InMode Ltd. reported Q2/19 earnings and announced that international pop superstar Paula Abdul will be its brand ambassador sending shares "Straight Up" 15% as investors "Rush Rush" to purchase shares today.
InMode Ltd. (INMD:NAQDAQ), a global provider of innovative medical technologies that only a few days ago completed an initial public stock offering (IPO), reported second quarter earnings for the period ending June 30, 2019. The firm also gained a lot of attention as it issued a separate release announcing the appointment of pop icon Paula Abdul as a brand ambassador.
In the announcement, InMode reported record revenue of $38.8 million in Q2/19, an increase of 55% over Q2/18. Gross margins in Q2/19 improved to 87%, compared to 84% year-over-year. Operating margin for Q2/19 improved to 41%, compared to 31% in Q2/18, and the company reported net income of $15.8 million, or $0.45 per diluted share in Q2/19, compared to $7.6 million or $0.21 per diluted share in Q2/18.
The company reported a total cash position of $82.8 million, including cash and cash equivalents, marketable securities and deposits. This amount excludes the $70 million proceeds raised in InMode's initial public offering.
Moshe Mizrahy, the firm's CEO and chairman stated, "We are pleased with our second quarter results, which are consistent with both our reported expectations and the positive trends we are continuing to see in our business."
The Q2/19 earnings report comes only a few days after the company announced the closing of its initial public offering on August 12, 2019, of 5,000,000 ordinary shares at an initial public offering price of $14.00 per ordinary share. The aggregate gross proceeds, before deducting underwriting discounts and commissions and other offering expenses, to InMode from the offering were approximately $70.0 million. The shares began trading on the Nasdaq Global Select Market on August 8, 2019, under the symbol INMD.
Yesterday, the company proudly announced that Paula Abdul has agreed to serve as a brand ambassador for InMode in order to share her positive experience with the company's BodyTite, FaceTite and Morpheus8 technologies. Paula Abdul is an international pop icon who made her mark in the entertainment industry as an award-winning dancer and choreographer, singer, actress and television personality with six number-one singles on the Billboard Hot 100, Emmy and Grammy awards, and numerous other accolades.
InMode states that its business is a leading global provider of innovative medical technologies. The firm develops, manufactures and markets devices harnessing novel radio-frequency (RF) technology, leveraging 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. Within the global aesthetics market, the company indicates that its products and solutions are primarily designed to address three energy-based treatment categories: face and body contouring, medical aesthetics and women's health.
InMode's shares opened this morning at $17.42 (+$3.42, +24.43%) over yesterday's close of $14.00. Today, shares have traded as high as $17.50 and are currently trading at $16.24 (+$2.24, +16.00%), while the broader market is seeing major losses.
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.