Intuitive Surgical (ISRG -0.73%), the leader in robotic-assisted surgery, released its third-quarter 2024 results on Oct. 17. The company delivered a robust 17% increase in revenue to $2.04 billion. Non-GAAP earnings per share (EPS) also rose to $1.84 from $1.46.
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Revenue | $2.04 billion | $1.74 billion | 17% |
| Non-GAAP EPS | $1.84 | $1.46 | 26% |
| GAAP net income | $565 million | $416 million | 36% |
| Installed base of da Vinci systems | 9,539 | 8,285 | 15.1% |
Overview of Intuitive Surgical's Business
Intuitive Surgical dominates the market for minimally invasive, robotic-assisted surgical systems with its flagship da Vinci platform. The company continuously innovates, ensuring its product ecosystem meets evolving medical needs. Recent additions like the da Vinci 5 system highlight its commitment to technological advancement, enabling complex procedures with improved precision and efficiency.
Key to its strategy is broadening the installed base of its systems, thereby driving recurring revenue from instruments and accessories. As of the end of Q3, Intuitive's installed base of da Vinci surgical systems was 9,539, up by 15.1% from a year earlier.
Quarterly Highlights
In the quarter, revenue soared by 17% to $2.04 billion. This increase was fueled by strong adoption of its new systems and consistent growth in procedure volumes. Non-GAAP net income climbed to $669 million from $524 million in the prior-year period, contributing to the rise in EPS. The da Vinci 5 system, which the company launched during Q3, saw strong market acceptance. Of the 379 total systems the company placed in the quarter (up from 312 in the prior-year period), 110 were da Vinci 5 systems.
The ongoing expansion of its product lines and international reach also brought regulatory advancements, such as gaining approval in South Korea for the da Vinci 5. Worldwide, the number of procedures performed using da Vinci systems increased by 18% year over year, reflecting a strong and growing demand for these systems.
Moreover, gross margin remained healthy at approximately $1.374 billion. Cash and cash equivalents rose to $8.31 billion, enhancing liquidity and providing management with more flexibility to pursue growth opportunities.
Looking Ahead
Intuitive Surgical maintains a cautiously optimistic outlook. Management underscored its plans for the continued rollout of the da Vinci 5 system, greater global market penetration, and the expansion of its recurring revenue streams, particularly from instruments and accessories. The company expects steady procedural growth and a measured approach to new system placements into 2025.
Investors should monitor Intuitive's progress in navigating international markets, especially where regulatory and competitive dynamics are evolving. The company remains committed to its R&D investments to fuel further innovations and enhancements across its ecosystem.
