Inspire reported a 28% year-over-year revenue growth in Q1 2024, driven in part by increased awareness of its Inspire therapy for sleep apnea.
Summary: Inspire Medical Systems Inc reported a 28% year-over-year revenue growth in Q1 2024, reaching $164 million, driven by increased awareness of its Inspire therapy for obstructive sleep apnea. The company activated 66 new US centers, totaling 1,246, and expanded to 298 US sales territories. US revenue rose 25% to $155.8 million, while international revenue surged by 141%. Based on strong performance, Inspire increased its full-year revenue guidance to $783-$793 million, projecting growth of 25-27% over 2023, while maintaining its gross margin guidance of 83-85%.
Key Takeaways:
- Inspire Medical Systems achieved a 28% year-over-year revenue increase in Q1 2024, reaching $164 million.
- The company opened 66 new US centers and expanded to 298 US sales territories in Q1 2024, bringing the total number of centers offering Inspire therapy to 1,246.
- Inspire Medical Systems increased its full-year 2024 revenue guidance to $783-$793 million, representing a projected growth of 25-27% over 2023, while maintaining its gross margin guidance at 83-85%.
Inspire Medical Systems Inc, maker of Inspire therapy for obstructive sleep apnea, reported 28% year-over-year growth in the first quarter, in part due to increased awareness of its hypoglossal nerve stimulator.
“Our revenue growth was again driven by increased market penetration in existing centers, expansion into new territories, and increased physician and patient awareness of our Inspire therapy,” says Tim Herbert, chairman and CEO of Inspire Medical Systems, in a release. “Given our strong performance in the quarter and our improved outlook for the remainder of 2024, we are increasing our revenue guidance, and we now expect to be profitable for the full year 2024.”
During the quarter, Inspire activated 66 new US centers in the first quarter of 2024, bringing the total to 1,246 US medical centers providing Inspire therapy. The company also created 11 new US sales territories in the first quarter, bringing the total to 298 US sales territories
First Quarter 2024 Financial Results
Revenue was $164 million for the three months ended March 31, a 28% increase from $127.9 million in the corresponding period in the prior year. US revenue for the quarter was $155.8 million, an increase of 25% as compared to the prior-year quarter. First quarter revenue outside the U.S. was $8.2 million, an increase of 141% as compared to the first quarter of 2023.
Gross margin was 84.9% for the three months ended March 31, compared to 84.4% for the corresponding prior year period.
Operating expenses increased to $154.5 million for the first quarter of 2024, as compared to $127.5 million in the corresponding prior year period, an increase of 21%. This increase primarily reflected ongoing investments in the expansion of the US sales organization, direct-to-patient marketing programs, continued product development efforts, as well as increased general corporate costs.
Full Year 2024 Guidance
Inspire is increasing its full-year 2024 revenue guidance to between $783 million to $793 million, which represents growth of 25% to 27% over full-year 2023 revenue of $624.8 million. This compares to the prior revenue guidance of $775 million to $785 million.
The company is maintaining its full-year 2024 gross margin guidance of 83% to 85%.
Inspire is also maintaining its guidance relating to the opening of new US medical centers of 52 to 56 per quarter, as well as its guidance of 12 to 14 new US territories per quarter for the remainder of 2024.
