
Insulet Reports Second Quarter 2020 Revenue Increase of 28% Year-Over-Year
Includes Total Omnipod® Revenue Growth of 26%
Second Quarter Financial Highlights:
-
Second quarter 2020 revenue of
$226.3 million , up 27.8%, or 28.8% in constant currency1, compared to$177.1 million in the prior year, exceeds guidance of 19% to 23% on a constant currency basis-
Total Omnipod revenue of
$202.0 million , an increase of 25.6%, or 26.8% in constant currency-
U.S. Omnipod revenue of$128.8 million , an increase of 31.3% -
International Omnipod revenue of
$73.2 million , an increase of 16.7%, or 19.7% in constant currency
-
-
Drug Delivery revenue of
$24.3 million , an increase of 49.1%
-
Total Omnipod revenue of
- Gross margin of 63.0%, down 270 basis points, including an approximate 180 basis point impact due to COVID-19 related safety and mitigation costs
-
Net income of
$14.4 million , or$0.22 per diluted share, compared to net income of$1.4 million , or$0.02 per diluted share, in the prior year -
Adjusted EBITDA1 of
$44.2 million or 19.5% of revenue, compared to$21.9 million or 12.4% of revenue in the prior year
Recent Strategic Highlights:
-
Presented first outpatient data for Omnipod 5 powered by Horizon™ at the
American Diabetes Association scientific session; dataset demonstrates best-in-class usability and time in closed loop, excellent time in range, and statistically significant improvements in hypoglycemia compared to prior therapy -
Launched new Omnipod DASH™ release in the
U.S. with the ability to: (i) automatically upload data cloud-to-cloud; (ii) push future software updates wirelessly to customers; and (iii) choose Spanish language -
Installed solar panels at the Company's global headquarters and
U.S. manufacturing facility to help reduceInsulet's carbon footprint -
Successfully completed a
$500 million equity offering to further strengthen the balance sheet
"Thanks to our team’s relentless focus on our mission and the strength and durability of our recurring revenue model, we delivered another quarter of financial and operational results that exceeded our expectations,” said
___________________________________________________
1 See description of non-GAAP financial measures contained in this release.
2020 Outlook:
It remains difficult to accurately predict the progression of COVID-19 and the extent of the resulting disruption. The Company has assumed that the pandemic and recessionary headwinds will persist throughout 2020, with a gradual recovery starting in the third quarter as economies begin to open and customers are able to resume more normal physician meetings.
Revenue Guidance (in constant currency):
-
For the year ending
December 31, 2020 , the Company is raising its revenue guidance growth range to 17% to 19% (previously 15%). By product line, the Company now expects:-
Total Omnipod to be 18% to 20% (previously 18%)
-
U.S. Omnipod to be 19% to 21% (previously 19%) - International Omnipod to be 17% to 19% (previously 16%)
-
- Drug Delivery to be 3% to 6% (previously at the mid-point of a 15% to 20% decline)
-
Total Omnipod to be 18% to 20% (previously 18%)
-
For the quarter ending
September 30, 2020 , the Company expects revenue growth of 13% to 15%. Revenue growth ranges by product line are:-
