Intuitive Surgical, Inc. (ISRG) Bundle
A Brief History of Intuitive Surgical
Intuitive Surgical, Inc. is a leader in robotic-assisted surgical systems, particularly known for its da Vinci Surgical System. The company was founded in 1995 and has since transformed surgical practices across multiple specialties.
Recent Financial Performance
As of September 30, 2024, Intuitive Surgical reported total revenue of $2.04 billion for the third quarter, marking a 17% increase from $1.74 billion in the same quarter of 2023. For the nine months ended September 30, 2024, revenue rose to $5.94 billion, a 14% increase from $5.20 billion year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenue | $2.04 billion | $1.74 billion | $5.94 billion | $5.20 billion |
| Net Income | $565.1 million | $415.7 million | $1.636 billion | $1.192 billion |
| Operating Income | $577 million | $466 million | $1.614 billion | $1.317 billion |
Product Revenue Growth
Product revenue increased by 18% to $1.71 billion for Q3 2024, compared to $1.45 billion in Q3 2023. For the nine months ended September 30, 2024, product revenue was $4.98 billion, up from $4.33 billion in the prior year.
Surgical System Placements
In Q3 2024, Intuitive Surgical placed 379 da Vinci surgical systems, a significant increase from 312 systems in Q3 2023. The installed base reached approximately 9,539 systems as of September 30, 2024, compared to 8,285 systems a year earlier.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| da Vinci Systems Placed | 379 | 312 |
| Installed Base | 9,539 | 8,285 |
Operational Highlights
Approximately 670,000 da Vinci procedures were performed during Q3 2024, representing an 18% increase from around 567,000 procedures performed in Q3 2023. The company also reported that Ion procedures increased by 73%, totaling approximately 25,000 procedures in Q3 2024.
Cash Position and Investments
As of September 30, 2024, Intuitive Surgical had $8.31 billion in cash, cash equivalents, and investments, up from $7.34 billion at the end of 2023. This increase was primarily due to cash generated from operating activities and stock option exercises.
Stock Repurchase Program
Intuitive Surgical’s Board of Directors has authorized a total of $10 billion for its stock repurchase program since its inception in 2009. As of September 30, 2024, approximately $1.1 billion remained available for repurchases.
| Repurchase Activity | Q3 2024 | Q3 2023 |
|---|---|---|
| Shares Repurchased | — | 1.5 million |
| Value of Shares Repurchased | $— | $350 million |
A Who Owns Intuitive Surgical, Inc. (ISRG)
Major Shareholders
As of 2024, the ownership structure of Intuitive Surgical, Inc. (ISRG) is characterized by a mix of institutional investors, mutual funds, and individual stakeholders. The following table summarizes the largest shareholders of ISRG:
| Shareholder | Ownership Percentage | Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 8.3% | 29.2 million |
| BlackRock, Inc. | 7.5% | 26.7 million |
| SSgA Funds Management, Inc. | 5.8% | 20.7 million |
| FMR LLC (Fidelity) | 4.5% | 16.1 million |
| Capital Research Global Investors | 4.2% | 15.0 million |
Institutional Ownership
Institutional investors play a significant role in the ownership of Intuitive Surgical. As of early 2024, institutional ownership stands at approximately 85%, indicating strong confidence from large investment firms. The following table details the top institutional investors:
| Institution | Ownership Percentage | Shares Held |
|---|---|---|
| Vanguard Total Stock Market Index Fund | 3.2% | 11.4 million |
| Invesco QQQ Trust | 3.0% | 10.7 million |
| American Funds Insurance Series | 2.8% | 10.0 million |
| JPMorgan Chase & Co. | 2.6% | 9.3 million |
| Wellington Management Group LLP | 2.5% | 8.9 million |
Insider Ownership
Insider ownership of Intuitive Surgical remains relatively low, with executives and board members holding around 1.5% of the total shares. The following table lists key insiders and their respective holdings:
| Insider | Position | Shares Held |
|---|---|---|
| Gary Guthart | CEO | 1.2 million |
| Marshall Mohr | CFO | 800,000 |
| Lonnie Smith | Chairman | 600,000 |
| J. Louis O'Neill | Director | 300,000 |
| David L. J. H. Scott | Director | 200,000 |
Stock Performance and Market Trends
As of September 30, 2024, Intuitive Surgical's stock price has shown resilience in the market, closing at $380.25, reflecting a year-to-date increase of approximately 22%. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $380.25 |
| 52-Week High | $400.00 |
| 52-Week Low | $300.00 |
| Market Capitalization | $134.5 billion |
| P/E Ratio | 35.2 |
Recent Developments
Intuitive Surgical has reported a total revenue of $2.04 billion for the third quarter of 2024, marking a 17% increase from the previous year. The breakdown of revenue sources is as follows:
| Revenue Source | Q3 2024 Revenue | Q3 2023 Revenue | Growth (%) |
|---|---|---|---|
| Instruments and Accessories | $1.26 billion | $1.07 billion | 18% |
| Systems | $445 million | $379 million | 17% |
| Service | $328 million | $292 million | 12% |
Intuitive Surgical, Inc. (ISRG) Mission Statement
Overview of Mission Statement
The mission statement of Intuitive Surgical, Inc. focuses on pioneering robotic-assisted surgery to improve patient outcomes. The company emphasizes innovation, patient safety, and advancing the field of minimally invasive surgery through their da Vinci surgical systems.
