We rolled out the extended use instruments in Europe and the U.S. back in the fourth quarter. BSD Medical Corporation Medtronic Ethicon Endo-Surgery Olympus Corporation Siemens Healthcare Intuitive Surgical . Thirty-eight percent of systems placed in the second quarter involved trade-ins, which is lower than the 40% last year and the 44% last quarter. And we think that the extended use instruments lowers barriers for purchases of systems. And that is both painful and an opportunity. During the second half of 2022, the Company saw COVID-19 resurgences impact da Vinci procedure volumes in China. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent Form 10-K filed on February 10, 2021; and Form 10-Q filed on April 21, 2021. Constant currency revenue growth. Our focus right now is not rapid expansion of the installed base. Or any color you can provide on that? Unrealized gain (loss) - net of tax expense (recovery) effect of $347 and $37 for the three months ended December 31, 2022 and 2021, respectively; ($859) and $(354) for the six months ended . We believe that globally, customers have had not completely adjusted their instrument buying patterns to reflect the additional uses per instrument. Intuitive Surgical -Export management Iqm selezione - 07.2021 . The authors concluded, "The results revealed that robotic-assisted thoracic surgery is a feasible and safe technique compared with VATs in terms of short-term and long-term outcomes." They're calling on customers. Sales increased 17% to $1.55 billion, just ahead of ISRG stock analysts' projections for . On the benign side, often the diagnostic pipelines are shorter. And so we see that as a benefit also with respect to feedback from surgeons. Statements using words such as estimates, projects, believes, anticipates, plans, expects, intends, may, will, could, should, would, targeted, and similar words and expressions are intended to identify forward-looking statements. Hospitalizations of patients due to COVID have negatively impacted da Vinci procedures. Gosh, that's awfully encouraging sounding. Research consulting in a firm with a clear vision to commercialize the neurotechnology industry at scale. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. The trade-in cycle has been a tailwind to system placements. Starting with procedures. Growth in the U.K. was strong, with a slower recovery in France, Italy, and Germany. Intuitive Announces Fourth Quarter Earnings, Less: net income attributable to noncontrolling interest in joint venture. Fourth quarter 2021 revenue was$1.55 billion, an increase of 17%compared with$1.33 billion in thefourth quarter of 2020. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. They use specialized instrumentation, including a miniaturized surgical camera and wristed instruments (i.e., scissors, scalpels, and forceps) that are designed to help with precise dissection and reconstruction deep inside the body. It's a short period, but we believe that there is elasticity, and we've seen elasticity in markets where reimbursements are very low. Fourth quarter 2022 revenue was$1.66 billion, an increase of 7%compared with$1.55 billion in thefourth quarter of 2021. Now that the dust . Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. It affirms that "RAS devices have been cleared for use in certain types of surgical procedures commonly performed in patients with cancer, such as hysterectomy, prostatectomy and colectomy. The high end of the range assumes strength in U.S. general surgery, a return to normalized diagnostic pipelines, the vaccines are effective against any new COVID-19 variants and the vaccine rollouts in OUS markets continue as currently expected by governments around the world. 2021 Intuitive Sustainability Report 7.8 MB. What's left to do from maybe a product or procedure or instrument point of view? Fourth quarter 2022 systems revenue decreased by 4% to $451 million, compared with $470 million in the fourth quarter of 2021. What we've seen, though, is that what happens in the PowerPoints and what happens a year later is different. We ended the quarter with cash and investments of $7.7 billion, compared with $7.2 billion last quarter. The supply issues we called out in the first quarter did not impact Ion placements and procedures in this quarter. These non-GAAP financial measures also facilitate managements internal comparisons to its historical performance. So I apologize for the short-term-oriented question, but you're the first large-cap company to report here. So those are the drivers we watch. Now turning to the clinical side of our business. Marshall will provide a review of our financial results. Pro forma gross margin for the second quarter of 2021 was 71.7%, compared with 62.4% for the second quarter of 2020 and 71.8% last quarter. It also reflects lower diagnostic pipelines and perhaps some reluctance for patients to visit hospitals. To choose The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. Intangible asset charges consist of non-cash charges, such as the amortization of intangible assets as well as in-process R&D charges. And Jamie, as to kind of where we are. It's not just the robot. 10/08/22 - 11:00 AM EDT. OUS markets grew 51% year over year or 19% on a two-year compound annual growth rate basis. I will now summarize our GAAP results. Both gynecology and urology procedure annualized growth strengthened in the quarter, as pandemic pressures eased in the U.S. The company strives to make surgery more effective, less invasive and easier on surgeons, patients and their families. I think the thing that we'd call out is it's not the case rates per se to monitor. Fourth quarter 2022 GAAP income from operations included share-based compensation expense of $129 million, compared with $120 million in the fourth quarter of 2021. Investors have assigned a high trading . Please go ahead. It's taking getting the advanced instruments, put them together as a set, getting our workflows and our clinical pathways right, and I think that's been powerful to date. Based in Sunnyvale, California. Investor's Business Daily . Yeah, sure. The reason I mentioned it early is I think when we've had pretty strong capital quarters the last few, one of the things we want to look for is, are we building unused capacity into the field that -- where procedures softer that would stall us out. Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. The next page will display a menu of options. How close we are to maybe seeing something that you can monetize? And we've seen both good clinical outcomes, but also high surgeon satisfaction and better ergonomics. SBC expense has been, and will continue to be for the foreseeable future, a significant recurring expense in the Companys business. OK. Well, thank you, and our moderator, that was our last question. Thank you for joining us today. Let me start with why I think it's adopting, and I'm going to turn to Jamie as to where -- what inning of the baseball game are we in, I'll let Jamie take that. To change your e-mail options at Fourth quarter 2021 GAAP income from operations increased to $450million, compared with $416million in the fourth quarter of 2020. COVID has impacted global supplies of semiconductors and other materials used in our products, while we carry safety stocks of critical components and are otherwise working to secure supply necessary to ensure fulfillment of customer demand, global shortages could result in higher production costs and production development and regulatory delays. And then has the elasticity relative to the extended use program and the pricing adjustments played out relative to your expectations? These programs together trained over 2,200 care team members in the quarter, showing organizational strength and localizing programs, and responding with agility to pandemic-influenced demand. And that if it hasn't delivered against the Quad Aim, if these systems can do some cases well, but not all cases well or they have stability issues or other things, that wears in pretty quickly. It's the impact on hospitalizations. Our technologies include the da Vinci surgical system and the Ion endoluminal system. Intuitive Surgical, Inc. is the global technology leader in robotic-assisted minimally invasive surgery (MIS). These awards were modified in the fourth quarter of 2021 and are now valued based on certain key performance metrics. Transitory was out a few years ago and CMR has been out and now Medtronic. It doesn't seem like the backlog would be exhausted just after one quarter. And regarding the backlog, how do you know there was catch-up and why won't that continue for the next few quarters? Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. SUNNYVALE, Calif., Jan. 20, 2022 (GLOBE NEWSWIRE) -- Intuitive (the Company) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended December31, 2021. To change your e-mail options at The Safety Communication issued on August 20, 2021 by the FDA, is specific to the use and study of robotic-assisted surgery in mastectomy. Second, disciplined execution of our launches, including our advanced instruments, SP, Ion, and digital efforts. As part of our mission, we believe that minimally invasive care is life-enhancing care. (4) Income tax expense includes the effect of the following items: One-time tax benefit from re-measurement of certain deferred tax assets, Discrete tax expense arising from the conclusion of a tax matter, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. 20, 2021Corporate Participants: Calvin Darling Senior Director of Finance, Investor Relations. Good afternoon. Good afternoon, everybody. The second reason to invest in Intuitive Surgical is its incredible profitability. In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. your options for e-mail notification, please enter your e-mail address below and click The next page will display a menu of options. The increase in instruments and accessories revenue was primarily driven by approximately 18% growth in da Vinci procedure volume, partially offset by customer buying patterns and foreign currency impacts. These awards are valued based on certain key performance metrics. Looking at the past eight quarters in context, our compound annual growth rate for procedures for the period Q2 2019 through Q2 2021 of 16.5% is approximately the growth we would have expected absent the pandemic. Thanks for taking the question. (2) Selling, general and administrative includes the effect of the following items: One-time tax benefit from re-measurement of certain deferred tax assets, Discrete tax expense arising from the conclusion of a tax matter, Gains on strategic investments, net of tax, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. The split must be approved by the shareholders but this is merely a formality. So here's kind of where we stand with the backlog. Tycho Peterson -- JPMorgan Chase & Co. -- Analyst. And so I think you're going to see this quarter was extraordinary in terms of the operating profit margin and that we'll -- it will be lower in future quarters, given what I just described. In closing, we continue to believe there is a substantial and durable opportunity to fundamentally improve surgery and acute interventions. Gotcha. Yeah. [Inaudible] on a nice quarter. The Company excludes the excess tax benefits or deficiencies associated with SBC arrangements as well as the tax effects associated with non-cash amortization of deferred tax assets related to intra-entity non-inventory transfers, because the Company does not believe these items correlate with the on-going results of its core operations. 10/08/22 - 11:00 AM EDT. Thank you. Jamie will provide spend guidance later in this call. Hi, Gary. Fourth quarter 2022 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $18 million, or $0.05 per diluted share, compared with $27 million, or $0.07 per diluted share, in the fourth quarter of 2021. We have a broad range of estimates. The Companys calculated non-GAAP effective tax rate is generally higher than its GAAP effective tax rate. Rick Wise -- Stifel Financial Corp. -- Analyst. Intuitive Surgical, Inc. ISRG recently announced preliminary results for fourth-quarter and full-year 2021. I think all of us know, and we, as consumers know that customers like choice, perfectly fair. That's helpful, Gary. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. I will now turn to our financial outlook for 2021. You've been spending a lot there. The Company defines non-GAAP gross profit as gross profit, excluding intangible asset charges and SBC and long-term incentive plan expenses. Fourth quarter 2021 GAAP net income attributable to Intuitive Surgical, Inc. was $381million, or $1.04 per diluted share, compared with $365million, or $1.01 per diluted share, in the fourth quarter of 2020. Non-GAAP net income attributable to Intuitive Surgical, Inc. and EPS. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. Intuitive Surgical has been witnessing an upward estimate revision trend for 2021. So we're excited about that because it gives them fast and easy access. COVID-19 has had, and will likely continue to have, an adverse impact on the Companys procedure volumes. And with that, I'd like to turn it over to Jamie. The compound annual growth rate between the full year of 2019 and the full year of 2021 was approximately 12%. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. And at this time, I would like to turn the conference over to our host, senior director of finance, investor relations for Intuitive, Mr. Calvin Darling. Mark the "Pitching to Investors Programme" on the 7th December 2022 in your calendar! Conversion rates to open surgery were lower in the robotic group compared to the laparoscopic group, 0.6% as compared to 4.9%, and reoperation rates in the 30 days post procedure were comparable between robotic and laparoscopic and lower for robotic as compared to open, 0.6% as compared to 3.1%. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved north by 8.4% to $14.72. You may automatically receive Intuitive Surgical financial information by e-mail. The Company grew its da Vinci Surgical System installed base to 7,544 systems as of, Fourth quarter 2022 GAAP net income attributable to Intuitive was, Fourth quarter 2022 non-GAAP* net income attributable to Intuitive was. In terms of penetration or adoption, we're in the early to mid-innings kind of range is what I'd say in the U.S. market. All Rights Reserved. And recently, we've had a series of very encouraging conversations on the adoption of bariatrics, very encouraging. *Average returns of all recommendations since inception. And finally, we will host a question-and-answer session. Ion procedures grew sixfold over Q2 2020 to nearly 1,500 procedures in the quarter, reflecting recovery from the pandemic, the growth in new sites, and growth in utilization at existing sites. And that has implications for the kind of imaging we do, it has implications for task analysis and training, and we're doing those things, and those can be aggregated across a surgical platform. Listen to Webcast. There are a number of limitations related to the use of non-GAAP measures versus measures calculated in accordance with GAAP. In May of this year, Dr. Karl LeBlanc from our Lady of the Lake Medical Center in Baton Rouge, Louisiana, published results from a multi-center study comparing short-term outcomes for incisional hernia, published in the Hernia Journal entitled Robotic-Assisted Laparoscopic and Open Incisional Hernia Repair: Early Outcomes from the Prospective Hernia study. your options for e-mail notification, please enter your e-mail address below and click There are several models of the da Vinci Surgical System. You've got COVID. Intuitive Surgical (ISRG-0.90%) investors who weren't expecting it to perform a three-for-one stock split recently woke up to what looked like an overnight loss of more than 60%. Intuitive Surgical, Inc. engages in the development, manufacture, and marketing of da Vinci Surgical Systems, and related instruments and accessories for . It has been. Key business metrics for the second quarter were as follows. First cases in our SP colorectal IDE trial were completed in the quarter as we seek to bring SP capability to additional procedures. I think that's anecdotal. Yes. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. 07/21/22 - 1:30 PM PDT. Jamie Samath Senior Vice President of Finance Colorectal growth was strong, with solid growth in malignant hysterectomy, thoracic, and prostatectomy procedures. What was the second part of your question again, Larry? Our pro forma spending grew over 24% from a year ago, representing increased investment in our business. We kind of outlined what was assumed in the high end of the procedure guidance. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. The instrumentation updates, there are other things, imaging updates and software updates that are really all focused around right instruments, right features for the right extension or right expansion. Our focus is in clinical capability and productivity of the installed base we have. And I know case rises have been largely decoupled from hospitalizations. Forward-looking statements relate to expectations concerning matters that are not historical facts. In there is OUS markets continue to be choppy given that, in many cases, those markets are behind the U.S., for example, in their vaccination rollouts, and that leaves the possibility of continued resurgences and localized lockdowns. Thanks, Tycho. [Operator Instructions] As a reminder, today's call is being recorded. Jamie Samath -- Senior Vice President of Finance. I would just add, Bob, as you saw the COVID hospitalization rates in the U.S. come down in March and into Q2, that frees hospital resources to increase the level of surgery that we do. Travel and associated costs in support of our field have also not recovered to pre-pandemic levels. Obviously, you made some comments about variance and not factoring in kind of an increase. Again, if you look across that two-year period, try to look through the pandemic kind of ups and downs, what we're seeing is that procedure demand is there. The decrease relative to these prior periods reflects geographic mix and volume discounts provided to customers purchasing multiple systems.