Intuitive Surgical, Inc.'s (ISRG) CEO Gary Guthart at 39th Annual JPMorgan Healthcare Conference (Transcript)

Summary of Intuitive Surgical, Inc. Conference Call Company Overview - Company: Intuitive Surgical, Inc. (NASDAQ: ISRG) - Event: 39th Annual JPMorgan Healthcare Conference - Date: January 13, 2021 - Participants: Gary Guthart (CEO), Marshall Mohr (CFO), Philip Kim (Head, IR) Key Points Industry and Market Context - Surgical Procedures: Over 1.2 million procedures using da Vinci systems in 2020, with a total of more than 8.5 million procedures performed historically [3][4] - Installed Base: Almost 6,000 da Vinci systems installed globally, with a clinical library of over 24,000 peer-reviewed publications [4] - Pandemic Impact: 2020 was marked by disruptions due to COVID-19, affecting elective surgeries and diagnostic pipelines [7][10] Financial Performance - Revenue Trends: 3% drop in revenue compared to 2019, attributed to changes in utilization due to the pandemic [11] - Recurring Revenue: Increased recurring revenue, which is expected to continue growing as customers adopt flexible financing options [12] - System Placements: Installed base growth of 7% in 2020, indicating a vote of confidence in robotic-assisted surgery despite pandemic challenges [11] Product Development and Innovation - New Products: Successful launch of the Ion flexible endoscopy product, with demand exceeding expectations [8][36] - SP Product Growth: Single Port (SP) system saw a 64% year-over-year growth in procedures [25] - Imaging and Analytics: Introduction of the IRIS program for pre-operative imaging, which is expected to change 20% of kidney cancer surgeries [31][52] Regulatory and Operational Challenges - Regulatory Delays: Lengthening regulatory timelines for robotic surgery innovations in the U.S. and Europe, impacting time-to-market and costs [8][13] - Supply Chain Issues: Challenges in manufacturing and supply due to COVID-19 quarantines, but efforts are underway to resolve these issues [9] Future Outlook - Market Potential: Approximately 20 million surgeries annually in the relevant disciplines, with Intuitive targeting to grow its competitive share from 6 million procedures [14][15] - Investment Focus: Continued investment in product quality, ecosystem enhancement, and customer support as the company navigates post-pandemic recovery [38][39] Customer Engagement and Satisfaction - Net Promoter Score: High customer satisfaction reflected in a strong Net Promoter Score, indicating positive reception of new innovations and support programs [29][30] - Learning Systems: Over 12,000 surgeons engaged in simulation training, enhancing their skills and improving surgical outcomes [37] Market Dynamics - Bariatric Surgery Growth: Increased interest in bariatric procedures, driven by patients' awareness of obesity-related health risks during the pandemic [55] - Cholecystectomy Sustainability: Continued value seen in Schölly procedures, with high utilization of Firefly technology [57] Additional Insights - Data Utilization: Emphasis on using data analytics to improve surgical outcomes and operational efficiencies [18][21] - Ecosystem Approach: Focus on creating a comprehensive ecosystem that supports robotic surgery, including training, analytics, and regulatory compliance [18][19] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the company's performance, challenges, and strategic direction in the surgical robotics industry.