Intuitive Surgical Q3 2024
The Q3 figures from $ISRG (-0.89%) Surgical, Inc. show impressive growth and strategic progress.
The company reported a 17% increase in revenue to $2.04 billion for the third quarter of 2024, compared to $1.74 billion in the same quarter of 2023. This growth was largely driven by an 18% increase in da Vinci surgical volume and a 15% increase in the installed system base, which now totals 9,539 systems.
In the third quarter of 2024, the company placed 379 da Vinci surgical systems, compared to 312 in the previous year, including 110 of the newly launched da Vinci 5 systems. Revenue from system sales amounted to USD 445 million in the quarter, compared to USD 379 million in the previous year.
Intuitive Surgical's GAAP net income for the third quarter of 2024 was $565 million, or $1.56 per diluted share, compared to $416 million, or $1.16 per diluted share, in the third quarter of 2023. On a non-GAAP basis, net income was $669 million, or $1.84 per diluted share, compared to $524 million, or $1.46 per diluted share, in the same period of 2023.
At the end of the third quarter of 2024, ISRG had $8.31 billion in cash, cash equivalents and investments, an increase of $628 million for the quarter.
Positives:
- Revenue growthIntuitive Surgical reported revenue growth of 17% in the third quarter of 2024, which amounted to USD 2.04 billion, compared to USD 1.74 billion in the same period of 2023.
- Increased use of the da Vinci systemsThe volume of da Vinci procedures increased by 18%, contributing significantly to overall sales growth.
- Expanded installed baseThe installed base of da Vinci systems grew by 15% to a total of 9,539 systems as at September 30, 2024.
- Net revenue growthGAAP net income for the third quarter of 2024 was $565 million, or $1.56 per diluted share, an increase from $416 million, or $1.16 per diluted share, in the third quarter of 2023.
- Strong financial positionAt the end of the third quarter of 2024, the company had $8.31 billion in cash, cash equivalents and investments, an increase of $628 million over the quarter.
Negative aspects:
- Increasing share-based compensationThe company's stock-based compensation increased to USD 176 million in the third quarter of 2024, compared to USD 157 million in the prior-year quarter.
- Higher costs: Despite sales growth, the cost of sales also increased, which negatively impacted the gross profit margin.
- Competitive pressureThe company continues to face strong competition in the market for robot-assisted surgery, which could impact future growth.
- Financial risks from leasing modelsThe dependence on operating lease agreements for the placement of the systems could entail financial risks if market conditions change.
- Complexity due to strategic investmentsThe company's strategic investments and expansions could lead to increased operational challenges and possible integration problems.
Overall, Intuitive Surgical is showing a strong quarter and strategic progress, with significant growth in both sales and net profit.