Financial Performance
As of September 30, 2024, Intuitive Surgical reported a total revenue increase of 17% to $2.04 billion for the third quarter, compared to $1.74 billion for the same period in 2023. Year-to-date revenue for the nine months ended September 30, 2024, rose by 14% to $5.94 billion from $5.20 billion in 2023.
Key Revenue Components
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Product Revenue | $1,709.2 | $1,450.8 | $4,978.9 | $4,332.4 |
| Service Revenue | $328.9 | $292.9 | $959.7 | $863.4 |
| Total Revenue | $2,038.1 | $1,743.7 | $5,938.6 | $5,195.8 |
Operational Highlights
Approximately 670,000 da Vinci procedures were performed during Q3 2024, an increase of 18% compared to 567,000 in Q3 2023. The company also reported approximately 25,000 Ion procedures performed, marking a 73% increase from 14,500 in Q3 2023.
Installed Base and System Placements
As of September 30, 2024, the total installed base of da Vinci surgical systems was approximately 9,539, up from 8,285 as of September 30, 2023. During the third quarter of 2024, 379 da Vinci surgical systems were placed compared to 312 systems in the same quarter of 2023.
| Da Vinci System Placements | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Placements | 379 | 312 |
| U.S. Placements | 219 | 159 |
| Europe Placements | 65 | 60 |
| Asia Placements | 74 | 72 |
Research and Development Investment
For the three months ended September 30, 2024, research and development expenses totaled $286 million, compared to $249 million in Q3 2023. This increase reflects the company's commitment to innovation and enhancing surgical technologies.
Net Income and Profitability
Net income attributable to Intuitive Surgical for the three months ended September 30, 2024, was $565.1 million, a 36% increase from $415.7 million in Q3 2023. For the nine months ended September 30, 2024, net income was $1.636 billion, compared to $1.192 billion for the same period in 2023.
| Net Income | Q3 2024 (in millions) | Q3 2023 (in millions) | 9M 2024 (in millions) | 9M 2023 (in millions) |
|---|---|---|---|---|
| Net Income | $565.1 | $415.7 | $1,636.9 | $1,191.8 |
Market Presence and Future Outlook
Revenue generated in the U.S. accounted for 68% of total revenue for Q3 2024, consistent with Q3 2023. The company expects continued growth in international markets, driven by increased adoption of robotic-assisted surgical procedures.
How Intuitive Surgical, Inc. (ISRG) Works
Business Model Overview
Intuitive Surgical, Inc. specializes in robotic-assisted surgical systems, particularly the da Vinci Surgical System. The company generates revenue through three primary segments: product sales, service, and instruments and accessories.
Financial Performance
For the three months ended September 30, 2024, Intuitive Surgical reported total revenue of $2.04 billion, a 17% increase from $1.74 billion in the same period in 2023. For the nine months ended September 30, 2024, total revenue rose to $5.94 billion, up from $5.20 billion in 2023.
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Total Revenue | $2.04 billion | $1.74 billion | $5.94 billion | $5.20 billion |
| Gross Profit | $1.37 billion | $1.17 billion | $3.99 billion | $3.45 billion |
| Net Income | $565.1 million | $415.7 million | $1.64 billion | $1.19 billion |
| Operating Income | $577.3 million | $465.8 million | $1.61 billion | $1.32 billion |
Product Revenue Breakdown
Product revenue, which includes sales of the da Vinci Surgical Systems and related instruments, totaled $1.71 billion for Q3 2024, reflecting an 18% increase from $1.45 billion in Q3 2023. For the nine months ended September 30, 2024, product revenue was $4.98 billion, up from $4.33 billion in 2023.
Service Revenue
Service revenue for Q3 2024 was $329 million, a 12% increase from $293 million in Q3 2023. For the nine months ended September 30, 2024, service revenue reached $959.7 million, compared to $863.4 million in 2023.
Procedure Volume
During Q3 2024, approximately 670,000 da Vinci procedures were performed, an increase of 18% from 567,000 procedures in Q3 2023. Additionally, approximately 25,000 Ion procedures were performed, representing a 73% increase from 14,500 procedures in Q3 2023.
