Inspire Medical Systems (INSP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $195.9 million, up 30% year-over-year, with U.S. revenue at $187.8 million and international revenue at $8.1 million, both increasing by 30% and 27% respectively.

• Net income for Q2 2024 was $9.8 million, reversing a net loss of $12 million in Q2 2023; diluted EPS was $0.32 versus a loss of $0.41 last year.

• Over 75,000 patients have been treated to date, reflecting strong demand and adoption of therapy.

• Recent milestones include FDA approval for Inspire V, EU MDR certification, and countrywide reimbursement in France.

• Authorized a $150 million share repurchase program, the first in company history.

Financial highlights

• Gross margin improved to 84.8% in Q2 2024, up from 83.9% a year ago, driven by higher sales volumes and manufacturing efficiencies.

• Operating income was $5.1 million, compared to an operating loss of $16.6 million in Q2 2023.

• Total operating expenses rose 12% to $160.9 million, mainly due to sales force expansion and corporate costs.

• Cash, cash equivalents, and investments totaled $466 million at quarter-end.

• FY2023 revenue was $625 million with a gross margin of 84.5%.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $788–$798 million, representing 26%–28% growth over 2023.

• Gross margin guidance maintained at 83%–85% for the year.

• Full-year diluted EPS guidance increased to $0.60–$0.80.

• Expect to activate 52–56 new U.S. centers and 12–14 new sales territories per quarter for the remainder of 2024.

• Profitability expected to continue in Q3 and Q4, with positive net income for the full year.