
Insulet Reports Full Year 2020 Revenue Increase of 23% and Fourth Quarter 2020 Revenue Increase of 18% Year-Over-Year
Represents 5th Consecutive Year of Over 20% Revenue Growth; Record Quarterly Revenue
Full Year Financial Highlights:
-
Full Year 2020 revenue of
$904.4 million , up 22.5%, or 21.9% in constant currency1, compared to$738.2 million in the prior year, exceeds guidance of 20% to 21% on a constant currency basis-
Total Omnipod revenue of
$834.9 million , an increase of 24.0%, or 23.3% in constant currency-
U.S. Omnipod revenue of$526.9 million , an increase of 25.3% -
International Omnipod revenue of
$308.0 million , an increase of 21.7%, or 19.9% in constant currency
-
-
Drug Delivery revenue of
$69.5 million , an increase of 7.4%
-
Total Omnipod revenue of
- Gross margin of 64.4%, down 70 basis points, including an approximate 90 basis point unfavorable impact due to COVID-19 related safety and mitigation costs
-
Operating income of
$51.5 million , or 5.7% of revenue, compared to$50.0 million , or 6.8% of revenue, in the prior year. Adjusted operating income1 of$66.1 million , or 7.3%, excludes a fourth quarter cumulative amortization expense of$14.6 million related to the resolution of a purchase price contingency with a former European distributor -
Net income of
$6.8 million , or$0.10 per diluted share, compared to$11.6 million , or$0.19 per diluted share, in the prior year -
Adjusted EBITDA1 of
$146.1 million , or 16.2% of revenue, compared to$107.5 million , or 14.6% of revenue, in the prior year
Fourth Quarter Financial Highlights:
-
Fourth quarter 2020 revenue of
$246.1 million , up 17.5%, or 15.3% in constant currency, compared to$209.4 million in the prior year, exceeds guidance of 7.0% to 11.0% on a constant currency basis-
Total Omnipod revenue of
$231.1 million , an increase of 20.1%, or 17.6% in constant currency-
U.S. Omnipod revenue of$149.2 million , an increase of 17.8% -
International Omnipod revenue of
$81.9 million , an increase of 24.5%, or 17.5% in constant currency
-
-
Drug Delivery revenue of
$15.0 million , a decrease of 11.2%
-
Total Omnipod revenue of
- Gross margin of 65.5%, up 150 basis points, including an approximate 40 basis point unfavorable impact due to COVID-19 related safety and mitigation costs
-
Operating loss of
$7.3 million , or 3.0% of revenue, compared to operating income of$18.2 million , or 8.7% of revenue, in the prior year. Adjusted operating income of$7.3 million , or 3.0%, excludes a cumulative amortization expense of$14.6 million related to the resolution of a purchase price contingency with a former European distributor -
Net loss of
$17.1 million , or$(0.26) per diluted share, compared to net income of$5.0 million , or$0.08 per diluted share, in the prior year -
Adjusted EBITDA of
$35.3 million , or 14.3% of revenue, compared to$35.6 million , or 17.0% of revenue, in the prior year
Recent Strategic Highlights:
- Completed the pivotal study for the Omnipod® 5 automated insulin delivery system; on track for planned commercial launch in the first half of 2021
-
Invited to present Omnipod 5 pivotal study data at the ENDO 2021 diabetes conference in
March 2021 - Completed Omnipod 5 pre-school pivotal study with participants ages 2 to 6 years; on track for expected indication by end of 2021
- Enrolled first participants in the Omnipod 5 feasibility study for individuals with Type 2 diabetes
- Recently achieved a milestone of 250,000 global customers using the Omnipod System
-
Launched Omnipod in
Turkey in 2021, in addition to five new countries in the fourth quarter of 2020 - Completed full international commercial launch of Omnipod DASH®
-
Installed third
U.S. manufacturing line and added a second contract manufacturer inChina
“The fourth quarter marked a strong finish to another successful year for Insulet,” said
2021 Outlook:
Revenue Guidance (in constant currency):
-
For the year ending
December 31, 2021 , the Company expects revenue growth in the range of 15% to 20%. Revenue growth ranges by product line are:-
Total Omnipod of 17% to 21%
-
U.S. Omnipod of 21% to 25% - International Omnipod of 10% to 15%
-
- Drug Delivery of (11)% to 4%
-
Total Omnipod of 17% to 21%
-
For the quarter ending
March 31, 2021 , the Company expects revenue growth of 20% to 24%. Revenue growth ranges by product line are:-
Total Omnipod of 16% to 19%
-
U.S. Omnipod of 20% to 23% - International Omnipod of 9% to 12%
-
-
Drug Delivery of 120% to 140% (representing a range of
$18 million to$20 million )
-
Total Omnipod of 16% to 19%
Operating Margin Guidance:
For the year ending
Conference Call:
About
Non-GAAP Measures:
The Company uses the following non-GAAP financial measures:
-
Constant currency revenue growth, which represents the change in revenue between current and prior year periods using a constant currency, the exchange rate in effect during the applicable prior year period.
Insulet presents constant currency revenue growth because management believes it provides meaningful information regarding the Company’s results on a consistent and comparable basis. Management uses this non-GAAP financial measure, in addition to financial measures in accordance with generally accepted accounting principles inthe United States (GAAP), to evaluate the Company’s operating results. It is also one of the performance metrics that determines management incentive compensation.
-
Adjusted operating income, which represents net income (loss) plus other significant unusual items, as applicable, Adjusted EBITDA, which represents net income (loss) plus net interest expense, income tax expense, depreciation and amortization, stock-based compensation and other significant unusual items, as applicable, and Adjusted EBITDA as a percentage of revenue.
Insulet presents these non-GAAP financial measures because management uses them as supplemental measures in assessing the Company’s operating performance, and the Company believes that they are helpful to investors, and other interested parties as measures of comparative operating performance from period to period. They also are commonly used measures in determining business value and the Company uses them internally to report results.
These non-GAAP financial measures should be considered supplemental to, and not a substitute for, the Company’s reported financial results prepared in accordance with GAAP. Furthermore, the Company’s definition of these non-GAAP measures may differ from a similarly titled measures used by others. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company’s reported results of operations,
Forward-Looking Statement:
The 2020 financial results contained in this news release are subject to finalization in connection with the preparation of the Company’s Form 10-K for the year ended
These forward-looking statements involve a number of risks, uncertainties (some of which are beyond Insulet’s control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: risks associated with the Company’s dependence on its principal product platform, the Omnipod System; the Company’s ability to design, develop, manufacture and commercialize future products; Insulet’s ability to reduce production costs and increase customer orders and manufacturing volumes; adverse changes in general economic conditions; impact of healthcare reform laws;
|
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|
Three Months Ended |
|
Years Ended |
||||||||||||
(dollars in millions, except per share data) |
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenue |
$ |
246.1 |
|
|
$ |
209.4 |
|
|
$ |
904.4 |
|
|
$ |
738.2 |
|
Cost of revenue |
85.0 |
|
|
75.3 |
|
|
322.1 |
|
|
257.9 |
|
||||
Gross profit |
161.1 |
|
|
134.1 |
|
|
582.3 |
|
|
480.3 |
|
||||
Research and development |
38.3 |
|
|
35.4 |
|
|
146.8 |
|
|
132.3 |
|
||||
Selling, general and administrative |
130.1 |
|
|
80.5 |
|
|
384.0 |
|
|
298.0 |
|
||||
Operating (loss) income |
(7.3) |
