Will InMode be able to realize its competitive advantages?
The developer of equipment for aesthetic procedures InMode Ltd. (INMD) has many key advantages that would help to gain a substantial market share. But, will the company be able to take full advantage of its strengths?
The main advantage of InMode equipment is performing non-invasive aesthetic procedures. As a rule, cosmetic plastic surgery requires anesthesia and involves some recovery time. InMode allows you to do without the discomfort associated with traditional skin and figure correction methods.
On the contrary, the company produces devices that do not require surgical intervention. The basis of all InMode devices is radiofrequency technology, which uses electromagnetic energy to simulate body parts and reduce body fat.
It is important to note that RF devices can perform the same functions as other cosmetic medical procedures, such as laser treatment. Unfortunately, no detailed studies would compare the quality of procedures performed using InMode equipment and traditional methods.
However, if a company can achieve comparable or even better results than traditional procedures, it will win market share. Another advantage of InMode equipment is the potential reduction in the cost of operations. But here, too, there is no definite answer yet. For example, some clinics using InMode offer a skin lift for more than $2,200, which is slightly lower than the cost of a traditional procedure.
But it should note that InMode strives to produce equipment with improved capabilities every year, including to reduce the cost of procedures. As a result, sales of InMode equipment are growing. For example, revenue increased by 58% year-on-year to $94 million in the third quarter. In addition, EBITDA profit has grown by more than 382% over the past three years.
