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Sep 30, 2023

Inspire Q3 2023 Earnings Report

Inspire reported a strong third quarter with revenue growth driven by higher utilization at existing sites and the addition of new implanting centers and sales territories.

Key Takeaways

Inspire Medical Systems reported a 40% year-over-year revenue increase in Q3 2023, reaching $153.3 million. The company also activated 62 new centers and created 13 new U.S. sales territories. They are increasing full-year revenue guidance to $608 to $612 million.

Revenue increased by 40% year-over-year, reaching $153.3 million.

Gross margin was 84.1% in the third quarter of 2023.

The company activated 62 new centers in the U.S. and created 13 new U.S. sales territories.

Full-year revenue guidance increased to $608 to $612 million.

Total Revenue
$153M
Previous year: $109M
+40.4%
EPS
-$0.29
Previous year: -$0.6
-51.7%
Total US Sales Territories
274
Previous year: 209
+31.1%
Total Centers
1.11K
Previous year: 844
+31.2%
New Center Adds
62
Previous year: 59
+5.1%
Gross Profit
$129M
Previous year: $89.4M
+44.2%
Cash and Equivalents
$330M
Previous year: $418M
-21.0%
Free Cash Flow
-$3.35M
Previous year: $7.49M
-144.7%
Total Assets
$639M
Previous year: $528M
+21.2%

Inspire

Inspire

Inspire Revenue by Geographic Location

Forward Guidance

Inspire is increasing and narrowing its full year 2023 revenue guidance to between $608 million to $612 million, which represents growth of 49% to 50% over full year 2022 revenue of $407.9 million. The Company is maintaining its full year 2023 gross margin guidance of 83% to 85%. Inspire is also maintaining its guidance relating to the opening of new U.S. medical centers of 52 to 56 per quarter for the remaining quarter of the year, as well as its guidance of 12 to 14 new U.S. territories for the fourth quarter of 2023.

Positive Outlook

  • Full year 2023 revenue guidance increased to $608 million - $612 million (49%-50% growth)
  • Gross margin guidance maintained at 83% - 85%
  • New U.S. medical center openings maintained at 52-56 per quarter
  • New U.S. territories maintained at 12-14 for Q4
  • Prior authorization submissions increased at the end of the quarter

Challenges Ahead

  • Observed a decline in prior authorization submissions early in the third quarter
  • Operating expenses increased to $142.4 million
  • Net loss was $8.5 million
  • Diluted net loss per share was $0.29
  • Pilot program regarding prior authorization submissions impacted implant procedures

Revenue & Expenses

Visualization of income flow from segment revenue to net income