
Insulet Reports Third Quarter 2020 Revenue Increase of 22% Year-Over-Year
Includes Total Omnipod® Revenue Growth of 20%
Third Quarter Financial Highlights:
- Third quarter 2020 revenue of
$234.0 million , up 21.8%, or 19.9% in constant currency1, compared to$192.1 million in the prior year, exceeds guidance of 13% to 15% on a constant currency basis- Total Omnipod revenue of
$212.1 million , an increase of 19.7%, or 17.6% in constant currencyU.S. Omnipod revenue of$132.3 million , an increase of 20.9%- International Omnipod revenue of
$79.8 million , an increase of 17.7%, or 12.4% in constant currency
- Drug Delivery revenue of
$21.9 million , an increase of 47.0%
- Total Omnipod revenue of
- Gross margin of 64.9%, up 80 basis points, including an approximate 60 basis point unfavorable impact due to COVID-19 related safety and mitigation costs
- Net income of
$11.6 million , or$0.17 per diluted share, compared to net income of$0.8 million , or$0.01 per diluted share, in the prior year - Adjusted EBITDA1 of
$42.3 million or 18.1% of revenue, compared to$29.6 million or 15.4% of revenue in the prior year
Recent Strategic Highlights:
- Completed Omnipod 5 pivotal trial and on track for planned commercial launch in the first half of 2021
- Completed enrollment for the Omnipod 5 pre-school pivotal study with participants ages 2 to 6 years
- Began recruitment for the Omnipod 5 feasibility study for individuals with Type 2 diabetes
- Launched Omnipod DASH® throughout the remaining European countries we serve
- Installed two manufacturing lines at a second contract manufacturer in
China to provide additional capacity
"We delivered another quarter of financial and operational results exceeding our expectations, driven by the benefits of our differentiated innovation and the strength of our recurring revenue model,” said
___________________________________________________
1 See description of non-GAAP financial measures contained in this release.
2020 Outlook:
Revenue Guidance (in constant currency):
- For the year ending
December 31, 2020 , the Company is raising its revenue guidance growth range to 20% to 21% (previously 17% to 19%). By product line, the Company now expects:- Total Omnipod to be 21% to 22% (previously 18% to 20%)
U.S. Omnipod to be 23% to 24% (previously 19% to 21%)- International Omnipod to be 18% to 19% (previously 17% to 19%)
- Drug Delivery to be 4% to 6% (previously 3% to 6%)
- Total Omnipod to be 21% to 22% (previously 18% to 20%)
- For the quarter ending
December 31, 2020 , the Company expects revenue growth of 7% to 11%. Revenue growth ranges by product line are:- Total Omnipod of 10% to 14%
U.S. Omnipod of 10% to 14%- International Omnipod of 10% to 14%
- Drug Delivery decline of 17% to 23%
- Total Omnipod of 10% to 14%
Adjusted EBITDA:
For the year ending
Conference Call:
About
Non-GAAP Financial 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 EBITDA, which represents net income plus net interest expense, income tax expense, depreciation and amortization, stock-based compensation and other significant unusual items, as applicable.
Insulet presents Adjusted EBITDA because management uses it as a supplemental measure in assessing the Company’s operating performance, and the Company believes that it is helpful to investors, and other interested parties as a measure of comparative operating performance from period to period. Adjusted EBITDA is a commonly used measure in determining business value and the Company uses it internally to report results. It is also one of the performance metrics that determines management incentive compensation.
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,
The Company does not provide a reconciliation of Adjusted EBITDA to net income on a forward-looking basis because it is unable to estimate, with reasonable certainty and without unreasonable efforts, any unusual or unanticipated charges, expenses or gains. These items are uncertain, depend on various factors, and could be material to the Company’s GAAP results.
