Please go ahead, sir. With me today, we have Gary Guthart, our CEO; Marshall Mohr, our CFO; and Jamie Samath, our senior vice president of finance. Q2 growth was driven by particular strength in benign procedures, including bariatrics, hernia repair, cholecystectomy, and benign hysterectomy, reflecting in part, we believe, a partial catch-up in these procedures related to the previous deferral of elective surgeries. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. 2021 : 2022 : 2021 : Revenue $ 12,789 $ 10,997 $ 45,520 $ 45,183 : Cost of goods sold : 3,986 . I just wondered, are you suggesting or should we be thinking that we could be in the front of a new wave of capital acquisition, with again, capital released because of the need to add additional systems to accommodate the expanding number of procedures? I guess first question on guidance. Lease buyout revenue has varied significantly quarter to quarter and will likely continue to do so. Fourth quarter 2021 revenue was$1.55 billion, an increase of 17%compared with$1.33 billion in thefourth quarter of 2020. While there continues to be COVID hotspots within some of our Asia Pacific markets, overall procedures in the region performed well. Maybe just at the beginning of your comments, I was struck that you emphasized that da Vinci utilization rates are, if I understood you correctly, at the high end of historical averages. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. Annualized U.S. procedure growth rates are returning to historical levels for procedures with longer diagnostic pipelines as patients have started returning to screening and diagnostic testing. We expect our pro forma rate for the last six months of 2021 to be between 21% and 22% versus our previous guidance of 20% to 21%, reflecting a greater proportion of U.S. income for the year. We know that new system placements are closely tied to anticipated procedure volumes and system utilization in mature markets. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Companys business. Intuitive Surgical, Inc. engages in the development, manufacture, and marketing of da Vinci Surgical Systems, and related instruments and accessories for . Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. Can you maybe just talk a little bit about the road map? 06/14/22 - 1:20 PM PDT. Philip Kim, our head of investor relations, will not be joining on today's call as he's currently on paternity leave following the birth of his daughter. This article is a transcript of this conference call produced for The Motley Fool. The Company ended the first quarter of 2022 with $8 .40 billion in cash, cash equivalents, and investments, a decrease of $218 . There are several models of the da Vinci Surgical System. So bariatric obviously has been highly laparoscopically penetrated historically. The fourth quarter 2021 system shipments included 143systems shipped under operating lease and usage-based arrangements, compared with 120 systems in thefourth quarter of 2020. The compound annual growth rate between the fourth quarter of 2019 and the fourth quarter of 2021 was 12%. The Company defines non-GAAP gross profit as gross profit, excluding amortization of intangible assets and SBC and long-term incentive plan expenses. Finally, our team is making good progress in scaling our operations. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Submit. And so we'll spend there. Tycho Peterson -- JPMorgan Chase & Co. -- Analyst. The Company defines non-GAAP EPS as non-GAAP net income attributable to Intuitive Surgical, Inc. divided by non-GAAP diluted shares, which are calculated as GAAP weighted-average outstanding shares plus dilutive potential shares outstanding during the period. The next page will display a menu of options. On the capital side, new system placements continue to be healthy, with the United States, China, Germany, France, and Japan, notable in the quarter. We are developing and deploying technology-enabled ecosystems to support our customers' pursuit of the Quadruple Aim, better outcomes, better patient experiences, better care team experiences, and lower total cost to treat per patient episode. The Company believes these non-GAAP financial measures are useful to investors, because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making, and (2) they are used by institutional investors and the analyst community to help them analyze the performance of the Companys business. Our teams continue to work closely with hospitals, physicians, and care teams in pursuit of what our customers have termed the Quadruple Aim: Better, more predictable patient outcomes, better experiences for patients, better experiences for their care teams, and ultimately, a lower total cost to treat. And with that, I'd like to turn it over to Jamie. The decrease relative to these prior periods reflects geographic mix and volume discounts provided to customers purchasing multiple systems. Key business metrics for the second quarter were as follows. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems . Or is this simply and primarily just something about the pandemic accelerating the use of da Vinci and robotics surgery broadly? Investor's Business Daily . INTUITIVE at 2022 Wells Fargo Healthcare Conference. Our rollout of Ion will continue to be measured while we optimize training pathways in our supply chain. Thank you. To the extent that hospitalizations expand significantly due to COVID and its variants, like currently being experienced in parts of the world, it could negatively impact da Vinci procedures. At this time, all participants are in listen-only mode. Jamie, in his commentary, said that a lot of those procedures are benign procedures, many of them are shorter duration than longer or more complex disease states. I'm here together with my CFO, Thomas Jakobsen.. | 2 Mrz 2023 . Travel and associated costs in support of our field have also not recovered to pre-pandemic levels. That impact was most pronounced in the U.S. and Europe, varied market to market, complicating year-over-year comparisons. Our installed base of SP Systems is now 79: eight in Korea and 71 in the U.S. We completed first cases associated with a U.S. colorectal clinical trial in the second quarter. COVID has impacted global supplies of semiconductors and other materials used in our products, while we carry safety stocks of critical components and are otherwise working to secure supply necessary to ensure fulfillment of customer demand, global shortages could result in higher production costs and production development and regulatory delays. Are we starting to see leverage potentially that could enable a little bit better margins as we think about next year, year after? Please go ahead. And I know case rises have been largely decoupled from hospitalizations. An investor who invested $10,000 in Warren Buffett's hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made . And at this time, I would like to turn the conference over to our host, senior director of finance, investor relations for Intuitive, Mr. Calvin Darling. As part of our mission, we believe that minimally invasive care is life-enhancing care. 5001-10,000 Employees. Our actual gross profit margin will vary quarter to quarter depending largely on product, regional, and trade-in mix, the impact of product cost reductions, and manufacturing efficiencies and pricing pressure. Transitory was out a few years ago and CMR has been out and now Medtronic. Good afternoon. We also note the increasing number of COVID-19 cases in certain geographies associated with the Delta variant. So that's a multi-quarter conversation. your options for e-mail notification, please enter your e-mail address below and click Ladies and gentlemen, thank you for standing by and welcome to the Intuitive Q4 2021 Earnings Release Call. We will now open the call to your questions. The increase compared to prior year reflects costs associated with higher headcount, increased variable compensation, and increased spending in areas impacted by COVID. (1) Selling, general and administrative includes the effect of the following item: (2) Income from operations includes the effect of the following items: (3) Interest and other income, net includes the effect of the following item: (4) Income tax expense includes the effect of the following item: Excess tax benefits related to share-based compensation arrangements, (5) Diluted net income per share attributable to, Amortization of intangible assets, net of tax, Gains (losses) on strategic investments, net of tax. As the phases of the pandemic evolve, we're supporting our team in addressing the opportunities and challenges posed by the pandemic and the ways we work. Affiliated with the world's largest international neurotechnology community, NeurotechX, with 18,000+ members . (2021) Dropped off in 2022. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Presenter SpeechKari Krogstad Okay. And then given that it's cancer procedure, in some cases, it's a little bit longer follow-up. OUS markets grew 51% year over year or 19% on a two-year compound annual growth rate basis. Additional supplemental financial and procedure information has been posted to the Investor Relations section of the Intuitive website at https://isrg.gcs-web.com/. Third, driving depth and excellence in regional performance, particularly in Europe and Asia. The instrumentation updates, there are other things, imaging updates and software updates that are really all focused around right instruments, right features for the right extension or right expansion. So we're excited about that because it gives them fast and easy access. So first question for me is just trying to dissect your procedure results a little bit more because some really interesting comments, that you saw strength in benign cases, some catch-up cases. The next page will display a menu of options. Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, Q3 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 2022 Wells Fargo Healthcare Conference, Q2 2022 INTUITIVE Earnings Conference Call, INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference, INTUITIVE at BofA Securities 2022 Healthcare Conference, Q1 2022 INTUITIVE Earnings Conference Call. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. We are now slightly increasing our forecast and expect full-year gross profit margin to be between 70.5% and 71.5% of revenue. The number we're watching closely is hospitalization. Roughly a third of our team works in the manufacturer test and distribution of our products. It last split in October of 2017. And so we watch that number because we know it's highly sensitive. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent Form 10-K filed on February 10, 2021; and Form 10-Q filed on April 21, 2021. But at this point, it's just too difficult to estimate and, therefore, kind of give you any additional color on. Intuitive (Nasdaq: ISRG), headquartered in Sunnyvale, California, is a global leader in minimally invasive care and the pioneer of robotic surgery. Fourth quarter 2021 GAAP income from operations increased to $450million, compared with $416million in the fourth quarter of 2020.