Total Omnipod of 12% to 14%
-
U.S. Omnipod of 14% to 16% - International Omnipod of 9% to 11%
-
- Drug Delivery of 23% to 28%
-
Total Omnipod of 12% 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, securities analysts and other interested parties as a measure of comparative operating performance from period to period. The Company recognizes Adjusted EBITDA as a commonly used measure in determining business value and as such, 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
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||||||||||
|
|
Three months ended |
|
Six Months Ended |
||||||||||||||||
(dollars in millions, except per share data) |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||||
Revenue |
|
$ |
226.3 |
|
|
|
$ |
177.1 |
|
|
|
$ |
424.3 |
|
|
|
$ |
336.7 |
|
|
Cost of revenue |
|
83.8 |
|
|
|
60.7 |
|
|
|
154.9 |
|
|
|
113.6 |
|
|
||||
Gross profit |
|
142.5 |
|
|
|
116.4 |
|
|
|
269.4 |
|
|
|
223.1 |
|
|
||||
Research and development expenses |
|
34.2 |
|
|
|
33.0 |
|
|
|
69.7 |
|
|
|
65.5 |
|
|
||||
Selling, general and administrative expenses |
|
80.8 |
|
|
|
75.8 |
|
|
|
164.7 |
|
|
|
142.7 |
|
|
||||
Operating income |
|
27.5 |
|
|
|
7.6 |
|
|
|
35.0 |
|
|
|
14.9 |
|
|
||||
Interest expense, net |
|
(11.1 |
) |
|
|
(5.8 |
) |
|
|
(21.2 |
) |
|
|
(10.6 |
) |
|
||||
Other income, net |
|
1.0 |
|
|
|
0.1 |
|
|
|
1.0 |
|
|
|
2.3 |
|
|
||||
Income before income taxes |
|
17.4 |
|
|
|
1.9 |
|
|
|
14.8 |
|
|
|
6.6 |
|
|
||||
Income tax expense |
|
(3.0 |
) |
|
|
(0.5 |
) |
|
|
(2.5 |
) |
|
|
(0.8 |
) |
|
||||
Net income |
|
$ |
14.4 |
|
|
|
$ |
1.4 |
|
|
|
$ |
12.3 |
|
|
|
$ |
5.8 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income per share: |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
$ |
0.22 |
|
|
|
$ |
0.02 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.10 |
|
|
Diluted |
|
$ |
0.22 |
|
|
|
$ |
0.02 |
|
|
|
$ |
0.19 |
|
|
|
$ |
0.09 |
|
|
Weighted-average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
||||||||||||
Basic |
|
64,371 |
|
|
|
59,845 |
|
|
|
63,627 |
|
|
|
59,601 |
|
|
||||
Diluted |
|
65,579 |
|
|
|
61,486 |
|
|
|
64,970 |
|
|
|
61,332 |
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||||
(dollars in millions) |
|
|
|
|||||
ASSETS |
|
|
|
|||||
Cash, cash equivalents and short-term investments |
$ |
844.4 |
|
|
$ |
376.1 |
|
|
Accounts receivable, net |
78.0 |
|
|
69.3 |
|
|||
Inventories |
103.7 |
|
|
101.0 |
|
|||
Prepaid expenses and other current assets |
59.6 |
|
|
44.6 |
|
|||
Total current assets |
1,085.7 |
|
|
591.0 |
|
|||
Long-term investments |
23.5 |
|
|
58.4 |
|
|||
Property, plant and equipment, net |
423.2 |
|
|
399.4 |
|
|||
|
50.5 |
|
|
53.0 |
|
|||
Other assets |
43.8 |
|
|
41.1 |
|
|||
Total assets |
$ |
1,626.7 |
|
|
$ |
1,142.9 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|||||
Accounts payable |
$ |
35.6 |
|
|
$ |
54.5 |
|
|
Accrued expenses and other current liabilities |
98.8 |
|
|
103.2 |
|
|||
Total current liabilities |
134.4 |
|
|
157.7 |
|
|||
Convertible debt, net |
910.2 |
|
|
887.9 |
|
|||
Other liabilities |
18.8 |
|
|
21.4 |
|
|||
Total liabilities |
1,063.4 |
|
|
1,067.0 |
|
|||
Stockholders’ Equity |
563.3 |
|
|
75.9 |
|
|||
