Intuitive Surgical, Inc. (NASDAQ:ISRG) Q2 2023 Earnings Conference Call July 20, 2023 4:30 PM ET Company Participants Brian King - Head of IR Gary Guthart - CEO Jamie Samath - CFO Conference Call Participants Larry Biegelsen - Wells Fargo Travis Steed - Bank of America Robbie Marcus - JPMorgan Rick Wise - Stifel Richard Newitter - Truist Securities Ryan Zimmerman - BTIG Drew Ranieri - Morgan Stanley Operator Ladies and gentlemen, thank you for standing by and welcome to the Intuitive Q2 2023 Earnings Releas ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30713 Intuitive Surgical, Inc. (Exact name of Registrant as specified in its Charter) Delaware 77-0416458 (State or Other Jurisd ...

Intuitive Surgical, Inc. (NASDAQ:ISRG) Q1 2023 Earnings Conference Call April 18, 2023 4:30 PM ET Company Participants Brian King - Head-Investor Relations Gary Guthart - Chief Executive Officer Jamie Samath - Chief Financial Officer Conference Call Participants Travis Steed - Bank of America Robbie Marcus - JPMorgan Larry Biegelsen - Wells Fargo Jayson Bedford - Raymond James Richard Newitter - Truist Securities Matt Taylor - Jefferies Drew Ranieri - Morgan Stanley Operator Ladies and gentlemen, thank you ...

