In This Article:
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Revenue: $8.4 billion for the year, 17% growth over 2023.
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Net Income: Grew by 29% in 2024 over 2023.
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Gross Margin: Pro forma gross margin improved 100 basis points to 69.1% for 2024.
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Operating Margin: Pro forma operating margin improved 310 basis points to 37% for 2024.
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EPS: Pro forma EPS increased 28% in 2024.
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System Placements: 1,430 multiport systems placed in 2024, up from 1,313 in 2023.
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Procedure Growth: 17% growth for the full year 2024.
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Ion Procedures: 78% growth for the full year 2024.
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SP Procedures: 72% growth for the full year 2024.
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Cash and Investments: $8.8 billion at the end of 2024.
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Q4 Revenue: $2.41 billion, a 25% increase over last year.
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Q4 System Placements: 493 systems, 19% higher than the same quarter last year.
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Q4 Pro Forma Income: $805 million or $2.21 per share.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Intuitive Surgical Inc (NASDAQ:ISRG) reported strong financial performance for 2024, with a 17% growth in revenue and a 29% increase in net income over 2023.
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The company successfully launched its fifth-generation multiport platform, da Vinci 5, with 362 systems placed in 2024 and over 32,000 procedures performed.
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Procedure growth was robust, with a 17% increase overall, driven by strong performance in general surgery in the US and regional growth in countries like the UK, Japan, and Germany.
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The Ion and da Vinci SP platforms showed significant growth, with Ion procedures increasing by 78% and SP procedures by 72% for the full year.
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Intuitive Surgical Inc (NASDAQ:ISRG) improved its pro forma gross margin by 100 basis points to 69.1% and achieved a pro forma operating margin of 37% for 2024.
Negative Points
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Bariatric procedures in the US declined modestly due to the rise in GLP-1 medications, impacting overall procedure growth.
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The company anticipates lower pro forma operating margins in 2025 due to higher leasing rates, increased depreciation expenses, and a higher mix of lower-margin products.
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Challenges in the Chinese market persist, with procedure growth slightly below the corporate average due to domestic competition and government activities.
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European markets, particularly the UK and Germany, face ongoing government budget pressures affecting healthcare capital spending.
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Intuitive Surgical Inc (NASDAQ:ISRG) expects a significant increase in depreciation expense in 2025 due to new facility openings and manufacturing expansions.
Q & A Highlights
Q: US system placements grew significantly in the second half of 2024. Is this a leading indicator of more procedures, or will there be a digestion period to restore normal utilization? A: Gary Guthart, CEO: As we reach the back half of adoption curves, expectations for utilization may differ, with not every account being high-volume. New capital features can also influence acquisition timing, creating ripples in utilization. Over time, multiport utilization growth rates may settle, while SP and Ion utilization have room to grow.