Based on market data, we believe that diagnostic pipelines in the U.S. began to recover from the impact of the pandemic in March, with a lag in the recovery of associated procedures. System placements in the quarter reflected procedure growth and hospitals upgrading to -- in order to access or standardize on fourth-generation capabilities. Our pro forma effective tax rate for the second quarter was approximately 25%. The Company defines non-GAAP net income as net income attributable to Intuitive Surgical, Inc., excluding amortization of intangible assets, SBC and long-term incentive plan expenses, litigation charges and recoveries, a gain on the sale of a business, gains (losses) on strategic investments, adjustments attributable to noncontrolling interest in joint venture, net of the related tax effects, and tax adjustments, including the excess tax benefits or deficiencies associated with SBC arrangements and the net tax effects related to intra-entity transfers of non-inventory assets. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. OK. And then just one quick follow-up. Preliminary full year 2021 systems revenue increased by 44% to approximately $1.69 billion, compared with $1.18 billion in 2020. I think that's what's been driving our success in the early market. Intuitive will hold a teleconference at 1:30 p.m. PST today to discuss the fourth quarter 2021 financial results. 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. And I think you've alluded to adding additional instruments and accessories, so can you talk on the hardware side as well? I'm just curious what the net effect there is from the savings and expense perspective and R&D, whether this is maybe the beginning of you starting to see some leverage off of the 10% you've been at for the last couple of years. Marshall will provide a review of our financial results. Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., and non-GAAP EPS exclude items such as intangible asset charges, re-measurement of contingent consideration, SBC and long-term incentive plan expenses, excess tax benefits or deficiencies associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfer of non-inventory assets, which are primarily recurring items. The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. 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. Intuitive Surgical, Inc. (Nasdaq:ISRG), headquartered in Sunnyvale, Calif., is the pioneer and a global technology leader in robotic-assisted, minimally invasive surgery. INTUITIVE SURGICAL, INC.-13.55%: 80 376: BOSTON SCIENTIFIC CORPORATION: 1.19%: 67 033: SIEMENS . Total second-quarter revenue was $1.464 billion, representing a 72% increase from last year and a 13% increase from last quarter. These system-controlled staplers, vessel sealers, and energy instruments support a range of procedures from bariatrics to colorectal procedures, to thoracic and gynecologic applications. 06/14/22 - 1:20 PM PDT. All Rights Reserved. The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. Our actual gross profit margin will vary quarter to quarter depending largely on product, regional, and trade-in mix, the impact of product cost reductions, and manufacturing efficiencies and pricing pressure. The stock split will take place after market close on October 5th, 2021. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. I'll speak to my impression, but I caveat it, it's one person's impression. Second, disciplined execution of our launches, including our advanced instruments, SP, Ion, and digital efforts. 07/21/22 - 1:30 PM PDT. We will now open the call to your questions. This article is a transcript of this conference call produced for The Motley Fool. The da Vinci surgical systems are designed to help surgeons perform minimally invasive surgery. Growth in our second largest market, China, continued to be strong with multiple specialties contributing. Gotcha. Intuitive Announces Preliminary Fourth Quarter and Full Year 2021 Results. Turning to gross profit. INTUITIVE SURGICAL, INC.-14.33%: 79 654: BOSTON . Find the latest Intuitive Surgical, Inc. (ISRG) stock quote, history, news and other vital information to help you with your stock trading and investing. 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. Intuitive Surgical (ticker: ISRG ) reported an adjusted fourth-quarter profit of $1.30 a share, beating forecasts for $1.28 a share, on sales of $1.55 billion, which topped expectations for $1.52 . Jamie will discuss procedure and clinical highlights and provide an update of our financial outlook. I think the noise levels will go up. I will now turn to our financial outlook for 2021. Lockdowns decrease patient mobility and willingness to go get their tests and then hospitalization diminishes ICU capacity. Driven by steady sales of da Vinci and increasing surgical procedures, Intuitive Surgical recorded $5.71 billion in revenue for 2021, up 82% over the past five years despite COVID-19 slowdowns. (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. And as we've said in the past, if we can bring the right system with the right instruments, the right imaging, and the right usability, the right ease of use, we think that surgeons will care. Intuitive Surgical Inc (NASDAQ: ISRG) Q2 2021 earnings call dated Jul. The next page will display a menu of options. Additional revenue statistics and trends are as follows. any time, re-enter your e-mail address and click Submit, then adjust your form entries. Frankly, the lack of precision in that estimate is such that it's probably not useful for us to share. Now that the dust . 