Inspire(INSP) - 2024 Q1 - Quarterly Results

Company Overview & Q1 2024 Highlights Inspire Medical Systems reported strong Q1 2024 results, driven by market expansion and increased awareness, leading to raised full-year guidance and anticipated profitability Introduction and Recent Business Highlights Inspire Medical Systems announced strong first quarter 2024 results with 28% year-over-year revenue growth, driven by increased market penetration, expansion into new territories, and enhanced physician and patient awareness - Inspire Medical Systems reported 28% year-over-year revenue growth in Q1 2024[1][2] - The company expects to be profitable for the full year 2024[1][2] - Revenue growth was driven by increased market penetration in existing centers, expansion into new territories, and increased physician and patient awareness of Inspire therapy[2] About Inspire Medical Systems Inspire Medical Systems is a medical technology company focused on developing and commercializing innovative, minimally invasive solutions for patients suffering from obstructive sleep apnea, featuring its proprietary FDA-approved neurostimulation therapy - Inspire is a medical technology company focused on developing and commercializing minimally invasive solutions for obstructive sleep apnea[12] - Its proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology for moderate to severe obstructive sleep apnea[12] First Quarter 2024 Financial Results Inspire reported strong Q1 2024 financial performance with significant revenue growth, improved gross margin, and reduced net loss, alongside operational expansion Summary of Q1 Financial Performance Inspire reported robust financial performance in Q1 2024, marked by significant revenue growth across both U.S. and international markets, an improved gross margin, and a reduced net loss Q1 2024 Financial Summary | Metric | Q1 2024 | Q1 2023 | YoY Change | | :---------------------- | :------ | :------ | :--------- | | Revenue | $164.0M | $127.9M | +28% | | U.S. Revenue | $155.8M | N/A | +25% | | International Revenue | $8.2M | N/A | +141% | | Gross Margin | 84.9% | 84.4% | +0.5 pp | | Operating Expenses | $154.5M | $127.5M | +21% | | Net Loss | $(10.0)M | $(15.4)M | -35.06% | | Net Loss Per Share | $(0.34) | $(0.53) | -35.85% | - Operating expenses increased primarily due to ongoing investments in the expansion of the U.S. sales organization, direct-to-patient marketing programs, continued product development efforts, and increased general corporate costs[5] - Activated 66 new U.S. centers in Q1 2024, bringing the total to 1,246 U.S. medical centers providing Inspire therapy[7] - Created 11 new U.S. sales territories in Q1 2024, bringing the total to 298 U.S. sales territories[7] - Cash, cash equivalents, and investments decreased slightly to $469.2 million as of March 31, 2024, from $469.5 million on December 31, 2023[6] Consolidated Statements of Operations The detailed income statement for Q1 2024 reflects a substantial increase in revenue and gross profit, alongside a rise in operating expenses, ultimately resulting in a reduced net loss compared to the prior year's corresponding period Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :-------------------------------- | :-------------------------------- | :-------------------------------- | | Revenue | $164,010 | $127,897 | | Cost of goods sold | $24,757 | $19,888 | | Gross profit | $139,253 | $108,009 | | Research and development | $28,850 | $25,519 | | Selling, general and administrative | $125,621 | $101,988 | | Total operating expenses | $154,471 | $127,507 | | Operating loss | $(15,218) | $(19,498) | | Net loss | $(10,005) | $(15,424) | | Net loss per share, basic and diluted | $(0.34) | $(0.53) | Consolidated Balance Sheets As of March 31, 2024, Inspire's total assets experienced a slight increase from December 31, 2023, primarily driven by growth in inventories and long-term investments, while total current liabilities saw a decrease Consolidated Balance Sheets (in thousands) | Metric (in thousands) | March 31, 2024 | December 31, 2023 | | :-------------------- | :------------- | :---------------- | | Total current assets | $572,214 | $593,739 | | Total assets | $685,842 | $676,811 | | Total current liabilities | $72,172 | $78,105 | | Total liabilities | $96,818 | $104,297 | | Total stockholders' equity | $589,024 | $572,514 | Full Year 2024 Guidance Inspire updated its full-year 2024 guidance, raising revenue projections and initiating net income per share guidance, while maintaining operational expansion targets Full Year 2024 Guidance Update Inspire has updated its full-year 2024 guidance, increasing revenue projections and initiating diluted net income per share guidance, while maintaining its gross margin and operational expansion targets for new U.S. medical centers and territories Full Year 2024 Guidance | Metric | Previous Guidance | Updated Guidance | Growth over FY2023 | | :--------------------------- | :---------------- | :--------------- | :----------------- | | Revenue | $775M - $785M | $783M - $793M | 25% - 27% | | Gross Margin | 83% - 85% | 83% - 85% | Maintained | | Diluted Net Income Per Share | N/A | $0.10 - $0.20 | Initiated | - Maintained guidance for opening 52 to 56 new U.S. medical centers per quarter for the remainder of 2024[9] - Maintained guidance for adding 12 to 14 new U.S. territories per quarter for the remainder of 2024[9] Corporate Information This section provides details on the Q1 2024 webcast, forward-looking statements, and investor contact information Webcast and Conference Call Details Inspire Medical Systems hosted a conference call and live webcast on May 7, 2024, to discuss its first quarter results, with a replay available on the investor relations website - A conference call was hosted on Tuesday, May 7, 2024, at 5:00 p.m. Eastern Time[10] - A replay of the webcast is available on https://investors.inspiresleep.com[11](index=11&type=chunk) Forward-Looking Statements This section provides a standard disclaimer regarding forward-looking statements, highlighting various known and unknown risks and uncertainties that could cause actual results to differ materially from the company's projections and expectations - Statements regarding full year 2024 financial outlook, expectations for new U.S. medical centers and territories, operating leverage, profitability, and business growth strategy are considered forward-looking[14] - Risks and uncertainties include estimates of market opportunity, future financial results, commercial success, macroeconomic trends, challenges in obtaining prior authorization and reimbursement, competition, product development, supply chain dependence, regulatory actions, and cybersecurity[15][16] Investor & Media Contact Contact information for investor and media inquiries is provided for direct communication - Investor & Media Contact: Ezgi Yagci, Vice President, Investor Relations[17]