Intuitive Surgical's latest 10-K filing for the fiscal year ending December 31, 2024, provides a detailed insight into the company's financial condition, operations, and future outlook.
Product Portfolio and Expansion: The company's da Vinci surgical systems enable minimally invasive surgery (MIS) and have been widely adopted for certain surgical procedures. Intuitive Surgical has commercialized various da Vinci surgical systems, including the da Vinci SP surgical system and the next-generation da Vinci 5 surgical system. The da Vinci SP surgical system has received regulatory clearances in various countries and is being commercialized in select major European countries. The da Vinci 5 surgical system has also received regulatory clearances in South Korea and is in the regulatory process in Japan and Europe. The company offers approximately 70 different multi-port da Vinci instruments to provide surgeons with flexibility in choosing tools for specific surgeries. Intuitive Surgical commercialized the Ion endoluminal system, a flexible, robotic-assisted, catheter-based platform for minimally invasive biopsies in the lung.
Impact of COVID-19: The COVID-19 pandemic negatively impacted procedure volumes during outbreaks, but the company observed increased procedure volumes following the outbreaks due to the treatment of patients in backlogs. In 2024, the impact of patient backlogs on procedure volumes was less significant compared to 2023.
Macroeconomic Environment: The company highlighted potential adverse effects on its operations and liquidity due to uncertainty surrounding macroeconomic and geopolitical factors, including supply chain constraints, inflationary pressure, elevated interest rates, and conflicts in various regions. Supply chain constraints have improved to pre-COVID-19 pandemic levels, but isolated residual stresses and elevated material and labor prices persist. * Hospitals continue to face challenges with staffing, cost pressures, and financial concerns that could impact the number of da Vinci procedures performed or surgical systems placed.
Business Model and Revenue: Intuitive Surgical generates up-front revenue from the placement of da Vinci surgical systems through sales or sales-type lease arrangements and recurring revenue over time through fixed-payment or usage-based operating lease arrangements, as well as from the sales of instruments, accessories, and services. Recurring revenue, including instruments and accessories revenue, service revenue, and operating lease revenue, represented 84% of total revenue in 2024, showing growth compared to previous years.
As a result of these announcements, the company's shares have moved -1.4% on the market, and are now trading at a price of $571.88. For more information, read the company's full 10-K submission here.
