Summary of Inspire Medical Systems (INSP) Conference Call Company Overview - **Company**: Inspire Medical Systems (INSP) - **Event**: 2025 Conference on May 13, 2025 - **Key Speakers**: Tim Herbert (Chairman and CEO), Rick Buchholz (CFO), Ez Giajia (VP, Investor Relations) Key Points Industry and Product Launch - Inspire Medical has launched **Inspire five**, a new platform aimed at improving patient outcomes and surgeon efficiency [1][3][12] - The launch is significant as it marks a transition from the previous model, Inspire four, and is expected to enhance the company's growth trajectory [5][30] Financial Performance - In Q1 2025, Inspire reported a **23% growth** and achieved positive earnings for the first time in Q1, indicating strong operational leverage [7][8] - The company anticipates **mid to high single-digit sequential growth** for Q2, with a focus on transitioning to Inspire five [20][21] Market Dynamics - There was a noted **patient warehousing** effect, where patients opted to wait for Inspire five rather than proceed with Inspire four, impacting Q1 performance [10][24] - The company is optimistic about a strong second half of 2025 as the transition to Inspire five is completed [11][19] Marketing and Patient Engagement - Inspire plans to increase **direct-to-patient marketing** efforts to raise awareness and drive patient engagement [6][60] - The company is also focusing on educating healthcare providers, including family practice and sleep physicians, about the benefits of Inspire therapy [60] Surgical Efficiency and Training - The new Inspire five system simplifies the surgical procedure by eliminating the need for a pressure sensing lead, which is expected to reduce surgical time from **60-90 minutes to 45-60 minutes** [46] - Inspire has trained approximately **400 advanced practice providers (APPs)** to assist in patient management and post-operative care, enhancing surgical capacity [47] Future Developments - Inspire is looking ahead to **Inspire six**, which will include features like sleep detection and auto-activation, aimed at improving patient adherence to therapy [63][64] - The company is also exploring a subscription model for patient management through its upcoming **SleepSync** program, which will help sleep physicians manage patients more effectively [66] Financial Outlook - Inspire is committed to balancing growth with profitability, expecting improved margins as utilization increases and customer acquisition costs decrease [58][59] - The company is confident that the transition to Inspire five will lead to higher utilization rates and revenue per sales representative [68] Conclusion - Inspire Medical Systems is positioned for growth with the launch of Inspire five, a focus on patient engagement, and a commitment to improving surgical efficiency. The company is optimistic about its future developments and financial performance as it continues to innovate in the sleep apnea treatment market [73][74]

Core Points - The Dr. Jose Jacob Scholarship for Future Doctors is now open for applications, offering a one-time award of $1,000 to undergraduate students in the U.S. pursuing a career in medicine [1][4] - Founded by Dr. Jose Jacob, a board-certified invasive cardiologist, the scholarship aims to support future medical professionals who show vision, resilience, and dedication [2][5] - Applicants must be on a pre-medical track or pursuing a degree with the intention of applying to medical school, and they are required to submit an original essay on a current medical challenge or opportunity [3][4] Eligibility and Application Process - The scholarship is open to undergraduate students regardless of geographic location, background, or socioeconomic status, encouraging applications from all eligible individuals [6] - The essay must be a maximum of 500 words, showcasing the applicant's insight into medical issues and their commitment to advancing healthcare [3][4] - Applications must be submitted by February 15, 2026, with the winner announced on March 15, 2026 [4] Purpose and Impact - Dr. Jose Jacob aims to encourage engagement with the evolving healthcare landscape and support aspiring medical professionals financially and academically [5] - The scholarship reflects a commitment to shaping the next generation of physicians prepared to tackle modern medical challenges [5][6] - Interested candidates can find more information on eligibility and application guidelines on the official scholarship website [7]

Investors might want to bet on Inspire Medical Systems (INSP) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Indiv ...

Group 1 - Inspire Medical Systems (INSP) has shown a significant price increase of 14.5% over the past four weeks, with a mean price target of $225.07 indicating a potential upside of 39% from the current price of $161.88 [1] - The average of 15 short-term price targets ranges from a low of $175 to a high of $270, with a standard deviation of $26.91, suggesting a variability in analysts' estimates [2] - Analysts have revised earnings estimates higher, with seven estimates moving up in the last 30 days and no negative revisions, leading to a 3.7% increase in the Zacks Consensus Estimate [12] Group 2 - INSP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating strong potential for upside [13] - There is a strong correlation between trends in earnings estimate revisions and near-term stock price movements, supporting the expectation of an upside in INSP [11] - Analysts' price targets, while often overly optimistic, can provide a starting point for further research into the stock's potential [9][10]

Inspire Medical Systems, Inc. (INSP) delivered an earnings per share (EPS) of 10 cents in first-quarter 2025 against the year-ago period’s loss of 34 cents per share and the Zacks Consensus Estimate of a loss of 23 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)INSP’s Revenues in DetailInspire Medical registered revenues of $201.3 million in the first quarter, up 22.7% year over year. The figure beat the Zacks Consensus Estimate by 3.2%.Per management, the overall revenue gr ...

Company Performance - Inspire Medical Systems reported quarterly earnings of $0.10 per share, exceeding the Zacks Consensus Estimate of a loss of $0.23 per share, and improved from a loss of $0.34 per share a year ago [1][2] - The earnings surprise for this quarter was 143.48%, following a previous quarter where the company reported earnings of $1.15 per share against an expectation of $0.74, resulting in a surprise of 55.41% [2] - The company achieved revenues of $201.32 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.20% and increasing from $164.01 million year-over-year [3] Market Outlook - Despite the positive earnings report, Inspire shares have declined approximately 13.8% since the beginning of the year, compared to a 3.3% decline in the S&P 500 [4] - The future performance of Inspire's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][5] - Current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $228.98 million, and for the current fiscal year, it is $2.16 on revenues of $949.61 million [8] Industry Context - Inspire operates within the Zacks Medical Info Systems industry, which is currently ranked in the top 28% of over 250 Zacks industries, indicating a favorable industry outlook [9] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [6][7]

Financial Data and Key Metrics Changes - The company reported revenue of $201.3 million for Q1 2025, a 23% increase compared to $164 million in Q1 2024 [20][12] - Net income for the quarter was $3 million, translating to diluted net income of $0.10 per share, compared to a net loss of $10 million or $0.34 per share in the same quarter last year [22][12] - The company reiterated its full-year 2025 revenue guidance of $940 million to $955 million, representing a growth of 17% to 19% year-over-year [12][23] Business Line Data and Key Metrics Changes - U.S. revenue for the quarter was $193.6 million, a 24% increase from $155.8 million in the prior year [20] - Revenue outside the U.S. was $7.7 million, reflecting a 6% decrease year-over-year [20] - Gross margin remained stable at 84.7% compared to the prior year [21] Market Data and Key Metrics Changes - The company has incorporated the new CPT code 64568 into policies covering approximately 80% of over 300 million covered lives, including commercial payers, Medicare, and the VA system [15] - The company plans to submit for regulatory approval of the Inspire V system in Europe and Asia within the year [15] Company Strategy and Development Direction - The company is focused on expanding the limited market release of the Inspire V system and is preparing for a full launch [11][12] - The strategy includes increasing patient marketing and education programs to raise awareness of the Inspire V system [15][16] - The company aims to drive high-quality patient flow and increase the capacity of provider partners to treat more patients [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Inspire therapy and the ability to meet patient needs despite a transition period for the Inspire V launch [29][30] - The second quarter is expected to be a transition quarter, with revenue growth anticipated in the mid to high single digits sequentially [14][24] - Management remains optimistic about the second half of 2025, expecting strong performance as the full launch of Inspire V progresses [14][19] Other Important Information - The company hosted over 300 physicians in Inspire programs during the first quarter, including training for new ENT residents and advanced practice providers [18] - The company ended the quarter with $414 million in cash and investment balances, despite a reduction due to share repurchases and operating activities [22][23] Q&A Session Summary Question: What happened with the Q2 revenue guidance and the destock? - Management noted that increased awareness of the Inspire V technology led to patient warehousing, affecting Q2 revenue guidance [29] Question: How confident is the company about Inspire IV inventories in the marketplace? - Management indicated they have close knowledge of existing inventories and expect high-volume centers to work through their Inspire IV inventory quickly [35] Question: What is the expected impact of the new CPT code on procedures? - Management is confident that the new code will not hinder adoption, as the procedure has become simpler and more efficient [74] Question: How is the company addressing the transition to Inspire V? - Management is focused on ensuring a smooth transition and expects to complete the transition by the end of the year [96] Question: What is the company's strategy for marketing Inspire V? - The marketing strategy will include outreach programs to increase patient awareness and direct communication with previous website visitors [119]

