Q4 2024 InMode Ltd Earnings Call
Speaker Change: I- hotel respondent is working on the bracelet look. I'm sorry, Mister Shakil Lakhani. Anyway, check her back internet if you have no problem.
Speaker Change: Good day and welcome to the InMODE's fourth quarter and full year 2024 earnings results 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.
Speaker Change: After today's presentation, there will be an opportunity to ask questions.
Speaker Change: To ask a question, you may press star then 1 on your telephone keypad.
To withdraw your question, please press star then 2.
Speaker Change: Please note, this event is being recorded. I would now like to turn the conference over to Miri Segal, CEO of MSIR, to review the Safe Harbor Statement for today's call. Please go ahead.
Speaker Change: Thank you, operator, and to everyone for joining us today. Welcome to InMod's fourth quarter and full year 2024 earnings call.
Speaker Change: also pertains to this call. If you have not received a copy of the release, please visit the Investor Relations section of the company's website.
Speaker Change: Changes in business, competitive, technological, regulatory and other factors could cause actual results to differ materially from those expressed in the forward-looking statements made today. Our historical results are not necessarily indicative of future performance.
Speaker Change: 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.
Speaker Change: With that, I'd like to turn the call over to Moshe Mizrahi, InMod's CEO. Moshe, please go ahead.
Moshe Mizrahi: Thank you, Miri, and to everyone for joining us. With me today are Dr. Michael Quindle, our Co-Founder and Chief Technology Officer, Yair Malca, our CFO, and Rafael Liekerman, our VP of Finance.
Moshe Mizrahi: Following our prepared remarks, we will all be available to answer your questions.
Moshe Mizrahi: The fourth quarter of 2022 was indeed challenging for InMod, as we navigate intense headwinds in the aesthetic industry, which were compounded by broader macroeconomics factors.
Despite this optical, we stayed focused and productive in 2024.
Moshe Mizrahi: driving innovation and maintaining a strong emphasis on R&D. We launched two new platforms in 2024, the Ignite RF and Optimus Max, which are both breakthrough technology.
Moshe Mizrahi: Though, it took longer to reach the market due to the extended training cycle and increased complexity of the tools and the manufacturing line.
Moshe Mizrahi: Now that the delivery challenges are behind us, we are optimistic that these platforms will see better adoption in 2025.
Moshe Mizrahi: The IGNITE-RF platforms provide a comprehensive range of radiofrequency solutions to address a variety of aesthetic and surgical needs.
Moshe Mizrahi: At the heart of the platforms is the quantum RF end piece, a breakthrough technology that delivers RF energy to deeper tissue layers, achieving remarkable results while maintaining a minimally invasive approach.
Moshe Mizrahi: As we previously mentioned, the Ignite RF is an upgrade of our popular body-type platforms.
Moshe Mizrahi: And it features nine advanced technologies that facilitate soft tissue contraction at multiple tissue depths for optimal outcomes.
Moshe Mizrahi: I would like to provide some colors on the second platform, the Optimus Max.
Moshe Mizrahi: It is a versatile multi-application platform that delivers more energy and superior heat distribution.
Moshe Mizrahi: resulting in fast, more efficient results. Since time is one of the doctor's most valuable assets, our solution allows physicians to perform more treatments per day, which translates to seeing higher numbers of patients.
Speaker Change: worldwide has been positive. We hope that we can update about our progress in the coming quarters.
Speaker Change: As you may know, InMod has a long history of leading the industry in innovation and pioneer across several technologies.
Speaker Change: We have maintained our leadership position in the aesthetic market with continuously introducing new and exciting technology and platforms. In fact, in 2025, we plan to launch two new platforms.
Speaker Change: the functional laser CO2, and other platforms for the medical market. We will be able to share more information as we approach the launch.
Speaker Change: Our fractional laser CO2 platforms focus on the popular facial rejuvenation and resurfacing market.
Speaker Change: And when added to our Morpheus technology, the patients receive noticeable results and smoother and more youthful skin results with a minimal downtime.
Speaker Change: Since physicians like to bundle the Morpheus treatment with the CO2 laser, we expect this FDA-approved technology to gain more traction later this year.
Speaker Change: As a result of our extensive portfolio and innovative product, compound with our streamlined organization structure, aligned with expansion strategy, Inmod is well positioned to continue our leading market position.
generate superior margin and benefit once condition will recover.
Speaker Change: We are confident in our operation and the ability to meet the demand.
Speaker Change: We have long relationships with three subcontractors located in Israel, none of which have had any significant delay and maintain relationships with multiple suppliers of major components.
Speaker Change: representing approximately 19% of our share capital and more than double our physical year 2024 free cash flow
Speaker Change: As we mentioned in today's press release, we are happy to report that our board has approved a new tax-efficient shares repurchase program of up to 10% of our share capital.
Speaker Change: Giving our strong free cash flow generation and our confidence in our business, we are also exploring...
Speaker Change: in consultation with our financial, legal and tax advisor, returning significant amount of capital by the end of the year to create future value to our shareholders.
Speaker Change: discipline approach to capital allocation. We believe this latest decision reflect our strong confidence in the company future and commitment to delivering value for our shareholders.
Speaker Change: Now, I would like to turn the call over to Yair, our Chief Financial Officer. Yair, please.
Thanks, Moshe, and hello everyone. Thank you for joining us.
Speaker Change: Starting with total revenue, INMO generated $97.9 million in the fourth quarter of 2024, with a gross margin of 79% on a gap basis.
Speaker Change: For full year 2024, revenue totaled $394.8 million, a decrease of 20% compared to 2023.
Speaker Change: Nangab Gross Margins remain the highest in the industry and within our target range at 80% for the fourth quarter and 81% for the full year of 2024.
Speaker Change: In Q4 and in the full year of 2024, our minimally invasive technology platforms accounted for 86% and 87% respectively of our total revenues.
Speaker Change: For the full year of 2024, consumables and services accounted for 20% of revenue.
an increase from 16% in 2023.
Speaker Change: Moving to our international operations, fourth quarter sales outside the U.S. accounted for $35.2 million, or 36% of sales.
Speaker Change: A 23% decrease compared to Q4 last year. This decrease was across all regions.
Speaker Change: For the full year of 2024, sales outside the U.S. accounted for $150 million, or 38% of sales, a 19% decrease compared to 2023.
Speaker Change: To support our operations and growth, we currently have a sales team of more than 260 direct reps and 87 distributors worldwide.
Speaker Change: Gap operating expenses in the fourth quarter was $49.8 million and $204.5 million for the full year. A 10% and 5% decrease year-over-year respectively.
Speaker Change: Sales and marketing expenses increased slightly to $44.7 million in the fourth quarter, compared to $49.5 million in the same period last year.
Speaker Change: The year-over-year decrease was primarily due to lower sales commissions resulting from a decline in sales.
and a reduction in share based compensation.
Speaker Change: These decreases were partially offset by increases in salaries, trade shows expenses, and other marketing costs.
Speaker Change: Next, we look at share price compensation, which decreased to $3.4 million in the fourth quarter of 2024 and $16.6 million in the full year of 2024.
Speaker Change: On a non-gap basis, operating expenses were $46.8 million in the fourth quarter compared to a total of $49.5 million in the same quarter of 2023, representing a 6% decrease.
Speaker Change: For 2024, NANGAP operating expenses were $189.8 million compared to $194.1 million in 2023.
The appropriate margin for Q4 and for 2024 was 28%.
Speaker Change: Nangap operating margin for the fourth quarter and for full year 2024 was 32% and 33% compared to 45% for the fourth quarter of 2023 and for full year 2023.
and $2.25 in 2024 compared to $2.30 in 2023.
Speaker Change: Nangab diluted earnings per share for this quarter were $0.42 compared to $0.71 per diluted share in the fourth quarter of 2023 and $1.76 for 2024 compared to $2.57 for 2023.
Speaker Change: Once again, we ended the quarter with a strong balance sheet. As of December 31st, 2024, the company had cash and cash equivalents, marketable securities, and deposits of $596.5 million. This quarter, Inmo generated $32.4 million from operating activities.
Speaker Change: Because of our strong balance sheet and free cash flow, we completed our fourth share repurchase program approved last September in the fourth quarter.
Speaker Change: buying back $135 million, or 7.7 million ordinary shares, out of which $120 million were purchased during Q4.
Speaker Change: This is in addition to the share repurchase program approved back in May for 8.4 million ordinary shares.
Speaker Change: In total, we repurchased 16 million ordinary shares, or $285 million, under these programs in 2024, returning capital to our shareholders in a tax-efficient manner.
Speaker Change: As part of our financial update, I'd like to highlight a significant one-time tax adjustment.
Speaker Change: Over the years, our U.S. subsidiary has accumulated a federal tax loss carry-forward of approximately $203 million and a state tax loss carry-forward of about $165.5 million.
Speaker Change: These primarily stem from employee stock option exercises that generated tax deductions exceeding recognized compensation expenses.
Speaker Change: After reviewing our cumulative income in recent years and evaluating the realizability of deferred tax assets, we released a valuation allowance related to our U.S. net deferred tax assets.
Speaker Change: This led to the recognition of a deferred tax asset of $55.1 million.
Speaker Change: It's important to note that this amount has been adjusted for non-gap purposes.
Moshe Mizrahi: Before I turn the call back to Moshe, I'd like to reiterate our guidance for 2025.
Revenue between $395 million and $405 million.
Moshe Mizrahi: Non-GAAP gross margin between 80% and 82% Non-GAAP income from operations between $130 million and $135 million Non-GAAP earnings per diluted share between $1.95 and $1.99
I will now turn over the call back to Moshe.
Thank you, Yair. Operator, we are ready for questions.
Speaker Change: We will now begin the question and answer session. To ask a question, you may press star then 1 on your telephone keypad. If you need any feedback, please pick up your handset before pressing the screen. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2.
Thank you.
comes from Daniel and Talfi with you.
Please go ahead.
Speaker Change: Hey, good morning, everyone. Thanks so much for taking the questions here. I just wanted to, Moshe, get your further thoughts on capital deployment here. We appreciate the new share repurchase, but, you know, you guys have been transparent in the past about particularly also being opportunistic on the M&A front. Just curious if that's still the case, and then just one follow-up after that.
Good evening.
Yeah, fine. Ah.
Speaker Change: Once it's come, we will report that we did. So far, we're not able to find something that we can buy or very synergetic to us.
And therefore, we have decided to start expanding the buyback.
In 2020, in 2024...
Speaker Change: We bought $285 million of shares back from the market and now we announced another 10%, which I believe will accumulate to another $120 million, maybe a little bit more, depending on the share price.
Speaker Change: Again, if opportunity will present itself, which will be either complementary to our product line or synergetic to our product line.
Speaker Change: or something that has to do with the aesthetic that we do not make, I mean in the energy-based devices, which are similar to what we're doing, we will explore it and report. But right now we have nothing in the pipeline.
Speaker Change: Okay, got it. And then my follow-up question is just, you know, I mean, I assume you guys are seeing the sort of
Jair Malca, Shakil Lakhani, Moshe Mizrahi, Miri Segal
Speaker Change: The news flow is pretty volatile there though too. Are you seeing anything that gives you any comfort in a potential economic sort of turnaround here at some point in 2025? Appreciating, I don't think that's what's reflected in your guidance, but just curious.
Speaker Change: qualitatively what you might be seeing, if there's anything that gives you some optimism or reason for optimism here. Thank you so much.
Speaker Change: Well, so far, the answer is no. We don't see the light at the end of the tunnel, unfortunately. And we don't see it in the beginning of 2025. Not in our business. Maybe in other businesses they can see something.
Speaker Change: But, you know, we try to estimate when the economic market or the macroeconomic will improve, and we said that it might happen in the second quarter of 2024. I'm sure you remember that.
But it was we were wrong it didn't happen
Speaker Change: Unfortunately, the second half of 2024 was also not a good one for InMod. We don't want to do any estimation at that point. We would like to work, and if something will come, maybe...
Speaker Change: If we go down and we see some kind of improvement, we will report.
Thank you. Thank you.
Thank you.
Speaker Change: Our next question comes from Matt Nixick with Barclays. Please go ahead.
Great. Thanks so much for taking the questions.
Speaker Change: So, one on the management structure, I know you made some changes.
Speaker Change: talking about I think realigning the senior management team and sales marketing and maybe CMO kind of structure against the markets that you're going after. So wondering if you could give us an update as to how that's
Speaker Change: proceeding, what we should expect to hear or see about it, and then I have one follow-up.
Speaker Change: Well, all the managerial changes that we have done were implemented in 2024. I believe we discussed that a quarter ago. We changed management in three countries in Europe.
Spain, UK, and France.
and we refreshed all of this. In addition to that...
We have nominated a guy to be a vice president.
that manage, actually, all five subsidiaries in Europe.
It's a new position that we added.
because we believe that distribution and subsidiaries are working differently.
Speaker Change: In the United States, as you know, and we report that, we change management. Basically, we release the president and two vice presidents of sales.
Speaker Change: and we refreshed again within the organization. We did not bring people from the outside.
