Inspire Medical Systems, Inc. Announces First Quarter 2022 Financial Results and Updates 2022 Outlook
Inspire Medical Systems (NYSE: INSP) reported a remarkable 72% revenue growth in Q1 2022, reaching $69.4 million, compared to $40.4 million in Q1 2021. The U.S. revenue surged by 76% to $66.4 million. The company's gross margin improved to 85.6%, up from 85.2%. Inspire activated 74 new medical centers, totaling 733 centers, and expanded to 17 new sales territories. The company raised its full-year revenue guidance to $336 million to $344 million, from $318 million to $326 million, anticipating continued positive trends.
- Year-over-year revenue growth of 72%, reaching $69.4 million.
- U.S. revenue increased by 76% to $66.4 million.
- Gross margin improved to 85.6%.
- Activated 74 new medical centers, totaling 733 centers.
- Raised full-year 2022 revenue guidance to $336 million to $344 million.
- Operating expenses rose to $75.4 million, a 51% increase year-over-year.
- Net loss of $16.7 million, slightly higher than the prior year's loss of $16.2 million.
Inspire Reports Year-over-Year Revenue Growth of
MINNEAPOLIS, May 03, 2022 (GLOBE NEWSWIRE) -- Inspire Medical Systems, Inc. (NYSE: INSP) (Inspire), a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea, today reported financial results for the quarter ended March 31, 2022.
Recent Business Highlights
- Generated revenue of
$69.4 million in the first quarter of 2022, a72% increase over the same quarter last year - Achieved gross margin of
85.6% in the first quarter of 2022 - Activated 74 new centers in the U.S. in the first quarter of 2022, bringing the net total to 733 U.S. medical centers providing Inspire therapy
- Created 17 new U.S. sales territories in the first quarter of 2022, bringing the total to 174 U.S. sales territories
"The Inspire team’s performance in the first quarter resulted in a very strong beginning to the fiscal year, overcoming a challenging start in January and early February due to typical seasonality and the COVID Omicron surge," said Tim Herbert, President and Chief Executive Officer of Inspire Medical Systems. "The team was able to ramp up procedures and establish momentum in the second half of the quarter, and we are confident that these positive growth trends will continue for the remainder of the year. Therefore, we are raising our full year 2022 revenue guidance to between
"One key factor driving the growth achieved during the quarter was the performance of our Advisor Care Program (ACP), which over
“Our international business also continues to gain momentum. In Europe, despite significant impact from the COVID resurgence in the beginning of the year, we experienced a strong rebound in the second half of the quarter, primarily in Germany. Moreover, we are proud to have recently completed the first Inspire case in the United Kingdom and have been notified that the French authorities have approved Inspire therapy for reimbursement. We will work with the French authorities to establish the reimbursement levels over the next several quarters. In Asia, we continue to train a growing group of surgeons in Japan and are scheduling additional cases, though the COVID resurgence impacted this region, as well. Finally, the first Inspire cases are scheduled to be conducted in Singapore in the current quarter,” concluded Mr. Herbert.
During the quarter, Inspire activated 74 new centers, and deactivated 25 inactive centers, bringing the net total to 733 U.S. medical centers implanting Inspire therapy as of March 31, 2022. Inspire also added 17 new territories, bringing the total to 174 territories in the U.S.
First Quarter 2022 Financial Results
Revenue was
Gross margin increased to
Operating expense increased to
Net loss was
As of March 31, 2022, cash, cash equivalents and investments were
Full Year 2022 Guidance
Given the positive trends during the first quarter, Inspire is increasing its full year 2022 revenue guidance to between
The Company is maintaining its full year 2022 gross margin guidance of
Webcast and Conference Call
Inspire’s management will host a conference call after market close today, Tuesday, May 3, 2022, at 5:00 p.m. Eastern Time to discuss these results and answer questions.
| Tuesday, May 3rd at 5:00 p.m. Eastern Time: | |
| Domestic: | 800-344-0786 |
| International: | 209-905-5969 |
| Conference ID: | 5029338 |
| Webcast: | https://edge.media-server.com/mmc/p/inp4vfpu |
To listen to a live webcast, please visit the Investors section of the Inspire website at www.inspiresleep.com. The webcast replay will be available on the Inspire website for two weeks following the completion of the call.
About Inspire Medical Systems
Inspire is a medical technology company focused on the development and commercialization of innovative, minimally invasive solutions for patients with obstructive sleep apnea. Inspire’s proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea.
For additional information about Inspire, please visit www.inspiresleep.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts are forward-looking statements, including, without limitation, statements regarding full year 2022 financial outlook, our expectations to activate new U.S. medical centers and add new territories per quarter in 2022 and the impact of such additions, and our strategy and investments to grow and scale our business, including those relating to the expected benefits of the strategic investments. In some cases, you can identify forward-looking statements by terms such as ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘expect,’’ ‘‘plan,’’ ‘‘anticipate,’’ ‘‘could,’’ “future,” “outlook,” “guidance,” ‘‘intend,’’ ‘‘target,’’ ‘‘project,’’ ‘‘contemplate,’’ ‘‘believe,’’ ‘‘estimate,’’ ‘‘predict,’’ ‘‘potential,’’ ‘‘continue,’’ or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words.
These forward-looking statements are based on management’s current expectations and involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, estimates regarding the annual total addressable market for our Inspire therapy in the U.S. and our market opportunity outside the U.S.; future results of operations, financial position, research and development costs, capital requirements and our needs for additional financing; commercial success and market acceptance of our Inspire therapy; the impact of the ongoing and global COVID-19 pandemic; general and international economic, political, and other risks, including currency and stock market fluctuations and the uncertain economic environment; our ability to achieve and maintain adequate levels of coverage or reimbursement for our Inspire system or any future products we may seek to commercialize; competitive companies and technologies in our industry; our ability to enhance our Inspire system, expand our indications and develop and commercialize additional products; our business model and strategic plans for our products, technologies and business, including our implementation thereof; our ability to accurately forecast customer demand for our Inspire system and manage our inventory; our dependence on third-party suppliers, contract manufacturers and shipping carriers; consolidation in the healthcare industry; our ability to expand, manage and maintain our direct sales and marketing organization, and to market and sell our Inspire system in markets outside of the U.S.; risks associated with international operations; our ability to manage our growth; our ability to increase the number of active medical centers implanting Inspire therapy; our ability to hire and retain our senior management and other highly qualified personnel; risk of product liability claims; risks related to information technology and cybersecurity; risk of damage to or interruptions at our facilities; our ability to commercialize or obtain regulatory approvals for our Inspire therapy and system, or the effect of delays in commercializing or obtaining regulatory approvals; FDA or other U.S. or foreign regulatory actions affecting us or the healthcare industry generally, including healthcare reform measures in the U.S. and international markets; and the timing or likelihood of regulatory filings and approvals. Other important factors that could cause actual results, performance or achievements to differ materially from those contemplated in this press release can be found under the captions “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations“ in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as updated in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 to be filed with the SEC, and as such factors may be updated from time to time in our other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov and the Investors page of our website at www.inspiresleep.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, unless required by applicable law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Thus, one should not assume that our silence over time means that actual events are bearing out as expressed or implied in such forward-looking statements. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Investor & Media Contact:
Bob Yedid
LifeSci Advisors
646-597-6989
Bob@LifeSciAdvisors.com
INSPIRE MEDICAL SYSTEMS, INC.
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
(in thousands, except share and per share amounts)
| Three Months Ended March 31, | ||||||||
| 2022 | 2021 | |||||||
| Revenue | $ | 69,382 | $ | 40,352 | ||||
| Cost of goods sold | 10,004 | 5,981 | ||||||
| Gross profit | 59,378 | 34,371 | ||||||
| Operating expenses: | ||||||||
| Research and development | 11,870 | 8,154 | ||||||
| Selling, general and administrative | 63,564 | 41,906 | ||||||
| Total operating expenses | 75,434 | 50,060 | ||||||
| Operating loss | (16,056 | ) | (15,689 | ) | ||||
| Other expense (income): | ||||||||
| Interest income | (34 | ) | (57 | ) | ||||
| Interest expense | 527 | 523 | ||||||
| Other expense, net | 45 | 38 | ||||||
| Total other expense | 538 | 504 | ||||||
| Loss before income taxes | (16,594 | ) | (16,193 | ) | ||||
| Income taxes | 100 | 23 | ||||||
| Net loss | (16,694 | ) | (16,216 | ) | ||||
| Other comprehensive loss: | ||||||||
| Unrealized loss on investments | (143 | ) | (20 | ) | ||||
| Total comprehensive loss | $ | (16,837 | ) | $ | (16,236 | ) | ||
| Net loss per share, basic and diluted | $ | (0.61 | ) | $ | (0.60 | ) | ||
| Weighted average common shares used to compute net loss per share, basic and diluted | 27,517,268 | 27,144,361 | ||||||
INSPIRE MEDICAL SYSTEMS, INC.
BALANCE SHEETS (Unaudited)
(in thousands, except share and per share amounts)
| March 31, 2022 | December 31, 2021 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 203,291 | $ | 214,467 | ||||
| Accounts receivable, net of allowance for credit losses of | 34,544 | 34,179 | ||||||
| Inventories | 22,198 | 17,231 | ||||||
| Prepaid expenses and other current assets | 2,444 | 2,660 | ||||||
| Total current assets | 262,477 | 268,537 | ||||||
| Investments, long-term | 9,796 | 9,938 | ||||||
| Property and equipment, net | 9,334 | 8,486 | ||||||
| Operating lease right-of-use asset | 7,659 | 7,919 | ||||||
| Other non-current assets | 454 | 204 | ||||||
| Total assets | $ | 289,720 | $ | 295,084 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 17,022 | $ | 11,665 | ||||
| Accrued expenses | 13,896 | 20,454 | ||||||
| Notes payable, current portion | 12,250 | 9,188 | ||||||
| Total current liabilities | 43,168 | 41,307 | ||||||
| Notes payable, non-current portion | 12,798 | 15,799 | ||||||
| Operating lease liability, non-current portion | 8,553 | 8,796 | ||||||
| Other non-current liabilities | 146 | 134 | ||||||
| Total liabilities | 64,665 | 66,036 | ||||||
| Stockholders' equity: | ||||||||
| Preferred Stock, | — | — | ||||||
| Common Stock, | 28 | 27 | ||||||
| Additional paid-in capital | 521,308 | 508,465 | ||||||
| Accumulated other comprehensive loss | (198 | ) | (55 | ) | ||||
| Accumulated deficit | (296,083 | ) | (279,389 | ) | ||||
| Total stockholders' equity | 225,055 | 229,048 | ||||||
| Total liabilities and stockholders' equity | $ | 289,720 | $ | 295,084 | ||||
FAQ
What was Inspire Medical Systems' revenue for Q1 2022?
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