Insulet Reports First Quarter 2024 Revenue Increase of 23% Year-Over-Year
Raising Full Year Revenue and Operating Margin Guidance
First Quarter Financial Highlights:
-
First quarter 2024 revenue of
$441.7 million , up 23.3%, or 22.8% in constant currency1, compared to$358.1 million in the prior year, exceeds the guidance range of 17% to 20% in constant currency due to revenue outperformance for all product lines-
Total Omnipod revenue of
$433.0 million , an increase of 21.1%, or 20.5% in constant currencyU.S. Omnipod revenue of$317.7 million , an increase of 22.7%-
International Omnipod revenue of
$115.3 million , an increase of 16.9%, or 14.8% in constant currency
-
Drug Delivery revenue of
$8.7 million
-
Total Omnipod revenue of
-
Gross margin of 69.5%, up 230 basis points, compared to gross margin of 67.2% in the prior year and up 460 basis points compared to adjusted gross margin1 of 64.9% in the prior year, which excludes income of
$8.0 million associated with the voluntary medical device correction (MDC) notices issued in 2022 -
Operating income of
$56.9 million , or 12.9% of revenue, up 520 basis points, compared to operating income of$27.7 million , or 7.7% of revenue, in the prior year and up 740 basis points compared to adjusted operating margin in the prior year. Adjusted operating income of$19.7 million , or 5.5% of revenue, in the prior year excludes income of$8.0 million noted above -
Net income of
$51.5 million , or$0.73 per diluted share, compared to net income of$23.8 million , or$0.34 per diluted share, in the prior year. Adjusted net income1 of$15.8 million , or$0.23 per diluted share, in the prior year excludes income of$8.0 million noted above -
Adjusted EBITDA1 of
$89.2 million , or 20.2% of revenue, up 660 basis points, compared to$48.8 million , or 13.6% of revenue, in the prior year
Recent Strategic Highlights:
-
Launched
U.S. limited market release of Omnipod 5 integrated with Dexcom's G7 sensor -
Launched European limited market releases of Omnipod 5 with "sensor of choice"
-
Omnipod 5 integrated with Abbott’s Freestyle Libre 2 Plus sensor in the
U.K. andNetherlands -
Omnipod 5 integrated with Dexcom's G6 sensor in
the Netherlands (also available in theU.K. andGermany )
-
Omnipod 5 integrated with Abbott’s Freestyle Libre 2 Plus sensor in the
- Last participant completed the Company’s Omnipod 5 type 2 pivotal trial
- Completed participant enrollment in the Company’s RADIANT Study (Omnipod 5 with Libre 2 randomized controlled trial)
-
Presented data at the
ATTD International Conference from the Company’s first randomized controlled trial showing improved glycemic and patient-reported outcomes in type 1 diabetes with Omnipod 52. Also presented real-world evidence demonstrating Omnipod 5’s effectiveness based on use in a large, diverse real-world population of more than 100,000 people with type 1 diabetes -
Advanced sustainability across the Company, as detailed in
Insulet's 2023 Sustainability Report3
“We are pleased with our strong first quarter results, which underscore the strength of our advanced technology platform and deep competitive advantages,” said
1 See description of non-GAAP financial measures contained in this release.
2https://investors.insulet.com/news/news-details/2024/Insulets-Randomized-Controlled-Trial-OP5-003-Demonstrates- Omnipod-5-Automated-Insulin-Delivery-System-is-Superior-to-Pump-Therapy/default.aspx.
