Insulet Reports Second Quarter 2023 Revenue Increase of 32% Year-Over-Year (32% Constant Currency¹)
- Insulet Corporation achieved strong revenue growth of 32.4% in the second quarter of 2023.
- Total Omnipod revenue increased by 33.2%, driven by a 40.9% growth in U.S. Omnipod revenue.
- Gross margin improved by 320 basis points to 66.8%.
- Operating income was $31.1 million, compared to an operating loss of $26.7 million in the prior year.
- Net income was $27.3 million, compared to a net loss of $35.0 million in the prior year.
- Adjusted EBITDA increased to $61.3 million, up from $27.6 million in the prior year.
- None.
Second Quarter Financial Highlights:
-
Second quarter 2023 revenue of
, up$396.5 million 32.4% , or32.2% in constant currency1, compared to in the prior year$299.4 million -
Total Omnipod revenue of
, an increase of$380.5 million 33.2% , or33.0% in constant currency-
U.S. Omnipod revenue of , an increase of$276.8 million 40.9% -
International Omnipod revenue of
, an increase of$103.7 million 16.0% , or15.5% in constant currency
-
-
Drug Delivery revenue of
, an increase of$16.0 million 17.6%
-
Total Omnipod revenue of
-
Gross margin of
66.8% , up 320 basis points. Adjusted gross margin1 of66.6% excludes income of associated with the voluntary medical device correction (MDC) notices issued in 2022$0.8 million -
Operating income of
, or$31.1 million 7.8% of revenue, compared to operating loss of , or (8.9)% of revenue, in the prior year. Adjusted operating income1 of$26.7 million , or$30.3 million 7.6% of revenue, excludes income of noted above. Adjusted operating income in the prior year of$0.8 million , or$4.0 million 1.3% of revenue, excludes of certain litigation and legal costs and costs associated with retirement and advisory services of the former chief executive officer$30.7 million -
Net income of
, or$27.3 million per diluted share, compared to net loss of$0.39 , or$35.0 million per diluted share, in the prior year. Adjusted net income1 of$(0.50) , or$26.5 million per diluted share, excludes income of$0.38 noted above. Adjusted net loss in the prior year of$0.8 million , or$4.3 million per diluted share, excludes costs of$(0.06) noted above$30.7 million -
Adjusted EBITDA1 of
, or$61.3 million 15.5% of revenue, compared to , or$27.6 million 9.2% of revenue, in the prior year
Recent Strategic Highlights:
-
Commercially launched Omnipod 5 in the
United Kingdom , our first international Omnipod 5 launch - Submitted the Omnipod 5 iOS App for the iPhone to the FDA for 510(k) clearance
-
Achieved record
U.S. and Total Omnipod new customer starts - Presented additional real-world evidence for Omnipod 5 at the American Diabetes Association Scientific Sessions demonstrating improved outcomes for children, adolescents and adults with type 1 diabetes and, for the first time, adults with type 2 diabetes
“Our second quarter achievements demonstrate the strength and value of our pioneering offerings and dedicated team,” said Jim Hollingshead, President and Chief Executive Officer. “Omnipod 5 continues to disrupt the diabetes market in the
_______________________________
1 See description of non-GAAP financial measures contained in this release. |
2023 Outlook:
Revenue Guidance (in constant currency):
-
For the year ending December 31, 2023, the Company is raising its expected revenue growth of
22% to25% (previously18% to22% ). Revenue growth ranges by product line are:-
Total Omnipod of
25% to28% (previously21% to25% )-
U.S. Omnipod of33% to36% (previously27% to31% ) -
International Omnipod of
7% to10% (previously6% to10% )
-
-
Drug Delivery of (50)% to (45)% (previously (55)% to (45)%)
-
Total Omnipod of
-
For the quarter ending September 30, 2023, the Company expects revenue growth of
18% to21% . Revenue growth ranges by product line are:-
Total Omnipod of
20% to23% -
U.S. Omnipod of27% to30% -
International Omnipod of
2% to5%
-
- Drug Delivery of (30)% to (25)%
-
Total Omnipod of
Gross Margin and Operating Margin Guidance:
For the year ending December 31, 2023, the Company is reaffirming its expected gross margin of
For the year ending December 31, 2023, the Company expects operating margin of high-single digits, closer to the high-end of the range, excluding income of
Conference Call:
Insulet will host a conference call at 4:30 p.m. (Eastern Time) on August 8, 2023 to discuss the financial results and outlook. The link to the live call will be available on the Investor Relations section of the Company’s website at investors.insulet.com, “Events and Presentations,” and will be archived for future reference. The live call may also be accessed by dialing (888) 770-7129 for domestic callers or (929) 203-2109 for international callers, passcode 5904836.
