InMode - Q3 2022
October 27, 2022
Transcript
Operator (participant)
Good day, and welcome to the InMode third quarter 2022 earnings results conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your touchtone phone. To withdraw from the question queue, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Miri Segal, CEO of MS-IR. Please go ahead.
Miri Segal (CEO)
Thank you, operator, and everyone for joining us today. Before we begin, I'd like to remind our listeners that certain information provided on this call may contain forward-looking statements, and that the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please go to the investor relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to pass the call over to Moshe Mizrahy, Chairman and CEO. Moshe, please go ahead.
Moshe Mizrahy (Chairman and CEO)
Thank you, Miri, and to everyone joining us for Q3 2022 earnings call. With me today are Dr. Michael Kreindel, our co-founder and Chief Technology Officer, Yair Malca, our CFO, Shakil Lakhani, our President in North America, Dr. Spero Theodorou, our Chief Medical Officer, and Rafael Lickerman, our VP of Finance. Following our prepared remarks, we will all be available for Q&A session. We are pleased to report another record quarter, with revenue of $121.2 million, an increase of 29% compared to the same period last year. Additionally, we are happy to be back to gross margin of 85%. Despite our expectation that Q3 should represent summer slow quarter, demand for our innovative platforms remain strong around the world in Q3, and we expect this momentum to continue into next year.
Although physician and patient return to pre-COVID travel levels, people still visited clinics for treatment with our platform. Our Empower platforms for women health and wellness was especially successful in the third quarter, and we expect to continue to capture market share in this market going forward. A primary goal for InMode is to expand our presence in women health and in wellness space in general, and we are encouraged by our early success in this market. We believe InMode has proven an aesthetic company that's relying on strong technological offering can successfully evolve and expand into new and important market, such as wellness and quality of life improvement. We intend to continue this trend in the area of ophthalmology, ENT, and others. Our revenue continued to grow. The Morpheus8 is becoming the most popular minimally invasive device in the aesthetic category.
We're driving this growth through brand awareness strategies and more direct focus on the consumer. Our highly efficient sales team of more than 200 direct rep and 70+ distributors worldwide continue their excellent execution, with sales of capital equipment to represent 88% of our total revenue in the third quarter, while sales of consumable and services accounted for the remaining 12%. As our install base grow and we expand our market share, consumable and service will contribute a more significant portion to the revenue mix going forward. Hands-free devices represent 11% of total revenue, while non-invasive RFs and laser platforms accounted for 7%. These figures represent normal level in our revenue mix.
Moving to our international operation, third quarter sales outside the U.S. accounted for $39.8 million or 33% of sales, a 26% increase compared to Q3 last year. InMode now operate in total of 80 countries. Our recently opened subsidiary in Italy is already very successful, and we are planning to establish an additional subsidiary in Europe and one in Asia in 2023. During the third quarter, InMode successfully launched EvolveX and EmpowerRF in Asia as we continue to see growing demand from Europe, Asia, and Latin America. In addition to our active pipeline of new technology, we are also exploring potential acquisition that would complement our presence in the wellness market. This could be companies with an established track record and an existing customer base in the U.S. and globally.
In summary, we are proud to deliver another record quarter, and we believe this position, this positive momentum will continue. Now, I would like to turn the call over to Shakil, our President in North America. Shakil, please.
Shakil Lakhani (President of North America)
Thanks, Moshe, and everyone for joining us. Once again, we are pleased to report another record quarter with continued momentum bolstered by a growing demand, as well as more frequent use of our technology. Sales from consumables and services remained at high levels due to the growing use of InMode's platforms. Sales in North America continue to be the main contributor to our total revenue across all platforms. Total revenue generated this quarter amounted to $91.9 million. As we look forward, this market is positioned to remain the leading growth driver for InMode. As Moshe mentioned, we have seen great success and extensive market acceptance of our EmpowerRF platform in the third quarter. In fact, we previously projected total sales from this platform to be $30 million for the year. However, we've already surpassed that number.
