Da Vinci-inspired system builds new markets for growth while creating strong moats

Another stock we are keeping this year from last year is Nasdaq-listed Intuitive Surgical (ISRG), a global healthcare company that develops, manufactures, and offers robot-assisted surgical technology systems and solutions. ISRG’s two flagship products are the da Vinci surgical system, which was first launched more than 20 years ago and consists of a robotic console to be used for surgeries; and the Ion endoluminal system, which was launched last year and consists of a robotic-assisted platform primarily used for long biopsies.

ISRG generates revenue from both its flagship products through the sales and sales-type lease arrangements. For the former, revenue is recognised upfront while for the latter, particularly in operating lease transactions or usage-based arrangements, revenue is recognised over time. The company also earns recurring revenue from the sale of instruments, accessories and services along with the operating leases through its da Vinci and Ion endoluminal systems. The company derives almost 70% of its revenue from the US and the rest of its turnover comes from overseas, mainly Europe and Asia.

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