|
|
18.2 |
|
|
51.5 |
|
|
50.0 |
|
||||
Interest expense, net |
(12.5) |
|
|
(9.4) |
|
|
(45.1) |
|
|
(27.7) |
|
||||
Loss on extinguishment of debt |
— |
|
|
(2.3) |
|
|
— |
|
|
(8.7) |
|
||||
Other income, net |
1.3 |
|
|
0.3 |
|
|
3.3 |
|
|
0.9 |
|
||||
(Loss) income before income taxes |
(18.5) |
|
|
6.8 |
|
|
9.7 |
|
|
14.5 |
|
||||
Income tax benefit (expense) |
1.4 |
|
|
(1.8) |
|
|
(2.9) |
|
|
(2.9) |
|
||||
Net (loss) income |
$ |
(17.1) |
|
|
$ |
5.0 |
|
|
$ |
6.8 |
|
|
$ |
11.6 |
|
|
|
|
|
|
|
|
|
||||||||
Net (loss) income per share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.26) |
|
|
$ |
0.08 |
|
|
$ |
0.11 |
|
|
$ |
0.19 |
|
Diluted |
$ |
(0.26) |
|
|
$ |
0.08 |
|
|
$ |
0.10 |
|
|
$ |
0.19 |
|
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
||||||||
Basic |
65,945 |
|
|
62,397 |
|
|
64,735 |
|
|
60,594 |
|
||||
Diluted |
65,945 |
|
|
63,887 |
|
|
65,946 |
|
|
62,304 |
|
||||
|
|||||||
|
As of |
||||||
(dollars in millions) |
2020 |
|
2019 |
||||
ASSETS |
|
|
|
||||
Cash, cash equivalents and short-term investments |
$ |
947.6 |
|
|
$ |
376.1 |
|
Accounts receivable, net |
83.8 |
|
|
69.3 |
|
||
Inventories |
154.3 |
|
|
101.0 |
|
||
Prepaid expenses and other current assets |
63.0 |
|
|
44.6 |
|
||
Total current assets |
1,248.7 |
|
|
591.0 |
|
||
Long-term investments |
— |
|
|
58.4 |
|
||
Property, plant and equipment, net |
478.7 |
|
|
399.4 |
|
||
|
68.5 |
|
|
53.0 |
|
||
Restricted cash |
14.8 |
|
|
— |
|
||
Other assets |
62.2 |
|
|
41.1 |
|
||
Total assets |
$ |
1,872.9 |
|
|
$ |
1,142.9 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
||||
Accounts payable |
$ |
54.1 |
|
|
$ |
54.5 |
|
Accrued expenses and other current liabilities |
153.7 |
|
|
103.2 |
|
||
Total current liabilities |
207.8 |
|
|
157.7 |
|
||
Long-term debt, net |
1,043.7 |
|
|
887.9 |
|
||
Other liabilities |
17.8 |
|
|
21.4 |
|
||
Total liabilities |
1,269.3 |
|
|
1,067.0 |
|
||
Stockholders’ Equity |
603.6 |
|
|
75.9 |
|
||
Total liabilities and stockholders’ equity |
$ |
1,872.9 |
|
|
$ |
1,142.9 |
|
|
||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
|||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency Impact |
|
Constant
|
|||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||||
|
$ |
149.2 |
|
|
$ |
126.7 |
|
|
17.8 |
% |
|
— |
% |
|
17.8 |
% |
International Omnipod |
81.9 |
|
|
65.8 |
|
|
24.5 |
% |
|
7.0 |
% |
|
17.5 |
% |
||
Total Omnipod |
231.1 |
|
|
192.5 |
|
|
20.1 |
% |
|
2.5 |
% |
|
17.6 |
% |
||
Drug Delivery |
15.0 |
|
|
16.9 |
|
|
(11.2) |
% |
|
— |
% |
|
(11.2) |
% |
||
Total |
$ |
246.1 |
|
|
$ |
209.4 |
|
|
17.5 |
% |
|
2.2 |
% |
|
15.3 |
% |
|
Years Ended |
|
|
|
|
|
|
|||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency Impact |
|
Constant
|
|||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|||||||
|
$ |
526.9 |
|
|
$ |
420.4 |
|
|
25.3 |
% |
|
— |
% |
|
25.3 |
% |
International Omnipod |
308.0 |
|
|
253.1 |
|
|
21.7 |
% |
|
1.8 |
% |
|
19.9 |
% |
||
Total Omnipod |
834.9 |
|
|
673.5 |
|
|
24.0 |
% |
|
0.7 |
% |
|
23.3 |
