CLAIM #32950 · Intuitive Surgical Inc (ISRG) · 2021Q4 earnings call · Jan 20, 2022 · due Dec 31, 2026
“we look at those architectures. And we think based on our experiences, understanding our supply chains, understanding what iterations and engineering and manufacturing look like that both of those platforms should be able to hit historical norms in the future years, and not forever in future years.”
Gary Guthart · CEO
How to check this claim
Look at: Gross margin for Ion and da Vinci SP product lines relative to company's historical norm gross margin
It came true if: Ion and da Vinci SP gross margins reach within the range of Intuitive Surgical's historical norm gross margin (as characterized by management, roughly mid-60s% or company's stated historical average) by year-end 2026
Where: Company management commentary on gross margin by product line (earnings calls, 10-K disclosures)
In context
“ned to that, that, that makes sense from their finances point of view, then that's what we'll pursue. And to the extent that they're interested in other models, then we are open-minded. Operator: Our next question now comes from the line of Rick Wise from Stifel. Rick Wise: Gary, I thought I'd follow up on a couple of things. You highlighted very specifically for both Ion and da Vinci SP this concept of margins aren't where they will be. And over time, you're going to bring the business to scale. I was wondering if you could expand on that, maybe give us a flavor for where margins are now? And how do we think about is this 2 years away? Is it 5 years away? How do we think about the trajectory going forward there? Gary Guthart: Thanks for the question. On the -- kind of where we're headed, we look at those architectures. And we think based on our experiences, understanding our supply chains, understanding what iterations and engineering and manufacturing look like that both of those platforms should be able to hit historical norms in the future years, and not forever in future years. That said, in the early innings here, you're at lower volumes relative to where you're going to be. You're also working through some manufacturing process improvements and doing some of the capital investments that you need to do in order to get unit cost down. I'll look to Jamie in terms of characterizing kind of roughly where they are. SP is a little more mature product line in our hands in terms of manufacturing and our GM and her team over there doing a really nice job identifying those opportunities and sequentially knocking them down over time, feels really good. It's a little earlier, and it's going through a little bit different growth ramp and so it's going to have to work its way down that process. Although we also feel good about kind of the core architectures that would give u”
Verify independently
SEC filings for ISRG ↗ · Claim quote is verbatim from the 2021Q4 earnings call.