3 Insulet’s 2023 Sustainability Report can be found at: 2023 Sustainability Report.
2024 Outlook:
Revenue Guidance (in constant currency):
-
For the year ending
December 31, 2024 , the Company is raising its expected revenue growth to a range of 14% to 18% (previously 12% to 17%). Revenue growth ranges by product line are:-
Total Omnipod of 15% to 19% (previously 13% to 18%)
U.S. Omnipod of 17% to 21% (previously 16% to 21%)- International Omnipod of 12% to 15% (previously 7% to 10%)
- Drug Delivery of (60)% to (50)% (unchanged)
-
Total Omnipod of 15% to 19% (previously 13% to 18%)
-
For the quarter ending
June 30, 2024 , the Company expects revenue growth of 15% to 18%. Revenue growth ranges by product line are:-
Total Omnipod of 18% to 21%
U.S. Omnipod of 21% to 24%- International Omnipod of 12% to 15%
-
Drug Delivery of (75)% to (70)% (approximately
$4 million to$5 million )
-
Total Omnipod of 18% to 21%
Gross Margin and Operating Margin Guidance:
For the year ending
For the year ending
Conference Call:
About
Non-GAAP Measures:
The Company uses the following non-GAAP financial measures:
-
Constant currency revenue growth, which represents the change in revenue between current and prior year periods using the exchange rate in effect during the applicable prior year period.
Insulet presents constant currency revenue growth because management believes it provides meaningful information regarding the Company’s results on a consistent and comparable basis. Management uses this non-GAAP financial measure, in addition to financial measures in accordance with generally accepted accounting principles inthe United States (GAAP), to evaluate the Company’s operating results. It is also one of the performance metrics that determines management incentive compensation. - Adjusted gross margin, adjusted gross margin as a percentage of revenue, adjusted operating income, adjusted operating income as a percentage of revenue, adjusted net income, and adjusted diluted earnings per share exclude the impact of certain significant transactions or events, such as legal settlements, medical device corrections, gains (losses) on investments and loss on extinguishment of debt, that affect the period-to-period comparability of the Company’s performance, as applicable.
- Adjusted EBITDA, which represents net income plus net interest expense, income tax expense, depreciation and amortization, stock-based compensation expense and other significant transactions or events, such as legal settlements, medical device corrections, gains (losses) on investments and loss on extinguishment of debt, that affect the period-to-period comparability of the Company’s performance, as applicable, and adjusted EBITDA as a percentage of revenue.
These non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company’s reported financial results prepared in accordance with GAAP. Furthermore, the Company’s definition of these non-GAAP measures may differ from similarly titled measures used by others. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations,
Forward-Looking Statement:
This press release contains forward-looking statements regarding, among other things, future operating and financial performance, product success and efficacy, the outcome of studies and trials and the approval of products by regulatory bodies. These forward-looking statements are based on management’s current beliefs, assumptions and estimates and are not intended to be a guarantee of future events or performance. If management’s underlying assumptions turn out to be incorrect, or if certain risks or uncertainties materialize, actual results could vary materially from the expectations and projections expressed or implied by the forward-looking statements.
