Intuitive Surgical, Inc.

Please note this event is being recorded. Now it's my pleasure to turn the call over to Dan Connolly, Head of Investor Relations. Please go ahead, sir.

Good afternoon, and welcome to Intuitive's second quarter earnings conference call. With me today, we have Dave Rosa, our CEO, and Jamie Sumat, our CFO. Before we begin, 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 our Securities and Exchange Commission filings, including our most recent 10-K filed on January 31st, 2025 and Form 10-Q filed on April 23rd, 2025. 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 second quarter results as described in our press release announced earlier today followed by a question and answer session. Dave will review business and operational highlights. Jamie will provide a review of our financial results and procedure highlights. I will review clinical highlights and discuss our updated financial outlook for 2025. And finally, we will host a question and answer session. With that, I will turn it over to Dave.

Good afternoon, and thank you for joining us today. Before we proceed, I'd like to take a moment to recognize and thank Gary Goodhart. As you know, after more than 15 years as Intuitive CEO, Gary transitioned to Executive Chair of the Board earlier this month. It's been a privilege to work alongside Gary for nearly 30 years. We joined within a month of each other as engineers at what was a tiny California-based company in 1996, where a small group of us developed the first DaVinci prototype. Since then, we have worked together with many extraordinary colleagues to build a company that is today a global enterprise, employing more than 16,000 people, supporting over 11,000 robotic systems across 74 countries, with over 17 million procedures performed. On behalf of the patients, surgeons, and care teams we support, our employees, and so many other stakeholders, we thank Gary for his leadership at Intuitive and his contributions to advancing minimally invasive care. I am grateful for the strong foundation he's created and honored to serve as Intuitive's next CEO. I'm excited to lead the company forward as we continue to advance the quintuple aim and deliver value for our stakeholders. Moving to the business, our financial metrics were strong in the second quarter with solid procedure growth and capital placements despite ongoing macro challenges in certain international markets. Our teams achieve significant milestones across our ecosystem of products and services while navigating dynamic market conditions globally. Our product operations teams continue to build capacity and deliver for our customers while optimizing production costs within our existing manufacturing and supply chain footprint. Our research and development efforts continue to build momentum in the quarter. Our newest platform, DaVinci 5, is in broad launch in the United States and receive clearances in Europe and Japan where we will begin measured launches. We are pleased with customer feedback and adoption of our newer platforms and remain committed to supporting high quality, minimally invasive care with a comprehensive and impactful product portfolio. Reviewing procedure performance, da Vinci procedure growth in the quarter was 17%. Benign General Surgery led US procedure growth with a strong contribution from after-hours procedures, while international growth was led by non-neurology procedures. Regional performance highlights included strength in India, Korea, and distribution markets. Jamie will provide further details on procedure dynamics later in the call. Turning to capital, we placed 395 da Vinci systems, including 180 da Vinci 5 systems and 23 SP systems. Capital placements were strong in the U.S., while macro challenges in Japan, China, and Europe continued. We also placed 54 ION systems in the quarter. System utilization, defined as procedures per installed clinical system per quarter, grew 2% year over year for our multiport platforms, and accelerated to 30% and 8% for SP and ION, respectively. Moving to our finances, Revenue growth of 21% reflects solid procedure performance in capital placements and a benefit from higher purchase mix. Product margins and operating expenses were slightly favorable to our expectations. Turning to our multiport business, DaVinci 5 has been an important addition to our robotic surgical system portfolio with more than 100,000 procedures performed to date in what had been a measured US launch. We are pleased to offer DaVinci 5 broadly in the United States. Commercialization in Europe and Japan will be measured as we work through additional clearances to fully enable the DaVinci 5 ecosystem. We also added to our advanced energy instrument portfolio with 510 clearance for vessel sealer curved, giving surgeons greater precision in narrow anatomical spaces. Additionally, we received a procedure clearance for tracheobronchoplasty a surgical treatment for a collapsed trachea and main bronchi during normal breathing. With respect to our digital ecosystem, customers continue to collect and publish data about force feedback and other aspects of DaVinci 5 through their use of Case Insights. Dan will highlight some of this data later in the call. Since launching dual console capability with DaVinci SI in 2009, we have developed a range of digital collaboration tools for our customers. We believe these telecollaboration capabilities can advance clinician training, enhance patient care, and optimize care delivery. Intuitive telepresence with our latest hub software will enable customers to use on-demand scheduling, connecting easily with a known group of peers, similar to the favorites screen on your phone. Last week, at the Society of Robotic Surgery Conference, Dr. Doug Stoddard, Director of Surgery and Robotics at Christus Health, and Dr. Andrea Picula, Medical Director of Robotic Surgery at Adventist Health, performed a telesurgery demonstration between Atlanta and Strasburg on an advanced tissue model using DaVinci 5, including force feedback. While the long-term opportunity for telesurgery is potentially significant, we recognize that achieving safe, consistent adoption will require robust cybersecurity and privacy infrastructure, new workflows at hospitals, revised medical and legal policies, and appropriate business economics. As with our approach to innovation broadly, our work here is focused on applying our experience and expertise to deliver safe, meaningful, grounded solutions that address real-world healthcare challenges. Turning to SP, Procedure growth was strong at 88% year-over-year, with growth accelerating in Korea. We are still early in our European launch and are pleased with progress to date. Our SP team achieved several milestones, including receiving clearance for our 50-use endoscope, along with 510 clearance for transanal local excision and resection, adding to a suite of transabdominal colorectal procedures. Our priorities for SP in the near term include additional indications in the US, expansion in international markets, enhancing core capability, and improving product costs. Moving to ION, procedures grew 52% to approximately 35,000 in the quarter. We recently sold our first systems in Australia and Korea and performed our first commercial procedures. Our priorities for ION in the near term are supporting utilization growth in the US, expansion in international markets, enhancing overall procedure workflow, and improving product costs. Over recent years, we have highlighted our investments in and focus on delivering for our customers across all aspects of our ecosystem at industrial scale. Customers around the globe rely on Intuitive for high-quality products and services and rock-solid supply continuity to ensure they can serve their patients safely, reliably, and effectively at volumes approaching 3 million patients per year globally. As has been the case throughout our 30-year history, we will continue to innovate across our instrument portfolio, as illustrated by the introduction of our force feedback and extended use instrumentation. Our work here is guided by commitment to the quintuple aim, including patient safety, product quality and reliability, and informed by data from millions of procedures. We are aware that third parties have sought to offer products or services to healthcare providers that would modify some of our instruments to extend their use. As customers consider remanufactured instruments from third party suppliers, we expect key areas such as safety, performance, quality, reliability, supply continuity, and pricing will be carefully evaluated and compared. Our strong belief is that high quality instruments with consistent performance, Broad operational support and predictable supply chains provide the greatest value to our customers. In closing, we are committed to our 2025 priorities. First, focusing on the full launch of DaVinci 5, its regional clearances and follow-on feature releases. Second, we'll pursue increased adoption for our focused procedures by country through training, commercial activities, and market access efforts. Third, we'll drive continued progress in building industrial scale, product quality, and manufacturing optimization. And finally, we'll focus on excellence and availability of our digital tools. Our core businesses have momentum, and our teams are focused on the significant long-term opportunity to improve the quintuple lane through our connected ecosystem. We are well positioned operationally and financially to execute against our priorities. I'll now turn the time over to Jamie, who will take you through our finances in greater detail.