Medical technology company Inspire Medical Systems Inc. (INSP:NYSE), which concentrates its efforts on developing and commercializing minimally invasive solutions to treat obstructive sleep apnea, yesterday announced financial results for the third quarter of 2020 ended September 30, 2020.
Inspire Medical Systems reported that revenue in Q3/20 increased by 72% to $35.8 million, compared to $20.9 million in Q3/19. The firm stated that in Q3/20, U.S. revenues increased 78% to $33.1 million and European revenues rose by 23% to $2.7 million, compared to the corresponding quarter in 2019.
The firm also highlighted that gross margin improved to 85.5% in the quarter, compared to 83.4% in the same quarter last year.
The company reported that in Q3/20 it posted a net loss of $10.4 million, compared to a net loss of $8.2 million in Q3/19. The firm added that this resulted in a diluted net loss per share of $0.39 in Q3/20, versus a diluted net loss per share of $0.34 in Q3/19.
The company said that it added 42 new centers in Q3/20, which brings the total number of U.S. medical centers implanting its Inspire therapy to 370. The firm additionally stated that it rolled out seven new sales territories in the quarter, which now brings the total in the U.S up to 98.
The company's President and CEO Tim Herbert commented, "We are extremely pleased with the strong performance demonstrated throughout our business in the third quarter...The 72% year-over-year revenue growth achieved in the third quarter reflects our strong restart once the shutdown from the COVID-19 pandemic lessened... Based on our strong performance in the third quarter and the encouraging implant activity trends we are seeing, Inspire is increasing its full year 2020 revenue guidance to between $110 million and $112 million, an increase from our prior guidance of $88 million to $92 million."
"The significant momentum in our business is being driven by multiple key factors, including the addition of a substantial number of new centers and territories, and broader commercial and Medicare insurance coverage...The 42 new U.S. implanting centers we added in the third quarter was well above our prior guidance of 20 to 24 new centers per quarter in 2020 and reflects a carry-over from centers unable to open in the second quarter due to COVID-19, Herbert added."
The company advised that it is increasing its FY/20 revenue guidance to $110-112 million and noted that this level represents growth of about 34-37% over FY/19 revenue, which was $82.1 million. The firm added that it expects that gross margin for FY/20 will be in the range of 84-85%.
Inspire also advised that it now plans to open 28-30 new U.S. medical centers in Q4/20, compared to its previous estimates of 20-24 centers per quarter in 2020.
Inspire Medical Systems is a medical technology company that develops minimally invasive and innovative solutions for treating patients with obstructive sleep apnea. The firm stated that "its proprietary Inspire therapy is the first and only FDA-approved neurostimulation technology that provides a safe and effective treatment for moderate to severe obstructive sleep apnea."
Inspire Medical Systems began the day with a market capitalization of around $3.3 billion with approximately 26.8 million shares outstanding and a short interest of about 5.7%. INSP shares opened 19% higher today at $145.00 (+$23.25, +19.10%) over yesterday's $121.75 closing price and reached a new 52-week high this morning of $153.83. The stock has traded today between $142.00 and $153.83 per share and is currently trading at $157.54 (+$36.17, +29.80%).[NLINSERT]
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