guide and and, you know, gynecologists and, you know, ophthalmologists and things like that.

Moshe Mizrahi, CEO, InMode: This is correct. We're we're not in a stage that we start worrying because of market saturation. And, you know you know, for example, when the market is saturated like the regular laser industry, you see prices are coming down. Inward prices are not coming down. And, of course, when we do a trade in, we recognize only less than the full price, but the prices of the system, of the platforms are stable.

We did not bring prices down. We did not raise it. We do raise some some when we come up with a new platforms like the Ignite and OptimusMAX, but we don't go back and raise prices on on on all the other Empower and Vision, you know, hands free, etcetera. And therefore, we don't see any situation yet. I mean, we believe the market is still capable to get at least twice as much as we did so far.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Alright. And, you know, the clearly, you know, Ignite and Optimus Max did did well in in 2024, you know, despite the market environment not being great. But, you know, I guess I've had some investors ask, hey. Is this is this something where, you know, they kind of launched it? It kinda ran its course in 2024, and, you know, now it's you know, you sold kinda got to a level and then it starts to level off.

Then the, you know, unit numbers of those are I guess what I'm getting at is do you think that this is kind of like a multiyear, you know, product cycle where, you know, it can ramp, you know, over multiple years? Or is it more of a situation, like, if I'm thinking back to, you know, Envision and Empower Empower, you kind of launched it, went up in maybe two years and then kinda flatlined after that.

Moshe Mizrahi, CEO, InMode: It can be hours. In a regular time in a regular time, you're right. We sell the first year is the launch year, and then we see a growth. And we show that in between 02/2018 to 02/2022 with less platforms in our portfolio, we grew very nicely until the second half of twenty twenty three. Right now, we believe that in 2025, the numbers of system that we will sell almost in every category will be similar to '24.

We're not we're not changing, and that's the guidance that we gave. And we see no reason to change it now. And basically, there are some the Optimus Max and the Ignite will sell more probably than last year. We will sell less body type and less Optimus. In 2024, we sold both version.

But right now, nobody wants to buy the body type or the the Optimus. They want the Optimus Max and the and the Ignite, which are the new technologies. And therefore, I believe the numbers of system that we will sell out of these two platforms will be at least as as high as 20 four.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. Got it. So I did have somebody emailed a question. You know, I wanted to try to ask this as best I can. So, essentially, you know, your commentary around the first quarter, and I say this knowing you got it preannounced, but, you know, the it sounds like things were kind of in terms of consumables and you know?

But I think you said something about similar trends. When you say similar trends, do you mean, like, similar kind of, like, a revenue or volume run rate, or do you mean, like, a like, a similar growth rate? In other words, like, you know, if growth was if sales were down last year, you're seeing similar trends. You mean it's playing it's, down or you're playing it's, like, flat, I guess. If you're not even comfortable answering, it's fine.

But

Moshe Mizrahi, CEO, InMode: No. The sales last year in 2024 was close to $100,000,000 less than 2023. We face it. I mean, that's

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: that's fair.

Moshe Mizrahi, CEO, InMode: And therefore, when we started 2025, we said we will not go back to 500. The guidance was 400 Yeah. $400,000,000, similar to '23. And, you know, plus minus, we believe that in 2025, that that that that the seasonality will go back to normal. And the the seasonality in this industry, everybody knows that, is 20% in the first quarter, '20 '5 percent in the third quarter, and then 20 and 30, 30 five percent on the last quarter.

That's the that's the seasonality, the regular seasonality for many years, and I'm and many years in this industry. I mean, last year, because of the war and because of back orders and because of many reason, the seasonality did not behave as it used to behave. And and therefore, in 2025, now the war is over and the factories are working fine, and we don't have any supply chain issue. We don't see why it will not go it will not go back to the same the same seasonality pattern as as we as we've seen in many years until until '24. But, you know, we'll we'll see.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. And then just you know, I mentioned Empower and Envision, but, you know, can you give us an update on on those products? I mean, are those was my characterization of those correct in the sense that they've kinda they grew for maybe two years and kind of flattened out, or are you still seeing growth there in terms of units or dollars?

Moshe Mizrahi, CEO, InMode: Every every platform, Mike, that we develop is a is a potential for new indication on the Empower. Okay? We're now working on two major indication. One is urine incontinence, which we have the indication from the FDA, but we would like to have it on another handpiece, and overactive bladder. Overactive bladder, it's, almost fifty percent of the women in the world has some kind of overactive bladder.

And today, the treatment is very tough on them. We believe and we did the pilot, and we just published an a public article on peer review with a pilot study on on overactive bladder using Morpheus 8z up to seven millimeter. That's that study was required by the FDA in order to get an IDE protocols to start the real study, pivotal study to get the indication. If we will be able to prove and to get the overactive bladder indication from the FDA using Morpheus on a seven minutes treatment, one treatment, then the Empower has a new life. Then the Empower become a new a new platform.

Although it's the same platform, the same hardware, the same RF, whatever. But now you have two new handpieces, two new indication, and much much bigger the entire medical aesthetic industry altogether. On the Envision, you know, we have the we have the same the same the same issue. We are submitting pre we submitted pre submission to the FDA to get approval on the protocol to run, a study, pivotal study for dry eye indication. Once we get the indication and we can claim that we are the only one in the world that treat with bipolar RS, dry eye, you know, dry eye treatment, then it will open another new life for the envision.

So the the idea is to develop a platform that you can add more indication in the future in order to in order to extend the life the life the lifespan of the product. Exactly the same with the Ignite. We're developing now two new handpieces to complement their portfolio handpieces of the Quantum. That's that's when I when we say we will bring we'll come up with two platforms, it doesn't have two new platforms, but it's two two new two two new lies, two new indication to existing platforms in order to to grow with the with the with the sales of of the product of these platforms and in addition to sell upgrade to existing users. That's basically the main idea behind all the research that we're doing right now.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. And just just to be clear, so on the the the women's health empower product, you know, you're the the you mentioned two handpieces, two indications. One was overactive bladder. The other one was incontinence. I guess I thought there was already, like, incontinence

Moshe Mizrahi, CEO, InMode: handpiece. We have we have incontinence with the Vetone. Have Oh, Vetone.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: So this is with this would be a Morpheus.

Moshe Mizrahi, CEO, InMode: This is with the Morpheus HV. Yes. Got it. Okay.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Alright. Okay. That, yeah, that makes sense. So you're what you're trying to do effectively is is just expand capabilities of existing platforms to try to, you know, bring new life to the to those and increase their appeal to to the customer.

Moshe Mizrahi, CEO, InMode: We've increased the numbers of indication that these platforms can can perform. And by the way, we we need always to remember, Mike, we are an aesthetic company, a medical aesthetic company. So every platforms that we will develop will have some aesthetic capability. Like, we're adding the for example, the Envision. The Envision has the Lumeca, which is a great IPL for full skin rejuvenation, not just for dry eye, pigmented lesion, vascular lesion, a little bit tightening, fine line.

And they have we're we're we're adding, the Morpheus, the regular Morpheus for face in addition to the former eye for the dry eye. So the doctor can enjoy both his medical specialty and also some some some new stuff or new, or new potential on on, on, on aesthetic. The same with the the same with Empower. The same with Empower. Yeah.

We're not we're not we're not building system with one modality. We try to extend the modality so it would be more versatile. And doctor today stuck with the reimbursement, which going down and down. They want to have some private money indication as well.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. And then, you know, in terms of aside from the things that you just talked about, I think you'd said on recent calls that you were going to launch two platforms in 2025. One was the c o two fractional c o two laser, and the other, I'm not sure. I don't think you'd ever disclose what the other one was.

I don't know if you can do that now, but I'm assuming it wasn't one of the things you just talked about in terms of the the the the gynecology products or not. Maybe it was. I don't know. But We have tell us what the other platform is or not yet?

Moshe Mizrahi, CEO, InMode: We we launched the the Solaria, which is Solaria? C o two. Okay? That's the name of the platform, the c o two. Fractional c o two, and it can also be continuous c o two, surgical and nonsurgical and ablative.

And and it's, I mean, it's it's a very nice product. Very nice product. Very simple, very basic, not very complicated. The market is saturated with c o two, and we sold many units in the first quarter in the first quarter. We didn't believe on the numbers.

We have a backlog now. We have a backlog. The other product, there are three alternatives, which I don't want to talk about them right now. But there are two three new new platforms that we're developing right now for three different indications. But we're in the last stage, and probably it will not be launched before we realize and we feel that there is some kind of start new momentum.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: So after the market starts to improve essentially, it's what you're saying? The the, you know,

Moshe Mizrahi, CEO, InMode: the Something toward the end of the year.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. No. That's fine. And just so c o two so the fractional c o two, I think if I recall correctly, you know, you just noted it's kind of a crowded margin, but I think there's some sort of synergies or something with some of the other procedures that's getting used with some of the other procedures that or or products that you guys make. Is is that the case?

And that's kinda why it's it's important to to to offer that.

Moshe Mizrahi, CEO, InMode: The c o two that we bring we brought to the market does not have the handpiece for Vaginal treatment. Only for static.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay.

Yair Malca, CFO, InMode: And if I may add, what we've seen in the market is the trend that many of our doctors, our our customers are combined Morpheus eight treatment with c o two laser when when they offer procedures to their patients. And we wanted, this doctor to buy everything from us, both the Morpheus8 and the c o two. And not just buying the Morpheus8 from us and then go to a competitor to buy a c o two laser. That's why we thought it would make sense for us to offer both.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. That I think that's what We we need to we need

Moshe Mizrahi, CEO, InMode: to say. I mean, the c o two laser, it's one modality. It's only c o two. We cannot add morphs to this platform. The doctor operate with two platforms in order to combine the treatment.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Yeah. I understand. Okay. And then, you know, we we're starting to run out of time here, so I did wanna make sure that we we get to the the tariff question.

So I think Israel has is it what is it? 17%. Seventeen %. One seven. What's that?

Moshe Mizrahi, CEO, InMode: 17%. Seventeen %.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: So, I mean, look. Who knows what's gonna happen? You know, it could go away. Hopefully, for everyone, goes away. But, you know, if if it does stay in place, I guess, you know, is there my understanding is you do most of your manufacturing there.

So, I mean, is there any possible workarounds or anything you could do? You know, could you raise prices? Could you move manufacturing somewhere? I mean, I don't know where you move it to in The US or something. But

Moshe Mizrahi, CEO, InMode: One thing we will not do, we will not move production to The US because it doesn't make sense to

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: us. Yeah.

Moshe Mizrahi, CEO, InMode: Fair enough. Yeah. I mean, we are we are not in a position to answer this question now, Mike, because we're still learning what is excluded, what is included. We know that medical devices are not excluded, but some part of software and others, which we can we can claim we have software and we're selling the software as well. It's not just the platform.

Software are excluded. I mean, exempt. And services are exempt, and we're giving a lot of services to North America. So we will do everything by the law. By the law, I want we're not we're not going to do anything to go around, but we will try to minimize it in the smart way.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. Alright. And then, you know, I guess the other topic that's gotten a fair bit of attention is just around, you know, the the balance sheet and the amount of cash you guys have and, you know, buybacks and so forth. And so I think you stated pretty clearly your your views on that with the the response to the the activist shareholder.

But, you know, so maybe just give us an update there. I think the plan is to kind of limit the buybacks to 10% a year because 10% of the outstanding shares per year just given the the tax implications in Israel. But am I am I summarizing that correctly?

Yair Malca, CFO, InMode: Yeah. You you so far, yeah, so far, I what we've done is to do up to 10% buyback a year because that was an easy decision for us to make up to this amount. The Israeli tax authority usually let you do whatever you want without any tax con consequences. Anything above that, this is something we we we need to discuss internally because it might be might have a similar tax implication as of distributing dividend. It's not like that we cannot do it.

We can, but then it's gonna be treated same as dividend. So now we need to decide if it's if they are treated the same, should we maybe consider dividend? So all the once once we conclude the first ten percent, all the other options are in the on the table, additional, buyback, maybe dividend. And, we don't forget for a second m and a. Again, assuming we're gonna complete soon the the buyback program that we announced earlier this year, that means that within practically a year, we acquired almost 30%, twenty seven % to be exact, of our outstanding share within a year.

So I think we we've done a pretty aggressive, share repurchase program so far, especially in the past year. I think, we we need to have a serious discussion of what what to do next. Obviously, it didn't help the share price, as you can see. But, nevertheless, we we have been very aggressive with the execution of the share repurchase, so far and especially in the past year. And we should discuss and continue how to proceed.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Okay. And you you did mention M and A. So, you know, maybe just give us your updated thoughts there. You know, what I mean, without being too specific. Right?

I mean, what would you look at other types of aesthetics equipment? Or I know in the past, you potentially talked about things like injectables, etcetera.

Moshe Mizrahi, CEO, InMode: Well, we gave we gave two offers. Both of them were injectables. One was filler and one was toxic. And we thought that the the price we offered was a great one because, you know, the only the way we calculated it is that it will be accretive by 1¢ within twelve months of the acquisition to the EPS. And apparently, it was rejected twice from both companies.

I don't know what is the what was the expectation, but apparently, we did not we did not meet the expectation. Right now, we're not active in m and a. We didn't hire a bank to help us. But if the opportunity will present itself, if it's interesting, not not only in aesthetic, also in gynecology, women health, ophthalmology, ENT, if we will find something that will help us to position ourselves in a competitive way in certain territory or in aesthetic, we will do it.

Mike Matson, MedTech and Diagnostics Equity Research Team Lead, Needham and Company: Yeah. Okay. Well, I mean, it's it's definitely encouraging maybe that you're, you know, being disciplined and sticking to your guns there in terms of trying to do something that's at least not dilutive. So or minimally accretive. Okay.

Alright. I think we're we're almost out of time, and I don't see any more questions from the viewers. I think we're gonna have to wrap up there. But thank you, guys. Appreciate it.

I hope you had some good meetings at the conference.

Moshe Mizrahi, CEO, InMode: Thank you very much. Thank you.

Yair Malca, CFO, InMode: Thank you.

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