Inspire(INSP) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a guidance reduction of approximately 4.5% for the second half of the year, primarily driven by the transition to Inspire five, with a more significant impact of about 9% for the second half [13][14] - The management noted an increase in patient warehousing dynamics, indicating patients are waiting for Inspire five despite the availability of Inspire four, affecting the patient funnel [14][15] Business Line Data and Key Metrics Changes - The transition to Inspire five is progressing well, with surgeon training and certification reaching approximately 99%, up from 90% [4][5] - Contracting with implanting accounts has improved to over 80% from 70% [5] - The implementation of the Sleep Sync programmer has increased to about 65% from 50% [6][7] Market Data and Key Metrics Changes - The company expects to complete the transition from Inspire four to Inspire five by the end of the year, with full adoption anticipated across all implanting accounts [9] - The management highlighted that the coding issue related to Medicare has been resolved, removing a previous headwind [10][11] Company Strategy and Development Direction - Inspire five is seen as a catalyst for growth, with expectations of increased productivity and efficiency in procedures, allowing for more cases to be handled [29][30] - The company is focusing on expanding its footprint by adding more territory managers and field clinical representatives to support the growth of Inspire five [30][31] - Medical education is emphasized as a key growth vector, targeting both early career professionals and experienced surgeons [30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that the market opportunity is massive and underpenetrated, with a commitment to innovation and improved patient outcomes [80] - The impact of GLP-1 medications on patient dynamics is still being assessed, with both positive and negative effects observed [19][20] Other Important Information - The company is preparing to present data at upcoming conferences, showcasing the efficacy and operational efficiency of Inspire five [34][35] - Management acknowledged the competitive landscape, particularly with the introduction of new hypoglossal nerve stimulation devices, but remains confident in their product's advantages [45][46] Q&A Session Summary Question: What is the reason for the guidance reduction? - The guidance reduction is primarily due to the slower transition to Inspire five, which has led to patient warehousing dynamics and inventory destocking of Inspire four [14][15] Question: How is the company addressing competition from GLP-1 medications? - The management noted that while GLP-1s may delay some patients, they also create opportunities for new patients to enter the treatment funnel as they lose weight [19][20] Question: What are the expectations for Inspire five adoption? - Full adoption of Inspire five is expected by the end of the year, with significant progress already made in surgeon training and account readiness [9][32] Question: How does the company view the total addressable market (TAM)? - The management believes the TAM is growing, driven by increased awareness and diagnosis rates for obstructive sleep apnea [43] Question: What is the company's strategy regarding international markets? - While the focus remains on the U.S. market, the company is also exploring opportunities in international markets, particularly in Europe and Asia [74][75]