Intuitive Surgical Inc at JPMorgan Healthcare Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Robert Marcus - JPMorgan - Analyst : Thank you. Well, great. Maybe we could start with the congratulations on a fantastic fourth quarter here. Maybe a couple of questions on the quarter, then we could talk some more strategy. Maybe we could spend a minute on just some of the metrics. We saw 18% procedure growth, really big beat on sales, both on instruments and placements versus the Street. We saw da Vinci 5, I think it was 174 in the quarter. Trade-ins started, we saw four in South Korea, I imagine is the outside the US So, maybe just speak to some of the trends you saw on placements as it relates to the health of the capital equipment markets in the US and around the world and some of the trends in procedures you saw?

Question: Robert Marcus - JPMorgan - Analyst : I'm sorry, Jamie.

Question: Robert Marcus - JPMorgan - Analyst : Maybe along that, Phase 1 is what you called it, limited launch. I know you have a software update coming, I believe, first half, middle of next year. You had a lot of capacity added with some of these new facilities. Is that midyear next year when we should expect to move into Phase 2 with the full launch? And when you say full launch, how should we really think about the cadence of that? Is that trade-ins? Is that US full launch? Is that capacity for outside the US? Maybe just help us understand the magnitude.

Question: Robert Marcus - JPMorgan - Analyst : Gary, maybe I could touch on the computing power. 10,000 times is such a significant increase, and da Vinci Xi was a fantastic robot. If we look at three to five years from now, what are some of the ways that Intuitive can surprise investors by capturing and harnessing that 10,000 increase?

Question: Robert Marcus - JPMorgan - Analyst : Can we envision a world in the next, I don't know, three to five years or some middle-term where the robot is doing part of the procedure more accurately than a human could do?

Question: Robert Marcus - JPMorgan - Analyst : Along those lines with the extra processing power, are there any indications that that can help open up? Or maybe another way, are there any new indications that you're seeing physicians interested in and testing out on da Vinci 5 that wasn't on Xi?

Question: Robert Marcus - JPMorgan - Analyst : There's still a large gap between the number of procedures you're doing today and the top of the circle.

Question: Robert Marcus - JPMorgan - Analyst : The addressable market. When we talk to surgeons, one of the things they say and you touched on this with democratizing surgery is that not only is it better and easier for physicians that are experienced, but it makes it potentially a lot easier for new physicians REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JANUARY 15, 2025 / 5:00PM, ISRG.OQ - Intuitive Surgical Inc at JPMorgan Healthcare Conference who aren't experienced with robotics to start and engage with da Vinci 5. So, maybe speak to what you're seeing and how you anticipate that helping accelerate the conversion from open to robotic surgery?

Question: Robert Marcus - JPMorgan - Analyst : You're in most major med-tech markets around the world. Yet when I look at a multinational fully-sized med-tech company, it's in over 100 plus countries around the world. You're about to engage in a large trade-in cycle that will have a lot of functional excise taken into the company. I imagine they're not going to sit in a warehouse gathering dust.

Question: Robert Marcus - JPMorgan - Analyst : So, how should we think about your strategy with these trade-ins, what you're going to do with it and then maybe that ties in or not your plans to expand globally?

Question: Robert Marcus - JPMorgan - Analyst : Jamie, you guided plus 13% to 16% procedure volume growth in 2025. That's the same range you started this time last year in 2024.

Question: Robert Marcus - JPMorgan - Analyst : Intuitive Surgical had a heavy R&D and SG&A investment period leading up to the da Vinci 5 launch. You've invested substantially in CapEx to expand manufacturing around the world. Maybe speak to where we are in your investment cycle and how to think about, I'll tie in also uses of cash now that you're generating substantial free cash flow as well?

Question: Robert Marcus - JPMorgan - Analyst : Well, we're just out of time. I want to thank you for a great discussion and thank you everybody for attending.