Intuitive Surgical, Inc. (ISRG), the maker of the da Vinci surgical system, announced its fourth-quarter and full-year results for 2023 on Thursday, January 23, 2024. The company reported a revenue of $1.93 billion for the quarter, up 16.5% year over year, and an earnings per share (EPS) of $1.60, up 30.1% year over year. Both figures surpassed the Zacks Consensus Estimate of $1.93 billion and $1.47, respectively.
The company’s revenue growth was driven by a strong performance in its instruments and accessories segment, which accounted for 59.1% of the total revenue. The segment revenue increased by 21.6% year over year to $1.14 billion, beating the Zacks Consensus Estimate of $1.13 billion. The growth was attributed to higher procedure volumes, especially in general surgery and urology, as well as increased sales of advanced instruments.
The company reported a 19.1% increase in instruments and accessories revenue in the United States, reaching $819.4 million. Outside of the United States, the segment revenue grew by 28.4% to $324.3 million, with strong demand in China, Japan, and Europe.
Stable growth in systems and services segments
The company’s systems segment, which includes the sales of da Vinci surgical systems and related accessories, generated a revenue of $480.2 million, up 16.7% year over year. The company placed 415 da Vinci systems in the quarter, compared to 326 in the same period last year, exceeding the Zacks Consensus Estimate of 358. The company’s installed base of da Vinci systems reached 8,606, up 12.5% year over year.
The company’s services segment, which includes the maintenance and repair of da Vinci systems, recorded a revenue of $304.4 million, up 15.6% year over year. The segment revenue matched the Zacks Consensus Estimate of $299.79 million. The company attributed the growth to the expansion of its installed base and the increased utilization of its systems.
Positive outlook for 2024
The company’s CEO, Gary Guthart, expressed his satisfaction with the company’s performance in 2023, despite the challenges posed by the COVID-19 pandemic. He said that the company’s results reflected its “commitment to innovation, clinical value, and customer support”. He also highlighted the company’s achievements in launching new products, expanding its global presence, and investing in research and development.
The company’s CFO, Marshall Mohr, provided a positive outlook for 2024, stating that the company expects to grow its revenue by 14% to 17%, and its non-GAAP operating income by 15% to 18%. He also said that the company expects to place 1,650 to 1,800 da Vinci systems in 2024, and to increase its procedure volume by 13% to 16%.
The company’s stock price rose by 3.2% in after-hours trading, following the release of its earnings report. The company has a market capitalization of $131.7 billion, and a trailing 12-month price-to-earnings ratio of 87.9.