Risks and uncertainties include, but are not limited to our dependence on a principal product platform; the impact of competitive products, technological change and product innovation; our ability to maintain an effective sales force and expand our distribution network; our ability to maintain and grow our customer base; our ability to scale the business to support revenue growth; our ability to secure and retain adequate coverage or reimbursement from third-party payors; the impact of healthcare reform laws; our ability to design, develop, manufacture and commercialize future products; unfavorable results of clinical studies, including issues with third parties conducting any studies, or future publication of articles or announcement of positions by diabetes associations or other organizations that are unfavorable; our ability to protect intellectual property and other proprietary rights; potential conflicts with the intellectual property of third parties; our inability to maintain or enter into new license or other agreements with respect to continuous glucose monitors, data management systems or other rights necessary to sell our current product and/or commercialize future products; worldwide macroeconomic and geopolitical uncertainty as well as risks associated with public health crises and pandemics, including government actions and restrictive measures implemented in response, supply chain disruptions, delays in clinical trials, and other impacts to the business, our customers, suppliers, and employees; international business risks, including regulatory, commercial and logistics risks; the potential violation of anti-bribery/anti-corruption laws; the concentration of manufacturing operations and storage of inventory in a limited number of locations; supply problems or price fluctuations with sole source or third-party suppliers on which we are dependent; failure to retain key suppliers or other manufacturing issues; challenges to the future development of our non-insulin drug delivery product line; failure of our contract manufacturer or component suppliers to comply with the
For a further list and description of these and other important risks and uncertainties that may affect our future operations, see Part I, Item 1A - Risk Factors in our most recent Annual Report on Form 10-K filed with the
©2024
|
|||||||
|
Three Months Ended |
||||||
(dollars in millions, except per share data) |
|
2024 |
|
|
|
2023 |
|
Revenue |
$ |
441.7 |
|
|
$ |
358.1 |
|
Cost of revenue |
|
134.9 |
|
|
|
117.6 |
|
Gross profit |
|
306.8 |
|
|
|
240.5 |
|
Research and development expenses |
|
50.2 |
|
|
|
50.1 |
|
Selling, general and administrative expenses |
|
199.7 |
|
|
|
162.7 |
|
Operating income |
|
56.9 |
|
|
|
27.7 |
|
Interest expense, net |
|
(1.3 |
) |
|
|
(2.9 |
) |
Other expense, net |
|
(0.7 |
) |
|
|
(0.2 |
) |
Income before income taxes |
|
54.9 |
|
|
|
24.6 |
|
Income tax expense |
|
(3.4 |
) |
|
|
(0.8 |
) |
Net income |
$ |
51.5 |
|
|
$ |
23.8 |
|
|
|
|
|
||||
Earnings per share: |
|
|
|
||||
Basic |
$ |
0.74 |
|
|
$ |
0.34 |
|
Diluted |
$ |
0.73 |
|
|
$ |
0.34 |
|
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
||||
Basic |
|
69,957 |
|
|
|
69,583 |
|
Diluted |
|
73,741 |
|
|
|
70,096 |
|
RECONCILIATION OF DILUTED NET INCOME (UNAUDITED) |
|||||
|
Three Months Ended |
||||
(in millions, except share and per share data) |
2024 |
|
2023 |
||
Net income |
$ |
51.5 |
|
$ |
23.8 |
Add back interest expense, net of tax attributable to assumed conversion of convertible senior notes |
|
2.6 |
|
|
— |
Net income, diluted |
$ |
54.1 |
|
$ |
23.8 |
|
|||||
(dollars in millions) |
|
|
|
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
751.2 |
|
$ |
704.2 |
Accounts receivable, net |
|
320.5 |
|
|
359.7 |
Inventories |
|
430.6 |
|
|
402.6 |
Prepaid expenses and other current assets |
|
116.1 |
|
|
116.4 |
Total current assets |
|
1,618.4 |
|
|
1,582.9 |
Property, plant and equipment, net |
|
667.7 |
|
|
664.9 |
|
|
150.2 |
|
|
150.4 |
Other assets |
|
187.7 |
|
|
190.0 |
Total assets |
$ |
2,624.0 |
|
$ |
2,588.2 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Accounts payable |
$ |
75.9 |
|
$ |
19.2 |
Accrued expenses and other current liabilities |
|
317.6 |
|
|
382.6 |
Current portion of long-term debt |
|
38.9 |
|
|
49.4 |
Total current liabilities |
|
432.4 |
|
|
451.2 |
Long-term debt, net |
|
1,362.6 |
|
|
1,366.4 |
Other liabilities |
|
38.3 |
|
|
37.9 |
Total liabilities |
|
1,833.3 |
|
|
1,855.5 |
Stockholders’ equity |
|
790.7 |
|
|
732.7 |
Total liabilities and stockholders’ equity |
$ |
2,624.0 |
|
$ |
2,588.2 |
|
|||||||||||
|
Three Months Ended |
|
|
|
|
|
|
||||
(dollars in millions) |
2024 |
|
2023 |
|
Percent Change |
|
Currency
|
|
Constant
|
||
Revenue: |
|
|
|
|
|
|
|
|
|
||
|
$ |
317.7 |
|
$ |
259.0 |
|
22.7% |
|
—% |
|
22.7% |
International Omnipod |
|
115.3 |
|
|
98.6 |
|
16.9% |
|
2.1% |
|
14.8% |
Total Omnipod |
|
433.0 |
|
|
357.6 |
|
21.1% |
|
0.6% |
|
20.5% |
Drug Delivery |
|
8.7 |
|
|
0.5 |
|
1,640.0% |
|
—% |
|
1,640.0% |
Total |
$ |
441.7 |
|
$ |
358.1 |
|
23.3% |
|
0.5% |
|
22.8% |
ADJUSTED GROSS MARGIN, OPERATING MARGIN, NET INCOME, DILUTED EPS |
|||||||||||||||||||
|
Three Months Ended |
||||||||||||||||||
(dollars in millions) |
Gross Profit |
|
Percent of
|
|
Operating
|
|
Percent of
|
|
Net Income(2) |
|
Diluted
|
||||||||
GAAP |
$ |
240.5 |
|
|
67.2% |
|
$ |
27.7 |
|
|
7.7% |
|
$ |
23.8 |
|
|
$ |
0.34 |
|
Voluntary medical device correction(1) |
|
(8.0 |
) |
|
|
|
|
(8.0 |
) |
|
|
|
|
(8.0 |
) |
|
|
(0.11 |
) |
Non-GAAP |
$ |
232.5 |
|
|
64.9% |
|
$ |
19.7 |
|
|
5.5% |
|
$ |
15.8 |
|
|
$ |
0.23 |
|
ADJUSTED EBITDA |
||||||||||
|
Three Months Ended |
|||||||||
(dollars in millions) |
2024 |
|
Percent of
|
|
2023 |
|
Percent of
|
|||
Net income |
$ |
51.5 |
|
11.7% |
|
$ |
23.8 |
|
|
6.6% |
Interest expense, net |
|
1.3 |
|
|
|
|
2.9 |
|
|
|
Income tax expense |
|
3.4 |
|
|
|
|
0.8 |
|
|
|
Depreciation and amortization |
|
18.8 |
|
|
|
|
17.2 |
|
|
|
Stock-based compensation expense |
|
14.2 |
|
|
|
|
12.1 |
|
|
|
Voluntary medical device corrections(1) |
|
— |
|
|
|
|
(8.0 |
) |
|
|
Adjusted EBITDA |
$ |
89.2 |
|
20.2% |
|
$ |
48.8 |
|
|
13.6% |
(1) |
Represents income resulting from an adjustment to estimated costs associated with the voluntary MDC notices issued in the fourth quarter of 2022, which is included in cost of revenue. |
|
(2) |
The tax effect on non-GAAP adjustments is calculated based on the applicable local statutory tax rates, including any valuation allowance. |
|
|
|||||
|
Year Ending |
||||
|
Revenue Growth
|
|
Currency Impact |
|
Constant Currency |
|
17% - 21% |
|
—% |
|
17% - 21% |
International Omnipod |
11% - 14% |
|
(1)% |
|
12% - 15% |
Total Omnipod |
15% - 19% |
|
—% |
|
15% - 19% |
Drug Delivery |
(60)% - (50)% |
|
—% |
|
(60)% - (50)% |
Total |
14% - 18% |
|
—% |
|
14% - 18% |
|
Three Months Ended |
||||
|
Revenue Growth
|
|
Currency Impact |
|
Constant Currency |
|
21% - 24% |
|
—% |
|
21% - 24% |
International Omnipod |
10% - 13% |
|
(2)% |
|
12% - 15% |
Total Omnipod |
17% - 20% |
|
(1)% |
|
18% - 21% |
Drug Delivery |
(75)% - (70)% |
|
—% |
|
(75)% - (70)% |
Total |
14% - 17% |
|
(1)% |
|
15% - 18% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508533135/en/
Investor Relations:
Vice President, Investor Relations
(978) 600-7717
dgordon@insulet.com
Media:
Senior Director, Corporate Communications
(978) 932-0611
awiczek@insulet.com
Source: