Exhibit No.
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Description of Exhibit
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InMode Ltd.
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|||
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By:
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/s/ Moshe Mizrahy | |
Moshe Mizrahy | |||
Chief Executive Officer and Chairman of The Board of Directors
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|||
•
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Quarterly revenue of $40.4 million, an increase of 32% compared to the first quarter in 2019.
In the first quarter of 2020, we derived approximately 61% of our U.S. revenues from our proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 37% of our
U.S. revenues from our recently introduced Hands-Free platforms and only 2% of our U.S. revenues from traditional laser and non-invasive RF platforms.
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|
•
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GAAP net income of $6.4 million, compared to $10.1 million in the first quarter in 2019; *non-GAAP net income of $12.6 million, compared to $10.5 million in the first quarter in 2019
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•
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GAAP diluted earnings per share of $0.15 and *non-GAAP diluted earnings per share of $0.30
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•
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Total cash position of $201.7 million as of March 31, 2020, including cash and cash equivalents, marketable securities and short-term bank deposits
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U.S. GAAP Results
(U.S. dollars in thousands, except for per share data)
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||||||||
Q1 2020
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Q1 2019
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|||||||
Revenues
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$
|
40,441
|
$
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30,552
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||||
Gross Margins
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85
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%
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86
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%
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||||
Net Income Attributable to InMode Ltd.
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$
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6,433
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$
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10,124
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||||
Earnings per Diluted Share
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$
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0.15
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$
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0.28
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Non-GAAP Results
(U.S. dollars in thousands, except for per share data)
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||||||||
Q1 2020
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Q1 2019
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|||||||
Net Income Attributable to InMode Ltd.
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$
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12,559
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$
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10,486
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||||
Earnings per Diluted Share
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$
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0.30
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$
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0.29
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• |
There is a decrease in new cases worldwide and this downward trend is continuing on a daily basis
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• |
Gradual return to work has already started
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• |
Elective surgeries are gradually being permitted in the USA and other countries
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Company Contact:
Yair Malca
Chief Financial Officer
Phone: (949) 305-0108
Email: Yair.Malca@inmodemd.com
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Investor Relations Contact:
Miri Segal
MS-IR LLC
Phone: (917) 607-8654
Email: ir@inmodemd.com
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Three months ended
March 31, |
||||||||
2020
|
2019
|
|||||||
REVENUES
|
40,441
|
30,552
|
||||||
COST OF REVENUES
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6,184
|
4,271
|
||||||
GROSS PROFIT
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34,257
|
26,281
|
||||||
OPERATING EXPENSES:
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||||||||
Research and development
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3,432
|
1,199
|
||||||
Sales and marketing
|
22,999
|
14,097
|
||||||
General and administrative
|
1,823
|
1,053
|
||||||
TOTAL OPERATING EXPENSES
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28,254
|
16,349
|
||||||
INCOME FROM OPERATIONS
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6,003
|
9,932
|
||||||
Finance income, net
|
629
|
403
|
||||||
INCOME BEFORE TAXES
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6,632
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10,335
|
||||||
INCOME TAXES
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141
|
177
|
||||||
NET INCOME
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6,491
|
10,158
|
||||||
Less: Net income attributable to non-controlling interests
|
58
|
34
|
||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
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6,433
|
10,124
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||||||
NET INCOME PER SHARE (1):
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||||||||
Basic
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0.19
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0.38
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||||||
Diluted
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0.15
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0.28
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||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (1)
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||||||||
Basic
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33,963
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26,818
|
||||||
Diluted
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41,688
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35,458
|
March 31,
2020
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December 31,
2019
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|||||||
Assets
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||||||||
CURRENT ASSETS:
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||||||||
Cash and cash equivalents
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45,138
|
44,727
|
||||||
Marketable securities
|
126,101
|
120,144
|
||||||
Short-term bank deposits
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30,470
|
28,491
|
||||||
Accounts receivable, net of allowance for doubtful accounts
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5,769
|
6,628
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||||||
Other receivables
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5,410
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3,810
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||||||
Inventories
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12,086
|
9,408
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||||||
TOTAL CURRENT ASSETS
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224,974
|
213,208
|
||||||
NON-CURRENT ASSETS:
