What happened Shares of medical-device company InMode (NASDAQ: INMD) surged on Thursday after the company reported financial results for the second quarter of 2022. The company keeps beating expectations, and investors are celebrating it today. As of 3 p.m. ET, InMode stock was up 14%. So what In Q2, InMode generated revenue of $113.5 million, a quarterly record and an increase of 30% year over year. It's worth noting that management gave a preliminary revenue range just two weeks ago, and actual results today surpassed the high end by $0.02 million. InMode's profits grew at a slower rate than its revenue. In Q2, the company's gross margin slipped from 85% last year to 83% now. This is partially due to inflation, which is making the company's material costs go up. Furthermore, its net income of $44 million was only up around 8% year over year, with higher stock-based compensation slightly eating into its bottom line. Now what It's hard to fault InMode for any of its Q2 performance because the numbers were quite good. The company's profitability is still elite, considering its gross margin is over 80% and its net margin is well above 30%. Moreover, management is already overcoming some of its operational challenges. First-quarter margins faced some of the same pressures, but InMode's Q2 net margin was up from its Q1 net margin. Another reason for long-term optimism is the growth in InMode's consumables segment -- revenue generated from products that are used up during medical procedures. Getting its minimally invasive medical devices sold and into operation is one thing. But it's another thing for them to actually be used. For that, demand for its cosmetic procedures must increase. In Q2, InMode's consumable revenue hit a record $15 million and was up 59% year over year. This strongly suggests that its medical equipment is gaining traction in real life, which bodes well for the company going forward. 10 stocks we like better than InMode Ltd.When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and InMode Ltd. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of July 27, 2022 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends InMode Ltd. The Motley Fool has a disclosure policy.Source