Financial Data and Key Metrics Changes - The company reported revenue of $201.3 million for Q1 2025, a 23% increase compared to $164 million in Q1 2024 [19] - Net income for the quarter was $3 million, translating to diluted net income of $0.10 per share, compared to a net loss of $10 million or $0.34 per share in the prior year [12][21] - Adjusted EBITDA totaled $33.2 million, representing a 16% adjusted EBITDA margin, compared to $11.9 million and 7% in Q1 2024 [21] - The company reiterated its full-year 2025 revenue guidance of $940 million to $955 million, indicating a growth of 17% to 19% year-over-year [12][22] Business Line Data and Key Metrics Changes - The U.S. revenue for the quarter was $193.6 million, a 24% increase from $155.8 million in the prior year [19] - Revenue outside the U.S. was $7.7 million, reflecting a 6% decrease year-over-year [19] Market Data and Key Metrics Changes - The company noted that European revenue in Q1 2024 benefited from pent-up demand due to supply shortages, which impacted year-over-year comparisons [19] Company Strategy and Development Direction - The company is focused on expanding the limited market release of the Inspire V system and is preparing for a full launch in the U.S. [10][11] - The Inspire V system incorporates advanced sensing capabilities, which are expected to enhance therapy and patient outcomes [11][90] - The company plans to increase investments in medical education and marketing to drive awareness and adoption of Inspire therapy [17][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for Inspire therapy, noting that patient flow remains strong despite a transition period for the new system [42][41] - The second quarter is expected to be a transition quarter, with revenue growth anticipated in the mid to high single digits sequentially [14][22] - Management is optimistic about a strong second half of 2025 as the full launch of Inspire V progresses [14][22] Other Important Information - The company has appointed two new Vice Presidents and Senior Medical Directors to enhance its medical education and training efforts [8] - The transition to CPT code 64568 has been incorporated into policies covering approximately 80% of the covered lives, which is expected to facilitate reimbursement [15] Q&A Session Summary Question: What happened with the Q2 revenue guidance and the destock? - Management indicated that increased patient awareness and the transition to Inspire V led to some patient warehousing, affecting Q2 revenue guidance [28] Question: How confident is the company about Inspire IV inventories in the marketplace? - Management stated they have close knowledge of existing inventories and expect high-volume centers to work through their Inspire IV inventory quickly [36] Question: How should investors think about the balance of restocking and pent-up demand? - Management emphasized strong patient outcomes and continued growth in the number of implants, which supports confidence in the second half of the year [41] Question: What is the company's confidence in the manufacturing and reimbursement for Inspire V? - Management expressed confidence in the device's performance and the manufacturing processes, noting that the transition to the new system is well-prepared [50] Question: What is the expected timeline for the transition to Inspire V? - Management reiterated that they expect to complete the transition by the end of the year, with a focus on high-volume centers first [115] Question: How is the marketing strategy for Inspire V evolving? - The company plans to step up direct-to-consumer marketing efforts to increase awareness and educate potential patients about Inspire V [121]

Financial Data and Key Metrics Changes - The company reported revenue of $201.3 million for Q1 2025, a 23% increase compared to $164 million in Q1 2024 [10][17] - Net income for the quarter was $3 million, translating to diluted net income of $0.10 per share, compared to a net loss of $10 million or a loss of $0.34 per share in the same period last year [10][19] - Adjusted EBITDA was $33.2 million, representing a 16% margin, up from $11.9 million and a 7% margin in Q1 2024 [19] - The company ended the quarter with $414 million in cash and investments, despite a reduction due to $75 million in share repurchases [20] Business Line Data and Key Metrics Changes - The U.S. revenue for the quarter was $193.6 million, a 24% increase from $155.8 million in the prior year [17] - Revenue outside the U.S. was $7.7 million, reflecting a 6% decrease year-over-year, attributed to prior pent-up demand from supply shortages [17] Market Data and Key Metrics Changes - The company is expanding the limited market release of the Inspire V system in the U.S. and is preparing for a full launch [9][10] - The transition to CPT code 64568 has been incorporated into policies covering approximately 80% of the 300 million covered lives, including commercial payers and Medicare [13] Company Strategy and Development Direction - The company aims to drive high-quality patient flow and increase provider capacity through the addition of advanced practice providers and certified surgeons [16] - A focused patient marketing and education program will be initiated to promote the Inspire V system, with an emphasis on digital scheduling tools [14][15] - The company plans to submit for regulatory approval of the Inspire V system in Europe and Asia this year while continuing to provide the Inspire IV system during the review process [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year revenue guidance of $940 million to $955 million, representing a 17% to 19% growth year-over-year [10][20] - The second quarter is expected to be a transition quarter with mid to high single-digit sequential revenue growth, followed by a strong second half of 2025 [12][20] - Management noted that the demand for Inspire therapy remains strong, with many patients waiting for the new device [12][39] Other Important Information - The company hosted over 300 physicians in Inspire programs during Q1, including training for new ENT residents and sleep fellows [15] - The Inspire V system incorporates new technical capabilities that will allow for future therapy enhancements, including sleep detection [9] Q&A Session Summary Question: What happened with the Q2 revenue guidance and the destock? - Management indicated that increased awareness of the Inspire V technology led to patient warehousing, affecting Q2 revenue expectations, but they expect to make up for this in Q3 and Q4 [26][27] Question: How confident is the company about Inspire IV inventories in the marketplace? - Management stated they have close knowledge of existing inventories and expect high-volume centers to work through their Inspire IV inventory quickly [32][33] Question: What is the company's confidence in the Inspire V launch regarding manufacturing and reimbursement? - Management expressed confidence in the device's performance and the manufacturing processes, noting that the transition to the new CPT code has been well received [45][48] Question: How does the company plan to onboard generalist ENTs during the full market launch? - The company plans to involve both academic and general practice ENTs in the training programs to ensure a smooth transition to Inspire V [60][61] Question: What is the expected impact of operating expenses on profitability? - Management indicated that they will continue to invest in operating expenses to drive revenue growth, with expectations for revenue to outpace operating expense growth [68] Question: How is the company addressing the lower professional fee associated with the new CPT code? - Management believes that the simplicity of the new procedure will outweigh the lower fee, and they are monitoring physician acceptance closely [72][74]

Company Overview & Financial Performance - Inspire Medical Systems highlights a significant underpenetrated U S market valued at over $10 billion[7] - The company reported revenue of over $800 million in 2024, marking a 28% year-over-year growth[7, 10] - The company has surpassed 100,000 patients receiving Inspire therapy[7, 75] - The company's gross margin for the first quarter was 84.7%[75] - FY2025 revenue is projected to be in the range of $940 million to $955 million, representing a 17%-19% growth over FY2024[70] Inspire Therapy & Market Dynamics - The company has reimbursement coverage in all 50 states, covering over 300 million U S lives[7, 9] - The domestic OSA market presents a substantial opportunity, with approximately 500,000 Inspire-eligible individuals[25] - Inspire patients experience a median AHI reduction from 33 events/hr at baseline to 10.2 events/hr at 12 months[44] - 91% of patients say Inspire is better compared against their previous experience with CPAP[47] GLP-1s and OSA - Claims data identified over 1,500 patients who were on a GLP-1 at the time of Inspire implant[122] - The BMI of Inspire patients was roughly 20% lower at the time of implant than all other OSA patients at the time of their OSA Dx[123]