Core Viewpoint - Inspire Medical Systems has shown a mixed performance in its recent earnings report, with a narrower loss per share and significant revenue growth, but the stock has underperformed compared to the S&P 500 over the past month [1][2]. Financial Performance - The company reported a loss per share of 34 cents for Q1 2024, an improvement from a loss of 53 cents per share in the same period last year and better than the Zacks Consensus Estimate of a loss of 63 cents [2]. - Revenues reached $164 million in Q1 2024, marking a 28.2% increase year over year and surpassing the Zacks Consensus Estimate by 1.5% [3]. - Gross profit increased by 28.9% to $139.3 million, with a gross margin expansion of 46 basis points to 84.9% [7]. Revenue Breakdown - U.S. revenues totaled $155.8 million, reflecting a 25% increase from the previous year, driven by enhanced patient awareness and market penetration [4]. - International revenues amounted to $8.2 million, up 141% year over year, primarily due to a rebound in Europe, especially in Germany [6]. Operational Highlights - The company activated 66 new U.S. centers, bringing the total to 1,246 centers providing Inspire therapy, and created 11 new U.S. sales territories, totaling 298 [5]. - Operating loss for the quarter was $15.2 million, an improvement from the prior year's loss of $19.5 million [7]. Financial Position - At the end of Q1 2024, cash and cash equivalents and short-term investments stood at $441.4 million, down from $460.4 million at the end of 2023 [8]. - Net cash provided by operating activities was $8.9 million, compared to a net cash used of $1.3 million in the same quarter last year [8]. Outlook - Inspire Medical revised its 2024 revenue guidance to a range of $783 million to $793 million, indicating a growth of 25-27% from 2023 levels, up from the previous estimate of $775 million to $785 million [9]. - The company expects to open 52-56 new U.S. medical centers and add 12-14 new U.S. sales territories each quarter in 2024 [10]. Market Position - Inspire Medical has a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating a favorable growth outlook but a lower score on the value side [11][12].
Why Is Inspire (INSP) Down 7.3% Since Last Earnings Report?