Earnings Call Transcript - INMD Q4 2021

Operator, Operator

Good day. Welcome to the InMode Ltd.’s Fourth Quarter and Full Year 2021 Earnings Results Conference Call. All participants will be in a listen-only mode. There will be an opportunity to ask questions after today’s presentation. Please note today’s event is being recorded. I would now like to turn the conference over to Miri Segal, President of MS-IR. Please go ahead.

Miri Segal, President of MS-IR

Thank you, operator and everyone for joining us today. Welcome to InMode's fourth quarter and full year 2021 earnings call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements, and the Safe Harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please download one from the Investor Relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. Thus, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them, except as required by law. With that, I'd like to pass the call over to Moshe Mizrahy, Chairman and CEO. Moshe, please go ahead.

Moshe Mizrahy, Chairman and CEO

Thank you, Miri. And thank you all for joining our fourth quarter and full year 2021 earnings call. With me today are Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer; Yair Malca, our CFO; Shakil Lakhani, our President of North America; Dr. Spero Theodorou, our Chief Medical Officer; and Rafael Lickerman, our VP Finance. We will all be available for a Q&A session after our prepared remarks. Once again, we have the pleasure of announcing a record quarter, with revenue of $110.5 million and $357.6 million for the full year. An increase of 47% and 73% compared to the same period last year, crossing the $100 million quarterly revenue marked a symbolic and meaningful achievement for our company. We continue to achieve strong positive profitable growth. Net income for the quarter on a GAAP basis was $52.7 million and $55.2 million on a non-GAAP basis. For the full year of 2021, net income reached $165 million on a GAAP basis and $176.3 million on a non-GAAP basis. As a result of our strategy to focus on selling more systems globally, sales of capital equipment represented 89% of our total revenue in the fourth quarter. Sales from consumables and services increased significantly and reached record volume every quarter. These sales accounted for 11% of total revenue in the fourth quarter and for the full year of 2021. By launching new platforms and innovative modalities and growing our install base in the U.S. and globally, we expect consistent growth in consumable revenue to become a more significant part of our revenue mix. I would like to highlight the ongoing growth from our minimally invasive and ablative technologies, which now account for 73% of our revenue compared with 65% last year. Hands-free devices generated 17% of our revenue and non-invasive RF and laser platforms represented the remaining 10%. The product line mix for the full year was 72% for minimally invasive, 20% for hands-free, and 8% for non-invasive RF and laser platforms. Looking at the international side of the business, fourth-quarter sales outside the U.S. accounted for $36.3 million, a 69% increase compared to the same quarter last year. Full-year results reached $120.3 million, a 112% increase compared to 2020. These figures represent 34% of our total revenue for all of 2021 and 33% of our total revenue for the fourth quarter. InMode currently operates in 71 countries, having added 17 more countries in 2021. We also expanded our existing operation in Italy by establishing a subsidiary there. We see most of the growth coming from regions where we are already involved, yet there is opportunity in new territories. Furthermore, despite facing serious global supply chain obstacles in 2021, we successfully delivered every system within 10 days of receiving an order. We would not have done that without our hardworking and dedicated employees and partners. We value their contribution and thank them for it. As for 2022, we're continuing to evaluate the impact of the Omicron and the BA.2 COVID variant on our business that we do in every territory. We hope that the current wave of COVID will pass and will be the last one, so that business across the world will return to normal soon. Now, I would like to turn the call over to Shakil, our President in North America. Shakil?

Shakil Lakhani, President of North America

Thanks, Moshe and everyone for joining us. InMode ended the fourth quarter and 2021 with another record performance and the successful launches of the EvolveX and EmpowerRF platforms. Sales from capital equipment were the main contributor to our quarterly revenues with $98.6 million in Q4 and $318.2 million for all of 2021, with an install base of 11,600 units. Additionally, as Moshe mentioned, as our install base grows and our systems are used more frequently, the number of disposables continues to reach new records as well. The U.S. remains the leading market and was the biggest contributor to our top-line, with total fourth-quarter sales amounting to $74.2 million compared to $53.7 million in the same quarter of 2020, a 38% increase. Despite new COVID variants causing another surge across North America, physician offices in the fourth quarter were the busiest they've been all of 2021. Demand for minimally invasive technologies has been steadily increasing, supporting our growth in the U.S. and globally. With the launch of EmpowerRF, we've seen significant interest from physicians in the women's health space. Currently, our focus is on North America. However, we will gradually expand to the rest of the world. We plan to continue hiring new sales staff for the North American market, which will increase top-line growth as proven in previous years. We're very grateful to our team and their continued commitment; we would not be as successful as we are without each and every individual. I will now hand over the call to Yair for a review of the financial results in more detail. Yair?

Yair Malca, CFO

Thanks, Shakil and good day everyone. Now I'd like to break down the numbers for the quarter and the year in greater detail. Total revenue in the fourth quarter of 2021 increased 47% year-over-year to $110.5 million with a gross margin of 85% on a GAAP basis. For the full year 2021, revenue totaled $357.6 million, an increase of 73% compared to 2020. Sales of minimally invasive and subdermal ablative technologies in the fourth quarter of 2021 grew 64% year-over-year. The geographical revenue mix in Q4 was 67% in the U.S. and 33% internationally, compared to 71% and 29% for the same quarter in 2020, respectively. International sales increased year-over-year by 69%. Capital equipment in the fourth quarter accounted for 89% of our revenue, and consumable and service revenues represented the remaining 11%, identical to the ratio for the full year. GAAP operating expenses in the first quarter were $39.5 million and $136.5 million for the full year of 2021, a 35% and 33% increase year-over-year, respectively. Sales and marketing expenses increased 40% in Q4 compared to the fourth quarter of 2020 and 38% for the full year 2021 compared to last year. This is a result of the improvement in the COVID status in certain countries and regions around the world, especially in the U.S. where we saw an increase in in-person marketing events. Share-based compensation decreased to $3.1 million in the fourth quarter of 2021, compared to $3.2 million in the fourth quarter of 2020, and to $12 million for all of 2021 from $12.8 million in all of 2020. On a non-GAAP basis, operating expenses totaled approximately $37.5 million in Q4 of 2021, compared to operating expenses of $26 million in the same quarter of 2020, an increase of 44%. Non-GAAP operating expenses for the full year of 2021 were $126.4 million, compared to $90 million in the full year of 2020, a 40% increase. GAAP operating margin was 49% in the fourth quarter and 47% for all of 2021 compared to 47% and 35% for the same periods in 2020. Non-GAAP operating margin was 51% in the fourth quarter and 50% for all of 2021 compared to 51% and 42% for the same period in 2020. Our profitability in the quarter and during 2021 was remarkable. GAAP diluted earnings per share for Q4 2021 was $0.61, compared to $0.43 per diluted share in the fourth quarter of 2020 and $1.92 for the full year of 2021 compared to $0.89 for the full year of 2020. Non-GAAP diluted earnings per share for Q4 2021 was $0.64, compared to $0.47 per diluted share in the fourth quarter of 2020 and $2.05 for the full year of 2021 compared to $1.06 for the full year of 2020. We ended 2021 with a very strong balance sheet. As of December 31, 2021, the company had cash and cash equivalents, marketable securities, and deposits of $415.9 million. On the cash flow front, the company generated $52.9 million from operating activities for the fourth quarter and $174.9 million for all of 2021. I will now turn over the call back to Moshe.

Moshe Mizrahy, Chairman and CEO

Thank you, everybody. I believe we now open the Q&A session. Operator?

Operator, Operator

Thank you. We will now begin the question-and-answer session. Our first question today comes from Matt Taylor with UBS. Please go ahead.

Matt Taylor, Analyst

Good morning. Thanks for taking the question. So I wanted to start off, you mentioned Omicron in the press release and in your comments. And I guess I just wanted to get some thoughts from you about how disruptive that has been in Q1. Has that had any impact on your views for the rest of the year and just any color on recent...

Moshe Mizrahy, Chairman and CEO

Yeah, this is Moshe. Hi, Matt. Well, I cannot answer what would be the effect on the full year. But one thing I can tell you that right now there are some countries which are totally closed. And we have some slowdown, for example, in China. I'm sure you know that they have adopted a zero-case program. They don't allow people to travel even within their territory. They don't allow people to travel between cities. So our salespeople in China right now are very limited in the way they can do business. They try to overcome it. Also in Europe, there are countries under lockdown like the Netherlands and Austria, where hopefully soon they will get out of it. I believe that sometime in February or maybe early March, business will go back to normal. But we continue, as I said, to evaluate the situation, country by country, territory by territory. You know, we are lucky that it is not affecting the United States as of now. But with the Omicron and the new variant that just came which create another few issues in some countries, we will see what will happen.

Matt Taylor, Analyst

Thank you, Moshe. Just to clarify, you are now operating in many countries, and you mentioned a few. What percentage of your revenue comes from those countries that are experiencing more severe lockdowns?

Moshe Mizrahy, Chairman and CEO

China is a significant growth driver for us. I believe that in the first quarter, our performance will be lower than what we achieved in the fourth quarter, but hopefully not by much. Approximately 10% of the countries where we operate may experience some impact. Beyond that, we will need to monitor the situation in the coming weeks.

Matt Taylor, Analyst

Okay, great. Thanks for that. And then I just want to ask one about margins and supply chain. It seems like you've been doing a good job managing through these challenges keeping your margins really high here. Is there anything that investors should be concerned about in terms of disruption or increased costs? And how conservative are you being on your margin guidance for 2022?

Moshe Mizrahy, Chairman and CEO

Well, we managed very well the situation in 2021, as we go through the supply chain. I'm sure you know that we have established a red team in Israel that every time we had a problem with components and with subassemblies, we managed to overcome it because we have more than one supplier per each component and each subassembly. Things are not getting better. That's something that I can tell you right away. The supply chain is not improving. I don't say it's getting worse. But as we see now at the beginning of 2022, we still see some difficulties and we foresee that during 2022 it will continue. I can give you an example of logistics: A container formation to North America used to cost $3,500. Now the cost is $12,000. But we managed to overcome it by utilizing some kind of special shipping at a low cost. I believe we will overcome the supply chain challenges like we did in 2021. And we deliver everything within a week or 10 days of every order. We do our best. But I know from some of our competitors and some other companies in the medical field that they are giving now delivery times to customers of 6 or 9 months. We did not do that. But yes, we are flexible. And I would say that hopefully, it will not affect us.

Matt Taylor, Analyst

Okay, maybe just ask one more; I'd like to ask one on the pipeline and more of a clinical, I mean, for Spero. We’d just left with thoughts on Empower, if you're still feeling like $20 million or $25 million I think you've talked about is a good number for ’22? And maybe talk about some of the data that you're generating around it, and whether that could develop into more kind of medical applications from Empower in the future.

Spero Theodorou, Chief Medical Officer

I’ll let Moshe handle the first part of that question, Shak.

Moshe Mizrahy, Chairman and CEO

Well, if the question is whether or not we will do what we anticipated for 2022, which is worldwide $20 million? I think, yes, I think we will do it. North America, and we intend to introduce the platforms in other parts of the world as well. But I think, Spero, what Matt asked is about the clinical data.

Spero Theodorou, Chief Medical Officer

Sure. Thank you, Matt. Great question. We're always very conservative when we're discussing female health and wellness. Because obviously, the standards there as regards to aesthetics are a little different. However, we did do a soft launch and we're getting feedback continuously across the country from several urogynecologists and gynecologists. As you know, urogynecologists are the group that is probably the most critical and the toughest group to penetrate, just as was in plastic surgery. And this is where we started. Because we believe we have a product that has a lot of staying power. We wanted them to buy in and adopt and help us and sort of guide us through this process. And I can tell you right now that the results have been very, very encouraging. They're extremely excited. We have ways to go, absolutely. But the preliminary data that's coming back is pretty remarkable. Typically, we look at a number of treatments and some of the data shows that we go one to three treatments typically for what this new device is doing, especially regarding vaginal intravaginal microneedling. And we want to see how far we can push things just with one treatment. And we saw that the results are very strong. We're very, very happy to see that our preliminary results are coming back in this fashion. Now, as you know, Matt, this is a marathon. And we're always very conservative on the way we look at our data and the way we present it. But I can tell you right now, the excitement is palpable. I'm very, very happy to say that Shak can probably reiterate the same thing, that feedback and the excitement across the board is something that we're very, very happy to have. And I'll leave it at that for now. But because a lot of the things that we're doing are in the midst of publication, as you know. So everything we do is peer-reviewed; everything we try to put out there is going to be published. And our adoption rate for KOLs is we always take the hard way first, as you know, and that pays us in dividends. So urogynecologists, the toughest group, we have some of the top KOL leaders in the country. We're just continuing doing studies with them and opening doors with this group. I can tell you right now, they're very excited.

Matt Taylor, Analyst

Thank you very much, guys.

Operator, Operator

The next question comes from Kyle Rose with Canaccord. Please go ahead.

Kyle Rose, Analyst

Great, thank you for taking the questions. Moshe, you talked a lot about the growth in the consumable side. And with the installed base, you have expectations for that to continue to grow. Can you maybe just kind of help us flush that out a little bit more? I mean, does that mean you expect to see consumables and service revenues go from 11% to 12% next year? Or could we see it move closer towards 15%? Just trying to really understand what that looks like, now that you've got over 11,000 systems placed globally?

Moshe Mizrahy, Chairman and CEO

Well, I can tell you, hi, this is Moshe. I can tell you that in the last quarter, we sold 132,000 disposables compared to the third quarter where we sold only 94,000. So this is growing. But as long as we continue to install or to enlarge our install base, and by the way, in the fourth quarter, we sold more than 1,300 systems. So it went up from 10% to 11%. With the install base of 11,600 systems, that's what we have right now on the market; we have something like, I would say close to more than 500,000 disposables every year. And don't forget not all the systems that we sell need the disposable. I would say that a little bit more than 50% or 55%, maybe 60% are using disposables and go all the way to the subdermal set. As we grow, all of our new platforms are designed to have disposables; we will not design additional platforms without any disposables. So in the future, once the install base reaches, I would say to 20,000 or 25,000, I assume that the disposable revenue will grow to a neighborhood of I would say 14% to 15% of the total revenue. But again, I would like to say it again, we're not always a razor blade company. We do not sell the system for less or do not give the system for free just to charge a high price for disposables. We know that some companies in the medical aesthetic did it in the past, and they failed. Therefore, we charge for the system. And we price the disposables at a reasonable price to encourage doctors to use more and more and to have more treatments. I think this is the right approach and the right philosophy. And this is basically our strategy.

Kyle Rose, Analyst

Great, I appreciate the color there. And, I think we've already gotten some good insights on Empower. Maybe I'm wondering if we could get some commentary understood the launch of EvolveX. And just what you're seeing there, whether it's upgrades from existing customers or continued penetration from new customers there. Maybe just commentary on that launch would be helpful.

Moshe Mizrahy, Chairman and CEO

Shakil, can you answer that?

Shakil Lakhani, President of North America

Sure. We've been seeing a combination of RF and EMS devices. While some upgrades are planned for our existing customers to ensure they have the latest technology, we're also focusing on new business opportunities. We have an ambitious plan in place, as mentioned by Spero, regarding Empower and Evolve. We've taken the time to ensure everything is ready in terms of efficacy, safety, and results. Now that we're confident in these aspects, we're moving into the hard launch phase for both Empower and EvolveX, and we feel optimistic about the prospects for both our customers and ourselves. There has been excitement around the launches, and the initial results have been quite promising, particularly in terms of safety. Overall, we're feeling positive about the situation.

Moshe Mizrahy, Chairman and CEO

Spero, do you want to talk a little bit?

Spero Theodorou, Chief Medical Officer

When discussing incontinence, the previous standard was a 50% improvement in three months, which I believe is quite low given the current technology. This benchmark essentially means a woman who leaks urine might think that’s acceptable. If we aimed for that, we wouldn’t have stayed in business. We focus on achieving 85% to 90% clinical results before going to market because people won’t pay out-of-pocket for anything less. We’re applying this approach to female health and wellness. Early results are exceeding the 50% improvement after three months that’s standard right now, and we're very encouraged. Our goal is for patients who pay cash for treatments not covered by insurance to expect an 80% to 90% improvement. Feedback from doctors and our data confirm we’re surpassing that benchmark. I'm cautiously optimistic, as these results are promising and comparable to what we see in aesthetics. I'm excited about the direction we’re heading and appreciate Moshe's support. Our aim is to redefine how female health and wellness issues are addressed, and I believe we're making significant progress.

Kyle Rose, Analyst

Sir, can you talk a little bit about EvolveX?

Spero Theodorou, Chief Medical Officer

Sure. So I mean, it's important to understand that when it comes to radio frequency and heating and muscle and all that sort of thing, we were the first to actually look at that space. And I can tell you this much. Shak and I were talking about this, and he's like, 'Well, how about we are preheating the muscle just as your workout?' There's a whole history of heating the muscle and rehabilitation for athletes and injured athletes. So the ability to be able to preheat the muscle and then activate it with EMS is something that we started doing early on. We did that because it's a function of our different hand pieces, right? We have RF hand piece, we have EMS hand piece. So taking that ability and bringing it over to EvolveX and saying, okay, now we have a hand piece that can do both at the same time is great. But you can also uncouple it. What does that mean? Well, everybody is different. Everyone's requirement is different. So having the ability to change things around to be able to come and say, 'What do you want? You want your muscles bigger, or do you want the fat gone?' Because there are people who say, 'Okay, I don't want to lose all this fat,' for example. So all these things, the more any device or any platform that respects the individuality and the changes in the body habitus of every patient, and you're able to change things around like that, is great. Because everyone is sort of unique. Transform and EvolveX do that. So I could do RF with EMS, preheat the muscle and then activate it. I could do EMS on its own. I could do RF on its own. So that is sort of the way we look at things in plastic surgery when we do minimally invasive and invasive surgery. And we've brought that over to non-invasive, and that ability to change things around to couple and uncouple is sort of something that Mishka was great at delivering. We find a big resonance in our customer base to be able to do that as well because it's mimicking real life in the way clinical results are being addressed.

Kyle Rose, Analyst

Thank you very much for taking the questions.

Operator, Operator

Next question comes from Michael Matson with Needham & Company. Please go ahead.

Michael Matson, Analyst

I wanted to ask about the EPS guidance. By my calculations, it seems that there is a tax rate headwind, but it also suggests an operating margin decline from 2021. Is there a reason to expect this, or is this just a conservative approach on your part?

Moshe Mizrahy, Chairman and CEO

So we always aim to be conservative, as you know. In addition, we do plan to invest more in sales, marketing, and some more marketing activities in addition to clinical studies. And so this year, we expect to have slightly higher operating expenses. But overall, we're looking at a 48% operating margin; it's still quite remarkable. And add into that around, 2022 going to be the first year, as you know, that we start paying taxes after a 10 years break. That would come out to be around 10%, we estimated at this point, at least. And as I mentioned, we always tend to be conservative when we can.

Michael Matson, Analyst

Okay, I understand. Your cash balance keeps increasing. The stock has decreased significantly and may actually be undervalued when assessed on a price-to-earnings basis. Would you consider conducting a share repurchase?

Moshe Mizrahy, Chairman and CEO

Well, Mike, we did. So far, we did close to 1.5 million shares that we bought back in the last, I would say, less than a year. We still have a way to go. The Board of Directors gave us the permission to continue to buy back shares, and we will continue. I'm not saying that we will spend $200 million on that, but we'll do it. We'll do it on a daily basis. Yes, you're right. We have more than $400 million in cash, close to $420 million in cash. We are exploring some opportunities for M&A. But we did not find anything that fits our portfolio yet. One thing I can tell you, as we said before, we will not buy a laser company because lasers are becoming a commodity in medical aesthetics. We need to find something that complements our portfolio, either in technology, marketing, sales network, something that will equate to two plus two equaling five. But nowadays it is challenging to find something at a reasonable price. But yet, we have a very robust R&D pipeline with close to 15 projects. We're releasing two projects every year. So the organic growth will continue to be the most I would say growth engine for InMode, at least in the next two years.

Michael Matson, Analyst

Okay, got it. And then just looking at the different product categories, the Hands-free seems to have been down year-over-year for two quarters in a row. I mean, I would assume that's mainly just purely the comps from COVID where that was kind of benefiting back in 2020. And conversely, non-invasive has been strengthening recently, that's a similar issue; just easier comps. But I was just curious if there's anything else going on there aside from the comps in those two categories?

Moshe Mizrahy, Chairman and CEO

Well, the Hands-free, when we came up with the Hands-free to the market, we knew that this is not going to be more than 20% of our business. Our main category is minimally invasive and ablative where we can take operations from the surgical, from full surgery and full anesthesia and bring them to the doctor's office. This is exactly what the Empower is doing. And the Empower is minimally invasive because you basically penetrate the skin and perform some fractional RF as well. We will continue to develop products that will have on one hand, be more surgical, the non-surgical and on the other end will have some disposables as well. So Empower is a complementary technology for us. It is not going to be 50% of our business. That non-invasive RF and the laser, which I call it a commodity category. We have a lot of competition from many companies. This is not the main category for us. And it is good because it's a very competitive market with very low gross margin, with overcapacity, with price per unit, which is much lower than what we can charge without any IP protection. Lasers were invented 40 something years ago. There was no IP protection anymore. Therefore, we try to concentrate on where we have a competitive advantage. I believe that we're very happy with the breakdown of the category. More than 70% are in the area where we can protect the technology and get nice prices for the system. 20% will be there Hands-free. And I hope it will continue; we're going to bring to the market a second generation of the Hands-free devices. The laser and the regular RF non-invasive RF will continue to be between 8% to 10% of our business, and that breakdown will continue in the future.

Michael Matson, Analyst

Okay, got it. Thank you.

Operator, Operator

Next question comes from Jeff Johnson with Baird. Please go ahead.

Jeff Johnson, Analyst

Thank you. Good morning, guys. Maybe just a couple of clarifying or follow-up questions on things that have been discussed so far. So Moshe, just your comments there on the Hands-free. I mean, and trying to put that together with Shak’s comments on EvolveX. As EvolveX hopefully ramps some this year, does Hands-free continue to decline year-over-year for the next couple of quarters until we kind of anniversary through those four really tough comps? Just how do we think about the year-over-year performance of Hands-free in the next couple of quarters?

Moshe Mizrahy, Chairman and CEO

No, we did not say that it will go down. The only thing I said is it will remain between something like 18% to 20% of our total business. But as the business will grow, the Hands-free also will grow. I mean, the Transform and EvolveX is the second generation of the Evolve. Hopefully, in 2022, we'll bring the second generation for the Evoke for the face Hands-free as well to maintain the competitive advantage. The fact that we came up with EMS and RF combined in the same modality gives us a major competitive advantage against all the other companies in the Hands-free currently. So I don't think Hands-free will go down, it will continue to be a complementary technology for the doctors. But to tell you that it will be more than 20% of our total business, I don't think it will. It will maintain the same level and the same percentage as part of the total portfolio.

Jeff Johnson, Analyst

Okay, that's helpful. Thank you. And just going back on Empower. Look, I understand you guys are a cash paid business, it's a fantastic place to be from a consumer-facing standpoint, things like that. But if some of those urinary incontinence and urine loss numbers are as good as they are, and even if the path might be extended a couple of years, would it take to get actual reimbursement? Would there ever be a reason to go down the path of trying to get a reimbursement code? It would seem like it would open the market up so much more. And if the effect is so strong, it would seem like it would be good for the patient as well. So just how to think about reimbursement commercial pay versus cash pay for something like an Empower procedure on UI?

Moshe Mizrahy, Chairman and CEO

Let me try to answer, and I will hand it out to Spero maybe to elaborate more. We're not against reimbursement. We never said that. In the future, we will continue to develop some indications for women's health, which might need reimbursement. As of today, the Empower with the four modalities: the FormV, the Morpheus8V, the VTone, and Aviva, we feel like private money is the best business model for this platform. To tell you that in the future we will not go into reimbursement indications, we might go, and we're developing some indications like that today.

Spero Theodorou, Chief Medical Officer

Moshe, that's a great question, by the way. A lot of companies will spend a lot of time going down the reimbursement pathway and not generating any revenue at all. At one point, hoping that at some point, after burning through all that cash, they'd be able to go down that route. Getting breakthrough designation, as we all know, is very hard to do. But I can tell you this: Absolutely, we want to change the way women's health is being done. And we are in a unique position to have cash-based procedures that support our research, support indications, and support the FDA—all those things that we can do in parallel. That's a unique position to be in. All this data we're collecting and everything that we're looking at, along with the types of KOLs we're bringing aboard and the types of academic establishments that we’re engaging, it's all building a foundation for the future. So yes, we're not opposed, on the contrary; we want to be able to open the market. But we're in a unique position to do these things with a cash-based foundation, which is quite different than most companies out there. It's sort of pass or fail for companies when they're doing these sorts of things. Does that answer your question?

Jeff Johnson, Analyst

It does. Thank you. That's helpful. And then last one, I promise just on the competition side; Moshe, I mean, I totally agree with you. Docs do not like testing click fees or per-use fees. I think the model is much as investors want to see more recurring revenue, I get it. The model of charging a full market price for the system itself and a lower price for the consumable is surely what those doctors appreciate. But on the competitive side, there is some noise out there from a company that has some good skin tightening data, but they are charging a very high consumable price as well. So one, just kind of help us understand the competition in MI skin tightening right now with this newer competitor that has good skin tightening data, but the consumables are high.

Moshe Mizrahy, Chairman and CEO

Well, I assume you are talking about Thermage, which is with Solta. They just announced that they're going public, and they released their prospectus. And in their prospectus, they have three quarters something like 75%, disposable and 25% platforms. But don't forget Thermage is a 25 years old company. They're on the market for a long time. We are on the market only five or six years, 20% of the time of the 25 years that they are. So they have a bigger install base, and they sell fewer platforms and sell more consumables. I think that one day, we will sell more consumables and it will be much higher than 10%. But it takes time to build the install base worldwide. Once the install base is much larger than what we have today. I assume Thermage has much more than 10,000 systems installed worldwide, especially in Asia, where they're very strong. 70% of the business is in Asia. I believe that we will also see that our disposable proportion of total revenue will be higher. Right now, we're still a young company. And as a young company with only 11,000 systems installed, the revenue coming from the disposables is growing, and it's growing. It went from 10% to 11%. But don't expect that to go to 20% over three quarters. It will go slowly, but it will go nicely. We see more and more treatments being done. We see more and more disposables being bought from us. But at the same time, we see a lot of new platforms that we install in the market. New doctors need some time before they start doing 10 cases per week. So this is a learning curve. We're all wide on the learning curve. One day, we will be...I don't want to say like Solta in terms of time and market, but the disposables will become a bigger part of our revenue.

Jeff Johnson, Analyst

Thanks. And maybe we can take it offline in the follow-up call, Moshe. I was actually referring to a different company, the Renuvion, Helium procedure. But again, maybe in the interest of time, we can just talk offline. Thank you.

Spero Theodorou, Chief Medical Officer

We're happy to send you an article where we did a comparison study with them. So it just got published last week.

Moshe Mizrahy, Chairman and CEO

Yeah, of course. He's talking about J-Plasma. Understood. Okay.

Operator, Operator

This concludes our question-and-answer session. I would now like to turn the conference back over to Moshe Mizrahy for any closing remarks.

Moshe Mizrahy, Chairman and CEO

Thank you, operator. Thank you. Thank you all for joining our fourth quarter 2021 and the full year 2021 earnings call. I want to take the opportunity to thank all of our people around the world in all of the 72 countries - 71 countries that we operate in. I want to thank the salespeople; I want to thank the engineering team for working very hard. Special thanks for the logistics and manufacturing and the supply chain people that managed to supply everything on time in a tough year like 2021. I am sure that they will continue to do that. Thank you all. See you soon in the next earnings call.

Operator, Operator

This conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.