InMode Reports Second Quarter 2020 Financial Results; Quarterly Revenues of $30.8 Million, GAAP and *Non-GAAP Diluted Earnings per Share of $0.21 and $0.24

YOKNEAM, Israel, Aug. 5, 2020 /PRNewswire/ -- InMode Ltd. (Nasdaq: INMD) ("InMode"), a leading global provider of innovative medical technologies, today announced consolidated financial results for its second quarter ended June 30, 2020.

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Second Quarter 2020 Highlights:

    --  Quarterly revenue of $30.8 million, a decrease of 21% compared to the
        second quarter of 2019; approximately 53% of U.S. quarterly revenues
        derived from our proprietary surgical technology platforms engaged in
        minimally invasive and subdermal ablative treatments, approximately 46%
        of U.S. quarterly revenues derived from our recently introduced
        hands-free platforms and approximately 1% derived from our traditional
        laser and non-invasive RF platforms
    --  GAAP net income of $8.6 million, compared to $15.8 million in the second
        quarter of 2019; *non-GAAP net income of $10.1 million, compared to
        $16.1 million in the second quarter of 2019
    --  GAAP diluted earnings per share of $0.21 compared to $0.45 in the second
        quarter of 2019; *non-GAAP diluted earnings per share of $0.24 compared
        to $0.45 in the second quarter of 2019
    --  Total cash position of $203.4 million as of June 30, 2020, including
        cash and cash equivalents, marketable securities and short-term bank
        deposits


                                                                                                                
            
              U.S. GAAP Results

                                                                                                   
            (U.S. dollars in thousands, except for per share data)

                                                                                                                                 ---

                                                                                                                                   
            
                       Q2 2020         
     
     Q2 2019

                                                                                                                                                                                               ---

                                                 
            Revenues                                                                                                      $30,765             $38,797

                                                        ---

                                               
            Gross Margins                                                                                                       85%                87%

                                                        ---

                              
            Net Income 
            Attributable to InMode Ltd.                                                                                   $8,588             $15,797

                                                        ---

                                        
            Earnings per Diluted Share                                                                                               $0.21               $0.45

                                                        ---

                                                                                                              
            
              *Non-GAAP Results
                                                                                            
            
            (U.S. dollars in thousands, except for per share data)

                                                                                                                               ---

                                                                                                                                   
            
                       Q2 2020         
     
     Q2 2019

                                                                                                                                                                                               ---

                                  
            Net Income Attributable to InMode Ltd.                                                                                       $10,096             $16,081

                                                        ---

                                        
            Earnings per Diluted Share                                                                                               $0.24               $0.45

                                                        ---




            
              *Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial
    measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial
    statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax
    adjustments.

Management Comments

"The second quarter of 2020 was both challenging and encouraging. In June, after three months of global shutdowns relating to the global COVID-19 pandemic, elective surgeries began to come back throughout the United States and internationally, and aesthetic surgeons re-opened their clinics, which allowed for one month of sales and marketing operation in the quarter. Our continued commitment to the welfare of employees and customers, and our decision not to downsize our sales and marketing organization during the shutdown, unlike some of our competitors, proved to be instrumental in allowing us to act quickly and continue to capture market share," commented Moshe Mizrahy, InMode's CEO.

"During the quarter, we leveraged our InMode University platform for securing customer relationships, strengthening our brand, training our experienced sales team and physicians on InMode's hands-free technology and platforms, and ultimately generating sales as restrictions loosened. Given our commitment to the future, we continued to invest in our direct marketing and sales organization," commented Shakil Lakhani, President of North America.

"In addition, we made progress in our clinical and regulatory processes internationally. In June, we were excited to receive the Health Canada certification for Evolve Tone, which is Canada's first and only all-in-one hands-free device consisting of three unique body remodeling technologies- Tite, Trim and Tone. Furthermore, in July, we received clearance from the China National Medical Products Administration (NMPA) for two proprietary InMode RF platforms, which we believe is a significant milestone as we continue to expand our global footprint," noted Dr. Spero Theodorou, InMode's Chief Medical Officer.

"As we continue to build out our organization in a safe and conscientious manner, we believe our unique and innovative R&D pipeline for our product portfolio will attract both physicians and patients post-crisis, as the desire for minimally invasive and hands-free alternatives is expected to move to the forefront of consumer decision-making," added Dr. Michael Kreindel, InMode's Chief Technology Officer.

2020 Guidance

We expect that our revenue for the full year of 2020 will be between $156-$160 million, and we intend to maintain a gross margin of 84%-86%.

This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.

Second Quarter 2020 Financial Results

Total revenues for the second quarter of 2020 were $30.8 million, a decrease of 21% as compared to the second quarter of 2019. The decrease in revenue was primarily due to the impact of the global COVID-19 pandemic, in which the U.S. market had significantly reduced activity during the economic standstill and shutdowns in April and May. Nonetheless, InMode continued to gain traction in international markets, with international revenue growing 10% year-over-year.

Gross margin for the second quarter of 2020 was 85% compared to a gross margin of 87% in the second quarter of 2019. This decrease is primarily attributable to the expansion of our operations team, as well as an increase in the cost of certain parts and materials due to the impact of the global COVID-19 pandemic.

GAAP operating margin for the second quarter of 2020 was 26%, compared to 41% in the second quarter of 2019. *Non-GAAP operating margin for the second quarter of 2020 was 30%, compared to 42% in the second quarter of 2019. This decrease was primarily attributable to the sales cycle in April and May being interrupted by the global COVID-19 pandemic, and as a result, marketing expenditure did not translate into sales during those months.

InMode reported GAAP net income attributable to InMode Ltd. of $8.6 million, or $0.21 per diluted share in the second quarter of 2020 compared to $15.8 million, or $0.45 per diluted share, in the second quarter of 2019. On a *non-GAAP basis, InMode reported net income attributable to InMode Ltd. of $10.1 million, or $0.24 per diluted share in the second quarter of 2020 compared to $16.1 million, or $0.45 per diluted share, in the second quarter of 2019.

"Our strong balance sheet, profitable business model and positive cashflow, which continued to be present throughout the COVID-19 crisis, has been one of InMode's main strengths and competitive advantages, and has allowed us to continue our growth momentum in the United States and internationally," noted Yair Malca, InMode's CFO.

*Please refer to "Use of non-GAAP Financial Measures" below for important information about non-GAAP financial measures. A reconciliation between U.S. GAAP and non-GAAP Statement of Income is provided following the financial statements that are included in this release. Non-GAAP results exclude share-based compensation and related tax adjustments.

Use of Non-GAAP Financial Measures

In addition to InMode's operating results presented in accordance with GAAP, this release includes certain non-GAAP financial measures including non-GAAP net income, non-GAAP diluted earnings per share and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes that they provide greater transparency to investors of management's view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare the performance of InMode to that of its peers, although InMode's presentation of its non-GAAP measures may not be comparable to other similarly-titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

Conference Call Information

Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, co-founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, August 5, 2020, at 8:30 a.m. Eastern Time to discuss the second quarter 2020 financial results.

The Company encourages participants to pre-register for the conference call using the following link: http://dpregister.com/10145846. Callers will receive a unique dial-in upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers that opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call ten minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

U.S. Toll-Free Dial-in Number: 1-866-777-2509
Israel Toll- Free Dial-in Number: 1-80-921-2373
International Dial-in Number: 1-412-317-5413
At:
8:30 a.m. Eastern Time
5:30 a.m. Pacific Time
3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at https://inmodemd.com/investors/events-presentations/. A replay of the conference call will be available from August 5, 2020 at 12 p.m. Eastern Time to August 12, 2020 at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

Replay Dial-in U.S TOLL-FREE: 1-877-344-7529
Replay Dial-in Canada TOLL-FREE:
855-669-9658
Replay Dial-in TOLL/INTERNATIONAL: 1-412-317-0088
Replay Pin Number: 10145846

A replay will also be available for 90 days on InMode's website at https://inmodemd.com/investors/.