Total liabilities and stockholders’ equity |
$ |
1,626.7 |
|
|
$ |
1,142.9 |
|
NON-GAAP RECONCILIATIONS (UNAUDITED) |
|||||||||||||||||
CONSTANT CURRENCY REVENUE GROWTH |
|||||||||||||||||
|
Three Months Ended |
|
|
|
|
|
|
||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency
|
|
Constant
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
128.8 |
|
|
$ |
98.1 |
|
|
31.3 |
% |
|
— |
% |
|
31.3 |
% |
|
International Omnipod |
73.2 |
|
|
62.7 |
|
|
16.7 |
% |
|
(3.0) |
% |
|
19.7 |
% |
|||
Total Omnipod |
202.0 |
|
|
160.8 |
|
|
25.6 |
% |
|
(1.2) |
% |
|
26.8 |
% |
|||
Drug Delivery |
24.3 |
|
|
16.3 |
|
|
49.1 |
% |
|
— |
% |
|
49.1 |
% |
|||
Total |
$ |
226.3 |
|
|
$ |
177.1 |
|
|
27.8 |
% |
|
(1.0) |
% |
|
28.8 |
% |
|
Six Months Ended |
|
|
|
|
|
|
||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
Percent Change |
|
Currency
|
|
Constant
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
||||||||
|
$ |
245.4 |
|
|
$ |
184.2 |
|
|
33.2 |
% |
|
— |
% |
|
33.2 |
% |
|
International Omnipod |
146.3 |
|
|
119.6 |
|
|
22.3 |
% |
|
(3.2) |
% |
|
25.5 |
% |
|||
Total Omnipod |
391.7 |
|
|
303.8 |
|
|
28.9 |
% |
|
(1.3) |
% |
|
30.2 |
% |
|||
Drug Delivery |
32.6 |
|
|
32.9 |
|
|
(0.9) |
% |
|
— |
% |
|
(0.9) |
% |
|||
Total |
$ |
424.3 |
|
|
$ |
336.7 |
|
|
26.0 |
% |
|
(1.1) |
% |
|
27.1 |
% |
ADJUSTED EBITDA |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
(dollars in millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
Net income |
$ |
14.4 |
|
|
$ |
1.4 |
|
|
$ |
12.3 |
|
|
$ |
5.8 |
|
|
Interest expense, net |
11.1 |
|
|
5.8 |
|
|
21.2 |
|
|
10.6 |
|
|||||
Income tax expense |
3.0 |
|
|
0.5 |
|
|
2.5 |
|
|
0.8 |
|
|||||
Depreciation and amortization |
9.9 |
|
|
5.9 |
|
|
18.8 |
|
|
11.0 |
|
|||||
Stock-based compensation |
5.8 |
|
|
8.3 |
|
|
13.7 |
|
|
14.1 |
|
|||||
Adjusted EBITDA |
$ |
44.2 |
|
|
$ |
21.9 |
|
|
$ |
68.5 |
|
|
$ |
42.3 |
|
REVENUE GUIDANCE RECONCILIATIONS (UNAUDITED) |
||||||||||||||||||
FULL YEAR 2020 |
||||||||||||||||||
|
Low |
|
High |
|||||||||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
|||||||
|
19 |
% |
|
— |
% |
|
19 |
% |
|
21 |
% |
|
— |
% |
|
21 |
% |
|
International Omnipod |
19 |
% |
|
2 |
% |
|
17 |
% |
|
21 |
% |
|
2 |
% |
|
19 |
% |
|
Total Omnipod |
19 |
% |
|
1 |
% |
|
18 |
% |
|
21 |
% |
|
1 |
% |
|
20 |
% |
|
Drug Delivery |
3 |
% |
|
— |
% |
|
3 |
% |
|
6 |
% |
|
— |
% |
|
6 |
% |
|
Total |
18 |
% |
|
1 |
% |
|
17 |
% |
|
20 |
% |
|
1 |
% |
|
19 |
% |
Q3 2020 |
||||||||||||||||||
|
Low |
|
High |
|||||||||||||||
|
Revenue
|
|
Currency
|
|
Constant
|
|
Revenue
|
|
Currency
|
|
Constant
|
|||||||
|
14 |
% |
|
— |
% |
|
14 |
% |
|
16 |
% |
|
— |
% |
|
16 |
% |
|
International Omnipod |
15 |
% |
|
6 |
% |
|
9 |
% |
|
17 |
% |
|
6 |
% |
|
11 |
% |
|
Total Omnipod |
14 |
% |
|
2 |
% |
|
12 |
% |
|
16 |
% |
|
2 |
% |
|
14 |
% |
|
Drug Delivery |
23 |
% |
|
— |
% |
|
23 |
% |
|
28 |
% |
|
— |
% |
|
28 |
% |
|
Total |
15 |
% |
|
2 |
% |
|
13 |
% |
|
17 |
% |
|
2 |
% |
|
15 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20200806005820/en/
Investor Relations Contact:
Vice President, Investor Relations
(978) 600-7717
dgordon@insulet.com
Media Contact:
Senior Director, Corporate Communications
(978) 932-0611
awiczek@insulet.com
Source: