CLAIM #32951 · Intuitive Surgical Inc (ISRG) · 2021Q4 earnings call · Jan 20, 2022 · due Dec 31, 2022
“for '22, given that SP and Ion are newer products, the gross margins there are dilutive as you'd expect.”
Jamie Samath · CFO
In context
“'s call it, the equivalent of operating margin. On a gross margin basis, kind of the actions that we have to take to get both Ion and SP to kind of, let's call it, target gross margins are well understood and it's really about execution over a period of time, a component of that will obviously be building scale. But I think those actions are well defined. They're a multiple-year effort. On the operating margin side, it's really, what's revenue in relation to the amounts that we're investing. And that's obviously going to be a function of, in the case of Ion, how we adopt in lung cancer biopsy over time. And with SP, it's the additional indications and new geographies in terms of clearances. I don't have a scale for when we might reach those corporate average margins. I would say, though, for '22, given that SP and Ion are newer products, the gross margins there are dilutive as you'd expect. Rick Wise : Yes. And just a follow-up for me. I mean it's clear you highlighted multi -- multiple ways that Asia from well this quarter, if I understood you correctly, procedures, I think you said were robust. And I'm just thinking about that thought in conjunction with your comments about where you're investing. And it sounds like a lot of the investments were in Asia. And I was just wondering if we should just -- how do I ask this? Does this suggest that you're thinking as we look over the next 3 to 5 years that there's more growth or more growth opportunity for Intuitive in the Asia Pacific region? Or how do we -- how do I think about those 2 facts and those initiatives, if that makes any sense? Gary Guthart: I'd characterize it a little bit differently, Rick. The starting point on As”
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SEC filings for ISRG ↗ · Claim quote is verbatim from the 2021Q4 earnings call.