Speaker Change: We have two new vice presidents of sales, one for the East, one for the West.
Speaker Change: And also we made a little bit different allocation as far as territory between the East and the West to maximize the ability of the reps and the directors.
Speaker Change: We do not have yet president for the U.S. or for North America, because Canada stays the same.
Speaker Change: and we're still looking to find somebody. Currently, I'm also the President of North America and I spend a few days a month in the U.S. and working with them on a daily basis.
Speaker Change: So, as far as management, I'm carrying out the position of the President of North America.
Speaker Change: As far as Asia, recently we changed the VP or responsible for the countries in Asia.
Speaker Change: and we hope to do some changes there. I'm flying tomorrow to visit seven countries in Asia with him.
Speaker Change: to go over country by country and determine the budget for 2025 and the strategy for 2025. And I hope that this region will deliver more than it used to.
Did I answer your question?
Speaker Change: if you could help us understand, you know, looking at 2025 and this uptick in interest and traction and volume.
Speaker Change: Both in procedures and then hopefully in equipment that we're all kind of looking for and waiting for and asking about Maybe help us understand, you know, the cadence that you expect not not predicting when volumes will pick up But you know, is it?
Speaker Change: Is it patient flow and then a month or two later it's system demand or is it a quarter or two later it's system demand? You know, maybe help us understand how your business inflects if we get to the other side of this cycle here.
Okay, good question.
decrease in the demand for minimally invasive procedures.
Speaker Change: Now, we know that because we sell the disposable, and we can see how many disposable we sold.
Speaker Change: And don't forget, as we install additional equipment in the market, we anticipate, we believe that the total numbers of disposables should grow, but it did not, it went down, mainly in the United States.
Speaker Change: during the inflation time in 2024 went up to a range of 12 to 14 percent.
on annual basis, which is very high.
Speaker Change: basically brought up the decrease in total revenue of 20% that we experienced in 2024.
Speaker Change: Now for the future. For the future, I believe two things need to happen. If the interest rate will go down, the interest rate on leasing will go down.
Speaker Change: You know, a patient will start going back to the doctor to get minimally invasive.
Speaker Change: A treatment of Morpheus or a treatment of Quantum or a treatment of FaceTite are not similar to a treatment of hair removal with laser.
I mean, these are $1,000 treatment and not $100 treatment.
Speaker Change: And people tend to delay that once they don't feel comfortable with the macroeconomics. So once customers will start going back to the doctor's office...
Speaker Change: and we will see that based on the numbers of disposables that we will sell to the doctors and the interest rate will go down, at that point we will see a turnaround.
Currently we don't see it yet.
Speaker Change: The next question comes from Michael Cercone with Jeffreys. Please go ahead.
Mike Cercone: Hey team, this is Mike on for Matt this morning. Thanks for taking the questions.
Mike Cercone: I guess just first one to start, more of a modeling type question, but we didn't see typical seasonality, you know, through the quarters in 2024. Was wondering if you can give us just some color on how you're thinking about seasonality in 2025.
Speaker Change: Yes, you are spot on with why we were kind of surprised in 2024. We expected Q4, we expected to see typical seasonality in 2024, especially in what we used to call the performer numbers.
and Q4 was not the strongest quarter of the year.
Speaker Change: I do want to believe that in 2025 the overall numbers would look the same as 2024, but we probably should go back to more traditional seasonality this year, where Q1 is usually the slowest quarter of the year.
Speaker Change: Q2 is a strong quarter and Q3, because of the fact that this is summer time, it's somewhere a soft quarter and then Q4 should return to be the strongest quarter of the year.
Speaker Change: You said you have, you know, multiple suppliers for the strategic components of your systems. I guess just in light of all the volatility we're seeing around potential tariffs and, you know, when they may be implemented, could you just maybe give us some comments around supply chain risk and how Inmode's, you know, thinking about what could happen if there are potential tariffs put in place, either Canada, Mexico, or China?
Speaker Change: Well, I mean, right now we don't suffer with any change in the tariff and duty and import taxes to Israel.
Speaker Change: Some of the components are made in Israel, so we don't have any problem. Some of the assemblies are made in Israel.
Some we buy from the U.S., the good stuff.
like diode laser, etc.
Speaker Change: and I hope that we will not see a 25% tariff like Canada and Mexico. I believe that the relationship between Israel and the United States are in a sense a good relationship and it will not happen to us.
Speaker Change: The fact that we have multiple suppliers in a different part of the world gives us some protection as well.
Speaker Change: in order to negotiate prices and lead time, etc. And we maintain all of them, and they know that they are in competition with others.
Speaker Change: So, if something will happen in the tariff structure vis-à-vis Israel, we are ready for that. It probably will not affect us.
All right, great. Thanks for the call, Moshe.
Speaker Change: The next question comes from Kaitlyn Cronin with Canaccord Genuity. Please go ahead.
Thank you.
Kaitlyn Cronin: Great, thanks for taking the questions. Just one on consumables. So I think global consumable services down about single digits year-over-year. What about the US consumables and services for the quarter?
Thank you. Bye. Bye.
Speaker Change: Well, the 20% that we lost in 2024 were equal in all the territories.
Kaitlyn Cronin: 20% in North America and 20% in ROW. Certain countries in Europe did well.
Kaitlyn Cronin: But the overall, if you count all Europe, or all Latin America, or the U.S., and Canada,
Speaker Change: Great and just some more color on the further capital return that you were talking about for this year and what that would entail and if it would also be tax efficient.
For more information, visit www.fema.gov
Speaker Change: The first 10% that we announced, this is pretty much the same 10% that we try to do every year. We believe it's going to be tax-efficient.
Speaker Change: As for future capital allocation programs, we will need to wait and see and we will report back. We are, of course, in discussions with experts and advisors, both on the tax world and the financial world.
Speaker Change: We would like to try to do it as tax-efficient as possible, but we will know only once we finalize it and report back to investors.
Speaker Change: I just want to add to what Yair said. In Israel, buyback is considered by the Israeli IRS as paying dividend. And therefore, you need to pay 20% tax.
Shabbat shalom.
Great, thank you.
The next question comes from...
and Mike Mattson with Needham.
and Company. Please go ahead.
Speaker Change: Thank you for taking my questions. I guess first, the EPS guidance that you guys are providing, does that account for the share repurchases that you're guiding to as well? No, we usually don't account for future share repurchase programs when we put guidance out.
Speaker Change: Alright, got it. And then, you know, it sounds like in 2024, you called out, there were some supply chain challenges in addition to lower demand.
Speaker Change: I mean, I don't know if it's possible to separate those two issues, but...
Speaker Change: Was there a situation where you could have sold more systems if your supply chain had been functioning better or was it really just purely an issue of demand not being there?
We had some delays in manufacturing.
Speaker Change: But, as you remember, we worked two or three shifts a day on the third quarter, and we have supplied $30 million of pre-orders that we received on the first and the second quarter.
Speaker Change: Q4, everything was back to normal and we delivered everything within a week or 10 days.
Speaker Change: So, the decrease in the revenue did not come because of logistic or supply chain or the war in Israel or, you know, disability to manufacture. We have two production lines, each one of two production facilities.
Speaker Change: So we didn't see any issue even during the months of the war to deliver. Sometime it was back order and we supplied them no later than one quarter.
Speaker Change: and high interest rate and basically macroeconomics and the fact that people, not enough people went to the doctor to get treatment.
Speaker Change: Okay so it sounds like it may be affected the quarterly sequencing but kind of on an annual basis you sort of caught up to where you would have otherwise been I guess. Is that a fair way to summarize it?
That's correct.
Speaker Change: Okay, all right and then finally just on the existing installed base, do you have any sense for how old those machines are on average and you know what I'm getting at is
Speaker Change: Could we start to see some sort of replacement cycle here at some point particularly now that you're launching some new new platforms or I guess upgraded or enhanced platforms with Ignite now?
Speaker Change: Well, we have something like 27,000 systems installed worldwide, out of which 12,000 in the United States.
So they are not very old.
Speaker Change: Don't forget, this is an RF system and if you maintain it right and you buy service contract from us, you can keep it, I don't know, more than 15 years.
We do see
Doctors are buying second machine.
Speaker Change: because of the new generation that we brought to the market. For example, Optimus Max versus Optimus.
Speaker Change: Ignite versus Body Tide, and the doctor wants to go to the newest version and keep the old one so they can work parallel in two rooms on two patients.
Speaker Change: But I don't think there is any install base or any system on the market that are not being used. We see from all of the systems, we believe they are still working.
Speaker Change: And I'll add to that that for 2025 we do plan to introduce some promotions for upgrades. Upgrading some of the old systems, the ones that have been out there in the field for more than 5 years, so the doctors did pay it off.
Speaker Change: And we are going to come up with some attractive promotions for them to upgrade to, especially the new Optimus Max and the new Ignite.
The next question comes from...
Speaker Change: from Jeff Johnson with Bayer. Please go ahead. Thank you. Good morning, guys. I guess just gross margin questions. We'll ask a couple, maybe it's a multi-part gross margin question. But in the fourth quarter, gross margin slipped below that 80% level. Is that just manufacturing inefficiencies from the lower volumes? Obviously, you know, you've been dealing with the Israel-Hamas war. Is it that? Is it higher costs on the supply chain?
Speaker Change: or, sorry, higher discounting you might be doing in the quarter. Just what puts that gross margin in the fourth quarter maybe below that 80% level?
Well, our gross margin in 2024 was above 80%.
Speaker Change: Now, we need to remember that we are manufacturing hardware and not software.
Speaker Change: Prices of components, sub-assemblies, and logistics and supply chains went up significantly in 2024.
Speaker Change: But we managed, you know, to be more efficient, although we lost 2 or 3% on the gross margin, we're still above 80%.
Speaker Change: The gross margin in 2024 was not because of the war or inefficient in the logistic. We're still very efficient in the logistic and in the manufacturing.
Speaker Change: and we did not cut personnel and we did not cut people and there was always, you know, fixed cost in any product.
Speaker Change: which we maintain because that's the IP of the product, of the company.
Speaker Change: And therefore, I believe that's one of the reasons why we lost, I don't know, maybe 1 or 2 percent.
Speaker Change: The second reason is we did not waste prices and prices of components and sub-assembly went up in 2024.
Speaker Change: We believe that in 2025, once we see a new momentum, we will be able to recover 2-3% on the gross margin.
Speaker Change: Okay, and then I guess two follow-ups on that, Moshe. One, so as we're hopefully moving beyond the Israeli-Amex war, you don't believe that's going to help just from a workflow efficiency standpoint, anything like that, that alone not enough to pick up, number one.
Speaker Change: in the 80s and, you know, solid gross margins for capital equipment is that the RF technology is, you know, relatively low cost to manufacture, especially relative to the ASP getting the field to the system. So is CO2 laser manufacturing, is it a lower gross margin product? Are the input costs and guts of the system more expensive than RF? Thank you.
Speaker Change: Well, good question. You asked two questions. One, I mean, we all hope that the war and the ceasefire will continue, especially on the north.
Speaker Change: So, we will not go back to a war situation, as you know we are in the north and that was a war zone up to three months ago, or even something like that.
Speaker Change: Your second question regarding the gross margin on RF versus laser
The RF, the gross margin, is higher.
Speaker Change: because to manufacture laser costs more. And therefore, the gross margin that we report is the average between all the RF
Speaker Change: IPL, LASER, and all the other platforms that all the other indications that we cover in each platform.
Understood. Thank you.
Valmoud
Speaker Change: The next question comes from Sam Iber with BTIC. Please go ahead.
Speaker Change: Hi, good morning. Thanks for taking the questions. Maybe just following up on the last question. Anything on timing you can say for the CO2 laser?
Speaker Change: It sounded like you already do have FDA approval. And then, you know, if I'm reading, you know, your commentary, right. You know, that's going to be a multi application platform with Morpheus. You know, we just love to hear how you're positioning that in the marketplace.
Speaker Change: No, the CO2 laser is only CO2. It cannot carry any RF. It's a laser device.
Speaker Change: Timing? Hopefully, we will start seeing attraction in the U.S. market because, currently, we have only FDA. We don't have other regulation on this platform. I mean, for other countries.
Speaker Change: and therefore sometime toward the end of the first quarter and the beginning of the second quarter.
Speaker Change: Okay that's helpful and I think it's been a couple quarters since you know we heard any updates on some of the adjacent products like Empower and Envision. Just wondering the latest on how some of those are doing over the last couple quarters.
Well, like the full portfolio...
Speaker Change: 2024, Envision and Empower went down also around 20%, and therefore, I mean, once the market will pick up, we will see some increase on this medical, or so-called medical product as well.
Thank you.
Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to Moshe Mizrahi, InMode CEO, for closing remarks.
Moshe Mizrahi: Thank you, operator. Thank you, Miri. I would like to thank everybody who was on the line.
Moshe Mizrahi: the Israeli team and the U.S. team and other teams around the world.
Shabbat Shalom.
Moshe Mizrahi: We do hope that 2025 will be a better year than 2024. We don't see it yet, but hopefully it will come in the next following months. Thank you, everybody.
Moshe Mizrahi: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.