InMode Ltd shares sank 21% to $22.22 in late-morning trading on Thursday after the medical technologies provider announced that it now expects full year 2023 revenue to be in the range of $500 million to $510 million, down from previous estimates of between $530 million and $540 million.
InMode cited factors including the current economic slowdown, slower purchase decisions due to lower aesthetic activity during the summer, and constraints in financing of medical equipment as a result of higher interest rates, tighter leasing approval standards, and bottlenecks in loan processing, all of which have impacted InMode platform sales activity globally.
The company also noted it anticipates its 3Q revenue to be in the range of $122.8 million to $123.0 million with non-GAAP gross margins for the period of between 83% to 85%.
InMode, which develops, manufactures and markets devices harnessing novel radio frequency (RF) technology, saw its 2Q 2023 revenue reach a record $136.1 million, representing a 20% year-over-year increase.
Shares of InMode have fallen 37% year to date.
Contact Sean at sean@proactiveinvestors.com