Forward-Looking Statements:
The 2020 financial results contained in this news release are subject to finalization in connection with the preparation of the Company’s Form 10-Q for the quarter 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 public health crises and pandemics, such as the COVID-19 global pandemic, including the duration of the outbreak, government actions and restrictive measures implemented in response, supply chain disruptions, delays in clinical trials, and other impacts to the business, or on the Company’s ability to execute business continuity plans; 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; the impact of healthcare reform laws; supply problems or price fluctuations with sole source or third-party suppliers on which
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Three Months Ended |
|
Nine Months Ended |
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(dollars in millions, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||
Revenue |
|
$ |
234.0 |
|
|
$ |
192.1 |
|
|
$ |
658.3 |
|
|
$ |
528.8 |
|
Cost of revenue |
|
82.2 |
|
|
69.0 |
|
|
237.1 |
|
|
182.6 |
|
||||
Gross profit |
|
151.8 |
|
|
123.1 |
|
|
421.2 |
|
|
346.2 |
|
||||
Research and development expenses |
|
38.8 |
|
|
31.3 |
|
|
108.5 |
|
|
96.8 |
|
||||
Selling, general and administrative expenses |
|
89.2 |
|
|
74.8 |
|
|
253.9 |
|
|
217.5 |
|
||||
Operating income |
|
23.8 |
|
|
17.0 |
|
|
58.8 |
|
|
31.9 |
|
||||
Interest expense, net |
|
(11.4 |
) |
|
(7.7 |
) |
|
(32.6 |
) |
|
(18.3 |
) |
||||
Loss on extinguishment of debt |
|
— |
|
|
(6.4 |
) |
|
— |
|
|
(6.4 |
) |
||||
Other income (expense), net |
|
1.0 |
|
|
(1.8 |
) |
|
2.0 |
|
|
0.5 |
|
||||
Income before income taxes |
|
13.4 |
|
|
1.1 |
|
|
28.2 |
|
|
7.7 |
|
||||
Income tax expense |
|
(1.8 |
) |
|
(0.3 |
) |
|
(4.3 |
) |
|
(1.1 |
) |
||||
Net income |
|
$ |
11.6 |
|
|
$ |
0.8 |
|
|
$ |
23.9 |
|
|
$ |
6.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share: |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
$ |
0.18 |
|
|
$ |
0.01 |
|
|
$ |
0.37 |
|
|
$ |
0.11 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.01 |
|
|
$ |
0.36 |
|
|
$ |
0.11 |
|
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
||||||||
Basic |
|
65,718 |
|
|
60,743 |
|
|
64,329 |
|
|
59,986 |
|
||||
Diluted |
|
66,828 |
|
|
62,336 |
|
|
65,598 |
|
|
61,728 |
|
||||
|
||||||||
(dollars in millions) |
|
|
|
|||||
ASSETS |
|
|
|
|||||
Cash, cash equivalents and short-term investments |
$ |
896.7 |
|
|
$ |
376.1 |
|
|
Accounts receivable, net |
85.4 |
|
|
69.3 |
|
|||
Inventories |
124.9 |
|
|
101.0 |
|
|||
Prepaid expenses and other current assets |
53.4 |
|
|
44.6 |
|
|||
Total current assets |
1,160.4 |
|
|
591.0 |
|
|||
Long-term investments |
0.5 |
|
|
58.4 |
|
|||
Property, plant and equipment, net |
449.2 |
|
|
399.4 |
|
|||
|
50.1 |
|
|
53.0 |
|
|||
Other assets |
50.4 |
|
|
41.1 |
|
|||
Total assets |
$ |
1,710.6 |
|
|
$ |
1,142.9 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Accounts payable |
$ |
57.0 |
|
|
$ |
54.5 |
|
|
Accrued expenses and other current liabilities |
118.2 |
|
|
103.2 |
|
|||
Total current liabilities |
175.2 |
