Aesthetic surgeons are beginning to adopt advanced technology from InMode Ltd. (NASDAQ: INMD) for fat removal and skin regeneration. The firm is effectively boosting sales of both equipment and process consumables.
Bipolar RF technology is used in InMode Ltd. (INMD) equipment for non-invasive body sculpting, fat loss, wrinkle reduction, and muscle toning. By merely connecting the device to the patient’s body, the technology may frequently deliver deeper and broader outcomes than competing systems, and certain small operations can even be conducted with minimum human assistance.
The selling of equipment, as well as consumables for it, is how INMD makes money. At the same time, consumables sales are increasing, indicating that the company’s technologies are being used more often. Consumables sales, for example, increased by 79 percent to $14 million in the first quarter of 2022, accounting for 16 percent of overall revenue.
InMode Ltd. (INMD) has the benefit of tremendous efficiency in its procedures, making it difficult for competitors to enter the market. The company’s technology is the first and only RF-based non-invasive body contouring device that forever (or permanently) eliminates body fat, according to data from 2021.
Allergan, which sells CoolSculping devices, is the company’s sole true competition in non-invasive cosmetic treatments. This method involves the freezing of fat cells, which are then expelled from the body. Despite the fact that CoolSculpting devices require fewer operations, the outcomes might be uneven.
In 2030, the worldwide RF market is expected to expand by more than 12% annually to $3.2 billion. InMode equipment sales increased by 72 percent in 2021. In the previous three years, gross profit has continuously been above 80% and free cash flow margin has exceeded 38%.
The risk for InMode Ltd. (INMD) is rising inflation, which could lead to a reduction in the cost of aesthetic procedures. So far, however, the company is forecasting first-quarter sales to rise to a range of $415- $425 million, or about 18% YoY. This is a significant slowdown from the 73% sales growth during the pandemic in 2021.
InMode Ltd. (INMD) faces the possibility of growing inflation, which might lower the cost of cosmetic operations. However, the business expects first-quarter sales to increase by 18 percent year over year to a range of $415- $425 million. This is a considerable decrease from the 73 percent increase in sales that occurred during the pandemic in 2021.