What happened

Shares of InMode (INMD 4.23%) soared on Thursday after the medical device company released preliminary financial results for the third quarter of 2022. The numbers were better than Wall Street anticipated. As a result, InMode stock was up 13% as of 11:45 a.m. ET.

So what

InMode habitually releases preliminary numbers weeks before announcing official results. Today, the company released preliminary numbers for Q3, saying it expects to report revenue of $120.5 million to $120.9 million. This would represent about 28% year-over-year growth -- more than analysts projected.

Moreover, InMode's profitability looks strong as well. The company didn't give numbers according to generally accepted accounting principles (GAAP). However, non-GAAP (adjusted) gross margin for Q3 is expected to come in between 84% and 85%, which is up from its non-GAAP gross margin of 83% in the second quarter.

Finally, InMode expects to report non-GAAP earnings per share of $0.64 to $0.65, which would be a quarterly record. In short, it's easy to understand the market's enthusiasm today.

Now what

With its upbeat preliminary Q3 report, InMode's management is officially raising full-year revenue guidance today. For 2022, it expects to generate revenue of $445 million to $450 million, up from previous full-year guidance of $425 million to $430 million. For perspective, it raised full-year guidance last quarter, too.

Finally, the positive surprises may not be over for InMode shareholders. Management preannounced financial results for the first quarter and the second quarter earlier this year as well. But official results surpassed preliminary numbers both times. Therefore, there could be at least one surprise left when InMode reports official Q3 results on Oct. 27.