Intuitive Surgical Earnings: What You Need to Know
Posted on July 23, 2018 by Medtech[y] Staff
Intuitive Surgical announced another earnings beat last week, bringing in revenue of $909 million, which is a 20% growth compared to $759 million in Q2 of 2017.
The key to Intuitive's continued success is to ability to exceed expectations in procedural growth and system sales. In Q2, the company grew procedure revenue grew approximately 20% and the company shipped 220 da Vinci systems, compared to 166 in Q2 of 2017.
Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased with our customers’ increased use of da Vinci in the second quarter and the financial results that follow. We remain dedicated to working with our customers to deliver superior programs, while continuing to build on our record of innovation - including the recent clearances of our SP surgical system and 3rd generation stapling platform.”
Intuitive Surgical By The Numbers
Q2 2018 Procedural Growth
Q2 2018 instrument and accessory revenue increased by approximately 20% to $476 million, compared with $398 million for Q2 of 2017, primarily driven by approximately 18% growth in da Vinci procedure volume.
General Surgery has helped lead the way. According to Guthart, "We believe acceptance of da Vinci in general surgery in the United States, growth internationally and appreciation of our generation-four platform by surgeons underpins our recent growth.
While domestic growth in prostatectomy and hysterectomy has matured, both hernia and colorectal procedures have shown significant strength, helping the company continue da Vinci procedural growth in the high teens.
Guthart has his sights on continued growth in the future: "There is substantial opportunity for improvement in surgery and our customer base has demonstrated sustained interest in our new approaches to old problems."
Q2 2018 da Vinci System Sales
Q2 2018 systems revenue increased by approximately 25% to $277 million, compared with $221 million in Q2 2017. Intuitive shipped 220 da Vinci Surgical Systems in Q2 2018, compared with 166 in Q2 2017. Breakdown of shipments in the quarter include 44 systems shipped under operating lease arrangements, compared with 27 during the second quarter of 2017.
The install base of da Vinci systems increased 12% year-over-year and the global average selling price was approximately $1.42 million, which is lower than $1.46 million last year, and $1.49 million in the first quarter. The decrease primarily reflects a higher mix of trade-in transactions.
From an international perspective, Intuitive placed 82 systems in Q2 compared with 63 in Q2 of 2017, and 73 in the first quarter.
Intuitive also stated that they would begin rolling out the Sp (single port) system in phases throughout the rest of the year, with the first shipments starting in late Q3.
Guthart commented, "Our first access sites will focus on clinical data generation and customer feedback. Surgeon interest in SP is high and we believe SP to be a platform technology with potential application in a number of surgical specialties."
FDA Clearances in Q2
- Vessel Sealer Extend
- The da Vinci SP Surgical System for use in urology
- The SureForm 60, a single-patient use 60mm stapler