Inspire(INSP) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q4 2024 was $239.7 million, a 25% increase from$ 192.5 million in Q4 2023 [26] - Net income for Q4 2024 was $35.2 million, compared to$ 14.8 million in the prior year, representing diluted net income of $1.15 per share versus$ 0.49 per share in Q4 2023 [11][28] - For the full year 2024, revenue totaled $802.8 million, a 28% increase over$ 624.8 million in 2023, with net income of $53.5 million compared to a net loss of$ 21.2 million in 2023 [31] Business Line Data and Key Metrics Changes - U.S. revenue in Q4 2024 was $231.6 million, a 22% increase from$ 189.4 million in the prior year [26] - Revenue outside the U.S. was $8.1 million, a 163% increase year-over-year [26] - The company added 72 new U.S. centers in Q4 2024, bringing the total to 1,435 active U.S. centers [27] Market Data and Key Metrics Changes - The company continues to expand its market presence, with a focus on increasing patient access and therapy adoption [24] - The Inspire V neurostimulator received FDA approval, which is expected to enhance market penetration and patient outcomes [12] Company Strategy and Development Direction - The company aims to drive growth through the adoption of Inspire therapy, enhancing patient access, and increasing the capacity of provider partners [24] - Key strategies include adding advanced practice providers and certifying additional surgeons qualified to implant Inspire therapy [25] - The company plans to invest in medical education programs to improve awareness and adoption of Inspire therapy [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth strategy and the potential for long-term stakeholder value [25] - The company anticipates continued revenue growth in 2025, with guidance of$ 940 million to $955 million, representing a 17% to 19% increase year-over-year [32] - Management acknowledged the ongoing investigation by the Department of Justice but does not expect it to interfere with business operations [24][41] Other Important Information - The company generated$ 130 million in operating cash flow for the full year 2024, with total cash and investment balances reaching $517 million [29] - The Inspire V device is designed to reduce surgical complexity and improve patient outcomes, with positive early feedback from initial procedures [13][14] Q&A Session Summary Question: EPS guidance and DOJ CID - Management indicated that they do not expect to be profitable in Q1 but anticipate sequential improvement throughout the year [39] - Regarding the DOJ CID, management committed to cooperating with the investigation and emphasized their compliance programs [41][42] Question: Impact of digital scheduling on patient volume - Management reported significant advantages in patient appointment success using digital scheduling, leading to increased participation in the program [47][48] Question: Inspire V reimbursement and physician feedback - Management believes the Inspire V will not be a barrier to adoption, as it simplifies the procedure for ENT surgeons [52][54] Question: Revenue phasing and expenses for Inspire V launch - Management expects sequential revenue growth throughout the year, with continued investments in R&D and expansion of sales territories [62] Question: International revenue growth and interest income - Management indicated that international revenue is expected to remain a small percentage of total revenue, while interest income is projected at$ 20 million for the year [93][95] Question: Inventory build for Inspire V - Management confirmed that they are actively building inventory for Inspire V and have opened a new production line to support this [127][128] Question: Long-term center base outlook - Management expressed a commitment to consistent growth and expanding the center base over the next 3 to 5 years [148]