6-K - INMD - Equibles

SECURITIES AND EXCHANGE COMMISSION

    WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

    PURSUANT TO RULE 13a-16 OR 15d-16 OF

    THE SECURITIES EXCHANGE ACT OF 1934

    For the month of July 2022

INMODE LTD.

(Exact name of registrant as specified in its charter)

Tavor Building, Sha’ar Yokneam

P.O. Box 533

Yokneam 2069206 Israel

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ⌧ Form 40-F ☐

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes ☐ No ⌧

On July 28, 2022, InMode Ltd. announced its second quarter 2022 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Exhibit No.	Description of Exhibit
99.1	Press Release dated July<br> 28, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	InMode Ltd.
	By: /s/ Moshe Mizrahy
	Moshe Mizrahy
July 28, 2022	Chief Executive Officer and Chairman of<br><br> <br>The Board of Directors

Exhibit 99.1

InMode Reports Second Quarter 2022 Financial Results; Record Quarterly Revenue of

$113.5M, Represents 30% Year-Over-Year Growth

YOKNEAM, Israel, July 28, 2022--InMode Ltd. (Nasdaq: INMD) (“InMode”), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Highlights:

•	Record quarterly revenues of $113.5 million, an increase of 30% compared to the second quarter of 2021: InMode’s<br> proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 80% of quarterly revenues, while 11% came from InMode’s hands-free platforms and 9% from InMode’s traditional laser and<br> non-invasive RF platforms.
•	GAAP net income of $44.0 million, compared to $40.9 million in the second quarter of 2021; *non-GAAP net income of $50.4 million, compared to $43.9 million in the second quarter of 2021.
•	GAAP diluted earnings per share^(1)^ of $0.52, compared to $0.48 in the second quarter of 2021; *non-GAAP diluted earnings per share^(1)^ of $0.59, compared to $0.51 in<br> the second quarter of 2021.
•	Record quarterly revenues from consumables and service of $15.0 million, an increase of 59% compared to the second quarter of 2021.
•	Total cash position of $443.6 million as of June 30, 2022, including cash and cash equivalents, marketable securities, and short-term bank deposits.
U.S. GAAP Results<br><br> <br>(U.S. dollars in thousands, except for per share data)
---	---	---
	Q2 2022	Q2 2021
Revenues	$113,547	$87,325
Gross Margins	83%	85%
Net Income	$44,048	$40,925
Earnings per Diluted Share^(1)^	$0.52	$0.48
*Non-GAAP Results<br><br> <br>(U.S. dollars in thousands, except for per share data)
---	---	---
	Q2 2022	Q2 2021
Gross Margins	84%	86%
Net Income	$50,401	$43,873
Earnings per Diluted Share^(1)^	$0.59	$0.51

*Please refer to “Use of Non-GAAP Financial Measures” below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP financial results exclude share-based compensation adjustments.

(1) The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

Management Comments

“We are pleased to report another record-setting quarter, with growth and solid profitability across all key metrics,” said Moshe Mizrahy, Chairman and Chief Executive Officer of InMode. “The growing demand for InMode platforms in the U.S. and globally led us to increase our guidance for the full year of 2022 to an unprecedented range of $425 million to $435 million.”

Shakil Lakhani, President of InMode North America, said, “Once again, we saw a robust demand for InMode’s innovative platforms, resulting in another record revenue quarter as well as record sales from consumables and service.”

“We recently received the endorsement of Health Canada for our EmpowerRF platform designed for women’s health,” added Dr. Spero Theodorou, Chief Medical Officer. “In addition to this certification, we continue to receive positive feedback from both patients and physicians in the U.S.”

Second Quarter 2022 Financial Results

Total revenues for the second quarter of 2022 reached $113.5 million, an increase of 30% compared to the second quarter of 2021.

“We are proud to deliver record revenue in the second quarter,” said Yair Malca, Chief Financial Officer. “Despite the global supply chain constraints, InMode was able to successfully manage and control expenses while improving our margins compared to the previous quarter.”

GAAP gross margin for the second quarter of 2022 was 83%, compared to a gross margin of 85% in the second quarter of 2021. *Non-GAAP gross margin for the second quarter of 2022 was 84% and 86% for the second quarter of 2021. This decrease was primarily due to the inflationary pressure on our raw materials and increased level of consumable sales as part of the revenue mix.

GAAP operating margin for the second quarter of 2022 was 43%, compared to a gross operating margin of 48% in the second quarter of 2021. *Non-GAAP operating margin for the second quarter of 2022 was 49% compared to the operating margin of 51% in the second quarter of 2021. The decrease in GAAP operating margin is primarily attributable to change in share-based compensation expense, and the decrease in *non-GAAP operating margin is primarily attributable to change in gross margin.

InMode reported GAAP net income of $44.0 million, or $0.52 per diluted share, in the second quarter of 2022, compared to $40.9 million, or $0.48 per diluted share^(1)^, in the second quarter of 2021. On a *non-GAAP basis, InMode reported net income of $50.4 million, or $0.59 per diluted share, in the second quarter of 2022, compared to $43.9 million, or $0.51 per diluted share^(1)^, in the second quarter of 2021.

(1) The GAAP and non-GAAP earnings per diluted share have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated September. 14, 2021.

2022 Financial Outlook

Management provided an outlook for the full year of 2022, ending Dec. 31, 2022. Based on current estimates, management expects:

●	Revenues between $425 million and $435 million
●	*Non-GAAP gross margin between 83% and 85%
---	---
●	*Non-GAAP income from operations between $204 million and $209 million
---	---
●	*Non-GAAP earnings per diluted share between $2.11 and $2.16
---	---

This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See “Forward-Looking Statements” for additional information.

Use of Non-GAAP Financial Measures

In addition to InMode’s operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, and non-GAAP operating margin. Because these measures are used in InMode’s internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode’s economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode’s GAAP operating results, allows investors to more effectively evaluate and compare InMode’s performance to that of its peers, although InMode’s presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, July 28, 2022, at 8:30 a.m. Eastern Time to discuss the second quarter 2022 financial results.

The Company encourages participants to pre-register for the conference call using the following link:

https://dpregister.com/sreg/10167933/f33d3a2e75

Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers that opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S. Toll-Free Dial-in Number: 1-833-316-0562

Israel Toll- Free Dial-in Number: 1-80-921-2373

International Dial-in Number: 1-412-317-5736

Webcast URL: https://event.choruscall.com/mediaframe/webcast.html?webcastid=CU9qrvpT

At:

8:30 a.m. Eastern Time

5:30 a.m. Pacific Time

3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from July 28, 2022, at 12 p.m. Eastern Time to August 11, 2022, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529

Replay Dial-in Canada TOLL-FREE: 855-669-9658

Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088

Replay Pin Number: 7761650

To access the replay using an international dial-in number, please select the link below:

https://services.choruscall.com/ccforms/replay.html

A replay of the conference call will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio frequency (“RF”) technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode’s future financial or operating performance, including the future performance described above under the heading titled “2021 Financial Outlook.” Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode’s Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2022, as well as risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

Company Contact:<br><br> <br>Yair Malca<br><br> <br>Chief Financial Officer<br><br> <br>Phone: (949) 305-0108<br><br> <br>Email: Yair.Malca@inmodemd.com	Investor Relations Contact:<br><br> <br>Miri Segal<br><br> <br>MS-IR LLC<br><br> <br>Phone: (917) 607-8654<br><br> <br>Email: ir@inmodemd.com

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

	Three months ended<br><br> June 30,					Six months ended<br><br> June 30,
	2022			2021		2022			2021
REVENUES		113,547			87,325		199,468			152,849
COST OF REVENUES		18,946			12,723		33,718			22,802
GROSS PROFIT		94,601			74,602		165,750			130,047
OPERATING EXPENSES:
Research and development		3,183			2,455		5,998			4,756
Sales and marketing		39,653			28,670		70,502			53,232
General and administrative		2,562			1,941		5,039			3,752
TOTAL OPERATING EXPENSES		45,398			33,066		81,539			61,740
INCOME FROM OPERATIONS		49,203			41,536		84,211			68,307
Finance income (expense), net		(918	)		428		(539	)		472
INCOME BEFORE TAXES		48,285			41,964		83,672			68,779
INCOME TAXES		4,237			1,039		8,649			1,108
NET INCOME		44,048			40,925		75,023			67,671
Add: Net income attributable to non-controlling interests		-			-		-			(103	)
NET INCOME ATTRIBUTABLE TO INMODE LTD.		44,048			40,925		75,023			67,568
NET INCOME PER SHARE (1):
Basic		0.54			0.50		0.91			0.85
Diluted		0.52			0.48		0.88			0.79
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) (1)
Basic		82,216			81,700		82,590			79,894
Diluted		84,663			85,762		85,236			85,451

(1) The number of shares have been adjusted retroactively for a 1-for-2 stock split of InMode shares by way of an issuance of bonus shares that occurred pursuant to a resolution of our board of directors dated September 14, 2021.

INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)


Assets
CURRENT ASSETS:
Cash and cash equivalents	88,404	68,136
Marketable securities	299,322	294,530
Short-term bank deposits	55,913	53,248
Accounts receivable, net of allowance for doubtful accounts	21,261	20,236
Other receivables	14,548	12,938
Inventories	29,760	21,026
TOTAL CURRENT ASSETS	509,208	470,114
NON-CURRENT ASSETS:
Accounts receivable	3,685	768
Deferred income taxes, net	2,737	1,334
Operating lease right-of-use assets	5,004	4,321
Property and equipment, net	1,971	1,404
Other investments	600	600
TOTAL NON-CURRENT ASSETS	13,997	8,427
TOTAL ASSETS	523,205	478,541
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Accounts payable	11,833	8,779
Contract liabilities	18,102	13,805
Other liabilities	28,054	29,266
TOTAL CURRENT LIABILITIES	57,989	51,850
NON-CURRENT LIABILITIES:
Contract liabilities	3,385	2,751
Other liabilities	5,339	4,831
Operating lease liabilities	3,678	3,307
TOTAL NON-CURRENT LIABILITIES	12,402	10,889
TOTAL LIABILITIES	70,391	62,739
TOTAL SHAREHOLDERS’ EQUITY	452,814	415,802
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	523,205	478,541

INMODE LTD.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

	Three months ended<br><br> June 30,						Six months ended<br><br> June 30,
	2022			2021			2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		44,048			40,925			75,023			67,671
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		155			128			293			242
Share-based compensation expenses		6,353			2,948			9,447			5,646
Allowance for doubtful accounts		142			287			352			327
Loss on marketable securities, net		23			3			37			7
Finance expenses, net		851			404			941			809
Deferred income taxes, net		169			(101	)		147			(202	)
Changes in operating assets and liabilities:
Increase in accounts receivable		(8,247	)		(3,506	)		(4,294	)		(8,075	)
Decrease (increase) in other receivables		(398	)		1,063			(1,593	)		(317	)
Increase in inventories		(4,660	)		(1,694	)		(8,734	)		(2,411	)
Increase in accounts payable		2,292			313			3,054			1,313
Increase (decrease) in other liabilities		4,105			5,832			(770	)		5,037
Increase in contract liabilities		2,148			151			4,931			1,472
Net cash provided by operating activities		46,981			46,753			78,834			71,519
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits		(22,500	)		(20,000	)		(45,611	)		(41,000	)
Proceeds from short-term deposits		23,000			19,090			43,000			38,090
Purchase of fixed assets		(561	)		(338	)		(860	)		(503	)
Purchase of marketable securities		(17,545	)		(63,482	)		(38,754	)		(125,727	)
Proceeds from sale of marketable securities		15,232			21,180			27,159			47,982
Net cash used in investing activities		(2,374	)		(43,550	)		(15,066	)		(81,158	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares		-			(11,057	)		(42,637	)		(11,921	)
Exercise of options		204			4,711			365			14,603
Net cash provided by (used in) financing activities		204			(6,346	)		(42,272	)		2,682
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(1,077	)		14			(1,228	)		(209	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		43,734			(3,129	)		20,268			(7,166	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		44,670			64,901			68,136			68,938
CASH AND CASH EQUIVALENTS AT END OF PERIOD		88,404			61,772			88,404			61,772

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

	Three months ended June 30,									Six months ended June 30,
	2022					2021				2022				2021
Revenues by Category:
Capital Equipment revenues - United States		62,960	56	%	49,812		57	%	107,720		54	%	88,330		58	%
Capital Equipment revenues - International		35,560	31	%	28,034		32	%	62,743		31	%	47,247		31	%
Total Capital Equipment revenues		98,520	87	%	77,846		89	%	170,463		85	%	135,577		89	%
Consumables and service revenues		15,027	13	%	9,479		11	%	29,005		15	%	17,272		11	%
Total Net Revenue		113,547	100	%	87,325		100	%	199,468		100	%	152,849		100	%
	Three months ended June 30,												Six months ended June 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2022						2021						2022						2021
	%						%						%						%
	United States		International		Total		United States		International		Total		United States		International		Total		United States		International		Total
Revenues by Technology:
Minimal-Invasive		84		74		80		69		73		71		84		72		79		67		75		70
Hands-Free		14		5		11		29		10		22		13		6		11		31		8		23
Non-Invasive		2		21		9		2		17		7		3		22		10		2		17		7
		100		100		100		100		100		100		100		100		100		100		100		100

INMODE LTD.

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

	Three months ended June 30, 2022									Three months ended June 30, 2021
	GAAP			Share Based<br><br> Compensation			Non-GAAP			GAAP		Share Based<br><br> Compensation			Non-GAAP
REVENUES		113,547			-			113,547			87,325		-			87,325
COST OF REVENUES		18,946			(496	)		18,450			12,723		(274	)		12,449
GROSS PROFIT		94,601			496			95,097			74,602		274			74,876
OPERATING EXPENSES:
Research and development		3,183			(866	)		2,317			2,455		(386	)		2,069
Sales and marketing		39,653			(4,459	)		35,194			28,670		(2,014	)		26,656
General and administrative		2,562			(532	)		2,030			1,941		(274	)		1,667
TOTAL OPERATING<br><br> EXPENSES		45,398			(5,857	)		39,541			33,066		(2,674	)		30,392
INCOME FROM OPERATIONS		49,203			6,353			55,556			41,536		2,948			44,484
Finance income (expense), net		(918	)		-			(918	)		428		-			428
INCOME BEFORE TAXES		48,285			6,353			54,638			41,964		2,948			44,912
INCOME TAXES		4,237			-			4,237			1,039		-			1,039
NET INCOME		44,048			6,353			50,401			40,925		2,948			43,873
NET INCOME PER<br><br> SHARE (1):
Basic		0.54						0.61			0.50					0.54
Diluted		0.52						0.59			0.48					0.51
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands) (1)
Basic		82,216						82,216			81,700					81,700
Diluted		84,663						85,366			85,762					86,160

INMODE LTD.

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

	Six months ended June 30, 2022									Six months ended June 30, 2021
	GAAP			Share Based<br><br> Compensation			Non-GAAP			GAAP			Share Based<br><br> Compensation			Non-GAAP
REVENUES		199,468			-			199,468			152,849			-			152,849
COST OF REVENUES		33,718			(810	)		32,908			22,802			(503	)		22,299
GROSS PROFIT		165,750			810			166,560			130,047			503			130,550
OPERATING EXPENSES:
Research and development		5,998			(1,391	)		4,607			4,756			(687	)		4,069
Sales and marketing		70,502			(6,354	)		64,148			53,232			(3,946	)		49,286
General and administrative		5,039			(892	)		4,147			3,752			(510	)		3,242
TOTAL OPERATING<br><br> EXPENSES		81,539			(8,637	)		72,902			61,740			(5,143	)		56,597
INCOME FROM OPERATIONS		84,211			9,447			93,658			68,307			5,646			73,953
Finance income (expense), net		(539	)		-			(539	)		472			-			472
INCOME BEFORE TAXES		83,672			9,447			93,119			68,779			5,646			74,425
INCOME TAXES		8,649			-			8,649			1,108			-			1,108
NET INCOME		75,023			9,447			84,470			67,671			5,646			73,317
Add: Net Income attributable to non-controlling interests		-			-			-			(103	)		-			(103	)
NET INCOME ATTRIBUTABLE TO INMODE LTD.		75,023			9,447			84,470			67,568			5,646			73,214
NET INCOME PER<br><br> SHARE:
Basic		0.91						1.02			0.85						0.92
Diluted		0.88						0.98			0.79						0.85
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic		82,590						82,590			79,894						79,894
Diluted		85,236						85,786			85,451						85,803