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 October 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 October 27, 2022, InMode Ltd. announced its third 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 October 27, 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
October 27, 2022	Chief Executive Officer and Chairman of The Board of Directors

Exhibit 99.1

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

$121.2 M, Represents 29% Year-Over-Year Growth

YOKNEAM, Israel, Oct. 27, 2022--InMode Ltd. (Nasdaq: INMD) (“InMode”), a leading global provider of innovative medical technologies, today announced its consolidated financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Highlights:

•	Record quarterly revenue of $121.2 million, an increase of 29% compared to the third quarter of 2021: InMode’s proprietary surgical technology platforms engaged in minimally invasive and<br> subdermal ablative treatments represented 82% of quarterly revenues, while 11% came from InMode’s hands-free platforms and 7% from InMode’s traditional laser and non-invasive RF platforms.
•	GAAP net income of $48.8 million, compared to $44.7 million in the third quarter of 2021; Record *non-GAAP net income of $56.6 million, compared to $47.9 million in the third quarter of 2021.
•	GAAP diluted earnings per share of $0.58, compared to $0.52 in the third quarter of 2021; Record *non-GAAP diluted earnings per share of $0.66, compared to $0.55 in the third quarter of 2021.
•	Quarterly revenues from consumables and service of $13.9 million, an increase of 53% compared to the third quarter of 2021.
•	Total cash position of $486.4 million as of September 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)
---	---	---
	Q3 2022	Q3 2021
Revenues	$121,232	$94,176
Gross Margins	85%	85%
Net Income	$48,789	$44,718
Earnings per Diluted Share	$0.58	$0.52
*Non-GAAP Results<br><br> <br>(U.S. dollars in thousands, except for per share data)
	Q3 2022	Q3 2021
Gross Margins	85%	86%
Net Income	$56,646	$47,910
Earnings per Diluted Share	$0.66	$0.55

*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.

Management Comments

“Once again, we reported a record quarter with 29% top line growth and high profitability. Demand has remained strong despite the anticipated seasonality and the return of summer travel, and this positive momentum continues into Q4. We’re very happy with the successful market endorsement of our strategy as we expand from aesthetics into wellness and improved quality of life categories. We started with the EmpowerRF and we will continue with other categories such as ophthalmology, ENT and others. The EmpowerRF platform for women’s health has exceeded our optimistic expectations, which leads us to increase its revenue target yet again by 33% to $40 million for this year. In addition, we will continue to expand globally and plan on opening two new subsidiaries in Asia and Europe by mid 2023,” said Moshe, Mizrahy, Chairman and Chief Executive Officer.

Shakil Lakhani, President of InMode North America, commented on the financial results: “Our performance in North America continues to be the major growth engine for the company, with an emphasis on the Morpheus 8 becoming one of the most popular minimally invasive procedures. We’ve continued to invest in increasing our brand awareness, including adding Eva Longoria as our new brand ambassador, which is another sign of our commitment to customers and to positive consumer perception.”

“We’ve seen growing adoption of our EmpowerRF platform by an increased number of women’s health and wellness physicians across the U.S. and Canada. The success in improving women’s quality of life is meaningful to InMode, and we intend building on its momentum as we capture more share in this important market,” said Dr. Spero Theodorou, Chief Medical Officer.

Third Quarter 2022 Financial Results

Total revenues for the third quarter of 2022 reached $121.2 million, an increase of 29% compared to the third quarter of 2021.

“Sales of disposables continued to grow year over year and contributed more to the revenue mix, as our platforms are being used more frequently by our customers. Additionally, we successfully increased our gross margins back to the 85% target range,” said Yair Malca, Chief Financial Officer.

GAAP gross margin for the third quarter of 2022 was 85%, like in the third quarter of 2021. *Non-GAAP gross margin for the third quarter of 2022 was 85% and 86% for the third quarter of 2021.

GAAP operating margin for the third quarter of 2022 was 44%, compared to a gross operating margin of 48% in the third quarter of 2021. *Non-GAAP operating margin for the third quarter of 2022 and for the third quarter of 2021 was 51%. The decrease in GAAP operating margin is primarily attributable to change in share-based compensation expense.

InMode reported GAAP net income of $48.8 million, or $0.58 per diluted share, in the third quarter of 2022, compared to $44.7 million, or $0.52 per diluted share, in the third quarter of 2021. On a *non-GAAP basis, InMode reported net income of $56.6 million, or $0.66 per diluted share, in the third quarter of 2022, compared to $47.9 million, or $0.55 per diluted share, in the third quarter of 2021.

2022 Financial Outlook

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

●	Revenue between $445 million and $450 million
●	*Non-GAAP gross margin between 83% and 85%
---	---
●	*Non-GAAP income from operations between $214 million and $217 million
---	---
●	*Non-GAAP earnings per diluted share between $2.28 and $2.30
---	---

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, Oct. 27, 2022, at 8:30 a.m. Eastern Time to discuss the third quarter 2022 financial results.

The Company encourages participants to pre-register for the conference call using the following link: https://dpregister.com/sreg/10171927/f4b117e67a

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=pOSyfnXi

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 October 27, 2022, at 12 p.m. Eastern Time to November 02, 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: 8851334

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> September 30,					Nine months ended<br><br> September 30,
	2022		2021			2022			2021
REVENUES		121,232		94,176			320,700			247,025
COST OF REVENUES		18,765		13,943			52,483			36,745
GROSS PROFIT		102,467		80,233			268,217			210,280
OPERATING EXPENSES:
Research and development		3,166		2,248			9,164			7,004
Sales and marketing		43,062		30,835			113,564			84,067
General and administrative		2,494		2,132			7,533			5,884
TOTAL OPERATING EXPENSES		48,722		35,215			130,261			96,955
INCOME FROM OPERATIONS		53,745		45,018			137,956			113,325
Finance income (expenses), net		189		(65	)		(350	)		407
INCOME BEFORE TAXES		53,934		44,953			137,606			113,732
INCOME TAXES		5,145		235			13,794			1,343
NET INCOME		48,789		44,718			123,812			112,389
Add: Net income attributable to non-controlling interests		-		-			-			(103	)
NET INCOME ATTRIBUTABLE TO INMODE LTD.		48,789		44,718			123,812			112,286
NET INCOME PER SHARE:
Basic		0.59		0.54			1.50			1.39
Diluted		0.58		0.52			1.45			1.31
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic		82,306		82,705			82,494			80,843
Diluted		84,823		86,264			85,120			85,802

INMODE LTD.

CONDENSED CONSOLIDATED BALANCE SHEETS

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

(Unaudited)


Assets
CURRENT ASSETS:
Cash and cash equivalents	77,048	68,136
Marketable securities	334,934	294,530
Short-term bank deposits	74,405	53,248
Accounts receivable, net of allowance for doubtful accounts	28,056	20,236
Other receivables	13,730	12,938
Inventories	35,810	21,026
TOTAL CURRENT ASSETS	563,983	470,114
NON-CURRENT ASSETS:
Accounts receivable	3,766	768
Deferred income taxes, net	3,255	1,334
Operating lease right-of-use assets	5,191	4,321
Property and equipment, net	2,189	1,404
Other investments	600	600
TOTAL NON-CURRENT ASSETS	15,001	8,427
TOTAL ASSETS	578,984	478,541
Liabilities and shareholders’ equity
CURRENT LIABILITIES:
Accounts payable	13,296	8,779
Contract liabilities	12,450	13,805
Other liabilities	32,181	29,266
TOTAL CURRENT LIABILITIES	57,927	51,850
NON-CURRENT LIABILITIES:
Contract liabilities	3,647	2,751
Other liabilities	5,450	4,831
Operating lease liabilities	3,657	3,307
TOTAL NON-CURRENT LIABILITIES	12,754	10,889
TOTAL LIABILITIES	70,681	62,739
TOTAL SHAREHOLDERS’ EQUITY	508,303	415,802
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	578,984	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> September 30,						Nine months ended<br><br> September 30,
	2022			2021			2022			2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		48,789			44,718			123,812			112,389
Adjustments required to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		169			136			462			378
Share-based compensation expenses		7,857			3,192			17,304			8,838
Allowance for doubtful accounts		50			48			402			375
Loss on marketable securities, net		12			26			49			33
Finance expenses, net		586			789			1,527			1,598
Deferred income taxes, net		9			(189	)		156			(391	)
Changes in operating assets and liabilities:
Increase in accounts receivable		(6,926	)		(4,403	)		(11,220	)		(12,478	)
Decrease (increase) in other receivables		887			(4,101	)		(706	)		(4,418	)
Increase in inventories		(6,050	)		(1,784	)		(14,784	)		(4,195	)
Increase in accounts payable		1,463			1,161			4,517			2,474
Increase in other liabilities		4,136			11,157			3,366			16,194
Increase (decrease) in contract liabilities		(5,390	)		(277	)		(459	)		1,195
Net cash provided by operating activities		45,592			50,473			124,426			121,992
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment in short-term deposits		(48,090	)		(25,090	)		(93,701	)		(66,090	)
Proceeds from short-term deposits		30,090			24,090			73,090			62,180
Purchase of fixed assets		(387	)		(254	)		(1,247	)		(757	)
Purchase of marketable securities		(58,982	)		(77,547	)		(97,736	)		(203,274	)
Proceeds from sale of marketable securities		21,236			30,660			48,395			78,642
Net cash (used in) investing activities		(56,133	)		(48,141	)		(71,199	)		(129,299	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of ordinary shares		-			-			(42,637	)		(11,921	)
Exercise of options		550			5,200			915			19,803
Net cash provided by (used in) financing activities		550			5,200			(41,722	)		7,882
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(1,365	)		(376	)		(2,593	)		(585	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(11,356	)		7,156			8,912			(10	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		88,404			61,772			68,136			68,938
CASH AND CASH EQUIVALENTS AT END OF PERIOD		77,048			68,928			77,048			68,928

INMODE LTD.

CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

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

(Unaudited)

	Three months ended September 30,								Nine months ended September 30,
	2022				2021				2022				2021
Revenues by Category:
Capital Equipment revenues - United States		72,920	60	%		56,284	60	%		180,640	57	%		144,614	58	%
Capital Equipment revenues - International		34,383	28	%		28,783	30	%		97,126	30	%		76,030	31	%
Total Capital Equipment revenues		107,303	88	%		85,067	90	%		277,766	87	%		220,644	89	%
Consumables and service revenues		13,929	12	%		9,109	10	%		42,934	13	%		26,381	11	%
Total Net Revenue		121,232	100	%		94,176	100	%		320,700	100	%		247,025	100	%
	Three months ended September 30,												Nine months ended September 30,
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	2022						2021						2022						2021
	%						%						%						%
	United States		International		Total		United States		International		Total		United States		International		Total		United States		International		Total
Revenues by Technology:
Minimally Invasive		84		75		82		73		73		73		84		73		80		70		74		71
Hands-Free		13		8		11		25		5		18		13		7		11		28		7		21
Non-Invasive		3		17		7		2		22		9		3		20		9		2		19		8
		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 September 30, 2022							Three months ended September 30, 2021
	GAAP		Share Based<br><br> Compensation			Non-GAAP		GAAP			Share Based<br><br> Compensation			Non-GAAP
REVENUES		121,232					121,232		94,176			-			94,176
COST OF REVENUES		18,765		(554	)		18,211		13,943			(301	)		13,642
GROSS PROFIT		102,467		554			103,021		80,233			301			80,534
OPERATING EXPENSES:
Research and development		3,166		(857	)		2,309		2,248			(425	)		1,823
Sales and marketing		43,062		(5,879	)		37,183		30,835			(2,208	)		28,627
General and administrative		2,494		(567	)		1,927		2,132			(258	)		1,874
TOTAL OPERATING<br><br> EXPENSES		48,722		(7,303	)		41,419		35,215			(2,891	)		32,324
INCOME FROM OPERATIONS		53,745		7,857			61,602		45,018			3,192			48,210
Finance income (expenses), net		189		-			189		(65	)		-			(65	)
INCOME BEFORE TAXES		53,934		7,857			61,791		44,953			3,192			48,145
INCOME TAXES		5,145		-			5,145		235			-			235
NET INCOME		48,789		7,857			56,646		44,718			3,192			47,910
NET INCOME PER SHARE:
Basic		0.59					0.69		0.54						0.58
Diluted		0.58					0.66		0.52						0.55
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic		82,306					82,306		82,705						82,705
Diluted		84,823					85,453		86,264						86,494

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)

	Nine months ended September 30, 2022									Nine months ended September 30, 2021
	GAAP			Share Based<br><br> Compensation			Non-GAAP			GAAP			Share Based<br><br> Compensation			Non-GAAP
REVENUES		320,700			-			320,700			247,025			-			247,025
COST OF REVENUES		52,483			(1,364	)		51,119			36,745			(804	)		35,941
GROSS PROFIT		268,217			1,364			269,581			210,280			804			211,084
OPERATING EXPENSES:
Research and development		9,164			(2,248	)		6,916			7,004			(1,112	)		5,892
Sales and marketing		113,564			(12,233	)		101,331			84,067			(6,154	)		77,913
General and administrative		7,533			(1,459	)		6,074			5,884			(768	)		5,116
TOTAL OPERATING<br><br> EXPENSES		130,261			(15,940	)		114,321			96,955			(8,034	)		88,921
INCOME FROM OPERATIONS		137,956			17,304			155,260			113,325			8,838			122,163
Finance income (expenses), net		(350	)		-			(350	)		407			-			407
INCOME BEFORE TAXES		137,606			17,304			154,910			113,732			8,838			122,570
INCOME TAXES		13,794			-			13,794			1,343			-			1,343
NET INCOME		123,812			17,304			141,116			112,389			8,838			121,227
Add: Net Income attributable to non-controlling interests		-			-			-			(103	)		-			(103	)
NET INCOME ATTRIBUTABLE TO INMODE LTD.		123,812			17,304			141,116			112,286			8,838			121,124
NET INCOME PER SHARE:
Basic		1.50						1.71			1.39						1.50
Diluted		1.45						1.65			1.31						1.41
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)
Basic		82,494						82,494			80,843						80,843
Diluted		85,120						85,667			85,802						86,059