|
|
157.7 |
|
|||
Convertible debt, net |
921.5 |
|
|
887.9 |
|
|||
Other liabilities |
18.9 |
|
|
21.4 |
|
|||
Total liabilities |
1,115.6 |
|
|
1,067.0 |
|
|||
Stockholders’ Equity |
595.0 |
|
|
75.9 |
|
|||
Total liabilities and stockholders’ equity |
$ |
1,710.6 |
|
|
$ |
1,142.9 |
|
|
|
|||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency Impact |
|
Constant Currency |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
132.3 |
|
|
$ |
109.4 |
|
|
20.9 |
% |
|
— |
% |
|
20.9 |
% |
|
International Omnipod |
79.8 |
|
|
67.8 |
|
|
17.7 |
% |
|
5.3 |
% |
|
12.4 |
% |
|||
Total Omnipod |
212.1 |
|
|
177.2 |
|
|
19.7 |
% |
|
2.1 |
% |
|
17.6 |
% |
|||
Drug Delivery |
21.9 |
|
|
14.9 |
|
|
47.0 |
% |
|
— |
% |
|
47.0 |
% |
|||
Total |
$ |
234.0 |
|
|
$ |
192.1 |
|
|
21.8 |
% |
|
1.9 |
% |
|
19.9 |
% |
|
Nine Months Ended |
|
|
|
|
|
|
||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency Impact |
|
Constant Currency |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
377.7 |
|
|
$ |
293.6 |
|
|
28.6 |
% |
|
— |
% |
|
28.6 |
% |
|
International Omnipod |
226.1 |
|
|
187.4 |
|
|
20.7 |
% |
|
(0.1) |
% |
|
20.8 |
% |
|||
Total Omnipod |
603.8 |
|
|
481.0 |
|
|
25.5 |
% |
|
(0.1) |
% |
|
25.6 |
% |
|||
Drug Delivery |
54.5 |
|
|
47.8 |
|
|
14.0 |
% |
|
— |
% |
|
14.0 |
% |
|||
Total |
$ |
658.3 |
|
|
$ |
528.8 |
|
|
24.5 |
% |
|
— |
% |
|
24.5 |
% |
|
ADJUSTED EBITDA |
||||||||||||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Net income |
$ |
11.6 |
|
|
$ |
0.8 |
|
|
$ |
23.9 |
|
|
$ |
6.6 |
|
|
Interest expense, net |
11.4 |
|
|
7.7 |
|
|
32.6 |
|
|
18.3 |
|
|||||
Income tax expense |
1.8 |
|
|
0.3 |
|
|
4.3 |
|
|
1.1 |
|
|||||
Depreciation and amortization |
10.9 |
|
|
7.8 |
|
|
29.7 |
|
|
18.8 |
|
|||||
Stock-based compensation |
6.6 |
|
|
6.6 |
|
|
20.3 |
|
|
20.7 |
|
|||||
Loss on extinguishment of debt |
— |
|
|
6.4 |
|
|
— |
|
|
6.4 |
|
|||||
Adjusted EBITDA |
$ |
42.3 |
|
|
$ |
29.6 |
|
|
$ |
110.8 |
|
|
$ |
71.9 |
|
|
|
||||||||||||||||||
|
Low |
|
High |
|||||||||||||||
|
Revenue |
|
Currency |
|
Constant |
|
Revenue Growth |
|
Currency |
|
Constant |
|||||||
|
23 |
% |
|
— |
% |
|
23 |
% |
|
24 |
% |
|
— |
% |
|
24 |
% |
|
International Omnipod |
19 |
% |
|
1 |
% |
|
18 |
% |
|
20 |
% |
|
1 |
% |
|
19 |
% |
|
Total Omnipod |
22 |
% |
|
1 |
% |
|
21 |
% |
|
23 |
% |
|
1 |
% |
|
22 |
% |
|
Drug Delivery |
4 |
% |
|
— |
% |
|
4 |
% |
|
6 |
% |
|
— |
% |
|
6 |
% |
|
Total |
20 |
% |
|
— |
% |
|
20 |
% |
|
21 |
% |
|
— |
% |
|
21 |
% |
|
Q4 2020 |
||||||||||||||||||
|
Low |
|
High |
|||||||||||||||
|
Revenue |
|
Currency |
|
Constant |
|
Revenue |
|
Currency |
|
Constant |
|||||||
|
10 |
% |
|
— |
% |
|
10 |
% |
|
14 |
% |
|
— |
% |
|
14 |
% |
|
International Omnipod |
15 |
% |
|
5 |
% |
|
10 |
% |
|
19 |
% |
|
5 |
% |
|
14 |
% |
|
Total Omnipod |
12 |
% |
|
2 |
% |
|
10 |
% |
|
16 |
% |
|
2 |
% |
|
14 |
% |
|
Drug Delivery |
(23) |
% |
|
— |
% |
|
(23) |
% |
|
(17) |
% |
|
— |
% |
|
(17) |
% |
|
Total |
9 |
% |
|
2 |
% |
|
7 |
% |
|
13 |
% |
|
2 |
% |
|
11 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20201104005387/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: