Intuitive Surgical, Inc.

Thank you everyone for standing by and welcome to the intuitive third quarter 2024 earnings release. Now at this time, all participants are on a listen only mode. Later, we will conduct a question and answer session. If you wish to place yourself in queue for questions, you may depress one and zero on your telephone keypad at any time. To remove yourself from that queue, repeat the one and zero command. I will now turn the conference over to your host, Brendan Lamb. with an investor relations for Intuitive. Please go ahead.

Good afternoon and welcome to Intuitive's third quarter earnings conference call. With me today, we have Gary Guthart, our CEO, Dave Rosa, our president, and Jamie Samath, our CFO. Before we begin, I would like to let you know that Brian King has moved on to pursue his next opportunity. We appreciate his contributions over the past nine years and wish him well in his next endeavor. A search for his replacement is in progress. Moving on, I would like to inform you that comments mentioned on today's call may be deemed to contain forward-looking statements. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent Form 10-K, where the fiscal year ended December 31st, 2023, and subsequent filings. Our SEC filings can be found through our website or at the SEC's website. Investors are cautioned not to place undue reliance on such forward-looking statements. Please note that this conference call will be available for audio replay on our website at intuitive.com on the events section under our investor relations page. Today's press release and supplementary financial data tables have been posted to our website. Today's format will consist of providing you with highlights of our third quarter results as described in our press release announced earlier today, followed by a question and answer session. Gary will introduce the call and provide a business overview. Dave will present the quarter's business, operational, and clinical highlights. Jamie will provide a review of our financial results and procedure highlights. Then I will provide our updated financial outlook for 2024. And finally, we will host a question and answer session. With that, I'll turn it over to Gary.

Thank you for joining us today. Q3 of 2024 was a good quarter for us, with healthy procedure growth, solid capital placements, and strong operational execution in a dynamic global environment. I'll kick off by providing a perspective on our platforms and our regions. Starting with our multiport system, we now have an install base of roughly 9,300 globally. Our five-year procedure compound annual growth rate in multiport has been 17%, with approximately 16 million total patients treated using DaVinci Multiport platforms, of which approximately 10 million were in the past five years. Manufacturing, logistics, and service capability has increased over the past several years, helping assure availability for our customers while managing margins. System stability taken across our multiport product lines has been outstanding, setting a standard for dependability. We launched our fifth generation multiport system in March this year and have installed 188 to date, with over 12,000 procedures completed using DaVinci 5 in roughly six months. DaVinci 5 is bringing outstanding improvements for surgeons, care teams, and hospitals, in addition to first-of-their-kind features that we think will improve patient outcomes We're moving towards our broad launch and are well into the process of securing additional global regulatory clearances for DaVinci 5, which you'll hear about later in the call. Turning to our endoluminal system, we launched ION in Q3 of 2019. Today, the ION install base is 736, of which 722 are in the United States. Physicians have completed more than 150,000 lung biopsies using ION to date. each one of which uses a machine learning-created, anatomically segmented lung model based on the patient-specific anatomy, personalized digital intervention for every case. Our five-year compound annual growth rate for ION procedures has been 205%. There are over 100 peer-reviewed articles assessing ION. Overall safety and accuracy data has been outstanding. Over the past year, we have focused on excellence in product quality, product availability, and customer experience. We have updated ION with significant feature and software upgrades five times since its launch and have made dozens of improvements to our catheters and vision probes. Over the next two years, we'll expand our efforts to place systems beyond the United States, to continue system and software innovation, to increase utilization in existing U.S. accounts, and in continued pursuit of additional indications. We launched DaVinci SP in Q3 of 2018, and the installed base now stands at 243. SP procedures have been growing at a five-year CAGR of 55%, with 67,000 total procedures completed to date. We've seen strong SP performance in Korea, encouraging early growth in Europe and Japan, and have increased our cadence of regulatory activity globally to broaden its applicability. The SP clinical evidence base stands at over 500 peer-reviewed journal articles. SP has found stronger uptake outside the United States as clinical indications in Europe, Japan, Korea, and now Taiwan are broader than the U.S. Our SP team is focused on extending our instrument lineup, including stapling and advanced energy, on increasing indications in the U.S., on enabling proctoring networks in global markets, and on next-generation SP system innovations. In our digital efforts, nearly 3,000 da Vinci virtual reality simulators are in the install base, and surgeons complete approximately 15,000 hours of training on simulators per quarter. Our active surgeon users for my Intuitive app now exceed 14,000. Intuitive Hub is enabled in approximately 2,000 operating rooms. We have performed our analytics program custom hospital analytics over 4,000 times and at a run rate of several hundred per quarter. Our digital team is focused on three enabling pillars, digital tools that improve outcomes in the EOR and interventional suite, tools that help create better care teams faster, and tools that drive efficiencies and lower total cost of ownership, all while pursuing outstanding capabilities in cybersecurity and data privacy. Dave will touch on our digital progress shortly. Regionally, we have been investing to build balanced country and regional teams that allow us to serve customers globally with high-quality interactions. These include commercial activity, payer engagement, R&D, logistics, and production capabilities in region. This has been a multi-year effort that has increased customer satisfaction and strengthened our global capability. Our five-year compound annual growth rate for procedures in the Europe region has been 21%. In the Asia region, our five-year procedure CAGR has been 25%, and other markets outside the U.S., it has been 18%. Reimbursement coverage for robot-assisted surgery has been obtained or expanded for dozens of procedures in many of the countries we serve. That said, we're still relatively early in our opportunity to localize our capabilities to serve more patients around the world. Overall, our teams have been strengthening our ability to serve our customers globally at industrial scale, expanding the applicability of robot-assisted surgery and other interventions by pursuing new platforms, products and services, and obtaining new clinical indications. We've also been strengthening our digital ecosystem to support our customers and our company with high quality data and insight. The opportunity to improve outcomes for patients and our customers quintuple aim through advanced technology ecosystems like ours is bigger than ever. And we are focused on discipline execution to get there. And I'll turn the time over to Dave to take you through clinical R&D and operational updates.