InMode Ltd.

Good day and welcome to InMode's fourth quarter and full year 2023 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Miri Sigel of MSIR. Please go ahead.

Thank you, operator and everyone, for joining us today. Welcome to InMode's fourth quarter and full year 2023 earnings call. Before we begin, I would like to remind our listeners that certain information provided on this call may contain forward-looking statements. And the safe harbor statement outlined in today's earnings release also pertains to this call. If you have not received a copy of the release, please go to the investor relations section of the company's website. Changes in business, competitive, technological, regulatory, and other factors could cause actual results to differ materially from those expressed by the forward-looking statements made today. Our historical results are not necessarily indicative of future performance. As such, we can give no assurance as to the accuracy of our forward-looking statements and assume no obligation to update them except as required by law. With that, I'd like to pass the call over to Moshe Mizrachi, Chairman and CEO. Moshe, please go ahead.

Thank you, Miri, and to everyone for joining us. With me today, Dr. Michael Kreindel, our Co-Founder and Chief Technology Officer, Yair Malka, our Chief Financial Officer, Shaquille Ocani, our President in North America, and Raphael Liekermann, our VP Finance. Following our prepared remark, we will all be available to answer your questions. The second half of 2023 presented challenges for InMod for the aesthetic industry as all and to the surgical aesthetic sector in particular. In the fourth quarter, we revised our guidance for the first time in the history of the company due to the increased impact of the industry slowdown. This resulted in 5% year-over-year decline in Q4 revenue. which amounted to $126.8 million. However, we are pleased to have grown our full year revenue to a record of $492 million, reflecting an 8% increase compared to the full year of 2021. We take pride in being the only company in the industry that consistently generate over $100 million per quarter, demonstrating growth even in the face of a challenging year. Moreover, we keep our gross margin, the highest in the industry, strong and steady at 84% for both Q4 and a full year, all while maintaining our established price structure for the platforms and for the consumable. As previously mentioned, over 80% of the platform sales are facilitated through leasing agreement. Higher interest rate and longer lending approval cycles have impacted in-mode overall growth rate. This macroeconomics environment has also affected patients who are more sensitive to the price of their aesthetic treatment. resulting in lower underlying demand for our minimally invasive treatment. To address these challenges, we are in the process of establishing approval program with financial institution to improve and expedite the credit decision process. In some cases, we directly leverage our strong balance sheet to support physician by providing financing option ourselves. Additionally, capitalizing on this lower year and our robust balance sheet, in 2023, we expanded our R&D activity by hiring more engineers and recruiting training professionals. Also, we increased our sales team in our subsidiaries, expedited international expansion, and increased investment in worldwide regulatory pathways. During 2023, we introduced two successful new platforms, Envision for the ophthalmology market and Define for the hand-free aesthetic market, which is the next generation of Evoque. We are encouraged by the results from the soft launch of our Envision platforms last year, and we expect Envision to expand outside the U.S. during 2024. InMod continues to innovate bringing new and exciting product to the market. In 2024, we plan to launch two new platforms offering significant improvement in technology and energy levels, along with the new technology for our minimal invasive treatment and for Morpheus 8. Finally, we remain committed to supporting all customers, distributors, employees, salespeople worldwide. Regarding the situation in Israel, we would like to reiterate that we have established a contingency plan with sufficient inventory globally, including in Israel, in the U.S., and in Europe. We continue to closely monitor the situation and are pleased to report that we are conducting business as usual. Now, I would like to turn the call over to Shaquille, our president in North America. Shaquille.