About Insulet Corporation:
Insulet Corporation (NASDAQ: PODD), headquartered in
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 in
the 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, all of which exclude the impact of certain significant transactions or events, such as legal settlements, medical device corrections 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 (loss) plus net interest expense, income tax expense (benefit), depreciation and amortization, stock-based compensation expense and other significant transactions or events, such as legal settlements, medical device corrections 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.
Insulet presents the above non-GAAP financial measures because management uses them as supplemental measures in assessing the Company’s performance, and the Company believes they are helpful to investors and other interested parties as measures of comparative 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, Insulet strongly encourages investors to review the Company’s consolidated financial statements and publicly filed reports in their entirety.
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, government actions and restrictive measures implemented in response, supply chain disruptions, delays in clinical trials, and other impacts to the business, customers, suppliers, and employees; dependence on a principal product platform; ability to maintain and grow the Company’s customer base; ability to scale the business to support revenue growth, maintain an effective sales force and expand 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; 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 current product and/or commercialize future products; challenges to the future development of the Company’s 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 the Company is dependent; failure to retain key suppliers; ability to protect intellectual property and other proprietary rights and potential conflicts with the intellectual property of third parties; extensive government regulation applicable to medical devices as well as complex and evolving privacy and data protection laws; adverse regulatory or legal actions relating to the Omnipod System or future products; failure of the Company’s 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 the Company’s future operations, see Part I, Item 1A - Risk Factors in the most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission, which the Company may update in Part II, Item 1A - Risk Factors in Quarterly Reports on Form 10-Q the Company has filed or will file hereafter. Any forward-looking statement made in this release speaks only as of the date of this release. Insulet does not undertake to update any forward-looking statement, other than as required by law.
