On October 17, 2024, Intuitive Surgical held their third quarter earnings call for the period ending September 30, 2024. The call commenced at 4:30 p.m. ET with Brandon Lamm, Senior Manager of Investor Relations, overseeing the proceedings. Present were Gary Guthart, CEO; Dave Rosa, President; and Jamie Samath, CFO.
The call began with Mr. Lamm expressing gratitude to Brian King, who had recently left the company, for his contributions over nine years. He emphasized the forward-looking nature of many statements made during the call, cautioning investors about potential discrepancies between predictions and actual outcomes due to various uncertainties outlined in their regulatory filings.
CEO Gary Guthart recapped the third quarter, highlighting significant growth in procedures, robust capital placements, and operational successes amidst a changing global landscape. He detailed the progress of their multiport system, particularly focusing on the da Vinci platforms. The company had launched its fifth-generation multiport system in March, with promising features designed to enhance surgical outcomes. Regulatory approvals are underway to broaden the system’s global reach.
Dr. Guthart elaborated on Intuitive’s other technological advancements, including the Ion endoluminal system and the da Vinci SP platform, both delivering strong performance and expansion into global markets. The digital efforts to enhance operational efficiencies and training were also outlined, showcasing a commitment to augmenting surgical procedures through technology and analytics.
President Dave Rosa discussed significant procedure growth, noting an 18% increase in da Vinci procedures over the prior year, driven by diverse geographic expansion. He reviewed capital placements and highlighted the launch of various new systems and instruments, setting the stage for future growth despite ongoing pressures in certain regions.
CFO Jamie Samath reported a 17% revenue increase in the third quarter, aligned with strong procedure growth and increased system placements despite challenges in some international markets. He noted an improvement in pro forma gross margins and detailed ongoing investments in facilities and digital tools aimed at supporting future scalability and innovation.
The meeting concluded with Mr. Lamm providing an updated financial outlook, forecasting procedure growth between 16% and 17% for 2024 and adjusted pro forma operating expense growth expectations. The call closed after a Q&A session, during which the leadership responded to inquiries about system placements, international market dynamics, and strategic focus areas.
Overall, Intuitive Surgical communicated a positive outlook supported by strong performance metrics, continued technological innovation, and strategic expansions, despite facing certain market challenges.
