Q4 2024 Intuitive Surgical Inc Earnings Call Transcript
Key Points
- Intuitive Surgical Inc (ISRG) reported strong financial performance for 2024, with a 17% growth in revenue and a 29% increase in net income over 2023.
- The company successfully launched its fifth-generation multiport platform, da Vinci 5, with 362 systems placed in 2024 and over 32,000 procedures performed.
- 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.
- 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.
- Intuitive Surgical Inc (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.
- Bariatric procedures in the US declined modestly due to the rise in GLP-1 medications, impacting overall procedure growth.
- 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.
- Challenges in the Chinese market persist, with procedure growth slightly below the corporate average due to domestic competition and government activities.
- European markets, particularly the UK and Germany, face ongoing government budget pressures affecting healthcare capital spending.
- Intuitive Surgical Inc (ISRG) expects a significant increase in depreciation expense in 2025 due to new facility openings and manufacturing expansions.
Good day and thank you for standing by. Welcome to the Q4 2024 Intuitive earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. (Operator Instructions)
I would now like to hand the conference over to your speaker today, Brandon Lamm, Investor Relations for Intuitive Surgical.
Good afternoon and welcome to Intuitive's fourth quarter earnings conference call. With me today, we have Gary Guthart, our CEO; Jamie Samath, our CFO; [Daniel Oh, our Senior Medical Officer;] Dave Rosa, our President and regular participant on this call is away from the office this week on a prior business commitment and will not be joining today. Dr. Daniel Oh, Senior Medical Officer and practicing surgeon will join us on this call to describe clinical highlights.
We would also like to announce that Dan Connelly will be joining Intuitive as our VP and Head of Investor Relations. Dan has worked at a global
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