Inspire(US:INSP)2025-02-10 23:02Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $239.7 million, a 25% increase from $192.5 million in Q4 2023 [21] - U.S. revenue for the quarter was $231.6 million, up 22% from $189.4 million in the prior year [21] - Net income for Q4 2024 was $35.2 million, compared to $14.8 million in the prior year, representing diluted net income of $1.15 per share versus $0.49 per share [9][24] - Full year 2024 revenue totaled $802.8 million, a 28% increase over $624.8 million in 2023 [27] - Full year diluted net income per share was $1.75 compared to a net loss of $0.72 per share in 2023 [28] Business Line Data and Key Metrics Changes - The company treated over 90,000 patients with INSPIRE therapy and exceeded 350 peer-reviewed publications [6] - Gross margin for Q4 2024 was 85% [21] - Operating income for Q4 2024 was $31.9 million compared to $9.3 million in the prior year [24] Market Data and Key Metrics Changes - Revenue outside the U.S. was $8.1 million, a 63% increase year over year [21] - The company added 72 new U.S. centers, bringing the total to 1,435 active U.S. centers [21] Company Strategy and Development Direction - The company aims to enhance therapy outcomes and patient access through a new team focused on research and clinical evidence development [8] - The launch of the Inspire five neurostimulator is expected to reduce surgical time and complexity, enhancing patient and surgeon experience [10][11] - The company plans to increase investments in medical education programs and digital marketing strategies to improve patient awareness and access [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth strategy and the ability to drive long-term stakeholder value [20] - The company anticipates continued revenue growth in 2025, with guidance of $940 million to $955 million, representing a 17% to 19% increase year over year [28] - Management is committed to ethical business practices amid an ongoing investigation by the Department of Justice [19][112] Other Important Information - The company received FDA approval for the Inspire five neurostimulator, which includes features aimed at improving patient outcomes [10] - The company is actively working to update payer policies to align with expanded FDA labeling [18] Q&A Session Summary Question: EPS guidance and DOJ CID - Management indicated that they expect sequential improvement in profitability throughout 2025, with Q1 not expected to be profitable due to seasonality [33] - The company is cooperating with the DOJ investigation and does not anticipate it will interfere with operations [34][35] Question: Impact of automated scheduling on patient volume - Management reported significant advantages in patient appointment success using digital scheduling, leading to increased participation in the program [41] Question: Inspire five reimbursement and physician feedback - Management believes the Inspire five will not be a barrier for physicians and will actually encourage more cases due to reduced surgical complexity [44][45] Question: Revenue phasing and Inspire five launch - Management expects sequential revenue growth throughout 2025, with the Inspire five launch contributing positively to margins [52][54] Question: International revenue growth - Management expects international revenue to remain around 34% of total revenue, with no significant changes anticipated for 2025 [85]