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 30% and 27% respectively.

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

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

• Achieved key regulatory milestones: FDA approval for Inspire V, CE Mark under EU MDR, and countrywide reimbursement in France.

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

Financial highlights

• Q2 2024 revenue: $195.9M (+30% YoY); gross margin: 84.8% (up from 83.9% in Q2 2023); operating income: $5.1M (vs. $-16.6M prior year); net income: $9.8M.

• Total operating expenses for Q2 were $160.9 million, up 12% year-over-year, mainly due to sales force expansion and corporate costs.

• Cash, cash equivalents, and investments totaled $466 million as of June 30, 2024.

• Interest and dividend income was $5.9 million, up from $4.9 million in Q2 2023.

• Working capital was $541.5 million as of June 30, 2024.

Outlook and guidance

• Full-year 2024 revenue expected at $788-$798 million, up 26%-28% from 2023.

• Full-year gross margin expected between 83%-85%.

• Diluted net income guidance raised to $0.60-$0.80 per share for 2024.

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

• Positive cash flow anticipated for the full year.