©2023 Insulet Corporation. Omnipod, Omnipod DASH, Omnipod GO and Omnipod 5 are registered trademarks of Insulet Corporation. |
INSULET CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
(dollars in millions, except per share data) |
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Revenue |
$ |
396.5 |
|
|
$ |
299.4 |
|
|
$ |
754.6 |
|
|
$ |
594.8 |
|
Cost of revenue |
|
131.6 |
|
|
|
109.1 |
|
|
|
249.2 |
|
|
|
194.8 |
|
Gross profit |
|
264.9 |
|
|
|
190.3 |
|
|
|
505.4 |
|
|
|
400.0 |
|
Research and development expenses |
|
55.1 |
|
|
|
42.6 |
|
|
|
105.2 |
|
|
|
85.7 |
|
Selling, general and administrative expenses |
|
178.7 |
|
|
|
174.4 |
|
|
|
341.4 |
|
|
|
303.1 |
|
Operating income (loss) |
|
31.1 |
|
|
|
(26.7 |
) |
|
|
58.8 |
|
|
|
11.2 |
|
Interest expense, net |
|
(2.4 |
) |
|
|
(8.3 |
) |
|
|
(5.3 |
) |
|
|
(17.2 |
) |
Other expense, net |
|
(0.2 |
) |
|
|
(1.1 |
) |
|
|
(0.4 |
) |
|
|
(0.8 |
) |
Income (loss) before income taxes |
|
28.5 |
|
|
|
(36.1 |
) |
|
|
53.1 |
|
|
|
(6.8 |
) |
Income tax (expense) benefit |
|
(1.2 |
) |
|
|
1.1 |
|
|
|
(2.0 |
) |
|
|
(0.4 |
) |
Net income (loss) |
$ |
27.3 |
|
|
$ |
(35.0 |
) |
|
$ |
51.1 |
|
|
$ |
(7.2 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.39 |
|
|
$ |
(0.50 |
) |
|
$ |
0.73 |
|
|
$ |
(0.10 |
) |
Diluted |
$ |
0.39 |
|
|
$ |
(0.50 |
) |
|
$ |
0.73 |
|
|
$ |
(0.10 |
) |
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||||
Basic |
|
69,741 |
|
|
|
69,356 |
|
|
|
69,662 |
|
|
|
69,305 |
|
Diluted |
|
70,142 |
|
|
|
69,356 |
|
|
|
70,119 |
|
|
|
69,305 |
|
INSULET CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||
(dollars in millions) |
June 30, 2023 |
|
December 31, 2022 |
||
ASSETS |
|
|
|
||
Cash and cash equivalents |
$ |
660.1 |
|
$ |
674.7 |
Accounts receivable, net |
|
250.5 |
|
|
205.6 |
Inventories |
|
411.3 |
|
|
346.8 |
Prepaid expenses and other current assets |
|
99.6 |
|
|
86.9 |
Total current assets |
|
1,421.5 |
|
|
1,314.0 |
Property, plant and equipment, net |
|
601.5 |
|
|
599.9 |
Goodwill and other intangible assets, net |
|
151.2 |
|
|
127.2 |
Other assets |
|
211.6 |
|
|
210.0 |
Total assets |
$ |
2,385.8 |
|
$ |
2,251.1 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||
Accounts payable |
$ |
107.5 |
|
$ |
30.8 |
Accrued expenses and other current liabilities |
|
288.3 |
|
|
306.4 |
Current portion of long-term debt |
|
29.2 |
|
|
27.5 |
Total current liabilities |
|
425.0 |
|
|
364.7 |
Long-term debt, net |
|
1,368.6 |
|
|
1,374.3 |
Other liabilities |
|
38.3 |
|
|
35.7 |
Total liabilities |
|
1,831.9 |
|
|
1,774.7 |
Stockholders’ equity |
|
553.9 |
|
|
476.4 |
Total liabilities and stockholders’ equity |
$ |
2,385.8 |
|
$ |
2,251.1 |
INSULET CORPORATION NON-GAAP RECONCILIATIONS (UNAUDITED) |
||||||||||||||
CONSTANT CURRENCY REVENUE GROWTH |
||||||||||||||
|
Three Months Ended June 30, |
|
|
|
|
|
|
|||||||
(dollars in millions) |
2023 |
|
2022 |
|
Percent Change |
|
Currency
|
|
Constant
|
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||
|
$ |
276.8 |
|
$ |
196.4 |
|
40.9 |
% |
|
— |
% |
|
40.9 |
% |
International Omnipod |
|
103.7 |
|
|
89.4 |
|
16.0 |
% |
|
0.5 |
% |
|
15.5 |
% |
Total Omnipod |
|
380.5 |
|
|
285.8 |
|
33.2 |
% |
|
0.2 |
% |
|
33.0 |
% |
Drug Delivery |
|
16.0 |
|
|
13.6 |
|
17.6 |
% |
|
— |
% |
|
17.6 |
% |
Total |
$ |
396.5 |
|
$ |
299.4 |
|
32.4 |
% |
|
0.2 |
% |
|
32.2 |
% |
|
Six Months Ended June 30, |
|
|
|
|
|
|
|||||||
(dollars in millions) |
2023 |
|
2022 |
|
Percent Change |
|
Currency
|
|
Constant
|
|||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||
|
$ |
535.8 |
|
$ |
370.5 |
|
44.6 |
% |
|
— |
% |
|
44.6 |
% |
International Omnipod |
|
202.3 |
|
|
184.8 |
|
9.5 |
% |
|
(3.0 |
)% |
|
12.5 |
% |
Total Omnipod |
|
738.1 |
|
|
555.3 |
|
32.9 |
% |
|
(1.0 |
)% |
|
33.9 |
% |
Drug Delivery |
|
16.5 |
|
|
39.5 |
|
(58.2 |
)% |
|
— |
% |
|
(58.2 |
)% |
Total |
$ |
754.6 |
|
$ |
594.8 |
|
26.9 |
% |
|
(0.9 |
)% |
|
27.8 |
% |
INSULET CORPORATION NON-GAAP RECONCILIATIONS (UNAUDITED) |
|||||||||||||||||||||
ADJUSTED GROSS MARGIN, OPERATING MARGIN, NET INCOME, DILUTED EPS |
|||||||||||||||||||||
|
Three Months Ended June 30, 2023 |
||||||||||||||||||||
(in millions) |
Gross Profit |
|
Percent of
|
|
Operating
|
|
Percent of
|
|
Net
|
|
Diluted
|
||||||||||
GAAP |
$ |
264.9 |
|
|
66.8 |
% |
|
$ |
31.1 |
|
|
7.8 |
% |
|
$ |
27.3 |
|
|
$ |
0.39 |
|
Voluntary medical device corrections(1) |
|
(0.8 |
) |
|
|
|
|
(0.8 |
) |
|
|
|
|
(0.8 |
) |
|
|
(0.01 |
) |
||
Non-GAAP |
$ |
264.1 |
|
|
66.6 |
% |
|
$ |
30.3 |
|
|
7.6 |
% |
|
$ |
26.5 |
|
|
$ |
0.38 |
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||||||
(in millions) |
Gross Profit |
|
Percent of
|
|
Operating
|
|
Percent of
|
|
Net
|
|
Diluted
|
||||||||||
GAAP |
$ |
505.4 |
|
|
67.0 |
% |
|
$ |
58.8 |
|
|
7.8 |
% |
|
$ |
51.1 |
|
|
$ |
0.73 |
|
Voluntary medical device corrections(1) |
|
(8.8 |
) |
|
|
|
|
(8.8 |
) |
|
|
|
|
(8.8 |
) |
|
|
(0.12 |
) |
||
Non-GAAP |
$ |
496.6 |
|
|
65.8 |
% |
|
$ |
50.0 |
|
|
6.6 |
% |
|
$ |
42.3 |
|
|
$ |
0.60 |
|
|
Three Months Ended June 30, 2022 |
|||||||||||||
(dollars in millions) |
Operating (Loss)
|
|
Percent of Revenue |
|
Net Loss(4) |
|
Diluted (Loss)
|
|||||||
GAAP |
$ |
(26.7 |
) |
|
(8.9 |
)% |
|
$ |
(35.0 |
) |
|
$ |
(0.50 |
) |
Legal costs(2) |
|
27.3 |
|
|
|
|
|
27.3 |
|
|
|
0.39 |
|
|
CEO transition costs(3) |
|
3.4 |
|
|
|
|
|
3.4 |
|
|
|
0.05 |
|
|
Non-GAAP |
$ |
4.0 |
|
|
1.3 |
% |
|
$ |
(4.3 |
) |
|
$ |
(0.06 |
) |
|
Six Months Ended June 30, 2022 |
||||||||||||
(dollars in millions) |
