Inspire(US:INSP)2025-05-05 22:02Financial 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]