About InMode

InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures, and markets devices harnessing novel radio-frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically-accepted minimally-invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit www.inmodemd.com.

Forward-Looking Statements

The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2020 Guidance". Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategy plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form F-20 filed with the Securities and Exchange Commission on February 18, 2020, risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.



     Company Contact:               
     Investor Relations Contact:


     Yair Malca                     
     Miri Segal


     Chief Financial Officer        
     MS-IR LLC


     Phone: (949) 305-0108          
     Phone: (917) 607-8654


     Email: Yair.Malca@inmodemd.com 
     Email: ir@inmodemd.com


                                                                           
              
                INMODE LTD.


                                                                  
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                                            
              (U.S. dollars in thousands, except for per share data)


                                                                                  
              (Unaudited)




                                                                                                                                               Three months ended            Six months ended


                                                                                                                                                                    June 30,                  June 30,

                                                                                                                                                               ---

                                                                                                                                    2020   2019         2020         2019

                                                                                                                                                                   ---


              
                REVENUES                                                                                              30,765 38,797       71,206       69,349



              
                COST OF REVENUES                                                                                       4,695  4,875       10,879        9,146



              
                GROSS PROFIT                                                                                          26,070 33,922       60,327       60,203



              
                OPERATING EXPENSES:



              Research and development                                                                                            1,816  1,584        5,248        2,783



              Sales and marketing                                                                                                14,536 15,898       37,535       29,995



              General and administrative                                                                                          1,613    713        3,436        1,766



              
                TOTAL OPERATING EXPENSES                                                                              17,965 18,195       46,219       34,544



              
                INCOME FROM OPERATIONS                                                                                 8,105 15,727       14,108       25,659



              Finance income, net                                                                                                   636    382        1,265          785



              
                INCOME BEFORE TAXES                                                                                    8,741 16,109       15,373       26,444



              
                INCOME TAXES                                                                                             161    274          302          451



              
                NET INCOME                                                                                             8,580 15,835       15,071       25,993



              Add: Loss (net income) attributable to non-controlling interests                                                        8   (38)        (50)        (72)



              
                NET INCOME ATTRIBUTABLE TO INMODE LTD.                                                                 8,588 15,797       15,021       25,921





              
                NET INCOME PER SHARE (1):



              Basic                                                                                                                0.24   0.58         0.43         0.96



              Diluted                                                                                                              0.21   0.45         0.36         0.73

                                                                                                                                                                   ---


              
                WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
    USED IN COMPUTATION OF NET INCOME PER SHARE (1)



              Basic                                                                                                              35,943 26,963       34,956       26,891

                                                                                                                                                                   ---


              Diluted                                                                                                            41,733 35,344       41,709       35,334

                                                                                                                                                                   ---




              (1) The number shares have been adjusted retroactively for a 1-for-1.789 stock split of InMode shares by way of an
    issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated July 24, 2019.


                                                                          
              
                INMODE LTD.


                                                                    
             CONDENSED CONSOLIDATED BALANCE SHEETS


                                                                  
       (U.S. dollars in thousands, except for per share data)


                                                                                
              (Unaudited)




                                                                                                                             June 30, 
     
     December 31,

                                                                                                                                 2020              2019

                                                                                                                                                   ---


     
                Assets



     
                CURRENT ASSETS:



     Cash and cash equivalents                                                                                                64,767            44,727



     Marketable securities                                                                                                   106,668           120,144



     Short-term bank deposits                                                                                                 31,971            28,491



     Accounts receivable, net of allowance for doubtful accounts                                                               8,608             6,628



     Other receivables                                                                                                         5,327             3,810



     Inventories                                                                                                              16,227             9,408




     
                TOTAL CURRENT ASSETS                                                                                       233,568           213,208




     
                NON-CURRENT ASSETS:



     Accounts receivable                                                                                                         383               374



     Deferred income taxes, net                                                                                                  993             1,899



     Operating lease right-of-use assets                                                                                       1,413             1,369



     Property and equipment, net                                                                                               1,061               935



     Other investments                                                                                                           600               600




     
                TOTAL NON-CURRENT ASSETS                                                                                     4,450             5,177




     
                TOTAL ASSETS                                                                                               238,018           218,385






     
                Liabilities and shareholders' equity



     
                CURRENT LIABILITIES:



     Accounts payable                                                                                                          4,026             3,702



     Contract liabilities                                                                                                     10,283            15,587



     Other liabilities                                                                                                        13,503            13,205




     
                TOTAL CURRENT LIABILITIES                                                                                   27,812            32,494




     
                NON-CURRENT LIABILITIES:



     Contract liabilities                                                                                                      2,447             3,813



     Other liabilities                                                                                                         1,836             1,494



     Operating lease liabilities                                                                                                 660               744



     Deferred income taxes, net                                                                                                  107                37




     
                TOTAL NON-CURRENT LIABILITIES                                                                                5,050             6,088




     
                TOTAL LIABILITIES                                                                                           32,862            38,582






     
                TOTAL SHAREHOLDERS' EQUITY                                                                                 205,156           179,803




     
                TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY                                                                 238,018           218,385


                                                                     
              
                INMODE LTD.


                                                         
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                      
              (U.S. dollars in thousands, except for per share data)


                                                                           
              (Unaudited)




                                                                                                                                         Three months ended              Six months ended


                                                                                                                                                                June 30,                  June 30,



                                                                                                                            2020     2019         2020         2019

                                                                                                                                                             ---


              
                CASH FLOWS FROM OPERATING ACTIVITIES:



              Net income                                                                                                  8,580   15,835       15,071       25,993



              Adjustments required to reconcile net income to net cash
    provided by operating activities:



              Depreciation and amortization                                                                                 105       74          199          137



              Share-based compensation expenses                                                                           1,160      412        7,210          814



              Allowance for doubtful accounts                                                                               160       19          466           78



              Gains on marketable securities, net                                                                           (3)                 (9)           -



              Finance expenses (income), net                                                                                 79    (126)         268        (309)



              Deferred income taxes, net                                                                                    458     (77)         826        (143)



              Changes in operating assets and liabilities:



              Decrease (increase) in accounts receivable                                                                (3,045)   1,580      (2,455)       1,727



              Decrease (increase) in other receivables                                                                       63      291      (1,497)       1,164



              Increase in inventories                                                                                   (4,141)   (524)     (6,819)       (653)



              Increase (decrease) in accounts payable                                                                     (690)   1,085          324           70



              Increase in other liabilities                                                                               2,323      465          530           16



              Increase (decrease) in contract liabilities                                                               (3,725)   (533)     (6,670)       2,378



              Decrease in accrued contingencies                                                                                                        (10,000)




              Net cash provided by operating activities                                                                   1,324   18,501        7,444       21,272

                                                                                                                                                             ---


              
                CASH FLOWS FROM INVESTING ACTIVITIES:



              Investment in short-term deposit                                                                         (15,090) (6,090)    (31,609)    (17,090)



              Proceeds from short-term deposit                                                                           13,590    5,000       28,090       10,000



              Purchase of fixed assets                                                                                    (226)    (86)       (325)       (464)



              Purchase of marketable securities                                                                        (34,376) (9,421)    (78,309)    (14,339)



              Proceeds from sale of marketable securities                                                                53,712    2,000       92,286        4,603

                                                                                                                                                             ---


              Net cash provided by (used in) investing activities                                                        17,610  (8,597)      10,133     (17,290)

                                                                                                                                                             ---


              
                CASH FLOWS FROM FINANCING ACTIVITIES:



              Exercise of options                                                                                           549       15        2,550          137

                                                                                                                                                             ---


              Net cash provided by financing activities                                                                     549       15        2,550          137



              
                EFFECT OF EXCHANGE RATE CHANGES ON CASH                                                          146        7         (87)          37

                                                                                                                                                             ---


              
                NET INCREASE IN CASH AND CASH EQUIVALENTS                                                     19,629    9,926       20,040        4,156





              
                CASH AND CASH EQUIVALENTS AT BEGINNING OF                                                     45,138   18,951       44,727       24,721
    PERIOD

                                                                                                                                                             ---


              
                CASH AND CASH EQUIVALENTS AT END OF PERIOD                                                    64,767   28,877       64,767       28,877

                                                                                                                                                             ---


                                   
              
                INMODE LTD.


                          
              CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS


                    
              (U.S. dollars in thousands, except for per share data)


                                          
              (Unaudited)




                                                                                              Three months ended              Six months ended


                                                                                                                     June 30,                  June 30,

                                                                                                              ---

                                             
              
                2020          2019   2020         2019

                                                                      ---


     
                Revenues by Geography:



     United States                                                              24,060 32,721       54,883       56,806



     International                                                               6,705  6,076       16,323       12,543

                                                                                                                  ---


     
                Total Net Revenue                                             30,765 38,797       71,206       69,349

                                                                                                                  ---


     U.S. as percentage of total revenue                                           78%   84%         77%         82%


                                                                                                                                      
              
                INMODE LTD.


                                                                                                                     
              RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF


                                                                                                                   
              INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                                                                                                       
              (U.S. dollars in thousands, except for per share data)


                                                                                                                                             
              (Unaudited)




                                                                                                                                      Three months ended June 30, 2020                       Three months ended June 30, 2019

                                                                                                                                                                                                                          ---

                                                                  GAAP                                                                    Share Based Compensation                                       Non-GAAP                           GAAP   Share Based
                                                                                                                                                                                                                                                 
        Compensation     Non-GAAP

                                                      ---


              
                REVENUES                                                                                                                            30,765                                                         30,765  38,797                               38,797



              
                COST OF REVENUES                                                                                                                     4,695                                                   (149)  4,546   4,875                    (22)        4,853

                                                                                                                                                                                                                                                                            ---


              
                GROSS PROFIT                                                                                                                        26,070                                                     149  26,219  33,922                      22        33,944



              
                OPERATING EXPENSES:



              Research and development                                                                                                                          1,816                                                   (122)  1,694   1,584                    (56)        1,528



              Sales and marketing                                                                                                                              14,536                                                   (757) 13,779  15,898                   (309)       15,589



              General and administrative                                                                                                                        1,613                                                   (132)  1,481     713                    (25)          688



              
                TOTAL OPERATING EXPENSES                                                                                                            17,965                                                 (1,011) 16,954  18,195                   (390)       17,805

                                                                                                                                                                                                                                                                            ---


              
                INCOME FROM                                                                                                                          8,105                                                   1,160   9,265  15,727                     412        16,139
    OPERATIONS



              Finance income, net                                                                                                                                 636                                                            636     382                                  382

                                                                                                                                                                                                                                                                            ---


              
                INCOME BEFORE TAXES                                                                                                                  8,741                                                   1,160   9,901  16,109                     412        16,521

                                                                                                                                                                                                                                                                            ---


              
                INCOME TAXES (TAX                                                                                                                      161                                                   (348)  (187)    274                     128           402
    BENEFIT)

                                                                                                                                                                                                                                                                            ---


              
                NET INCOME                                                                                                                           8,580                                                   1,508  10,088  15,835                     284        16,119



              Add: Loss (net income)                                                                                                                                8                                                              8    (38)                                (38)
    attributable to non-controlling
    interests

                                                                                                                                                                                                                                                                            ---


              
                NET INCOME                                                                                                                           8,588                                                   1,508  10,096  15,797                     284        16,081
    ATTRIBUTABLE TO
    INMODE LTD.

                                                                                                                                                                                                                                                                            ---



                            NET INCOME PER 
                
                
                  
                    SHARE
                             (1):



              Basic                                                                                                                                              0.24                                                           0.28    0.58                                 0.59

                                                                                                                                                                                                                                                                            ---


              Diluted                                                                                                                                            0.21                                                           0.24    0.45                                 0.45

                                                                                                                                                                                                                                                                            ---


              
                WEIGHTED AVERAGE
    NUMBER OF SHARES
    OUTSTANDING USED IN
    COMPUTATION OF NET
    INCOME PER SHARE (1)



              Basic                                                                                                                                            35,943                                                         35,943  26,963                               26,963

                                                                                                                                                                                                                                                                            ---


              Diluted                                                                                                                                          41,733                                                         42,009  35,344                               35,429

                                                                                                                                                                                                                                                                            ---




              (1) The number of shares have been adjusted retroactively for a 1-for-1.789 stock split of InMode shares by way of
    an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated July 24, 2019


                                                                                                                
              
                INMODE LTD.


                                                                                              
              RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF


                                                                                             
              INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                                                                                 
              (U.S. dollars in thousands, except for per share data)


                                                                                                                      
              (Unaudited)




                                                                                            Six months ended June 30, 2020                            Six months ended June 30, 2019

                                                                                                                                                                                 ---

                                            GAAP                                                      Share Based                                                Non-GAAP                          GAAP   Share Based
                                                                                              
                    Compensation                                                                             
        Compensation     Non-GAAP

                                 ---


              
                REVENUES                                                                                 71,206                                                           71,206  69,349                               69,349



              
                COST OF REVENUES                                                                         10,879                                                     (225) 10,654   9,146                    (41)        9,105

                                                                                                                                                                                                                                   ---


              
                GROSS PROFIT                                                                             60,327                                                       225  60,552  60,203                      41        60,244



              
                OPERATING EXPENSES:



              Research and development                                                                               5,248                                                   (2,008)  3,240   2,783                   (108)        2,675



              Sales and marketing                                                                                   37,535                                                   (4,595) 32,940  29,995                   (617)       29,378



              General and administrative                                                                             3,436                                                     (382)  3,054   1,766                    (48)        1,718


                            TOTAL OPERATING EXPENSES                                                                 46,219                                                   (6,985) 39,234  34,544                   (773)       33,771

                                                                                                                                                                                                                                   ---


              
                INCOME FROM                                                                              14,108                                                     7,210  21,318  25,659                     814        26,473
    OPERATIONS



              Finance income, net                                                                                    1,265                                                            1,265     785                                  785

                                                                                                                                                                                                                                   ---


              
                INCOME BEFORE TAXES                                                                      15,373                                                     7,210  22,583  26,444                     814        27,258

                                                                                                                                                                                                                                   ---


              
                INCOME TAXES (TAX                                                                           302                                                     (424)  (122)    451                     168           619
    BENEFIT)

                                                                                                                                                                                                                                   ---


              
                NET INCOME                                                                               15,071                                                     7,634  22,705  25,993                     646        26,639



              Add: Loss (net income)                                                                                  (50)                                                            (50)   (72)                                (72)
    attributable to non-controlling
    interests

                                                                                                                                                                                                                                   ---


              
                NET INCOME                                                                               15,021                                                     7,634  22,655  25,921                     646        26,567
    ATTRIBUTABLE TO
    INMODE LTD.

                                                                                                                                                                                                                                   ---




              NET INCOME PER SHARE (1):



              Basic                                                                                                   0.43                                                             0.65    0.96                                 0.98

                                                                                                                                                                                                                                   ---


              Diluted                                                                                                 0.36                                                             0.54    0.73                                 0.75

                                                                                                                                                                                                                                   ---


              
                WEIGHTED AVERAGE
    NUMBER OF SHARES
    OUTSTANDING USED IN
    COMPUTATION OF NET
    INCOME PER SHARE (1)



              Basic                                                                                                 34,956                                                           34,956  26,891                               26,891

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              Diluted                                                                                               41,709                                                           41,922  35,334                               35,423

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              (1) The number of shares have been adjusted retroactively for a 1-for-1.789 stock split of InMode shares by way of


              an issuance of bonus shares, that occurred pursuant to a resolution of our board of directors dated July 24, 2019

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SOURCE InMode Ltd.