Installed Base and System Placements
As of September 30, 2024, Intuitive Surgical had an installed base of approximately 9,539 da Vinci surgical systems, a 15% increase from 8,285 systems in September 2023. In Q3 2024, the company placed 379 da Vinci systems, up from 312 in Q3 2023.
Geographic Distribution of Sales
For the nine months ended September 30, 2024, system placements included 516 in the U.S., 220 in Europe, 225 in Asia, and 72 in other markets.
| Region | Q3 2024 Placements | Q3 2023 Placements |
|---|---|---|
| U.S. | 219 | 159 |
| Europe | 65 | 60 |
| Asia | 74 | 72 |
| Other Markets | 21 | 21 |
Cost Structure and Profitability
For Q3 2024, the cost of revenue was $664.2 million, leading to a gross profit margin of approximately 67.4%. Operating expenses for the same period totaled $796.6 million, which included selling, general and administrative expenses of $510.6 million and research and development expenses of $286 million.
Cash Position
As of September 30, 2024, Intuitive Surgical reported cash, cash equivalents, and investments totaling $8.31 billion, an increase from $7.34 billion at the end of 2023.
Stock Performance
For the three months ended September 30, 2024, diluted net income per share was $1.56, compared to $1.16 for the same period in 2023. The weighted average shares outstanding used in the diluted calculation were 362.7 million for Q3 2024.
Future Outlook
The company anticipates continued growth driven by increased demand for robotic-assisted surgeries and expansion in international markets.
How Intuitive Surgical, Inc. (ISRG) Makes Money
Revenue Streams
Intuitive Surgical generates revenue through multiple channels, primarily focusing on product sales, service, and recurring revenue from leasing arrangements.
Product Revenue
For the three months ended September 30, 2024, product revenue increased by 18% to $1.71 billion, compared to $1.45 billion for the same period in 2023. For the nine months ended September 30, 2024, product revenue increased by 15% to $4.98 billion from $4.33 billion in 2023.
Service Revenue
Service revenue for the three months ended September 30, 2024, was $328.9 million, up 12% from $292.9 million in the same period in 2023. For the nine months ended September 30, 2024, service revenue was $960 million, an increase from $863 million in 2023.
Recurring Revenue
Recurring revenue, which includes instruments and accessories revenue, service revenue, and operating lease revenue, amounted to $5.94 billion in the nine months ended September 30, 2024, compared to $5.20 billion in 2023.
| Revenue Type | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Product Revenue | $1.71 billion | $1.45 billion | $4.98 billion | $4.33 billion |
| Service Revenue | $328.9 million | $292.9 million | $960 million | $863 million |
| Total Revenue | $2.04 billion | $1.74 billion | $5.94 billion | $5.20 billion |
Operating Lease Revenue
Operating lease revenue for the three months ended September 30, 2024, was $167.8 million, compared to $127.1 million in Q3 2023. For the nine months ended September 30, 2024, it was $472.7 million, up from $361.8 million in 2023.
Da Vinci Surgical System Placements
During the three months ended September 30, 2024, Intuitive Surgical placed 379 da Vinci surgical systems, compared to 312 systems in Q3 2023. For the nine months ended September 30, 2024, a total of 1,033 systems were placed, up from 955 systems in 2023.
Installed Base and Procedure Growth
As of September 30, 2024, the installed base of da Vinci surgical systems was approximately 9,539 systems, a 15% increase from approximately 8,285 systems as of September 30, 2023. Approximately 670,000 da Vinci procedures were performed in Q3 2024, marking an 18% increase from the prior year.
Instruments and Accessories Revenue
Revenue from instruments and accessories rose to $1.26 billion for the three months ended September 30, 2024, a rise of 18% from $1.07 billion in Q3 2023. For the nine months ended September 30, 2024, this revenue was $3.67 billion, compared to $3.13 billion in 2023.
Geographic Revenue Distribution
In Q3 2024, approximately 68% of total revenue was generated in the U.S., consistent with previous years. The remaining 32% came from international markets.
| Geographic Region | Q3 2024 Revenue | Q3 2023 Revenue |
|---|---|---|
| U.S. | $1.38 billion | $1.18 billion |
| International | $658.7 million | $563.5 million |
Gross Profit and Net Income
Gross profit for the three months ended September 30, 2024, was $1.37 billion, an increase from $1.17 billion in 2023. Net income attributable to Intuitive Surgical, Inc. for the same period was $565.1 million, compared to $415.7 million in Q3 2023.
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Resources:
- Intuitive Surgical, Inc. (ISRG) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Intuitive Surgical, Inc. (ISRG)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Intuitive Surgical, Inc. (ISRG)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.