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Jun 30, 2020

Insulet Q2 2020 Earnings Report

Insulet reported a revenue increase of 28% year-over-year in the second quarter of 2020.

Key Takeaways

Insulet Corporation announced financial results for the three months ended June 30, 2020, with second quarter revenue of $226.3 million, up 27.8% compared to the prior year. The company's strong financial profile allows them to continue to invest in their business and advance important initiatives.

Second quarter 2020 revenue of $226.3 million, up 27.8%, or 28.8% in constant currency, compared to $177.1 million in the prior year, exceeds guidance of 19% to 23% on a constant currency basis

Total Omnipod revenue of $202.0 million, an increase of 25.6%, or 26.8% in constant currency

Net income of $14.4 million, or $0.22 per diluted share, compared to net income of $1.4 million, or $0.02 per diluted share, in the prior year

Adjusted EBITDA of $44.2 million or 19.5% of revenue, compared to $21.9 million or 12.4% of revenue in the prior year

Total Revenue
$226M
Previous year: $177M
+27.8%
EPS
$0.22
Previous year: $0.02
+1000.0%
Gross Margin
63%
Adjusted EBITDA
$44.2M
Previous year: $21.9M
+101.8%
Gross Profit
$143M
Previous year: $116M
+22.4%
Cash and Equivalents
$844M
Previous year: $120M
+604.4%
Free Cash Flow
$1.6M
Previous year: -$33.8M
-104.7%
Total Assets
$1.63B
Previous year: $978M
+66.4%

Insulet

Insulet

Insulet Revenue by Segment

Forward Guidance

The Company has assumed that the pandemic and recessionary headwinds will persist throughout 2020, with a gradual recovery starting in the third quarter as economies begin to open and customers are able to resume more normal physician meetings.

Positive Outlook

  • Total Omnipod to be 18% to 20%
  • U.S. Omnipod to be 19% to 21%
  • International Omnipod to be 17% to 19%
  • Drug Delivery to be 3% to 6%
  • For the quarter ending September 30, 2020, the Company expects revenue growth of 13% to 15%

Challenges Ahead

  • It remains difficult to accurately predict the progression of COVID-19 and the extent of the resulting disruption.
  • Adjusted EBITDA as a percentage of revenue in the range of 13% to 17%, closer to the low end of the range.
  • Total Omnipod of 12% to 14%
  • U.S. Omnipod of 14% to 16%
  • International Omnipod of 9% to 11%

Revenue & Expenses

Visualization of income flow from segment revenue to net income