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Sep 30, 2024

Insulet Q3 2024 Earnings Report

Reported a revenue increase of 26% year-over-year (25% constant currency).

Key Takeaways

Insulet reported strong third-quarter results, with revenue reaching $543.9 million, a 25.7% increase year-over-year. The company raised its full-year revenue and margin guidance, driven by the success of Omnipod 5 and its recent FDA clearance for type 2 diabetes.

Third quarter revenue increased by 25.7% to $543.9 million.

Total Omnipod revenue grew by 26.4% to $533.6 million.

Gross margin increased to 69.3%, up 150 basis points year-over-year.

Operating income increased to $88.1 million, or 16.2% of revenue, up 350 basis points year-over-year.

Total Revenue
$544M
Previous year: $433M
+25.7%
EPS
$0.9
Previous year: $0.71
+26.8%
Gross Margin
69.3%
Previous year: 67.8%
+2.2%
Adjusted EBITDA
$126M
Previous year: $82.8M
+52.3%
Gross Profit
$377M
Previous year: $293M
+28.6%
Cash and Equivalents
$903M
Previous year: $685M
+31.7%
Free Cash Flow
$71.8M
Previous year: $35.9M
+100.0%
Total Assets
$3.03B
Previous year: $2.47B
+22.6%

Insulet

Insulet

Insulet Revenue by Segment

Forward Guidance

The Company expects revenue growth of 12% to 15% for the quarter ending December 31, 2024, with Omnipod revenue growth of 13% to 16%.

Positive Outlook

  • Total Omnipod revenue is expected to grow by 13% to 16%.
  • U.S. Omnipod revenue is expected to grow by 9% to 12%.
  • International Omnipod revenue is expected to grow by 30% to 33%.
  • Gross margin is expected to be approximately 69%.
  • Operating margin is expected to be approximately 14.5%.

Challenges Ahead

  • Drug Delivery revenue is expected to decline by 20% to 15% (approximately $7 million to $8 million).
  • U.S. Omnipod revenue in the fourth quarter of 2023 benefited from two stocking dynamics totaling an estimated $30 million to $40 million (impacting fourth quarter of 2024 U.S. Omnipod revenue growth by ~1,100 basis points).
  • Worldwide macroeconomic and geopolitical uncertainty.
  • Risks associated with public health crises and pandemics.
  • Potential adverse impacts resulting from a recall, discovery of serious safety issues, or product liability lawsuits relating to off-label use.

Revenue & Expenses

Visualization of income flow from segment revenue to net income