Operating Income |
|
Percent of Revenue |
|
Net (Loss) Income(4) |
|
Diluted (Loss)
|
||||||
GAAP |
$ |
11.2 |
|
1.9 |
% |
|
$ |
(7.2 |
) |
|
$ |
(0.10 |
) |
Legal costs(2) |
|
27.3 |
|
|
|
|
27.3 |
|
|
|
0.39 |
|
|
CEO transition costs(3) |
|
3.4 |
|
|
|
|
3.4 |
|
|
|
0.05 |
|
|
Non-GAAP |
$ |
41.9 |
|
7.0 |
% |
|
$ |
23.5 |
|
|
$ |
0.34 |
|
ADJUSTED EBITDA |
|||||||||||||||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||||||
(dollars in millions) |
2023 |
|
Percent
|
|
2022 |
|
Percent
|
|
2023 |
|
Percent
|
|
2022 |
|
Percent
|
||||||||||||
Net income (loss) |
$ |
27.3 |
|
|
6.9 |
% |
|
$ |
(35.0 |
) |
|
(11.7 |
)% |
|
$ |
51.1 |
|
|
6.8 |
% |
|
$ |
(7.2 |
) |
|
(1.2 |
)% |
Interest expense, net |
|
2.4 |
|
|
|
|
|
8.3 |
|
|
|
|
|
5.3 |
|
|
|
|
|
17.2 |
|
|
|
||||
Income tax expense |
|
1.2 |
|
|
|
|
|
(1.1 |
) |
|
|
|
|
2.0 |
|
|
|
|
|
0.4 |
|
|
|
||||
Depreciation and amortization |
|
18.1 |
|
|
|
|
|
15.8 |
|
|
|
|
|
35.3 |
|
|
|
|
|
31.1 |
|
|
|
||||
Stock-based compensation expense |
|
13.1 |
|
|
|
|
|
8.9 |
|
|
|
|
|
25.2 |
|
|
|
|
|
18.4 |
|
|
|
||||
Voluntary medical device correction(1) |
|
(0.8 |
) |
|
|
|
|
— |
|
|
|
|
|
(8.8 |
) |
|
|
|
|
— |
|
|
|
||||
Legal costs(2) |
|
— |
|
|
|
|
|
27.3 |
|
|
|
|
|
— |
|
|
|
|
|
27.3 |
|
|
|
||||
CEO transition costs(3) |
|
— |
|
|
|
|
|
3.4 |
|
|
|
|
|
— |
|
|
|
|
|
3.4 |
|
|
|
||||
Adjusted EBITDA |
$ |
61.3 |
|
|
15.5 |
% |
|
$ |
27.6 |
|
|
9.2 |
% |
|
$ |
110.1 |
|
|
14.6 |
% |
|
$ |
90.6 |
|
|
15.2 |
% |
(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) |
Includes a |
|
(3) |
Represents costs in the second quarter of 2022 associated with the retirement and advisory services of the former chief executive officer, including |
|
(4) | The tax effect on non-GAAP adjustments is calculated based on the applicable local statutory tax rates, including any valuation allowance. |
INSULET CORPORATION NON-GAAP RECONCILIATIONS CONTINUED (UNAUDITED) REVENUE GUIDANCE |
|||||
|
Year Ending December 31, 2023 |
||||
|
Revenue Growth
|
|
Currency
|
|
Constant
|
|
|
|
—% |
|
|
International Omnipod |
|
|
|
|
|
Total Omnipod |
|
|
|
|
|
Drug Delivery |
(50)% - (45)% |
|
—% |
|
(50)% - (45)% |
Total |
|
|
|
|
|
|
Three Months Ended September 30, 2023 |
||||
|
Revenue Growth
|
|
Currency
|
|
Constant
|
|
|
|
—% |
|
|
International Omnipod |
|
|
|
|
|
Total Omnipod |
|
|
|
|
|
Drug Delivery |
(30)% - (25)% |
|
—% |
|
(30)% - (25)% |
Total |
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808973433/en/
Investor Relations:
Deborah R. Gordon
Vice President, Investor Relations
(978) 600-7717
dgordon@insulet.com
Media:
Angela Geryak Wiczek
Senior Director, Corporate Communications
(978) 932-0611
awiczek@insulet.com
Source: Insulet Corporation
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