Insulet Reports First Quarter 2022 Revenue Increase of 17% Year-Over-Year
Insulet Corporation (NASDAQ: PODD) reported a strong financial performance for Q1 2022, with revenue of $295.4 million, a 17.1% increase year-over-year. Total Omnipod revenue rose 15.6% to $269.5 million. Operating income improved to $37.9 million, a significant rise from $16.3 million last year. The company also achieved a gross margin of 71.0%. For 2022, Insulet reaffirms revenue growth guidance of 12% to 16%, while addressing inflationary pressures affecting operating margins.
- Q1 2022 revenue of $295.4 million, up 17.1% YoY.
- Total Omnipod revenue increased by 15.6% to $269.5 million.
- Operating income rose to $37.9 million (12.8% of revenue), compared to $16.3 million (6.5% of revenue) last year.
- Gross margin improved to 71.0%, up 460 basis points.
- Adjusted EBITDA increased to $63.0 million (21.3% of revenue).
- Successful U.S. launch of Omnipod 5 continues with positive customer feedback.
- Operating margin expected to be flat year-over-year due to increased inflationary and supply chain pressures.
- Drug Delivery revenue guidance remains low, with a projected decline of 35% to 30%.
First Quarter Financial Highlights:
-
First quarter 2022 revenue of
, up$295.4 million 17.1% , or19.3% in constant currency, compared to in the prior year, exceeds the guidance range of$252.3 million 13% to16% in constant currency-
Total Omnipod revenue of
, an increase of$269.5 million 15.6% , or18.0% in constant currency-
U.S. Omnipod revenue of , an increase of$174.1 million 21.5% -
International Omnipod revenue of
, an increase of$95.4 million 6.1% , or12.5% in constant currency
-
-
Drug Delivery revenue of
, an increase of$25.9 million 35.6%
-
Total Omnipod revenue of
-
Gross margin of
71.0% , up 460 basis points -
Operating income of
, or$37.9 million 12.8% of revenue, compared to operating income of , or$16.3 million 6.5% of revenue, in the prior year -
Net income of
, or$27.8 million per diluted share, compared to$0.40 , or$0.0 million per diluted share, in the prior year$0.00 -
Adjusted EBITDA1 of
, or$63.0 million 21.3% of revenue, compared to , or$35.1 13.9% of revenue, in the prior year
Recent Strategic Highlights:
-
U.S. limited commercial launch of the Omnipod® 5 Automated Insulin Delivery System (Omnipod 5) continues to ramp; on track for a full market release this year -
Achieved record first quarter
U.S. and Total Omnipod new customer starts - Presented type 2 feasibility study data at the Advanced Technologies & Treatments for Diabetes (ATTD) conference demonstrating Omnipod 5 significantly improved time in range and reduced HbA1c, while also reducing hypoglycemia and total daily dose of insulin for participants previously on multiple daily injections
-
Launched Omnipod DASH® in
Saudi Arabia and expect to launch soon in theUnited Arab Emirates - Advanced sustainability across the Company, as detailed in Insulet’s 2021 Sustainability Report2
_______________________________________________
1 See description of non-GAAP financial measures contained in this release.
2 Insulet’s 2021 Sustainability report can be found at: 2021 Sustainability Report.
“We are off to a great start in 2022 with first quarter financial results that reflect strong global Omnipod adoption, consumer satisfaction and operational excellence, positioning the Company for another successful year,” said
2022 Outlook:
Revenue Guidance (in constant currency):
-
For the year ending
December 31, 2022 , the Company is reaffirming its expected revenue growth of12% to16% . Revenue growth ranges by product line are:-
Total Omnipod of
16% to20% (previously15% to20% )-
U.S. Omnipod of19% to23% (previously18% to23% ) -
International Omnipod of
9% to14% (unchanged)
-
- Drug Delivery of (35)% to (30)% (unchanged)
-
Total Omnipod of
-
For the quarter ending
June 30, 2022 , the Company expects revenue growth of12% to15% . Revenue growth ranges by product line are:-
Total Omnipod of
17% to20% -
U.S. Omnipod of21% to24% -
International Omnipod of
9% to12%
-
- Drug Delivery of (43)% to (37)%
-
Total Omnipod of
Operating Margin Guidance:
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 EBITDA, which represents net income (loss) plus net interest expense, income tax expense (benefit), depreciation and amortization, stock-based compensation and other significant unusual items, as applicable; and Adjusted EBITDA as a percentage of revenue.
Insulet presents these non-GAAP financial measures because management uses them as supplemental measures in assessing the Company’s operating performance, and the Company believes that they are helpful to investors, and other interested parties as measures of comparative operating performance from period to period. They also are commonly used measures in determining business value and the Company uses them internally to report results.
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 adverse changes in general economic conditions as well as risks associated with public health crises and pandemics, such as the COVID-19 global pandemic, government actions and restrictive measures implemented in response, supply chain disruptions, delays in clinical trials, and other impacts to the business; dependence on a principal product platform; ability to maintain and grow our customer base; ability to scale the business to support revenue growth; maintenance of an effective sales force and expansion of distribution network; ability to secure and retain adequate coverage or reimbursement from third-party payors; impact of healthcare reform laws; impact of competitive products, technological change and product innovation; ability to design, develop, manufacture and commercialize future products; changes to or termination of our license to incorporate a blood glucose meter into the Omnipod System or inability to enter into new license or other agreements with respect to the Omnipod System’s current or future features; challenges to the future development of our non-insulin drug delivery product line; international business risks, including regulatory, commercial and logistics risks; supply problems or price fluctuations with sole source or third-party suppliers on which we are dependent; failure to retain key suppliers and/or supplier pricing discounts and achieve satisfactory gross margins; ability to protect our intellectual property and other proprietary rights and potential conflicts with the intellectual property of third parties; adverse regulatory or legal actions relating to the Omnipod System or future products; 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
©2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
|
Three Months Ended |
||||||
(dollars in millions, except per share data) |
|
2022 |
|
|
|
2021 |
|
Revenue |
$ |
295.4 |
|
|
$ |
252.3 |
|
Cost of revenue |
|
85.7 |
|
|
|
84.8 |
|
Gross profit |
|
209.7 |
|
|
|
167.5 |
|
Research and development expenses |
|
43.1 |
|
|
|
40.7 |
|
Selling, general and administrative expenses |
|
128.7 |
|
|
|
110.5 |
|
Operating income |
|
37.9 |
|
|
|
16.3 |
|
Interest expense, net |
|
(8.9 |
) |
|
|
(13.4 |
) |
Other income (expense), net |
|
0.3 |
|
|
|
(2.6 |
) |
Income before income taxes |
|
29.3 |
|
|
|
0.3 |
|
Income tax expense |
|
(1.5 |
) |
|
|
(0.3 |
) |
Net income |
$ |
27.8 |
|
|
$ |
— |
|
|
|
|
|
||||
Net income per share: |
|
|
|
||||
Basic |
$ |
0.40 |
|
|
$ |
— |
|
Diluted |
$ |
0.40 |
|
|
$ |
— |
|
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
||||
Basic |
|
69,254 |
|
|
|
66,113 |
|
Diluted |
|
69,858 |
|
|
|
66,113 |
|
CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) |
|||||
|
As of |
||||
|
December 31, |
||||
(dollars in millions) |
2022 |
|
2021 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
709.6 |
|
$ |
791.6 |
Accounts receivable, net |
|
189.3 |
|
|
161.0 |
Inventories |
|
314.8 |
|
|
303.2 |
Prepaid expenses and other current assets |
|
71.7 |
|
|
74.0 |
Total current assets |
|
1,285.4 |
|
|
1,329.8 |
Property, plant and equipment, net |
|
538.2 |
|
|
536.5 |
|
|
104.6 |
|
|
76.4 |
Other assets |
|
141.0 |
|
|
106.1 |
Total assets |
$ |
2,069.2 |
|
$ |
2,048.8 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Accounts payable |
$ |
52.2 |
|
$ |
37.7 |
Accrued expenses and other current liabilities |
|
137.1 |
|
|
166.0 |
Current portion of long-term debt |
|
25.7 |
|
|
25.1 |
Total current liabilities |
|
215.0 |
|
|
228.8 |
Long-term debt, net |
|
1,390.5 |
|
|
1,248.8 |
Other liabilities |
|
17.0 |
|
|
14.9 |
Total liabilities |
|
1,622.5 |
|
|
1,492.5 |
Stockholders’ equity |
|
446.7 |
|
|
556.3 |
Total liabilities and stockholders’ equity |
$ |
2,069.2 |
|
$ |
2,048.8 |
NON-GAAP RECONCILIATIONS (UNAUDITED) |
||||||||||||||
CONSTANT CURRENCY REVENUE GROWTH |
||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||
(dollars in millions) |
|
2022 |
|
|
2021 |
|
Percent Change |
|
Currency Impact |
|
Constant Currency |
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||
|
$ |
174.1 |
|
$ |
143.3 |
|
21.5 |
% |
|
— |
% |
|
21.5 |
% |
International Omnipod |
|
95.4 |
|
|
89.9 |
|
6.1 |
% |
|
(6.4 |
) % |
|
12.5 |
% |
Total Omnipod |
|
269.5 |
|
|
233.2 |
|
15.6 |
% |
|
(2.4 |
) % |
|
18.0 |
% |
Drug Delivery |
|
25.9 |
|
|
19.1 |
|
35.6 |
% |
|
— |
% |
|
35.6 |
% |
Total |
$ |
295.4 |
|
$ |
252.3 |
|
17.1 |
% |
|
(2.2 |
) % |
|
19.3 |
% |
ADJUSTED EBITDA |
|||||||||||
|
Three Months Ended |
||||||||||
(dollars in millions) |
2022 |
|
Percent of Revenue |
|
2021 |
|
Percent of Revenue |
||||
Net income |
$ |
27.8 |
|
9.4 |
% |
|
$ |
— |
|
— |
% |
Interest expense, net |
|
8.9 |
|
|
|
|
13.4 |
|
|
||
Income tax expense |
|
1.5 |
|
|
|
|
0.3 |
|
|
||
Depreciation and amortization |
|
15.3 |
|
|
|
|
12.8 |
|
|
||
Stock-based compensation |
|
9.5 |
|
|
|
|
8.6 |
|
|
||
Adjusted EBITDA |
$ |
63.0 |
|
21.3 |
% |
|
$ |
35.1 |
|
13.9 |
% |
REVENUE GUIDANCE RECONCILIATIONS (UNAUDITED) |
|||||||||||
|
Year Ending |
||||||||||
|
Low |
|
High |
||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
|
19 % |
|
— % |
|
19 % |
|
23 % |
|
— % |
|
23 % |
International Omnipod |
— % |
|
(9) % |
|
9 % |
|
5 % |
|
(9) % |
|
14 % |
Total Omnipod |
13 % |
|
(3) % |
|
16 % |
|
17 % |
|
(3) % |
|
20 % |
Drug Delivery |
(35) % |
|
— % |
|
(35) % |
|
(30) % |
|
— % |
|
(30) % |
Total |
9 % |
|
(3) % |
|
12 % |
|
13 % |
|
(3) % |
|
16 % |
|
Three Months Ended |
||||||||||
|
Low |
|
High |
||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
|
21 % |
|
— % |
|
21 % |
|
24 % |
|
— % |
|
24 % |
International Omnipod |
(2) % |
|
(11) % |
|
9 % |
|
1 % |
|
(11) % |
|
12 % |
Total Omnipod |
13 % |
|
(4) % |
|
17 % |
|
16 % |
|
(4) % |
|
20 % |
Drug Delivery |
(43) % |
|
— % |
|
(43) % |
|
(37) % |
|
— % |
|
(37) % |
Total |
8 % |
|
(4) % |
|
12 % |
|
11 % |
|
(4) % |
|
15 % |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005975/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:
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