Inspire(US:INSP)2022-05-04 02:26Financial Data and Key Metrics Changes - Inspire Medical Systems reported a strong first quarter with total revenue of $69.4 million, representing a 72% increase compared to $40.4 million in Q1 2021 [45] - U.S. revenue was $66.4 million, a 76% increase from $37.8 million in the prior year period, while international revenue increased 14% to $3 million [46] - Gross margin improved to 85.6% from 85.2% in the prior year due to manufacturing efficiencies and higher sales volume [48] - The net loss for Q1 was $16.7 million, slightly higher than the $16.2 million loss in the prior year, with a net loss per share of $0.61 [50] Business Line Data and Key Metrics Changes - The company added 74 new U.S. implanting centers, bringing the total to 733 centers, with ambulatory surgical centers (ASCs) making up 22% of all U.S. centers [14][15] - The average selling price (ASP) in the U.S. was $23,800, consistent with the prior year, while the ASP outside the U.S. was $22,200, down from $24,400 due to exchange rates [47] Market Data and Key Metrics Changes - The number of visitors to the company's website increased by 170% year-over-year to approximately 4.7 million, leading to about 24,000 physician contacts [22] - The company is expanding its direct-to-consumer advertising campaign, which has significantly increased web activity and patient engagement [24] Company Strategy and Development Direction - Inspire Medical Systems is focused on increasing utilization at existing centers and expanding capacity by opening and training new centers [42] - The company plans to implement a 5% price increase for all U.S. centers starting in May, which is expected to have a minimal impact on 2022 revenue [20] - The company is optimistic about its international business, particularly in Germany, and has received countrywide reimbursement approval in France [31][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business outlook for the remainder of 2022, citing positive trends in implant activity and planned expansions [12] - The company has increased its full-year 2022 revenue guidance to a range of $336 million to $344 million, reflecting a 44% to 47% growth over 2021 [53] - Management acknowledged the challenges posed by COVID-19 but noted a strong rebound in procedure volumes as the quarter progressed [9][52] Other Important Information - The company has partnered with digital health companies to improve patient access to sleep studies, which is crucial for Inspire therapy eligibility [27][29] - Inspire Medical Systems is working on developing a fifth-generation neurostimulator, targeting FDA approval in late 2023 [41] Q&A Session Summary Question: Insights on March and April performance and COVID impact - Management noted a strong rebound in March and April after a slow start in January due to COVID, which allowed for an increase in guidance [57][58] Question: Details on the price increase and cost pressures - The price increase is phased in over several quarters, and while there are some increased costs, gross margins are expected to remain stable [59][60] Question: Feedback on CPAP supply shortages and patient inquiries - There has been an increase in patients seeking Inspire therapy due to CPAP shortages, and sleep physicians are more frequently discussing alternative therapies [66][68] Question: Pipeline for new centers and growth in ASCs - The company is seeing enthusiasm for new centers, with a focus on both ASCs and hospitals, and expects continued growth in both areas [71][72] Question: International growth prospects and contributions - Management is optimistic about international growth, particularly in Germany and France, and anticipates significant contributions from these markets in the future [108][110] Question: Operational expenses and future guidance - Operating expenses are expected to remain comparable to previous quarters, with a focus on growth rather than immediate profitability [112]