Inspire Medical Systems (INSP) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 40% YoY to $192.5M; net income was $14.8M, and the quarter marked the first with operating income.

• FY2023 revenue reached $624.8M, up 53%; net loss was $21.2M, down from $44.9M.

• More than 60,000 patients had received Inspire therapy by year-end.

Financial highlights

• Q4 revenue was $192.5M versus $137.9M in Q4 2022; gross profit was $164.5M and gross margin was 85.4% versus 83.9%.

• FY2023 revenue was $624.8M versus $407.9M in FY2022; gross profit was $528.2M and gross margin was 84.5% versus 83.8%.

• Q4 diluted EPS was $0.49 versus $0.10; FY2023 diluted loss per share was $0.72 versus $1.60.

• Q4 operating expenses increased 34% to $155.2M; FY2023 operating expenses rose 46% to $568.5M.

Outlook and guidance

• FY2024 revenue guidance was reaffirmed at $775M–$785M, representing 24%–26% growth; gross margin guidance is 83%–85%.

• Quarterly targets are 52–56 new U.S. implanting centers and 12–14 sales territories; management expects profitability in H2 2024.

• SleepSync physician programmer launch in the U.S., expected FDA approval of Inspire V, and reimbursement in France are targeted for 2024; Inspire V was in final qualification.