Intuitive Surgical Inc Q2 2024 Earnings Call Transcript

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

Question: Robert Justin Marcus - JPMorgan Chase & Co - Research Division - Analyst : oh, great. Thanks. And I'll add my congratulations on a very solid quarter here, and I wanted to ask about the feedback in the field you talked about in the script. I bet we all talk to doctors and have heard from them. I'd love to hear from, you know, both with the physicians are saying, but also what the institutions that are saying you're clearly demand. Is there 70 units this fast is really strong, but what's the pushback, if any, for centers, how do they feel about the the ability to drive better economics and faster procedures and better outcomes with da Vinci five and the feedback so far from the physicians?

Question: Robert Justin Marcus - JPMorgan Chase & Co - Research Division - Analyst : Gary, you anticipated my follow-up question. So let me ask another one here. And what are they the items that the feedback I've heard from physicians is that case and sites in the $0.04 saying can help existing physicians be better, but more importantly, could help physicians that do a lot of lab procedures are open procedures, make it easier for them to adjust to robotics. Is that something you're hearing? I know it's early in the launch here, but how do you think about those features and the ability to get more conversion from lab to our product?

Question: Robert Justin Marcus - JPMorgan Chase & Co - Research Division - Analyst : Thank you very much.

Question: David Roman - Goldman Sachs - Analyst : . So those together high end is is proving to be a really effective tool at doing that well while maintaining an improved safety profile over CT. guided needle biopsy. And so when somebody is diagnosed with iron on hand is deemed to be cancer than oftentimes they may move to a da Vinci procedure. It's really up to the tumor board in that position about the best way to treat that patient and maybe with da Vinci, maybe with radiation or some other alternative. So oftentimes are coupled, but not all the times as. That is very helpful contact. Thank you. And maybe I could ask the financial question on the follow-up. You're right. I think I'd look at the operating expense targets for the year. Most of the reduction actually looked like it. Then back to what might have been a slower start in the I think you grow OpEx at about 7% in Q. one and saw an acceleration here a year in Q2. But maybe you could just help us unpack a little bit about a little bit of the dynamic underpinning the operating expense growth for the balance of the year and how we should think about sort of normalized OpEx growth is at 37 number or you started the year it kind of low double digit number where you're trending now. And then I don't know if you're willing to offer for any perspective on the incremental depreciation, but you were kind of in like a 90 million range in Q. one and $100 million range EPS in Q1 of this year. Like are we talking about a 10 to 10 million per quarter, increased $20 million? And any framing you give might be helpful on that side as well.

Question: David Roman - Goldman Sachs - Analyst : Great. Thank you very much.

Question: Drew Ranieri - Morgan Stanley - Analyst : Hi, thanks for taking the questions. Maybe just something that we also heard from us or us was that DD. on I know that the da Vinci X guy is still very well considered in the field and there certainly was still want to get their hands on it. So just can you talk a little bit more about some of the underlying demand for side in the US? And Jamie, I think you pointed out to note that you kind of expect to be flat to sequentially improve throughout the year without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. PRELIMINARY JULY 18, 2024 / 8:30PM, ISRG.OQ - Q2 2024 Intuitive Surgical Inc Earnings Call . So maybe just talk to us about what that means for ForEx side, given that you're adding broader conversations with hospital administrators and surgeons as I'm thinking about building capacity for robotic surgery.

Question: Drew Ranieri - Morgan Stanley - Analyst : And has there been any change in thinking about bringing essentially five to the broader global markets? And at that, you're working on a couple of regulatory filings right now, but any update on timing or further market expansion? And thanks for taking the questions.

Question: Richard Newitter - Truist Securities - Analyst : Thanks for taking the question. And maybe for JV, just Jamie, in the past, you've talked about ITO a long term for an intermediate to long term, three, four year time frame to get back above sustainably 70% gross margin. A Correct me if that's not true, but I am pretty sure that that's what you said in the past. I'm just curious just with some of the some of the initiatives maybe paying dividends earlier than expected and faster, and you have some manufacturing transition going on for ion disposable, that's a big initiative. Is it possible where we're moving towards that goal little faster sooner? I I'd love to hear any thoughts there.

Question: Richard Newitter - Truist Securities - Analyst : Thanks, Dave. And I guess just maybe you --