Inspire Medical Systems (INSP) 2024 Truist Securities MedTech Conference summary

Business performance and growth outlook

• Achieved 28% growth in U.S. business for Q1, with strong patient demand and positive patient outcomes driving confidence for continued growth.

• Revenue guidance for the year was raised, and profitability is expected for the full year for the first time, without reducing R&D or direct-to-consumer investments.

• Utilization per account was flat year-over-year at 1.7 in Q1, with expectations for sequential and annual growth in utilization for the remainder of the year.

• Community-based healthcare centers are now the primary growth drivers, with higher utilization rates and significant capacity for expansion.

• High-volume centers can perform up to 24 procedures per month, and newer centers are still ramping up, with ongoing efforts to optimize patient flow and outcomes.

Metrics and reporting changes

• Utilization data will continue to be reported through 2024 but will be discontinued in 2025, as it is no longer seen as the most relevant metric for business performance.

• The shift away from utilization reporting is due to business evolution and the diversity of account types, not due to anticipated declines.

• New metrics to replace utilization reporting are under consideration, with ongoing engagement with stakeholders to determine the most informative data.

Capacity expansion and operational initiatives

• Capacity expansion is being driven by increasing the number of physicians per account, optimizing division of labor, and opening new centers.

• Inspire V, expected for soft launch in late 2024 and full launch in 2025, will reduce procedure times and enable future technology upgrades.

• The PREDICTOR study may allow for the elimination of sleep endoscopy in up to two-thirds of patients, potentially accelerating time to implant.

• Ongoing investments in R&D and direct-to-consumer marketing are maintained to support long-term growth.