InMode Reports Q4 2024 Earnings Amid Aesthetic Market Challenges

InMode faces hurdles in Q4 2024 earnings report. Revenue drops 20%, reflecting broader aesthetic market challenges. The company remains optimistic about future innovations and product launches.

Date: 07-02-2025

AI Rating: 5

Overview of Financial Performance
InMode reported a decrease in revenue of 20% for 2024 compared to the previous year, reaching a total of $394.8 million. The gross margin remained high at 81% on a non-GAAP basis, indicating the company's resilience despite external challenges. The decline in revenue was largely attributed to a significant downturn in demand for minimally invasive procedures, alongside macroeconomic factors such as increased interest rates affecting doctors' ability to buy equipment.

Earnings Per Share (EPS)
The GAAP diluted EPS for the year was reported at $2.25, slightly lower than $2.30 in 2023. In the fourth quarter of 2024, it improved to $1.14 compared to $0.64 from the same quarter the previous year. Non-GAAP diluted EPS was $1.76 for the full year, down from $2.57 in 2023, reflecting the pressures on earnings amidst declining revenues.

Gross Margins
InMode maintained a robust non-GAAP gross margin of around 81% for 2024, which is one of the highest in the industry. This indicates that despite decreasing sales volumes, the company was able to manage its production costs efficiently. The latest innovations, such as the IgniteRF and OptimasMAX platforms, which were introduced in 2024, are expected to enhance future margins as they gain market traction.

Future Outlook
In 2025, InMode projects revenue between $395 million to $405 million, with non-GAAP gross margins forecasted to remain steady between 80% and 82%. With ongoing product innovation and the anticipated introduction of two new platforms, along with the existing strong portfolio, InMode is well-positioned to regain market confidence and possibly recover its lost market share.

Stocks: INMD