Ladies and gentlemen, thank you for standing by and welcome to the Intuitive Q4 2021 Earnings Release Call. Our technologies include the da Vinci surgical system and the Ion endoluminal system. Keep up-to-date with changes . Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In Europe, the impact of COVID in the second quarter of 2021 varied regionally with slower recovery in Italy and France, while we saw early stages of a recovery in the U.K. Turning to our single-port system. In the past 60 days, the Zacks Consensus Estimate for its earnings has moved north by 8.4% to $14.72. 3 min read. And I know case rises have been largely decoupled from hospitalizations. That means that utilization will go up kind of naturally, that that mix moves toward a higher utilization mix. Add to that, the uncertainty of wave 4, possibility of wave 4 makes it tough to put a number on, Larry. [Operator instructions] And for our first question, we will go to Tycho Peterson. Ladies and gentlemen, thank you for standing by, and welcome to the Intuitive Q2 2021 earnings conference call. Non-GAAP income from operations. SUNNYVALE, Calif., Jan. 24, 2023 (GLOBE NEWSWIRE) -- Intuitive (the Company) (Nasdaq: ISRG), a global technology leader in minimally invasive care and the pioneer of robotic-assisted surgery, today announced financial results for the quarter ended December31, 2022. COVID had a significant impact on da Vinci procedure volumes in the second quarter of 2020. The number we're watching closely is hospitalization. Colorectal growth was strong, with solid growth in malignant hysterectomy, thoracic, and prostatectomy procedures. You may automatically receive Intuitive Surgical financial information by e-mail. 2 Reasons to Avoid a Roth 401(k) for Your Retirement Savings, Warren Buffett's Latest $2.9 Billion Buy Brings His Total Investment in This Stock to $66 Billion in 4 Years, Want $1 Million in Retirement? Fourth quarter 2022 GAAP net income attributable to Intuitive Surgical, Inc. included excess tax benefits of $18 million, or $0.05 per diluted share, compared with $27 million, or $0.07 per diluted share, in the fourth quarter of 2021. These forward-looking statements are necessarily estimates reflecting the judgment of the Companys management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Just a couple of comments. The Company grew its da Vinci Surgical System installed base to 7,544 systems as of, Fourth quarter 2022 GAAP net income attributable to Intuitive was, Fourth quarter 2022 non-GAAP* net income attributable to Intuitive was. There was the usual impact of seasonality from vacations like Easter, but nothing notable within the quarter. Growth in Japan was solid but was impacted by a relatively slow rollout of vaccines and the impact of localized lockdowns as a result of ongoing efforts to prevent resurgences of COVID-19. And so we see that as a benefit also with respect to feedback from surgeons. - building a financial model and investor presentation for fundraising . Investor's Business Daily . While the percentage of systems placed under operating leases fluctuates quarter to quarter, we believe leasing will increase as a percentage of sales over time, which will result in the deferral of otherwise current revenue into future periods. Jamie will take you through procedure dynamics in more detail later in the call. Non-GAAP gross profit. The higherfourth quarter revenue was driven by growth in da Vinci procedure volume, partially offset by a decline in system placements and foreign currency impacts. Presenter SpeechKari Krogstad Okay. INTUITIVE at 43rd Annual Goldman Sachs Global Healthcare Conference. In the quarter, we completed a number of placements with larger IDNs that prefer to purchase rather than lease product. Phone: 408-523-2161 Jamie will provide spend guidance later in this call. Preliminary full year 2021 systems revenue increased by 44% to approximately $1.69 billion, compared with $1.18 billion in 2020. Visit www.intuitive.com/en-us/products-and-services/ion. The compound annual growth rate between the second quarter of 2019 and the second quarter of 2021 was 16.5%. Building a great robot is a hard first step. At Intuitive, we envision a future of care that is less invasive and profoundly better, where diseases are identified early and treated quickly, so patients can get back to what matters most. As a result, we expect lower trade-in transactions over time. Investors are cautioned not to place undue reliance on such forward-looking statements. The Company shipped 385 da Vinci Surgical Systems in the fourth quarter of 2021, compared with 326 systems in the fourth quarter of 2020. Our actual tax rate will fluctuate with changes in the geographic mix of income, changes in taxation made by local authorities, and with the impact of one-time items. Jamie Samath Senior Vice President of Finance Next, we will go to Amit Hazan with Goldman Sachs. Looking at the past eight quarters in context, our compound annual growth rate for procedures for the period Q2 2019 through Q2 2021 of 16.5% is approximately the growth we would have expected absent the pandemic. During 2021, COVID-19 resurgences continued to impact da Vinci procedure volumes. Fourth quarter 2022 non-GAAP* income from operations decreased to $530 million, compared with $583 million in the fourth quarter of 2021. Thank you. Pro forma gross margin for the second quarter of 2021 was 71.7%, compared with 62.4% for the second quarter of 2020 and 71.8% last quarter. Yeah. Examining procedure trends more deeply. These forward-looking statements are necessarily estimates reflecting the best judgment of the our management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Second-quarter spending was below our expectations due to activities restricted by COVID, including clinical development, marketing events, and travel costs. It flows from respect for and understanding of patients and care teams, their needs, and their environment. And I kind of articulated what those were, travel and so forth. The Company believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning, forecasting, and analyzing future periods. Our focus right now is not rapid expansion of the installed base. We launched our Force bipolar energy instrument along with our extended use instruments program in Japan, and we launched our SynchroSeal energy instrument and E-100 energy generator in Korea. Product and brand names/logos are trademarks or registered trademarks of Intuitive Surgical or their respective owner. ET. The next page will display a menu of options. Constant currency revenue growth. On the benign side, often the diagnostic pipelines are shorter. Gary, a separate topic. I will now turn to our financial outlook for 2021. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Gary S. Guthart Chief Executive Officer, Member of the Board of Directors. It's physically demanding. As customers continue to upgrade to fourth-generation capabilities, the population of installed SIs is decreasing, particularly in the U.S. were 110 trade-ins were completed in the second quarter, leaving an installed base of SIs of approximately 500 systems. Yes. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. Intuitive Surgical, and Verb Surgical, among other countless innovations. I think the noise levels will go up. So we're making those investments to move that forward. The constant currency revenue percentage change is calculated by determining the increase in the current period constant currency revenue over the prior period revenue. And we also see, I think, increased patient confidence is a function of the improving vaccination rates. (2) Selling, general and administrative includes the effect of the following items: One-time tax benefit from re-measurement of certain deferred tax assets, Discrete tax expense arising from the conclusion of a tax matter, Gains on strategic investments, net of tax, Accounts payable and other accrued liabilities, Total liabilities and stockholders equity, Adjustments attributable to noncontrolling interest in joint venture. Just so really speaking backward-looking, so far, so good. A couple of things. Rick Wise -- Stifel Financial Corp. -- Analyst. Our second-quarter pro forma net income was $477 million or $3.92 per share, compared with $132 million or $1.11 per share for the second quarter of 2020 and $427 million or $3.52 per share for the last quarter. Second-quarter 2021 procedures increased approximately 68% compared with the second quarter of 2020 and increased approximately 13% compared with last quarter. Gross profit, income from operations, net income attributable to Intuitive Surgical, Inc., and net income per diluted share attributable to Intuitive Surgical, Inc. are reported on a GAAP and non-GAAP* basis. While this did not have a material impact to our operating results in Q2, the outlook we are providing does not reflect any potential significant disruption or additional costs related to supply constraints. Accordingly, they are subject to significant volatility based on the performance of these metrics and are not tied to performance of the Companys business within the period. Fourth quarter 2022 constant currency revenue increased 10% compared to the fourth quarter of 2021. The instrumentation updates, there are other things, imaging updates and software updates that are really all focused around right instruments, right features for the right extension or right expansion. It links into some of the other things you're talking about. You're developing, trying to increase efficiency, decrease costs, that kind of thing. Intuitive Surgical Inc (NASDAQ: ISRG) Q2 2021 earnings call dated Jul. The results of the meta-analysis found that robotic-assisted thoracic surgery compared to VATs was associated with, among others, the following significant findings: 50.4 milliliters lower blood loss, a 50% lower chance of conversion to an open procedure, a 1.1 day shorter stay in the hospital and a 10% less chance of patient experience to postoperative complication. The Motley Fool has a disclosure policy. Fourth quarter 2022 non-GAAP* net income attributable to Intuitive Surgical, Inc. was $439 million, or $1.23 per diluted share, compared with $473 million, or $1.29 per diluted share, in the fourth quarter of 2021. The trade-in cycle has been a tailwind to system placements. That will play out over the next several quarters as we accrue patients. And regarding the backlog, how do you know there was catch-up and why won't that continue for the next few quarters? In there is OUS markets continue to be choppy given that, in many cases, those markets are behind the U.S., for example, in their vaccination rollouts, and that leaves the possibility of continued resurgences and localized lockdowns. Larry Biegelsen -- Wells Fargo Securities -- Analyst. your options for e-mail notification, please enter your e-mail address below and click Second, disciplined execution of our launches, including our advanced instruments, SP, Ion, and digital efforts. Intuitive Announces Fourth Quarter Earnings, Intuitive Announces Preliminary Fourth Quarter and Full Year 2022 Results, Intuitive becomes largest robotic-assisted surgery provider to be accredited by the Royal College of Surgeons of England, Q4 2022 INTUITIVE Earnings Conference Call, INTUITIVE at J.P. Morgan Healthcare Conference, J.P. Morgan Healthcare Conference 2023 Presentation, Q3 2022 INTUITIVE Earnings Conference Call. COVID has delayed some work in R&D and clinical trials, leading to some underspend in programs, prototypes, and some delay in hiring. In Q2, we launched our SureForm stapling line in India. At the "Pitching to Investors Programme" you will have an exclusive 10-minute pitching slot on stage for you to showcase your company to our entire audience and the biggest community of investors. Intuitive Surgical, Inc. engages in the development, manufacture, and marketing of da Vinci Surgical Systems, and related instruments and accessories for . The Company placed 369 da Vinci Surgical Systems, a decrease of 4% compared with 385 in the fourth quarter of 2021. So I think those are the key kind of procedure highlights. Gotcha. In the U.S. and Europe, extended use instruments were nearly fully adopted in the second quarter. May 2021 - Present 1 year 10 months. User Experience for digital health innovations:<br>I work with startups and corporations and design user-centered products, services, and digital business models. These risks and uncertainties are described in detail in our Securities and Exchange Commission filings, including our most recent Form 10-K filed on February 10, 2021; and Form 10-Q filed on April 21, 2021. Next, we're going to the line of Rick Wise with Stifel.