Revenue and Market Dynamics - Domestic revenue accounted for 67% of total revenue in 2022, while revenue from OUS markets accounted for 33%[38] - Revenue from OUS markets accounted for approximately 33% of total revenue in 2022, 33% in 2021, and 32% in 2020[103] - The company has experienced fluctuations in capital sales cycles, with historically higher sales in the fourth quarter and lower in the first quarter, affecting financial results[100] - The company is highly dependent on key personnel; losing them could harm competitive ability and increase labor costs, adversely affecting financial condition[95] - The company faces significant competition from various firms in the robotic-assisted medical systems market, including Asensus Surgical, Johnson & Johnson, and Medtronic, which may impact revenue due to pricing pressure and product effectiveness[88] - Market acceptance of the da Vinci Surgical System is crucial; if it fails to achieve or maintain acceptance among physicians and payors, revenue generation will be adversely affected[88] - In the U.S., hospitals rely on third-party payors for reimbursement; insufficient coverage could hinder the company's ability to generate necessary sales[89] - Recent regulations in China have imposed limits on what hospitals can charge for robotic surgeries, negatively impacting procedures in provinces like Hunan and Hainan[89] Regulatory Compliance and Challenges - The company’s products are classified as Class II medical devices, requiring premarket notification under Section 510(k) of the FFDCA[48] - The FDA has proposed reforms to the 510(k) clearance process, potentially increasing requirements for clinical data and extending review periods[49] - The company must comply with the Quality System Regulation (QSR) to continue marketing cleared or approved products in the U.S.[49] - The company is pursuing compliance with the EU Medical Devices Regulation (MDR) by May 26, 2024, with potential extensions for higher classification devices[59] - The company is subject to extensive product and quality system regulations in foreign markets, which may vary significantly from U.S. regulations[55] - The company must demonstrate compliance with U.S. regulations for products manufactured outside the U.S. to avoid access issues[51] - The company is subject to various healthcare regulations, including the federal Anti-Kickback Statute and False Claims Act, which could result in substantial penalties if violated[147] - The company must report adverse medical events to the FDA, and failure to do so could result in sanctions and harm to reputation[140] - The FDA may impose significant limitations on the intended use of products as a condition for granting marketing authorization, potentially affecting sales[139] - The company is subject to periodic inspections by regulatory authorities, and non-compliance by customers could lead to suspension of system utilization[150] Research and Development - The company invests substantially in research and development, which may not generate significant operating income for several years[102] - The company collaborates with other companies, such as Baxter International Inc., to enhance its research and development efforts[41] - The company had 1,651 employees engaged directly in research and development, 4,843 in manufacturing operations, and 3,834 in commercial and service operations as of December 31, 2022[69] Financial Performance and Risks - Recent macroeconomic conditions, including high inflation and rising interest rates, have negatively impacted demand for the company's products, potentially affecting financial results[81] - The company has experienced significant increases in costs for raw materials, transportation, and logistics, which could adversely affect profit margins[81] - Hospitals are facing financial pressures due to staffing shortages and increased costs, which may lead to reduced capital spending on medical equipment[81] - The company faces risks from foreign currency exchange rate fluctuations, which could adversely affect revenue and margins[106] - The investment portfolio is subject to credit risk and market value fluctuations, which could materially impact financial condition[122] - The company’s stock price has experienced significant volatility, with highs of $365.42 and lows of $183.06 in 2022[157] - Future operating results may fall below analysts' expectations, potentially leading to a decline in stock price[155] Employee Engagement and Corporate Responsibility - The company aims to enhance employee retention and engagement through ongoing learning and leadership training opportunities, including a twelve-month manager development program[74] - The company has implemented health and wellness programs for employees, focusing on workplace safety and mental health support[71] - The company has a commitment to fair and equitable pay, regularly reviewing compensation for internal equity and compliance with pay equity laws[73] - The company contributed $85 million to the Intuitive Foundation since its inception in 2018, focusing on health, education, and reducing human suffering[75] Cybersecurity and Data Privacy - The company has established a cybersecurity program to protect sensitive information, including continuous monitoring and encryption of critical data[53] - The company is subject to the General Data Protection Regulation (GDPR) in the EU, which imposes comprehensive data privacy compliance obligations[52] - Cybersecurity deficiencies could harm business operations and customer relations, affecting financial condition and results[108] - The company faces increasing cybersecurity risks due to reliance on internet technology and remote work, which may create vulnerabilities for cybercriminals to exploit[110] - The company maintains cyber insurance coverage, but it may be insufficient to cover all potential losses or claims arising from data security risks[111] Supply Chain and Manufacturing - Supply chain constraints and difficulties in obtaining semiconductor materials are expected to persist, impacting the company's ability to meet product demand[82] - The company is actively seeking to mitigate supply disruptions by increasing communication with suppliers and adjusting inventory levels[82] - Manufacturing challenges may lead to significant revenue loss due to issues such as production yields, quality control, and supply shortages[124] - The company has a wholly owned manufacturing facility in Mexicali, Mexico, which is registered with the FDA and operates under U.S. and international quality system regulations[138] Market and Competitive Landscape - The competitive landscape remains challenging, with customers potentially opting for competitors' products or traditional procedures over robotic-assisted options[86] - Legislative changes, including the ACA and Medicare payment reductions, could materially affect the company's business and market access[67] - The healthcare industry's consolidation is expected to intensify competition, resulting in pricing pressures and decreased average selling prices[128] - The company faces risks from strategic relationships with distributors, which could impact revenue if these relationships are terminated[121] Legal and Compliance Risks - Legal proceedings, including product liability claims, could divert management's attention and negatively impact the company's financial condition[86] - The company incurs substantial costs in obtaining and defending patent rights, which are critical for its competitive position in the market[151] - The company is exposed to risks associated with intellectual property, including potential infringement claims that could result in substantial damages or injunctions against product commercialization[151] - Compliance with complex foreign and U.S. laws increases operational costs and exposes the company to potential fines and penalties[149] Environmental and Economic Factors - Climate change and natural disasters pose risks that could disrupt operations, leading to potential revenue loss and increased costs[130] - Changes in effective tax rates could adversely affect the company's financial condition and results of operations[133] - The ongoing conflict between Russia and Ukraine may disrupt supply chains and financial markets, potentially affecting the company's operations[123]

Intuitive Surgical, Inc. (NASDAQ:ISRG) Q4 2022 Earnings Conference Call January 24, 2023 4:30 PM ET Company Participants Brian King - Head-Investor Relations Gary Guthart - Chief Executive Officer Jamie Samath - Chief Financial Officer Conference Call Participants Robbie Marcus - JPMorgan Larry Biegelsen - Wells Fargo Travis Steed - Bank of America Rick Wise - Stifel Matt Taylor - Jefferies Anthony Petrone - Mizuho Group Shagun Singh - RBC Operator Ladies and gentlemen, good afternoon. Thank you for standin ...

Summary of Intuitive Surgical, Inc. Conference Call Company Overview - **Company**: Intuitive Surgical, Inc. (NASDAQ: ISRG) - **Event**: 41st Annual JPMorgan Healthcare Conference Call - **Date**: January 11, 2023 - **Participants**: Gary Guthart (CEO), Jamie Samath (CFO), Brian Miller (Chief Digital Officer) Key Industry Insights - **Minimally Invasive Care**: The company emphasizes the transformative potential of minimally invasive surgical techniques, which have been its mission since inception in 1995 [2][3] - **Procedure Growth**: In 2022, physicians using Intuitive's products performed nearly 1.9 million procedures, reflecting an 18% growth from the previous year [4][9] - **Market Penetration**: The company estimates that it is currently less than one-third penetrated in its target market, with a potential to grow to 20 million procedures over time [15][16] Financial Performance - **Revenue Growth**: The anticipated growth range for 2023 is between 12% to 16%, influenced by factors such as COVID-19 impacts and staffing constraints in hospitals [10][45] - **Recurring Revenue**: Approximately 80% of the company's revenue is derived from recurring sources, including instruments, accessories, and service contracts [14] - **Operating Expenses**: Operating expenses as a percentage of sales were about 34% in Q3 2022, slightly higher than pre-COVID levels [50] Strategic Initiatives - **Diversification**: The company is focusing on diversifying its growth beyond urology, with significant growth in general surgery and international markets [6][15] - **Innovation and Technology**: Intuitive Surgical is investing in digital technologies and flexible robotics, with a focus on enhancing surgical capabilities and improving patient outcomes [9][29][37] - **Supply Chain Management**: The company is addressing supply chain disruptions and inflationary pressures, which have impacted operational efficiency [6][42] Market Dynamics - **Capital Equipment Environment**: The capital equipment market is characterized as cautious, with customers reevaluating their capital budgets due to inflation and staffing pressures [40][42] - **Competitive Landscape**: While the company maintains a strong market position, it acknowledges the presence of new competitors and emphasizes the importance of customer choice and product dependability [54][56] Customer Engagement - **Customer Satisfaction**: The company reported a Net Promoter Score of 79, indicating strong customer appreciation for its products and services [35] - **Quadruple Aim**: Intuitive Surgical aims to demonstrate better outcomes for patients, improved experiences for care teams, and lower total costs for hospitals [20][23] Future Outlook - **Growth Opportunities**: The company is focused on increasing utilization and penetration in target procedures, expanding indications for its products, and enhancing operational efficiencies [37][26] - **Regulatory Environment**: The company is navigating changes in regulatory requirements, which have affected the pace of product development [52] Conclusion Intuitive Surgical is positioned for continued growth through innovation, strategic diversification, and a focus on customer satisfaction, despite facing challenges in the current economic environment. The company remains committed to enhancing surgical care and expanding its market presence globally.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30713 Intuitive Surgical, Inc. (Exact name of Registrant as specified in its Charter) Delaware 77-0416458 (State or Other Ju ...

Intuitive Surgical, Inc. (NASDAQ:ISRG) Q3 2022 Earnings Conference Call October 18, 2022 4:30 PM ET Company Participants Brian King - Head, Investor Relations Gary Guthart - Chief Executive Officer Jamie Samath - Chief Financial Officer Conference Call Participants Travis Steed - Bank of America Amit Hazan - Goldman Sachs Larry Biegelsen - Wells Fargo Robbie Marcus - JPMorgan Richard Newitter - Truist Jayson Bedford - Raymond James Matt Taylor - Jefferies Adam Maeder - Piper Sandler Matt Miksic - Barclays D ...

Intuitive Surgical, Inc. (NASDAQ:ISRG) Q2 2022 Earnings Conference Call July 21, 2022 4:30 PM ET Company Participants Brian King – Head-Investor Relations Gary Guthart – Chief Executive Officer Jamie Samath – Chief Financial Officer Conference Call Participants Larry Biegelsen – Wells Fargo Amit Hazan – Goldman Sachs Travis Steed – Bank of America Robbie Marcus – JPMorgan Rick Wise – Stifel Richard Newitter – Truist Operator Ladies and gentlemen, good afternoon. Thank you for standing by as today's confere ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 000-30713 Intuitive Surgical, Inc. (Exact name of Registrant as specified in its Charter) Delaware 77-0416458 (State or Other Jurisdi ...