Inspire(US:INSP)2024-05-08 02:38Financial Data and Key Metrics Changes - The company generated revenue of $164 million in Q1 2024, a 28% increase compared to $127.9 million in Q1 2023 [5][11] - US revenue was $155.8 million, reflecting a 25% increase from $124.5 million in the prior year [11] - Revenue outside the US increased by 141% to $8.2 million, primarily due to a rebound in Europe, especially in Germany [6][11] - The net loss for Q1 2024 was $10 million, an improvement from a net loss of $15.4 million in Q1 2023, resulting in a net loss per share of $0.34 compared to $0.53 [6][11] - The company expects full-year revenue guidance to be between $783 million and $793 million, representing a growth of 25% to 27% over 2023 [12] Business Line Data and Key Metrics Changes - The company expanded its market presence by opening 66 new implanting centers and 11 new sales territories in the US [5] - The gross margin for Q1 2024 was 84.9%, up from 84.4% in the prior year, driven by improved manufacturing efficiencies [11] Market Data and Key Metrics Changes - The company noted a strong rebound in Europe, particularly in Germany, following the derogation received late in Q4 2023 [6] - The SURMOUNT-OSA trial results suggest that GLP-1s may complement the company's market opportunity by enabling more patients to qualify for Inspire therapy [7] Company Strategy and Development Direction - The company remains focused on increasing therapy adoption and expanding its market presence while enhancing its technology [10] - The company plans to continue its growth strategy by increasing utilization at existing centers and opening new centers [10] - The Inspire V submission is under FDA review, with a soft launch expected in 2024 and a full launch in 2025 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's momentum and the ability to increase guidance based on strong demand and utilization trends [12] - The company anticipates being profitable for the full year 2024, with diluted net income per share guidance of $0.10 to $0.20 [12] Other Important Information - The company has invested heavily in research and development, commercial infrastructure, and direct-to-consumer campaigns to drive awareness and adoption of Inspire therapy [10] - The company has built a strong clinical evidence base with nearly 6,000 patients worldwide and over 280 peer-reviewed publications [8] Q&A Session Summary Question: US performance and growth dynamics - Management acknowledged strong Q1 growth but noted it was below expectations, attributing some dynamics to Medicare versus private pay mix and tracking documentation requirements with UnitedHealthcare [14][15] Question: Confidence in raised guidance - Management indicated that the raised guidance is based on strong performance in Europe and confidence in US growth, particularly in the latter half of the year [17][27] Question: Utilization trends and metrics reporting - Management discussed ongoing focus on utilization and indicated a shift towards reporting revenue and profitability metrics rather than center and territory metrics starting in 2025 [18][21] Question: Impact of SURMOUNT-OSA on patient funnel - Management noted that discussions around GLP-1s could lead to more patients qualifying for Inspire therapy, with positive reports from the field [30][31] Question: Updates on pediatric population and high BMI patients - Management reported progress in treating high AHI patients and opening additional children's hospitals to increase awareness and treatment options [34][35] Question: Profitability drivers and DTC strategy - Management highlighted targeted digital advertising as a key component of their DTC strategy, with a focus on improving conversion rates while maintaining flat spending compared to 2023 [38][75] Question: Inspire V launch timing and potential patient delays - Management confirmed that the Inspire V launch timeline remains on track and does not anticipate significant delays in treatment due to awareness of the new product [41][52] Question: Coverage policy updates for higher BMI patients - Management is actively communicating with payers to update policies in line with FDA approvals, expecting most changes to be implemented by the end of the year [62][63]