% |
||
Drug Delivery |
69.5 |
|
|
64.7 |
|
|
7.4 |
% |
|
— |
% |
|
7.4 |
% |
||
Total |
$ |
904.4 |
|
|
$ |
738.2 |
|
|
22.5 |
% |
|
0.6 |
% |
|
21.9 |
% |
NON-GAAP RECONCILIATIONS (UNAUDITED)
ADJUSTED EBITDA
|
Three Months Ended |
|
Years Ended |
||||||||||||||||||||||||
(dollars in millions) |
2020 |
|
Percent of
|
|
2019 |
|
Percent of
|
|
2020 |
|
Percent of
|
|
2019 |
|
Percent of
|
||||||||||||
Net (loss) income |
$ |
(17.1) |
|
|
(6.9) |
% |
|
$ |
5.0 |
|
|
2.4 |
% |
|
$ |
6.8 |
|
|
0.8 |
% |
|
$ |
11.6 |
|
|
1.6 |
% |
Interest expense, net |
12.5 |
|
|
|
|
9.4 |
|
|
|
|
45.1 |
|
|
|
|
27.7 |
|
|
|
||||||||
Income tax (benefit) expense |
(1.4) |
|
|
|
|
1.8 |
|
|
|
|
2.9 |
|
|
|
|
2.9 |
|
|
|
||||||||
Depreciation and amortization(1) |
25.7 |
|
|
|
|
9.1 |
|
|
|
|
55.4 |
|
|
|
|
27.9 |
|
|
|
||||||||
Stock-based compensation(2) |
15.6 |
|
|
|
|
8.0 |
|
|
|
|
35.9 |
|
|
|
|
28.7 |
|
|
|
||||||||
Loss on extinguishment of debt |
— |
|
|
|
|
2.3 |
|
|
|
|
— |
|
|
|
|
8.7 |
|
|
|
||||||||
Adjusted EBITDA |
$ |
35.3 |
|
|
14.3 |
% |
|
$ |
35.6 |
|
|
17.0 |
% |
|
$ |
146.1 |
|
|
16.2 |
% |
|
$ |
107.5 |
|
|
14.6 |
% |
ADJUSTED OPERATING INCOME |
|||||||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||
(dollars in millions) |
2020 |
|
Percent of Revenue |
|
2020 |
|
Percent of Revenue |
||||||
Operating (loss) income |
$ |
(7.3) |
|
|
(3.0) |
% |
|
$ |
51.5 |
|
|
5.7 |
% |
Cumulative amortization expense(1) |
14.6 |
|
|
|
|
14.6 |
|
|
|
||||
Adjusted operating income |
$ |
7.3 |
|
|
3.0 |
% |
|
$ |
66.1 |
|
|
7.3 |
% |
(1) |
The three months and year ended |
(2) |
The three months and year ended |
|
|||||||||||||||||
|
Year Ending |
||||||||||||||||
|
Low |
|
High |
||||||||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
||||||
|
21 |
% |
|
— |
% |
|
21 |
% |
|
25 |
% |
|
— |
% |
|
25 |
% |
International Omnipod |
16 |
% |
|
6 |
% |
|
10 |
% |
|
22 |
% |
|
7 |
% |
|
15 |
% |
Total Omnipod |
19 |
% |
|
2 |
% |
|
17 |
% |
|
24 |
% |
|
3 |
% |
|
21 |
% |
Drug Delivery |
(11) |
% |
|
— |
% |
|
(11) |
% |
|
4 |
% |
|
— |
% |
|
4 |
% |
Total |
17 |
% |
|
2 |
% |
|
15 |
% |
|
22 |
% |
|
2 |
% |
|
20 |
% |
|
Three Months Ending |
||||||||||||||||
|
Low |
|
High |
||||||||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
||||||
|
20 |
% |
|
— |
% |
|
20 |
% |
|
23 |
% |
|
— |
% |
|
23 |
% |
International Omnipod |
19 |
% |
|
10 |
% |
|
9 |
% |
|
22 |
% |
|
10 |
% |
|
12 |
% |
Total Omnipod |
20 |
% |
|
4 |
% |
|
16 |
% |
|
23 |
% |
|
4 |
% |
|
19 |
% |
Drug Delivery |
120 |
% |
|
— |
% |
|
120 |
% |
|
140 |
% |
|
— |
% |
|
140 |
% |
Total |
24 |
% |
|
4 |
% |
|
20 |
% |
|
28 |
% |
|
4 |
% |
|
24 |
% |
1 See description of non-GAAP financial measures contained in this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005873/en/
Investor Relations:
Vice President, Investor Relations
(978) 600-7717
dgordon@insulet.com
Principal Investor Relations Analyst
(978) 600-7627
jmcgorman@insulet.com
Media:
Senior Director, Corporate Communications
(978) 932-0611
awiczek@insulet.com
Source: