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    Intuitive Surgical Inc (ISRG)

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    Intuitive Surgical, Inc. develops, manufactures, and markets advanced surgical systems designed to enable minimally invasive care . The company offers the da Vinci® surgical systems and the Ion® endoluminal system, generating revenue from their sale and lease, as well as from recurring sales of instruments, accessories, and services . Intuitive Surgical also provides a portfolio of learning offerings and digital solutions, although these do not currently generate material revenue .

    1. da Vinci® Surgical Systems - Comprises a surgeon console, a patient-side cart, and a high-performance vision system, facilitating minimally invasive surgeries.
    2. Ion® Endoluminal System - Includes a system cart, a controller, a catheter, and a vision probe, designed for minimally invasive endoluminal procedures.
    3. Instruments and Accessories - Offers a range of instruments and accessories with limited lives that require regular replacement, contributing to recurring revenue.
    4. Service Contracts - Provides service contracts typically entered into at the time of system sale or lease, ensuring ongoing support and maintenance.
    5. Learning Offerings and Digital Solutions - Delivers a portfolio of educational and digital solutions, although these currently do not generate significant revenue.
    NamePositionStart DateShort Bio
    Gary S. Guthart, Ph.D.Chief Executive Officer and Board MemberApril 1996Gary S. Guthart, Ph.D., joined Intuitive Surgical, Inc. in April 1996. He was promoted to President in July 2007 and appointed as Chief Executive Officer in January 2010. Dr. Guthart has been a member of the Board of Directors since 2009. Before joining Intuitive, he was part of the core team developing foundation technology for computer-enhanced surgery at SRI International .
    David J. RosaPresident and Board MemberMarch 1996David J. Rosa joined Intuitive Surgical in March 1996 and has held various leadership positions in engineering, clinical development, marketing, and product development. He was promoted to Senior Vice President, Emerging Procedures & Technology, in April 2011, and later transitioned to Senior Vice President, Scientific Affairs. In May 2023, Mr. Rosa was promoted to the role of President .
    Mark P. BrosiusSenior Vice President and Chief Manufacturing and Supply Chain OfficerDecember 2012Mark P. Brosius joined Intuitive Surgical in December 2012 as Director of Equipment Engineering. He was promoted to Senior Director of Production Instrument Engineering in August 2014, and then to Senior Director of New Product Introduction in June 2015. In May 2023, Mr. Brosius was promoted to Chief Manufacturing and Supply Chain Officer .
    Henry L. CharltonSenior Vice President and Chief Commercial and Marketing OfficerNovember 2003Henry L. Charlton joined Intuitive in November 2003 and has held various commercial leadership positions in the U.S. and Europe. In May 2023, he became the Senior Vice President and Chief Commercial and Marketing Officer .
    Myriam J. Curet, M.D., F.A.C.S.Executive Vice President and Chief Medical OfficerDecember 2005Myriam J. Curet, M.D., F.A.C.S., joined Intuitive in December 2005 as Chief Medical Advisor. She was promoted to Senior Vice President and Chief Medical Officer in February 2014 and further promoted to Executive Vice President and Chief Medical Officer in November 2017 .
    Bob DeSantisExecutive Vice President and Chief Strategy and Corporate Operations OfficerJanuary 2013Bob DeSantis joined Intuitive Surgical in January 2013 as Vice President, Instruments & Accessories, New Product Introduction. In May 2023, Mr. DeSantis was promoted to Executive Vice President and Chief Strategy and Corporate Operations Officer .
    Gary H. LoebSenior Vice President, General Counsel and Chief Compliance OfficerSeptember 2022Gary H. Loeb joined Intuitive Surgical in September 2022 as Senior Vice President, General Counsel, and Chief Compliance Officer. Prior to joining Intuitive, Mr. Loeb served as general counsel for several public and private medical diagnostic and therapeutic firms .
    Brian E. Miller, Ph.D.Executive Vice President and Chief Digital OfficerApril 2003Brian E. Miller, Ph.D., joined Intuitive in April 2003 when Computer Motion merged with Intuitive. He became Senior Vice President and Chief Digital Officer in January 2021 and was promoted to Executive Vice President and Chief Digital Officer in February 2023 .
    Marshall L. MohrExecutive Vice President, Global Business ServicesMarch 2006Marshall L. Mohr joined Intuitive Surgical, Inc. in March 2006 as Senior Vice President and Chief Financial Officer. In January 2022, Mr. Mohr assumed the role of Executive Vice President, Global Business Services .
    Jamie E. SamathSenior Vice President and Chief Financial OfficerApril 2013Jamie E. Samath joined Intuitive Surgical, Inc. in April 2013 as Vice President and Corporate Controller. In January 2022, he was promoted to the position of Chief Financial Officer .
    1. Given your expectation for gross margins to be lower next year due to significant incremental depreciation from new facilities, how do you plan to mitigate margin pressures while continuing to invest in R&D and maintain top-tier profitability?
    2. With the da Vinci 5 rollout prioritizing single-system placements and dual console availability delayed, are you concerned that adoption among larger academic centers will be slower, potentially impacting procedure growth in this segment?
    3. The percentage of systems placed under usage-based arrangements has increased from 12% to 15%, introducing variability in procedure volumes; how does this shift impact your revenue predictability and what measures are you taking to manage the risk of underutilization?
    4. In international markets, regulatory approvals are staggered with Korea approved but delays in Japan and Europe not expected until the end of next year; how does this affect your global growth strategy and what plans do you have to accelerate market entry in these key regions?
    5. As innovation shifts toward software with potentially shorter development cycles, how do you plan to continue differentiating your platform given the ease of replication in software, and what role will hardware innovation play in maintaining your competitive advantage?
    Program DetailsProgram 1
    Approval DateMarch 2009
    End Date/DurationNo expiration date
    Total additional amount$3.5 billion (July 2022)
    Remaining authorization amount$1.1 billion (as of September 30, 2024)
    DetailsMost recent authorization in July 2022

    Competitors mentioned in the company's latest 10K filing.

    • Asensus Surgical, Inc.
    • Beijing Surgerii Robotics Company Limited
    • CMR Surgical Ltd.
    • Johnson & Johnson
    • Medicaroid Corporation
    • Medtronic plc
    • meerecompany Inc.
    • Noah Medical
    • Shandong Weigao Group Medical Polymer Company Ltd.
    • Shanghai Microport Medbot (Group) Co., Ltd.
    • Shenzhen Edge Medical Co., Ltd.
    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLPN/APresentCurrent auditor.
    Ernst & Young LLPN/AFebruary 11, 2014 Declined to respond to the company's request for proposal and chose not to stand for re-election.

    Recent developments and announcements about ISRG.

    Financial Reporting

      Earnings Call

      ·
      Jan 24, 2025, 12:05 AM

      The earnings call transcript for Intuitive Surgical (ISRG) provides a comprehensive overview of the company's financial performance and strategic initiatives for the fourth quarter of 2024 and the outlook for 2025. Here are the key points:

      Financial Performance

      • Revenue and Profit: ISRG reported a fourth-quarter revenue of $2.41 billion, marking a 25% increase over the previous year. The systems revenue grew by 36% year-over-year, driven by a 19% increase in da Vinci system placements and a higher average selling price (ASP).
      • Gross Margin: The pro forma gross margin for Q4 2024 was 69.5%, an improvement from 68% in Q4 2023, attributed to fixed overhead leverage and improvements in freight and logistics costs.
      • Net Income: The pro forma net income for Q4 2024 was $805 million, or $2.21 per share, compared to $574 million or $1.60 per share in the same quarter last year.

      Management's Forward Guidance

      • 2025 Outlook: ISRG anticipates a full-year procedure growth of 13% to 16% for 2025. The gross profit margin is expected to be between 67% and 68%, reflecting increased depreciation expenses and the impact of a stronger U.S. dollar.
      • Capital Expenditures: The company plans capital expenditures between $650 million and $800 million, primarily for facility construction activities.

      Strategic Initiatives

      • Product Launches and Upgrades: ISRG is focusing on the full launch of the da Vinci 5 system, with plans for regional clearances and feature releases. The company is also working on digital features to enhance the da Vinci 5, which could improve outcomes and expand procedural capabilities.
      • Manufacturing Expansion: New facilities for da Vinci 5 and Ion system manufacturing are expected to open in California, with additional endoscope manufacturing facilities in Germany and Bulgaria.

      Market Conditions and Analyst Questions

      • Market Dynamics: The company noted a strong capital equipment environment in the U.S., driven by interest in the da Vinci 5. However, challenges persist in China due to domestic competition and government activities, and in Europe due to budget constraints.
      • Analyst Inquiries: Analysts inquired about the impact of competition on selling cycles, the growth potential of Ion and SP platforms, and the implications of new digital features on the da Vinci 5 system.

      Overall, ISRG's earnings call highlighted robust financial performance, strategic product launches, and a cautious yet optimistic outlook for 2025, amidst varying market conditions globally.

      Earnings Report

      ·
      Jan 23, 2025, 9:32 PM

      Intuitive Surgical, Inc. (Nasdaq: ISRG) has announced its fourth quarter earnings for the period ending December 31, 2024. The company reported a 25% increase in revenue, reaching $2.41 billion compared to $1.93 billion in the same quarter of 2023. This growth was driven by an 18% increase in worldwide da Vinci procedures and a significant rise in the installed base of da Vinci surgical systems, which grew to 9,902 systems, marking a 15% increase from the previous year.

      The company placed 493 da Vinci surgical systems in the fourth quarter of 2024, compared to 415 in the fourth quarter of 2023, including 174 da Vinci 5 systems. The GAAP net income for the quarter was $686 million, or $1.88 per diluted share, up from $606 million, or $1.69 per diluted share, in the fourth quarter of 2023. The non-GAAP net income was $805 million, or $2.21 per diluted share, compared to $574 million, or $1.60 per diluted share, in the same period of the previous year.

      Significant trends affecting financial performance include a 23% increase in instruments and accessories revenue to $1.41 billion, driven by growth in da Vinci procedure volume and customer buying patterns. Systems revenue also increased to $655 million, reflecting a lower mix of leased systems and higher average selling prices for da Vinci systems.

      The company ended the quarter with $8.83 billion in cash, cash equivalents, and investments, an increase of $521 million during the quarter, primarily due to cash generated from operations.

      Earnings Report

      ·
      Jan 15, 2025, 3:13 PM

      Intuitive Surgical (ISRG) Preliminary Earnings Results for Q4 and Full Year 2024

      On January 15, 2025, Intuitive Surgical, Inc. (Nasdaq: ISRG) released its unaudited preliminary financial results for the fourth quarter and full year 2024. Below are the key highlights:

      Financial Performance

      • Q4 2024 Revenue: Approximately $2.41 billion, a 25% increase compared to $1.93 billion in Q4 2023.
      • Full Year 2024 Revenue: Approximately $8.35 billion, a 17% increase compared to $7.12 billion in 2023.
      • Instruments and Accessories Revenue: Grew 23% in Q4 2024 to $1.41 billion and 19% for the full year to $5.08 billion, driven by increased procedure volumes.
      • Systems Revenue: Increased 36% in Q4 2024 to $655 million and 17% for the full year to $1.97 billion, reflecting higher system placements and average selling prices.

      Operational Highlights

      • Procedure Growth:

        • Q4 2024: Worldwide da Vinci procedures grew 18% compared to Q4 2023.
        • Full Year 2024: Approximately 2,683,000 procedures were performed, a 17% increase from 2023. Growth was driven by 19% growth in U.S. general surgery procedures and 23% growth in international procedures, particularly cancer-related surgeries.
        • 2025 Outlook: The company expects procedure growth of 13% to 16%.
      • System Placements:

        • Q4 2024: 493 da Vinci surgical systems were placed, a 19% increase from 415 in Q4 2023. Of these, 174 were da Vinci 5 systems.
        • Full Year 2024: 1,526 systems were placed, an 11% increase from 1,370 in 2023.
      • Installed Base: The total installed base of da Vinci systems grew 15% to 9,902 systems by the end of 2024.

      Key Trends

      • Geographic Performance:
        • U.S. system placements grew 36% in Q4 2024, while placements in Europe increased 25%. Asia saw a 13% decline in placements during the same period.
      • Adoption of New Models: The da Vinci 5 system saw strong adoption, with 174 units placed in Q4 2024 and 362 units for the full year.
      • Recurring Revenue: Recurring revenue accounted for 80% of total revenue in Q4 2024, slightly down from 82% in Q4 2023.

      CEO Commentary

      Intuitive CEO Gary Guthart stated, “We are pleased with customer adoption of da Vinci 5, Ion, and SP during the quarter and full year. We remain focused on delivering the goals we share with our customers, centered on improving patient outcomes”.

      Upcoming Events

      • Intuitive will present at the 2025 J.P. Morgan Healthcare Conference on January 15, 2025, and will host a conference call to discuss detailed Q4 2024 results on January 23, 2025.

      Note

      These results are preliminary and unaudited, subject to adjustments following the company’s final closing procedures and independent audit.


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