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||||||||
Accounts receivable
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337
|
374
|
||||||
Deferred income taxes, net
|
1,370
|
1,899
|
||||||
Operating lease right-of-use assets
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1,480
|
1,369
|
||||||
Property and equipment, net
|
940
|
935
|
||||||
Other investments
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600
|
600
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||||||
TOTAL NON-CURRENT ASSETS
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4,727
|
5,177
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||||||
TOTAL ASSETS
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229,701
|
218,385
|
||||||
Liabilities and shareholders’ equity
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||||||||
CURRENT LIABILITIES:
|
||||||||
Accounts payable
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4,716
|
3,702
|
||||||
Contract liabilities
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13,249
|
15,587
|
||||||
Other liabilities
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11,309
|
13,205
|
||||||
TOTAL CURRENT LIABILITIES
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29,274
|
32,494
|
||||||
NON-CURRENT LIABILITIES:
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||||||||
Contract liabilities
|
3,206
|
3,813
|
||||||
Other liabilities
|
1,679
|
1,494
|
||||||
Operating lease liabilities
|
709
|
744
|
||||||
Deferred income taxes, net
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-
|
37
|
||||||
TOTAL NON-CURRENT LIABILITIES
|
5,594
|
6,088
|
||||||
TOTAL LIABILITIES
|
34,868
|
38,582
|
||||||
TOTAL SHAREHOLDERS’ EQUITY
|
194,833
|
179,803
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
229,701
|
218,385
|
Three months ended
March 31, |
||||||||
2020
|
2019
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|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
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||||||||
Net income
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6,491
|
10,158
|
||||||
Adjustments required to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
94
|
63
|
||||||
Share-based compensation expenses
|
6,050
|
402
|
||||||
Allowance for doubtful accounts
|
306
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59
|
||||||
Gains on marketable securities, net
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(6
|
)
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-
|
|||||
Finance expenses (income), net
|
189
|
(183
|
)
|
|||||
Deferred income taxes, net
|
368
|
(66
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)
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|||||
Changes in operating assets and liabilities:
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||||||||
Decrease in accounts receivable
|
590
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147
|
||||||
Decrease (increase) in other receivables
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(1,560
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)
|
873
|
|||||
Increase in inventories
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(2,678
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)
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(129
|
)
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||||
Increase (decrease) in accounts payable
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1,014
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(1,015
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)
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|||||
Decrease in other liabilities
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(1,793
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)
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(449
|
)
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||||
Increase (decrease) in contract liabilities
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(2,945
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)
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2,911
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|||||
Decrease in accrued contingencies
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-
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(10,000
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)
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|||||
Net cash provided by operating activities
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6,120
|
2,771
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||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
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||||||||
Investment in short-term deposit
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(16,519
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)
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(11,000
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)
|
||||
Proceeds from short-term deposit
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14,500
|
5,000
|
||||||
Purchase of fixed assets
|
(99
|
)
|
(378
|
)
|
||||
Purchase of marketable securities
|
(43,933
|
)
|
(4,918
|
)
|
||||
Proceeds from sale of marketable securities
|
38,574
|
2,603
|
||||||
Net cash (used in) investing activities
|
(7,477
|
)
|
(8,693
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Exercise of options
|
2,001
|
122
|
||||||
Net cash provided by financing activities
|
2,001
|
122
|
||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH
|
(233
|
)
|
30
|
|||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
411
|
(5,770
|
)
|
|||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
44,727
|
24,721
|
||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD
|
45,138
|
18,951
|
Three months ended
March 31, |
||||||||
2020
|
2019
|
|||||||
Revenues by Geography:
|
||||||||
United States
|
30,823
|
24,085
|
||||||
International
|
9,618
|
6,467
|
||||||
Total Net Revenue
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40,441
|
30,552
|
||||||
U.S. as percentage of total revenue
|
76
|
%
|
79
|
%
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Three months ended March 31, 2020
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Three months ended March 31, 2019
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|||||||||||||||||||||||
GAAP
|
Stock Based
Compensation |
Non-GAAP
|
GAAP
|
Stock Based
Compensation |
Non-GAAP
|
|||||||||||||||||||
REVENUES
|
40,441
|
-
|
40,441
|
30,552
|
-
|
30,552
|
||||||||||||||||||
COST OF REVENUES
|
6,184
|
(76
|
)
|
6,108
|
4,271
|
(19
|
)
|
4,252
|
||||||||||||||||
GROSS PROFIT
|
34,257
|
76
|
34,333
|
26,281
|
19
|
26,300
|
||||||||||||||||||
OPERATING EXPENSES:
|
||||||||||||||||||||||||
Research and development
|
3,432
|
(1,886
|
)
|
1,546
|
1,199
|
(52
|
)
|
1,147
|
||||||||||||||||
Sales and marketing
|
22,999
|
(3,838
|
)
|
19,161
|
14,097
|
(308
|
)
|
13,789
|
||||||||||||||||
General and administrative
|
1,823
|
(250
|
)
|
1,573
|
1,053
|
(23
|
)
|
1,030
|
||||||||||||||||
TOTAL OPERATING EXPENSES
|
28,254
|
(5,974
|
)
|
22,280
|
16,349
|
(383
|
)
|
15,966
|
||||||||||||||||
INCOME FROM OPERATIONS
|
6,003
|
6,050
|
12,053
|
9,932
|
402
|
10,334
|
||||||||||||||||||
Finance income, net
|
629
|
-
|
629
|
403
|
-
|
403
|
||||||||||||||||||
INCOME BEFORE TAXES
|
6,632
|
6,050
|
12,682
|
10,335
|
402
|
10,737
|
||||||||||||||||||
INCOME TAXES
|
141
|
(76
|
)
|
65
|
177
|
40
|
217
|
|||||||||||||||||
NET INCOME
|
6,491
|
6,126
|
12,617
|
10,158
|
362
|
10,520
|
||||||||||||||||||
Less: Net income attributable to non-controlling interests
|
58
|
-
|
58
|
34
|
-
|
34
|
||||||||||||||||||
NET INCOME ATTRIBUTABLE TO INMODE LTD.
|
6,433
|
6,126
|
12,559
|
10,124
|
362
|
10,486
|
||||||||||||||||||
NET INCOME PER SHARE (1):
|
||||||||||||||||||||||||
Basic
|
0.19
|
0.37
|
0.38
|
0.39
|
||||||||||||||||||||
Diluted
|
0.15
|
0.30
|
0.28
|
0.29
|
||||||||||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (1)
|
||||||||||||||||||||||||
Basic
|
33,963
|
33,963
|
26,818
|
26,818
|
||||||||||||||||||||
Diluted
|
41,688
|
41,809
|
35,458
|
35,409
|