Surgical device company Intuitive Surgical Inc. (ISRG:NASDAQ), which is well-known in the global medical community as a pioneer in the development of equipment, tools, and technology for use in minimally invasive robotic-assisted surgery, yesterday announced financial results for the third quarter of 2022 ended September 30, 2022.
The company reported that total revenue in Q3/22 increased by 11% year-over-year to US$1.56 billion compared to US$1.40 billion in Q3/21. The firm stated that it attributed the growth in revenue to an increase in the number of procedures that were performed using da Vinci systems, which it added were offset somewhat by a decrease in system placements.
The company explained that the number of da Vinci procedures completed worldwide in Q3/22 grew by about 20% versus Q3/21 but noted that results in Q3/21 experienced some disruptions due to the COVID-19 pandemic. The firm stated that from Q3/19 to Q3/22, procedures have grown by 16% annually on a compounded basis.
CEO Gary Guthart commented, "Our da Vinci installed base grew to meet procedure demand, and we also see a continued increase in system utilization, which is healthy for our customers and the business."
The firm provided a breakdown of revenue by product line and advised that in Q3/22, revenues from sales of instruments and accessories increased by 15% to US$872 million, compared to US$755 million in Q3/21. During the same period, revenues from systems sales rose by 3% to US$426 million, versus US$415 million in Q3/21.
Intuitive reported that in Q3/22, it placed 305 new da Vinci Surgical Systems and, as of September 30, 2022, had a total installed base of 7,364 systems worldwide, which was up by 13% from 6,525 installed systems at the end of Q3/21.
The company stated that in Q3/22, GAAP income from operations decreased to US$399 million from US$443 million in Q3/21. The firm added for Q3/22, it earned a GAAP net income of US$324 million, or US$0.90 per diluted share, versus US$381 million, or US$1.04 per diluted share in Q3/21.
On a non-GAAP basis, the company stated that it had a net income of US$429 million, or US$1.19 per diluted share, compared to US$435 million, or US$1.19 per diluted share in Q21/21.
Intuitive Surgical advised that it repurchased US$1 billion of its common stock during Q3/22 and ended the quarter with US$7.39 billion in cash and other highly liquid assets on its balance sheet.
The firm mentioned that last month, Japan's Ministry of Health, Labor, and Welfare granted clearance for the use of the da Vinci SP Surgical System across multiple applications. This would appear to be a very positive development for the company going forward as the system has now been approved for use throughout Japan in general, gynecological, urologic, trans-oral head and neck surgical procedures as well as for thoracic surgeries (excluding cardiac procedures and intercostal approaches).
The company's CEO Gary Guthart commented, "Intuitive's core business strengthened this quarter despite a challenging macroeconomic environment and some lingering pandemic impacts . . . Our da Vinci installed base grew to meet procedure demand, and we also see a continued increase in system utilization, which is healthy for our customers and the business."
Intuitive Surgical is a leading global provider of minimally invasive robotic surgical equipment and devices based in Sunnyvale, Calif. The company focuses on developing less invasive and more effective surgical devices, and designs, manufactures, and markets these products to physicians and healthcare providers worldwide.
The company is well-known for its da Vinci robotic surgical system and its Ion endoluminal system, which is a robotic-assisted platform that is used to perform minimally invasive lung biopsies and other diagnostic applications. According to the company's website, through 2021, more than 10 million medical procedures have been performed globally in 69 countries using da Vinci systems.
Intuitive Surgical began yesterday with a market cap of around US$69.18 billion, with approximately 357.11 million shares outstanding. ISRG shares opened 12.50% higher yesterday at US$217.94 (+$24.21, +12.50%) over Tuesday's US$193.73 closing price. The stock traded between US$210.36 and US$220.98 per share and closed for trading at US$211.14 (+$17.41, +8.99%).
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