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. The Company grew its da Vinci Surgical System installed base to 6,730 systems as of, Fourth quarter 2021 GAAP net income attributable to Intuitive was $381million, or, Fourth quarter 2021 non-GAAP* net income attributable to Intuitive was. Bob Hopkins -- Bank of America Merrill Lynch -- Analyst. The non-GAAP* measures are described below and are reconciled to the corresponding GAAP measures at the end of this release. But can you maybe just talk through the thought process there and how you're thinking about any potential risks in the back half of the year from the variant cases? I'll now turn the time over to Marshall to take you through our financial performance in greater detail. You've got COVID. Our teams continue to work closely with hospitals, physicians, and care teams in pursuit of what our customers have termed the Quadruple Aim: Better, more predictable patient outcomes, better experiences for patients, better experiences for their care teams, and ultimately, a lower total cost to treat. We are in the execution and launch phase of four efforts. Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., net income per diluted share attributable to Intuitive Surgical, Inc., and diluted shares are reported on a GAAP and non-GAAP* basis. Accordingly, they are subject to significant volatility based on the performance of these metrics and are not tied to performance of the Companys business within the period. Extended use instruments were introduced into the U.S. and Europe in the fourth quarter, in most other markets in the first six months of this year, except China due to regulatory timelines. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on current expectations and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those risk factors identified under the heading Risk Factors in the Companys Annual Report on Form 10-K for the year ended December 31, 2020, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, as updated by the Companys other filings with the Securities and Exchange Commission. And regarding the backlog, how do you know there was catch-up and why won't that continue for the next few quarters? The Company ended the fourth quarter of 2022 with $6.74 billion in cash, cash equivalents, and investments, a decrease of $651 million during the quarter, primarily driven by share repurchases of $1 billion and capital expenditures, partially offset by cash generated from operations. Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Q2 2021 earnings conference call. The difference in the number of subjects reporting the need for prescription pain medication favored the robotic-assisted group in both comparisons." As the phases of the pandemic evolve, we're supporting our team in addressing the opportunities and challenges posed by the pandemic and the ways we work. We rolled out the extended use instruments in Europe and the U.S. back in the fourth quarter. . Non-GAAP gross profit, non-GAAP income from operations, non-GAAP net income attributable to Intuitive Surgical, Inc., and non-GAAP EPS exclude items such as amortization of intangible assets, SBC and long-term incentive plan expenses, excess tax benefits or deficiencies associated with SBC arrangements, and non-cash amortization of deferred tax assets related to intra-entity transfer of non-inventory assets, which are primarily recurring items. 5001-10,000 Employees. It flows from respect for and understanding of patients and care teams, their needs, and their environment. Intuitive advances minimally invasive care by innovating at the point of possibility. To make the world smarter, happier, and richer. Listen to Webcast. So short answer there is just kind of a reminder of what we're trying to do. But once you develop a really capable ecosystem, then it has a lot of platform use, and that investment can be recovered over time. Research consulting in a firm with a clear vision to commercialize the neurotechnology industry at scale. Our technologies include the da Vinci surgical system and the Ion endoluminal system. We ended the quarter with cash and investments of $7.7 billion, compared with $7.2 billion last quarter. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. And then now we have rolled it out to most other markets in the first six months of this year, except for China where there are longer regulatory timelines. And the capital to support that demand has not run ahead of the procedure demand. Based in Sunnyvale, California. Procedure growth in the U.S. was led by bariatric cholecystectomy and hernia procedures. We're clearly seeing that in markets like India, Taiwan, there's been an impact in terms of how they've handled that from a healthcare system perspective and the resulting impact on our procedures. Please note that this conference call will be available for audio replay on our website at intuitive.com on the latest Events section under our Investor Relations page. Yes, Tycho. Thanks, Tycho. Women Techmakers Ambassador is responsible for driving diversity and inclusion through organizing local events within the tech community. That's right -- theythink these 10stocks are even better buys. To the extent that COVID impacts procedures, it will also impact capital purchases. So I wouldn't start building lots of leverage into your models. During 2020, da Vinci procedure volumes and system placements were significantly impacted by the COVID-19 pandemic, as healthcare systems around the world diverted resources to respond to COVID-19. 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. I mean, how do you know there was catch-up from the backlog in Q2? Next, we'll go to Bob Hopkins with Bank of America. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. The Safety Communication issued on August 20, 2021 by the FDA, is specific to the use and study of robotic-assisted surgery in mastectomy. To change your e-mail options at Later we will have a question-and-answer session. And we've seen both good clinical outcomes, but also high surgeon satisfaction and better ergonomics. We think there's an opportunity to look at correlations between surgeon performance and outcomes. Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. INTUITIVE at 2022 Wells Fargo Healthcare Conference. OK. That's helpful. And so we'll spend there. Fourth quarter 2021 systems revenue increased by 28% to $470million, compared with $367million in the fourth quarter of 2020. So it's hard to time it out, and it doesn't time out over one or two quarters, it times out over years. It has been. First, we are broadening access to our advanced instruments for our da Vinci Fourth Generation Multiport Systems through pursuit of additional clearances and launches outside the U.S. Second, we are expanding our da Vinci SP offering by broadening its regional and clinical indications and by adding it to its suite of instruments and accessories. Customer adjustment of buying patterns will reduce I&A revenue per procedure. The number we're watching closely is hospitalization. Thoracic Surgery Market was valued at USD 3.1 Billion in 2021, and it is expected to reach a CAGR of 7.18 % . And finally, expanding our clinical, economic, and analytical evidence base for key procedures and countries. Investors have assigned a high trading . It's the impact on hospitalizations. And I kind of articulated what those were, travel and so forth. The Board of Directors of Intuitive Surgical approved a 3:1 stock split on August 5th, 2021. In other words, happy, very satisfied customers. And finally, we will host a question-and-answer session. Q2 2022 INTUITIVE Earnings Conference Call. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. Thank you. . Da Vinci systems offer surgeons high-definition 3D vision, a magnified view, and robotic and computer assistance. 20, 2021Corporate Participants: Calvin Darling Senior Director of Finance, Investor Relations. Presentation: Operator. Hong Kong. Another third works closely with customers in the field, and the remaining third have traditionally worked in lab and office environments. 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. One is we are focused on making sure that our ecosystem, our products, our systems, everything goes around it really delivers against the Quadruple Aim all the way through. Pro forma operating expenses increased 24% compared with the second quarter of 2020 and increased 5% compared with last quarter. Please go ahead. Fourth quarter 2022 constant currency revenue increased 10% compared to the fourth quarter of 2021. I guess first question on guidance. I think there's elements of our spend that have been restrained because of -- restricted because of COVID and its impact. Keep up-to-date with changes . At this time, all participants are in listen-only mode. We think about digital as enabling and accelerating a lot of different parts of the ecosystem. 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. These awards were modified in the fourth quarter of 2021 and are now valued based on certain key performance metrics. Thanks. In the U.S., as COVID continued to subside in the second quarter of 2021, we saw a lower impact on da Vinci procedures. The next page will display a menu of options. My Intuitive allows surgeons and care team members to access their data, to manage their profile, their learning, and otherwise interact with Intuitive through an easy-to-use mobile app in the palm of their hand. China growth in the second quarter continued to be far higher than our other regions, primarily reflecting the 40% system installation growth over the past year. 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. Higherfourthquarter revenue was driven by growth in da Vinci procedure volume and system placements. All Rights Reserved. Procedures recovered nicely in Q2. BSD Medical Corporation Medtronic Ethicon Endo-Surgery Olympus Corporation Siemens Healthcare Intuitive Surgical .