When it comes to the Morpheus8 technology, we are seeing that it is becoming one of the most popular aesthetic procedures in the market. As part of our efforts to invest resources in raising InMode's brand awareness among patients and physicians, we announced that Eva Longoria, the award-winning actress, director, and producer, will be InMode's global brand ambassador. Our ongoing commitment to investing in brand awareness by engaging with select brand ambassadors and gaining recognition by world-renowned celebrities, is something we plan to continue to do in the future. Lastly, I'd like to thank our entire North American team for their continued hard work. I will now hand over the call to Yair for a review of our financial results in more detail. Yair.
Yair Malca (CFO)
Thanks, Shakil, and hello, everyone. Thank you for joining. Starting with total revenue, InMode generated $121.2 million in the third quarter of 2022. A 29% year-over-year increase with a gross margin of 85% on a GAAP basis. Breaking this down, we see sales of the minimally invasive and subdermal ablative technologies in the third quarter grew 43% year-over-year to 82% of our quarterly revenues. Of the total sales in Q3, 67% came from the U.S. and 33% came from the rest of the world, compared to 66% and 34% respectively for the same quarter in 2021. Of our international contributors, Canada, Europe, and Latin America were the biggest markets driving our growth rate. Our Q3 non-GAAP gross margin remained strong at 85%.
We are holding to our long-term gross margin target of 83%-85%. However, as global supply chain challenges persist, we may see a potential short-term implication for our gross margins. Moving on, capital equipment in the third quarter represented 88% of total revenue, while consumables and service revenues accounted for the remaining 12%. GAAP operating expenses in the third quarter were $48.7 million, a 38% increase compared to Q3 in 2021. Sales and marketing expenses increased to $43.1 million in the third quarter, compared to $30.8 million in the same period last year. This increase is attributed to hiring more sales representative, increasing our presence in the U.S., and emphasizing our penetration strategy for new products.
Next, we look at share-based compensation, which increased to $7.9 million in the third quarter of 2022, compared to $3.2 million in the third quarter of 2021. On a non-GAAP basis, operating expenses reached $41.4 million in this quarter, compared to a total of $32.3 million in the same quarter of 2021, representing a 28.1% increase. GAAP operating margin was 44% in Q3 of 2022. Non-GAAP operating margin for the third quarter of 2022 was 51%, similar to the same period last year. Looking at GAAP diluted earnings per share for the third quarter, we saw an increase to $0.58 compared to $0.52 per diluted share in Q3 of 2021.
Non-GAAP diluted earnings per share for this quarter was $0.66 compared to $0.55 per diluted share in the third quarter of 2021. Once again, we ended the quarter with a strong balance sheet. As of September 30th, 2022, the company had cash and cash equivalents, marketable securities, and deposits of $486.4 million. This quarter, InMode generated $45.6 million from operating activities. Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2022. Revenues between $445 million-$450 million. Non-GAAP gross margin between 83%-85%. Non-GAAP income from operations between $214 million-$217 million. Non-GAAP earnings per diluted share between $2.28 and $2.30. I will now turn over the call back to Moshe.
Moshe Mizrahy (Chairman and CEO)
Thank you, Yair. Thank you, Shakil. Operator, I believe we're ready for Q&A.
Operator (participant)
Thank you. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touchtone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw from the question queue, please press star then two. At this time, we will pause momentarily to assemble our roster. Our first question comes from Kyle Rose with Canaccord Genuity. Please go ahead.
Kyle Rose (Managing Director and Senior Medical Technology Analyst)
Great. Thank you very much for taking the questions, and, you know, congrats on another strong quarter. You know, the biggest thing I wanted to start on was just, you know, overall health of the consumer and what you're seeing on a procedural basis. I mean, I think there's a lot of worry out there just with the impacts of inflation and, you know, macroeconomic volatility on just maybe not what's happening right now, but what's gonna happen over the course of the next, you know, six to nine months from a potential recessionary impact. What are you seeing from your customers both on the capital side as well as, you know, underlying demand for procedures?
Moshe Mizrahy (Chairman and CEO)
Hi, Kyle. That's Moshe. I will answer it, and then I'll let Shakil to add. Basically in the last quarter, we did not feel there was any recession or not even a slowdown. It was a very strong quarter, especially if you take into consideration that this is a summer quarter, and as you know, summer quarter in aesthetic is not the best one. Not just because doctors and patients are taking vacation and are not available for treatment, but also because people don't want to get you know, aesthetic treatment during the summertime, especially not in Europe and also Latin America.
This quarter, we were surprised it was very strong, even compared to the third quarter of 2021 or the second quarter of 2022. So far we don't see any recession, and we don't see a slowdown. We see the momentum continue. I'll let Shakil to complement my answer and, maybe tell you a little bit about what's going on in North America.
Shakil Lakhani (President of North America)
Yeah, absolutely. Thanks, Moshe. Yeah, same thing, Kyle. We haven't seen anything on the capital side affecting the business or being detrimental to us in any which ways. You know, as Moshe mentioned, Q3 is typically a little slower than most quarters, at least historically speaking. We definitely did not experience that, which is very encouraging. From the consumer standpoint, I'll actually toss that over to Spero. I think he might be able to shed some color there for you. Spero?
Spero Theodorou (CMO)
Sure. Great questions. Obviously, we talk to our offices every day across the country, and we have not seen any dip in customer demand. It's important to point out that what initially was thought as a COVID bump is not really just a COVID bump. 1/3 of new patients coming into practices actually never had plastic surgery before. This is a paradigm shift, and we're seeing those types of patients coming to the offices that have finally considered to do what they wanted to do, in the past were not part of that group. We feel confident for the time being and as far as the future is concerned. I don't see the demand slowing anytime soon.
Kyle Rose (Managing Director and Senior Medical Technology Analyst)
Great. Then, you know, Moshe or Yair, I think, you know, historically you've always kind of messaged, you know, absolute growth year-over-year as kind of being, you know, in the $50 million range. I think that range might have increased a bit, you know, when you recently moved into women's health. It just levels out our expectations, you know, moving forward. Should we still think about this as an absolute floor on a revenue growth perspective as $50 million-$75 million a year? Or how should we think about that moving forward?
Moshe Mizrahy (Chairman and CEO)
Well, in 2021 compared to 2020, I think the growth was above $150 million. We went up from $206 million-$258 million, so it's about 100, more than $150 million. This year, with the new target that we gave, with the new target for full year, which is around $450 million, and we hope to do a little bit more, hopefully the growth will be around $100 million. Basically, when we gave a target, or a guidance of $50 million growth a year, that was when the company was $150 million or $100 million or maybe $200 million during the COVID time.
Right now we are this year, if we will end up above $450 million, it's not the same company. It's double the size. We have a better portfolio. We're entering new categories, which very successfully. If you recall, we gave a target for EmpowerRF for the women health at the beginning of the year. We said it will be $20 million, and then we raised it to $30 million, and now we're raising it to $40 million. We are doing our best, and I believe that the success in the women health, which is a totally different category, it's also aesthetic, but it's a totally different medical community, and we're very encouraged. I would say that growing with, you know, 20% a year from now on is a good target for you to put in your model.
Kyle Rose (Managing Director and Senior Medical Technology Analyst)
Thank you. The last question, and I'll hop back in queue, is just, you know, obviously, you know, everyone's seen the impact of Hurricane Ian at the end of the Q3 and to start the Q4. Obviously that's concentrated in, you know, one region of the country. But I just wanted to think, how should we think about that as an impact to the Q4? I mean, is it a headwind because, you know, you're losing days and you've got machines down? Or does it potentially pull forward some capital placements given, you know, you've got new locations that might need to, you know, upgrade or replace? Thank you.
Moshe Mizrahy (Chairman and CEO)
Shakil, can you answer it?
Shakil Lakhani (President of North America)
Yeah, sure. No, Kyle, we don't see any effect.
Kyle Rose (Managing Director and Senior Medical Technology Analyst)
Thank you for taking the questions.
Operator (participant)
Our next question comes from Matt Taylor with Jefferies. Please go ahead.
Matt Taylor (Managing Director and Senior Equity Research Analyst)
Hi guys. Thanks for taking my question. Can you hear me okay?
Moshe Mizrahy (Chairman and CEO)
Yeah.
Matt Taylor (Managing Director and Senior Equity Research Analyst)
Great. All right. I had a couple. I guess I wanted to ask you know, women's health has really done well this year in the first year of launch, and I know you're really careful about how you're launching it. I was hoping to get your thoughts on how that franchise could evolve over the next couple years. You know, I know you probably won't give numeric targets, but if you could just frame the size of the opportunity, I think that would be really helpful for investors.
Moshe Mizrahy (Chairman and CEO)
Oh, Matt, I didn't understand the question. Opportunities of what?
Shakil Lakhani (President of North America)
Of EmpowerRF.
Moshe Mizrahy (Chairman and CEO)
Of EmpowerRF?
Spero Theodorou (CMO)
Yeah.
Moshe Mizrahy (Chairman and CEO)
Spero, I believe that's a question that you should answer.
Spero Theodorou (CMO)
Sure.
Moshe Mizrahy (Chairman and CEO)
Regarding who do we sell now and who do we sell in the future.
Spero Theodorou (CMO)
Sure. Matt, you know, excellent question. Here's how we look at EmpowerRF. When we enter these practices, for example, gynecologists, right? They're not used to marketing. They don't know how to do cash-based procedures. So going to these practices with a solution that's within their scope of practice, such as stress urinary incontinence and mixed urinary incontinence and so forth, is very, very important. Because at that point, we're able to tell gynecologists, "Look, you already have these patients in your office. They're already coming in. The solutions out there are not great. So we have a solution for these patients that you do not have to go out there and market. These are existing patient population." That alleviates a lot of the anxiety for them purchasing capital equipment.
However, we're still an aesthetics company, so on the same platform, once we go in, we're able to introduce aesthetics to this group, and that's a big winner for us because it increases our, you know, our TAM in this respect. As far as the future is concerned, we have a lot of confidence right now because we have a lot of data that we're getting back over the year and thousands of patients being treated. What we're seeing is, consistently across the board, we're seeing that the overactive bladder or mixed urinary incontinence segment, we're getting really good results. Surprisingly so, 'cause it's a very tough segment, as you know. The ability to disrupt that segment for the future is a big deal.
As you know, it's a large market opportunity, and we're investing a lot of time and effort and research into trying to figure out the details and the cost for this. But on the clinical level and the experiences, the gynecologists and urogynecologists and family practitioners out there are ecstatic. We're very, very optimistic for the future. We're taking it very seriously, but at the same time, we're not forgetting that we're still an aesthetics company. That's important to balance that aspect. Does that answer your question, Matt?
Matt Taylor (Managing Director and Senior Equity Research Analyst)
It does. I guess I just had one follow-up on this, Spero. You know, it's interesting to see kind of the pull-through strategy there. Could you frame how much pull-through you're getting? So how much is that resonating with these OB-GYNs to do more? What's the attach rate of getting actual aesthetics beyond the women's health?
Spero Theodorou (CMO)
It's surprising. You know, we've engaged with some of the larger institutions for a lot of the research we're doing. Your typical gynecologist, you know, having experienced so many different types of treatments for stress urinary incontinence and mixed, is not necessarily receptive off the bat, right? They'll say, "Okay, well, let's just see how this works." Interestingly so, because of the market pressures on these groups, with the insurance reimbursement, they're dying to see how they can get cash-based procedures in their office. The switch to aesthetics is seamless. I'm talking about, you know, this is happening at research institutions and academic institutions, so you can imagine what happens on non-affiliated groups, out there.
That's even the pressure is even higher. They're demanding that we teach them these things immediately. They're not waiting to see results on the stress urinary incontinence, on the medical aspects. Yes, we have a long runway. You know, the GYNs, with 40,000 GYNs across the country, so we have a long way to go, but we're very encouraged at this point. Does that answer your question, Matt? Did I understand it correctly?
Matt Taylor (Managing Director and Senior Equity Research Analyst)
Yeah. Sure. That's great.
Spero Theodorou (CMO)
Okay. Great. Thank you.
Matt Taylor (Managing Director and Senior Equity Research Analyst)
I have one follow-up to you. I mean, Moshe, I heard you talking about the 20% growth, which is encouraging. You know, I think a lot of investors are a little worried about recession, and I was hoping maybe you could talk about, you know, the differences between this recession and the last one and maybe frame, you know, are you seeing any impact yet from recession, and how do you think about the impact it could have on your business based on where you are in your life cycle?
Moshe Mizrahy (Chairman and CEO)
Well, Matt, as we discussed before, we don't see any recession yet, not even a slowdown. I read an analysis made by your bank that the recession probably will start on the third quarter of 2023. We're not there yet. It's a full year from today. It depend how what kind of recession it will be. If it will be something similar to 2008, I'm sure that, you know, we will get hurt a little bit as well. The fact that we're coming with the new technologies and a new market will help us. Because I believe that if a doctor has five different lasers and he's now in the middle of recession and he will not buy a new laser.
He might buy a new technology like minimally invasive, like Morpheus, like, you know, FaceTite or NeckTite, because he can come up with the different procedures to his customer base. That will help us overcoming. At the same time, you know, we have a very strong balance sheet, so we have enough resources to overcome any recession or any slowdown and get even stronger after that. Because during recession, when you are strong and you have the ability to invest, and you don't have to cut down in order to save and cut expenses in marketing, people, et cetera, you're getting stronger when the recession, you know, will end.
Eventually the recession will end, whether it will start on the third quarter or in the middle of next year. We prepare ourselves, but we don't cut down. We double down on R&D, we double down on marketing. You know, this year we're spending twice as much direct to consumer and twice as much marketing in the U.S. and in the other world, we continue to establish subsidiary. Although, you know, when you establish a subsidiary on the first year or the second year, it costs you more than the profit that you're generating.
We believe that there is no reason why we should stop, and we will continue to do it. Therefore, I would say that we don't have a special strategy for the recession time. We will continue business as usual. Even if revenue and profit will go down a little bit, it will not hurt us, and we will come stronger after that.
Shakil Lakhani (President of North America)
Hey, Matt, it's Shack here. Just to add to that real quick. You know, I also think, you know, the famous saying, right? Where there's chaos, there's opportunity, as we've seen historically in previous recessions. A lot of the other, you know, as Moshe mentioned, are the strength of our balance sheet. You know, a lot of the competition or people that are in the space or playing in the space, you know, they are many of them are not fortunate enough to be in a position that we built ourselves to be in.
I do think also that, you know, the staying power for our brand, the staying power for our technology, and the staying power for the consumer awareness that we're creating and we will continue to create is a big thing. I think that'll filter out some other people increasing, you know, our TAM overall and also, you know, our penetration into different markets that we're also currently looking at with R&D.
Moshe Mizrahy (Chairman and CEO)
Yeah. If you recall, Matt, in the beginning of 2020 when the COVID started, we were the only company who decided not to fire and not to lay off people because we decided that we don't want the talent to leave the company like other company did. You know, when the market came back in July, August 2020, we were very strong and we capture market share, and 2021 was the, I would say, as far as growth, was more than 70%. This is only because we kept everything and we continue business as usual. We have the resources, and that's the strategy that we will implement.
Matt Taylor (Managing Director and Senior Equity Research Analyst)
Got it. Thanks, Moshe. Thanks, Theodorou. Thanks, Shack.
Spero Theodorou (CMO)
Thanks, Matt.
Shakil Lakhani (President of North America)
Thanks, Matt.
Operator (participant)
Our next question comes from Jeff Johnson with Baird. Please go ahead.
Jeff Johnson (Managing Director and Senior Research Analyst)
Thank you. Good morning, guys. You know, I wanted to focus maybe, Moshe, if I could, on this emerging focus maybe on wellness. You know, our checks would suggest, I think Morpheus8 is really helping to fuel that move into the wellness side. I don't know if that's because aestheticians can do this procedure. You don't necessarily have to have direct involvement from the physician, if that's it or what else it is. You know, maybe help us size that market kind of the wellness market. We focus so much on the surgical derm and the plastics market, but maybe help us size the wellness market, maybe where your penetration is right now in that market, where it could go over time, and then maybe a couple follow-up questions on that. Thank you.
Moshe Mizrahy (Chairman and CEO)
Well, the wellness market is new to us. When I said wellness market, we do not mean spa market. Although, yes, we want to get into the spa market in Europe, not in the U.S., because Morpheus8 is a doctor business, it's not a nurse business, and not, doctor cannot dedicate that in the U.S. and not in many other countries. The only platforms today that enable us to get into the wellness and improve quality of life is the EmpowerRF. Because the EmpowerRF is not pure aesthetic. It's some aesthetic, of course, and aesthetic gynecology, but also treatment which are like, treating SUI, vaginal contraction, OAB, et cetera. When we said wellness, we mean medical wellness and not spa wellness.
We want to do the same, for example, with ENT, snoring, sleep apnea, improving quality of life in the doctor clinic, but only by doctors, not by aestheticians and not by, you know, paramedical staff. I think that's important to understand. Every platforms that we will develop, gynecology, ENT, ophthalmology, will include some hand pieces that will enable them to do aesthetic, medical aesthetic, and also to do something special for them. For example, in the ophthalmology, we intend to bring to the market the platforms which can treat the dry eye in addition to periorbital wrinkles, full face, you know, skin rejuvenation, et cetera. But that, when we said wellness and improve quality of life, doesn't mean it's not medical. It's a pure medical.
Jeff Johnson (Managing Director and Senior Research Analyst)
Okay. That's helpful, and thanks for clearing that up. I guess the follow-up on that is when you talk about potential M&A in the wellness space, you would mean the same thing more on the medical side?
Moshe Mizrahy (Chairman and CEO)
Of course. Absolutely.
Jeff Johnson (Managing Director and Senior Research Analyst)
Okay. Yeah, and then the last one, just to kind of bring it all that together is just, you know, Morpheus8, we're hearing more and more about that. Now, I'm almost hearing more about that even than, like, AccuTite, BodyTite, FaceTite, things like that. I mean, are we going into, you know, a part of the market here where patients are getting purely a Morpheus8 procedure and not getting the, you know, AccuTite or BodyTite on top of that kind of. You know, I'd say a year ago, our checks would suggest you do an AccuTite or a BodyTite and then an overlay of Morpheus8. But it almost sounds like more recently there's been an even a move towards even less invasive and just doing Morpheus8. Is that right? And how does that help the company?
Moshe Mizrahy (Chairman and CEO)
I mean, Spero, can you answer that?
Spero Theodorou (CMO)
Yeah.
Moshe Mizrahy (Chairman and CEO)
I think you have.
Spero Theodorou (CMO)
Sure. Jeff, it's important that we differentiate a little bit about our, how our Morpheus8, what it entails, right? Most companies did radiofrequency microneedling in the past, and they focused on the face. We were the first ones to introduce Morpheus to the body. Now, the skin is the largest organ in the body, so you can imagine the opportunity that has opened up. Within Morpheus, we have a body contouring Morpheus handpiece, and that seems to be growing tremendously fast because of the fact that a lot of the plastic surgeons are using it in conjunction with BodyTite and AccuTite, you correctly described. As far as the press is concerned, we're spending a lot of money on consumer advertising as well. Longoria had Morpheus. All these things contribute to the public awareness of it.
It happens to be a very, very effective tool in our armamentarium. As far as procedures are concerned, yes, Morpheus is not just a standalone, although it's definitely increasing as a standalone, but is an adjunct to everything else. We found in our research and our studies that when you combine Morpheus with BodyTite or AccuTite, it certainly increases tightening. We have the scientific data to back that up as well. Does that answer your question, Jeff?
Jeff Johnson (Managing Director and Senior Research Analyst)
It does. Last one, I'm sorry to belabor this, but what percentage maybe, Moshe, of your boxes out there in the U.S. or even globally have a Morpheus8 handpiece? I would assume that's a, you know, a fairly easy upgrade to add to it if I've got BodyTite, FaceTite, AccuTite kind of already on the box to add a Morpheus8 handpiece. Is that kind of what's helping drive the revenue here, is going back to those installed systems and adding Morpheus8?
Moshe Mizrahy (Chairman and CEO)
I believe we gave the breakdown. We said 88% of our platforms are surgical and ablative. Almost each one of those platforms, which combine FaceTite, AccuTite, NeckTite, EmbraceRF, BodyTite, and Morpheus. It's always come with the Morpheus. Because most doctors today, when they do FaceTite or NeckTite, they combine it with Morpheus. Almost every doctor. Every doctor that I meet, and I'd just been yesterday in a conference in Tel Aviv, Israel, and they talked very loudly about it. That they do a lot of Morpheus following NeckTite, FaceTite, AccuTite, treatment of the eyelid as a complementary to FaceTite. But more than 85% of our platforms in the surgical contain or include the Morpheus, either body or face.
Jeff Johnson (Managing Director and Senior Research Analyst)
All right. That's helpful. Thank you.
Operator (participant)
The next question comes from Joseph Conway with Needham. Please go ahead.
Joseph Conway (Equity Research Associate)
Hi, guys. This is Joseph on for Mike. Just two quick ones, I guess. Looking into 2023, was wondering if we could get maybe an expectation of new product launches. I know we have Envision on the horizon, whether that will be at the end of this year or the beginning of next year. If you could maybe talk about some of the new products that InMode is expecting to release in 2023, that'd be great. Thanks.
Moshe Mizrahy (Chairman and CEO)
Well, I don't know. I'm sure you noticed, but right now, Q4 2022, we have launched what we call the Morpheus8 Body 3D, which is, you know, an upgrade for the Morpheus8 Body. Next year, it will be Envision and the second generation of EvolveX, which is a hands-free device for the face.
Joseph Conway (Equity Research Associate)
Okay, great. I don't think I heard you guys give it, but if it'd be possible to give an update on the installed base for platforms in the U.S. and then rest of world.
Moshe Mizrahy (Chairman and CEO)
Well, we don't give a breakdown of the install base, but currently we have about worldwide 15,500 system, and in the US, 7,300 system. I would say that, you know, you can take the same ratio of our revenue mix, and these are the same, as far as the mix between surgical and nonsurgical.
Joseph Conway (Equity Research Associate)
Okay, great. Yeah, that's very helpful. Maybe lastly, just looking at EmpowerRF. When could we expect maybe published data of EmpowerRF being used in one of these overactive bladder conditions?
Moshe Mizrahy (Chairman and CEO)
Spero?
Spero Theodorou (CMO)
Yeah, sure. We have a couple publications in press, and we have an ongoing study with overactive bladder. With overactive bladder, we have to be very careful to draw conclusions as you know, the nature of it is definitely multifactorial in some aspects. We're going nice and slow and steady.
We know on the ground it's having a huge effect on the urgency frequency symptoms which are typical of it, are decreasing or going away completely in a lot of these patients. We're encouraged by that. You know, figuring out how and when and this happens is our focus. In progress, we certainly have what we've done so far, and part of that's mixed issue-wise. Hopefully before the end of the year, we'll have something we can send you.
Joseph Conway (Equity Research Associate)
Okay, great. Yeah, thanks very much. Congrats on a great quarter.
Spero Theodorou (CMO)
Thanks a lot.
Operator (participant)
This concludes our question and answer session. I would like to turn the conference back over to Moshe Mizrahy, InMode's Chairman and CEO, for closing remarks.
Moshe Mizrahy (Chairman and CEO)
Thank you, operator. Again, thank you everybody. To all of our shareholders, I want to thank all of our employees worldwide, who gave a lot of effort during the third quarter to make it another record. I'm sure we will do the same on the fourth quarter. We have 437 people employed by the company worldwide. We added something like 75 people from the beginning of the year, and we continue to hire as we are growing.
By the way, I'm sure it's very important to say, you know, having $450 million revenue with 437 people, this is more than $1 million per employee, which is typical to software and not to hardware. We managed to do it. We managed to go back to 85%. Again, very hard work of our logistics, supply chain, manufacturing team. We will grow close to $100 million this year. Again, thanks to all of our salespeople, distributors in North America and elsewhere. Again, thank you, everybody, and we'll see you again within three months. Thank you.
Operator (participant)
The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.